Document:

<PAGE>

                                                                   EXHIBIT 10.12

                              THE HERTZ CORPORATION

                                 ACCOUNT BALANCE
                          DEFINED BENEFIT PENSION PLAN
               (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2000
                AND INCLUDING AMENDMENTS THROUGH JANUARY 1, 2002)

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
ARTICLE                                                                                                      PAGE
-------                                                                                                      ----
<S>                                                                                                          <C>
1.     Definitions........................................................................................     1

2.     Membership.........................................................................................    14

3.     Retirement Benefits................................................................................    16

4.     Limitations on Benefits............................................................................    26

5.     Vesting............................................................................................    30

6.     Distribution.......................................................................................    31

7.     Pre-Retirement Death Benefits......................................................................    40

8.     Funding............................................................................................    43

9.     Administration of Plan.............................................................................    44

10.    Management of Trust Fund...........................................................................    48

11.    Benefit Claims Procedure...........................................................................    49

12.    Non-Alienation of Benefits.........................................................................    52

13.    Designation of Beneficiary.........................................................................    54

14.    Amendment..........................................................................................    55

15.    Termination; Merger, Consolidation or Transfer of Assets...........................................    57

16.    Adoption and Withdrawal from Plan by Affiliated Company............................................    59

17.    Top Heavy Provisions...............................................................................    60

18.    Miscellaneous......................................................................................    65
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
SCHEDULE                                                                                                   PAGE
--------                                                                                                   ----
<S>                                                                                                        <C>
A      Effective Dates.........................................................................             68

B      Definitions.............................................................................             69

C      Actuarial Assumptions...................................................................             77

D      Sections 3.2 and 3.8....................................................................             81

E      Section 6.4.............................................................................             90

F      Section 7.1 (b).........................................................................             91

G      Sale of Stock of HCM Claim Management Corporation To the Employee Care Corporation......             93
</TABLE>

<PAGE>

                              THE HERTZ CORPORATION

                  ACCOUNT BALANCE DEFINED BENEFIT PENSION PLAN

The Hertz Corporation, with its principal office at 225 Brae Boulevard, Park
Ridge, New Jersey, 07656, amends and restates (except as otherwise provided in
Schedule A to this Plan) effective as of January 1, 2000 and including
amendments through January 1, 2002, The Hertz Corporation Account Balance
Defined Benefit Pension Plan (which initially became effective as of August 30,
1985 upon the sale of The Hertz Corporation to UAL, Inc.).

The terms of the Plan, as amended and restated, except as otherwise noted, shall
only apply to those Members whose retirement or other termination of service
with an Employer occurs on or after January 1, 2000. The right to benefits with
respect to any other person shall, except to the extent provided herein, be
determined solely on the basis of the terms of the Plan as in effect on the date
of his retirement or termination.

The Plan is intended to meet the qualification requirements of Section 401(a) of
the Internal Revenue Code of 1986, as amended.

ARTICLE 1. DEFINITIONS

The following definitions and the definitions set forth in Sections 4.1, 6.14
and 17.1, and in Schedule B to this Plan, apply for purposes of this Plan:

1.1   Actuarial or Actuarially Equivalent - a benefit or amount that replaces
      another and has the same value as the benefit or amount it replaces, based
      on actuarial assumptions as set forth in Schedule C to this Plan.

                                                                               1
<PAGE>

1.2   Actuary - the person appointed by the Board under Section 9.10.

1.3   Affiliated Company - (a) the Company, (b) a member of a "controlled group
      of corporations" of which an Employer is a member, (c) an unincorporated
      trade or business which is under common control with an Employer as
      determined in accordance with Section 414(c) of the Internal Revenue Code
      or (d) a member of an affiliated service group with any Employer as
      defined in Section 414(m) or (o) of the Internal Revenue Code. A
      corporation or an unincorporated trade or business shall not be considered
      an Affiliated Company for any period it does not satisfy clause (a), (b),
      (c) or (d) of this definition. For purposes of this definition, a
      "controlled group of corporations" is a controlled group of corporations
      as defined in Section 1563(a) of the Internal Revenue Code (but determined
      without regard to Sections 1563(a)(4) and (e)(3)(c) of the Code). In
      determining whether any limitations on benefits under Section 4.2 apply,
      the percentage in Section 1563(a)(1) of the Internal Revenue Code or in
      the regulations under Section 414(c) of the Internal Revenue Code shall be
      deemed to be more than 50% instead of at least 80%.

1.4   Alternate Payee - any spouse, former spouse, child or other dependent of a
      Member who is recognized by a Qualified Domestic Relations Order as having
      a right to receive all or a portion of the benefits payable under the Plan
      with respect to a Member.

1.5   Annual Cash Balance Credit - the amount credited for a Plan Year to a
      Member's Cash Balance Account under Section 3.4 or 3.5.

1.6   Annuity Starting Date - the first date as of which distribution of
      Retirement Benefits to a Member is to begin under Section 6.3 or the first
      date as of which distribution of Preretirement Death Benefits to a
      Beneficiary is to begin under Section 7.5.

                                                                               2
<PAGE>

1.7   Beneficiary - a person who is entitled to receive distributions under this
      Plan upon or after the death of a Member or other Beneficiary.

1.8   Board - the Board of Directors of the Company, or a committee of the
      Board, authorized by, and acting on behalf of, the Board.

1.9   Break in Service - a Plan Year in which an Employee (or former Employee)
      is not credited with more than 500 Hours of Service. For purposes of
      determining whether there has been a Break in Service an Employee shall be
      credited with Hours of Service for the period during which he is on
      Parental Leave as follows: (a) the Employee shall be credited with the
      number of Hours of Service he would normally be credited with but for the
      absence (or if his normal Hours of Service cannot be determined, eight
      Hours of Service for each day of the absence), (b) the total number of
      Hours of Service credited for the absence shall not exceed 501 and (c) the
      Hours of Service credited for the absence shall be credited to the Plan
      Year in which the absence begins if the Employee would be prevented from
      incurring a Break in Service in that Plan Year solely because of the
      crediting of Hours of Service in accordance with clauses (a) and (b) of
      this definition or in any other case, the immediately following Plan Year.

1.10  Cash Balance Account - an account maintained on the books of the Plan for
      each Member, reflecting amounts credited to him under Sections 3.4, 3.5
      and 3.6.

1.11  Cash Balance Benefit - the portion of a Member's Retirement Benefit that
      is determined under Section 3.3.

1.12  Committee - the Pension and Welfare Plan Administration Committee
      appointed by the Board under Section 9.2.

1.13  Company - The Hertz Corporation or any successor by merger, consolidation
      or sale of assets.

                                                                               3
<PAGE>

1.14  Compensation - all cash remuneration paid or made available for any Plan
      Year (or if the context requires for a payroll period) by an Employer to
      an Employee for his services, as salary or wages and including bonuses,
      commissions, pay at premium rates (holiday, overtime or other), vacation
      pay (other than accrued vacation paid upon Termination of Employment or
      Retirement), the amount of his before tax savings contributions under The
      Hertz Corporation Income Savings Plan, his pay conversion credits under
      The Hertz Custom Benefit Program and payments made under salary and wage
      continuation plans and other similar plans providing for payments to
      Employees while absent from work, but excluding (a) any payments on
      account of long-term disability, (b) severance payments, layoff allowances
      and layoff extension benefits, (c) prizes, awards and amounts paid
      (whether or not under an employee benefit plan) to reimburse Employees'
      expenses, such as business and travel allowances, meal allowances, living
      allowances, relocation allowances and foreign service living and
      educational allowances, (d) any amounts attributable to stock options, (e)
      any other amounts paid for that Plan Year on account of the Employee under
      this Plan or under any other employee pension benefit plan (as defined in
      Section 3(2) of ERISA), (f) any incentive payments not related to the
      Employee's primary job responsibilities, (g) any payments under the
      Company's Long Term Incentive Program, and (h) any other amounts which are
      not includible in the Employee's income for federal income tax purposes.
      In determining Compensation for purposes of Section 3.4 or 3.5, only
      amounts paid or made available after the later of June 30, 1987 and the
      time an Employee becomes a Member shall be taken into account. For Plan
      Years beginning after 1988 and before 1994, an Employee's Compensation
      shall not exceed $200,000 and for Plan Years beginning after 1993 shall
      not exceed $150,000; provided, however, that such dollar limitations on
      recognized compensation for any Plan

                                                                               4
<PAGE>

      Year shall be the adjusted amount prescribed by the Secretary of the
      Treasury under Section 401(a)(17)(B) of the Internal Revenue Code that is
      applicable to such Plan Year. For purposes of Sections 4.1 and 4.2,
      Compensation shall mean compensation as that term is used in Section
      415(b)(3) of the Internal Revenue Code, including, effective for
      limitation years beginning on or after January 1, 1998, any elective
      deferral under section 402(g)(3) of the Code and any amount which is
      contributed or deferred by an Employer of Affiliated Company by reason of
      Sections 125 or 457 of the Code, or, effective for limitations years
      beginning on or after January 1, 2001, by reason of Section 132(f)(4) of
      the Code.

1.15  Defined Benefit Plan - an employee benefit plan (other than the Prior
      Plan), as defined in Section 3(35) of ERISA, that (a) is maintained by an
      Affiliated Company, (b) is qualified under Sections 401 and 501 of the
      Internal Revenue Code and (c) is not a Defined Contribution Plan.

1.16  Defined Contribution Plan - an employee benefit plan, as defined in
      Section 3(34) of ERISA, that (a) is maintained by an Affiliated Company,
      (b) is qualified under Sections 401 and 501 of the Internal Revenue Code
      and (c) provides for an individual account for each Member and for
      benefits based solely on the amounts credited to those accounts.

1.17  Early Retirement Date - the first day of the month coincident or next
      following a Member's 55th birthday or, if later, his being credited with
      five Vesting Years of Service.

1.18  Eligible Employee - an Employee of an Employer who (a) has been credited
      with at least 1,000 Hours of Service for the 12-month period commencing
      with the Employee's first Hour of Service or has been credited with at
      least 1,000 Hours of Service for any subsequent 12-month period commencing
      on the anniversary of the day of his first Hour of Service and (b) is not
      covered by a collective bargaining agreement (unless the

                                                                               5
<PAGE>

      collective bargaining agreement expressly provides for inclusion of the
      Employee as a Member). Any Employee of an Employer who is not an Eligible
      Employee on January 1, 1987 shall become an Eligible Employee on the day
      he satisfies the requirement of clause (b) above or the last day of the
      12-month period during which he satisfies the requirements of clause (a)
      above, whichever is later. In order to satisfy the requirement of clause
      (a) above, an individual need not be an Employee on the first or last day
      of a 12-month period or throughout the period. A Rehired Employee shall be
      deemed to be an Eligible Employee as of the day his employment recommences
      if the Employee has satisfied the requirements of this definition by the
      day his employment recommences and the Employee's most recent period of
      service has not been disregarded under Section 2.4(b).

1.19  Employee - any person who is employed by an Employer or an Affiliated
      Company, other than:

            (a)   A Leased Employee of an Employer or an Affiliated Company; or

            (b)   Any person who directly or indirectly provides services to an
                  Employer or an Affiliated Company pursuant to a contractual or
                  other arrangement, written or otherwise, either with that
                  person or with a third party except if such contract or
                  arrangement specifically provides for designation as an
                  Employee.

            If any person pursuant to (a) or (b) above shall be determined by a
            court, federal, state or local regulatory or administrative
            authority to have provided services as a common law employee of an
            Employer or an Affiliated Company, such determination shall not
            alter such person's exclusion from classification as an Employee for
            purposes of this Plan.

                                                                               6
<PAGE>

1.20  Employer - the Company or any other Affiliated Company which has adopted
      this Plan under Article 16.

1.21  ERISA - the Employee Retirement Income Security Act of 1974, as it may
      from time to time be amended or supplemented. References to any section of
      ERISA shall be to that section as it may be renumbered, amended,
      supplemented or reenacted.

1.22  Five Percent Owner - an Employee who owns more than five percent of his
      Affiliated Company (within the meaning of Section 416(i)(1)(B)(i) of the
      Internal Revenue Code).

1.23  Hour of Service - an hour for which an Employee directly or indirectly
      receives, or is entitled to receive, remuneration from an Affiliated
      Company in relation to his employment, including hours credited for
      vacation, sickness or disability and hours for which back pay has been
      paid, awarded or agreed to (irrespective of mitigation of damages) by an
      Affiliated Company (which shall be credited to an Employee with respect to
      the period for which remuneration is paid). In addition, an Employee shall
      be credited with Hours of Service in accordance with clause (b) of the
      following sentence for a period of up to 24 months while on an approved
      medical leave of absence. For periods of employment prior to January 1,
      1976, if an Employee's actual Hours of Service cannot be determined, his
      Hours of Service shall be determined as follows: (a) his Employer shall
      approximate his Hours of Service based on any available records or (b) if
      no records are available, he shall be credited with 45 Hours of Service
      for each week worked if he is paid on a weekly basis, 90 Hours of Service
      for each biweekly period worked if he is paid on a biweekly basis, 95
      Hours of Service for each semi-monthly period worked if he is paid on a
      semi-monthly basis, and 190 Hours of Service for each month worked if he
      is paid on a monthly basis. Hours of Service shall be credited to an

                                                                               7
<PAGE>

      Employee in accordance with the records of his Affiliated Company and
      Department of Labor Regulations Section 2530.200b-2.

1.24  Internal Revenue Code or Code - the Internal Revenue Code of 1986, as it
      may from time to time be amended or supplemented. References to any
      section of the Internal Revenue Code shall be to that section as it may be
      renumbered, amended, supplemented or reenacted.

1.25  Investment Manager - anyone who (a) is granted the power to manage,
      acquire, or dispose of any asset of the Plan, (b) acknowledges in writing
      that it is a fiduciary with respect to the Plan and (c) is (1) an
      investment adviser registered under the Investment Advisers Act of 1940,
      (2) a bank (as defined in the Investment Advisers Act of 1940) or (3) an
      insurance company qualified under the laws of more than one state to
      manage the assets of employee benefit plans (as defined in Section 3(3) of
      ERISA).

1.26  Leased Employee - means any person who performs services for an Employer
      (other than as an Employee) if: (a) the services are performed pursuant to
      an agreement between an Employer and any other person (the "Leasing
      Organization"); (b) such person has performed services for such Employer
      (including services performed for a related person within the meaning of
      Section 414(n)(6) of the Code) on a substantially full-time basis for a
      period of at least one year; and (c) such services are performed under the
      primary direction or control of the Employer. Contributions or benefits
      provided a Leased Employee by a Leasing Organization which are
      attributable to services performed for the Employer shall be treated as
      provided by the Employer.

1.27  Limitation Year - the Plan Year.

1.28  Member - a member of this Plan as described in Article 2 hereof.

1.29  Merged Plan - any plan designated by the Board as a Merged Plan under
      Section 18.4.

                                                                               8
<PAGE>

1.30  Most Recent Date of Hire - the later of: (a) the date as of which a Member
      is first credited with an Hour of Service by an Employer; (b) the date as
      of which a Member who is a Rehired Employee is again credited with an Hour
      of Service by an Employer, or (c) with respect to an Employee who
      transfers to the employment of an Employer from an Affiliated Company
      which is not an Employer or an Employee whose former employer was acquired
      by an Employer, the date determined by the Committee pursuant to Section
      18.3.

1.31  Normal Retirement Date - the first day of the month coincident with or
      next following a Member's 65th birthday.

1.32  Parental Leave - an Employee's leave of absence from employment with an
      Affiliated Company because of pregnancy, birth of the Employee's child,
      placement of a child with the Employee in connection with adoption of the
      child or caring for a child immediately following birth or adoption. The
      Affiliated Company shall determine the first and last day of any Parental
      Leave.

1.33  PBGC - the Pension Benefit Guaranty Corporation.

1.34  Permitted Leave - a Member's approved leave of absence from employment
      with an Affiliated Company. In approving a Permitted Leave, his Employer
      shall determine the date as of which the Permitted Leave begins and ends.

1.35  Plan - The Hertz Corporation Account Balance Defined Benefit Pension Plan,
      as set forth in this document and as it may from time to time be amended
      or supplemented.

1.36  Plan Administrator - the Company, as provided in Section 9.1.

1.37  Plan Year - the calendar year.

1.38  Pre-July, 1987 Benefit - the portion of a Member's Retirement Benefit
      determined under Schedule D to this Plan.

                                                                               9
<PAGE>

1.39  Pre-July, 1987 Member - an Employee who was a Member of the Plan on June
      30, 1987 and contributed to the Plan as of that date.

1.40  Pre-Retirement Death Benefit - the death benefit payable under Article 7
      to the Beneficiary of a Member who dies before his Annuity Starting Date.

1.41  Prior Plan - the Retirement Plan for the Employees of the RCA Corporation
      and Subsidiary Companies as in effect on August 30, 1985.

1.42  Qualified Domestic Relations Order - any judgment, decree or order that
      relates to the provisions of child support, alimony payments or marital
      property rights to a spouse, former spouse, child or other dependent of a
      Member, and is made pursuant to a state domestic relations order which
      creates or recognizes the existence of an Alternate Payee's right to, or
      assigns to an Alternate Payee the right to, receive all or a portion of
      the Member's Retirement Benefit and meets the requirements of Section
      414(p) of the Code.

1.43  Qualified Joint and Survivor Annuity - an annuity for the life of a Member
      with a survivor annuity for the life of his spouse, where the survivor
      annuity is 50% of the amount of the annuity payable during the joint lives
      of the Member and his spouse and the joint and survivor annuity is at
      least the Actuarial Equivalent of the most valuable form of benefit under
      the Plan payable on his Annuity Starting Date.

1.44  Qualified Preretirement Survivor Annuity - an immediate survivor annuity
      for the life of the Member's spouse. Each payment under the survivor
      annuity must not be less than the payment that would have been made to the
      spouse under the survivor annuity described below:

      (a)   in the case of a Member who dies after his Early Retirement Date,
            the survivor annuity his spouse would have received if the Member
            had a Termination of

                                                                              10
<PAGE>

            Employment on the day before his death and received distribution of
            his benefits in the form of an immediate Qualified Joint and
            Survivor Annuity; or

      (b)   in the case of a Member who dies on or before his Early Retirement
            Date, the survivor annuity his spouse would have received if the
            Member had a Termination of Employment on the day of his death,
            survived to his Early Retirement Date, received distribution of
            benefits in the form of a Qualified Joint and Survivor Annuity
            commencing on his Early Retirement Date and died on the day after
            his Early Retirement Date.

1.45  Rehired Employee - an Employee who is rehired by an Affiliated Company
      after a Termination of Employment or Retirement. The sections which
      include provisions relating to a Rehired Employee are Section 1.18
      (Eligible Employee), Section 1.30 (Most Recent Date of Hire), Section 1.54
      (Vesting Years of Service), Section 2.4 (time of participation), Section
      3.8 (amount of Retirement Benefit), Section 3.9 (cash-out of Cash Balance
      Benefits) and Section 3.10 (suspension of benefit payments).

1.46  Retirement - a Member's termination of employment with an Affiliated
      Company on or after his Early Retirement Date or his Normal Retirement
      Date.

1.47  Retirement Benefit - the monthly benefit that accrues to a Member under
      Article 3.

1.48  Termination of Employment - a Member's termination of employment with an
      Affiliated Company, whether voluntary or involuntary, for any reason,
      including but not limited to quit or discharge, and other than for
      Parental Leave, Permitted Leave, transfer to another Affiliated Company,
      Retirement, or death. Termination of Employment shall include a layoff
      unless the laid off Member elects by written notice to the Committee to
      defer the date of his Termination of Employment to a date no later than
      the last day of his recall period.

                                                                              11
<PAGE>

1.49  Trust - the trust established or maintained under the Trust Agreement.

1.50  Trust Agreement - the agreement which provides for the establishment of
      the Trust for the purposes of this Plan, as that agreement may from time
      to time be amended or supplemented.

1.51  Trust Fund - the total of the assets held in the Trust.

1.52  Trustee - anyone serving as trustee under the Trust Agreement.

1.53  Vested Interest - the nonforfeitable portion of a Member's Retirement
      Benefit determined under Article 5.

1.54  Vesting Years of Service - all Years of Service credited to an Employee or
      a participant in a Merged Plan (and any periods that are required by law
      to be credited to the Employee for his period of military service), except
      that the following Years of Service are disregarded:

      (a)   Years of Service preceding a Break in Service, if the Employee has
            no Vested Interest (other than a Vested Interest under Section 5.2)
            and has a number of consecutive Breaks in Service equal to (or
            greater than) the greater of five and the number of his Years of
            Service (excluding Years of Service previously disregarded under
            this clause (a)) preceding the Break in Service;

      (b)   Years of Service preceding a Break in Service if the Rehired
            Employee has not been credited with at least one Year of Service
            after that Break in Service;

      (c)   Years of Service ending before January 1, 1987 with respect to which
            the Employee was not a Member (or a member of the Prior Plan)
            because he declined to make contributions to the Plan or the Prior
            Plan even though he was eligible to do so at any time during that
            Year of Service;

                                                                              12
<PAGE>

      (d)   Years of Service credited to the Employee before January 1, 1971
            unless the Employee has been credited with at least three Years of
            Service after December 31, 1970;

      (e)   Years of Service credited to the Employee before January 1, 1976 if
            those Years of Service would not have been considered under the
            Prior Plan (1) in the case of an Employee who was not a Member,
            continuous service and (2) in the case of an Employee who was a
            Member, credited service;

      (f)   Years of Service credited to the Employee during which his Employer
            was not at any time during the Year of Service an Affiliated Company
            or an employer maintaining a Merged Plan in which he was a member.

      For purposes of determining Vesting Years of Service under this Section
      1.50, any Employee who is credited with at least 1,000 Hours of Service in
      both the 12-month period commencing with his first Hour of Service and the
      first Plan Year beginning after his first Hour of Service shall be
      credited with two Vesting Years of Service.

1.55  Year of Service - a Plan Year for which an Employee has been credited with
      at least 1,000 Hours of Service.

                                                                              13
<PAGE>

ARTICLE 2. MEMBERSHIP

2.1   Membership as of January 1, 2000. All Employees who were Members as of
      December 31, 1999 shall continue as Members.

2.2   Membership After January 1, 2000. After January 1, 2000, an Employee
      automatically shall become a Member on the first day of the month
      coincident with or next following the month in which he becomes an
      Eligible Employee.

2.3   Cessation of Membership. A Member shall cease to be a Member as of the
      later of the last day of the Plan Year in which he ceases to be an
      Employee and the date that all distributions due to him or his Beneficiary
      are made.

2.4   Membership Upon Reemployment. The following rules shall apply with respect
      to the membership of a Rehired Employee:

      (a)   Subject to Section 2.4(b), if a Rehired Employee is an Eligible
            Employee as of the date he is reemployed by an Employer, the Rehired
            Employee shall again become a Member as of that day. If the Rehired
            Employee is not an Eligible Employee as of the day he is reemployed,
            the Rehired Employee shall become a Member in accordance with
            Section 2.2.

      (b)   If the Rehired Employee incurred a Break in Service and is
            reemployed on a basis in which he is not customarily credited with
            at least 1,000 Hours of Service for a Plan Year, then the Rehired
            Employee shall not become a Member as provided in Section 2.4(a)
            until he is credited with at least 1,000 Hours of Service for the
            12-month period commencing with his first Hour of Service after
            reemployment or any subsequent 12-month period commencing on the
            anniversary of the day of that first Hour of Service.

                                                                              14
<PAGE>

      (c)   In determining whether a Rehired Employee is an Eligible Employee as
            of the date the Rehired Employee is reemployed, if the Rehired
            Employee has no Vested Interest (other than a Vested Interest under
            Section 5.2) and has a number of consecutive Breaks in Service equal
            to (or greater than) the greater of five and the number of his
            previous Years of Service (excluding Years of Service previously
            disregarded under this Section 2.4), the Rehired Employee's previous
            service as an Employee shall be disregarded for purposes of
            determining when he again becomes an Eligible Employee. For purposes
            of determining Years of Service under this Section 2.4(c), any
            Employee who is credited with at least 1,000 Hours of Service in
            both the 12-month period commencing with his first Hour of Service
            and the first Plan Year beginning after his first Hour of Service
            shall be credited with two Years of Service.

      (d)   For purposes of Sections 2.4(b) and (c), a Break in Service is a
            12-month period commencing on the day of an Employee's first Hour of
            Service or any anniversary of that day in which an Employee is not
            credited with more than 501 Hours of Service.

                                                                              15
<PAGE>

ARTICLE 3. RETIREMENT BENEFITS

3.1   General. Members' Retirement Benefits shall be determined under this
      Article 3 (subject to the limitations set forth in Article 4). Each Member
      shall be entitled to the nonforfeitable portion, as determined under
      Article 5, of his Retirement Benefit, and shall have no right to any
      portion of his Retirement Benefit which is not nonforfeitable (nor shall
      any such portion increase the Retirement Benefit of any other Member). The
      form and timing of distribution of the Actuarially Equivalent value of the
      nonforfeitable portion of a Member's Retirement Benefit shall be made in
      accordance with Article 6.

3.2   Retirement Benefit. Upon a Member's Retirement or Termination of
      Employment, his Retirement Benefit shall be Actuarially Equivalent in
      value to the sum of (a) his Cash Balance Benefit under Section 3.3 and (b)
      his Pre-July, 1987 Benefit determined in accordance with the additional
      provisions of this Section 3.2 contained in Schedule D to this Plan.

3.2A  Minimum Benefit. Notwithstanding the benefit described in Sections 3.2
      above, if a Member's Retirement Benefit has accrued so that the accrual
      does not meet the requirements of Section 411(b)(1) of the Code and the
      Treasury Regulations thereunder, the Member's Retirement Benefit payable
      at Normal Retirement Date shall be no less than (1) plus (2), multiplied
      by (3), where (1), (2) and (3) are determined as follows:

      (1)   A Member's Pre-July, 1987 Benefit, determined in accordance with
            Section 3.2 contained in Schedule D of the Plan, plus

      (2)   The Projected Value of a Member's Cash Balance Account, payable as a
            single life annuity with a five-year period certain at Normal
            Retirement Date based on the Actuarial Equivalent factors in the
            Plan as of the Annuity Starting Date. The "Projected Value" of a
            Member's Cash Balance Account shall be determined by

                                                                              16
<PAGE>

            calculating the Member's Cash Balance Account at Normal Retirement
            Date assuming such Member had continued to earn Cash Balance Credits
            through his Normal Retirement Date. These additional Cash Balance
            Credits shall be calculated based on the Member's average
            Compensation for the 10 consecutive Plan Years while a Member (or
            such lesser number of Plan Years while a Member if he was a Member
            for less than 10 Plan Years) prior to termination and shall be
            deemed to earn the rates of interest based on the same rate used to
            calculate the Interest Credits in the year of the Member's
            termination.

      (3)   A fraction, the numerator of which is the Years of Benefit Service
            as of the date of termination, and the denominator of which is the
            Years of Benefit Service that a Member would have been credited with
            had he been employed to his Normal Retirement Date. For purposes of
            this subparagraph (3), Years of Benefit Service shall mean the sum
            of the Years of Credited Service accrued under the Plan through June
            30, 1987 and the years and months of service while an active Member
            of the Plan after June 30,1987, where a period of twelve (12)
            calendar months of service (which need not be consecutive) shall be
            considered a Year of Benefit Service and a period of less than
            twelve (12) calendar months shall be credited as a partial Year of
            Benefit Service equal to a fraction, the numerator of which is the
            number of such months of service, and the denominator of which is
            twelve (12). A Member will be credited with a month of service for
            each calendar month in which he is credited with an Hour of Service
            under the Plan.

                                                                              17
<PAGE>

            If a Member's benefit commences prior to his Normal Retirement Date,
            this Minimum Benefit shall be reduced using the Actuarial Equivalent
            factors in the Plan as of the Annuity Starting Date.

3.3   Cash Balance Benefit. A Member's Cash Balance Benefit shall be Actuarially
      Equivalent in value to the aggregate amount credited to his Cash Balance
      Account under Section 3.4 or 3.5 (whichever is applicable) and 3.6.

3.4   Credits to Cash Balance Account. Subject to Section 3.2A and 3.5, for each
      Plan Year beginning: (a) July 1, 1987 and ending before December 31, 1995,
      a Member's Cash Balance Account shall be credited with an Annual Cash
      Balance Credit equal to 3 % of his Compensation for that Plan Year; (b)
      January 1, 1996 and ending before December 31, 1997, a Member's Cash
      Balance Account shall be credited with an Annual Cash Balance Credit equal
      to: (i) 3 % of his Compensation for that Plan Year in the case of a Member
      who is credited with less than 60 continuous Months of Service from his
      Most Recent Date of Hire, or (ii) 4% of his Compensation for that Plan
      Year in the case of a Member who is credited with 60 or more continuous
      Months of Service from his Most Recent Date of Hire; in the case of a
      Member who is first credited with 60 continuous Months of Service after
      January 1 of a Plan Year, the percentage of his Compensation utilized in
      determining his Annual Cash Balance Credit for that Plan Year shall be
      increased to 4%, effective as of the first day of the month coincident
      with or next following his completion of 60 Months of Service from his
      Most Recent Date of Hire; (c) January 1, 1998 and ending before December
      31, 1999, a Member's Cash Balance Account shall be credited with an Annual
      Cash Balance Credit equal to: (i) 3 % of his Compensation for that Plan
      Year in the case of a Member who is credited with less than 60 continuous
      Months of Service from his Most Recent Date of Hire, or (ii) 5% of his

                                                                              18
<PAGE>

      Compensation for that Plan Year in the case of a member who is credited
      with 60 or more continuous Months of Service from his Most Recent Date of
      Hire; in the case of a Member who is first credited with 60 continuous
      Months of Service after January 1 of a Plan Year, the percentage of his
      Compensation utilized in determining his Annual Cash Balance Credit for
      that Plan Year shall be increased to 5%, effective as of the first day of
      the month coincident with or next following his completion of 60 Months of
      Service from his Most Recent Date of Hire; and (d) January 1, 2000 and
      thereafter, a Member's Cash Balance Account shall be credited with an
      Annual Cash Balance Credit equal to: (a) 3 % of his Compensation for that
      Plan Year in the case of a Member who is credited with less than 60
      continuous Months of Service from his Most Recent Date of Hire, (b) 5% of
      his Compensation for that Plan Year in the case of a Member who is
      credited with 60 to 119 continuous Months of Service from his Most Recent
      Date of Hire, or (c) 6.5% of his Compensation for that Plan Year in the
      case of a Member who is credited with 120 or more continuous Months of
      Service from his Most Recent Date of Hire. In the case of a Member who is
      first credited with 60 or 120 continuous Months of Service after January 1
      of a Plan Year, the percentage of his Compensation utilized in determining
      his Annual Cash Balance Credit for that Plan Year shall be increased to 5%
      or 6.5%, respectively, effective as of the first day of the month
      coincident with or next following his completion of 60 or 120 continuous
      Months of Service from his Most Recent Date of Hire. For purposes of this
      Section 3.4, a "Month of Service" shall mean a month in which a Member is
      credited with one Hour of Service.

3.5   Credits to Cash Balance Account for Certain Members. In the case of a
      Member who as of June 30, 1987 had both attained age 50 and been credited
      with at least 10 Years of Credited Service (as defined in Schedule B to
      this plan), his Annual Cash Balance Credit

                                                                              19
<PAGE>

      for a Plan Year beginning July 1, 1987 and thereafter, (instead of the
      Annual Cash Balance Credit under Section 3.4) shall be equal to the sum of
      (a) the percentage of Compensation that would have been credited to his
      Cash Balance Account under Section 3.4 and (b) an additional percentage of
      his Compensation for that Plan Year based on his age on July 1, 1987, as
      follows:

<TABLE>
<CAPTION>
              Age (last birthday)
                on July 1, 1987                 Additional Percentage
              --------------------              ---------------------
              <S>                               <C>
                 50 through 54                           1 %
                 55 through 59                           2 %
                  60 and over                            3 %
</TABLE>

3.6   Interest on the Cash Balance Account.

      (a)   As of the last day of each Plan Year beginning with the Plan Year
            immediately following the crediting under Section 3.4 or 3.5 of an
            Annual Cash Balance Credit to a Member's Cash Balance Account and
            ending with the Plan Year immediately preceding the Member's Annuity
            Starting Date, a Member's Cash Balance Account shall be credited
            with an amount equivalent to interest (compounded annually) on that
            Annual Cash Balance Credit. The rate of interest to be credited with
            respect to an Annual Cash Balance Credit for each Plan Year shall be
            at an annual rate equal to the set of PBGC deferred interest rates
            in effect for the December immediately preceding the Plan Year of
            the Annual Cash Balance Credit. Such rates are as follows with
            respect to Annual Cash Balance Credits for the 2000 and prior Plan
            Years:

                                                                              20
<PAGE>

<TABLE>
<CAPTION>
               Plan Year of Annual
              Cash Balance Interest                 Plan Year of Interest
                     Credit                                Credit                    Rate of Interest Credit
              -----------------------               ----------------------           -----------------------
              <S>                                   <C>                              <C>
                      1987                            1988 through 1994                      6.75%
                                                      1995 through 2002                      5.50%
                                                       2003 and later                        4.00%
                      1988                            1989 through 1995                      7.50%
                                                      1996 through 2003                      6.25%
                                                       2004 and later                        4.00%
                      1989                            1990 through 1996                      7.00%
                                                      1997 through 2004                      5.75%
                                                       2005 and later                        4.00%
                      1990                            1991 through 1997                      6.50%
                                                      1998 through 2005                      5.25%
                                                       2006 and later                        4.00%
                      1991                            1992 through 1998                      6.75%
                                                      1999 through 2006                      5.50%
                                                       2007 and later                        4.00%
                      1992                            1993 through 1999                      6.00%
                                                      2000 through 2007                      4.75%
                                                       2008 and later                        4.00%
                      1993                            1994 through 2000                      5.25%
                                                       2001 and later                        4.00%
                      1994                             1995 and later                        4.00%
                      1995                            1996 through 2002                      5.50%
                                                      2003 through 2010                      4.25%
                                                       2011 and later                        4.00%
                      1996                             1997 and later                        4.00%
                      1997                             1998 and later                        4.00%
                      1998                             1999 and later                        4.00%
                      1999                             2000 and later                        4.00%
                      2000                            2001 through 2007                      4.50%
                                                       2008 and later                        4.00%
                      2001                            2002 through 2008                      4.50%
                                                       2009 and later                        4.00%
                      2002                             2003 and later                        4.00%
</TABLE>

      (b)   In addition, for the period beginning with the first day of the Plan
            Year in which a Member's Annuity Starting Date occurs and ending on
            the Member's Annuity Starting Date the Member's Cash Balance Account
            shall be credited with an amount equivalent to interest at the rate
            specified in Section 3.6(a). A separate

                                                                              21
<PAGE>

            amount shall be credited to a Member's Cash Balance Account under
            this Section 3.6 each Plan Year (or portion thereof) with respect to
            each of his Annual Cash Balance Credits described above in this
            Section 3.6. In accordance with this Section 3.6, the Cash Balance
            Account of a Member who is credited with an Annual Cash Balance
            Credit for 1987 shall be credited with interest with respect to that
            Annual Cash Balance Credit as of each December 31 beginning with
            December 31, 1988 and ending with the December 31 immediately
            preceding the Member's Annuity Starting Date as the rates
            (compounded annually) of 6.75% for 1988 through 1994, 5.50% for 1995
            to 2002 and 4 % for subsequent years.

3.7   Minimum Retirement Benefit.

      (a)   In the case of a Member whose Compensation for any Plan Year before
            1989 exceeded $200,000, his Retirement Benefit shall be the greater
            of (i) or (ii) as follows, or (iii) the amount determined in
            accordance with Section 3.7(b):

            (i)   the sum of (1) his Retirement Benefit accrued as of December
                  31, 1988 under this Plan but determined without regard to the
                  annual limit on compensation under Section 401(a)(17) of the
                  Internal Revenue Code ($200,000) that would otherwise apply
                  and (2) his Retirement Benefit accrued under this Plan
                  attributable to service rendered on or after January 1, 1989;
                  and

            (ii)  his Retirement Benefit determined without regard to this
                  Section 3.7.

      (b)   In the case of a Member whose Compensation for any Plan Year before
            1994 exceeded $150,000, his Retirement Benefit shall be the greater
            of (i) or (ii) as follows:

                                                                              22
<PAGE>

            (i)   the sum of (1) his Retirement Benefit accrued as of December
                  31, 1993 under this Plan as then in effect and (2) his
                  Retirement Benefit accrued under this Plan attributable to
                  service rendered on or after January 1, 1994;

                   or

            (ii)  his Retirement Benefit determined without regard to this
                  Section 3.7.

3.8   Retirement Benefit of Rehired Employee.

      In the case of a Rehired Employee, his Retirement Benefit (or
      Pre-Retirement Death Benefit if he dies during his period of reemployment)
      shall be (1) an amount determined under the applicable Section of this
      Article 3 (or Article 7, if he dies while reemployed), and subject to
      Section 3.8 of Schedule D to this Plan (concerning Pre-July 1987
      Retirement Benefits) and Section 3.9, computed as of the date of his
      subsequent Retirement, Termination of Employment or death, less (2) the
      Actuarial Equivalent of the payments he received prior to his reemployment
      with an Affiliated Company. In no event shall a Member's Retirement
      Benefit under this Section 3.8 be less than the Member's Retirement
      Benefit before he resumed employment with an Affiliated Company.

3.9   Deemed Cash-Out of Cash Balance Benefit.

      (a)   Subject to Section 3.9(b), in the case of a Member who does not have
            a nonforfeitable interest in his Cash Balance Benefit upon his
            Termination of Employment, he shall be deemed to have received
            distribution of his entire Cash Balance Benefit upon his Termination
            of Employment.

      (b)   This Section 3.9(b) applies to a Member described in Section 3.9(a)
            who resumes employment covered under the Plan. If such a Member
            resumes employment covered under the Plan prior to the day the
            Member incurs five consecutive

                                                                              23
<PAGE>

            Breaks in Service then he will be deemed to have repaid his
            distribution and the amount in his Cash Balance Benefit as of the
            date of his Termination of Employment will be restored with interest
            credited under Section 3.6 for the period beginning on his
            Termination of Employment and ending on the day of his reemployment.

3.10  Suspension of Benefit Payments.

      (a)   If a Member who has retired on an Early Retirement Date resumes
            employment with an Affiliated Company prior to Normal Retirement Age
            after payment of his Retirement Benefit has commenced, payment of
            his Retirement Benefit shall be suspended as of the day he again
            becomes a Member in accordance with Section 2.4(a) or (b).

      (b)   If a Member remains in the employment of an Affiliated Company after
            his Normal retirement Age, or if a Member who has retired on or
            after his Normal Retirement Age becomes a Rehired Employee after his
            or her Annuity Starting Date, payment of his Retirement Benefit
            shall be suspended for each calendar month in which he is credited
            with forty (40) or more Hours of Service ("ERISA Section
            203(a)(3)(B) service").

      (c)   A Member shall be entitled to resume receiving distribution of his
            Retirement Benefit in accordance with the following rules: (a)
            payments determined in accordance with Section 3.8 shall resume no
            later than the third calendar month after the calendar month in
            which the Member ceases to be so employed provided the Member has
            notified the Employer of the cessation, (b) payment shall be
            retroactive to the day the Member ceased such employment, (c) the
            Member may elect the form of payment in accordance with Section 6.1.
            The Plan Administrator shall notify any Member who is

                                                                              24
<PAGE>

            affected by this Section 3.10 in accordance with the notification
            requirements of Department of Labor Regulations Section
            2530.203-3(b)(4).

                                                                              25
<PAGE>

ARTICLE 4. LIMITATIONS ON BENEFITS

4.1   Definitions. The following definitions apply for purposes of this Article
      4:

      (a)   Annual Benefit - a benefit which is payable annually in the form of
            a straight life annuity with no ancillary benefits determined
            without regard to the Accumulated Pre-July, 1987 Employee
            Contributions as defined in Schedule B.

      (b)   Projected Annual Benefit - the projected Retirement Benefit payable
            in the form of an Annual Benefit to which a Member would be entitled
            under all Defined Benefit Plans assuming (a) that all relevant
            factors used to determine benefits under each Defined Benefit Plan
            remained constant from the last day of the most recent Plan Year in
            which the Participant was credited with an Annual Cash Balance
            Credit until his Normal Retirement Date and (b) that distribution of
            benefits under each Defined Benefit Plan commences on his attainment
            of his social security retirement age (or current age if later).

4.2   Maximum Retirement Benefit. Notwithstanding any other provision of this
      Plan:

      (a)   Subject to Section 4.2(b), the Retirement Benefit of a Member shall
            be reduced to the extent that it (plus, if applicable, the aggregate
            retirement benefit, to which the Member is entitled under all other
            Defined Benefit Plans in which he was a member) exceeds the lesser
            of (1) $90,000 (or such higher amount as may be permitted under
            Section 415(d) of the Internal Revenue Code to reflect increases in
            the cost of living) and (2) 100% of the Member's average
            Compensation during the three consecutive Plan Years in which he
            received the greatest aggregate amount of Compensation. No reduction
            shall be required under this Section 4.2(a) in the case of a Member
            who never participated in a Defined Contribution

                                                                              26
<PAGE>

            Plan if the Member's Retirement Benefit (plus, if applicable, his
            aggregate annual benefit under all other Defined Benefit Plans) does
            not exceed $10,000.

      (b)   The following adjustments shall be made in applying the limitations
            of Section 4.2(a) and 4.3:

            (1)   If a Member's Retirement Benefit (or retirement benefit to
                  which the Member is entitled under any other Defined Benefit
                  Plan) is payable in a form other than an Annual Benefit, the
                  Retirement Benefit shall be adjusted so that it is the
                  Actuarial Equivalent of an Annual Benefit, except that the
                  following shall not be taken into account: (A) any ancillary
                  benefit that is not related to retirement income benefits and
                  (B) the survivor annuity provided under the portion of any
                  annuity that constitutes a Qualified Joint and Survivor
                  Annuity (as defined in Section 417(b) of the Internal Revenue
                  Code).

            (2)   the dollar limitation set forth in Section 4.2(a)(1) shall be
                  adjusted as follows: (A) if distribution of a Member's
                  Retirement Benefit begins before his social security
                  retirement age as defined in Section 415(b)(8) of the Internal
                  Revenue Code but on or after the Member attains age 62, the
                  limitation shall be reduced by 5/9 of 1% for each of the first
                  36 months and by 5/12 of 1% for each of the next 24 months by
                  which such commencement date precedes the Member's social
                  security retirement age; and (B) if the Member's Retirement
                  Benefit begins before the Member attains age 62, the
                  limitation shall be adjusted so that so that it equals an
                  Annual Benefit beginning at the time distribution of the
                  Member's Retirement Benefit begins, which is the Actuarial
                  Equivalent of

                                                                              27
<PAGE>

                  an Annual Benefit equal to the dollar limitation set forth in
                  Section 4.2(a)(1) beginning at age 62. If distribution of a
                  Member's Retirement Benefit begins after his social security
                  retirement age, the limitation shall be increased so that it
                  equals an Annual Benefit beginning at the time distribution of
                  the Member's Retirement Benefit begins, which is the Actuarial
                  Equivalent of an Annual Benefit equal to the dollar limitation
                  set forth in Section 4.2(a)(1) beginning at the Member's
                  social security retirement age.

            (3)   in the case of a Member with less than ten years of membership
                  in the Plan or less than ten Years of Service: (A) the dollar
                  limitation set forth in Section 4.2(a)(1) shall be multiplied
                  by a fraction the numerator of which is the aggregate number
                  of the Member's years of membership in the Plan at the time
                  the determination is made and the denominator of which is ten,
                  and (B) the percentage limitation set forth in Section
                  4.2(a)(2) and the $10,000 minimum benefit referred to in the
                  last sentence of Section 4.2(a)(2) shall be multiplied by a
                  fraction the numerator of which is the aggregate number of the
                  Member's Years of Service at the time the determination is
                  made and the denominator of which is ten.

            (4)   For purposes of adjusting the Member's Retirement Benefit
                  under Section 4.2(b)(1) or the dollar limitation under this
                  Section 4.2(b)(2), the interest rate assumption shall be that
                  set forth in Schedule C to this Plan, subject to the
                  limitations on interest rates of Section 415(b)(2)(E) of the
                  Internal Revenue Code.

                                                                              28
<PAGE>

      (c)   The Retirement Benefit of an Employee who was a Member on or before
            December 31, 1986 shall not be reduced under any other provision of
            this Section 4.2 to the extent that it does not exceed his
            Retirement Benefit accrued as of December 31, 1986, and determined
            in accordance with the requirements of Section 415 of the Internal
            Revenue Code in effect on that date and without regard to amendment
            to the Plan after May 5, 1986.

4.3   Restrictions on 25 Highest Paid Employees

      (a)   The Retirement Benefit of a Member who is among the 25 most highly
            paid highly compensated employees (as defined in Section 414(q) of
            the Internal Revenue Code) and former Employees of the Affiliated
            Companies shall be subject to the restrictions set forth in Section
            4.3(b) unless at least one of the following conditions is met: (1)
            the aggregate value of the Retirement Benefit payable to the Member
            does not exceed 1 % of the Plan's current liabilities as that term
            is defined in Section 412(1)(7) of the Internal Revenue Code, or (2)
            the Plan assets remaining after the distribution to the Member
            equals or exceeds 110% of the Plan's current liabilities.

      (b)   Subject to Section 4.3(c), the annual payments to a Member described
            in Section 4.3(a) shall not exceed the annual payment to which such
            Member would be entitled if his Retirement Benefit is distributed in
            the form of a single life annuity.

      (c)   Notwithstanding Section 4.3(b), a Member to whom the restrictions of
            Section 4.3(b) apply may receive his Retirement Benefit under a
            payment schedule which otherwise complies with rules promulgated by
            the Secretary of Treasury.

                                                                              29
<PAGE>

ARTICLE 5. VESTING

5.1  Nonforfeitability. Subject to Section 5.2, a Member's right to receive his
     Retirement Benefit shall become nonforfeitable upon the earlier of (a) his
     being credited with five Vesting Years of Service, (b) his 65th birthday if
     he is an Employee on that day, or (c), effective on or after January 1,
     2002, his death.

5.2  Employee Contributions. A Member shall have a nonforfeitable right to the
     amount of his Accumulated Pre-July 1, 1987 Employee Contributions (as
     defined in Schedule B to the Plan).

                                                                              30
<PAGE>

ARTICLE 6. DISTRIBUTION

6.1  Election of Form of Distribution. A Member (or Beneficiary) shall be
     entitled to elect, subject to Section 6.6, to receive distribution of his
     Vested Interest (if the Actuarial Equivalent present value of that Vested
     Interest as of the Member's Annuity Starting Date is in excess of $3,500
     ($5,000, effective January 1, 2002) by one of the following methods, each
     of which is Actuarially Equivalent in value to the other:

     (a)  Life Annuity - an annuity for the life of the Member or Beneficiary.

     (b)  Life Annuity with a five year period certain - an annuity for the life
          of the Member, but if the Member dies within 60 months of his Annuity
          Starting Date, the annuity is payable to the Member's Beneficiary for
          the remainder of that 60-month period.

     (c)  Qualified Joint and Survivor Annuity.

     (d)  Joint and Survivor Annuity - an annuity for the life of the Member
          with a survivor annuity for the life of his spouse, where the survivor
          annuity is 100% of the amount payable during the joint lives of the
          Member and his spouse.

     (e)  Cash Refund at Death - an annuity for the life of the Member with
          reduced payments during his life and a single cash payment to his
          Beneficiary at his death in an amount equal to the excess, if any, of
          the Actuarial Equivalent value of the Retirement Benefit over the
          amount paid to the Member during his lifetime.

     (f)  Lump Sum Distribution - a single cash distribution of the full amount
          payable.

     A Member's election under this Section 6.1 (which includes the designation
     of a contingent Beneficiary) must be made during the 90-day period
     preceding the Member's Annuity Starting Date. This election may not be
     changed, subject to Section 6.6, after the Member's Annuity Starting Date.
     In the absence of an effective election under this

                                                                              31
<PAGE>

     Section 6.1, subject to Section 6.6, a Member shall be deemed to have
     elected a distribution in the form of a straight life annuity with no
     ancillary benefits.

6.2  Vested Interest Not in Excess of $3500 ($5,000, effective January 1, 2002).
     If as of the Member's Annuity Starting Date the Actuarial Equivalent
     present value of a Member's Vested Interest does not exceed $3,500 ($5,000,
     effective January 1, 2002), the method of distribution as to that Member
     shall be as a single cash payment of the full amount payable.

6.3  Timing of Distribution. - Annuity Starting Date. Distribution of a Member's
     Retirement Benefit shall commence as of his Annuity Starting Date. A
     Member's Annuity Starting Date shall be the earliest of:

     (a)  the first day of the month coincident or next following the day of his
          Retirement,

     (b)  as soon as practicable after his Termination of Employment if as of
          that date the Actuarial Equivalent lump sum value of his benefit does
          not exceed $3,500 ($5,000, effective January 1, 2002) as of the date
          distribution commences,

     (c)  the first day of the month coincident or next following his 65th
          birthday, if he has a Termination of Employment prior to that time,
          unless he elects under Section 6.4 to commence to receive distribution
          prior to his 65th birthday, and

     (d)  effective for all Members, the first day of April immediately
          following the later of: (i) the calendar year in which the Member
          attains age seventy and one-half (70-1/2), or (ii) in the case of a
          Member who is not a Five Percent Owner, the calendar year in which he
          retires. Notwithstanding the foregoing, a Member who attains age
          seventy and one-half (70-1/2) in 1997, 1998 or 1999 while employed by
          an Employer shall receive distributions in accordance with this
          Section 6.3(d) as of the first day of April of the calendar year
          following the calendar year in

                                                                              32
<PAGE>

          which he attains age seventy and one-half (70-1/2). Such a Member may
          elect, subject to the rules of Section 6.1 and 6.6, to receive
          distribution of his Vested Interest in annual payments determined as
          (a) the single cash distribution that would be payable upon
          Retirement, divided by (b) the applicable life expectancy under
          Section 401(a)(9) of the Code. The life expectancy of the Member (or
          the joint and life and last survivor expectancy of the Member and
          spouse or Beneficiary) shall not be recalculated for purposes of
          determining such distribution. Life expectancy and joint and last
          survivor expectancy shall be computed using the return multiples in
          Tables V and VI of Regulations 1.72-9. Such election is automatically
          revoked upon Retirement.

     (e)  In the case of a Member who receives Retirement Benefits as of the
          date specified in Section 6.3(d)(ii) above, his Pre-July 1987 Benefit
          shall be actuarially increased in accordance with the factors set
          forth in Section 1.1 hereof to take into account the period after
          April 1 following the year in which he attained age seventy and
          one-half (70-1/2) for which he was not receiving any retirement income
          under the Plan; provided, however, that any such actuarial increase
          shall reduce his additional benefit accruals under Article 3 hereof to
          the extent permitted by Sections 401(a)(9)(C) and 411(b)(1)(H) of the
          Internal Revenue Code. The actuarial increase provided by this
          subparagraph shall not be in addition to but shall be in lieu of any
          actuarial increase provided by the Plan for benefits payable after
          Normal Retirement Date.

6.4  Election to Receive Distribution Before Normal Retirement Date. A Member
     who (1) has a Termination of Employment before he attains age 65 and (2)
     has a Vested Interest, the Actuarial Equivalent present value of which
     exceeds $3,500 ($5,000 effective January

                                                                              33
<PAGE>

     1, 2002) as of the Participant's Annuity Starting Date may elect to have
     distribution of his Vested Interest commence before his Normal Retirement
     Date. Subject to Schedule E to this Plan, in that event, distribution shall
     commence as of the first day of any month following the election, but
     distribution of benefits may not commence prior to a Member's Early
     Retirement Date.

6.5  Reductions for Distribution After Normal Retirement Date. In the case of a
     Member who (1) remains an Employee after his Normal Retirement Date and (2)
     is receiving, while an Employee, distribution of his Retirement Benefit,
     the portion of his Retirement benefit determined as of the last day of any
     Plan Year attributable to Plan Years beginning after his Normal Retirement
     Date shall be reduced (but not below zero) by the Actuarial Equivalent
     value of the total Plan distribution the Member has received as of the last
     day of the Plan Year determined in accordance with regulations under
     Section 411(b)(1)(H) of the Internal Revenue Code.

6.6  Qualified Joint and Survivor Annuity for Married Members. A Member who is
     married on his Annuity Starting Date shall receive his Retirement Benefit
     in the form of a Qualified Joint and Survivor Annuity, unless the Member
     has previously waived his right to receive distribution of benefits in this
     form. The waiver must be executed and consented to by the Member's spouse
     in accordance with Section 6.8 during the 90-day period ending on the
     Members Annuity Starting Date. Both the Member's waiver and the spouse's
     consent must state the particular optional form of benefit to be
     distributed and any nonspouse Beneficiary or class of non-spouse
     Beneficiaries. Alternatively, the spouse's consent may permit the Member to
     elect any optional form of benefit available under the Plan and to
     designate any contingent Beneficiary. Such a general consent must
     acknowledge that the spouse has voluntarily relinquished rights to limit
     consent to a

                                                                              34
<PAGE>

     specific form of benefit or Beneficiaries or both. A Member's waiver of a
     Qualified Joint and Survivor Annuity under this Section 6.6 may be revoked
     at any time before the Member's Annuity Starting Date and, once revoked,
     may be made again before that date. However, if a Member's Annuity Starting
     Date is the date set forth in Section 6.3(d), then he may revoke and remake
     a waiver election with respect to the undistributed portion of his
     Retirement Benefit within the 90-day period ending before his Retirement. A
     spouse's consent to the waiver once given may not be revoked.

6.7  Notification of Right to Waive Qualified Joint and Survivor Annuity. Within
     the period beginning no earlier than 90 days before the Member's Annuity
     Starting Date and no later than 30 days before his Annuity Starting Date,
     the Committee shall provide each Member (whether or not married) with a
     notice of the Member's right to elect to waive his right to receive
     distribution of his Vested Interest in the form of a Qualified Joint and
     Survivor Annuity. The notice shall contain an explanation, in nontechnical
     language, of (a) the terms and conditions of the election and its effect
     upon the Member's Retirement Benefit (in terms of dollars per annuity
     payment), (b) the requirement that the Member's spouse must consent to the
     election in accordance with Section 6.8(c), the Member's right to revoke
     the election in the manner prescribed in regulations promulgated by the
     Secretary of the Treasury and (d) a general description of the eligibility
     conditions and other features of the optional forms of benefit under the
     Plan and sufficient information to explain the relative values of these
     optional forms of benefits. For purposes of this Section 6.7, a Qualified
     Joint and Survivor Annuity for an unmarried Member shall be a single life
     annuity with no ancillary benefits.

6.8  Spousal Consent. A Member's waiver of a Qualified Joint and Survivor
     Annuity described in Section 6.6 shall be valid only if the Member's spouse
     executes a written

                                                                              35
<PAGE>

     consent to that election acknowledging the effect of the election and the
     consent is witnessed by a notary public or Plan official. The spouse's
     consent is not required if (a) the Member establishes that the spouse's
     consent cannot be obtained because the Member does not have a spouse, the
     Member's spouse cannot be located or for such other circumstances as may be
     provided in regulations promulgated by the Secretary of the Treasury, (b)
     the Member is legally separated from the spouse or (c) the Member has been
     abandoned by his spouse (within the meaning of local law) and the Member
     has a court order to that effect. A Member's waiver of a Qualified Joint
     and Survivor Annuity or Qualified Preretirement Survivor Annuity shall be
     effective only with respect to the spouse who consents to it as provided in
     this Section 6.8.

6.9  Minimum Distribution Requirements.

     (a)  Notwithstanding any provision of this Plan to the contrary, all
          distributions under the Plan shall be made in accordance with Section
          401(a)(9) of the Internal Revenue Code and the regulations promulgated
          by the Secretary of the Treasury thereunder.

     (b)  In the case of a Member who (1) remains an Employee after attainment
          of age 70-1/2 and (2) is receiving, while an Employee, distribution of
          benefits in the form of an annuity, the payments under the annuity
          shall be increased as of the first day of each calendar year to
          reflect any additional Retirement Benefit accrued with respect to the
          Plan Year ending immediately before the first day of that calendar
          year and shall be reduced in accordance with Section 6.5 to take into
          account previous distributions.

     (c)  If a Member dies after distribution of his benefit has commenced, the
          remaining portion, if any, of the Member's benefit shall be
          distributed to the Member's

                                                                              36
<PAGE>

          Beneficiary at least as rapidly as it would have been distributed
          under the method of distribution in effect on the day of the Member's
          death.

     (d)  If a Member's Vested Interest is distributed in the form of an annuity
          other than an annuity for the life of the Member or an annuity for the
          joint lives of the Member and the Member's spouse or in installments
          and the Member's Beneficiary is other than the Member's spouse, the
          distribution must satisfy, the minimum distribution incidental benefit
          requirements under applicable regulations.

6.10 Annuities. Any distribution of benefits in the form of an annuity may be
     made directly from the Trust or by the purchase of a nontransferable
     immediate or deferred payment annuity contract from an insurance company
     selected by the Committee. If an annuity is purchased and is other than an
     annuity for the life of the Member or an annuity for the life of his
     spouse, the actuarial value of the portion of an annuity payable to the
     Member during his life must be more than 50% of the actuarial value of the
     aggregate amount of benefits payable under the total annuity.

6.11 Release. Upon any distribution or payment, the Trustee, the Committee, any
     Affiliated Company or the Plan Administrator may require execution of a
     receipt and release, in form and substance satisfactory to it, of all
     claims under this Plan.

6.12 Incapacity. If, in the judgment of the Committee, any person is legally,
     physically or mentally incapable of personally receiving and executing a
     receipt for any distribution or payment due him under this Plan, the
     distribution or payment may be made to the person's guardian or other legal
     representative (or if none is known to the Company or the Committee, to any
     other person or institution who has custody of the person) and that
     distribution or payment shall constitute a full discharge of any obligation
     with respect to the amount paid or distributed.

                                                                              37
<PAGE>

6.13 Lost Member. In the event a Member or Beneficiary cannot be located after
     reasonable efforts to locate such Member or Beneficiary have been made by
     the Plan Administrator, the Member's or Beneficiary's Accrued Benefit shall
     be forfeited. Notwithstanding the foregoing, if such Member or Beneficiary
     is subsequently located, his Accrued Benefit shall be reinstated and
     distributed to him in accordance with the terms of Article 6.

6.14 Direct Rollovers. Notwithstanding any provision of the Plan to the
     contrary, a distributee may elect, at the time and in the manner prescribed
     by the Committee, to have any portion of an eligible rollover distribution
     paid directly to an eligible retirement plan specified by the distributee
     in a direct rollover.

     For purposes of this Section 6.14, the following terms shall have the
     meaning indicated:

     (a)  Eligible rollover distribution: An eligible rollover distribution is
          any distribution from the Plan of all or any portion of the balance to
          the credit of the distributee under the Plan, except that an eligible
          rollover distribution does not include:

          (i)   Any distribution that is one of a series of substantially equal
                periodic payments (not less frequently than annually) made for
                the life (or life expectancy) of the distributee or the joint
                lives (or joint life expectancies) of the distributee and the
                distributee's designated beneficiary, or for a specified period
                of 10 years or more;

          (ii)  any distribution to the extent such distribution is required
                under Section 401(a)(9) of the Code;

          (iii) any hardship distribution under Section 401(k)(2)(B)(i)(IV) of
                the Code;

          (iv)  the portion of any distribution that is not includable in gross
                income; and

          (v)   any distribution of $200 or less.

                                                                              38
<PAGE>

     (b)  Eligible retirement plan: An eligible retirement plan is an individual
          retirement account described in Section 408(a) of the Internal Revenue
          Code, an individual retirement annuity described in Section 408(b) of
          the Internal Revenue Code, an annuity plan described in Section 403(a)
          of the Internal Revenue Code, or a qualified trust described in
          Section 401(a) of the Internal Revenue Code, that accepts the
          distributee's eligible rollover distribution. However, in the case of
          an eligible rollover distribution attributable to a deceased Member
          paid to the surviving spouse of the Member, an eligible retirement
          plan is only an individual retirement account or individual retirement
          annuity. Notwithstanding anything in this Section 6.14 to the
          contrary, only one eligible retirement plan may be designated with
          respect to any single eligible rollover distribution.

     (c)  Distributee: A distributee includes a Member. In addition, the
          surviving spouse of a deceased Member and the former spouse of a
          Member who is an alternate payee under a qualified domestic relations
          order, as defined in Section 414(p) of the Internal Revenue Code, are
          distributees with regard to the interest of the surviving spouse or
          former spouse.

     (d)  Direct rollover: A direct rollover is a payment by the Plan to the
          eligible retirement plan specified by the distributee. Notwithstanding
          anything in this Section 6.14 to the contrary, only one direct
          rollover may be made with respect to any single eligible rollover
          distribution.

                                                                              39
<PAGE>

ARTICLE 7. PRERETIREMENT DEATH BENEFITS

7.1  Preretirement Death Benefit of Married Member. Subject to Article 4, upon
     the death of a married Member before his Annuity Starting Date, his spouse
     shall be entitled to receive a Preretirement Death Benefit Actuarially
     Equivalent in value to the sum of (a) his Cash Balance Benefit if that
     benefit is nonforfeitable under Article 5 and (b) in the case of a
     Pre-July, 1987 Member, the death benefit, if any, he is entitled to receive
     in accordance with Section 7.1 (b) contained in Schedule F to this Plan. In
     the case of a Member who had a Vested Interest and is survived by a spouse
     to whom he was married for at least one year at the time of his death, his
     spouse's Preretirement Death Benefit described above shall be at least as
     valuable as the Actuarial Equivalent of the spouse's Qualified
     Preretirement Survivor Annuity.

7.2  Preretirement Death Benefit of Unmarried Member. Subject to Article 4, upon
     the death of an unmarried Member before his Annuity Starting Date, his
     Beneficiary shall be entitled to receive a Preretirement Death Benefit
     actuarially equivalent in value to the sum of (a) his Cash Balance Benefit
     if that benefit is nonforfeitable under Article 5 and (b) in the case of a
     Pre-July, 1987 Member, the death benefit if any, he is entitled to receive
     in accordance with Section 7.1 (b) contained in Schedule F to this Plan.

7.3  Form of Preretirement Death Benefit. Subject to Section 7.4, the
     Preretirement Death Benefit of a Member shall be payable to his spouse or
     Beneficiary in the form of an annuity for his life, unless the Member's
     spouse or Beneficiary elects (during the period beginning on the day the
     Member dies and ending on the day distribution of benefits commences) to
     receive the Preretirement Death Benefit in another form described in
     Section 6.1.

                                                                              40
<PAGE>

7.4  Preretirement Death Benefit not in excess of $3500 ($5,000, effective
     January 1, 2002). If the Actuarial Equivalent lump sum value of a Member's
     Preretirement Death Benefit as of the Annuity Starting Date does not exceed
     $3,500 ($5,000, effective January 1, 2002), the method of distribution as
     to the Member's spouse or Beneficiary shall be as a single cash payment of
     the full amount payable.

7.5  Timing of Distribution - Annuity Starting Date. Distribution of a Member's
     Preretirement Death Benefit shall commence as of the Annuity Starting Date
     of the Member's Beneficiary. The Annuity Starting Date of the Member's
     Beneficiary shall be the earliest of:

     (a)  in the case of a Member who is not married, as soon as practicable
          after the Member's death,

     (b)  in the case of a Member who is married and the Actuarial Equivalent
          present value of his Preretirement Death Benefit does not exceed
          $3,500 ($5,000, effective January 1, 2002), as soon as practicable
          after the Member's death, or

     (c)  in the case of a Member who is married and the Actuarial Equivalent
          present value of his Preretirement Death Benefit exceeds $3,500
          ($5,000, effective January 1, 2002), the Member's Normal Retirement
          Date had the Member lived unless the Member's spouse elects under
          Section 7.6 to receive distribution prior to that time.
          Notwithstanding the previous sentence and subject to Section 7.7,
          distribution of a Beneficiary's Preretirement Death Benefit shall not
          commence before he files a claim for benefits with the Plan
          Administrator.

7.6  Election to Receive Preretirement Death Benefit Before Normal Retirement
     Date. In the case of a married Member who dies before his Normal Retirement
     Date with a Preretirement Death Benefit the Actuarial Equivalent present
     value of which exceeds

                                                                              41
<PAGE>

     $3,500 ($5,000, effective January 1, 2002), his spouse may elect to receive
     distribution of the Preretirement Death Benefit before the Member's Normal
     Retirement Date (had the Member lived), but distribution may not commence
     prior to the Member's Early Retirement Date (had the Member lived).

7.7  Required Distribution. If a Member's Preretirement Death Benefit is paid in
     the form of a single cash payment, the Member's entire Preretirement Death
     Benefit shall be distributed to his Beneficiary within five years of the
     Member's death or, if later, in the case of a Beneficiary who is the
     Member's spouse, the December 31 of the year the Member would have attained
     age 70-1/2. If a Member's Preretirement Death Benefit is distributed in the
     form of an annuity, distribution shall commence by the December 31 of the
     year after the year of the Member's death, or, if later, in the case of a
     Beneficiary who is the Member's spouse, the December 31 of the year the
     Member would have attained age 70-1/2. Such Preretirement Death Benefit
     must be distributed over a period not extending beyond the life expectancy
     of the Beneficiary.

                                                                              42
<PAGE>

ARTICLE 8. FUNDING

8.1  Funding Policy. The Plan's funding policy is to make contributions (a)
     sufficient to maintain for the Plan a non-negative funding standard account
     balance and (b) not in excess of the amount currently deductible in
     computing the Company's federal income tax.

8.2  Affiliated Company Contributions. Each Affiliated Company shall contribute
     to the Trust Fund with respect to Employees for which it has adopted this
     Plan under Section 16.1 periodic payments under the funding policy
     established under Section 8.1.

8.3  Timing of Employer Contributions. Contributions by any Employer for each
     Plan Year shall be paid to the Trustee no later than 2-1/2 months after the
     close of the Plan Year, or within an additional period not in excess of six
     months, as may be permitted under Sections 412(c)(10) and 412(d) of the
     Internal Revenue Code.

8.4  Irrevocability of Employer Contributions. Subject to Sections 8.5 and 15.3,
     any contribution made by an Employer shall be irrevocable and shall be held
     and disposed of by the Trustee solely in accordance with the provisions of
     the Plan and the Trust Agreement.

8.5  Exceptions to Irrevocability. Each contribution made by an Employer shall
     be deemed to be conditioned on the deductibility of the contribution under
     Section 404 of the Internal Revenue Code. If the deduction of all or part
     of any contribution is disallowed, it shall, to the extent disallowed, be
     repaid within one year after the date of disallowance. A contribution also
     will be repaid to an Employer, within one year after the date made, to the
     extent it was made in error because of a mistake in fact.

                                                                              43
<PAGE>

ARTICLE 9.   ADMINISTRATION OF PLAN

9.1  The Company. The Company shall be the Plan Administrator of the Plan and
     its sole named fiduciary under Section 402 of ERISA.

9.2  The Board. The Board shall appoint the members of the Committee and the
     Trustee and may appoint a chairman of the Committee, and shall be
     responsible for the establishment of the Trust and the amendment and
     termination of this Plan and the Trust Agreement.

9.3  The Committee. This Plan shall be administered by the Committee, which
     shall have the responsibilities, duties and powers delegated to it in this
     Plan and any responsibilities and duties under this Plan which are not
     specifically delegated to anyone else, including but not limited to the
     following powers:

     (a)  to require any person to furnish such information as it may request as
          a condition to receiving any benefit under the Plan;

     (b)  to make and enforce such rules and regulations and prescribe the use
          of such forms as it shall deem necessary for the efficient
          administration of the Plan;

     (c)  to decide on questions concerning the Plan and the eligibility of any
          Employee to participate in the Plan, in accordance with the provisions
          of the Plan;

     (d)  to compute or have computed the amount of benefits which shall be
          payable to any person in accordance with the provisions of the Plan.

9.4  The Trustee. The Trustee shall have exclusive authority and discretion to
     manage and control the Trust Fund except to the extent that authority to
     manage the assets held by the Trust is delegated by the Committee to an
     Investment Manager. The Trustee may designate agents or others to carry out
     certain of the administrative responsibilities in connection with
     management of the Trust.

                                                                              44
<PAGE>

9.5  Decisions and Actions of the Committee. The Committee from time to time may
     establish rules for the administration of this Plan. The Committee shall
     have sole discretion to make decisions and take any action with respect to
     any questions arising in connection with the Plan, including, but not
     limited to, the construction and interpretation of the Plan and the Trust
     Agreement and the determination of eligibility for participation and
     benefits under the Plan. Any such decision or action shall be final and
     binding upon all Members, Beneficiaries and Alternate Payees.

9.6  Membership of the Committee. The Committee shall consist of at least three
     members. Each person appointed a member of the Committee shall file his
     acceptance of the appointment with the secretary of the Company. Any member
     of the Committee may resign by delivering his written resignation to the
     secretary of the Company; the resignation shall become effective when
     received by the secretary (or at any other time agreed upon by the member
     and the Board). The Board may remove any member of the Committee at any
     time, with or without cause, upon notice to the member being removed.
     Notice of the appointment, resignation, or removal of a member of the
     Committee shall be given by the Board to the Trustee and to the members of
     the Committee.

9.7  Officers and Meetings of the Committee. The Committee shall elect a
     chairman (if a chairman has not been designated by the Board under Section
     9.2) and may elect a secretary and assistant secretary (either of whom need
     not be a member of the Committee) to keep its records and assist the
     Committee in performing any of its functions and shall hold meetings upon
     such notice and at such times and places as it may from time to time
     determine. Notice of a meeting need not be given to any member of the
     Committee who submits a signed waiver of notice before or after the meeting
     or who attends the meeting.

                                                                              45
<PAGE>

9.8  Procedures of the Committee. A majority of the total number of members of
     the Committee shall constitute a quorum for the transaction of business.
     The vote of a majority of the members of the Committee present at the time
     of a vote, if a quorum is present at the time, shall be required for action
     by the Committee. Resolutions may be adopted or other action taken without
     a meeting upon the written consent of all members of the Committee. Any
     person dealing with the Committee shall be entitled to rely upon a
     certificate of any member of the Committee, or its secretary, as to any act
     or determination of the Committee.

9.9  Subcommittees - Advisors and Agents of the Committee. The Committee may (a)
     appoint subcommittees with such powers as the Committee shall determine
     advisable, (b) authorize one or more of its members or an agent to execute
     any instrument, and (c) utilize the services of Employees and engage
     accountants, agents, clerks, legal counsel, medical advisers, and
     professional consultants (any of whom may also be serving an Employer or an
     Affiliated Company) to assist in the administration of this Plan or to
     render advice with regard to any responsibility under the Plan.

9.10 Actuary. The Company shall appoint an "enrolled actuary" as defined in
     Section 7701(a)(35) of the Internal Revenue Code to perform actuarial
     services with respect to the Plan.

9.11 Liability of the Committee. The members of the Committee and the Employers
     shall have no liability with respect to any action or omission made by them
     in good faith nor for any action made in reliance upon (a) the action of
     the Trustee, (b) the advice or opinion of any actuary, accountant, legal
     counsel, medical advisor or other professional consultant or (c) any
     resolutions of the Board certified by the secretary or assistant secretary
     of the Company. The Employer shall indemnify and hold harmless each

                                                                              46
<PAGE>

     member of the Committee against any and all claims, losses, damages,
     expenses, including legal fees and other expenses of litigation, and
     liability arising from any action or failure to act, except when the same
     is judicially determined to be due to the gross negligence or willful
     misconduct of such Member.

9.12 Expenses of the Plan; Fidelity Bond. The expenses of evaluating the
     investment performance of the Plan and of other consulting services to
     enable the Plan to achieve its investment objectives, to the extent
     permitted by ERISA, shall be paid from the Trust. All other reasonable
     administrative expenses relating to the Plan prior to termination of the
     Plan shall be paid from the Trust. If such expenses are not paid by the
     Trust, they shall be paid by the Employers. Brokerage commissions, transfer
     taxes and other charges or expenses in connection with the sale of
     securities shall be included in the cost of the securities. Any Employee
     who serves as a Trustee or member of the Committee shall receive no
     compensation for such service. The Company may require any Trustee or
     member of the Committee to furnish a fidelity bond satisfactory to the
     Company; the premium for any fidelity bond shall be an expense of the Plan,
     except to the extent paid by the Company.

9.13 Service in More than One Capacity. Any person or group of persons may serve
     the Plan in more than one capacity.

                                                                              47
<PAGE>

ARTICLE 10. MANAGEMENT OF TRUST FUND

10.1 The Trust Fund. The Trust Fund shall be held in trust by the Trustee
     appointed from time to time (before or after termination of the Plan) by
     the Board pursuant to the Trust Agreement. The Trustee shall have the
     powers specified in the Trust Agreement.

10.2 Exclusive Benefit. The Trust Fund shall be used in accordance with the
     provisions of this Plan and for the exclusive purpose of providing benefits
     for Members and their Beneficiaries and defraying reasonable expenses of
     the Plan and of the Trust.

10.3 Trustee's Reports. As soon as practicable after the end of each Plan Year
     the Trustee shall submit to the Board an appropriate report stating the net
     value of the Trust Fund as of the end of that Plan Year, and containing
     such other information relating to the Trust Fund as the Board from time to
     time may request.

10.4 Trust Agreement. The Trust Agreement shall be a part of this Plan and any
     rights or benefits under this Plan shall be subject to all the terms and
     provisions of the Trust Agreement.

                                                                              48
<PAGE>

ARTICLE 11.   BENEFIT CLAIMS PROCEDURE

11.1 Claim for Benefits. Any claim for benefits under this Plan shall be made in
     writing to the Committee. The Committee shall notify the Member,
     Beneficiary or Alternate Payee of its determination within 90 days after
     receipt of the claim (or within 180 days if special circumstances require
     an extension of time to review the claim, in which event the Member,
     Beneficiary or Alternate Payee will be so notified of the circumstances
     requiring an extension and the date by which a decision is expected). If
     the Member, Beneficiary or Alternate Payee has not provided sufficient
     information for the Committee to make a determination with respect to the
     claim, the Member, Beneficiary or Alternate Payee will be notified within
     45 days of the specific information needed to complete the claim, and will
     be provided with 180 days in which to provide the information. The Member,
     Beneficiary or Alternate Payee will be notified of the Committee's
     determination within 45 days of the earlier of the Committee's receipt of
     the requested information or the expiration of the 180-day period.

11.2 Denial of Claims. If the Committee decides that a Member, Beneficiary or
     Alternate Payee is not entitled to all or any part of the benefits claimed,
     the notice of denial shall be written in a manner calculated to be
     understood by the Member, Beneficiary or Alternate Payee and shall contain
     (a) the specific reason or reasons for denial of the claim, (b) a specific
     reference to the pertinent Plan provisions upon which the denial is based,
     (c) a description of any additional material or information necessary to
     perfect the claim together with an explanation of why such material or
     information is necessary, (d) an explanation of the claims review procedure
     and the time limits applicable to such procedures, and (e) effective for
     claims filed on or after January 1, 2002, a statement of

                                                                              49
<PAGE>

     the Member or Beneficiary's right to bring a civil action under Section
     502(a) of ERISA if the claim is denied following appeal.

11.3 Review of Claim. Within 60 days after the receipt by the Member,
     Beneficiary or Alternate Payee of notice of denial of a claim (or at such
     later time as may be reasonable in view of the nature of the benefit
     subject to claim and other circumstances), the Member, Beneficiary or
     Alternate Payee or his or her authorized personal representative may make a
     written request to the Committee for an appeal of the denial. Any such
     request may include any written comments, records and any other information
     relating to the claim and may include a request for "relevant" documents to
     be provided free of charge.

11.4 Decision After Review. Within 60 days after the receipt of a request for
     review under Section 11.3, the Committee shall deliver to the Member,
     Beneficiary or Alternate Payee a written decision with respect to the
     claim, except that if there are special circumstances (such as the need to
     hold a hearing) which require more time for processing, the 60-day period
     shall be extended to 180 days upon notice to the Member, Beneficiary or
     Alternate Payee to that effect. The decision shall be written in a manner
     calculated to be understood by the Member, Beneficiary or Alternate Payee
     and shall (a) include the specific reason or reasons for the decision, (b)
     contain a specific reference to the pertinent Plan provisions upon which
     the decision is based, (c) effective for claims filed on or after January
     1, 2002, a statement that a Member, Beneficiary or Alternate Payee may
     receive reasonable access to, and copies of, documents, records and other
     information relevant to the claim, and (d) effective for claims filed on or
     after January 1, 2002, a statement of the Member, Beneficiary or Alternate
     Payee's right to bring a civil action under Section 502(a) of ERISA if the
     claim is denied following appeal.

                                                                              50
<PAGE>

11.5 Relevant Documents. For purposes of Section 11.3, a document, record or
     other information shall be considered "relevant" to a Member's,
     Beneficiary's or Alternate Payee's claim filed on or after January 1, 2002
     if such document, record or other information (a) was relied upon in making
     the benefit determination; (b) was submitted, considered, or generated in
     the course of making the benefit determination, without regard to whether
     such document, record or other information was relied upon in making the
     benefit determination; or (c) demonstrates compliance with the
     administrative processes and safeguards required in making the benefit
     determination.

11.6 Final and Binding Decision. The Committee's decision on claims shall be
     final, binding and conclusive on all interested persons unless found by a
     court of competent jurisdiction to be arbitrary or capricious.

                                                                              51
<PAGE>

ARTICLE 12. NON-ALIENATION OF BENEFITS

12.1 Non-Alienation. Subject to Section 12.2 and 12.3, any benefits under or
     interests in this Plan shall not be assignable or subject to alienation,
     hypothecation, garnishment, attachment, execution, anticipation, sale,
     transfer, pledge or levy of any kind. Any action in violation of this
     provision shall be void.

12.2 Qualified Domestic Relations Order. Section 12.1 shall not apply to the
     creation, assignment or recognition of a right to the Retirement Benefit of
     a Member pursuant to a Qualified Domestic Relations Order. The Committee
     shall establish reasonable procedures for determining whether a domestic
     relations order is a Qualified Domestic Relations Order and for
     administering distributions under a Qualified Domestic Relations Order.

12.3 Certain Judgments or Settlements. Effective as of August 5, 1997, Section
     12.1 shall not apply to any offset of a Member's benefits provided under
     the Plan against an amount the Member is required to pay to the Plan for
     certain judgements and settlements as described in Section 401(a)(13)(C) of
     the Internal Revenue Code, subject to the spousal consent provisions
     described herein.

12.4 Ceasing of Payments Upon Bankruptcy or Attempted Assignment. If,
     notwithstanding Section 12.1, any Member or Beneficiary becomes bankrupt or
     attempts to assign, alienate or hypothecate his Retirement Benefit under
     this Plan, or if any Retirement Benefit shall be garnished, attached or
     levied upon, the Committee may determine that distribution or payment of
     his benefits shall cease and that the Trustee shall provide for the Member
     or Beneficiary, or the Member's spouse, children or other dependents (in

                                                                              52
<PAGE>

     such manner and proportion as the Committee considers appropriate), an
     amount substantially equal to the amount of his benefits.

                                                                              53
<PAGE>

ARTICLE 13. DESIGNATION OF BENEFICIARY

13.1  Designation of Beneficiary. Subject to Section 6.6 and Article 7, Members
      may designate a Beneficiary on the form and in the manner prescribed by
      the Committee. The Committee, in its discretion, may specify conditions or
      other provisions with respect to the designation of a Beneficiary. Subject
      to Section 6.6, any designation of a Beneficiary may be revoked by filing
      a later designation or revocation. In the absence of an effective
      designation of a Beneficiary by a Member or upon the death of all
      Beneficiaries, a Member's Retirement Benefit shall be paid to his estate.

13.2  Effective Date of Designation. Any designation or revocation of a
      designation of a Beneficiary shall become effective when actually received
      by the Committee but shall not affect any distribution previously made
      pursuant to a prior designation.

                                                                              54

<PAGE>

ARTICLE 14. AMENDMENT

14.1  Amendment. The Board may amend this Plan at any time but no amendment may
      (a) substantially increase the duties or liabilities of the Trustee
      without its prior written consent, or (b) have the effect of decreasing
      the accrued Retirement Benefit of anyone who is a Member on the date the
      amendment is adopted or becomes effective, whichever is later.

14.2  Amendment to Vesting Provisions. If the vesting provisions set forth in
      Article 5 are amended, any Member who, as of the effective date of the
      amendment had been credited with three or more Years of Service in the
      aggregate, may irrevocably elect to have his nonforfeitable interest
      computed without regard to the amendment. Notice of the amendment and the
      availability of the election shall be given to each such Member, and the
      election may be exercised by the Member by notice to the Committee within
      60 days after the later of (a) his receipt of the notice, (b) the day the
      amendment is adopted or (c) the effective date of the amendment.

14.3  Amendment to Maintain Qualified Status and Other Amendment Powers of
      Committee. Notwithstanding anything to the contrary in Section 14.1,
      effective on the execution date of this Plan restatement, the Committee is
      authorized, in its discretion, to make any modifications or amendments to
      the Plan, either retroactively or prospectively (to the extent not
      otherwise prohibited under the Code or ERISA) that it deems:

      (a)   Appropriate to establish or maintain the Plan and the Trust
            Agreement as a qualified plan and trust under Sections 401 and 501
            of the Internal Revenue Code, respectively; or

      (b)   Appropriate with respect to any Plan provision other than the Plan's
            eligibility, vesting and employer contribution provisions, the
            amendment of any such provisions

                                                                              55

<PAGE>

      being reserved exclusively to the Board (except to the extent such an
      amendment implements any contractual commitment entered into the
      Employer).

                                                                              56

<PAGE>

ARTICLE 15. TERMINATION; MERGER, CONSOLIDATION OR TRANSFER OF ASSETS

15.1  Full Vesting Upon Plan Termination. Upon the termination (including a
      partial termination) of this Plan, the Retirement Benefits as of the date
      of termination of the Members to which the termination relates shall be
      nonforfeitable (to the extent funded) without any formal action.

15.2  Payment of Benefits Upon Plan Termination. If this Plan is terminated,
      subject to Section 6.6, benefits to Members who are Employees and their
      Beneficiaries shall be paid in accordance with Section 4044 of ERISA and,
      if applicable, Section 414(1) of the Internal Revenue Code. The Committee
      shall determine (and notify the Trustee) whether distribution of benefits
      to each Member shall be made (a) as soon as practicable after termination
      or (b) in accordance with Article 6 as if the termination had not
      occurred.

15.3  Reversion of Excess Assets. If this Plan is terminated and the value of
      the Trust Fund exceeds the benefits allocable to Members and their
      Beneficiaries, the amount of the excess shall be repaid to the Employers
      in accordance with the directions of the Committee.

15.4  Committee and Trustee. If the Plan is terminated, the Committee shall
      continue to function and may fill any vacancies which may occur in its own
      membership (if the Board fails to do so) until the Trustee has rendered
      its final account and that account has been approved (in the manner
      provided in the Trust Agreement).

15.5  Merger, Consolidation or Transfer of Assets. Neither this Plan nor the
      Trust may be merged or consolidated with, nor may its assets or
      liabilities be transferred to, any other plan or trust, unless each Member
      would receive a benefit immediately after the merger, consolidation or
      transfer, if the Plan then terminated, which is equal to or greater than
      the

                                                                              57

<PAGE>

      benefit he would have been entitled to receive immediately before the
      merger, consolidation or transfer if this Plan had then been terminated.

                                                                              58

<PAGE>

ARTICLE 16. ADOPTION AND WITHDRAWAL FROM PLAN BY AFFILIATED COMPANY

16.1  Adoption by Affiliated Company. Any Affiliated Company, whether or not
      presently existing, may, with the approval of the Board, adopt this Plan
      by proper corporate action. By such adoption, the Affiliated Company
      automatically delegates to the Board and Committee the full authority to
      amend, alter, modify, interpret or administer the Plan as provided herein.

16.2  Withdrawal. Any Employer may at any time withdraw from the Plan upon
      giving the Board, the Committee and the Trustee at least 30 days notice of
      its intention to withdraw. The Board in its discretion may direct that any
      Employer withdraw from the Plan.

16.3  Segregation of Assets Upon Withdrawal. Upon the withdrawal of an Employer
      under Section 16.2, the Trustee shall in accordance with the directions of
      the Committee and Section 4044 of ERISA and, if applicable, Section 414(1)
      of the Internal Revenue Code, segregate a share of the assets in the Trust
      Fund attributable to the Retirement Benefits of Members who are Employees
      of that Employer.

16.4  Applicability of Withdrawal Provisions. The withdrawal provisions of this
      Article 16 shall be applicable only if the withdrawing Employer continues
      to cover its Members and eligible Employees in a comparable plan and trust
      qualified under Sections 401 and 501 of the Internal Revenue Code.
      Otherwise, the termination provisions of this Plan shall apply.

                                                                              59

<PAGE>

ARTICLE 17. TOP HEAVY PROVISIONS

17.1  Definition. The following definitions apply for purposes of this Article
      17:

      (a)   Average Compensation - a Member's average annual compensation (as
            defined in Treas. Reg. Section 1.415-2(d)(i)) during the five
            consecutive Plan Years in which he received the greatest
            compensation, taking into account only Plan Years (1) during which
            he was a Member, (2) with respect to which he was credited with a
            Vesting Year of Service and (3) ending no later than the last day of
            the last Plan Year during which the Plan was a Top Heavy Plan.

      (b)   Determination Date - with respect to any plan year of the Plan, a
            Defined Benefit Plan or a Defined Contribution Plan, the last day of
            the preceding plan year (or in the case of the first plan year of a
            plan the last day of that plan year).

      (c)   Key Employee - an Employee (or former Employee) who at any time
            during a Plan Year or any of the preceding four Plan Years is or was
            (1) an officer of his Employer with Compensation greater than 50% of
            the amount in effect under Section 415(b)(1)(A) of the Internal
            Revenue Code on the last day of the Plan Year, (2) one of the ten
            Employees with Compensation greater than the amount in effect under
            Section 415(c)(1)(A) of the Internal Revenue Code on the last day of
            the Plan Year and owning the largest percentage (in excess of one
            half of one percent) interest in value of any Affiliated Company,
            (3) a Five Percent Owner and (4) an owner of more than one percent
            of an Employer with Compensation in excess of $150,000. The
            determination of whether an Employee is a Key Employee shall be made
            in accordance with Section 416(i) of the Internal

                                                                              60

<PAGE>

            Revenue Code. The Beneficiary of a Key Employee shall be treated as
            a Key Employee.

      (d)   Permissive Aggregation Group of Plans - group of employee benefit
            plans including a Required Aggregation Group of Plans, and any other
            Defined Benefit Plans or Defined Contribution Plans which when
            considered as a group meets the requirements of Sections 401(a)(4)
            and 410 of the Internal Revenue Code.

      (e)   Required Aggregation Group of Plans - a group of employee benefit
            plans including each Defined Benefit Plan and Defined Contribution
            Plan (1) in which any Key Employee is or was a Member or (2) which
            enables a plan described in clause (1) to meet the requirements of
            Section 401(a)(4) or Section 410 of the Internal Revenue Code.

      (f)   Top Heavy Fraction - (1) with respect to the Plan, a fraction for a
            Plan Year the numerator of which is the aggregate of the accrued
            benefits under the Plan as of the applicable Determination Date of
            all Members who are Key Employees and the denominator of which is
            the aggregate of the accrued benefits under the Plan as of the
            applicable Determination Date of all Members or (2) with respect to
            a Required Aggregation Group of Plans or a Permissive Aggregation
            Group of Plans a fraction (A) the numerator of which is the sum of
            (i) the aggregate of the present values of the accrued benefits as
            of the applicable Determination Date of all Members who are Key
            Employees under all Defined Benefit Plans included in that group,
            and (ii) the aggregate account balances as of the applicable
            Determination Date in the accounts of all Members who are Key
            Employees under all Defined Contribution Plans included in the group
            and (B) the denominator of which is the sum of (i) the aggregate of
            the present values of the

                                                                              61

<PAGE>

            accrued benefits as of the applicable Determination Date of all
            Members under all Defined Benefit Plans included in the Group and
            (ii) the aggregate account balances as of the applicable
            Determination Date in the accounts of all Members under all Defined
            Contribution Plans included in the group. In computing a Top Heavy
            Fraction for a Plan Year the following rules shall apply: (I) the
            present value of accrued benefits as of a Determination Date under
            each Defined Benefit Plan and the aggregate account balances as of a
            Determination Date under each Defined Contribution Plan shall be
            increased by the aggregate distributions made from that plan to
            members during the five-year period ending on the Determination
            Date, (II) the accrued benefit under any Defined Benefit Plan and
            the account balance under any Defined Contribution Plan of a Member
            who has not performed services for an Employer at any time during
            the five-year period ending on the Determination Date shall be
            disregarded, (III) the present value of accrued benefits under a
            Defined Benefit Plan as of a Determination Date and the account
            balance under a Defined Contribution Plan shall be determined as of
            that plan's valuation date which occurs during the 12-month period
            ending on the Determination Date, (IV) in the case of a Required
            Aggregation Group of Plans or a Permissive Aggregation Group of
            Plans, the Determination Date of each Plan included in the group
            shall be the Determination Date that occurs in the same calendar
            year as the Determination Date of the Plan, (V) in the case of a
            Required Aggregation Group of Plans or a Permissive Aggregation
            Group of Plans, in determining accrued benefits the same actuarial
            assumptions shall be used for all Defined Benefit Plans and (VI) in
            the case of a Required Aggregation Group of Plans or Permissive
            Aggregation Group of Plans the present value of the accrued

                                                                              62

<PAGE>

            benefits under all Defined Benefit Plans of Members other than Key
            Employees shall be determined based upon the method used uniformly
            for accrual purposes for all Defined Benefit Plans but if there is
            no uniform method based upon the benefit accrual rate which does not
            exceed the slowest accrual rate permitted under the fractional
            accrual rule of Section 411(b)(1) of the Internal Revenue Code.

      (g)   Top Heavy Plan - the Plan for any Plan Year if the Top Heavy
            Fraction for that Plan Year exceeds 60% (a) for the Plan if the Plan
            is not part of a Required Aggregation Group of Plans, (b) for the
            Required Aggregation Group of Plans, if the Plan is part of a
            Required Aggregation Group of Plans, or (c) for the Permissive
            Aggregation Group of Plans, if the Plan is part of a Permissive
            Aggregation Group of Plans and a Required Aggregation Group of
            Plans.

17.2  When Top Heavy Provisions Apply. Notwithstanding any other provision of
      this Plan, the provisions of this Article 17 shall apply with respect to
      any Plan Year for which the Plan is a Top Heavy Plan.

17.3  Minimum Benefit. Subject to Article 4 and Section 3.2(b) contained in
      Schedule D to this Plan, upon the Retirement or Termination of Employment
      of a Member who is not a Key Employee, his Retirement Benefit shall be
      equal to the excess, if any, of (a) the greater of (1) the Retirement
      Benefit that otherwise would be determined for him under Article 3 if no
      effect were given to this Article 17 and (2) the product of 2% of his
      Average Compensation and the number of his Vesting Years of Service (not
      in excess of 10) commencing after 1983 and credited with respect to Plan
      Years in which the Plan or the Prior Plan is a Top Heavy Plan and he is a
      Member and (b) the Actuarial Equivalent of his aggregate benefit as of
      August 30, 1985 under the Prior Plan. For purposes of

                                                                              63

<PAGE>

      determining a Member's Retirement Benefit under this Section 17.3 it shall
      be assumed that payment of the Retirement Benefit shall be in the form of
      a straight life annuity, without ancillary benefits, commencing on his
      Normal Retirement Date.

17.4  Vesting. For any Plan Year the Plan is a Top Heavy Plan, the
      nonforfeitable portion of the Retirement Benefit of a Member, who is
      credited with at least one Hour of Service during that Plan Year under
      Article 5 shall be the greater of the percentage determined under Article
      5 and a percentage based on his Vesting Years of Service as follows:

<TABLE>
<CAPTION>
Number of Member's Vesting                    Nonforfeitable
     Years of Service                           Percentage
--------------------------                    --------------
<S>                                           <C>
       0                                             0%
       1                                             0
       2                                            20
       3                                            40
       4                                            60
       5                                            80
       6 or more                                   100
</TABLE>

17.5  Change From Top Heavy Vesting. If the Plan is a Top Heavy Plan for a Plan
      Year and ceases to be a Top Heavy Plan for the subsequent Plan Year, the
      change in the vesting provision under this Section 17.5 to the vesting
      provision under Article 5 shall for purposes of Section 14.2 be treated as
      an amendment of the vesting provisions of the Plan.

                                                                              64

<PAGE>

ARTICLE 18. MISCELLANEOUS

18.1  No Employment Rights. Nothing in this Plan shall be construed as a
      contract of employment between an Affiliated Company and any Employee, nor
      as a guarantee of any Employee to be continued in the employment of the
      Company, nor as a limitation on the right of an Affiliated Company to
      discharge any of its Employees with or without cause or with or without
      notice at any time at the option of the Company.

18.2  Discretion. Any discretionary acts under this Plan by an Employer or by
      the Committee shall be uniform and applicable to all persons similarly
      situated. No discretionary act shall be taken which constitutes prohibited
      discrimination under the provisions of Section 401(a) of the Internal
      Revenue Code.

18.3  Prior Service. The Committee may, in its discretion and under rules
      applicable to all Employees similarly situated, credit Employees with
      service prior to becoming Employees or Members for determining (a) whether
      an Employee is an Eligible Employee,(b) Vesting Years of Service or (c)
      Most Recent Date of Hire.

18.4  Merged Plan. The Company may for purposes of this Plan (a) designate any
      employee pension benefit plan (as defined in Section 3(2) of ERISA) as a
      Merged Plan and (b) give credit for participation in a Merged Plan to the
      extent the Board determines desirable. The Board shall notify the
      Committee of the designation of any merged Plan, and of credit to be given
      for participation in the Merged Plan.

18.5  No Interest in Trust Fund. Irrespective of the amount of a Member's Vested
      Interest, neither he nor his Beneficiary or any other person shall have
      any interest or right to any of the assets of the Trust Fund except as and
      to the extent expressly provided in this Plan.

18.6  Uniformed Services Employment and Reemployment Rights Act of 1994.
      Notwithstanding any other provision of this Plan to the contrary, benefits
      and service

                                                                              65

<PAGE>

      credit with respect to qualified military service will be provided in
      accordance with Section 414(u) of the Internal Revenue Code. This Section
      18.6 shall apply to all veterans who return to work on or after December
      12, 1994.

18.7  Governing Law. The provisions of this Plan shall be governed by and
      construed and administered in accordance with ERISA, the Internal Revenue
      Code, and, where not inconsistent, the laws of the State of Delaware.

18.8  Member Information. Each Member shall notify the Committee of (a) his
      mailing address and each change of mailing address, (b) his, his
      Beneficiary's and, if applicable, his spouse's date of birth and (c) his
      marital status and any change of his marital status. The information
      provided by the Member under this Section 18.8 shall be binding upon the
      Member and his Beneficiary for all purposes of the Plan.

18.9  Statement of Retirement Benefits. A statement of a Member's Retirement
      Benefit shall be furnished to him and his Employer annually by the
      Committee.

18.10 Construction. Any masculine personal pronoun shall be considered to mean
      also the corresponding female or neuter personal pronoun, as the context
      requires.

18.11 Severability. If any provision of this Plan is held illegal or invalid for
      any reason, the other provisions of this Plan shall not be affected.

18.12 Notices. Any notice, request, election, designation, revocation or other
      communication under this Plan shall be in writing and shall be considered
      given when delivered personally or mailed by registered mail, return
      receipt requested, except that any statement furnished pursuant to Section
      18.9 or any other communication to all Members shall be considered given
      when delivered personally or mailed by first class mail.

                                                                              66

<PAGE>

18.13 Headings.The headings in this Plan are for convenience of reference and
      shall not be given substantive effect.

Dated:

                                              THE HERTZ CORPORATION

                                              By __________________________

Attest:

                                                                              67

<PAGE>

SCHEDULE A - EFFECTIVE DATES

The provisions of this amended and restated Plan are effective as of January 1,
2000 except as otherwise provided below:

(a)   The following provisions and schedules are amended and restated effective
      as of January 1, 1997:

      (1)   Sections 6.9 (d) and (e) - Minimum Distribution Requirements.

      (2)   Section 1.14 and Schedule B.3 - Compensation.

      (3)   Section 3.10 - Suspension of Benefit Payments upon Reemployment or
            After Normal Retirement Date

      (4)   Section 9.11 - Liability of the Committee

      (5)   Section 14.3 - Amendment to Maintain Qualified Status and Other
            Amendment Powers of Committee

      (6)   Section 16.1 - Adoption by Affiliated Company

      (7)   Section 18.3 - Prior Service

      (8)   Schedule B.4 - Final Average Earnings

(b)   The following provisions are amended and restated effective as of August
      5, 1997:

      (1)   Section 12.1 and 12.3 - Non-Alienation of Benefits.

(c)   The following provision is amended and restated effective as of December
      12, 1994:

      (1)   Section 18.6 - Uniformed Services Employment and Reemployment Rights
            Act

(d)   The following provisions are amended and restated effective as of January
      1, 1999:

            (1)   Section 6.14 (Direct Rollover)

            (2)   Schedule D, Section 3.2(c) and (d).

                                                                              68
<PAGE>

SCHEDULE B - DEFINITIONS

The following definitions shall apply with respect to Pre-July, 1987 Members:

B.1   Accumulated Pre-July, 1987 Employee Contributions - the aggregate amount
      of a Pre-July, 1987 Member's contributions to the Plan made after August
      30, 1985 but before July 1, 1987, with interest at the rate specified
      below, compounded annually, on the amount of each of the Member's
      contributions for the period beginning on the January 1 immediately
      following the day the contribution was made and ending on the first day of
      the month in which the Member's Termination of Employment occurs. The
      applicable interest rates shall be as follows: (a) for the period
      beginning with August 30, 1985 and ending on December 1987, 6 %, (b) for
      the period beginning with January 1, 1988, and ending on the date the
      determination is made, 120% of the Federal mid-term rate (as in effect
      under Section 1274 of the Internal Revenue Code for the first month of the
      Plan Year) and (c) for the period beginning with the determination date
      and ending on the Member's Normal Retirement Date, the rate which would be
      used under Section 417(e)(3) of the Internal Revenue Code (as of the
      distribution date).

B.2   Contributory - Annuity Benefit - the monthly benefit that accrues to a
      Pre-July, 1987 Member under Section 3.2(a)(2) contained in Schedule D to
      this Plan.

B.3   Earnings - all cash remuneration paid or made available for any Plan Year
      (or if the context requires for a payroll period) by an Employer to an
      Employee for his services, as salary or wages and including bonuses,
      commissions, pay at premium rates (holiday, overtime or other), vacation
      pay (other than accrued vacation paid upon Termination of Employment or
      Retirement), the amount of his before tax savings contributions under The
      Hertz Corporation Income Savings Plan, his pay conversion credits under
      The Hertz Custom Benefit Program and payments made under salary and wage
      continuation plans

                                                                              69

<PAGE>

      and other similar plans providing for payments to Employees while absent
      from work, but excluding (a) any payments on account of long-term
      disability, (b) severance payments, layoff allowances and layoff extension
      benefits, (c) except as otherwise provided by the Committee in its
      discretion, prizes, awards and amounts paid (whether or not under an
      employee benefit plan) to reimburse Employees' expenses, such as business
      and travel allowances, meal allowances, living allowances, relocation
      allowances and foreign service living and educational allowances, (d) any
      amounts attributable to stock options, (e) any other amounts paid for that
      Plan Year on account of the Employee under this Plan or under any other
      employee pension benefit plan (as defined in Section 3(2) of ERISA), (f)
      any incentive payments not related to the Employee's primary job
      responsibilities and (g) any other amounts which are not includible in the
      Employee's income for federal income tax purposes. In the case of an
      Employee who is compensated on the basis of sales commissions, Earnings
      shall mean the greater of the amount of his drawing account for the Plan
      Year or the amount of his commissions for that Plan Year. For Plan Years
      beginning after 1988 and before 1994, Earnings shall not include amounts
      paid or made available in excess of $200,000 and for Plan Years after
      1993, in excess of $150,000, provided, however, that such dollar
      limitations on recognized Earnings for any Plan Year shall be the adjusted
      amount prescribed by the Secretary of the Treasury under Section
      401(a)(17) of the Internal Revenue Code.

      For purposes of determining the Earnings of a Pre-July, 1987 Member for
      periods of leave of absence before July 1, 1987 for (1) service in the
      armed forces of the United States or any other nation designated by an
      Employer, (2) civilian service for the United States government or (3) any
      other reason approved by an Employer, the following special rules shall
      apply:

                                                                              70

<PAGE>

      (x)   In the case of a Pre-July, 1987 Member who made contributions to the
            Plan or the Prior Plan during such leave of absence, his Earnings
            for the period of his leave of absence shall be deemed to be equal
            to either (A) if he was not covered by a collective bargaining
            agreement during the leave of absence, his basic annual earnings
            rate (excluding bonuses, overtime, incentive compensation or other
            types of special remuneration) immediately before his leave of
            absence or (B) if he was covered by a collective bargaining
            agreement during the leave of absence, the basic annual earnings
            rate then in effect applicable to his job classification under that
            agreement.

      (y)   In the case of a Pre-July, 1987 Member who did not make
            contributions to the Plan or the Prior Plan during his leave of
            absence, but made such contributions retroactively upon his return
            to active employment from a leave of absence, his Earnings for the
            period of the leave of absence shall be deemed to be either (A) if
            he was not covered by a collective bargaining agreement during the
            leave of absence, the lesser of (i) the average of his basic annual
            earnings rate (excluding bonuses, overtime, incentive compensation
            or other types of special remuneration) during the period of his
            leave of absence, taking into account all general wage or salary
            increases granted to employees in like classification, and (ii) his
            basic annual earnings rate (exclusive of bonus, incentive
            compensation, compensation for overtime, or any other special
            remuneration) upon return to active employment, or (B) if he was
            covered by a collective bargaining agreement during the leave of
            absence, the basic annual earnings rate then in effect applicable to
            his job classification under that agreement.

                                                                              71

<PAGE>

B.4   Final Average Earnings - a Pre-July, 1987 Member's average annual Earnings
      for the five consecutive Plan Years while a Member (including Plan Years
      commencing after July 1, 1987) in which he received the greatest amount of
      annual Earnings within the ten most recent Plan Years. For purposes of
      calculating a Members' Final Average Earnings only: (a) if a Member's
      Earnings represent a period of service (other than a Plan Year that is the
      last Plan Year in which a Member is credited with an Hour of Service)
      which is less than a full Plan Year, such Earnings shall be annualized,
      and (b) Plan Years in which a Member is not credited with annual Earnings
      shall not be included.

      If a Pre-July, 1987 Member's Earnings exceeded $150,000 for any Plan Year
      before 1994, his Final Average Earnings shall be the greatest of (a) his
      Final Average Earnings as of December 31, 1988, determined in accordance
      with the Plan as then in effect, (b) his Final Average Earnings as of
      December 31, 1993, determined in accordance with the Plan as then in
      effect, and (c) his Final Average Earnings determined in accordance with
      the preceding sentence, disregarding any Earnings in excess of $150,000
      for any Plan Year before 1994.

B.5   Final Average Earnings Benefit - the monthly benefit which accrues to a
      Pre-July, 1987 Member under Section 3.2(a)(1) contained in Schedule D to
      this Plan.

B.6   Year of Credited Service - a period of 12 calendar months (which need not
      be consecutive) during which a Pre-July, 1987 Member made required
      contributions to the Plan or the Prior Plan. A period of less than 12 such
      calendar months shall be credited as a partial Year of Credited Service
      equal to a fraction the numerator of which is the number of such months
      and the denominator of which is 12. Except as otherwise provided in
      paragraph (e) of this definition, for purposes of determining Years of

                                                                              72

<PAGE>

      Credited Service, months beginning after June 30, 1987 shall be excluded.
      The following special rules apply for purposes of determining Years of
      Credited Service:

      (a)   In the case of a Pre-July, 1987 Member who made contributions to the
            Plan or the Prior Plan while on leave of absence the period of the
            leave of absence shall not be included in determining Years of
            Credited Service, unless he returns directly to active employment
            immediately following his leave of absence or dies during his leave
            of absence.

      (b)   Additional Years of Credited Service shall be credited to each
            Member who was an Employee on either November 30, 1976 or December
            31, 1980 and was required to satisfy an eligibility requirement of
            more than one year, provided he became a Member by contributing to
            the Prior Plan within six months of either: (1) the first day he was
            eligible to do so, (2) the day he was most recently reemployed by an
            Employer (or an employer maintaining the Prior Plan) or (3) the day
            he returned to active employment with an Employer (or an employer
            maintaining the Prior Plan) from a layoff or approved leave of
            absence without pay. An Employee described in the previous sentence
            shall be credited with the following: (A) in the case of a Pre-July,
            1987 Member who was an Employee on November 30, 1976, if he had to
            satisfy an eligibility requirement of three years, he shall be
            credited with an additional Year of Credited Service and if he had
            to satisfy an eligibility requirement of at least two years but less
            than three years, he shall be credited with an additional month for
            purposes of determining Years of Credited Service for each month in
            excess of two years before he first became eligible to become a
            Member and (B) in the case of a Pre-July, 1987 Member who was an
            Employee on December 31, 1980 (but first became an Employee after

                                                                              73

<PAGE>

            November 30, 1976) if he had to satisfy an eligibility requirement
            of at least two years, he shall be credited with an additional Year
            of Credited Service and if he had to satisfy an eligibility
            requirement of at least one year but less than two years, he shall
            be credited with an additional month for purposes of determining
            Years of Credited Service for each month in excess of one year
            before he first became eligible to become a Member.

      (c)   For purposes of determining Years of Credited Service, any months
            during which a Pre-July, 1987 Member was employed outside the limits
            of the United States, the Commonwealth of Puerto Rico or the
            Territory of Guam shall be excluded, unless the Member was
            originally employed in one of these locations and was sent by his
            Employer to another location with the intention that he return to
            one of these locations.

      (d)   Solely for determining Years of Credited Service for purposes of
            Section 3.2(a)(1) contained in Schedule D to this Plan (Final
            Average Earnings Benefit) and paragraph c contained in Schedule C to
            this Plan (grandfathered lump sum benefit), Years of Credited
            Service shall include credited service after December 31, 1966 under
            Part I of The Hertz Retirement Program for Salaried Employees and
            The Hertz Hourly-Rate Employees' Pension Plan not otherwise
            constituting credited service under the Prior Plan, other than
            periods during which the Member would not have been eligible to
            become a member of the Prior Plan had he been an employee of RCA
            Corporation.

      (e)   Solely for determining Years of Credited Service for purposes of
            Sections 3.2(c) contained in Schedule D to this Pan (supplemental
            early retirement benefit), 3.2(d) contained in Schedule D to this
            Plan (optional supplemental early

                                                                              74

<PAGE>

            retirement benefit), 3.2(e) contained in Schedule D to this Plan
            (guaranteed early retirement benefit), 7.1 (b) contained in Schedule
            F to this Plan (spouse's Pre-Retirement Death Benefit), (1) Years of
            Credited Service shall include Vesting Years of Service credited to
            a Pre-July, 1987 Member after 1987, (2) each full month for the
            period from July 1, 1987 through December 31, 1987 during which a
            Pre-July, 1987 Member is employed by the Company shall be taken into
            account in determining Years of Credited Service and (3) Years of
            Credited Service shall include periods of credited service under
            Part I and Part II of The Hertz Retirement Program for Salaried
            Employees and The Hertz Hourly-Rate Employees' Pension Plan not
            otherwise constituting credited service under the Prior Plan, other
            than periods during which the Member would not have been eligible to
            become a Member of this Plan had he been an employee of the Company.

      (f)   Subject to the following sentence, Years of Credited Service of a
            Rehired Employee who received a lump sum distribution of his entire
            nonforfeitable interest in his Pre-July 1987 Benefit upon his
            Termination of Employment shall not include any Years of Credited
            Service prior to his original Termination of Employment. In case of
            an Employee who (i) either resumes covered employment under the Plan
            before January 1, 1992 or does not have a nonforfeitable interest in
            the portion of his Pre-July 1987 Benefit attributable to Employer
            contributions under Section 5.1 and (ii) repays the Plan the amount
            of his distribution of Accumulated Pre-July 1987 Employee
            Contributions as provided in Section 3.8(b) or (c) contained in
            Schedule D to this Plan, his Years

                                                                              75

<PAGE>

            of Credited Service before his initial Termination of Employment
            will not be disregarded.

                                                                              76

<PAGE>

SCHEDULE C - ACTUARIAL ASSUMPTIONS

a.    Mortality - the UP - 1984 Table.

b.    Interest - the immediate annuity interest rate used by the Pension Benefit
      Guaranty Corporation on the first day of the calendar year in which
      distribution of benefits commences for purposes of determining a lump sum
      distribution on plan termination.

c.    Special rule for distribution in the form of a single cash payment of the
      full amount payable to Members who were Employees on February 28, 1983 -
      In the case of a Member who was employed on February 28, 1983 who receives
      his Retirement Benefit in the form of a single cash distribution of the
      full amount payable, the amount of that single cash payment shall be
      actuarially equivalent in value to the greater of (1) the Retirement
      Benefit he is entitled to receive based on the provisions of the Plan in
      effect on the day of his Retirement or Termination of Employment and (2)
      the excess, if any, of (i) the sum of (A) the Final Average Earnings
      Benefit he would be entitled to receive determined based on the provisions
      of the Prior Plan in effect on February 28, 1983 ("Pre-March 1, 1983 Final
      Average Earnings Benefit") and (B) any benefit payable to him (determined
      at the time of his actual Retirement or Termination of Employment based on
      the actuarial assumptions in effect under the Prior Plan as of February
      28, 1983) under Section 3.2(c) or (d) contained in Schedule D to this Plan
      over (ii) his aggregate benefit as of August 30, 1985 under the Prior
      Plan. A Member's Pre-March 1, 1983 Final Average Earnings Benefit shall be
      computed (a) based on the actuarial assumptions in effect under the Prior
      Plan on February 28, 1983 (7 % interest and 1951 Group Annuity Mortality
      Table) and (b) assuming that for purposes of determining Final Average
      Earnings, his Earnings for a Plan Year never exceeded the greatest annual
      Earnings he

                                                                              77

<PAGE>

      received under the Prior Plan for any calendar year from 1978 through 1982
      (and for the Plan Year of the Member's Termination of Employment or
      Retirement, his Earnings do not exceed the Earnings described above
      multiplied by a fraction the numerator of which is the number of his full
      months of employment during that Plan Year and the denominator of which is
      12). A Member's Pre-March 1, 1983 Final Average Earnings Benefit shall be
      determined based on his Final Average Earnings (as determined under this
      paragraph) and the number of his Years of Credited Service, as follows:

<TABLE>
<CAPTION>
           Monthly Pre-March 1,                         1983 Final Average
              Final Average                            Earnings Benefit for
            Earnings Per Year                      Each Year of Credited Service
     ------------------------------                -----------------------------
     <S>                                           <C>
     Less than $12,360                                        $12.00
     $12,360 but less than 12,580                            12.25
      12,580 but less than 12,800                            12.50
      12,800 but less than 13,020                            12.75
      13,020 but less than 13,240                            13.00
      13,240 but less than 13,460                            13.25
      13,460 but less than 13,680                            13.50
      13,680 but less than 13,900                            13.75
      13,900 but less than 14,120                            14.00
      14,120 but less than 14,340                            14.25
      14,340 but less than 14,560                            14.50
      14,560 but less than 14,780                            14.75
      14,780 but less than 15,000                            15.00
      15,000 but less than 15,220                            15.25
      15,220 but less than 15,440                            15.50
      15,440 but less than 15,660                            15.75
      15,660 and over                                   16.00 plus 1/12
                                                       of 1.5 % of Final
                                                       Average Earnings
                                                          over $15,660
</TABLE>

      A Member's Pre-March 1, 1983 Final Average Earnings Benefit shall be
      offset by any benefit he is entitled to receive attributable to employer
      contributions made after December 31, 1966 under Part I and Part II of The
      Hertz Retirement Program for Salaried Employees or The Hertz Hourly-Rate
      Employees' Pension Plan.

                                                                              78

<PAGE>

d.    Calculation of Single Sum Distribution Amount - The amount payable will be
      equal to the greater of: (1) the actuarial present value of the Retirement
      Benefit (as defined in Article 1.43) using the factors described in (a)
      and (b) above, and (2) the single sum distribution amount calculated using
      the Applicable Mortality Table and using the Applicable Interest Rate, as
      defined in (g) below.

e.    Calculation of Actuarial Equivalence for Article 4- For purposes of
      Section 4.2(b)(1), the Retirement Benefit shall be adjusted so that it is
      the Actuarial Equivalent of an Annual Benefit by using the interest and
      mortality assumptions specified in (a) and (b), or (d) above, for the
      particular form of benefit payable, or by using the Applicable 415 Rate
      and the Applicable Mortality Table, whichever assumptions produce the
      greater benefit. For purposes of Section 4.2(b)(2), the Actuarial
      Equivalent of an Annual Benefit equal to the dollar limitation set forth
      in Section 4.2(a)(1) beginning at age 62 shall be calculated by adjusting
      such limitation using the interest and mortality assumptions specified in
      (a) and (b), or (d) above, for the particular form of benefit payable, or
      5% and the Applicable Mortality Table, whichever assumptions provide a
      lower limit. For purposes of Section 4.2(b)(2), the Actuarial Equivalent
      of an Annual Benefit equal to the dollar limitation set forth in Section
      4.2(a)(1) beginning at the Member's social security retirement age shall
      be calculated by adjusting such limitation using the interest and
      mortality assumptions specified in (a) and (b), or (d) above, for the
      particular form of benefit payable, or 5% and the Applicable Mortality
      Table, whichever assumptions provide a lower limit.

                                                                              79

<PAGE>

f.    Calculation of Actuarial Equivalence for Schedule D, Section 3.2(f) and
      Schedule F, Section 7.1(b)(3) - Actuarial Equivalence shall be determined
      using the Applicable Interest Rate and the Applicable Mortality Table, as
      defined in (g), below.

g.    For purposes of this Schedule C, the following terms are defined as
      follows:

      "Applicable Interest Rate" means the annual interest rate on 30-year
      Treasury securities for the November 1 preceding the Plan Year that
      contains the distribution date.

      "Applicable 415 Rate" means the Applicable Interest Rate for lump sums and
      5% per annum for annuity forms of distribution.

      "Applicable Mortality Table" means the mortality table described in
      Section 417(e)(3)(A)(ii)(I) of the Internal Revenue Code.

                                                                              80

<PAGE>

SCHEDULE D. SECTIONS 3.2 AND 3.8

3.2   A Pre-July, 1987 Member's Pre-July, 1987 Retirement Benefit shall be
      determined under Section 3.2(a) contained in this Schedule D, reduced in
      accordance with Section 3.2(b) to take account of distribution prior to
      Normal Retirement Date, and in the case of certain Pre-July, 1987 Members
      who begin receiving distribution of their benefits prior to their Normal
      Retirement, supplemented under Sections 3.2(c) and (d) contained in this
      Schedule D. In addition, a minimum Pre-July, 1987 Benefit is provided
      under Section 3.2(e) for certain Pre-July, 1987 Members. The Pre-July,
      1987 Retirement Benefit of a Pre-July, 1987 Member who does not satisfy
      the vesting requirements of Section 5.1 shall be determined under Section
      3.2(f) contained in this Schedule D. Finally, the amount of the actual
      benefit payments made to a Pre-July, 1987 Member (or his Beneficiary)
      shall in no event be less than his Accumulated Pre-July, 1987
      Contributions as described in Section 3.2(g) contained in this Schedule D.

      (a)   Subject to Section 3.2(b) contained in this Schedule D, the
            Pre-July, 1987 Retirement Benefit of a Pre-July, 1987 Member shall
            be equal to the excess, if any, of (x) the greater of his Final
            Average Earnings Benefit set forth in Section 3.2(a)(1) contained in
            this Schedule D and his Contributory Annuity Benefit set forth in
            Section 3.2(a)(2) contained in this Schedule D over (y) his
            aggregate benefit as of August 30, 1985 under the Prior Plan.

            (1)   A Pre-July, 1987 Member's Final Average Earnings Benefit shall
                  be based on his Final Average Earnings and the number of his
                  Years of Credited Service as follows:

                                                                              81

<PAGE>

<TABLE>
<CAPTION>
                                                          Final Average
                                                        Earnings Benefit
                                                          for Each Year
        Final Average Earnings                         of Credited Service
      ---------------------------                      -------------------
      <S>                                              <C>
         Less than $14,120                                  $14.00
         $14,120 but less than 14,340                        14.25
          14,340 but less than 14,560                        14.50
          14,560 but less than 14,780                        14.75
          14,780 but less than 15,000                        15.00
          15,000 but less than 15,220                        15.25
          15,220 but less than 15,440                        15.50
          15,440 but less than 15,660                        15.75
          15,660 and over                             $16.00 plus 1/12 of
                                                        1.6 % of Final
                                                       Average Earnings
                                                         over $15,660
</TABLE>

                  A Pre-July, 1987 Member's Final Average Earnings Benefit shall
                  be offset by any benefit he is entitled to receive
                  attributable to employer contributions made after December 31,
                  1966 under Part I and Part II of The Hertz Retirement Program
                  for Salaried Employees or The Hertz Hourly-Rate Employees'
                  Pension Plan.

            (2)   A Pre-July, 1987 Member who was an Employee before March 1,
                  1980 shall have a Contributory Annuity Benefit equal to the
                  sum of:

                  (A)   the aggregate amount accrued for each of his payroll
                        periods, whether weekly, biweekly, semi-monthly or
                        monthly, beginning after August 29, 1985 and ending
                        before July 1, 1987 and during which he made required
                        contributions to the Plan, where the amount accrued for
                        each such period is equal to the sum of (i) 1.36% of his
                        weekly Earnings up to $173.08, biweekly Earnings up to
                        $346.15, semi-monthly earnings up to $375.00 or monthly

                                                                              82

<PAGE>

                        earnings up to $750.00 and (ii) 2 % of his weekly,
                        biweekly, semimonthly or monthly Earnings in excess of
                        those amounts, and

                  (B)   the Contributory Annuity Benefit he accrued under the
                        Prior Plan as of August 30, 1985.

            For purposes of this Section 3.2(a) it shall be assumed that
            distribution of a Member's Pre-July, 1987 Retirement Benefit will be
            made in the form of a straight life annuity, with a 60-month period
            certain feature and no other ancillary benefits, commencing on his
            Normal Retirement Date.

      (b)   A Pre-July, 1987 Member who elects under Section 6.4 contained in
            Schedule E to this Plan, to have distribution of his Retirement
            Benefit commence before his Normal Retirement Date shall have his
            Pre-July, 1987 Retirement Benefit reduced by 1/3 of 1 % for each
            month that distribution precedes his 65th birthday (or, if a lesser
            reduction, the reduction based on the actuarial assumptions set
            forth in Schedule C), except that such a Pre-July, 1987 Member who
            has been credited with at least 10 Vesting Years of Service and
            receives distribution of his Retirement Benefit immediately upon
            Termination of Employment shall have his Pre-July, 1987 Retirement
            Benefit reduced based on his age when distribution commences as
            follows:

<TABLE>
<CAPTION>
         Age at Distribution                          Percent Reduction
         -------------------                          -----------------
         <S>                                          <C>
               60 or over                                       0%
               59                                              13
               58                                              20
               57                                              27
               56                                              34
               55                                              40
</TABLE>

                                                                              83

<PAGE>

            In the case of a Pre-July, 1987 Member who commences to receive
            distribution of his benefit prior to his attainment of age 55, his
            Pre-July, 1987 Retirement Benefit shall be reduced based on the
            actuarial assumptions set forth in Schedule C to this Plan.

      (c)   A Pre-July, 1987 Member who (1) has a Termination of Employment
            after he attains age 55 but before he attains age 65, (2) is
            credited with at least 5 Years of Credited Service, (3) elects to
            begin receiving distribution of his Retirement Benefit immediately
            upon Termination of Employment and (4) does not elect to receive the
            optional supplemental early retirement benefit under Section 3.2(d)
            contained in this Schedule D shall, in addition to the benefit he is
            entitled to receive under Section 3.2(a) contained in this Schedule
            D, receive a supplementary early retirement benefit payable monthly
            during the period beginning on the day distribution of his benefit
            commences under Section 6.3 and ending on the last day of the month
            beginning immediately after the month in which he attains age 65
            (or, if earlier, dies). The amount of a Pre-July, 1987 Member's
            supplemental early retirement benefit depends on the number of his
            Years of Credited Service, as follows:

<TABLE>
<CAPTION>
                    Years of                               Supplemental Early
                Credited Service                           Retirement Benefit
              -------------------                          ------------------
              <S>                                          <C>
              5 but less than 15                                   $ 0
              15 but less than 20                                  $55
              20 but less than 25                                   60
              25 but less than 30                                   65
              30 but less than 35                                   70
              35 or more                                            75
</TABLE>

            The amount of a Pre-July, 1987 Member's supplemental early
            retirement benefit under this Section 3.2(c) shall be reduced based
            on his age when distribution of

                                                                              84

<PAGE>

            his supplemental early retirement benefit begins by the applicable
            percentage set forth in Section 3.2(b) contained in this Schedule D
            and shall be further reduced by the Actuarial Equivalent of the
            amount of the supplemental early retirement benefit, if any, he is
            entitled to receive under the Prior Plan.

            The supplemental early retirement benefit under this Section 3.2(c)
            is treated as an early retirement benefit that is protected under
            Section 411(d)(6) of the Code (other than for purposes of Sections
            401(a)(11) and 417 of the Code).

            The supplemental early retirement benefit shall be payable in
            conjunction with the Qualified Joint and Survivor Annuity, and shall
            be paid after the Member's death on the same terms as the Qualified
            Joint and Survivor Annuity, but in no event for a period longer than
            the period for which the supplemental early retirement benefit would
            have been paid to the Member if the Member had not died.

      (d)   A Pre-July, 1987 Member who (1) has a Termination of Employment
            after he attains age 55 but before he attains age 62, (2) elects to
            receive distribution of his Retirement Benefit immediately upon
            Termination of Employment, (3) has been credited with at least 5
            Years of Credited Service and (4) in the case of a Pre-July, 1987
            Member who is entitled to receive a supplemental early retirement
            benefit under Section 3.2(c) contained in this Schedule D elects
            instead (in the manner prescribed by the Committee) to receive the
            benefit under this Section 3.2(d) shall receive an optional
            supplemental early retirement benefit payable monthly during the
            period beginning on the day distribution of his benefits commences
            under Section 6.3 and ending on the last day of the month beginning
            immediately after the month in which he attains age 62 (or, if
            earlier, dies). The amount of a Pre-

                                                                              85

<PAGE>

            July, 1987 Member's optional supplemental benefit depends on the
            number of his Years of Credited Service, as follows:

<TABLE>
<CAPTION>
                    Years of                              Optional Supplemental
                Credited Service                        Early Retirement Benefit
              -------------------                       ------------------------
              <S>                                       <C>
              5 but less than 10                                  $ 60
              10 but less than 15                                 $100
              15 but less than 20                                  140
              20 but less than 25                                  180
              25 but less than 30                                  220
                   30 or more                                      260
</TABLE>

            The amount of a Pre-July, 1987 Member's optional supplemental early
            retirement benefit under this Section 3.2(d) shall be reduced based
            on his age when distribution of the optional supplemental early
            retirement benefit begins by the applicable percentage set forth in
            Section 3.2(b) contained in this Schedule D and shall be further
            reduced by the Actuarial Equivalent amount of the optional
            supplemental early retirement benefit, if any, he is entitled to
            receive under the Prior Plan.

            The optional supplemental early retirement benefit under this
            Section 3.2(d) is treated as an early retirement benefit that is
            protected under Section 411(d)(6) of the Code (other than for
            purposes of Sections 401(a)(11) and 417 of the Code). The optional
            supplemental early retirement benefit shall be payable in
            conjunction with the Qualified Joint and Survivor Annuity, and shall
            be paid after the Member's death on the same terms as the Qualified
            Joint and Survivor Annuity, but in no event for a period longer than
            the period for which the optional supplemental early retirement
            benefit would have been paid to the Member if the Member had not
            died.

                                                                              86

<PAGE>

      (e)   A Pre-July, 1987 Member who (a) has a Termination of Employment
            after he attains age 60 but before he is first eligible to receive
            federal old age and survivor benefits under the Social Security Act,
            (b) is credited with at least 30 Years of Credited Service and (c)
            begins receiving distribution of his Retirement Benefit immediately
            upon Termination of Employment shall be entitled to receive a
            guaranteed monthly early retirement benefit equal to the sum of (x)
            $600 and (y) the aggregate amount of his Pre-July, 1987 Retirement
            Benefit and any supplemental early retirement benefit under Section
            3.2(c) contained in this Schedule D, or optional supplemental early
            retirement benefit under Section 3.2(d) contained in this Schedule
            D, he is entitled to receive. The guaranteed monthly early
            retirement benefit shall be payable monthly during the period
            beginning on the day distribution of the Member's benefit commences
            under Section 6.3 and ending on the first day of the month beginning
            immediately after the day he is first eligible to receive old age
            and survivor benefits under the Social Security Act or, if earlier,
            his death. The amount of a Pre-July, 1987 Member's guaranteed early
            retirement benefit under this Section 3.2(e) shall be reduced by the
            amount, if any, of his guaranteed early retirement benefit under the
            Prior Plan. For purposes of this Section 3.2(e), it shall be assumed
            that the Member receives distribution of his Pre-July, 1987
            Retirement Benefit in the form of a straight life annuity, with a
            60-month period certain feature and no other ancillary benefits,
            commencing on his Normal Retirement Date.

      (f)   In the case of a Pre-July, 1987 Member who has a Termination of
            Employment before he is credited with at least five Vesting Years of
            Service, he shall be entitled to receive a Pre-July, 1987 Retirement
            Benefit which is Actuarially

                                                                              87

<PAGE>

            Equivalent in value to the amount of his Accumulated Pre-July, 1987
            Employee Contributions.

      (g)   If at the time all payments cease under the method of distribution
            elected by the Member under Section 6.1, the amount of the actual
            benefit payments made to the Member and his Beneficiary attributable
            to the Member's Pre-July, 1987 Benefit is less than the amount of
            his Accumulated Pre-July, 1987 Employee Contributions (determined as
            of the day distribution of his benefit commenced), his Beneficiary
            shall be paid the shortfall in a single payment.

3.8   Retirement Benefit of Rehired Employee.

      The following additional provisions apply to a Rehired Employee who was a
      Pre-July, 1987 Member:

      (a)   Subject to Section 3.8(b) contained in this Schedule D, the amount
            of the Pre-July, 1987 Benefit of a Member who receives distribution
            of his entire nonforfeitable interest in his Pre-July 1987 Benefit
            (or, if greater, his entire nonforfeitable interest in Accumulated
            Pre-July, 1987 Employee Contributions) upon a Termination of
            Employment or Retirement, shall be determined based only on his
            Years of Credited Service accrued on or after the date the Member is
            rehired.

      (b)   This Section 3.8(b) applies only to a Pre-July, 1987 Member who (1)
            receives a distribution of his entire nonforfeitable interest in his
            Pre-July, 1987 Benefit as described in Section 3.8(a) contained in
            this Schedule D, (2) resumes covered employment under the Plan and
            (3) either does not have a nonforfeitable interest in the portion of
            his Pre-July 1987 Benefit attributable to Employer contributions
            under Section 5.1 or is rehired before January 1, 1992. In the case
            of such a Pre-

                                                                              88

<PAGE>

            July, 1987 Member, his Pre-July, 1987 Benefit attributable to
            service credited before his original Termination of Employment or
            Retirement shall not be disregarded if the Member repays to the Plan
            the full amount of his distribution plus interest. The Member's
            repayment must occur no later than the earlier of (a) the fifth
            anniversary of the Member's reemployment and (b) the day the Member
            incurs five consecutive Breaks in Service.

      (c)   A Member described in Section 3.8(b) contained in this-Schedule D,
            may also retroactively repay to the Plan, in accordance with the
            time period specified in paragraph (b), employee contributions for
            any period which he is on an approved leave of absence. If the
            Member does so and returns to employment immediately after the
            expiration of that leave he will receive credited service for the
            period of the leave.

                                                                              89

<PAGE>

SCHEDULE E - SECTION 6.4

6.4(a) A Pre-July, 1987 Member (i) who has a Termination of Employment before
       his Early Retirement Date, (ii) who is credited with at least five
       Vesting Years of Service and (iii) whose Retirement Benefit exceeds
       $3,500 ($5,000 effective January 1, 2002), may elect to receive a
       distribution of the amount of his Accumulated Pre-July, 1987 Employee
       Contribution as soon as practicable after his Termination of Employment.
       Subject to Section 6.6, the distribution of the Accumulated Pre-July,
       1987 Employee Contributions of a Member who makes an election under the
       first sentence of this paragraph (a) shall be made in the form described
       in Sections 6.1(b) or 6.1(c), as applicable, commencing as of the first
       day of the month following his Termination of Employment, unless the
       Member elects a single cash payment of the full amount payable. The Cash
       Balance Benefit and the portion of the Pre-July, 1987 Benefit
       attributable to Employer contributions of a Member who makes the election
       under the first sentence of this paragraph (a) shall be distributed in
       such form and at such time as determined under Article 6 (or Article 7 if
       he dies before the distribution of his benefits is to commence under
       Section 6.3).

(b)    A Pre-July, 1987 Member who has a Termination of Employment before his
       Early Retirement Date and who is not credited with at least five Vesting
       Years of Service may elect to receive distribution of the amount of his
       Accumulated Pre-July, 1987 Employee Contributions as soon as practicable
       after his Termination of Employment. This distribution shall be made
       either in (1) a single cash payment of the full amount payable or (2) an
       annuity for the Member's life (if greater than $10 per month), subject to
       Section 6.5 if the amount of the Member's Accumulated Pre-July, 1987
       Employee Contributions exceeds $3,500 ($5,000 effective January 1, 2002).

                                                                              90

<PAGE>

SCHEDULE F. SECTION 7.1 (b)

7.1(b)(1) Subject to Section 7.1(b)(4), if a Pre-July 1, 1987 Member who is
          married (i) dies while employed by an Employer after he attains age
          55, (ii) has not begun to receive distribution of his benefits in
          accordance with Section 6.3 and (iii) either (A) has been credited
          with at least five Years of Credited Service or 10 Vesting Years of
          Service or (B) the sum of his age and the number of his Years of
          Credited Service equals at least 70, his spouse shall receive a
          monthly benefit equal to one-half the monthly Pre-July, 1987 Benefit
          (determined without regard to Section 3.2(b) contained in Schedule D
          to this Plan) the Member would have received if he had a Retirement on
          the day before his death and received distribution of his benefit in
          the form of an annuity for his life with a 60-month period certain
          feature. If the Member's spouse is at least five years younger than
          the Member, the monthly benefit payable to the spouse shall be reduced
          actuarially (in accordance with the assumptions set forth in Schedule
          C to this Plan) to take account of the difference in age. If the
          Preretirement Death Benefit described in either Section 7.1(b)(2) or
          7.1(b)(3) of this Schedule F is greater in actuarial value than the
          Preretirement Death Benefit under this Section 7.1(b)(1), the Member's
          spouse shall receive the greater of those benefits instead of the
          benefit under this Section 7.1(b)(1).

      (2) Subject to Section 7.1(b)(4) contained in this Schedule F, if a
          Pre-July, 1987 Member (a) dies after he has been credited with at
          least five Vesting Years of Service but before the time distribution
          of his benefits is to commence in accordance with Section 6.3, (b) has
          been married to his spouse for at least one year at the time of his
          death and (c) his spouse is not entitled to receive a benefit under
          Section 7.1(b)(1) contained in this Schedule F, his spouse shall be
          entitled to receive a

                                                                              91

<PAGE>

          Qualified Preretirement Survivor Annuity based on the Members
          Pre-July, 1987 Retirement Benefit described in Schedule D to this
          Plan.

      (3) If a Pre-July, 1987 Member dies before distribution of his benefits
          commences and either (i) he is married and his spouse is not entitled
          to receive a benefit under Section 7.1(b)(1) or (b)(2) contained in
          this Schedule F or (ii) he is not married, his spouse (or his
          Beneficiary, if he is not married) shall be entitled to receive a
          death benefit which is Actuarially Equivalent in value to the amount
          of his Accumulated Pre-July, 1987 Employee Contributions.

      (4) If the surviving spouse of a Pre-July, 1987 Member who is receiving a
          Pre-Retirement Death Benefit under Section 7.1(b)(1) or (b)(2)
          contained in this Schedule F dies before the amount actually
          distributed equals the amount of the Member's Accumulated Pre-July,
          1987 Employee Contributions (determined as of the date of the Member's
          death), the shortfall shall be paid to the person designated (in the
          manner prescribed by the Committee) by the Member's spouse. In absence
          of such a designation, the shortfall shall be paid to the estate of
          the Member's spouse.

      (5) The surviving spouse of a Pre-July, 1987 Member may withdraw the
          Member's Accumulated Pre-July 1987 Employee Contributions at any time.

                                                                              92

<PAGE>

SCHEDULE G. SALE OF STOCK OF HCM CLAIM MANAGEMENT CORPORATION TO THE EMPLOYEE
            CARE CORPORATION

Notwithstanding any other provision of the Plan to the contrary, the following
provisions shall govern the Retirement Benefit of those Members of the Plan who
are employed by HCM Claim Management Corporation ("HCM") on the closing date of
the sale of all of the issued and outstanding capital stock of HCM Claim
Management Corporation by The Hertz Corporation (the "Seller") to The Employee
Care Corporation (the "Purchaser") (the "Effective Date"), the date on which HCM
ceases to be an Affiliated Company (as that term is defined in Section 1.3 of
the Plan) by reason of such sale, and who continue to be employed by HCM on the
day immediately following the Effective Date (or, with respect to such Members
who are designated by the Seller as "totally disabled" on the Effective Date,
return to HCM within six months after the Effective Date). Such Members shall be
known as "HCM Plan Members".

      1.    All HCM Plan Members will become fully (100%) vested in their
            Retirement Benefit as of the Effective Date.

      2.    Any HCM Plan Members shall be considered for purposes of this Plan
            to have incurred a Termination of Employment (as that term is
            defined in Section 1.44 of the Plan) as of the Effective Date, and
            the Retirement Benefit of such HCM Plan Member shall be subject to
            the distribution provisions of Article 6 of the Plan.

                                                                              93
<PAGE>

                      THE HERTZ CORPORATION ACCOUNT BALANCE
                          DEFINED BENEFIT PENSION PLAN

The Hertz Corporation Account Balance Defined Benefit Pension Plan, as amended
and restated effective as of January 1, 2000, (the "Plan") is hereby amended,
effective as January 1, 2002, as follows:

1.    Section 1.14 of the Plan is amended by adding the following paragraphs at
      the end thereof to read as follows:

            "The annual compensation of each Member taken into account in
            determining benefit accruals in any Plan Year beginning after
            December 31, 2001, shall not exceed $200,000. Annual compensation
            means compensation during the Plan Year or such other 12-consecutive
            month period over which compensation is determined under the Plan
            (the determination period). The $200,000 limit on annual
            compensation in the preceding sentence shall be adjusted for
            cost-of-living increases in accordance with Section 401(a)(17) of
            the Code. The cost-of-living adjustment in effect for a calendar
            year applies to the annual compensation for the determination period
            that begins with or within such calendar year."

2.    Section 4.2(a) of the Plan is amended by substituting the figure
      "$160,000" for "$90,000".

3.    Section 4.2(b)(2) of the Plan is amended to read as follows:

            "the dollar limitation set forth in Section 4.2(a)(1) shall be
            adjusted as follows: if distribution of a Member's Retirement
            Benefit begins prior to age 62, the limitation shall be adjusted so
            that it equals an Annual Benefit beginning at the time distribution
            of a Member's Retirement Benefit begins, which is the Actuarial
            Equivalent of an Annual Benefit equal to the dollar limitation set
            forth in Section 4.2(a)(1) beginning at age 62. If distribution of a
            Member's Retirement Benefit begins after age 65, the limitation
            shall be increased so that it equals an Annual Benefit beginning at
            the time distribution of a Member's Retirement Benefit begins, which
            is the Actuarial Equivalent of an Annual Benefit equal to the dollar
            limitation set forth on Section 4.2(a)(1) beginning at the date the
            Member attains age 65."

4.    Section 6.14(a) of the Plan is amended by adding the following sentence at
      the end thereof, to read as follows:

            "A portion of a distribution shall not fail to be an eligible
            rollover distribution merely because the portion consists of
            after-tax contributions which are not

<PAGE>

            includible in gross income. However, such portion may only be paid
            to an individual retirement account or annuity described in Section
            408(a) or (b) of the Code, or to a qualified defined contribution
            plan described in Section 401(a) or 403(a) of the Code that agrees
            to separately account for amounts so transferred, including
            separately accounting for the portion of a distribution which is
            includible in gross income and the portion of a distribution which
            is not so includible."

5.    Section 6.14(b) of the Plan is amended by adding the following sentences
      at the end thereof, to read as follows:

            "With respect to distributions made after December 31, 2001, an
            'eligible retirement plan' shall also mean an annuity contract
            described in Section 403(b) of the Code and an eligible retirement
            plan under Section 457(b) of the Code which is maintained by a
            state, political subdivision of a state, or any agency or
            instrumentality of a state or a political subdivision of a state and
            which agrees to separately account for amounts transferred into such
            plan from this Plan. The definition of 'eligible retirement plan'
            shall also apply in the case of a distribution to a surviving
            spouse, or to a spouse or former spouse who is the alternate payee
            under a qualified domestic relations order, as defined in Section
            414(p) of the Code."

6.    Section 17.1(c) of the Plan is amended by adding the following paragraph
      at the end thereof, to read as follows:

            "Notwithstanding the foregoing, for Plan Years beginning after
            December 31, 2001, "Key Employee" means any Employee or former
            Employee of the Employer (and the beneficiaries of such Employee or
            former Employee) who at any time during a Plan Year or the preceding
            four Plan Years was (i) an officer of the Employer having an annual
            compensation from the Employer greater than $130,000, as adjusted
            under Section 416(i)(1) of the Code for Plan Years beginning after
            December 31, 2002, (ii) a more than 5 percent owner of the Employer
            or (iii) a more than 1 percent owner of the Employer who has an
            annual compensation of more than $150,000."

7.    Clause (I) of the second sentence of Section 17.1(f) of the Plan is
      amended to read as follows:

            "(I) the present value of accrued benefits as of a Determination
            Date under each Defined Benefit Plan and the aggregate Account
            Balances as of a Determination Date under each Defined Contribution
            Plan shall be increased by the aggregate distributions made from
            that plan to Members during the five-year period ending on the
            Determination Date; provided that, effective for Plan Years
            beginning after December 31, 2001, the term "one year period" shall
            be substituted for the term "five-year period" with respect to
            distributions upon separation from service, death or disability."

<PAGE>

8.    Clause (II) of the second sentence of Section 17.1(f) of the Plan is
      amended to read as follows:

            "(II) the accrued benefit under any Defined Benefit Plan and the
            account balance under any Defined Contribution Plan of a Member who
            has not performed services for an Employer at any time during the
            five-year period ending on the Determination Date shall be
            disregarded; provided that effective for Plan Years beginning after
            December 31, 2001, the term "one year period" shall be substituted
            for the term "five year period."

9.    Section 17.3 of the Plan is amended by adding the following sentence at
      the end thereof to read as follows:

            "Effective for Plan Years beginning after December 31, 2001, any
            year of service with a Employer shall be disregarded for purposes of
            determining the minimum accrued benefit hereunder to the extent such
            service occurs during a Plan Year where the Plan benefits no Key
            Employee or former Key Employee."

10.   Paragraph B.3 of Schedule B to the Plan is amended by adding the following
      paragraphs after the first paragraph thereof, to read as follows:

            "The annual compensation of each Member taken into account in
            determining benefit accruals in any Plan Year beginning after
            December 31, 2001, shall not exceed $200,000. Annual compensation
            means compensation during the Plan Year or such other 12-consecutive
            month period over which compensation is determined under the Plan
            (the determination period). The $200,000 limit on annual
            compensation in the preceding sentence shall be adjusted for
            cost-of-living increases in accordance with Section 401(a)(17) of
            the Code. The cost-of-living adjustment in effect for a calendar
            year applies to the annual compensation for the determination period
            that begins with or within such calendar year.

            In determining benefit accruals in Plan Years beginning after
            December 31, 2001, the annual compensation limit in the preceding
            paragraph for determination periods beginning before January 1, 2002
            shall be $200,000."<PAGE>

                                                                   EXHIBIT 10.13

                              HERTZ (U.K.) LIMITED
                                1972 PENSION PLAN

                               SUPPLEMENTAL TRUST
                                 DEED AND RULES

                            EFFECTIVE 6TH APRIL 1998

<PAGE>

                                 DEFINITIVE DEED

                             ARRANGEMENT OF SECTIONS

<TABLE>
<CAPTION>
PART                                                                             COLOR               PAGE
------------                                                                     ------            ---------
<S>                <C>                                                           <C>               <C>
   DEED                                                                          White                 1 - 6
   APPENDIX                                                                                           7 - 10
   THE RULES                                                                                        11 - 139
   PART I          - CONSTRUCTION, INTERPRETATION AND DEFINITIONS                Grey                11 - 30
   PART II         - JOINING AND LEAVING THE PLAN                                Cream               31 - 36
   PART III        - CALCULATION AND PAYMENT OF CONTRIBUTIONS                    Pink                37 - 40
   PART IV         - CALCULATION AND PAYMENT OF BENEFITS                         Blue                41 - 76
   PART V          - MISCELLANEOUS PROVISIONS RELATING TO
                     MEMBERSHIP, CONTRIBUTIONS AND BENEFITS                      Green              77  - 92
   PART VI         - ADMINISTRATION AND MANAGEMENT OF THE PLAN                   Yellow             93 - 102
   PART VII        - SUSPENSION OR TERMINATION OF THE PLAN                       Orange            103 - 112
   PART VIII       - STATUTORY PROVISIONS                                        Mauve             113 - 138
   PART IX         - ALTERATION TO PLAN                                                                  139
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         CLAUSE OR
  PART & TITLE            RULE NO.                              SUBJECT                           COLOUR   PAGE NO.
----------------     ------------------    --------------------------------------------------     ------   --------
<S>                  <C>                   <C>                                                    <C>      <C>
RULES
I                                                                                                 Grey
CONSTRUCTION,        1.                    TRUST DEED AND RULES
INTERPRETATION
& DEFINITIONS                                                                                                 11
                        (A)                -        construction                                              11
                        (B)                -        interpretation                                            11
                        (C)                -        right to information                                      11
                     2.                    DEFINITIONS                                                        12
II                                                                                                Cream
JOINING AND          3. (A)                -        Joining the Plan                                          31
LEAVING THE PLAN           (1)             full membership - Staff                                            31
                           (2)             -        Executive                                                 31
                           (3)             -        Senior Executive                                          32
                           (4)             Changes between Category                                           32
                           (5)             Life Assurance membership                                          33
                        (B)                -        Treatment of benefits for earlier periods
                                                    of Membership                                             33
                        (C)                -        Leaving the Plan                                          34
                           (1)             full membership                                                    34
                           (2)             Life Assurance membership                                          35
                        (D)                -        Employment with an overseas employer                      35
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         CLAUSE OR
  PART & TITLE            RULE NO.                              SUBJECT                           COLOUR   PAGE NO.
----------------     ------------------    --------------------------------------------------     ------   --------
<S>                  <C>                   <C>                                                    <C>      <C>
III                                                                                                 Pink
CALCULATION AND      4.                    MEMBER'S CONTRIBUTIONS
PAYMENT OF
CONTRIBUTIONS                                                                                                 37
                        (A)                -        ordinary                                                  37
                        (B)                -        voluntary                                                 37
                           (1)             limits and payment conditions                                      37
                           (2)             period of payment                                                  37
                           (3)             benefits from Voluntary Contributions                              38
                           (4) (a)         segregated Voluntary Contributions                                 38
                               (b)         segregation conditions                                             38
                               (c)         investment                                                         39
                               (d)         expenses                                                           39
                               (e)         methods of securing benefits                                       39
                           (5)             surplus voluntary contributions                                    40
                        (C)                -        collection                                                40
                        (D)                -        unpaid                                                    40
                        (E)                -        maximum yearly contribution                               40
                     5.                    EMPLOYER'S CONTRIBUTIONS                                           40
IV                                                                                                  Blue
CALCULATION AND      6.                    NORMAL RETIREMENT PENSION                                          41
PAYMENT OF           7.                    EARLY RETIREMENT PENSION                                           43
BENEFITS
                     8.                    LATE RETIREMENT PENSION                                            45
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         CLAUSE OR
  PART & TITLE            RULE NO.                              SUBJECT                           COLOUR   PAGE NO.
----------------     ------------------    --------------------------------------------------     ------   --------
<S>                  <C>                   <C>                                                    <C>      <C>
                     9.                    BENEFITS ON LEAVING THE PLAN                                       46
                         (A)               -        Deferred pension                                          46
                         (B)               -        Alternative date for payment for Deferred
                                                    Pension                                                   48
                         (C)               -        refund of pre-April 1975 contributions
                                                    and calculation of residual Deferred
                                                    Pension                                                   49
                         (D)               -        refund of all contributions                               50
                     10.                   OPTIONS ON LEAVING THE PLAN                                        50
                         (A)               -        statutory option to buy-out or transfer                   50
                         (B)               -        non-statutory transfer to another scheme
                                                    instead of Deferred Pension or refund of
                                                    contributions                                             53
                         (C)               -        non-statutory buy-out option                              53
                         (D)               -        Buy-out Option at Trustees' Discretion                    54
                     11.                   LUMP SUM INSTEAD OF PENSION                                        55
                         (A)               -        normal basis                                              55
                         (B)               -        Member in serious Ill-health                              58
                         (C)               -        Trivial Pensions                                          59
                     12.                   LUMP SUM DEATH BENEFITS                                            59
                         (A)               -        lump sum on death in Service before
                                                    Normal Retiring Date                                      59
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         CLAUSE OR
  PART & TITLE            RULE NO.                                SUBJECT                         COLOUR   PAGE NO.
----------------     ------------------    -----------------------------------------------------  ------   --------
<S>                  <C>                   <C>                                                    <C>      <C>
                         (B)               -        lump sum on death after leaving the Plan
                                                    with a deferred pension but before it
                                                    commences                                                 60
                         (C)               -        lump sum on death in Service on or after
                                                    the Normal Retiring Date                                  60
                         (D)               -        lump sum on death of a pensioner                          60
                     13.                   PAYMENT OF LUMP SUM DEATH BENEFIT                                  61
                         (A)               -        benefits payable to personal representatives              61
                         (B)               -        benefits payable under discretionary trusts               61
                     14. (A)               SPOUSE'S PENSION                                                   63
                            (1)            -        death while a Member before Normal Retiring
                                                    Date                                                      64
                            (2)            -        death in Service after Normal Retiring Date               64
                            (3)            -        death after leaving Plan but before pension
                                                    begins                                                    64
                            (4)            -        death after pension begins                                65
                            (5)            -        death after deferred pension begins                       65
                            (6)            additional provisions relating to Spouse's Pension                 66
                         (B)               -        Child's Pension                                           67
                         (C)               -        Dependant's Pension                                       69
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                          CLAUSE OR
  PART & TITLE             RULE NO.                             SUBJECT                           COLOUR   PAGE NO.
----------------     ------------------    --------------------------------------------------     ------   --------
<S>                  <C>                   <C>                                                    <C>      <C>
                     15.                   SURRENDER OF A MEMBER'S PENSION TO PROVIDE
                                           DEPENDANT'S PENSION                                                69
                     16. (A)               DISCRETIONARY BENEFITS                                             69
                            (1)            augmentations                                                      69
                            (2)            persons not otherwise entitled to benefit under the
                                           Plan                                                               70
                         (B)               -        membership on special terms                               70
                         (C)               -        periodic review of pensions                               71
                         (D)               -        benefits affected by statutory earnings
                                                    cap                                                       71
                     17.                   PAYMENT OF PENSIONS                                                72
                     18.                   DEDUCTION OF TAX                                                   72
                     19.                   CONDITIONS FOR PAYMENT OF BENEFITS                                 72
                     20.                   PAYMENTS TO WIDOW, WIDOWER OR
                                           OTHER NEXT OF KIN                                                  72
                     21.                   CLAIMANTS UNABLE TO ACT                                            73
                     22.                   POLYGAMOUS                                                         74
                     23.                   NON-ASSIGNABILITY OF BENEFITS                                      74
                     24.                   SECURING BENEFITS OUTSIDE THE
                                           PLAN BY PURCHASE OF POLICIES                                       75
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         CLAUSE OR
  PART & TITLE            RULE NO.                              SUBJECT                           COLOUR   PAGE NO.
----------------     ------------------    --------------------------------------------------     ------   --------
<S>                  <C>                   <C>                                                    <C>      <C>
V                                                                                                 Green
MISCELLANEOUS        25.                   TEMPORARY ABSENCE FROM WORK
PROVISIONS
RELATING TO                                                                                                   77
MEMBERSHIP,          26.                   MATERNITY ABSENCE                                                  78
CONTRIBUTIONS            (A)               -        application                                               78
AND BENEFITS             (B)               -        refunds of contributions                                  78
                         (C)               -        rights before 23.6.94                                     78
                            (1)            calculation of Pensionable Service                                 79
                            (2)            effect of pay during absence                                       79
                            (3)            death benefits                                                     79
                         (D)               -        rights on and after 23.6.94                               79
                            (1)            calculation of Pensionable Service                                 79
                            (2)            benefits for Pensionable Service                                   79
                            (3)            death benefits                                                     79
                            (4)            Member's Ordinary Contributions                                    80
                     27.                   TRANSFERS FROM ANOTHER SCHEME                                      80
                         (A)               Expressions used                                                   80
                         (B)               -        acceptance                                                81
                         (C)               -        information to be obtained by Trustees                    81
                         (D)               -        benefits                                                  81
                         (E)               -        revaluation of GMP                                        82
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         CLAUSE OR
  PART & TITLE            RULE NO.                               SUBJECT                          COLOUR   PAGE NO.
----------------     ------------------    ----------------------------------------------------   ------   --------
<S>                  <C>                   <C>                                                    <C>      <C>
                         (F)               -        transfers including protected rights                      83
                         (G)               -        no offsetting of GMP revaluation                          83
                         (H)               -        transferees not becoming contracted-out                   84
                     28.                   TRANSFERS TO ANOTHER SCHEME                                        84
                         (A)               -        expressions used                                          84
                         (B)               -        general                                                   84
                         (C)               -        information on receiving scheme                           85
                         (D)               -        benefits to be provided by receiving scheme               86
                         (E)               -        transfer of GMPs                                          86
                            (1)            to salary related contracted-out schemes                           86
                            (2)            to money purchase contracted-out schemes                           87
                            (3)            to appropriate personal pension scheme                             87
                            (4)            to overseas schemes                                                87
                         (F)               -        transfers without Members consent                         88
                         (G)               -        interaction with Statutory Transfer Option                88
                         (H)               -        effect of transfer on Plan benefits                       88
                     29.                   RIGHTS OF EMPLOYERS RELATING TO EMPLOYEES                          88
                     30.                   CLAIMS AGAINST TRUSTEES OR EMPLOYERS                               89
                     31.                   LIEN ON BENEFITS                                                   89
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         CLAUSE OR
  PART & TITLE            RULE NO.                              SUBJECT                           COLOUR   PAGE NO.
----------------     ------------------    --------------------------------------------------     ------   --------
<S>                  <C>                   <C>                                                    <C>      <C>
                     32. (A)               INLAND REVENUE LIMITATIONS                                         90
                         (B)               -        Inland Revenue undertakings                               90
                         (C)               -        optional limits                                           90
VI                                                                                                Yellow
ADMINISTRATION       33.                   RESPONSIBILITY FOR ADMINISTRATION AND MANAGEMENT                   93
AND MANAGEMENT
OF THE PLAN          34.                   APPOINTMENT AND REMOVAL OF TRUSTEES                                93
                     35.                   TRUSTEES' GENERAL POWERS OF DETERMINATION                          94
                     36.                   EXERCISE OF TRUSTEES' POWERS                                       94
                         (A)               -        individual trustees                                       94
                         (B)               -        corporate trustee                                         95
                         (C)               -        trustees decisions                                        95
                     37.                   TRUSTEES LIABILITY                                                 95
                     38.                   EXERCISE OF EMPLOYER'S POWERS                                      96
                     39.                   INVESTMENT OF FUND                                                 96
                         (A)               -        acquisition and disposal of investments                   96
                         (B)               -        permitted investments                                     96
                         (C)               -        additional powers : land and buildings                    97
                         (D)               -        additional powers : personal property                     98
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         CLAUSE OR
  PART & TITLE            RULE NO.                              SUBJECT                            COLOUR   PAGE NO.
----------------     ------------------    --------------------------------------------------      ------   --------
<S>                  <C>                   <C>                                                     <C>      <C>
                         (E)               -        indemnity by trustees in connection with
                                                    investments                                                98
                         (F)               -        nominee to hold investments                                98
                         (G)               -        employer related investments                               98
                     40.                   POWER TO RAISE OR BORROW MONEY                                      98
                     41.                   DONATIONS AND BEQUESTS                                              99
                     42.                   PLAN ACCOUNTS                                                       99
                     43.                   AUDIT OF ACCOUNTS                                                   99
                     44.                   ACTUARIAL INVESTIGATION AND STATEMENT                               99
                     45.                   ASSISTANCE TO TRUSTEES                                              99
                         (A)               -        appointment and removal of officers                        99
                         (B)               -        actuarial advice                                           99
                     46.                   DELEGATION OF TRUSTEES' POWERS                                     100
                     47.                   PLAN EXPENSES                                                      100
                     48.                   ADMISSION OF ASSOCIATED EMPLOYERS                                  100
                     49.                   ARBITRATION                                                        101
VII                                                                                                Orange
SUSPENSION OR        50.                   SUSPENSION OF A PARTICIPATING EMPLOYER'S CONTRIBUTIONS             103
TERMINATION OF
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                       CLAUSE OR
  PART & TITLE          RULE NO.                                   SUBJECT                               COLOUR   PAGE NO.
----------------     -------------         --------------------------------------------------------      ------   --------
<S>                  <C>                   <C>                                                           <C>      <C>
THE PLAN             51.                   TRUSTEES' POWER TO TREAT SUSPENSION AS TERMINATION                       103
                     52.                   TERMINATION OF CONTRIBUTIONS BY A PARTICIPATING EMPLOYER                 103
                     53.                   TERMINATION OF THE PLAN                                                  105
                         (a)               -        entitlement to benefit                                          105
                         (b)               -        disposal of death benefits                                      105
                         (c)               -        application of Member's Voluntary
                                                    Contributions                                                   105
                         (d)               -        use of Plan assets on wind-up                                   105
                            (1) (a)        pensioners                                                               105
                                (b)        Members who have reached Normal Retiring
                                           Date but whose pension has not commenced                                 106
                            (2)            Members who were contracted-out under old State
                                           Graduated Scheme                                                         106
                            (3)            Guaranteed Minimum Pensions                                              106
                            (4) (a)        Members who have left the Plan with
                                           Deferred Pensions                                                        106
                                (b)        Members in Service before Normal Retiring Date                           106
                                (c)        other persons                                                            107
                            (5)            application of surplus assets                                            107
                            (6)            refund of residual surplus to employers                                  107
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         CLAUSE OR
  PART & TITLE            RULE NO.                              SUBJECT                           COLOUR   PAGE NO.
----------------     ------------------    --------------------------------------------------     ------   --------
<S>                  <C>                   <C>                                                    <C>      <C>
                            (7)            offsetting benefits under one paragraph against
                                           benefits under another                                            108
                            (8)            order of priority of benefits                                     108
                            (9)            payment of state scheme premiums to secure certain
                                           benefits                                                          108
                         (e)               -        alternative lump sum in certain
                                                    circumstances                                            109
                         (f)               -        expenses of wind-up                                      109
                     54.                   OPTIONAL POWERS ON TERMINATION OF CONTRIBUTIONS                   109
                         (A)               -        continuation of Plan as a closed scheme                  109
                         (B)               -        transfers to another scheme                              110
                         (C)               -        non-statutory buy-out option                             110
                         (D)               -        selective application of options on
                                                    termination of contributions                             111
VIII                                                                                              Mauve
STATUTORY            55.                   GUIDE TO INLAND REVENUE LIMITATIONS                               113
PROVISIONS               (A)               -        expressions used                                         113
                         (B)               -        Member's pension                                         121
                            (1)            Class A Members                                                   121
                            (2)            Class B Members and Class C Members                               122
                         (C)               -        lump sum on retirement                                   124
                            (1)            Class A Members                                                   124
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         CLAUSE OR
  PART & TITLE            RULE NO.                              SUBJECT                           COLOUR   PAGE NO.
----------------     ------------------    --------------------------------------------------     ------   --------
<S>                  <C>                   <C>                                                    <C>      <C>
                             (2)           Class B Members and Class C Members                               124
                         (D)               -        lump sum death benefits                                  126
                         (E)               -        dependant's pensions                                     126
                         (F)               -        pension increases                                        127
                         (G)               -        late retirement                                          127
                         (H)               -        Controlling Directors                                    127
                         (I)               -        maximum yearly contributions                             128
                         (J)                                                                                 128
                     56. (A)               CONTRACTING-OUT OF THE STATE EARNINGS RELATED
                                           PENSION SCHEME                                                    128
                         (B)                                                                                 128
                         (C)               -        guaranteed minimum pension (GMP)                         128
                         (D)               -        retirement after Pensionable Age                         129
                         (E)               -        revaluation of GMP for early leavers                     129
                         (F) (1)           -        Anti-franking                                            131
                             (2)           -        Member's Anti-franking Minimum                           133
                             (3)           -        widow's/widower's Anti-franking Minimum                  134
                         (G)               -        payment of state pension premiums and
                                                    corresponding reduction of Plan benefits                 135
                         (H)               -        Plan ceasing to be contracted-out                        135
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         CLAUSE OR
  PART & TITLE            RULE NO.                              SUBJECT                           COLOUR   PAGE NO.
----------------     ------------------    --------------------------------------------------     ------   --------
<S>                  <C>                   <C>                                                    <C>      <C>
                     57.                   CONTRACTING-OUT OF THE OLD STATE GRADUATED PLAN                   136
IX                                                                                                White
ALTERATION TO
PLAN                 58.                   POWER OF ALTERATION                                               139
</TABLE>
<PAGE>

                                                                          Page 1

THIS SUPPLEMENTAL TRUST DEED is made the 4th day of February 1997 BETWEEN HERTZ
(U.K.) LIMITED (Company No. 597994) whose registered office is at Radnor House
Norbury London (hereinafter called "the Principal Company") of the one part and
PETER ROY GILL STEPHEN JAMES SHIPSIDE RODNEY JAMES CLARKE BRIAN LLEWELLYN and
MICHAEL BYRNE (hereinafter called "the Trustees") of the other part

WHEREAS :

(1)   This Deed is supplemental to the deeds short particulars of which are set
      out in the Appendix hereto including the following

      (a)   a Trust Deed dated 1st January 1972

      (b)   a Supplemental Trust Deed (hereinafter called "the Definitive Deed")
            dated 25th October 1976 and

      (c)   a Supplemental Trust Deed dated 11th June 1985 (hereinafter called
            "the Supplemental Deed")

(2)   The Trustees are the present trustees of the HERTZ (U.K.) 1972 PENSION
      PLAN (hereinafter called "the Plan") which was by the Definitive Deed
      confirmed as having come into operation as on and from 1st January 1972

(3)   The Trustees with the consent of the Principal Company wish to amend the
      rules of the Plan set out in the Appendix to the Supplemental Deed
      (hereinafter called "the Old Rules") in the manner hereinafter set out and
      have power to do so pursuant to Rule 45 of the Old Rules

NOW THIS DEED WITNESSETH as follows :-

1.    The Trustees with the consent of the Principal Company testified by its
      execution of these presents HEREBY ALTER the provisions of the Old Rules
      with effect from 6th April 1988 by the deletion of the Old Rules and by
      the substitution therefor of the Rules contained in the Schedule hereto
      (such Rules as so substituted being hereinafter called "the New Rules")

2.    The New Rules shall apply to all persons who

      (a)   on 6th April 1988 are Members under the New Rules and who on the
            previous day had not attained their Normal Retiring Dates (as
            defined in the New Rules), or

<PAGE>

                                                                          Page 2

      (b)   on or after 6th April 1988 become Members under the New Rules, or

      (c)   derive entitlement or contingent entitlement to benefit under the
            Plan through a person to whom (a) or (b) above applies, or

      (d)   not being persons to whom (a), (b) or (c) of this Clause applies
            first become entitled or prospectively entitled to benefit under the
            Plan on or after 6th April 1988

and any such person entitled or prospectively entitled to benefit under the Old
Rules on special terms or in consequence of a transfer payment having been made
to the Plan or in other circumstances appearing to the Trustees to be
appropriate shall unless and to such extent as the Trustees with the agreement
of the Principal Company otherwise determine continue to be so entitled or
prospectively entitled to benefit under the corresponding provisions of the New
Rules

3.    The provisions of the Plan shall remain unaltered in respect of any person
      who is entitled or prospectively entitled to a benefit under the Plan and
      to whom the provisions of Clause 2 do not apply except that

      (a)   the powers under Sub-rules 10(C), 11(B) and 11(C) and Rules 16, 27
            and 28 of the New Rules shall (where appropriate) be available to
            the Trustees in respect of any such person, and

      (b)   in the event of the expiration of the Perpetuity Period (as defined
            in the New Rules) or the cessation of payment of contributions to
            the Plan by one or more of the Participating Employers (as defined
            in the New Rules) and whether or not in respect of a specified
            category of persons the amount of and the terms and conditions
            appropriate to any benefit applicable under the Plan to any person
            to whom such cessation of contributions applies but to whom Clause 2
            hereof does not apply shall be determined in accordance with the New
            Rules

4.    The provisions of the Plan which relate to the vesting of the management
      and administration of the [MISSING TEXT] 31 of the Old Rules are deemed to
      be incorporated in the New Rules and, where inconsistent with the New
      Rules are deemed to override the New Rules until 21st February 1991, on
      which date the functions of the Hertz Pensions Management Committee were
      merged with the functions of the Trustees and the Hertz Pensions
      Management Committee was discharged

IN WITNESS whereof these presents have been duly executed and delivered as a
deed the day and year first above written

<PAGE>

                                                                          Page 3

THE COMMON SEAL of HERTZ (U.K.) LIMITED was
hereunto affixed in the presence of:-

                                   Director

                                  Secretary

SIGNED and DELIVERED as a deed by the above
named PETER ROY GILL in the presence of:-          Trustee______________________

Witness_________________________________________

Name____________________________________________

Address_________________________________________

________________________________________________

________________________________________________

<PAGE>

                                                                          Page 4

SIGNED and DELIVERED as a deed by the above named
STEPHEN JAMES SHIPSIDE in the presence of:-        Trustee______________________

Witness_________________________________________

Name____________________________________________

Address_________________________________________

________________________________________________

________________________________________________

SIGNED and DELIVERED as a deed by the above named
RODNEY JAMES CLARKE in the presence of:-            Trustee_____________________

Witness_________________________________________

Name____________________________________________

Address_________________________________________

________________________________________________

________________________________________________

<PAGE>

                                                                          Page 5

SIGNED and DELIVERED as a deed by the above named
BRIAN LLEWELLYN in the presence of:-                Trustee_____________________

Witness_________________________________________

Name____________________________________________

Address_________________________________________

________________________________________________

________________________________________________

SIGNED and DELIVERED as a deed by the above named
MICHAEL BYRNE in the presence of:-                  Trustee_____________________

Witness_________________________________________

Name____________________________________________

Address_________________________________________

________________________________________________

________________________________________________

<PAGE>

                                                                          Page 6

                                    APPENDIX

                                   TRUST DEEDS

<TABLE>
<CAPTION>
Date                   Description                              Parties
----                   -----------                              -------
<S>                    <C>                                      <C>
1st January 1972       Trust Deed                               (1)       The Principal Company
                                                                (2)       Associated Companies
                                                                (3)       R.P. Frost & other

28th February 1974     Deed of Appointment                      (1)       The Principal Company
                                                                (2)       R.A. Aebi
                                                                (3)       R.P. Frost & P.A.D.Strevens
                                                                (4)       J.E.Randall & R. Cranshaw

17th December 1974     Deed of Appointment                      (1)       The Principal Company
                                                                (2)       J.E.Randall
                                                                (3)       R. Cranshaw
                                                                (4)       R. Gill & others

25th April 1975        Deed of Appointment                      (1)       The Principal Company
                                                                (2)       J.E. Randall & others
                                                                (3)       Bankers Trustee and Executor Company
                                                                          Limited

25th October 1976      Supplemental Trust Deed                  (1)       The Principal Company
                                                                (2)       Associated Companies
                                                                (3)       Bankers Trustee and Executor Company
                                                                          Limited

15th March 1978        Supplemental Trust Deed                  (1)       The Principal Company
                                                                (2)       Bankers Trustee and Executor Company
                                                                          Limited
</TABLE>

<PAGE>

                                                                          Page 7

<TABLE>
<S>                    <C>                                      <C>
6th April 1981         Supplemental Trust Deed appointing new   (1)       The Principal Company
                       Trustees in place of Retiring Trustees   (2)       Bankers Trustee and Executor
                       and amending Trust Deed and Rules                  Company Limited
                                                                (3)       S.M. Hyman Trustee Company Limited

24th August 1982       Supplemental Trust Deed amending         (1)       The Principal Company
                       Definitive Deed and Rules                (2)       S.M. Hyman Trustee Company Limited

12th March 1984        Supplemental Trust Deed adopting new     (1)       The Principal Company
                       Rules set out in Appendix                (2)       Southampton Place Trustee Company
                                                                          Limited

23rd May 1984          Supplemental Trust Deed amending Rule 4  (1)       The Principal Company
                                                                (2)       Southampton Place Trustee Company
                                                                          Limited

11th June 1985         Supplemental Trust Deed adopting new     (1)       The Principal Company
                       Rules                                              Southampton Place Trustee
                                                                (2)       Company Limited

18th March 1986        Supplemental Trust Deed Amending Rules   (1)       The Principal Company
                                                                (2)       Southampton Place Trustee Company
                                                                          Limited

28th August 1986       Supplemental Trust Deed Amending Rules   (1)       The Principal Company
                                                                (2)       Southampton Place Trustee Company
                                                                          Limited

1st July 1988          Trust Deed amending contracting-out      (1)       The Principal Company
                       provisions on an interim basis prior     (2)       Southampton Place Trustee Company Limited
                       to detailed alteration of the Rules
</TABLE>

<PAGE>

                                                                          Page 8

<TABLE>
<S>                    <C>                                      <C>
21st February 1991     Supplemental Trust Deed appointing new   (1)       The Principal Company
                       Trustees in place of Retiring Trustees   (2)       Southampton Place Trustee Company Limited
                       and amending Rules                       (3)       P.R. Gill & others

26th November 1991     Deed of Appointment and                  (1)       The Principal Company
                       Removal                                  (2)       P.R. Gill & others
                                                                (3)       B. Llewellyn

5th January 1993       Supplemental Deed appointing new         (1)       The Principal Company
                       Trustee in place of Retiring Trustee     (2)       P.R. Gill & others
                       and amending Rules                       (3)       D.N. Sawers

23rd January 1996      Deed of Appointment and Removal          (1)       The Principal Company
                                                                (2)       P.R. Gill & others
                                                                (3)       D.H. Sawers
</TABLE>
<PAGE>

                                                                          Page 9

RULES

THE SCHEDULE

PART I - CONSTRUCTION, INTERPRETATION AND DEFINITIONS

TRUST DEED AND RULES

- construction

1.    (A)   In the construction of the Plan, unless there is something
            inconsistent in the subject matter or the context the expressions
            defined in the Rules shall have the meanings attributed to them by
            the appropriate definition and words importing the singular shall
            include the plural and vice versa and words importing the masculine
            gender shall include the feminine gender. Any reference in the Trust
            Instrument or the Rules to any Act of Parliament or any part or
            section of one or any statutory regulations includes

            (1)   where appropriate, any earlier corresponding legislation,

            (2)   any statutory modification or re-enactment thereof for the
                  time being in force, and

            (3)   any corresponding enactment, regulation or order of Northern
                  Ireland.

- interpretation

      (B)   (1)   The headings and marginal notes to the Rules and references
                  thereto in the Rules shall not affect the interpretation of
                  them.

            (2)   Any terms used in the Rules as a measure of annual earnings in
                  calculating the benefits and Member's Ordinary Contributions
                  of a Class A Member are to be interpreted as limiting those
                  earnings to the permitted maximum as defined in Section 590(C)
                  of the Act (known as the earnings cap).

- right to information

      (C)   Any person entitled or prospectively entitled to benefits under the
            Plan and any independent trade union recognised to any extent for
            the purposes of collective bargaining in relation to Members and
            prospective Members is entitled under the Disclosure Requirements,
            to information about the constitution of the Plan, its
            administration and finances and the rights and obligations that may
            arise under it. The Trustees shall make the information available in
            a manner and on a basis which satisfies the Disclosure Requirements.

DEFINITIONS

2.    "Accrued Guaranteed Minimum" means,

<PAGE>
                                                                         Page 10

      (a)   in relation to a Member that part of his Plan Guaranteed Minimum
            (excluding any prospective increases in it) which had accrued at the
            date his Contracted-out Employment ended,

      (b)   in relation to a Member's widow, half of the amount applicable to
            the Member under (a) above,

      (c)   in relation to a Member's widower half of the amount applicable to
            the Member under (a) above which is attributable to earnings for the
            1988/89 Tax Year and later Tax Years.

"the Act" means the Income and Corporation Taxes Act 1988 and approval under the
Act means approval as an exempt approved scheme by the Board of Inland Revenue
under Chapter I of Part XIV of the Act.

"Actuary" means the actuary or actuaries for the time being appointed or
nominated to the Plan under Sub-rule 45(A) (appointment and removal of
officers).

"Anti-franking Minimum" means the Anti-franking Minimum as defined in Sub-rule
56(F).

"Associated Employer" means any corporation, company or firm

(a)   which is either associated in business with or directly or indirectly
      controlled by the Principal Company. In the event of any question as to
      whether a corporation, company or firm is either associated in business
      with or directly or indirectly controlled by the Principal Company a
      certificate under the hand of the chairman or any two directors of the
      Principal Company shall be conclusive evidence of the facts therein
      stated, or

(b)   which the Principal Company has, with the consent of the Board of Inland
      Revenue, determined shall for any period be treated as an Associated
      Employer for the purposes of the Plan.

"Associated Scheme" means, in any case where a determination as to any
calculation, matter or fact falls to be made

(a)   on or after 27th July 1989, Associated Scheme as defined in Sub-rule 55(A)
      (Inland Revenue Limits), and

(b)   before 27th July 1989, in relation to a Member or Life Assurance Member,
      any retirement benefits scheme as defined in section 611 of the Act
      relating to service with a Participating Employer, other than the Plan.

<PAGE>
                                                                         Page 11

"Basic Salary" means, in relation to a Member or a Life Assurance Member, the
annual rate of his basic salary on the commencement of each Plan Year or, if
later, on the date of joining the Plan.

"Child" means, in relation to a Member,

(a)   any child of the Member or of his spouse,

(b)   any legally adopted child of the Member or of his spouse, and

(c)   if the Trustees so decide, any other child in relation to whom, in the
      opinion of the Trustees, the Member stood in loco parentis at the time of
      his death.

provided that:

(1)   a person shall qualify as a Child only

      (a)   until the age of 18 years, or

      (b)   during any period after attaining age 18 and before attaining age 21
            during which he is in receipt of full-time education or vocational
            training unless that education or training is given in the course of
            employment;

(2)   "Children" has a corresponding meaning;

(3)   in relation to any Member the expression "Child" shall not, unless the
      Trustees so decide, include any child born after contributions by the
      relevant Participating Employer cease under Rule 52, and

(4)   the Trustees may decide that any Child (not being the Member's only Child)
      who in the opinion of the Trustees was not dependent on the Member at the
      time of his death shall be disregarded.

"Child's Pension" means Child's Pension as defined in Sub-rule 14(B).

"Class A Member", "Class B Member" and "Class C Member" have the meanings shown
in Sub-rule 55(A).

"Commencement Date" means 1st January 1972.

<PAGE>
                                                                         Page 12

"Contracted-out Employment" means employment which is treated as contracted-out
employment by reference to the Plan for the purposes of the Pensions Act
including any period of employment which is so treated for the purposes of
section 14(1) thereof by reason of the transfer to the Plan of accrued rights
from another scheme.

"Contracting-out Deduction" means, in relation to a Member, an amount determined
by the Trustees to be the amount (if any) by which the National Insurance
contributions payable by the Member during any period of Contracted-out
Employment have fallen short of what would have been payable if the Member had
not been in Contracted-out Employment during that period.

"Deferred Pension" means Deferred Pension as defined in Sub-rule 9(A) (Benefits
on leaving the Plan).

"Dependent Relative" means, in relation to a person, any
one or more of the following:-

(a)   a child including a stepchild and a lawfully adopted child of such person
      who is under the age of 18 years or is for the time being a student
      engaged in full-time education or vocational training, and

(b)   any person who in the opinion of the Trustees was dependent on such first
      mentioned person for all or any of the ordinary necessaries of life.

"Disclosure Requirements" means the requirements as to disclosure of information
about the Plan and the form of that information, contained in section 113 of the
Pensions Act and the Occupational Pension Schemes (Disclosure of Information)
Regulations 1986.

"Early Retirement Pension" means Early Retirement Pension as defined in Rule 7.

"Eligible Employee" means a person in the service of a Participating Employer
whose name is recorded in the register specified in the membership conditions
specified in the appropriate part of Sub-rule 3(A) and may include a director of
a Participating Employer provided that such inclusion will not prejudice
approval of the Plan under the Act and for the purposes of the Plan any such
director shall be deemed to be in the service of a Participating Employer.

The decision of the Principal Company as to whether or not a person is in the
service of a Participating Employer and whether or not his name shall be
recorded or cease to be recorded in any such register shall be conclusive.

<PAGE>
                                                                         Page 13

"Equivalent Pension Benefits" means Equivalent Pension Benefits as defined in
Rule 57 (Contracting-out of the old State graduated scheme).

"Executive Member" means a Member who has become a Member under Rule 3(A)(2) and
whose name is recorded in a Participating Employer's register of Executive
Members.

"Final Contribution Date" means, in relation to a Member, the earlier of

(a)   the last day of the month coincident with or, if not coincident with,
      immediately preceding Normal Retiring Date, and

(b)   the date he leaves the Plan.

"Final Pensionable Salary" means

(a)   before 1st July 1993, the greatest annual average of a Member's
      Pensionable Salaries for 3 consecutive Plan Years in the 10 consecutive
      Plan Years up to the complete Plan Year before the Plan Year in which
      falls the earlier of the Normal Retiring Date and the date he leaves the
      Plan;

(b)   after 30th June 1993, the greatest annual average of a Member's
      Pensionable Salaries for 3 consecutive Plan Years in the 10 consecutive
      Plan Years up to and including the Plan Year in which falls the earlier of
      the Normal Retiring Date and the date he leaves the Plan.

For the purpose of calculating the Member's Final Pensionable Salary his
Pensionable Salary as a Part-time Member shall be multiplied by a fraction the
numerator of which shall be the full complement of hours necessary to qualify
such service as Full-time Service and the denominator shall be the number of
hours worked in a week while a Part-time Member.

"Final Remuneration" has the meaning shown in Sub-rule 55(A).

"First Contribution Date" means, in relation to a Member, the date upon which he
became a Member.

"Fund" means the monies and other assets subject to the trust established by the
Trust Instrument.

"GMP Increase" means

<PAGE>
                                                                         Page 14

(a)   in relation to a Member whose Contracted-out Employment ends before
      Pensionable Age or whose pension under the Plan is due to commence after
      Pensionable Age, the difference between his Plan Guaranteed Minimum and
      his Accrued Guaranteed Minimum;

(b)   in relation to the widow or widower of a Member to whom paragraph (a)
      applies, the difference between the Plan Guaranteed Minimum and the
      Accrued Guaranteed Minimum.

"Guaranteed Minimum" means, in relation to a Member or a Member's widow or
widower, the appropriate guaranteed minimum including any increases and
prospective increases in the amount thereof ascertained in accordance with Rule
56 (Contracting-out of the State earnings related pension scheme). For the
purposes of calculating the Guaranteed Minimum at any date

(a)   any prospective increases under paragraph (2) of Sub-rule 56(C) (which
      relates to increases after Pensionable Age under section 109 of the
      Pensions Act) shall be excluded, and

(b)   any part of that guaranteed minimum which relates to a period after 5th
      April 1988 shall be disregarded in the case of a Member who has
      voluntarily left the Plan under Sub-rule 3(C) and exercised his Statutory
      Transfer Option inclusive of rights to that part of the guaranteed
      minimum.

For the purposes of determining whether a yearly pension under the Plan is less
than the Guaranteed Minimum the amount of the Guaranteed Minimum shall be the
annual equivalent (as determined by the Trustees) of its weekly rate.

"Guaranteed Minimum Pension" means, in relation to a Member or his widow or
widower, his or her pension under the Plan to the extent to which its weekly
rate is equal to the Guaranteed Minimum and shall to that extent include accrued
rights conferring prospective entitlement under the Plan to the pensions to be
provided for him and his widow or widower.

"Ill-health" means such partial or total incapacity arising out of accident or
mental or physical disability or impairment as the Principal Company shall
determine.

"Incapacity" means Ill-health which in the opinion of the Principal Company is
sufficiently serious to: (a) prevent a Member or Life Assurance Member from
following his normal occupation; and (b) impair seriously his earning ability.

<PAGE>
                                                                         Page 15

If the Principal Company so decides, a Member can be treated as suffering from
Incapacity, even though his Ill-health does not satisfy condition (b).

"Index of Retail Prices" means the Central Statistical Office's index of retail
prices published by the Department of Employment or any other index approved for
the purposes of the Plan by the Board of Inland Revenue.

"Interest" means interest at the rate of 4 per cent. per annum compound
calculated from the first day of the Plan Year immediately following the Plan
Year in which the relevant contribution was made, up to the date on which
Interest is payable under the Rules and compounded annually at the end of each
Plan Year.

"Late Retirement Pension" means Late Retirement Pension as defined in Rule 8.

"Life Assurance Member" means a person who has been admitted to the Plan under
Sub-rule 3(A)(5) and who has not ceased to be a Life Assurance Member under
Sub-rule 3(C)(2).

"Linked Qualifying Service" means the relevant period of service which under the
provisions of the Transfer Rules is to be taken into account as linked
qualifying service under the Rules.

"Lower Earnings Limit" means, in relation to a Member or Life Assurance Member,
his lower earnings limit for the purposes of the Pensions Act.

For the purposes of calculating the Lower Earnings Limit in relation to a period
of Part-time Service, the Lower Earnings Limit shall be multiplied by a
fraction, the numerator of which shall be the number of hours worked during the
last complete week of the Member's Part-time Service and the denominator shall
be the Full-time Working Week applicable during such last complete week.

"Member" means

(a)   a person who was an Eligible Employee on 6th April 1988 and who on the
      previous day was a member under the Old Rules, or

(b)   any other Eligible Employee who has become a Member under Rule 3,

but subject always to Sub-rule 3(C)(1) (leaving the Plan).

<PAGE>
                                                                         Page 16

"Member's Contributions" means, in relation to a Member, the aggregate of:

(a)   any Member's Ordinary Contributions with Interest, and

(b)   any Transferred Employee Contributions with Interest, and

(c)   (1)   his Voluntary Contributions Fund (if any), and

      (2)   any Member's Voluntary Contributions to which Sub-rule 4(E)
            (segregated Member's Voluntary Contributions) does not apply.

but excluding any amount which has been refunded to the Member in his lifetime
and any part thereof which the Trustees certify to relate to benefits
extinguished by the Member having exercised his Statutory Transfer Option or the
non-statutory transfer or buy-out option under Sub-rules 10(B) and (C).

Provided that in any case where Member's Voluntary Contributions or Transferred
Employee Contributions have been paid or applied on the basis that in the event
which happens such contributions shall not be taken into account in calculating
the amount of any benefit or benefits under the Plan Member's Contributions
shall be reduced by an amount determined by the Trustees to be equal to the
amount so paid or applied.

"Member's Ordinary Contributions" means, in relation to a Member his
contributions to the Plan under Sub-rule 4(A) and any contributions paid by him
as a condition of his membership of the Plan under any rules which governed the
Plan before these Rules but excluding any contributions refunded to him in his
lifetime.

"Member's Voluntary Contributions" means, in relation to a Member his
contributions to the Plan under Sub-rule 4(B) and any voluntary contributions
paid by the Member under any rules which governed the Plan before these Rules.

"Money Purchase Fund" means, in relation to a Member, the amount equal to the
total of

(1)   a notional contribution in respect of each complete Plan Year commencing
      after 5th April 1988 up to the earlier of the Normal Retiring Date and the
      date he leaves the Plan of the total of

      (a)   an amount equal to the Member's Ordinary Contribution for that Plan
            Year and

<PAGE>
                                                                         Page 17

      (b)   a percentage (described below) of so much of the Member's
            Pensionable Salary in such Plan Year as exceeds the Lower Earnings
            Limit in that Plan Year and does not exceed the Upper Earnings Limit
            in that Plan Year. The percentage referred to in this paragraph is
            3.8 per cent prior to the 6th April 1993 and 3 per cent after the
            5th April 1993;

and

(2)   interest, at the Money Purchase Interest Rate, added on the first day of
      each Plan Year up to the end of the Plan Year immediately preceding the
      Plan Year in which the Member's Normal Retiring Date (or earlier date of
      retirement falls) calculated on the notional contribution in (1) above
      which relates to the previous Plan Year and any interest already declared
      in accordance with this sub-paragraph (2).

"Money Purchase Interest Rate" means the amount which the Trustees determine is
the average rate declared during a Plan Year by the Halifax Building Society on
its voluntary contributions account (or by such other body and/or in relation to
such other account as the Trustees shall determine from time to time for the
purposes of this definition).

"Money Purchase Pension" means, for a Member, the amount of pension which the
Trustees, having regard to the advice of the Actuary, determine to be equal in
value to the Member's Money Purchase Fund at the relevant date.

"National Insurance Act" means the National Insurance Act 1965.

"National Service" means, in relation to an Eligible Employee, any period of
service in any of the naval, military or air forces of the Crown or, unless the
Trustees otherwise determine, of compulsory employment for war purposes in
full-time civil defence or industrial duties pursuant to statute or such other
period of service for National purposes as the Trustees shall determine.

"Nominated Dependant" means in relation to a Member, any person (other than the
Member's Qualifying Spouse or Children) who is or was dependent upon the Member
at the date of the Member's death for all or any of the ordinary necessaries of
life and who has been nominated by the Member in writing to the Trustees to
receive any Dependant's Pension payable on his death.

"Normal Retirement Pension" means Normal Retirement Pension as defined in Rule
6.

<PAGE>
                                                                         Page 18

"Normal Retiring Date" means the 60th birthday in the case of a female Member or
Life Assurance Member who leaves the Plan or reaches age 60 before 1st April
1991, the 60th birthday in the case of an Executive Member or Senior Executive
Member, and the 65th birthday in the case of any other Member or Life Assurance
Member.

"Old Rules" means the rules of the Plan which were in force on 5th day of April
1988.

"Paid-up Policy" means a policy of insurance or annuity contract in the name of
a person or persons (or in the name of trustees of a trust for his or their
benefit) entitled or prospectively entitled to a benefit or benefits under the
Plan and providing, as may be appropriate, one or more of the following
benefits, namely an annuity, a lump sum payable on the date upon which a lump
sum was prospectively payable under the Plan, or a lump sum payable on death
provided that

(a)   the amount of any benefit shall not exceed the amount determined by the
      Trustees to be the maximum amount which, having regard to Sub-rule 32(A)
      (Inland Revenue limitations), could have been payable under the Plan by
      reference to the period of service with a Participating Employer
      appropriate at the date of purchase or provision of the policy or contract
      to the employee by reference to whose service the benefit applies,

(b)   the policy or contract has been approved by the Board of Inland Revenue or
      the liabilities undertaken by the insurance company correspond with the
      benefits under the Plan which the policy or contract is intended to
      secure,

(c)   any lump sum benefit payable on the death of a person shall be payable to
      his personal representatives or as otherwise arranged with the relevant
      insurance company,

(d)   the policy or contract may be assigned or surrendered only

      (1)   with the written consent of the Member, and

      (2)   if the benefits previously secured by the policy or contract become
            secured or are replaced by benefits under one or more of (i) another
            policy or contract of a like nature to a Paid-up Policy, and (ii)
            subject to the conditions specified or referred to in regulation 2
            of the Occupational Pension Schemes (Discharge of Liability)
            Regulations 1985 an occupational pension scheme, a personal pension
            scheme, or a self-employed pension arrangement,

<PAGE>
                                                                         Page 19

(e)   any annuity may be commuted only if

      (1)   it has become payable and is a Trivial Pension, or

      (2)   it has become payable and the commutation does not apply to any part
            of it which represents a Guaranteed Minimum Pension, the Member has
            requested or consented to the commutation, and either

            (A)   he has attained the age of 50, or

            (B)   his earning capacity has been destroyed or seriously impaired,
                  or

            (C)   he is in exceptional circumstances of serious ill-health; or

      (3)   any other conditions considered suitable by the Occupational
            Pensions Board are met,

(f)   the relevant insurance company shall assume an obligation to the Member or
      to the trustees of a trust for his benefit to pay the benefits to him or,
      where appropriate, to his dependants or to the trustees of such a trust,

(g)   the policy or contract shall give effect to provisos (a) to (f) above,

(h)   the policy or contract shall be issued by any United Kingdom office or
      branch of any insurance company which is authorised to carry on ordinary
      long term insurance business under section 3 or 4 of the Insurance
      Companies Act 1982,

(i)   if the policy or contract is intended to provide Guaranteed Minimum
      Pension, it shall include, or be endorsed with, terms to the effect that
      the annuity for the Member or his widow or widower will not be less than
      the Guaranteed Minimum and that any increase in the Guaranteed Minimum
      Pension under section 109 of the Pensions Act will result in a similar
      increase in the annuity,

(j)   it contains or is endorsed with either

      (1)   a statement of the total length of the period or periods of service
            which gave rise to the benefits secured by it, or

<PAGE>
                                                                         Page 20

      (2)   where that total length exceeds 2 years a statement to that effect,

(k)   for the purposes of this definition "Member" includes any person by
      reference to whose employment the Trustees have accepted a transfer of
      assets under the Plan.

"Part-time Member" means a Member or Life Assurance Member who in any period has
a contractual working week of basic hours which is shorter than the contractual
working week of basic hours for a full-time employee of the Participating
Employer who in the opinion of the Participating Employer is in a comparable
category of employment to the Member or Life Assurance Member (as appropriate).

"Participating Employer" means the Principal Company or any Associated Employer
which is participating in the Plan in accordance with the provisions of Rule 48
and in relation to any Member or Life Assurance Member means the Participating
Employer in whose Service he either is or was at the relevant time.

"Pensionable Age" means, in relation to a Member, the date upon which he attains
pensionable age for the purposes of the Pensions Act.

"Pensionable Salary" means, in relation to a Member and any Plan Year, his Basic
Salary for that Plan Year less the Lower Earnings Limit applicable on the first
day of that Plan Year, rounded to the nearest multiple of (pound)12 or if midway
between two such multiples the higher of such multiples.

"Pensionable Service" means, in relation to a Member, the aggregate of:-

(a)   the number of complete years and months (each complete month counting as
      one-twelfth of a year) of his Full-time Service as a Member before the
      earlier of the Normal Retiring Date and the date he leaves the Plan and

(b)   the number of complete years and months (each complete month counting as
      one-twelfth of a year) of his Part-time Service as a Member before the
      earlier of the Normal Retiring Date and the date he leaves the Plan
      multiplied by a fraction the numerator of which shall be the number of
      hours worked during the last complete week of the Member's Part-time
      Service and the denominator shall be the Full time Working Week applicable
      during such last complete week.

For the purposes of calculating the benefits under Sub-rule 11(A) (Lump sum
instead of pension) any period of complete years and months of Service otherwise
excluded by this definition shall count as Pensionable Service.

<PAGE>
                                                                         Page 21

At the request of the Principal Company the Trustees shall notify the Member
that any additional period or periods are to be counted as Pensionable Service
for some or all of the purposes of the Plan. Any such additional period or
periods shall be Pensionable Service to the extent and for the purposes so
notified.

"Pensions Act" means the Pension Schemes Act 1993.

"Perpetuity Period" means the period expiring on the twentieth anniversary of
the day of the death of the last survivor of the issue living on 1st January
1972 of his late Majesty King George the Fifth or such longer period, during
which legislation has made it lawful for the trusts of the Plan to continue.

"Plan" means the Plan which is established by the Trust Instrument and the Rules
and which shall be known as the "HERTZ (U.K.) 1972 PENSION PLAN".

"Plan Death Benefit" means the Plan Death Benefit as determined in accordance
with Sub-rule 12(A) (lump sum on death in Service before Normal Retiring Date).

"Plan Guaranteed Minimum" means

(a)   in relation to a Member, that part of his Guaranteed Minimum which relates
      to his Contracted-out Employment as a Member

(b)   in relation to a Member's widow or widower, half of the amount applicable
      to the Member under (a) above,

(c)   in relation to a Member's widower, half of the amount applicable to the
      Member under (a) above which is attributable to earnings for the 1988/89
      Tax Year and later Tax Years.

"Plan Year" means any period of one year commencing as the case may be on either
of the following dates and on each anniversary thereof namely

(a)   the Commencement Date, or

(b)   any other date which the Trustees may at any time select,

<PAGE>
                                                                         Page 22

and includes an intervening period of more than 6 months but not more than 18
months where the Trustees have selected a different date from which Plan Years
are to start and benefits or contributions applicable under the Rules to a Plan
Year of more or less than 12 calendar months shall be adjusted.

"Pre-1988 Senior Executive Member" means a Senior Executive Member (other than a
Pre-1985 Senior Executive Member) whose period of Pensionable Service as a
Senior Executive commenced before 6th April 1988.

"Pre-1985 Senior Executive Member" means a Senior Executive Member whose period
of Pensionable Service as a Senior Executive Member commenced before the 1st May
1985.

"Principal Company" means HERTZ (U.K.) LIMITED or, provided that approval of the
Plan under the Act is not thereby prejudiced, any corporation, company or firm
which, upon any amalgamation, reconstruction or otherwise, shall have covenanted
with the Trustees to observe and perform such of the provisions of the Rules as
are hereunder to be observed and performed by the Principal Company.

"Qualifying Member" means a Member

(a)   whose last or only period of continuous Pensionable Service is at least 2
      years. For this purpose:-

      (1)   two consecutive periods of Pensionable Service shall be treated as
            continuous and aggregated together if between them there is either
            no break or a break not exceeding one month;

      (2)   Linked Qualifying Service not otherwise included is added to
            Pensionable Service; or

(b)   who (1) has completed more than one period of continuous Pensionable
      Service or, in relation to a Member who leaves the Plan before 28th
      February 1991, has completed a period of membership of another retirement
      benefits scheme (as defined in section 611 of the Act) relating to service
      with a Participating Employer, and (2) has completed 2 years' qualifying
      service by reference to the Plan for the purposes of paragraph 71 of the
      Pensions Act, or

(c)   for whom the Trustees have accepted a transfer of assets under Rule 27
      from a personal pension scheme within the meaning of section 1 of the
      Pensions Act.

"Qualifying Spouse" means the person (if any) to whom a Member was married at
the date of his death.

<PAGE>
                                                                         Page 23

"Revaluation Increase" means:

(1)   for a Member who leaves the Plan (other than by death) at least one year
      before his Normal Retiring Date, and

(2)   for the Qualifying Spouse of a Member to whom (1) above applied and who
      died while receiving a pension from the Plan which commenced at Normal
      Retiring Date or while prospectively entitled to a pension under Rule 9
      (Benefits on leaving the Scheme);

an amount calculated using the formula below appropriate to the date on which
the Member leaves the Plan:

<TABLE>
<CAPTION>
Member leaves the Plan before 1st January 1991   Member leaves the Plan after 31st December 1990
---------------------------------------------    -----------------------------------------------
<S>                                              <C>
          A x B x (D - E)                                          A x (D - E)
          -----
            C
</TABLE>

      Where:

      A     is the percentage specified in the last order made under section 52A
            of the Pensions Act before the Member's Normal Retiring Date
            applicable to a revaluation period of the number of complete years
            in the period beginning on the day after the Member leaves the Plan
            and ending on his Normal Retiring Date.

      B     is the Member's Pensionable Service completed after 31st December
            1984.

      C     is the Member's Pensionable Service.

      D     is

            (1)   for a Member an amount calculated in accordance with paragraph
                  (2)(b) of Sub-rule 9(A);

            (2)   for the Member's Qualifying Spouse, 50 per cent. of the amount
                  specified in (1). The amount so calculated shall be reduced by
                  2 1/2 per cent. for each year (if any) by which the Member was
                  more than 15 years older than his Qualifying Spouse.

<PAGE>
                                                                         Page 24

      E     is the Accrued Guaranteed Minimum (if any).

      For the purposes of calculating the Revaluation Increase where a notional
      period is to be included as part of a Member's Pensionable Service:

      (a)   that period shall be so treated and shall be taken to have ended
            immediately before his Pensionable Service would otherwise have
            begun

      (b)   if that notional period was given because of a transfer to the Plan
            under the Transfer Rules, E shall include any part of the Guaranteed
            Minimum (excluding any prospective increases in it) when the
            Member's Contracted-out Employment ended which is attributable to
            that transfer

      (c)   his Early Retirement Pension or Deferred Pension shall be taken to
            include any resulting additional pension.

"Rules" means these Rules and any special terms for the time being in force
under Sub-rule 16(B) and includes any alteration or modification thereof from
time to time in force.

"Senior Executive Member" means a Member who has become a Member under the Old
Rules or under Rule 3(A)(3) and whose name is recorded in a Participating
Employer's register of Senior Executive Members.

"Service" means continuous service with one or more Participating Employers
provided that (a) service which is interrupted only by National Service shall be
deemed to be continuous service, (b) in the case of a Participating Employer
first included in the Plan after the Commencement Date any period of Service
with such Participating Employer prior to inclusion in the Plan shall count as
Service if and to such extent and for such purposes as the Principal Company
shall determine but subject thereto any such period shall be excluded, and (c)
the Principal Company shall finally determine, in relation to any Eligible
Employee, the date of commencement of Service and the period to be counted as
Service.

"Spouse's Pension" means Spouse's Pension as defined in Sub-rule 14(A).

"Staff Member" means a Member who has become a Member under the Old Rules or
under Rule 3(A)(1) and whose name is recorded in a Participating Employer's
register of Staff Members.

<PAGE>
                                                                         Page 25

"Statutory Transfer Option" means the right conferred by Chapter IV of Part IV
to the Pensions Act and which is described in Sub-rule 10(A).

"Tax Year" means tax year for the purposes of the Pensions Act.

"Transfer Rules" means Rule 27 and any provisions permitting a transfer of
assets to the Plan from another retirement benefits scheme contained in any
provisions which governed the Plan before these Rules.

"Transferred Employee Contributions" means Transferred Employee Contributions as
defined in Rule 27 (transfers from another scheme) and includes such part of any
amount transferred into the Plan in respect of a Member under the Transfer Rules
(other than Rule 27) as may, in accordance therewith, have been deemed by the
Trustees to be attributable to employee's contributions.

"Trivial Pension" means, in relation to any person a pension which when added to

(a)   all pensions payable under Associated Schemes and

(b)   the pension equivalent as determined by the Trustees of all other benefits
      applicable in respect of such person during his lifetime under the Plan or
      Associated Schemes,

is not more than (pound)260 per annum or such other amount as may be prescribed
from time to time by regulations made under section 21(1) and section 77(b) of
the Pensions Act and which will not prejudice approval of the Plan under the Act
but so that

(1)   for the purposes of deciding at a date earlier than the Normal Retiring
      Date whether a pension under or arising from the Plan is a Trivial Pension
      the amount of any pension which includes a guaranteed minimum pension for
      the purposes of section 14 of the Pensions Act shall be deemed to be the
      amount which in accordance with the Rules or the rules of any Associated
      Scheme (as appropriate) will apply at Pensionable Age but disregarding the
      effect of any provision under the Plan or Associated Schemes for increases
      in the amount of any such pension prior to Pensionable Age which are not
      required in order to comply with the contracting-out requirements of the
      Pensions Act,

(2)   no pension under or arising from the Plan shall be a Trivial Pension at a
      date earlier than the Normal Retiring Date

<PAGE>
                                                                         Page 26

      (a)   if it or any pension to which the Member is entitled under any
            Associated Schemes includes a guaranteed minimum pension for the
            purposes of section 14 of the Pensions Act to which an order under
            section 148 of the Social Security Administration Act 1992 coming
            into force after such earlier date may apply, and

      (b)   unless all Associated Schemes under which the Member is entitled to
            benefit are being wound-up or he is treated by such Associated
            Schemes as having retired, as the case may be under the Plan.

"Trust Instrument" means the following:-

(a)   a Trust Deed made 1st January 1972 between the Principal Company (under
      its former name of Y.K.P. (Holdings) Limited) of the first part, Daimler
      Hire Limited, United Service Transport Company Limited and Hertz Europe
      Limited of the second part and Robert Philip Frost, Peter Alan Dawson
      Strevens and Rene Andreas Aebi of the third part

(b)   a Deed made 25th October 1976 between the Principal Company of the first
      part, Daimler Hire Limited, United Transport Company Limited and Hertz
      Europe Limited of the second part and Bankers Trustee and Executor Company
      Limited of the third part

(c)   any deeds supplemental thereto.

"Trustees" means the trustee or trustees for the time being of the Plan.

"Upper Earnings Limit" means, in relation to a Member, his upper earnings limit
for the purposes of the Pensions Act.

"Voluntary Contributions Fund" has the meaning specified in Sub-rule 4(E)(2)
(investment of segregated Member's Voluntary Contributions).

<PAGE>
                                                                         Page 27

PART II - JOINING AND LEAVING THE PLAN

- Joining the Plan
full membership

- Staff

3.    (A)   (1)   An Eligible Employee shall be eligible for admission to
                  membership of the Plan as a Staff Member if in the opinion of
                  the Trustees he fulfils the following conditions:-

                  (a)   his name is recorded in a Participating Employer's
                        register of permanent Employees, and

                  (b)   he has reached age 21, and

                  (c)   he has not reached age 64, or age 59 in the case of a
                        female Eligible Employee who is admitted to membership
                        before 1st April 1991, and

                  (d)   in his current period of Service he has not voluntarily
                        left the Plan under (C) of this Rule, or failed to
                        become a Member within 12 months of first being able to
                        do so under this Rule.

                  Any such Eligible Employee shall be admitted to membership of
                  the Plan unless he gives written notice to the Trustees that
                  he does not wish to join the Plan.

                  The Principal Company may determine in any particular case
                  that any one or more of the conditions set out above shall be
                  waived.

- Executive

            (2)   An Eligible Employee shall be eligible for admission to
                  membership of the Plan as an Executive Member after the 17th
                  October 1995 if the Principal Company in its absolute
                  discretion directs the Trustees to admit the Eligible Employee
                  to membership of the Plan as an Executive Member.

                  Any Eligible Employee who is to be admitted to membership
                  under this Sub-rule shall provide such evidence of his health
                  and such other evidence as the Trustees and the Principal
                  Company may require. Any such Eligible Employee who (unless
                  the Trustees otherwise determine) completes and submits within
                  one month of first being invited to join as an Executive
                  Member and in respect of whom the Trustees have accepted, an
                  application for membership of the Plan as an Executive Member
                  in such form as shall be determined by the Trustees, shall be
                  admitted to membership of the Plan. The Principal Company
                  shall notify the Trustees of the date upon which

<PAGE>
                                                                         Page 28

                  admission to membership as an Executive Member is to take
                  place.

                  The Principal Company may make the membership of an Eligible
                  Employee who is invited to become an Executive Member subject
                  to any conditions as to participation in all or any of the
                  benefits of the Plan or otherwise which they think appropriate
                  and notify to the Eligible Employee.

- Senior Executive

            (3)   An Eligible Employee shall be eligible for admission to
                  membership of the Plan as a Senior Executive Member if the
                  Principal Company in its absolute discretion directs the
                  Trustees to admit the Eligible Employee to membership of the
                  Plan as a Senior Executive Member.

                  Any Eligible Employee who is to be admitted to membership
                  under this Sub-rule shall provide such evidence of his health
                  and such other evidence as the Trustees and the Principal
                  Company may require. Any such Eligible Employee who (unless
                  the Trustees otherwise determine) completes and submits within
                  one month of first being invited to join as a Senior Executive
                  Member and in respect of whom the Trustees have accepted, an
                  application for membership of the Plan as a Senior Executive
                  Member in such form as shall be determined by the Trustees,
                  shall be admitted to membership of the Plan. The Principal
                  Company shall notify the Trustees of the date upon which
                  admission to membership as a Senior Executive Member is to
                  take place.

                  The Principal Company may make the membership of an Eligible
                  Employee who is invited to become a Senior Executive Member
                  subject to any conditions as to participation in all or any of
                  the benefits of the Plan or otherwise which they think
                  appropriate and notify to the Eligible Employee.

Changes between Category

            (4)   An eligible Employee who has been admitted to membership of
                  the Plan may at the invitation of the Principal Company (and
                  only at the invitation of the Principal Company) move from one
                  category of membership to another if he satisfies the
                  eligibility conditions for that category of membership.

<PAGE>
                                                                         Page 29

                  Upon any move between categories of membership the Principal
                  Company will notify the Trustees of the name of the Member,
                  the date from which the move takes effect, and make available
                  such other details (including any evidence of the Member's
                  state of health that the Trustees may require) as the Trustees
                  may require.

- Joining the Plan Life Assurance membership

            (5)   An employee of a Participating Employer shall be admitted to
                  the Plan for the purposes only of the benefit described is
                  Sub-rule 12(A) (lump sum on death in Service before Normal
                  Retiring Date) if he fulfils the following conditions:

                  (a)   his name is recorded in a Participating Employer's
                        register of permanent employees, and

                  (b)   he has reached age 21, and

                  (c)   he has not reached age 64, or age 59 in the case of a
                        female Eligible Employee who is admitted to membership
                        before 1st April 1991,

                  and

                  (d)   he is not a Member.

                  The Principal Company may determine in any particular case
                  that any one or more of the conditions set out above shall be
                  waived.

- Treatment of benefits for earlier periods of Membership

      (B)   (1)   If on becoming a Member a person is entitled or prospectively
                  entitled to benefits under the Plan for an earlier period of
                  membership the provisions of this Sub-rule shall apply unless
                  the Trustees with the consent of the Participating Employer
                  and the Member otherwise determine.

            (2)   The amount of any benefit or benefits applicable to each
                  period of membership shall (subject as hereinafter provided)
                  be calculated in accordance with the provisions of the Plan as
                  if each such period was the only period of membership.

<PAGE>
                                                                         Page 30

            (3)   If on the date he rejoins the Plan the Member is not in
                  receipt of a pension under the Plan the following provisions
                  shall apply to the intent that the benefits under the Plan
                  applicable to each period of membership shall as far as
                  practicable be subject to the same terms and conditions,
                  namely,

                  (a)   any options available under the Plan in respect of
                        benefits relating to an earlier period which have not
                        been exercised on the date he rejoins shall cease to
                        apply during a later period of membership, and

                  (b)   options available under the Plan in respect of benefits
                        relating to the last period of membership shall apply in
                        respect of any corresponding benefits to which
                        sub-paragraph (a) above applies as if the benefits
                        related in all respects to one period.

            (4)   If on the date he rejoins the Plan the Member is in receipt of
                  a pension under the Plan that pension and any related benefits
                  payable on the death of the Member shall continue to be
                  payable on the same basis as would have applied had he not
                  rejoined the Plan.

- Leaving the Plan full membership

      (C)   (1)   A Member shall leave the Plan in the following events:

                  (a)   if he leaves Service, or

                  (b)   if, although still an Eligible Employee, he elects to
                        leave the Plan. A Member may so elect by giving at least
                        one month's written notice to the Trustees. The Member
                        shall leave the Plan at the end of the day on which the
                        notice expires, or

                  (c)   if he ceases to be an Eligible Employee, or

<PAGE>
                                                                         Page 31

                  (d)   if he is suspended or absent from work for more than 3
                        years where he is receiving full-time education
                        connected with his employment or is seconded to another
                        employer or 1 year in any other case (or any longer
                        period agreed by the Principal Company if suspension or
                        absence is due to Ill-health or National Service)
                        unless, at the request of the Principal Company and with
                        the approval of the Board of Inland Revenue the Trustees
                        decide that he need not leave the Plan.

                  The benefits payable during the lifetime of a person who
                  leaves the Plan are specified in Rule 9 (pension or refund of
                  contributions) and Rule 11 (lump sum on retirement) and the
                  benefits payable on his death are specified in Sub-rules 12(B)
                  or (D) (lump sum) and Rule 14 (dependants benefits). His
                  options to have a transfer value paid to another Plan or to a
                  policy are set out in Rule 10.

                  A person ceases to be a Member on leaving the Plan although
                  referred to as a Member in relation to any benefit to which he
                  or any other person may be entitled or prospectively entitled
                  under the Rules in respect of his membership of the Plan.

- Leaving the Plan Life Assurance membership

            (2)   A person shall cease to be a Life Assurance Member on his
                  ceasing to satisfy the conditions set out in (A)(5) of this
                  Rule.

 - Employment with an overseas employees

      (D)   (1)   This Sub-rule (D) applies to employees of Participating
                  Employers which are not resident in the employer United
                  Kingdom (herein referred to as "Overseas Employers") and
                  overrides any other provisions of the Plan which are
                  inconsistent with it.

            (2)   Except as provided in (3) and (4) membership of the Plan in
                  relation to Service with an Overseas Employer (herein referred
                  to as an "Overseas Employment") shall be permissible only
                  while the Eligible Employee is chargeable to United Kingdom
                  income tax under Case I or II of Schedule E of the Act in
                  relation to that Overseas Employment and does not qualify for
                  a deduction of 100 per cent. under section 193(1) of the Act.

<PAGE>
                                                                         Page 32

            (3)   If it appears to the Trustees that a Member's or Life
                  Assurance Member's remuneration from an Overseas Employment
                  will cease to be effectively chargeable to United Kingdom
                  income tax under Case I of Schedule E because the periods he
                  will spend overseas are likely to qualify him for the 100 per
                  cent. deduction under section 193(1) of the Act, the Trustees
                  may permit his membership of the Plan in relation to that
                  Service to remain for up to 3 years or (if earlier) until he
                  becomes a member of another occupational scheme providing
                  relevant benefits as defined in section 612(1) of the Act, if
                  it appears to the Trustees that in that period he will again
                  become effectively chargeable to United Kingdom income tax
                  under Case I or II of Schedule E.

            (4)   If a Member's or Life Assurance Member's membership of the
                  Plan in relation to an Overseas Employment ceases to be
                  permissible under (2) or (3) above and that is his only
                  employment with the Participating Employers, he shall
                  thereupon leave the Plan as provided in (C) of this Rule as if
                  he had ceased to be an Eligible Employee, and the Trustees
                  shall notify the Member or Life Assurance Member of the fact
                  in writing.

            (5)   In calculating the maximum benefits and contributions under
                  Sub-rule 32(A) (Inland Revenue limitations) in respect of a
                  Member's or Life Assurance Member's Overseas Employment
                  account shall be taken only of any period and the remuneration
                  relating to it during which he satisfies the conditions set
                  out in (2) or (3) above and in calculating the overall maximum
                  benefits for a Member to whom this Sub-rule applies his
                  Service with an Overseas Employer shall not be aggregated with
                  any other period of his Service unless the Board of Inland
                  Revenue agrees.

<PAGE>
                                                                         Page 33

PART III - CALCULATION AND PAYMENT OF CONTRIBUTIONS

MEMBER'S CONTRIBUTIONS

- ordinary

4.    (A)   In each Plan Year each Member shall (except as set out below and
            subject to Rules 25 (Temporary absence from work) and 26 (Absence
            due to pregnancy)) pay Member's Ordinary Contributions of 5 per
            cent. of Pensionable Salary.

            Where Member's Ordinary Contributions are payable for a period which
            is not a complete Plan Year, the amount payable shall be
            proportionately adjusted in a manner to be decided by the Trustees.

            No Member's Ordinary Contributions shall be payable before the First
            Contribution Date or after the Final Contribution Date.

            Members' Ordinary Contributions shall be taken into account by the
            Trustees in calculating the amount payable by each Participating
            Employer under Rule 5.

- voluntary
limits and payment conditions

      (B)   (1)   A Member can pay Member's Voluntary Contributions of any
                  amount he chooses but subject to the following conditions:

                  (a)   the Trustees may require a Member to give written notice
                        (of a period not exceeding 12 months) specifying the
                        amount of Member's Voluntary Contributions he intends to
                        pay or any variation of the rate at which he is paying
                        them, and

                  (b)   a Member is not permitted to pay Member's Voluntary
                        Contributions in any Tax Year of less than any minimum
                        amount specified by the Trustees. On and after 6th April
                        1988 that minimum amount will not exceed the greater of
                        3 times the weekly rate of the Lower Earnings Limit for
                        that Tax Year and 0.5 per cent of the Member's earnings
                        from the Participating Employers for that Tax Year
                        excluding any earnings on which Class I National
                        Insurance Contributions are not payable.

period of payment

            (2)   Unless the Trustees otherwise decide a Member is not permitted
                  to pay Member's Voluntary Contributions before the First
                  Contribution Date or after the Final Contribution Date.

<PAGE>
                                                                         Page 34

benefits from Voluntary
Contributions

            (3)   After consulting the Member (if he is then living) the
                  Trustees will choose from the list in Sub-rule 16(A)(2)
                  (Discretionary benefits) the benefits to be given for his
                  Member's Voluntary Contributions. The chosen benefits will be
                  subject to the following conditions:

                  (a)   they will be subject to the Inland Revenue limitations
                        referred to in Sub-rule 32(A), and

                  (b)   their amount must be reasonable having regard to the
                        amount of the Member's Voluntary Contributions and
                        (unless the benefit or benefits are money purchase
                        benefits) the value of the other benefits under the
                        Scheme;

                  (c)   they can only include a lump sum payable to the Member
                        when his pension starts if

                        (1)   payment of his Member's Voluntary Contributions
                              started before 8th April 1987, or

                        (2)   his pension under the Scheme would otherwise be a
                              Trivial Pension, or

                        (3)   he is in exceptional circumstances of serious
                              Ill-health, or

                        (4)   that would not prejudice approval of the Scheme
                              under the Act.

                        For the purpose of deciding whether any Transferred
                        Employee Contributions which represent a Member's
                        voluntary contributions can be used to provide a lump
                        sum payable to him when his pension starts, they will be
                        treated as if he had paid them to the Scheme as Member's
                        Voluntary Contributions.

segregated Voluntary
Contributions

            (4)   (a)   Where the basis on which the Trustees arrange for the
                        application of Member's Voluntary Contributions meets
                        the segregation conditions in (b) below, the additional
                        provisions in this paragraph (4) and in Rule 53(c)
                        (treatment of Member's Voluntary Contributions on
                        winding-up) will apply to those contributions unless the
                        Trustees decide that they will not.
<PAGE>

                                                                         Page 35

segregation conditions

                  (b)   The segregation conditions are:

                        (1)   that the assets (including cash) representing the
                              Member's Voluntary Contributions and the income
                              from them are held by the Trustees separate from
                              all other assets of the Fund, and

                        (2)   that the Member's Voluntary Contributions will be
                              used to provide benefits which are equivalent on a
                              money purchase basis to those contributions and
                              the investment return on them.

investment

                  (c)   The investment under Rule 39 of each Member's Voluntary
                        Contributions will be recorded in a separate account
                        maintained by the Trustees. The amount standing to the
                        credit of the Member in that account at any time (his
                        "Voluntary Contributions Fund") will be calculated on
                        the basis considered by the Trustees to be appropriate
                        having regard to the way in which the Member's Voluntary
                        Contributions are invested.

expenses

                  (d)   Any expenses incurred by the Trustees in investing a
                        Member's Voluntary Contributions or using the Member's
                        Voluntary Contributions Fund to provide benefits will be
                        taken into account in calculating his Member's Voluntary
                        Contributions Fund unless and to the extent that the
                        Principal Employer decides that Rule 47 (Scheme
                        expenses) will apply to those expenses.

methods of securing benefits

                  (e)   The benefits chosen by the Trustees under paragraph (3)
                        above will be provided in one or more of the following
                        ways as the Trustees decide consistent with approval of
                        the Scheme under the Act:

                        (1)   by being paid out of the Member's Voluntary
                              Contribution Fund as and when they are due;

                        (2)   by securing them under the Scheme on the basis
                              that the appropriate part of the Member's
                              Voluntary Contributions Fund will be merged with
                              the other assets of the Fund. That appropriate
                              part will be calculated by the Trustees on the
                              advice of the Actuary;

<PAGE>

                                                                         Page 36

                        (3)   by using all or part of the Member's Voluntary
                              Contributions Fund to secure them under an annuity
                              policy or policy of assurance under Rule 39
                              (Investment of Fund) or under Rule 24 (Securing
                              benefits outside the Scheme by purchase of
                              policies).

surplus voluntary contributions

            (5)   In relation to any Member who first receives any retirement
                  benefit under the Scheme after 26th July 1989, this Sub-rule
                  is subject to the provisions of Part III of Schedule 6 to the
                  Finance Act 1989 concerning the return of surplus funds
                  arising from voluntary contributions in the same manner as if
                  those provisions applied directly to the Scheme (whether or
                  not this is the case). The Trustees may also extend the
                  application of those provisions to this Sub-rule in respect of
                  any other Members if approval of the Scheme under the Act
                  would not thereby be prejudiced.

- collection

      (C)   Each Participating Employer shall collect from the Members in its
            Service (by deduction from their earnings or otherwise) the
            contributions payable by such Members under this Rule and pay them
            to the Trustees in such manner and at such intervals as the Trustees
            may require.

- unpaid

      (D)   In any case where contributions being payable by a Member under the
            Rules in any Plan Year have not been fully paid the amount of any
            benefit or benefits payable in respect of the Member under the Plan
            shall be adjusted to such amount as the Trustees shall determine to
            be appropriate to the circumstances having regard where appropriate
            to the contracting-out requirements of the Pensions Act.

- maximum yearly contribution

      (E)   The total contributions payable by a Member are subject to the
            limitations and restrictions referred to in Sub-rule 32(A).

EMPLOYER'S CONTRIBUTIONS

5.    The Participating Employers shall pay to the Plan such contributions in
      each Plan Year as may from time to time in the opinion of the Trustees
      (having regard to the advice of the Actuary and after taking into account
      the assets of the Fund) be required to enable the benefits of the Plan to
      be maintained.

<PAGE>

                                                                         Page 37

      The sums payable by the Participating Employers shall be agreed between
      them, or (in default of agreement) shall be determined from time to time
      by the Principal Company, having regard to the Members for the time being
      in the service of the Participating Employer and the benefits which in the
      opinion of the Principal Company are related to such service.

<PAGE>

                                                                         Page 38

PART IV - CALCULATION AND PAYMENT OF BENEFITS

Subject to the Rules the following benefits will become payable according to the
event which happens except where a Member has been a Part-time Member during
part (but not all) of his Pensionable Service. In that case the benefits for and
in respect of him under the Plan will be adjusted by the Trustees in a manner
which does not prejudice approval of the Plan under the Act having regard to the
advice of the Actuary and the contracting-out requirements of the Pensions Act
and will be notified in writing to the Member.

NORMAL RETIREMENT PENSION

6.    (A)   On retirement from Service on the Normal Retiring Date a Member
            shall be entitled to a yearly pension (herein referred to as the
            "Normal Retirement Pension") payable as stated in Rule 17 for the
            remainder of his life.

            The Normal Retirement Pension shall be equal to 2/3rds of Final
            Remuneration or, if less, an amount calculated as:

            (1)   For a Pre-1985 Senior Executive Member the total of:

                  (a)   1/30th of Final Pensionable Salary multiplied by his
                        Pensionable Service completed before 6th April 1988; and

                  (b)   the greater of:

                        (1)   1/30th of Final Pensionable Salary multiplied by
                              his Pensionable Service completed after 5th April
                              1988; and

                        (2)   the Money Purchase Pension.

            (2)   For a Pre-1988 Senior Executive Member, the total of:

                  (a)   1/60th of Final Pensionable Salary multiplied by his
                        Pensionable Service completed as a Staff Member before
                        6th April 1988;

                  (b)   1/30th of Final Pensionable Salary multiplied by his
                        Pensionable Service completed as a Senior Executive
                        Member before 6th April 1988; and
<PAGE>

                                                                         Page 39
      (c)   The greater of:

            (1)   1/30th of Final Pensionable Salary multiplied by his
                  Pensionable Service completed as a Senior Executive Member
                  after 5th April 1988; and

            (2)   the Money Purchase Pension.

(3)   For any other Member the total of:

      (a)   1/60th of Final Pensionable Salary multiplied by his Pensionable
            Service (if any) completed before 6th April 1988; and

      (b)   the greater of:

            (1)   the total of:

                  A.    1/60th of Final Pensionable Salary multiplied by his
                        Pensionable Service completed as a Staff Member after
                        5th April 1988;

                  B.    1/45th of Final Pensionable Salary multiplied by his
                        Pensionable Service completed as an Executive Member
                        after 5th April 1988; and

                  C.    1/30th of Final Pensionable Salary multiplied by his
                        Pensionable Service completed as a Senior Executive
                        Member after 5th April 1988;

            and

            (2)   the Money Purchase Pension.

<PAGE>

                                                                         Page 40

      (B)  If the Member's Contracted-out Employment ends before either Normal
           Pension Date or Pensionable Age the yearly pension payable under this
           Rule will, if necessary, be increased from whichever is the later of
           Normal Pension Date and Pensionable Age so that it is not less than
           the Member's Anti-franking Minimum calculated in accordance with
           Sub-rule 56(F).

EARLY RETIREMENT PENSION

7.    On retirement from Service before the Normal Retiring Date, then if such
      retirement occurs

      (a)   on or after whichever is the later of:

            (1)   the date which is 10 years before the Normal Retiring Date;
                  and

            (2)   the date on which the Member completes 10 years' Pensionable
                  Service;

            and the Principal Company agrees that the Member may be offered an
            immediate pension under this Rule, or

      (b)   on account of Incapacity,

a Member shall subject as herein provided be entitled if he shall so elect, as
an alternative to the benefit under Rule 9 (Benefits on leaving the Plan), to a
yearly pension (herein referred to as the "Early Retirement Pension"). Except in
cases of Incapacity a Member shall not be entitled to elect an Early Retirement
Pension unless the amount of the yearly pension otherwise payable to him under
Rule 9 at Normal Retiring Date exceeds the Guaranteed Minimum. The Early
Retirement Pension shall be payable as stated in Rule 17 for the remainder of
the life of the Member.

<PAGE>

                                                                         Page 41

The Early Retirement Pension shall, except as provided below, be the lesser of:

(a)   an amount calculated using the formula

            A x B
            ------
              C

      Where

      A     is 2/3rds of Final Remuneration

      B     is Pensionable Service

      C     is the period which would have been Pensionable Service had the
            Member remained in Service and not left the Plan until Normal
            Retiring Date;

or

(b)   an amount calculated in accordance with Sub-rule 6(A)(l) (2) or (3)
      (Normal Retirement Pension) as appropriate according to category of
      membership

reduced, except as described in paragraphs (i) to (iv) below, by

(1)   1/3 per cent. for each complete month by which the 55th birthday, or the
      date of retirement if later, precedes Normal Retiring Date, and

(2)   an amount decided by the actuary to be reasonable in respect of each
      complete month by which the date of retirement precedes the 55th birthday.

Provided that:

(i)   this reduction shall not apply to any part of the Early Retirement Pension
      which is calculated by reference to the Member's Money Purchase Fund; and

(ii)  this reduction shall not apply to the Early Retirement Pension payable to
      a Member who is not more than 10 years' from Normal Retiring Date and is
      retiring at the request of the Principal Company.

(iii) the Principal Company may in any case direct that no reduction shall apply
      to the Early Retirement Pension.

If the amount of Early Retirement Pension calculated as herein provided is less
than the Guaranteed Minimum the amount of the Early Retirement Pension shall be
determined by the Trustees having regard to the advice of the Actuary but so
that

<PAGE>

                                                                         Page 42

(a)   the amount of the Early Retirement Pension payable in respect of any
      period after Pensionable Age shall not be less than the Guaranteed Minimum

(b)   the aggregate value of the Early Retirement Pension shall be equivalent to
      a yearly pension of the amount calculated as first provided above

(c)   the amount of pension payable in respect of the period before Pensionable
      Age and after the exercise of any option in respect thereof under the
      Rules shall not be less than such amount as the Trustees may from time to
      time determine.

The Early Retirement Pension calculated as set out above will, if necessary, be
increased so that its value is not less than the value of the Deferred Pension
to which the Member would have been entitled if he had not elected to have an
Early Retirement Pension.

At the request of a Member the Trustees (to the intent that the Member's total
pension during his retirement may remain of an approximately level annual
amount) may determine that the Early Retirement Pension (whilst remaining
unchanged in value) shall be payable at an increased rate until the expected
date of commencement of any pension to which the Member is prospectively
entitled under any scheme of national insurance or social security and at a
reduced rate not being less than the Guaranteed Minimum thereafter. The amount
of any benefit payable under the Plan on the death of a Member who elects this
option shall be determined by the Trustees having regard to the advice of the
Actuary.

LATE RETIREMENT PENSION

8.    In the event of retirement from Service being postponed until after the
      Normal Retiring Date, a Member shall be entitled to a yearly pension
      (herein referred to as the "Late Retirement Pension") on such retirement
      except that a Member whose retirement has been so postponed shall be
      treated as having retired for the purposes of this Rule:

      (a)   in the case of a Member who is a Class B Member or a Class C Member
            (including a Member who is a Class B Member or Class C Member for
            the purposes of this paragraph by virtue of Sub-rule 32(C) (Inland
            Revenue Limits)):

            (1)   on the Member's 70th birthday in the case of a male or 65th
                  birthday in the case of a female if his retirement is to be
                  postponed beyond such date, unless he elects not to be so
                  treated, or

<PAGE>

                                                                         Page 43

            (2)   subject to the consent of the Principal Company and at the
                  discretion of the Trustees, on such date occurring on or after
                  the Normal Retiring Date and before his retirement as the
                  Member may select.

      (b)   in the case of a Member who is a Class A Member (including a Member
            who is a Class A Member for the purposes of this paragraph by virtue
            of Sub-rule 32(C)) on the earlier of the actual date of retirement
            and the Member's 75th birthday except that payment of the Member's
            Guaranteed Minimum Pension may not be postponed beyond a male
            Member's 75th birthday or a female Member's 75th birthday without
            the Member's agreement

The Late Retirement Pension will be payable as stated in Rule 17 for the
remainder of the life of the Member and will be an amount calculated in
accordance with Rule 6 (Normal Retirement Pension) (but excluding any
application of the Anti-franking Minimum) increased by an amount decided by the
Trustees on account of payment from a date later than the Normal Retiring Date.

The increase in any part of the pension which is calculated by reference to the
Member's Money Purchase Fund shall not be less than the equivalent increase from
the Normal Retiring Date calculated by using the Money Purchase Interest Rate.

The amount of a Member's Late Retirement Pension will, if necessary, be
increased from its commencement so that it is not less than the Member's
Anti-franking Minimum in accordance with Sub-rule 56(F).

BENEFITS ON LEAVING THE PLAN

9.    This Rule applies to a Member who leaves the Plan before the Normal
      Retiring Date, whether voluntarily or because he leaves Service or ceases
      to be an Eligible Employee, as provided in Sub-rule 3(C), without being
      entitled to an Early Retirement Pension.

- Deferred Pension

      (A)   On a Qualifying Member leaving the Plan he shall (subject as
            hereinafter provided) become entitled to a yearly pension (herein
            referred to as "the Deferred Pension") payable as stated in Rule 17
            from

            (1)   if the Member is a man, the Normal Retiring Date,

            (2)   if the Member is a woman, the later of the date she leaves
                  Service and Pensionable Age

<PAGE>

                                                                         Page 44

            and will cease to be payable on the Member's death.

            The Deferred Pension (including any discretionary increases therein
            made up to the date it commences) shall be the total of:

            (1)   during any period which is after Pensionable Age and before
                  Normal Retiring Date, equal to the Guaranteed Minimum,

            (2)   during any subsequent period an amount equal to the total of:

                  (a)   the Revaluation Increase, plus

                  (b)   the lesser of:

                        (1)   an amount calculated using the formula

                                  A x B
                                  -----
                                    C

                              Where

                              A.    is 2/3rds of Final Remuneration

                              B.    is Pensionable Service

                              C.    is the period which would have been
                                    Pensionable Service had the Member not left
                                    the Plan until Normal Retiring Date, and

                        and

                        (2)   an amount calculated in accordance with Sub-rule
                              6(A)(1) (2) or (3) (Normal Retirement Pension) as
                              appropriate according to category of membership
                              but ignoring the references to the Money Purchase
                              Pension.

<PAGE>

                                                                         Page 45

                        Provided that where the Trustees, having regard to the
                        advice of the Actuary, determine that, for a Member to
                        whom this paragraph (2)(b)(2) applies, the Member's
                        Money Purchase Pension at the Normal Retiring Date
                        exceeds the aggregate of:

                              A.    the amount calculated in accordance with
                                    Sub-rule 6(A)(1)(b)(1), Sub-rule 6(A)(2)(c)
                                    (1) or Sub-rule 6(A)(3)(b)(1) (as
                                    appropriate), and

                              B.    the part of the Revaluation Increase which
                                    is attributable to Pensionable Service
                                    completed after 5th April 1988,

                              the Deferred Pension shall be increased by the
                              amount of the excess.

                  A Member shall become entitled to the Deferred Pension only on
                  his survival to the Normal Retiring Date or as the case may be
                  on his survival to the alternative date selected as provided
                  in (B) of this Rule.

                  The Deferred Pension will, if necessary, be increased from
                  Normal Retiring Date (or if later from Pensionable Age) so it
                  is not less than the Revaluation Increase (if any) plus the
                  Member's Anti-franking Minimum calculated in accordance with
                  Sub-rule (F)(2) of Rule 56 - (Contracting-out of the State
                  Earnings Related Pension Scheme).

- Alternative date for payment of Deferred Pension

      (B)   Subject as provided below, the Deferred Pension shall in lieu of
            being payable from the date specified in (A) of this Rule be payable
            from such of the following dates as the Member may select by notice
            in writing to the Trustees before his pension is due to commence
            under (A) of this Rule namely:

            (1)   an earlier date, except in cases of Incapacity, not earlier
                  than a date

                  (a)   on or after whichever is the later of

                        (1)   the date which is 10 years before the Normal
                              Retiring Date,

<PAGE>

                                                                         Page 46

                        (2)   the date on which the Member would have completed
                              10 years' Pensionable Service had he remained in
                              the Plan, and

                        (3)   the date on which the Member reaches age 50.

            (2)   a later date but not later than the earlier of

                  (1)   in the case of a Member who is a Class B Member or a
                        Class C Member (including a Member who is a Class B
                        Member or a Class C Member for the purposes of this
                        paragraph by virtue of Sub-rule 32(C) (Inland Revenue
                        limits)) his 70th birthday (unless he is still in
                        Service),

                  (2)   in the case of a Member who is a Class A Member
                        (including a Member who is a Class A Member for the
                        purposes of this paragraph by virtue of Sub-rule 32(C))
                        his 75th Birthday, and

                  the date he ceases to be in employment

      A Member shall not be permitted to select an alternative date under this
      Sub-rule:

      (a)   unless the Trustees so agree and he gives them any evidence of his
            present health which they may require, or

      (b)   if it would result in the pension payable under the Plan to him or
            to his widow or widower being less than the Guaranteed Minimum, or

      (c)   if he is in Service and the alternative date is before his Normal
            Retiring Date.

      If payment of the Deferred Pension begins before or after Normal Retiring
      Date, its amount and terms and conditions and the amount of any benefit
      payable on the Member's death shall be determined by the Trustees having
      regard to the advice of the Actuary and the contracting-out requirements
      of the Pensions Act and shall be notified in writing to the Member. The
      value of the benefits payable to or in respect of the Member shall not be
      less than it would have been if the Deferred Pension had been payable from
      Normal Retiring Date.

<PAGE>

                                                                         Page 47

- refund of pre April 1975 contributions and calculation of residual Deferred
Pension

      (C)   A Member to whom a Deferred Pension applies who leaves Service
            before 28th February 1991 may elect to take a refund of Member's
            Contributions paid before the 6th April 1975 less any tax for which
            the Trustees may be accountable under Rule 18.

            An election to take a refund of Member's Contributions under this
            Sub-rule shall, subject to the provisions of Rule 26 (Absence due to
            pregnancy), be made by notice in writing to the Trustees:

            (1)   before the Member leaves Service, or

            (2)   on a date selected by the Member occurring after he leaves
                  Service and before the earliest of (a) 28th February 1991, (b)
                  the Normal Retiring Date and (c) the date the Deferred Pension
                  was due to commence

            provided that the Member has not then received a cash sum from any
            Associated Scheme which does not represent a refund of his
            contributions to that Associated Scheme.

      On an election being so made the Trustees shall, as soon as practicable
      but not before the Member leaves Service, refund the relevant Member's
      Contributions to him. The Deferred Pension and any benefits payable on the
      death of a Member who takes a refund of Member's Contributions under this
      Sub-rule shall be reduced to an amount which in the opinion of the
      Trustees is appropriate having regard where applicable to the preservation
      requirements set out in sections 69 to 82 of the Pensions Act and to the
      contracting-out requirements of the Pensions Act.

- refund of all contributions

      (D)   On a Member who is not a Qualifying Member leaving the Plan before
            the Normal Retiring Date he shall (subject as hereinafter provided)
            become entitled to

            (1)   a refund of Member's Contributions, less the Contracting-out
                  Deduction and any tax for which the Trustees may be
                  accountable under Rule 18, payable on the date he leaves the
                  Plan or as soon as practicable thereafter, together with

            (2)   unless a contributions equivalent premium has been paid (or
                  credited as paid) in respect of the Member under section 55(2)
                  of the Pensions Act, a yearly pension payable as stated in
                  Rule 17 from Pensionable Age for the remainder of the Member's
                  life of an amount equal to the Guaranteed Minimum.

<PAGE>

                                                                         Page 48

OPTIONS ON LEAVING THE PLAN
- statutory option to buy-out or transfer

10.   (A) A Member who leaves the Plan at least one year before Normal Retiring
      Date has the right conferred by Chapter IV of Part IV of the Pensions Act
      ("the Statutory Transfer Option") to take the cash equivalent of part or
      all of his benefits under the Plan. Unless a Member's Statutory Transfer
      Option is lost as set out below it remains available until the later of
      one year before his Normal Retiring Date and the date which is 6 months
      after he leaves the Plan. A Member's Statutory Transfer Option is lost if:

            (1)   he rejoins the Plan after not more than one month;

            (2)   in the case of a female Member who has been absent from work
                  due to pregnancy, her Service again becomes Pensionable
                  Service because she exercises her statutory right to return to
                  work;

            (3)   any part of his pension or benefit instead of pension becomes
                  payable before Normal Retiring Date;

            (4)   the Plan is wound up;

            (5)   the Trustees have purchased a Paid-up Policy for the Member
                  under Sub-rule (D) of this Rule in substitution for all of his
                  benefits under the Plan.

            The Statutory Transfer Option is for convenience described below.

            A Member's Statutory Transfer Option is to require the Trustees to
            use his cash equivalent in all or any of the following ways:

            (1)   to acquire benefits under an occupational pension scheme which
                  satisfies the requirements of the Inland Revenue and, if the
                  cash equivalent is in respect of Guaranteed Minimum Pension
                  benefits, which satisfies the requirements set out in Sub-rule
                  28(E) (Transfers to another scheme - transfer of GMPs);

            (2)   to acquire benefits under a personal pension scheme which is
                  approved by the Board of Inland Revenue under Chapter IV, Part
                  XIV, of the Act or otherwise satisfies the requirements of the
                  Inland Revenue;

            (3)   for purchasing one or more Paid-up Policies.

<PAGE>

                                                                         Page 49

      A Member's cash equivalent for the purposes of the Statutory Transfer
      Option is the cash equivalent (calculated by the Trustees in a manner
      verified by an actuary as satisfying the statutory requirements) of:

      (a)   if the Member voluntarily left the Plan after 5th April 1988 but
            remains an Eligible Employee

            (1)   the proportion of the benefits which have accrued to or in
                  respect of him under the Plan as a result of his actual
                  Service that his Service after 5th April 1988 is of his total
                  Service, and

            (2)   any benefits credited to or in respect of him after 5th April
                  1988 for Service which is notionally attributed to him or
                  treated by the Plan as being longer or shorter than it
                  actually is;

      (b)   in any other case, the benefits which have accrued to or in respect
            of him under the Plan excluding any part of them for which he has
            already taken the cash equivalent referred to in (a) above or taken
            the non-statutory transfer or buy-out option under (B) or (C) of
            this Rule.

      The cash equivalent is reduced (to nil, where appropriate):

      (1)   by an amount sufficient to enable the Trustees to meet their
            liability for the Guaranteed Minimum Pensions of the Member and his
            or her widow or widower if the Member has not requested the Trustees
            to use that amount for purchasing a Paid-up Policy or for securing
            benefits under a contracted-out occupational pension scheme or a
            personal pension scheme which is appropriate for the purposes of
            section 7 of the Pensions Act;

      (2)   to the extent that it represents the Guaranteed Minimum Pensions for
            the Member and his or her widow or widower liability for which has
            been extinguished by payment of a contributions equivalent premium
            under section 55(2) of the Pensions Act.

<PAGE>

                                                                         Page 50

      A Member may only exercise his Statutory Transfer Option by application in
      writing to the Trustees.

      The reduced Deferred Pension and the amount of any benefits payable on the
      death of a Member who has exercised the Statutory Transfer Option in
      respect only of benefits for Service after 5th April 1988 shall be
      calculated by the Trustees having regard to the advice of the Actuary.

      Any provision in the Rules for the Trustees to purchase or secure a
      Paid-up Policy or make a transfer payment to another occupational pension
      scheme or to a personal pension scheme with the Member's consent or at his
      request in substitution for all or any of a Member's benefits under the
      Plan does not apply to any benefits in respect of which he has the
      Statutory Transfer Option. Any such purchase or transfer payment shall
      only be made pursuant to the exercise by the Member of the Statutory
      Transfer Option.

non-statutory transfer to another scheme instead of Deferred Pension or refund
of contributions

      (B)   With the consent of the Trustees a Member who is entitled to a
            Deferred Pension or a refund of Member's Contributions under
            Sub-rule 9(D) and who

            (1)   does not have the Statutory Transfer Option, or

            (2)   voluntarily left the Plan but remains an Eligible Employee and
                  has exercised the Statutory Transfer Option in relation only
                  to benefits which for the purposes of that option are
                  applicable to Service after 5th April 1988 (as described in
                  (A) of this Rule)

            may elect that the Trustees shall make a transfer payment under Rule
            28 (Transfers to personal and occupational pension schemes) in
            substitution for all or some part of the benefits otherwise payable
            to or in respect of him under the Plan.

- non-statutory buy-out option

      (C)   With the consent of the Trustees a Member who is entitled to a
            Deferred Pension or a refund of Member's Contributions under
            Sub-rule 9(D) and who

            (1)   does not have the Statutory Transfer Option, or

<PAGE>

                                                                         Page 51

            (2)   voluntarily left the Plan but remains an Eligible Employee and
                  has exercised the Statutory Transfer Option in relation only
                  to benefits which for the purposes of that option are
                  applicable to Service after 5th April 1988 (as described in
                  (A) of this Rule)

            may elect that the Trustees shall purchase or provide for him a
            Paid-up Policy instead of the benefits otherwise payable to or in
            respect of him under the Plan.

            In that event:

            (a)   The Paid-up Policy shall be issued by the insurance company
                  chosen by the Member.

            (b)   The Member may elect that the benefits payable under the
                  Paid-up Policy shall (to the extent that they exceed the
                  Guaranteed Minimum) be different from those which would
                  otherwise have applied to or in respect of him under the Rules
                  (including any benefits payable on his death) but only if
                  approval of the Plan under the Act would not be prejudiced.

            The different benefits may be so provided notwithstanding that one
            or more persons may thereby cease to be entitled or prospectively
            entitled to benefit by reference to the Member's period of
            membership of the Plan or, as the case may be, become entitled or
            prospectively entitled to benefits of a lesser amount or subject to
            different terms and conditions.

            (c)   The Trustees may decide that the option under this Sub-rule
                  shall apply to a part of the benefits applicable to a Member
                  under the Plan on such basis as they may decide but only if
                  approval of the Plan under the Act is not prejudiced and
                  having regard where appropriate to the contracting-out
                  requirements of the Pensions Act.

            (d)   Where a Paid-up Policy is to be purchased the amount to be
                  applied as a premium under it shall be determined by the
                  Trustees who shall satisfy themselves that it is not less than
                  the value of the benefits which had accrued to or in respect
                  of the Member under the Plan at the date the Paid-up Policy is
                  purchased and which its purchase will extinguish.

<PAGE>

                                                                         Page 52

            (e)   A Member for whom a Paid-up Policy has been so purchased or
                  provided, his personal representatives and any person claiming
                  through him shall cease to have any right whatsoever to resort
                  to the Fund in respect of the benefits which would otherwise
                  have been payable to or in respect of the Member under the
                  Plan.

            Any election under this Sub-rule (C) shall be in such form and
            subject to such conditions as the Trustees may specify.

- Buy-out Option at Trustees' Discretion

      (D)   In the case of a Qualifying Member who would not have been a
            Qualifying Member had the qualifying period been 5 years, the
            Trustees may, if the conditions set out below are satisfied,
            purchase for the Member without his consent a Paid-up Policy in
            substitution for all or some part of the benefits otherwise payable
            to or in respect of him under the Plan.

            The conditions referred to above are:

            (1)   that more than 12 months have elapsed since the Member left
                  the Plan, and

            (2)   that at least 30 days before the Paid-up Policy is to be taken
                  out the Trustees have sent by post to the Member's last known
                  address or delivered personally to him, written notice of
                  their intention to take out the Paid-up Policy, unless when
                  the Trustees enter into an agreement with the relevant insurer
                  to take out the Paid-up Policy, the Member has not made an
                  application (which he has not subsequently withdrawn) to the
                  Trustees to exercise his Statutory Transfer Option, and

            (3)   the Trustees are satisfied that the amount to be applied as a
                  premium under the Paid-up Policy is at least equal to the
                  value of the benefits under the Plan which its purchase will
                  extinguish, and

            (4)   the benefits which the Paid-up Policy is intended to secure
                  are, to the extent that the Trustees think appropriate,
                  different from the benefits under the Plan which its purchase
                  will extinguish.

            A Member for whom a Paid-up Policy has been purchased under this
            Sub-rule, his personal representatives and any person claiming
            through him shall cease to have any rights under the Plan in respect
            of any benefits for which the Paid-up Policy is in substitution.

<PAGE>

                                                                         Page 53

LUMP SUM INSTEAD OF PENSION

- normal basis

11.   (A) A Member to whom this Sub-rule applies may, with the consent of the
      Trustees, convert into a lump sum some or all of his Normal Retirement
      Pension, Early Retirement Pension, Late Retirement Pension (whether
      immediate or prospective) or Deferred Pension (as appropriate) in excess
      of the Guaranteed Minimum. Subject to the proviso at the end of paragraph
      (6) of this Sub-rule, the lump sum shall not exceed:

      (1)   For a Member who is a Class C Member and who retires from Service on
            or after Normal Retiring Date, the fraction of his Final Pensionable
            Salary appropriate to his Pensionable Service according to the table
            below.

<TABLE>
<CAPTION>
Pensionable Service     Fraction of Final Pensionable Salary
-------------------     ------------------------------------
       Years                           80ths
<S>                     <C>
     1 - 8                              3 for each year
         9                             30
        10                             36
        11                             42
        12                             48
        13                             54
        14                             63
        15                             72
        16                             81
        17                             90
        18                             99
        19                            108
     20 or more                       120
</TABLE>

      Note

      The fraction calculated from the above table shall be increased
      proportionately in respect of each complete month (counting as 1/12th of a
      year) of Pensionable Service which is additional to the number of the
      Member's complete years of Pensionable Service but not so as to increase
      the fraction to more than 120/80ths.

<PAGE>

                                                                         Page 54

      (2)   For a Member who is a Class B Member (other than a Member who is a
            Class B Member for limited purposes in accordance with paragraph (1)
            or (3) of Sub-rule 32(C)) and who retires from Service on or after
            Normal Retiring Date, an amount calculated using the following
            formula:

            (A - B) x (D - E) + E
            -----------------
                 (C - B)

            Where:

            A     is the Normal Retirement Pension or Late Retirement Pension as
                  appropriate,

            B     is 1/60th of Final Pensionable Salary multiplied by the lesser
                  of 40 and Pensionable Service,

            C     is 1/30th of Final Pensionable Salary multiplied by the lesser
                  of 20 and Pensionable Service,

            D     is the fraction of Final Pensionable Salary appropriate to the
                  Member's Pensionable Service according to the table in (1)
                  above,

            E     is 3/80ths of Final Pensionable Salary multiplied by the
                  lesser of 40 and Pensionable Service.

      (3)   For a Member who is a Class C Member or a Class B Member (other than
            a Class B Member for limited purposes in accordance with paragraph
            (1) or (3) of Sub-rule 32(C)) and who becomes entitled to an Early
            Retirement Pension because of Incapacity, the amount calculated
            according to (1) or (2) above but using the Pensionable Service he
            would have completed if he had not left the Plan until Normal
            Retiring Date.

      (4)   For any other Member who is a Class C Member or a Class B Member
            (other than a Class B Member for limited purposes in accordance with
            paragraph (1) or (3) of Sub-rule 32(C)), the greater of:

            (a)   3/80ths of Final Pensionable Salary multiplied by Pensionable
                  Service, and

<PAGE>

                                                                         Page 55

            (b)   the proportion of the amount calculated according to (3) above
                  which his Pensionable Service is of the Pensionable Service he
                  would have completed had he not left the Plan until Normal
                  Retiring Date.

      (5)   For a Member who is a Class A Member and who becomes entitled to an
            Early Retirement Pension because of Incapacity the greater of

            (a)   3/80ths of Final Pensionable Salary multiplied by Pensionable
                  Service he would have completed had he not left the Plan until
                  Normal Retiring Date, and

            (b)   2.25 times the yearly amount of the initial pension to which
                  the Member would have become entitled under the Plan if no
                  pension had been exchanged for a cash sum or for any benefits
                  for survivors of the Member.

      (6)   For any other Member who is a Class A Member the greater of

            (a)   3/80ths of Final Pensionable Salary multiplied by Pensionable
                  Service, and

            (b)   2.25 times the yearly amount of the initial pension to which
                  the Member would have become entitled under the Plan if no
                  pension had been exchanged for a cash sum or for any benefits
                  for survivors of the Member.

      Provided that the Trustees may in any particular case allow a Member to
      convert more of his pension in excess of the Guaranteed Minimum into a
      lump sum as long as Inland Revenue limits are observed.

      The rate at which pension is converted into lump sum shall be decided by
      the Trustees and confirmed by the Actuary to be reasonable.

      This Sub-rule applies:

      (a)   to a Member (other than a Member to whom Sub-rule (B) or (C) of this
            Rule applies) who becomes entitled to a yearly pension under the
            Plan in which case the date for payment of the lump sum shall be the
            date upon which the yearly pension is due to commence or as soon as
            practicable thereafter, and

<PAGE>

                                                                         Page 56

      (b)   with the consent of the Principal Company and at the discretion of
            the Trustees to a Member who is a Class C Member or a Class B Member
            for the purposes of this paragraph and who has remained in Service
            after Normal Retiring Date and whose pension has not commenced in
            which case the Member shall be treated for the purposes of this
            Sub-rule as having become entitled to a Late Retirement Pension on
            such date as the Member shall select and the date for payment of the
            lump sum shall be the date selected or as soon as practicable
            thereafter.

- Member in serious Ill-health

      (B)   If a Member is in exceptional circumstances of serious Ill-health,
            the Trustees may at his request before his pension is due to
            commence, convert into a lump sum so much of it as exceeds the
            Guaranteed Minimum. The amount of the lump sum shall (subject to
            Rule 18 (Deduction of tax)) be determined by the Trustees being an
            amount confirmed by the Actuary to be reasonable. The lump sum shall
            be payable on the date upon which the pension was due to commence or
            as soon as practicable thereafter. This Sub-rule shall not apply to
            a person to- whom Sub-rule (C) of this Rule applies.

- Trivial Pensions

      (C)   If a person is entitled to a Trivial Pension the Trustees may
            convert it and (where appropriate and if the Trustees so decide) any
            Trivial Pension contingently payable under the Plan upon his death
            into a lump sum to be paid to such person. The amount of the lump
            sum shall (subject to Rule 18 (Deduction of tax)) be determined by
            the Trustees being an amount confirmed by the Actuary to be
            reasonable and upon its payment each person entitled or contingently
            entitled to a pension so converted shall thereupon cease to be so
            entitled. The lump sum shall be payable on the date upon which such
            person's pension was due to commence (or as soon as practicable
            thereafter) or in the case of a pension which has commenced to be
            paid on such date as the Trustees may decide provided that approval
            of the Plan under the Act is not thereby prejudiced.

LUMP SUM DEATH BENEFITS

12.   If a Member or Life Assurance Member dies the lump sum benefit (if any)
      specified in (A), (B), (C) or (D) (as may be appropriate) of this Rule
      shall be held by the Trustees subject to the provisions of Rule 13
      (Payment of lump sum death benefits).

- lump sum on death in Service before Normal Retiring Date

      (A)   If the Member or Life Assurance Member dies in Service before Normal
            Retiring Date the lump sum benefit shall be the aggregate of

<PAGE>

                                                                         Page 57

            (1)   the Plan Death Benefit which shall be

                  (a)   in relation to a Member equal to 4 times, and

                  (b)   in relation to a Life Assurance Member equal to

                  the annual rate of the Member's basic salary on the date of
                  his death, and

            (2)   in the case of a single Member who has no children, the
                  Member's Contributions

                  Provided that

                  (a)   the Plan Death Benefit shall be subject to any special
                        conditions or restrictions from time to time agreed
                        between the Trustees and the Principal Company. The
                        Trustees shall notify the Member of any such conditions
                        or restrictions,

                        and

                  (b)   unless the Trustees with the consent of the Principal
                        Company otherwise determine, no Plan Death Benefit shall
                        be payable in respect of a Member if though retained in
                        Service

                        (1)   he has ceased to be actively and continuously
                              engaged in Service other than on account of
                              Ill-health for a period exceeding 12 consecutive
                              months or 36 consecutive months if he is in
                              full-time education connected with his employment
                              or seconded to another employer, or

                        (2)   he has left the Plan.

- lump sum on death after leaving the Plan with a deferred pension but before it
commences

      (B)   If the Member dies while prospectively entitled to a yearly pension
            under Rule 9 (Benefits on leaving the Plan), the lump sum benefit
            shall be equal to the Member's Contributions plus an amount equal to
            2 per cent. of the Member's Ordinary Contributions with Interest.

<PAGE>

                                                                         Page 58

- lump sum on death in Service on or after the Normal Retiring Date

      (C)   If the Member dies in Service on or after Normal Retiring Date but
            before his pension under the Plan commences, the lump sum benefit
            shall be equal to an amount determined by the Trustees as being as
            nearly as may be equal to the value (calculated as at the date of
            the Member's death and, if the Trustees so decide, with such
            allowance for discount as they think fit having regard inter alia to
            the manner in which the Fund is for the time being invested) of a
            series of 60 monthly payments each being of the same amount as the
            first monthly payment of the yearly pension to which the Member
            would have been entitled if he had retired on the date of and
            immediately before his death.

            Provided always that no benefit shall be payable under this Sub-rule
            if on the Member's death a Spouse's Pension becomes payable under
            Sub-rule 14(A).

- lump sum on death of a pensioner

      (D)   If the Member dies on or after the date of commencement of his
            pension under the Plan the lump sum benefit shall be an amount
            determined by the Trustees as being as nearly as may be equal to the
            value at the date of the Member's death of the remaining instalments
            of Normal Retirement Pension, Early Retirement Pension, Late
            Retirement Pension or Deferred Pension to which the Member would
            have been entitled if he had survived for the period of 5 years from
            the date his pension commenced. For the purposes of calculating the
            amount of each instalment any increase in the amount of the Member's
            pension which would have occurred after the date of the Member's
            death shall be ignored.

            Provided always that no benefit shall be payable under this Sub-rule
            if on the Member's death a Spouse's Pension becomes payable under
            Sub-rule 14(A).

PAYMENT OF LUMP SUM DEATH BENEFIT

13.   Any sum which is stated to be held by the Trustees subject to the
      provisions of this Rule shall be held by the Trustees upon and subject to
      the following trusts, powers and provisions:

- benefits payable to personal representatives

      (A)   Any benefit which becomes payable on the death in Service on or
            after the 75th birthday of a Controlling Director as defined in
            Sub-rule 55(A) (Guide to Inland Revenue limitations) whose pension
            under the Plan had not commenced to be paid shall be held by the
            Trustees on trust to pay the same as soon as practicable to his
            personal representatives.

- benefits payable under discretionary trusts

      (B)   Any benefit or part thereof to which Sub-rule (A) of this Rule does
            not apply shall be held by the Trustees upon and subject to the
            following powers, trusts and provisions:
<PAGE>

                                                                         Page 59

            (1)   the Trustees shall have the following powers in respect of the
                  whole or any part of the benefit exercisable if they shall in
                  their absolute discretion at any time within eighteen months
                  after the death of the Member so decide namely:

                  (a)   power to pay or apply the same to or for the benefit of
                        (or by way of settlement or otherwise to trustees for
                        the benefit of) such one or more of the Member's
                        Dependants in such shares, upon such trusts and in such
                        manner (including the provision of annuities) but
                        without in any way offending the rule against
                        perpetuities as the Trustees shall decide, and

                  (b)   power to pay the same to the Member's personal
                        representatives.

            (2)   All or any part of the benefit not paid or applied under (1)
                  above shall be held by the Trustees on trust to pay or apply
                  the same to or for the benefit of (or by way of settlement or
                  otherwise to trustees for the benefit of) such one or more of
                  the Member's Beneficiaries in such shares, upon such trusts
                  and in such manner (including the provision of annuities) but
                  without in any way offending the rule against perpetuities as
                  the Trustees shall decide but so that in the event of there
                  being no Beneficiaries of the Member known to the Trustees
                  within two years after his death the benefit shall be retained
                  by the Trustees for better securing the solvency of the Fund.

            (3)   The Trustees may decide that the provisions of (2) above shall
                  apply to all or part of any benefit notwithstanding that the
                  period referred to in (1) above has not expired and to the
                  extent that the Trustees do so decide the powers under (1)
                  above shall be released accordingly. Pending payment or
                  application hereunder of any benefit or part thereof the
                  Trustees may vary or revoke any decision made under the
                  trusts, powers and provisions of this Sub-rule.

            (4)   Any payment or application under this Sub-rule shall be made
                  as soon as practicable within two years after the death of the
                  Member and any amount so paid or applied shall thereupon cease
                  to be part of the Fund provided that the Trustees may deduct
                  therefrom any tax (and any interest thereon) for which they
                  may be accountable before so paying or applying the same.

<PAGE>

                                                                         Page 60

            (5)   In exercise of their discretions under this Sub-rule and
                  without prejudice to the generality thereof the Trustees may
                  pay the benefit or any part thereof to a person who is an
                  infant or to the trustees of any trust being a trust for the
                  benefit only of any one or more of the Member's Dependants or
                  Beneficiaries whether or not such trust is itself of a
                  discretionary nature or includes a provision allowing the
                  trustees thereof to charge remuneration and a receipt given by
                  any person or persons to whom payment is made shall be a
                  complete discharge to the Trustees for such payment.

            (6)   If the Trustees so decide any expenses incurred in connection
                  with the trusts, powers and provisions of this Sub-rule or any
                  payment or application hereunder shall be deducted from the
                  relevant benefit or part thereof on such basis as the Trustees
                  shall in their discretion decide.

            (7)   For the purposes of this Sub-rule:

                  (a)   "Dependants" means in relation to a Member such of the
                        following persons as are living at the date of his
                        death, namely (i) the spouse of the Member, the parents,
                        children and grandchildren of the Member or of the
                        Member's spouse (ii) any persons who in the opinion of
                        the Trustees have at any time been dependent on the
                        Member for the provision of, or have at any time been
                        provided by the Member with, all or any of the ordinary
                        necessaries of life and (iii) any persons (or body of
                        persons whether or not incorporated) of whom the names
                        and particulars, or sufficient details to enable the
                        Trustees to identify the same, have been furnished to
                        the Trustees in writing by the Member as being persons
                        whom the Member wishes the Trustees to consider as
                        possible recipients of any benefit payable on the
                        Member's death. For the purpose of this definition
                        spouse means the wife or husband to whom the Member was
                        married on the date of his death or any former wife or
                        husband of the Member and shall include any wife or
                        husband to whom a Member has at any time been married
                        under a law which as it applied to the particular
                        ceremony and the parties thereto permitted polygamy, and
                        the lawfully adopted child or stepchild of any person
                        shall be treated (as from the date of adoption or the
                        date of becoming such stepchild) as the lawful and
                        natural child of such person.

<PAGE>

                                                                         Page 61

                  (b)   "Beneficiaries" means in relation to a Member (i) such
                        of the following persons as are living at the date of
                        his death, namely, the spouse of the Member, the
                        grandparents, parents, children and grandchildren of the
                        Member or his or her spouse, the brothers and sisters
                        (whether of the whole-blood or half-blood) of the Member
                        or his or her spouse and the children and grandchildren
                        of such brothers and sisters, the uncles and aunts
                        (being brothers and sisters of the whole-blood or
                        half-blood of a parent) of the Member or his or her
                        spouse and the children and grandchildren of any such
                        uncles and aunts, the spouses of any of the
                        above-mentioned grandparents, parents, children,
                        grandchildren, brothers and sisters, uncles and aunts,
                        and (ii) any persons (or body of persons whether or not
                        incorporated) who are entitled to any beneficial
                        interest in the Member's estate under any testamentary
                        disposition made by the Member. For the purposes of this
                        definition the spouse of any person means the wife or
                        husband to whom such person was married at the date of
                        the Member's death and shall include any wife or husband
                        to whom such person was then married under a law which
                        as it applied to the particular ceremony and the parties
                        thereto permitted polygamy, and the lawfully adopted
                        child or stepchild of any person shall be treated (as
                        from the date of adoption or the date of becoming such
                        stepchild) as the lawful and natural child of such
                        person.

                  (c)   The term "Member" shall include a Life Assurance Member.

SPOUSE'S PENSION

14.   (A)   If a married Member dies his Qualifying Spouse shall be entitled to
            a yearly pension (herein referred to as "the Spouse's Pension")
            payable as stated in Rule 17 from the date of the Member's death
            until the Qualifying Spouse's death.

            Subject to paragraph (6) of this Sub-rule, the amount of the
            Spouse's Pension (including any increases therein made up to the
            date it commences) shall be:

- death while a Member before Normal Retiring Date

            (1)   If the Member died in Service before his Normal Retiring Date
                  and before leaving the Plan, equal to 50 per cent. of 2/3rds
                  of his Final Remuneration at the date of his death or, if
                  less, 50 per cent of an amount calculated in accordance with
                  Rule 6(A)(1) (2) or (3) (Normal Retirement Pension) as
                  appropriate according to category of membership but as if:

<PAGE>

                                                                         Page 62

                  (a)   the Member's Pensionable Service was the period he would
                        have completed if he had remained a Member until his
                        Normal Retiring Date; and

                  (b)   the relevant date for the purposes of determining the
                        Money Purchase Pension referred to in Sub-rule
                        6(A)(1)(b), Sub-rule 6(A)(2)(c) and Sub-rule 6(A)(3)(b)
                        (as appropriate) will be the date of the Member's death.

                  This amount shall be reduced by 2 1/2 per cent. for each year
                  (if any) by which the Member was more than 15 years older than
                  his Qualifying Spouse.

- death in Service after Normal Retiring Date

            (2)   If the Member died in Service on or after his Normal Retiring
                  Date, 50 per cent. of the amount calculated in accordance with
                  Rule 8 (Late Retirement Pension) as if he had retired
                  immediately before his death. This amount shall be reduced by
                  2 1/2 per cent. for each year (if any) by which the Member was
                  more than 15 years older than his Qualifying Spouse.

- death after leaving Plan but before pension begins

            (3)   If the Member died after leaving the Plan but before his
                  pension under Rule 9 (Benefits on leaving the Plan) commenced,
                  equal to

                  (a)   if the Member was not a Qualifying Member and had taken
                        a refund of Member's Contributions in excess of the
                        Contracting-out Deduction, the Qualifying Spouse's
                        Guaranteed Minimum (subject to Sub-rule 56(G) (payment
                        of state scheme premiums and corresponding reduction of
                        benefits));

                  (b)   in any other case, the sum of:

                        (1)   50 per cent. of the Member's Deferred Pension
                              calculated as at the date of his death less any
                              part of it which has been extinguished by the
                              payment of a refund of Member's Contributions paid
                              before 6th April 1975 or by the Member exercising
                              his Statutory Transfer Option. The amount so
                              calculated shall be reduced by 2 1/2 per cent for
                              each year (if any) by which the Member was more
                              than 15 years older than his Qualifying Spouse,
                              and

<PAGE>

                                                                         Page 63

            (2)   Revaluation Increase.

-death after pension begins

(4)   If the Member died after becoming entitled to a Normal Retirement Pension,
      Early Retirement Pension, or Late Retirement Pension 50 per cent. of what
      would have been the amount of that pension when the Member died if he had
      not converted any of his pension into a lump sum under Rule 11 or
      surrendered any of his pension to provide dependant's pension under Rule
      15. This amount shall be reduced by 2 1/2 per cent. for each year (if any)
      by which the Member was more than 15 years older than his Qualifying
      Spouse.

death after deferred pension begins

(5)   If the Member died while receiving a pension under Rule 9 (Benefits on
      leaving the Plan) payment of which began at Normal Retiring Date, the sum
      of:

      (a)   the Revaluation Increase and

      (b)   subject to Sub-rule 9(C) (refund of pre April 1975 contributions and
            calculation of residual Deferred Pension), 50 per cent. of the
            lesser of:

            (1)   an amount calculated using the formula:

                        A x B
                        -----
                          C

                  Where

                  A     is 2/3rds of his Final Remuneration

                  B     is Pensionable Service

                  C     is the period Pensionable Service would have been if the
                        Member had not left the Plan until Normal Retiring Date

            (2)   an amount calculated in accordance with Sub-rule 6(A)(1) (2)
                  or (3) (Normal Retirement Pension) as appropriate according to
                  category of membership but ignoring the references to the
                  Money Purchase Pension.

<PAGE>

                                                                         Page 64

            The amount so calculated shall be reduced by 2-1/2 per cent. for
            each year (if any) by which the Member was more than 15 years older
            than his Qualifying Spouse.

            Provided that where the Trustees, having regard to the advice of the
            Actuary, determine that, for a Member to whom paragraph (5)(b)(2)
            above applies, 50 per cent. of the Member's Money Purchase Pension
            at the Normal Retiring Date exceeded the aggregate of:

            A.    the amount calculated in accordance with Sub-rule 6(A)(1)(b)
                  (1), Sub-rule 6(A)(2)(c)(1) or Sub-rule 6(A)(3)(b)(1)
                  (as appropriate), and

            B.    the part of the Qualifying Spouse's Revaluation Increase which
                  is attributable to Pensionable Service completed after 5th
                  April 1988,

            the Spouse's Pension shall be increased by the amount of the excess
            reduced by 2 1/2 per cent. for each year (if any) by which the
            Member was more than 15 years older than his Qualifying Spouse.

The Spouse's Pension payable on the death of a Member before the earlier of his
Normal Retiring Date and the date his pension commences, shall be subject to any
special conditions or restrictions from time to time agreed between the Trustees
and the Principal Company. The Trustees shall notify the Member of any such
conditions or restrictions.

additional provisions relating to Spouse's Pension

(6)   (a)   Except where the Member was receiving an Early Retirement Pension
            when he died and provided the conditions set out in (a) and (b) of
            paragraph (3) of Sub-rule 56(F) are satisfied the Spouse's Pension
            payable under this Sub-rule shall, if necessary, be increased so
            that it is not less than the widow's or widower's (as appropriate)
            Anti-franking Minimum. If the Member died while receiving a Deferred
            Pension and the Member's widow or widower is entitled to a Spouse's
            Pension under paragraph (5) above which includes a Revaluation
            Increase than that Revaluation Increase shall be added to the
            Anti-franking Minimum.

<PAGE>

                                                                         Page 65

      (b)   The Spouse's Pension payable on the death of a Member before the
            earlier of his Normal Retiring Date and the date his pension
            commenced, shall be subject to any special conditions or
            restrictions from time to time agreed between the Trustees and the
            Principal Company. The Trustees shall notify the Member of any such
            conditions or restrictions.

- Child's Pension

(B)   If a Member dies while in Service on or after his Normal Retiring Date or
      after his pension under the Plan commences, each of his Children (subject
      to a maximum of 3 Children at any time shall be entitled to a yearly
      pension (herein referred to as "the Child's Pension"). Where there are
      more than 3 Children, the 3 oldest Children from time to time surviving
      the Member shall each be entitled to a Child's Pension.

      The Child's Pension shall be payable as stated in Rule 17 from the
      Member's death if he dies before his pension commences or otherwise from
      the date one month after the due date of the last instalment of his
      pension, until the earlier of the Child's death and his ceasing to qualify
      as a Child.

      The amount of each Child's Pension shall (except as set out below) be from
      time to time equal to the fraction of the Notional Spouse's Pension
      specified in the table below according to whether there is in any period a
      Qualifying Spouse surviving the Member. For the purposes of this Sub-rule
      the Notional Spouse's Pension is the Spouse's Pension which would have
      been payable if the Member had died leaving a Qualifying Spouse not more
      than 15 years younger than himself and for the purpose of calculating its
      amount the Qualifying Spouse's Revaluation Increase shall be calculated as
      if she did not have a Guaranteed Minimum.

<PAGE>

                                                                         Page 66

<TABLE>
<CAPTION>
                                       Child's Pension for any period
                                     during which there is a Qualifying   Child's Pension for any period during
                                     Spouse surviving the Member, as a     which there is no Qualifying Spouse
Comparative ages of Children from   percentage of the Notional Spouse's   surviving the Member, as a percentage
  time to time surviving he Member               Pension                    of the Notional Spouse's Pension
<S>                                 <C>                                   <C>
          (1)                                     (2)                                    (3)

The eldest or only Child                          50%                                   100%

The second oldest Child                           25%                                    50%

The third oldest Child                            25%                                    50%
</TABLE>

      Any adjustment in the amount of a Child's Pension resulting from the death
      of a Qualifying Spouse or Child or a person ceasing to qualify as a Child
      of the Member, shall have effect from the payment of Child's Pension due
      immediately following that event so that the amount of the Child's Pension
      after adjustment shall be the amount which would have applied had such
      event preceded the Member's death.

      The Child's Pension payable if a Member dies in Service before the earlier
      of his Normal Retiring Date and the date on which his pension under the
      Plan commences will be subject to any special conditions and restrictions
      from time to time agreed between the Trustees and the Principal Company.
      The Trustees shall notify the Member of any such conditions or
      restrictions.

      The Trustees may at any time and for any period vary the amount of Child's
      Pension for some or all of a Member's Children who qualify for Child's
      Pensions under this Sub-rule but not so as to alter the aggregate amount
      of their Child's Pensions from that calculated under this Sub-rule.

- Dependant's Pension

(C)   The Trustees may, at their discretion, pay or apply a yearly pension
      (herein referred to as "the Dependant's Pension") reduced by the Spouse's
      Guaranteed Minimum (if any) to or for the benefit of a Nominated
      Dependant.

<PAGE>

                                                                         Page 67

            The amount of each Dependant's Pension payable on the Member's death
            shall, subject to the following paragraph, be such amount as the
            Trustees determine but so that the aggregate amount, when aggregated
            with the amount of any Spouse's Pension under (A) of this Rule shall
            be equal to the amount of the Spouse's Pension which would have been
            payable under (A) of this Rule if he had been survived by a Spouse
            and no Dependant's Pension had been payable under this Rule.

            The amount terms and conditions of any benefit granted under this
            Sub-rule will be determined by the Trustees having regard to the
            advice of the Actuary and the contracting-out requirements of the
            Pensions Act and will be notified in writing to the Nominated
            Dependant.

SURRENDER OF A MEMBER'S PENSION TO PROVIDE DEPENDANT'S PENSION

15.   The Trustees may, at the request of a Member, determine that, in lieu of
      any benefit or benefits or part thereof to TO PROVIDE DEPENDANT'S PENSION
      which the Member may otherwise become entitled under the Plan, there shall
      be payable to one or more of such Member's spouse and a Dependent Relative
      a pension or pensions commencing on or after the death of the Member.

      The terms and conditions upon which any pension shall become payable under
      this Rule and the appropriate adjustment in the amount and terms and
      conditions applicable to any benefit or benefits to which the Member may
      thereafter become entitled under the Plan shall be determined by the
      Trustees having regard to the advice of the Actuary and where appropriate
      to the contracting-out requirements of the Pensions Act.

DISCRETIONARY BENEFITS

16.   (A)   Upon payment of such additional contributions (if any) as the
            Trustees may require under Rule 5 (Employer's Contributions), the
            Trustees shall grant under the Plan such of the following benefits
            as the Principal Company may request, consistent with approval of
            the Plan under the Act and subject to Subrule 32(A) (Inland Revenue
            limitations), namely:

augmentations

            (1)   an increase in the amount of any pension or other benefit
                  which may become payable to or in respect of a Member or other
                  person under the Plan except that no such increase shall be
                  made in a benefit provided by the exercise of an option under
                  Rule 15 (Surrender of a Member's pension to provide
                  dependant's pension), and

<PAGE>

                                                                         Page 68

persons not otherwise entitled to benefit under the Plan

            (2)   (a)   a pension or an increase in the amount of any pension
                        payable on or after retirement to a person who has to
                        benefit under the Plan completed a period of service
                        with a Participating Employer

                  (b)   a lump sum payable on or after his retirement to a
                        person who has completed a period of service with a
                        Participating Employer except that no such lump sum
                        shall be payable to a person who has previously received
                        a lump sum from the Plan or Associated Schemes

                  (c)   a lump sum payable on the death in specified
                        circumstances of a person in the service of or formerly
                        in the service of a Participating Employer

                  (d)   a pension or pensions payable, after the death in
                        specified circumstances of a person who has completed a
                        period of service with a Participating Employer, in
                        respect of such person's widow, widower or a Dependent
                        Relative.

            The amount of any benefit under this Sub-rule and its terms and
            conditions shall be notified in writing by the Trustees to the
            person by reference to whose service the benefit applies or to the
            person to whom the benefits is to become payable Provided that, in
            any case where a pension or other benefit is granted under this
            Sub-rule, the person by reference to whose service such pension or
            other benefit becomes payable, if not a Member, shall for the
            purposes of Inland Revenue limitations be deemed to be a Member and
            the provisions of Rule 55 (Guide to Inland Revenue limitations)
            shall be read and construed accordingly.

- membership on special terms

      (B)   (1)   Upon payment of such additional contributions (if any) as the
                  Trustees may require under Rule 5 (Employer's contributions)
                  and subject to the provisions of this Sub-rule, a person in
                  the service of or who has completed a period of service with a
                  Participating Employer may if the Principal Company so
                  determines be admitted to membership of the Plan or where
                  appropriate his membership thereof may be continued on special
                  terms as to contributions, benefits or other relevant matters.
<PAGE>

                                                                         Page 69

            (2)   In any case where the Principal Company notifies the Trustees
                  that special terms are to apply in respect of any such person
                  the Trustees will upon receipt of all such information as they
                  may require in relation thereto notify such person in writing
                  of such special terms and the date upon which they are to have
                  effect. As from such date the Rules shall have effect in
                  relation to such person subject to any modifications set out
                  or referred to in such notification and pending the issue
                  thereof shall have effect subject to such modifications as the
                  Trustees shall in their discretion determine to be appropriate
                  in order to give effect to such special terms.

                  No such modification of the Rules shall have effect:

                  (a)   if the Normal Retiring Date would thereby fall before
                        the 60th birthday or after the 75th birthday, or

                  (b)   in relation to a Class B Member or a Class C Member if a
                        Member's Normal Retiring Date would thereby be changed
                        to a date earlier than would otherwise have applied and
                        less than 5 years will elapse before that date occurs

            without the consent of the Board of Inland Revenue or if the
            modification would prejudice approval of the Plan under the Act.

- periodic review of pensions

      (C)   The Principal Company shall review the amount of pensions in payment
            under the Plan at regular intervals and, having regard to any such
            review, may instruct the Trustees to increase the amount of all or
            any of those pensions under and in accordance with (A) of this Rule.
            The interval between pension reviews under this Sub-rule shall not
            exceed 3 years and 6 months.

- benefits affected by statutory earnings cap

      (D)   This Sub-rule applies to any benefit applicable in respect of a
            Member which is affected by the maximum imposed on statutory
            earnings cap relevant annual remuneration ("the earnings cap") by
            Schedule 6 to the Finance Act 1989 or any corresponding requirement
            for approval of the Scheme under the Act. Any benefit so affected is
            referred to in this Sub-rule as a capped benefit.

<PAGE>

                                                                         Page 70

            Unless the Principal Employer decides otherwise any capped benefit
            will be deemed to he increased under (A)(2) so that its amount is
            the same as it would be if the earnings cap did not apply. Any such
            increase will however be limited so that the capped benefit will not
            be larger than the maximum referred to in Sub-rule 32(A) (Inland
            Revenue limitations). That maximum will he calculated having full
            regard to the earnings cap.

            If a capped benefit applicable in respect of a Member is deemed to
            be increased under (A)(2) his Member's Ordinary Contributions will
            be increased appropriately. The amount of the increase will be
            decided by the Trustee having regard to the increase in the capped
            benefit and the advice of the Actuary.

PAYMENT OF PENSIONS

17.   Unless the Trustees otherwise determine any yearly pension under the Plan
      shall be payable monthly in advance on the same day in each month and the
      amount of each monthly payment shall be as nearly as may be practicable
      one-twelfth of the amount of the yearly pension. The first of such monthly
      payments shall be due on the date on which the Member (or other person)
      becomes entitled to the yearly pension and the monthly payment due
      immediately prior to death shall not be apportioned provided that the
      Trustees may in their discretion postpone making any monthly payment until
      such date as they shall determine being a date not later than one calendar
      month following the date on which the monthly payment fell due.

DEDUCTION OF TAX

18.   The Trustees shall be entitled to deduct from any payment or repayment
      under the Plan any tax for which they may be accountable in consequence of
      such payment or repayment.

CONDITIONS FOR PAYMENT OF BENEFITS

19.   All benefits under the Plan (a) shall be subject to deduction of any
      contributions owing by the Member under the Planor appropriate adjustments
      in respect thereof and (b) shall be payable in sterling at the registered
      office of the Principal Company or in such other manner as the Trustees
      may determine and in particular if an annuity policy or annuity contract
      or other policy of assurance granted by an insurance company forms part of
      the Fund the Trustees may from time to time arrange with such insurance
      company to pay any benefit direct to the person or persons to whom such
      benefit is payable under the Plan and may cancel any such arrangements.

<PAGE>

                                                                         Page 71

      Any benefit or part of a benefit to which a person is entitled under the
      Plan shall be payable as at the due date of payment thereof or as soon as
      practicable thereafter provided that any such benefit or part thereof for
      which no claim has been made within the period of six years immediately
      following the due date shall unless the Trustees otherwise decide be
      forfeited and the assets representing it shall be retained as part of the
      Fund except that the Trustees may pay or apply any benefit or part thereof
      which would otherwise be forfeited to or in respect of one or more of such
      person's spouse or Dependent Relatives.

PAYMENTS TO WIDOW, WIDOWER OR OTHER NEXT OF KIN

20.   Any sum or sums of money amounting to L1500 or less which may become
      payable under the Plan whether by way of outstanding instalments of
      pension or otherwise to the personal representatives of a deceased person
      may, at the discretion of the Trustees be paid to the widow, widower or to
      any of the next of kin of such deceased person. The Trustees shall not be
      bound to see to the application of any sum or sums so paid and receipt
      thereof by the person to whom payment is so made shall be a complete
      discharge to the Trustees for such payment in the like manner as if it had
      been paid to the personal representatives of the deceased person and such
      personal representatives and any person claiming through such deceased
      person shall not have any right whatsoever to resort to the Fund in
      respect of any sum or sums so paid.

CLAIMANTS UNABLE TO ACT

21.   (A)   In any case where a Guaranteed Minimum Pension becomes payable to a
            widow or widower who is an infant, the Trustees shall (subject to
            the provisions of (B)(2) of this Rule) pay such benefit to her or to
            him and receipt thereof by such widow or widower shall be a complete
            discharge to the Trustees for such payment.

      (B)   In any case where under the provisions of the Plan:-

            (1)   a benefit (other than a benefit to which Sub-rule (A) of this
                  Rule applies) becomes payable to a person who is unable to act
                  because he is under age of 18, or

            (2)   a benefit (including a benefit to which Sub-rule (A) of this
                  Rule applies) becomes payable to a person who in the opinion
                  of the Trustees is unable to act by reason of any physical or
                  mental incapacity

<PAGE>

                                                                         Page 72

            the Trustees may in their discretion pay the whole or part of such
            benefit to such person or may pay or apply the whole or any part
            thereof in such shares, upon such trusts and in such manner as the
            Trustees shall determine for the maintenance of such person or any
            dependant of such person. In particular the Trustees may pay any
            such benefit or part thereof to the parent or guardian of the person
            who is under age 18 or otherwise unable to act or to any other
            person appearing to the Trustees to be for the time being
            responsible for his or her support or maintenance on the basis that
            the recipient will use the same to defray the expenses of the
            household in which the person for the time being resides or
            otherwise for his or her maintenance as the recipient shall decide.

            Any benefit to which this Sub-rule applies not so paid or applied
            shall be retained by the Trustees for the benefit of such person
            until, in the opinion of the Trustees he is able to act or, as the
            case may be, for his estate. Receipt of such benefit or any part
            thereof by any person, association or corporate body to whom payment
            is made under this Sub-rule shall be a complete discharge to the
            Trustees for such payment.

            For the purposes of this Sub-rule a certificate from a qualified
            medical practitioner to the effect that a person is suffering from
            any physical or mental incapacity may be accepted as conclusive
            evidence of the fact.

POLYGAMOUS MARRIAGES

22.   In any case where it appears to the Trustees that more than one person is
      or may be eligible to claim a widow's or widower's pension under the Plan
      on the death of a Member

      (a)   the Guaranteed Minimum Pension shall be payable to the person (if
            any) entitled under the Social Security Acts 1975 to a widow's or
            widower's Category B retirement pension, widowed mother's allowance
            or widow's pension payable by virtue of the Member's national
            insurance contributions or who would be so entitled to a widow's or
            widower's Category B retirement pension but for section 27(6) of the
            Social Security Act 1975, or, in the case of a female Member, to the
            person, if any, who is her widower for the purposes of section 17(6)
            of the Pensions Act, and

<PAGE>

                                                                         Page 73

      (b)   subject as aforesaid the Trustees may determine that such widow's or
            widower's pension shall be payable in any such case in whole or in
            part to or for the benefit of one or more of any persons who have
            either been through a ceremony of marriage with the Member or in the
            opinion of the Trustees have at any time been dependent on the
            Member for or provided by the Member with all or any of the ordinary
            necessaries of life, and

      (c)   subject as aforesaid, no widow's or widower's pension shall be
            payable under the Plan in any such case.

NON-ASSIGNABILITY OF BENEFITS

23.   No person may assign or charge in any way his beneficial interest under
      the Plan or any part thereof and, if a person shall act in contravention
      of this Rule or do or suffer anything (except as otherwise provided under
      the Plan) whereby his beneficial interest under the Plan or any part
      thereof would but for this Rule become vested in or payable to any other
      person, then (subject to Rules 56 (Contracting-out of the State earnings
      related pension scheme) and 57 (Contracting-out of the old State graduated
      scheme) the first-mentioned person's interest shall cease except that the
      Trustees may in their absolute discretion hold, pay or apply the same to
      or for the maintenance, personal support or benefit of any one or more of
      the following persons, namely the first-mentioned person, his spouse and
      any Dependent Relative provided always that no payment shall be made to an
      assignee.

SECURING BENEFITS OUTSIDE THE PLAN BY PURCHASE OF POLICIES

24.   In any case where:

      (a)   a Member who does not have the Statutory Transfer Option consents to
            the provision of a Paid-up Policy under this Rule, or

      (b)   the Trustees decide it is appropriate in the case of a person in
            receipt of a pension from the Plan,

<PAGE>

                                                                         Page 74

      the Trustees shall purchase or provide (by assignment or otherwise) a
      Paid-up Policy to secure or intended to secure for such Member or other
      person a benefit or benefits of the same kind and amount respectively (as
      nearly as may be) as the benefit or benefits to which the Member or other
      person is entitled or prospectively entitled under the Plan. A person for
      whose benefit a Paid-up Policy has been so purchased or provided, his
      personal representatives and any person claiming through him shall cease
      to have any right whatsoever to resort to the Fund in respect of the
      benefit or benefits so secured or intended to be so secured.

      The Trustees may determine that the provisions of this Rule shall apply to
      a part of the benefit to which a person is entitled or prospectively
      entitled under the Plan on such basis and in all respects as the Trustees
      shall determine provided that approval of the Plan under the Act is not
      thereby prejudiced and having regard where appropriate to the
      contracting-out requirements of the Pensions Act.

      This Rule does not apply to a Member who has the Statutory Transfer
      Option.

<PAGE>

                                                                         Page 75

PART V - MISCELLANEOUS PROVISIONS RELATING TO MEMBERSHIP, CONTRIBUTIONS AND
BENEFITS

TEMPORARY ABSENCE FROM WORK

25.   A Member or Life Assurance Member who remains in Service but is suspended
      from duty or absent from work for a continuous period not exceeding the
      maximum period specified below shall remain a Member or Life Assurance
      Member during that period. If a Member or Life Assurance Member who has
      been so suspended or absent does not cease to be suspended from duty or
      absent from work before the maximum period expires he shall (unless the
      Trustees at the request of the Principal Company and subject to the
      approval of the Board of Inland Revenue otherwise determine) at the end of
      the maximum period (a) if he is a Member, leave the Plan and the
      provisions of Rule 9 (Benefits on leaving the Plan) shall apply or (b)
      cease to be a Life Assurance Member, if he is a Life Assurance Member.

      The maximum period shall be ten years in respect of a Member or Life
      Assurance Member who remains resident in the United Kingdom and three
      years in respect of any other Member or in any case where such suspension
      or absence from duty arises from Ill-health or National Service such
      longer period as the Principal Company shall determine.

      The amount of any benefit payable on the death of the Member or Life
      Assurance Member occurring during or after any such period of suspension
      or absence shall be subject to any limitations or restrictions set out in
      the relevant Rule and subject thereto the following provisions shall apply
      in respect of any contributions payable by and benefits applicable in
      respect of the Member or Life Assurance Member during such period under
      the Plan namely:-

      (a)   in respect of any such period during which remuneration continues to
            be paid by a Participating Employer the amount of any such
            contributions and any such benefit shall subject to paragraphs (c)
            and (d) below continue to be calculated in accordance with Parts III
            and IV of the Rules by reference to such remuneration

      (b)   subject to paragraph (d) below in respect of any such period during
            which no remuneration is paid by a Participating Employer no such
            contributions shall be payable and any such benefits shall be
            adjusted as the Trustees consider appropriate
<PAGE>

                                                                         Page 76

      (c)   the amount of any such contributions and any such benefit which is
            calculated under the Rules otherwise than by reference to the
            Member's or Life Assurance Member's remuneration shall be determined
            by the Trustees

      (d)   in any case where, under a scheme of a Participating Employer, the
            Member or Life Assurance Member is entitled to a continuation of the
            whole or a part of his remuneration in the event of prolonged or
            permanent disablement the amount of any such contributions and any
            such benefit shall in lieu of being the amount calculated by
            reference to paragraphs (a) and (b) above be the amounts applicable
            under the Rules by reference to the Member's or Life Assurance
            Member's remuneration immediately before such period commenced, or
            such other amounts (if any) notified in writing to the members of
            such scheme generally

            and

      (e)   the Principal Company may determine that the amount of any such
            contributions and any such benefit shall in lieu of being the
            amounts calculated by reference to paragraphs (a), (b) or (d) be
            such greater amounts as the Principal Company may determine (subject
            in the case of contributions to the agreement of the Member) and
            notify to the Trustees being amounts not exceeding the amounts
            applicable under the Rules by reference to the Member's or Life
            Assurance Member's remuneration immediately before such period
            commenced increased where appropriate having regard to any increases
            in remuneration which may have been made during such period in
            respect of employees of the Participating Employer in the same
            category of employment.

      This Rule does not apply to a female Member or Line Assurance Member to
      whom Rule 26 applies.

MATERNITY ABSENCE
- application

26.   (A)   This Rule applies to any female Member or Life Assurance Member who
            is absent from work wholly or partly because of her pregnancy and
            who is entitled to rights ("maternity rights") specified in Part III
            of the Employment Protection (Consolidation) Act 1978 ("the 1978
            Act").

- refunds of contributions

      (B)   For the purpose of deciding whether any option to take a refund of
            contributions applies a woman will be treated as remaining in
            Service during any period in which she has maternity rights
            including any period in which her right to return to work is
            postponed.

<PAGE>

                                                                         Page 77

- rights before 23.6.94

      (C)   In the case of a woman with maternity rights expiring before 23rd
            June 1994:

calculation of Pensionable Service

            (1)   Pensionable Service up to the beginning of any period of
                  absence with maternity rights will be treated as continuous
                  with that beginning on the date of her return. The period of
                  absence itself will be ignored unless the Principal Company
                  agrees to it being counted.

effect of pay during absence

            (2)   No payment made to the Member or Life Assurance Member by a
                  Participating Employer in respect of any period of such
                  absence will be taken into account in calculating benefits
                  under the Plan except for the purposes of calculating the
                  Guaranteed Minimum.

death benefits

            (3)   If a Member or Life Assurance Member who is absent from work
                  with maternity rights dies there will be payable the benefits
                  which would have applied had she died in Service without
                  having left the Plan on the day before her absence began. Any
                  lump sum benefit payable under this will be held by the
                  Trustees as set out in Rule 13.

- rights on and after 23.6.94

      (D)   In the case of a woman with maternity rights expiring on or after
            23rd June 1994:

calculation of Pensionable Service

            (1)   when calculating Pensionable Service for a woman who is absent
                  from work with maternity rights any part of the period Service
                  of absence which is statutory maternity leave for the purposes
                  of the 1978 Act or during which she was receiving contractual
                  remuneration or statutory maternity pay from the Participating
                  Employer will be counted in full. Any other part of that
                  absence will count only if she has paid the Member's Ordinary
                  Contributions under (4) which she would have paid had she not
                  been absent during that period or if the Principal Company
                  agrees to the period being counted.

                  If a woman returns to work pursuant to her maternity rights
                  the periods (described in the preceding paragraph) to be
                  counted as Pensionable Service immediately before, during and
                  after her absence will be treated as one unbroken period.

<PAGE>

                                                                         Page 78

benefits for Pensionable Service

            (2)   In respect of any such absence which counts as Pensionable
                  Service under (1), benefits (and the Member's Money Purchase
                  Fund) will be calculated as though the Member was not absent
                  from work and was working in accordance with her normal
                  practice and receiving her normal earnings.

death benefits

            (3)   If a Member or Life Assurance Member who is absent with
                  maternity rights dies:

                  (a)   during absence which is statutory maternity leave for
                        the purposes of the 1978 Act or during which she was
                        receiving contractual remuneration or statutory
                        maternity pay from the Participating Company, there will
                        be payable the benefits which would have applied if she
                        had not been absent and had been working in accordance
                        with her normal practice and receiving her normal
                        earnings;

                  (b)   during absence to which (a) does not apply, there will
                        be payable the benefits which would have applied if she
                        had left Service immediately before she died or any
                        greater benefits notified by the Principal Company to
                        the Trustees.

                  Any lump sum benefit payable under this Sub-rule will be held
                  by the Trustees as set out in Rule 13.

Member's Ordinary Contributions

            (4)   Member's Ordinary Contributions will be payable (unless the
                  Principal Company decides otherwise) during any period of
                  absence in which she is receiving contractual remuneration or
                  statutory maternity pay from the Participating Employer. Those
                  contributions will be calculated by reference to the amount of
                  contractual remuneration or statutory maternity pay paid to
                  her by the Participating Employer during that period.

                  No Member's Ordinary Contributions will be payable during any
                  other period in which she is absent with maternity rights. The
                  Member may on her return to work, with the agreement of the
                  Principal Company, arrange with the Trustees to pay the unpaid
                  Member's Ordinary Contributions she would have paid had she
                  not been absent during that period.
<PAGE>

                                                                         Page 79

TRANSFERS FROM ANOTHER SCHEME
Expressions used

27.   (A)   In this Rule

            "personal pension scheme" means a personal pension scheme within the
            meaning of Section 630 of the Act.

            "protected rights" means rights to money purchase benefits under

            (1)   a personal pension scheme to which the Occupational Pensions
                  Board has issued an appropriate scheme certificate, or

            (2)   an occupational pension scheme which is or has been
                  contracted-out on a money purchase basis,

            which are wholly or partly in substitution for benefits under the
            State earnings related pension scheme.

            "transferring arrangement" means a fund, scheme, arrangement
            (including a personal pension scheme) or policy or contract of a
            like nature to a Paid-up Policy.

- acceptance

      (B)   The Trustees shall if so requested by the Principal Company, accept
            a transfer of assets from a transferring arrangement but only if it
            would not prejudice approval of the Plan under the Act.

- information to be obtained by Trustees

      (C)   In connection with any transfer under this Rule the Trustees shall
            obtain written details from the trustees or other managers of the
            transferring arrangement stating:

            (1)   the extent to which the transfer may be used to provide a lump
                  sum on an employee's retirement including the extent to which
                  any part of the transfer which represents an employee's
                  voluntary contributions to the transferring arrangement may be
                  so used;

            (2)   the extent (if any) to which the transfer arises from an
                  employee's contributions (herein referred to as "Transferred
                  Employee Contributions"), and the extent to which those
                  contributions were made on a voluntary basis;

<PAGE>

                                                                         Page 80

            (3)   such details as the Trustees require of the period of service
                  in the employment to which the transferring arrangement
                  applied. That period will be taken into account under the Plan
                  as Linked Qualifying Service and otherwise for such purposes
                  in such manner and to such extent as the Trustees decide, and

            (4)   any other details required by the Trustees having regard to
                  the contracting-out requirements of the Pensions Act.

- benefits

      (D)   Any transfer under this Rule will be accepted on the basis that:

            (1)   one or more specified persons who are entitled or contingently
                  entitled to rights and benefits under the transferring
                  arrangement will be entitled or contingently entitled to such
                  rights and benefits under the Plan (consistent with approval
                  of the Plan under the Act) as the Trustees shall having regard
                  to the advice of the Actuary arrange;

            (2)   if the transfer is accompanied by a certificate from the
                  trustees or managers of the transferring arrangement to the
                  effect that the transfer is not to be used to provide
                  retirement benefits in lump sum form the benefits arising on
                  retirement from the transfer shall not be paid in lump sum
                  form except to the extent permitted under Sub-rules 11(B)
                  (Member in serious ill-health) and 11(C) (Trivial Pensions) or
                  such other extent which the Trustees are satisfied would not
                  prejudice approval of the Plan under the Act;

            (3)   in relation to a Member who is a Class B Member or Class C
                  Member any benefit on retirement arising from a transfer
                  (other than a transfer from another scheme of a Participating
                  Employer or an Associated Employer) may be paid as a lump sum
                  only if and not exceeding the extent notified to the Trustees
                  by the trustees or managers of the transferring arrangement
                  under (C) of this Rule increased in proportion to any increase
                  in the Index of Retail Prices since the date the transfer was
                  received, unless the Trustees are satisfied that to use the
                  transfer for that purpose to a greater extent would not
                  prejudice approval of the Plan under the Act;

            (4)   the Trustees will ensure that to the extent that the transfer
                  arises from an employee's Transferred Employee Contributions
                  (and only to that extent) it will be treated as contributions
                  paid by him to the Plan;

<PAGE>

                                                                         Page 81

- revaluation of GMP

      (E)   If a transfer accepted under this Rule in the circumstances referred
            to in section 20 of the Pensions Act represents accrued rights to
            guaranteed minimum pensions for a period of contracted-out
            employment for the purposes of the Pensions Act, the following
            conditions will apply:

            (1)   if the transferring arrangement is not a policy of insurance
                  or annuity contract any part of the Guaranteed Minimum which
                  relates to that contracted-out employment may be increased on
                  a basis determined by the Trustees and consistent with the
                  requirements of Regulations 44 and 45 of the Occupational
                  Pension Schemes (Contracting-out) Regulations 1984 instead of
                  in accordance with Orders made under section 148 of the Social
                  Security Administration Act 1992;

            (2)   if the transferring arrangement is a policy of insurance or
                  annuity contract any part of the Guaranteed Minimum which
                  relates to that contracted-out employment will be increased at
                  the rate which would have applied had the transfer not taken
                  place unless the Trustees decide that it will be increased in
                  accordance with Orders made under section 148 of the Social
                  Security Administration Act 1992;

            (3)   the Trustees may pay or reclaim any limited revaluation
                  premium payable or reclaimable under the Pensions Act in
                  respect of any person to whom the transfer relates.

- transfers including protected rights

      (F)   Any transfer which includes the value of protected rights may be
            accepted under this Rule only after 5th April 1990 and if the person
            for whom the transfer is made ("the transferee") is employed by a
            Participating Employer or if the transfer is otherwise permissible
            under the Protected Rights (Transfer Payments) Regulations 1987. The
            benefits provided under this Rule in consequence of any such
            transfer shall include Guaranteed Minimum Pensions for the
            transferee and his widow or widower in respect of the period of
            employment which gave rise to the protected rights equal to those to
            which the transferee and his widow or widower would have been
            treated as being entitled by section 48 of the Pensions Act if the
            transfer payment had not been made.

<PAGE>

            Any Guaranteed Minimum Pension provided under this Sub-rule shall be
            increased for each complete Tax Year which is after the period which
            gave rise to the protected rights in accordance with Orders made
            under section 148 of the Social Security Administration Act 1992
            unless the Trustees determine that the increases shall be made in
            accordance with either section 16(3) of the Pensions Act (limited
            revaluation) or section 55(5) of the Pensions Act (fixed rate
            revaluation) as modified, in either case, by regulation 4 of the
            Protected Rights (Transfer Payment) Regulations 1987.

- no offsetting of GMP revaluation

      (G)   If the Trustees accept a transfer to which Sub-rules (E) or (F) of
            this Rule applies, and

            (1)   the person for whom the transfer was accepted does not enter
                  Contracted-out Employment or ceases to be in Contracted-out
                  Employment before Pensionable Age, and

            (2)   under arrangements made under Sub-rule (D) of this Rule any
                  Guaranteed Minimum Pension applicable at the date of transfer
                  is expressed to form part of a larger amount,

      that larger amount shall be increased by the increases in the Guaranteed
      Minimum under Sub-rule (E) or (F) of this Rule.

- transferees not becoming contracted-out

      (H)   If any person for whom rights to a guaranteed minimum pension for
            the purposes of the Pensions Act are transferred to the Plan does
            not enter contracted-out employment under it, the amounts, dates for
            payment and conditions attaching to payment of that guaranteed
            minimum shall comply in all respects with Part I or II (as
            appropriate) of Schedule 2 to the Contracting-out (Transfer)
            Regulations 1985. If the transferring arrangement is a policy of
            insurance or annuity contract, the benefits arranged by the Trustees
            under Sub-rule (D) of this Rule in respect of the transfer shall
            include pensions which are of at least equal value to the annuity
            which would have been payable under the transferring arrangement in
            respect of guaranteed minimum pensions if the transfer had not taken
            place.

TRANSFERS TO ANOTHER SCHEME
- expressions used

28.   (A)   In this Rule:

            "receiving scheme" means any fund, scheme or arrangement which is

<PAGE>

                                                                         Page 83

            (1)   approved under Chapter I, Part XIV, Income and Corporation
                  Taxes Act 1988, or

            (2)   a personal pension scheme which is approved under Chapter IV,
                  Part XIV, Income and Corporation Taxes Act 1988, or

            (3)   approved for the purposes of this Rule by the Board of Inland
                  Revenue.

            "appropriate personal pension scheme" means a personal pension
            scheme to which the Occupational Pensions Board has issued an
            appropriate scheme certificate so that it may provide money purchase
            benefits for its members which are wholly or partly in substitution
            for benefits under the State earnings related pension scheme.

            "Transfer Regulations" means the Contracting-out (Transfer)
            Regulations 1985.

- general

      (B)   The Trustees may subject to the conditions set out below and to the
            approval of the Principal Company transfer to any receiving scheme
            all the assets of the Fund or such part of them as the Trustees
            think just and equitable having regard to the advice of the Actuary.
            If the transfer is to be made without the consent of the Member the
            Trustees shall satisfy themselves that the amount to be transferred
            is at least equal to the value of the benefits which will be
            extinguished by the transfer.

- information to receiving scheme

      (C)   (1)   On any transfer under this Rule the Trustees shall supply to
                  the receiving scheme a statement showing the amount (if any)
                  included in the transfer which is attributable to an
                  employee's Member's Contributions.

            (2)   If on or after any transfer under this Rule the managers of
                  the receiving scheme request a certificate showing the maximum
                  lump sum payable on retirement from the transfer in respect of
                  a Member who is a Class B Member or a Class C Member, the
                  Trustees shall calculate the said maximum lump sum and supply
                  the receiving scheme with the certificate requested.

            (3)   If the receiving scheme is a personal pension scheme, the
                  Trustees shall provide a certificate of the maximum lump sum
                  payable on retirement from the transfer if the person to whom
                  the transfer relates:

                  (a)   is aged 45 or more at the time the transfer is made, or

<PAGE>

                                                                         Page 84

                  (b)   has at any time within the 10 years preceding the date
                        on which the right to the transfer arose, been, in
                        respect of any employment to which the transfer or any
                        part of it relates, either

                        (i)   a Controlling Director as defined in Sub-rule
                              55(A) (Guide to Inland Revenue limitations), or

                        (ii)  in receipt of annual remuneration in excess of
                              (pound)60,000 or, if greater, the allowable
                              maximum as defined in Section 640A of the Act for
                              the Tax Year in which the date of the transfer
                              falls, or

                  (c)   is entitled to benefits included in the transfer which
                        arise from an occupational pension scheme under which
                        the normal retirement age is 45 or less.

            (4)   For the purpose of paragraphs (2) and (3) of this Sub-rule
                  "maximum lump sum" shall mean the amount calculated as at the
                  date of transfer (without taking into account any future
                  increases) as the amount (if any) prospectively payable to the
                  Member under Sub-rule 11(A) or such greater amount as they
                  shall determine not exceeding the maximum permissible in
                  accordance with Sub-rule 32(A) (Inland Revenue Limitations).

- benefits to be provided by receiving scheme

      (D)   Before any transfer is made under this Rule arrangements shall be
            made with the managers of the receiving scheme as to the benefits it
            will provide in respect of the transfer. If the transfer is to be
            made at the request or with the consent of any person to whom it
            relates, those arrangements shall be agreed with that person. If the
            transfer is to be made without the consent of any person to whom it
            relates, the arrangements shall be agreed with the Trustees.

- transfer of GMPs

      (E)   No transfer which represents Guaranteed Minimum Pensions shall be
            made under this Rule unless at the date of the transfer the
            receiving scheme is:

to salary related contracted-out schemes

            (1)   contracted-out on a salary related basis by virtue of
                  satisfying section 9(2) of the Pensions Act (or was formerly
                  so contracted-out and is subject to financial supervision by
                  the Occupational Pensions Board because it retains liability
                  for guaranteed minimum pensions, in which case the transfer
                  shall be approved by the Occupational Pensions Board), and

<PAGE>

                                                                         Page 85

                  (a)   the Member consents to the transfer and has entered
                        employment with an employer who is a contributor to the
                        receiving scheme, or

                  (b)   the circumstances specified in paragraph 2 of Part I,
                        Schedule 1 to the Transfer Regulations (which deals with
                        circumstances in which the Scheme and the receiving
                        scheme apply to the same employment or to employers who
                        are or have been financially connected) apply, or

                  (c)   if the transfer is in respect of (i) an employee who has
                        not entered contracted-out employment under the
                        receiving scheme or (ii) the liability for payment of a
                        Guaranteed Minimum Pension to or in respect of a person
                        who has become entitled to it, the conditions set out in
                        Part I or Part II of Schedule 2 to the Transfer
                        Regulations (which specify the amounts, the terms and
                        conditions attaching to, and the basis of any
                        revaluation of the Guaranteed Minimum Pension to be
                        provided by the receiving scheme) are satisfied;

            or

to money purchase contracted-out schemes

            (2)   contracted-out on a money purchase basis by virtue of
                  satisfying section 32(2A) of the Pensions Act (or was formerly
                  so contracted-out and is subject to financial supervision by
                  the Occupational Pensions Board because it retains liability
                  for protected rights) and

                  (a)   the Member consents to the transfer and has entered
                        employment with an employer who is a contributor to the
                        receiving scheme, and

                  (b)   the receiving scheme makes provision for the transfer
                        payment to be applied to provide money purchase benefits
                        for or in respect of the Member, and

                  (c)   if the receiving scheme is not a contracted-out scheme,
                        the transfer payment is approved by the Occupational
                        Pensions Board;

            or

to appropriate personal pension scheme

            (3)   an appropriate personal pension scheme and

<PAGE>

                                                                         Page 86

                  (a)   the Member consents to the transfer, and

                  (b)   the receiving scheme makes provision for the transfer
                        payment to be applied in providing money purchase
                        benefits for or in respect of the Member;

            or

to overseas schemes

            (4)   administered wholly or primarily outside the United Kingdom
                  and

                  (a)   the Member consents to the transfer and has entered
                        employment with an employer who is a contributor to the
                        receiving scheme and the Member's employment is outside
                        the United Kingdom and

                  (b)   the transfer is approved by the Occupational Pensions
                        Board.

      Where a Member's accrued rights to Guaranteed Minimum Pensions are
      transferred to a scheme which is contracted-out on a money purchase basis
      or to an appropriate personal pension scheme, the sum transferred shall
      not be less than an amount equal to the cash equivalent of those accrued
      rights calculated and verified in a manner consistent with Regulations
      made under section 97 of the Pensions Act for the purposes of the
      Statutory Transfer Option.

- transfers without Members consent

      (F)   A transfer may be made under this Rule without the consent of any
            person in respect of whom it is to be made, except that the consent
            of the Member shall be required:

            (1)   in the circumstances specified in Sub-rule (E) of this Rule if
                  the transfer includes a Guaranteed Minimum Pension, or

            (2)   where the transfer constitutes a complete or partial
                  substitute for short service benefit under the Plan in respect
                  of the Member for the purposes of section 73 of the Pensions
                  Act unless regulations made pursuant to section 73 of the
                  Pensions Act permit the transfer without his consent.

<PAGE>

                                                                         Page 87

- interaction with Statutory Transfer Option

      (G)   The Trustees power to make a transfer under this Rule with the
            consent of the Member does not apply to a Member who has the
            Statutory Transfer Option except to the extent that the amount to be
            transferred exceeds his cash equivalent for the purposes of Chapter
            IV of Part IV of the Pensions Act. The Trustees may treat any
            consent or request of the Member in connection with the transfer of
            his cash equivalent as relating also to the transfer of any such
            excess under this Rule.

- effect of transfer on Plan benefits

      (H)   A transfer may be made under this Rule even though it may result in
            one or more persons ceasing to have any entitlement to benefit by
            reference to a person's period of membership of the Plan or, as the
            case may be, having entitlement to benefits which are smaller in
            amount or subject to different terms and conditions. No person shall
            have any right whatever to resort to the Fund for any benefit which
            ceases to be payable or is otherwise affected as a result of a
            transfer under this Rule.

            Any person in respect of whom such a transfer has been made shall
            not thereafter be entitled to any benefits under the Plan in respect
            of the assets so transferred and the Trustees shall not be in any
            way responsible for or required to enquire into the use and
            application of the assets so transferred.

RIGHTS OF EMPLOYERS RELATING TO EMPLOYEES

29.   Nothing in the Plan shall fetter the right of a Participating Employer to
      dismiss any employee or to reduce any employee's remuneration neither
      shall the benefit to which a person might claim to be entitled under the
      provisions of the Plan be used as a ground for increasing damages in any
      action brought by such person against a Participating Employer.

CLAIMS AGAINST TRUSTEES OR EMPLOYERS

30.   No person shall have any claim, right or interest upon, or in respect of,
      the Fund or any contributions thereto or any interest therein or any claim
      upon or against the Trustees or a Participating Employer except under and
      in accordance with the provisions of the Trust Instrument and the Rules.

<PAGE>

                                                                         Page 88

LIEN ON BENEFITS

31.   All beneficial interest of a Member under the Plan shall, subject to Rule
      18 (Deduction of tax), stand charged with all sums (if any) owing in
      respect of any monetary obligation due to a Participating Employer and
      arising out of a criminal, negligent or fraudulent act or omission by the
      Member. On production of a certificate signed by the chairman or any two
      directors of that Participating Employer that an amount is so owing such
      certificate shall be accepted as conclusive evidence by the Trustees of
      the facts therein stated and subject as hereinafter provided the amount so
      certified shall be deducted from the benefits accordingly and be payable
      to that Participating Employer whose receipt shall be a complete discharge
      therefor provided that

      (a)   this Rule shall not apply to any benefit or part thereof

            (1)   which arises under the provisions of the Transfer Rules except
                  with the consent of the Occupational Pensions Board

            (2)   which has operated to exclude the right to or reduce the
                  amount of a redundancy payment to which the Member would
                  otherwise be entitled under the Employment Protection
                  (Consolidation) Act 1978, or

            (3)   which represents Equivalent Pension Benefits or a Guaranteed
                  Minimum Pension

      (b)   subject to any different agreement in writing between the
            Participating Employer and the Member, the amount of such deduction
            shall be limited to whichever is the lesser of

            (1)   the amount the Actuary advises to be the actuarial value of
                  the Member's actual or prospective benefits to which this Rule
                  applies, at the time of such deduction, and

            (2)   the amount of the said monetary obligation

      (c)   the Trustees shall determine which and the extent to which any
            benefit or benefits or prospective benefit or benefits is or are to
            be reduced in amount, terminated or suspended having regard to the
            amount so deducted

      (d)   the Member shall be entitled to a certificate showing the amount
            deducted and its effect on his benefits or prospective benefits

<PAGE>

                                                                         Page 89

      (e)   no amount shall be deducted under this Rule in the event of any
            dispute as to the amount of such deduction unless and until the
            obligation has become enforceable under an order of a competent
            Court or the award of an arbitrator under the Rules, and

      (f)   any Participating Employer to which a payment is made under this
            Rule shall indemnify the Trustees against all actions, claims,
            demands and expenses arising directly or indirectly in consequence
            of such payment.

INLAND REVENUE LIMITATIONS

32.   (A)   The Trustees in order to secure and maintain approval of the Plan
            under the Act shall adjust the amount of any benefit to which any
            person may become entitled under the Plan and the amount of any
            contributions payable by and in respect of such person and shall
            determine that the terms and conditions appropriate to such benefits
            and contributions shall be deemed to be altered or modified to give
            effect to such limitations set out in Rule 55 or to such other
            limitations or restrictions (including any variation in such
            limitations or restrictions) as the Board of Inland Revenue may in
            any particular case or generally require or agree.

- Inland Revenue undertakings

      (B)   The Trustees may enter into such undertakings with the Board of
            Inland Revenue as they consider appropriate in connection with
            approval of the Plan under the Act and the provisions of the Plan as
            set out in the Trust Instrument and the Rules shall be deemed to be
            altered or modified to such extent as the Trustees shall in their
            discretion determine in order to give effect to such undertakings.

- optional limits

      (C)   (1)   Any Class B Member may elect on or after 27th July 1989 to be
                  treated for the purposes of the Rules as a Class A Member
                  except that, unless the Trustees otherwise agree with the
                  Member, he shall remain a Class B Member for the purposes of
                  paragraph (a) of Rule 8, the last paragraph (b) of Sub-rule
                  11(A) and paragraph (2)(b) of Sub-rule 55(B).

            (2)   Any Class C Member may, with the consent of the Trustees,
                  elect on or after 27th July 1989 to be treated for the
                  purposes of the Rules as a Class A Member.

            (3)   Any Class A Member may, with the consent of the Trustees,
                  elect to be a Class B Member for the purposes of paragraph (a)
                  of Rule 8, the last paragraph (b) of Sub-rule 11(A) and
                  paragraph (2)(b) of Sub-rule 55(B). For all other purposes the
                  Member will remain a Class A Member.

<PAGE>

                                                                         Page 90

            (4)   Any election under paragraph (1) of this Sub-rule is
                  irrevocable and shall be made by the Member giving written
                  notice to the Trustees in such form as the Trustees may
                  prescribe but consistent with the requirements of Part II of
                  Schedule 6 to the Finance Act 1989.

            (5)   Any election under paragraph (2) or (3) of this Sub-rule is
                  irrevocable and shall be made by the Member giving written
                  notice to the Trustees in such form as the Trustees may
                  prescribe.

            (6)   Any notice given under paragraph (4) or (5) above must be
                  given no later than whichever is the last to occur of

                  (a)   the earliest of the date on which any benefit is paid to
                        the Member under the Plan, the date on which any
                        transfer payment is made from the Plan in respect of the
                        Member to any other fund scheme, arrangement, policy or
                        contract and the Member's 75th birthday, and

                  (b)   any later date approved for this purpose by the Board of
                        Inland Revenue.

            (7)   No election under this Sub-rule can be made by a Member who
                  retired from or left Service prior to 17th March 1987.

<PAGE>

                                                                         Page 91

PART VI - ADMINISTRATION AND MANAGEMENT OF THE PLAN

RESPONSIBILITY FOR ADMINISTRATION AND MANAGEMENT

33.   The administrator of the Plan will be responsible for its administration
      and management. The administrator will be

      (a)   the Trustees, or

      (b)   any person or corporate body appointed for the time being by the
            Trustees under this Rule to be the administrator.

      The Trustees may at any time appoint a person or corporate body approved
      for the purpose by the Principal Company and resident in the United
      Kingdom to be the administrator for the time being and must do so at any
      time when none of the Trustees are resident in the United Kingdom.

      Any appointment will be in writing and must be notified to the Board of
      Inland Revenue.

      Under section 606 of the Act, if the administrator has failed to discharge
      his duties or to pay any tax due from him by virtue of Chapter I of the
      Act those responsibilities of the administrator may pass to one or more of
      the Trustees or participating Employers.

APPOINTMENT AND REMOVAL OF TRUSTEES

34.   The power of appointing new and additional trustees shall be vested in the
      Principal Company which may appoint an additional trustee or additional
      trustees without limitation as to number and may remove from office any
      trustee and may appoint a new trustee in place of any trustee who shall
      die or be removed or retire from office or become incapable of acting. Any
      such appointment or removal shall be by deed executed by the Principal
      Company and as the case may be by any new or additional trustee.

<PAGE>

                                                                         Page 92

      A corporation limited or unlimited and whether or not a trust corporation
      may be appointed as a trustee and may act either as sole trustee or
      jointly with one or more other trustees. Section 37(1)(c), Trustee Act
      1925 shall not apply and accordingly a trustee who is replaced or removed
      upon or subsequent to the appointment of any such corporation as a trustee
      hereof shall thereupon be discharged notwithstanding that there may not be
      either a trust corporation or at least two individuals to act as trustees
      to perform the trust. Unless for the time being a corporation or company
      as aforesaid is a trustee hereof or until the Principal Company shall
      otherwise determine by instrument in writing the number of trustees shall
      not be fewer than two.

      A trustee or trustees may be appointed as aforesaid and act hereunder upon
      such terms as to remuneration and generally in all respects as may be
      agreed from time to time between the Principal Company and the trustee and
      any corporation, company, firm or person to whom payment of remuneration
      is made under any such agreement may retain such remuneration
      beneficially.

      Any Trustee being an individual who at the date of his appointment as a
      Trustee was a director or employee of one or more of the Participating
      Employers shall on the first date on which he is no longer a director or
      employee of any of the Participating Employers cease to be a Trustee.

      Any trustee who is a Member or (in the case of any trustee being a
      corporation or a company) any member of the board of the trustee company
      who is a Member shall be entitled to retain for his own absolute benefit
      any and all benefits to which he is or becomes entitled by virtue of his
      membership of the Plan.

TRUSTEES' GENERAL POWERS OF DETERMINATION

35.   Subject to the powers to be exercised by a Participating Employer as
      herein expressed, the Trustees shall have full power to determine whether
      or not any person is entitled from time to time to any benefit or payment
      in accordance with the Plan, and in deciding any question of fact they
      shall be at liberty to act upon such evidence or presumption as they shall
      in their discretion think sufficient, although the same be not legal
      evidence or legal presumption. Subject as aforesaid, the Trustees shall
      also have power conclusively to determine all questions and matters of
      doubt arising on or in connection with the Plan, and whether relating to
      the construction thereof or the benefits thereunder or otherwise.

EXERCISE OF TRUSTEES' POWERS

36.   (A)   Unless a corporation or company is for the time being sole trustee
            hereof the following provisions shall apply:

<PAGE>

                                                                         Page 93

- individual trustees

            (1)   the Trustees shall appoint a secretary and shall meet at such
                  times, not being less than once a year, and at such place as
                  they shall decide, and shall make regulations for the conduct
                  of their business, the summoning of meetings, the appointment
                  of a chairman, the recording of resolutions, and all other
                  matters in connection with their work. Unless the regulations
                  from time to time made by the Trustees for the conduct of
                  their business provide otherwise:

                  (a)   A special meeting may be called by any one of the
                        Trustees and shall be called by the secretary at the
                        direction of the Trustees or any one of them.

                  (b)   If three of the trustees are present at a meeting they
                        will form a quorum.

                  (c)   At every meeting of the Trustees all questions shall be
                        decided by the votes of the trustees present taken by a
                        show of hands.

                  (d)   In the case of an equality of votes the chairman of the
                        meeting shall have a second or casting vote.

            (2)   The Trustees shall exercise their powers and execute their
                  duties under the Plan by resolutions passed at meetings of the
                  Trustees provided that a resolution in writing of which notice
                  has been given to each trustee individually shall if signed by
                  a majority of the Trustees for the time being be as effectual
                  as if it had been passed at a meeting of the Trustees, and may
                  consist of one or more documents in similar form each signed
                  by one or more of the Trustees.

- corporate trustee

            (3)   A corporate trustee may act through any of its directors or
                  through an officer appointed for the purpose and so that any
                  such appointment may be of one person or of one or more
                  persons alternatively identified either by name or by
                  reference to the holding for the time being of a specified
                  office.

- trustees decisions

            (4)   No decision of or exercise of a power by the Trustees shall be
                  invalidated or questioned on the ground that the Trustees or
                  any of them or any director or officer of a corporation or
                  company being a trustee hereof had a direct or other personal
                  interest in the mode or result of such decision or of
                  exercising such power.

<PAGE>

                                                                         Page 94

TRUSTEES LIABILITY

37.   Without prejudice to the powers and discretions vested in the Trustees by
      the other provisions hereof and except as provided below, the Trustees
      shall be entitled to all the indemnities conferred on trustees by law and
      shall not be liable for acting on the advice of the auditors appointed
      under the Rules or on any other advice the Trustees may obtain directly or
      indirectly from such corporation, company, firm or person as shall in
      their opinion be qualified by experience or otherwise to advise them, nor
      shall any Trustee be liable for any acts or omissions not due to his own
      wilful neglect or default nor shall it be obligatory upon the Trustees to
      see that any contributions or other moneys payable to them under the Plan
      are in fact paid.

      The Trustees shall be indemnified in respect of expenses incurred in
      connection with the Plan only to the extent that they are incurred under
      and strictly in accordance with the Rules.

      The Principal Company shall keep the Trustees indemnified against any
      actions, claims, costs and liabilities arising out of the execution of
      their duties in relation to the Plan except such as they incur through any
      gross negligence and any wilful default or breach of trust knowingly and
      intentionally committed.

EXERCISE OF EMPLOYER'S POWERS

38.   Any power, right or discretion conferred on a Participating Employer by
      the Trust Instrument or the Rules shall be exercisable by that
      Participating Employer's board of directors or a committee thereof
      appointed for the purposes of the Trust Instrument and the Rules and a
      document purporting to be a copy resolution of that board or committee
      signed by the chairman of the meeting shall (except in the case of a power
      or right exercisable by deed) be sufficient evidence of the exercise of
      the power, right or discretion thereby involved.

INVESTMENT OF FUND
- acquisition and disposal of investments

39.   (A)   The Trustees may retain any investments or property or any interest
            therein from time to time held by the Trustees and forming part of
            the Fund or sell or realise or otherwise deal with the same in such
            manner as they shall in their absolute discretion determine and may
            invest or apply in manner hereinafter provided any money forming
            part of the Fund and not immediately required for the payment of
            benefits and shall have power to sell or realise any investments or
            property or interest therein whether for providing money required
            for the payment of such benefits or for reinvestment or otherwise.

- permitted investments

      (B)   The Trustees may invest or otherwise deal with any money or other
            assets forming part of the Fund in such manner as they shall in
            their absolute discretion determine and in particular without
            prejudice to the generality of the Trustees' powers under this
            Rule:-

<PAGE>

                                                                         Page 95

            (1)   The Trustees may invest or apply any moneys forming part of
                  the Fund in or upon the security of any stocks, shares,
                  debentures, debenture stocks, units in unit trusts or mutual
                  or managed funds, bearer securities, any interest in land and
                  any annuity policies and policies of assurance (being annuity
                  policies or policies of assurance issued by any United Kingdom
                  office or branch of any insurance company which is authorised
                  to carry on ordinary long term insurance business under
                  section 3 or 4 of the Insurance Companies Act 1982) or other
                  investments or property whatsoever and wheresoever situate,
                  whether or not involving liability, whether or not producing
                  income and whether or not authorised by law for the investment
                  of trust moneys as the Trustees in their absolute discretion
                  think fit.

            (2)   The Trustees shall have power to underwrite, sub-underwrite or
                  guarantee the subscription of any funds, securities, bonds,
                  debentures, debenture stocks and stocks and shares of any
                  kind.

            (3)   The Trustees may place or retain any moneys:-

                  (a)   on deposit or current account at such rate of interest
                        (if any) and upon such terms as they shall think fit
                        with any bank, investment company, building society,
                        local authority, finance company or any United Kingdom
                        office or branch of any insurance company as aforesaid,
                        and

                  (b)   on deposit upon such terms as they shall think fit with
                        any Participating Employer or any other company or
                        undertaking.

                  The Trustees shall not be chargeable in respect of any
                  interest in excess of the interest (if any) actually paid or
                  credited on any moneys dealt with in accordance with this Rule
                  or otherwise in respect thereof.

            (4)   The Trustees may enter into any transaction in connection with
                  financial futures, the lawful currency of any country and the
                  purchase or sale of any assets or property for receipt or
                  delivery at a future date and may grant or acquire call or put
                  options over any assets or property.

- additional powers; land and buildings

      (C)   The Trustees shall in relation to any real property or any interest
            therein forming part of the Fund have the following additional
            powers:

<PAGE>

                                                                         Page 96

            (1)   power to keep any buildings insured against such risks and for
                  such amounts as they think fit;

            (2)   powers, in addition to the powers of management conferred by
                  law upon trustees holding land upon trust for sale, to sell,
                  exchange, convey, lease, charge, agree to let or otherwise
                  conduct the management of any such property as if the Trustees
                  were absolutely entitled to such property beneficially but so
                  that, in exercising this power, the Trustees shall obtain and
                  act upon such advice as they consider necessary (including
                  advice from an independent valuer or independent valuers) in
                  order to determine and agree the terms and conditions
                  appropriate to each such sale, exchange, conveyance, lease,
                  charge and agreement to let;

            (3)   power to apply any money for the time being forming part of
                  the Fund in improving or developing any such property or in
                  enlarging, improving, demolishing or rebuilding any building
                  comprised in such property.

- additional powers; personal property

      (D)   The Trustees shall in relation to any personal property have the
            power to take such steps as they may think proper for the insurance,
            repair, protection, removal, custody, carriage and general
            maintenance of such property or any part thereof.

- indemnity by trustees in connection with investments

      (E)   The Trustees shall have power to give any indemnity in connection
            with the exercise of their powers under this Rule and may bind the
            Fund to give effect thereto.

- nominee to hold investments

      (F)   The Trustees may appoint any corporate body to act as their nominee
            for the purposes of this Rule with power for the Trustees at any
            time or times in like manner to revoke or vary such appointment and
            any investments of the Fund may be made in the name of or
            transferred to the corporate body so appointed on the terms that the
            latter shall hold them as nominee for and on behalf of the Trustees
            and the Trustees may for this purpose enter into any agreement with
            such corporate body and may bind the Fund in respect of any
            indemnity to give effect thereto.

- employer related investments

      (G)   In exercising their powers under this Rule the Trustees shall comply
            with the restrictions on investment of Plan's resources in employer
            related investments referred to in section 112 of the Pensions Act
            and any regulations made thereunder.

<PAGE>

                                                                         Page 97

POWER TO RAISE OR BORROW MONEY

40.   After obtaining the consent of the Principal Company, the Trustees may
      whenever they think it desirable so to do raise or borrow any sum or sums
      of money and may secure the repayment of such moneys in such manner and
      upon such terms and conditions in all respects as they think fit and in
      particular by charging or mortgaging all or any part of the Fund.

DONATIONS AND BEQUESTS

41.   The Trustees may accept donations or bequests from any person or body to
      be applied for the purposes of the Plan.

PLAN ACCOUNTS

42.   The Trustees shall cause true and full accounts to be kept of all moneys
      passing through their hands and also a record of all persons receiving
      benefits and of all other matters proper to be recorded so as to show the
      full facts relating to the Plan.

AUDIT OF ACCOUNTS

43.   The Trustees shall cause their accounts for each Plan Year to be audited
      as soon as reasonably practicable and not more than one year after the end
      of that Plan Year by the auditors appointed under Sub-rule 45(A), who
      shall also make and sign a report on the accounts in accordance with the
      Disclosure Requirements. The accounts and report shall be made available
      to Members and prospective Members, other beneficiaries under the Plan and
      independent trade unions, in accordance with the Disclosure Requirements
      and shall be similarly available to any director or officer of a
      Participating Employer.

ACTUARIAL INVESTIGATION AND STATEMENT

44.   The Trustees shall cause the Actuary to make signed actuarial valuations
      of and statements about the financial position of the Fund with effective
      dates separated by intervals of not more than 3 years and 6 months. Any
      valuation and statement shall satisfy the Disclosure Requirements and be
      made available to Members and prospective Members, other beneficiaries
      under the Plan and independent trade unions in accordance with the
      Disclosure Requirements and shall be similarly available to any director
      or officer of a Participating Employer.

<PAGE>

                                                                         Page 98

ASSISTANCE TO TRUSTEES
- appointment and removal of officers

45.   (A)   The Trustees shall appoint one or more auditors and shall appoint
            one or more actuaries or a firm or body corporate which has agreed
            to nominate one or more of its actuaries as the actuary or actuaries
            to the Plan. Any actuary so appointed or nominated shall be a Fellow
            of the Institute of Actuaries or of the Faculty of Actuaries in
            Scotland. With the agreement of the Principal Company the Trustees
            may also appoint such other advisers and officers as they consider
            necessary for the proper management of the Plan. Any appointment
            under this Sub-rule shall be made upon such terms as to tenure of
            office, duties and remuneration as the Trustees with the agreement
            of the Principal Company determine. The Trustees may with the
            agreement of the Principal Company terminate any appointment under
            this Sub-rule.

- actuarial advice

      (B)   The Trustees shall consult and act upon the advice of the Actuary at
            such time (i) as is required under the provisions of the Trust
            Instrument or the Rules, and (ii) as they consider it necessary or
            expedient so to do, and subject thereto the Trustees may consult and
            act upon the advice of such company, firm or person as shall in the
            opinion of the Trustees and the Principal Company be qualified by
            experience or otherwise to advise them.

DELEGATION OF TRUSTEES' POWERS

46.   The Trustees may with the consent of the Principal Company delegate all or
      any of the powers, duties and discretions conferred upon them under the
      Trust Instrument or the Rules or by statute or otherwise for any period,
      to any person or persons, whether or not incorporated and whether or not a
      trustee hereof and shall not be responsible for any loss thereby arising.
      In particular, without prejudice to the generality of their powers under
      this Rule, the Trustees may from time to time authorise such person or
      persons whether or not a trustee hereof as they shall think fit to draw
      cheques on any banking account or to endorse any cheques or to give
      receipts and discharges for any moneys or other property payable,
      transferable or deliverable to the Trustees or any of them, and every such
      receipt or discharge shall be as valid and effectual as if it were given
      by the Trustees. The Trustees may also with the consent of the Principal
      Company revoke any delegation made in accordance with this Rule.

      The production of a written authority of the Trustees as aforesaid shall
      be a sufficient protection to any debtor or other person taking any such
      receipt or discharge as aforesaid, and unless such debtor or other person
      shall have received express notice in writing of the revocation of such
      authority, he shall be entitled to assume and act on the assumption that
      the authority remains unrevoked.

<PAGE>

                                                                         Page 99

PLAN EXPENSES

47.   Except as provided in Sub-rule 4(B) (Member's Voluntary Contributions) all
      expenses in connection with the administration and management of the Plan
      or the investment of the Fund (including in any such case professional
      expenses) shall be paid by the Participating Employers in the same
      proportions as the amounts respectively contributed by them during each
      Plan Year or otherwise as may be agreed from time to time between them.

ADMISSION OF ASSOCIATED EMPLOYERS

48.   At the request of the Principal Company (but not otherwise) the Trustees
      will admit an Associated Employer to participation in the Plan. Any such
      Associated Employer must enter into a covenant with the Trustees to comply
      with the provisions of the Plan from a specified date. The covenant will
      be in a form specified by the Trustees.

      An Associated Employer is not permitted to participate in the Plan if that
      would prejudice approval of the Plan under the Act. However, this will not
      preclude the participation of an Associated Employer if, with the
      agreement of the Principal Company and the Board of Inland Revenue, the
      Plan in so far as it relates to that Associated Employer will be treated
      as a separate scheme under section 611(3) of the Act.

      The admission of an Associated Employer to the Plan will be subject to any
      restrictions specified by the Principal Company. The Principal Company can
      also make the continued participation of a Participating Employer subject
      to restrictions if it ceases to be associated in business with or directly
      or indirectly controlled by the Principal Company. In either case the
      specified restrictions can include, but are not limited to:

      (a)   a limit on the period of participation;

      (b)   restrictions on the eligibility of employers to become Members;

      (c)   alterations to the rate of employer's contributions;

      (d)   limits on the earnings to be recognised by the Plan for employees of
            the Associated Employer;

      (e)   restrictions on any powers exercisable under the Rules by a
            Participating Employer.

      The Trustees will not operate any specified restriction in a way which:

<PAGE>

                                                                        Page 100

      1.    would reduce the amount of any benefit which accrued in respect of a
            Member before the date from which the participation of the
            Associated Employer was made subject to the restriction;

      2.    would prejudice approval of the Plan under the Act; or

      3.    is inconsistent with the contracting-out requirements of the
            Pensions Act.

ARBITRATION

49.   Save where by the Trust Instrument or the Rules the decision of the
      Trustees is made conclusive or a Participating Employer is given
      discretion or power of final determination, all differences arising out of
      the Plan which have not been referred to the Pensions Ombudsman by an
      authorised complainant as defined in section 146(7) of the Pensions Act
      shall be referred to a single arbitrator to be appointed in writing by the
      parties to the difference, or if they cannot agree upon a single
      arbitrator, to several arbitrators, one to be appointed in writing by each
      party, and such arbitrators before commencing their investigations shall
      elect an umpire. In all other respects such arbitration shall be subject
      to the statutory provisions for the time being in force relating to
      arbitration.

<PAGE>

                                                                        Page 101

PART VII - SUSPENSION OR TERMINATION OF THE PLAN

SUSPENSION OF A PARTICIPATING EMPLOYER'S CONTRIBUTIONS

50.   A Participating Employer's contributions in respect of some or all
      benefits under the Plan may be suspended by notice in writing to the
      Trustees and on notice as aforesaid being given may, subject to Rule 51
      (Trustees power to treat suspension as termination), be resumed upon such
      date as shall be agreed by the Trustees. Such notice (whether relating to
      suspension or resumption) shall specify (by category or otherwise) the
      person or persons (referred to in this Rule and Rule 51 as "a Specified
      Person") in respect of whom and the benefit (referred to in this Rule as
      "a Specified Benefit") in respect of which the notice relates.

      In the event of such suspension

      (a)   the amount of any Specified Benefit which may become payable on the
            death of a Specified Person during or after a period of suspension
            shall be determined by the Trustees having regard to the advice of
            the Actuary and where appropriate having regard to the
            contracting-out requirements of the Pensions Act and the amount (if
            any) of any other Specified Benefit shall be adjusted by such amount
            as the Trustees shall determine to be appropriate having regard to
            the contracting-out requirements of the Pensions Act, and

      (b)   the amount (if any) of contributions payable in respect of such
            period of suspension by a Specified Person shall be determined by
            the Trustees provided that approval of the Plan under the Act would
            not thereby be prejudiced.

TRUSTEES' POWER TO TREAT SUSPENSION AS TERMINATION

51.   If the contributions of a Participating Employer in respect of a Specified
      Person are suspended under Rule 50 for more than two years the Trustees
      may, by notice in writing to the Participating Employer, treat the
      suspension under Rule 50 as a termination in respect of the Specified
      Person under Rule 52 as from the date stated for that purpose in the
      notice.

TERMINATION OF CONTRIBUTIONS BY A PARTICIPATING EMPLOYER

52.   A Participating Employer's contributions

      (a)   may be terminated at any time by notice in writing to the Trustees
            and may be similarly terminated only in respect of persons in a
            specified category or specified categories, and

      (b)   shall be terminated

<PAGE>

                                                                        Page 102

            (1)   in the case of an Associated Employer on a date not later than
                  the end of the Plan Year following that in which the
                  Participating Employer ceases to be an Associated Employer, or

            (2)   at any time in the event of the Participating Employer ceasing
                  to transact business on account of liquidation or otherwise

            and thereupon contributions payable by any person in respect of whom
            the Participating Employer's contributions have ceased shall also
            terminate.

      If the contributions of a Participating Employer are so terminated and
      Rule 53 (termination of contributions by all Participating Employers) does
      not apply:

      (a)   the provisions of Rule 9 (Benefits on leaving the Plan) shall
            thereupon apply to each Member (or other person to whom a benefit
            under Sub-rule 16(A) (Discretionary Benefits) or the Transfer Rules
            applies) who is then in the service of that Participating Employer
            and, where appropriate, in a category of persons in respect of whom
            contributions have terminated;

      (b)   with the approval of the Principal Company, the Trustees may
            determine that, having regard to the advice of the Actuary, the
            assets of the Plan and its liabilities for and in respect of persons
            in the service of or formerly in the service of the Participating
            Employer whose contributions have ceased, some part of the Fund
            shall be:

            (1)   transferred to another fund, scheme or arrangement which is
                  approved under the Act or approved for the purpose by the
                  Board of Inland Revenue, or

            (2)   paid to that Participating Employer

            but only if the transfer or payment would not prejudice approval of
            the Plan under the Act.

TERMINATION OF THE PLAN
- termination of contributions by all Participating Employers

53.   In the event of the contributions of all the Participating Employers being
      terminated under Rule 52, the Plan shall, subject to Sub-rule 54(A)
      (continuation of Plan as a closed scheme), determine and on such
      determination or at the expiration of the Perpetuity Period whichever
      shall first occur:-

<PAGE>

                                                                        Page 103

- entitlement to benefit

      (a)   no person shall be entitled to any benefit under the Plan otherwise
            than under this Rule or Rule 54 (Optional powers on termination of
            contributions),

- disposal of death benefits

      (b)   any sum or sums then held by the Trustees in respect of any deceased
            person shall thereupon be paid or applied in accordance with the
            provisions of Rule 13 (Payment of lump sum death benefits),

- application of Member's Voluntary Contributions

      (c)   in the case of a Member who has paid Member's Voluntary
            Contributions to which paragraph (4) of Sub-rule 4(B) (Segregated
            Member's Voluntary Contributions) applies the assets held by the
            Trustees representing the Member's Voluntary Contributions Fund
            shall (subject to the exercise of any of the powers conferred by
            Rule 54 and the provisions of paragraph (5) of Sub-rule 4(B)
            (Surplus Voluntary Contributions)) be realised and applied in the
            purchase or provision of a Paid-up Policy under Rule 24 (Securing
            benefits outside the Plan by purchase of policies) to secure any of
            the benefits set out in paragraphs (1) or (2) of Sub-rule 16(A) on
            such basis as the Trustees shall determine. A Member who is not a
            Qualifying Member may elect to take a refund of Member's
            Contributions less the Contracting-out Deduction, in accordance with
            paragraph (4)(b) below, and when such an election is made no Paid-up
            Policy will be purchased or provided in relation to the Member's
            Voluntary Contributions Fund;

- use of Plan assets on wind-up

      (d)   the Fund shall (subject to the exercise of any of the powers
            conferred by Rule 54) be realised and together with any moneys in
            hand be disposed of (subject to the provisions of paragraphs (e)
            (alternative lump sum where pension would be trivial) and (f)
            (expenses of wind-up) of this Rule) among the persons who on the
            date upon which the Plan determined or the Perpetuity Period expired
            as aforesaid are included among the persons specified below by the
            provision of Paid-up Policies securing benefits of such amounts as
            shall be determined by the Trustees having regard to the advice of
            the Actuary to the intent that, as far as the monies available
            permit:-

pensioners

            (1)   (a)   all Members and other persons in receipt of pensions
                        shall be entitled to Paid-up Policies securing benefits
                        as nearly as may be on the same terms and conditions as
                        and identical in amount with their benefits under the
                        Plan including any pension benefits payable under the
                        Plan on the death of any such Member or other person in
                        receipt of a pension

<PAGE>

                                                                        Page 104

Members who have reached Normal Retiring Date but whose pension has not
commenced

                  (b)   all Members not included in (a) whose Normal Retiring
                        Dates have occurred and whose pensions under the Plan
                        have not commenced to be paid shall be entitled to
                        Paid-up Policies securing benefits as nearly as may be
                        on the same terms and conditions as and identical in
                        amount with their benefits under the Plan calculated as
                        if they had retired from Service on the date upon which
                        contributions terminated. The benefits to be so secured
                        shall include any benefits (calculated on the same
                        basis) which would have become payable on their
                        subsequent death.

Members who were contracted-out under old State Graduated Scheme

            (2)   All Members who have completed a period of non-participating
                  employment for the purposes of the National Insurance Act 1965
                  shall be entitled to Paid-up Policies securing benefits as
                  nearly as may be on the same terms and conditions as and
                  identical in amount with their benefits under the Plan to the
                  extent that such benefits represent Equivalent Pension
                  Benefits.

Guaranteed Minimum Pensions

            (3)   All Members who have completed a period of Contracted-out
                  Employment shall be entitled to Paid-up Policies securing
                  benefits as nearly as may be on the same terms and conditions
                  as and identical in amount with their benefits under the Plan
                  to the extent that such benefits represent the Guaranteed
                  Minimum Pensions payable in respect of such Members and
                  prospectively payable on the death of such Members.

Members who have left the Plan with Deferred Pensions

            (4)   (a)   All Members who have left the Plan with prospective
                        entitlement to pensions under the Plan which have not
                        commenced to be payable shall be entitled to Paid-up
                        Policies securing benefits as nearly as may be on the
                        same terms and conditions as and identical in amount
                        with their benefits under the Plan including any
                        benefits prospectively payable on the death of any such
                        Member.

<PAGE>

                                                                        Page 105

Members in Service before Normal Retiring Date

                  (b)   All Members whose Normal Retiring Dates have not
                        occurred, who are in the service of a Participating
                        Employer and are not included in sub-paragraph (a) above
                        shall be entitled to Paid-up Policies securing benefits
                        as nearly as may be on the same terms and conditions as
                        and identical in amount with the benefits to which the
                        Members would have been entitled if they had left the
                        Plan on the date upon which contributions terminated and
                        become entitled to a Deferred Pension calculated as if
                        they were Qualifying Members whether or not this is the
                        case. The benefits to be so secured shall include any
                        benefits (calculated on the same basis) which would have
                        become payable on their subsequent death. A Member who
                        is not a Qualifying Member may elect to take a refund of
                        Member's Contributions less the Contracting-out
                        Deduction, instead of the Paid-up Policy to which he
                        would otherwise be entitled.

other persons

                  (c)   All persons to whom sub-paragraphs (a) and (b) above do
                        not apply who are prospectively or contingently entitled
                        to benefits under the Plan by reference only to Sub-rule
                        16(A) (Discretionary benefits) or the Transfer Rules
                        shall be entitled to Paid-up Policies securing benefits
                        as nearly as may be on the same terms and conditions as
                        and identical in amount with their benefits under the
                        Plan or, where such entitlement arises in respect of
                        persons who are in the service of a Participating
                        Employer, the benefits to which such persons would have
                        been entitled if they had left Service on the date upon
                        which contributions terminated.

application of surplus assets

            (5)   All or some part or parts of any balance of the Fund then
                  remaining may if and as the Trustees in their absolute
                  discretion decide

                  (a)   be applied to increase all or any of the benefits
                        provided under this Rule in such shares and in such
                        manner as the Trustees may in their absolute discretion
                        decide, or

                  (b)   be transferred to another fund, scheme or arrangement
                        which is approved under the Act or approved for the
                        purpose by the Board of Inland Revenue

                  but only if approval of the Plan under the Act would not be
                  prejudiced.

<PAGE>

                                                                        Page 106

refund of residual surplus to employers

            (6)   Any moneys thereafter remaining shall be paid to the
                  Participating Employers in such proportions as the Trustees
                  shall determine having regard to the contributions paid by
                  such Participating Employers under the Rules or in such other
                  manner as the Trustees shall subject to the approval of the
                  Board of Inland Revenue determine.

offsetting benefits under one paragraph against benefits under another

            (7)   In calculating the extent to which benefits are to be secured
                  in respect of any person under each paragraph of this Sub-rule
                  account shall be taken of any benefits secured in respect of
                  such person under any preceding paragraph except that no
                  account shall be taken of Equivalent Pension Benefits secured
                  under paragraph (2) in ascertaining the amount of Guaranteed
                  Minimum Pension to be secured under paragraph (3).

order of priority of benefits

            (8)   Subject to the provisions of this Sub-rule liabilities of the
                  Plan shall be accorded priority in the order in which they
                  appear in paragraphs (1), (2), (3) and (4) of this Sub-rule
                  except that liabilities under each sub-paragraph thereof shall
                  have equal priority. In the event of the monies available
                  being sufficient to provide part but not all of the benefits
                  under paragraph (1), (2), (3) or (4) of this Sub-rule benefits
                  shall be provided in respect of all persons to whom such
                  paragraph applies in proportion except that

                  (a)   where such proportion is in respect of persons to whom
                        paragraph (3) relates the Trustees may determine that
                        benefits under that paragraph may be provided in full as
                        far as the monies available to provide such benefits
                        permit in respect of such persons as the Trustees in
                        their discretion decide, and

                  (b)   liabilities arising under sub-paragraphs (a) and (b) of
                        paragraph (4) may at the discretion of the Trustees be
                        satisfied in such order and to such extent as the
                        Trustees determine having regard to the advice of the
                        Actuary to the intent that equality of treatment is as
                        far as possible achieved among persons to whom paragraph
                        (4) of this Sub-rule applies after taking into account
                        any Equivalent Pension Benefits secured under paragraph
                        (2) and Guaranteed Minimum Pensions secured under
                        paragraph (3) of this Sub-rule or extinguished by the
                        payment of a state scheme premium under the Pensions
                        Act.

<PAGE>

                                                                        Page 107

payment of state scheme premiums to secure certain benefits

            (9)   The Trustees may determine that all or, as the case may be, a
                  part of any benefit applicable under paragraphs (1) and (3)
                  which would otherwise fall to be secured under a Paid-up
                  Policy shall be extinguished by the payment of a state scheme
                  premium under the Pensions Act and Sub-rule 56(G) (payment of
                  state scheme premiums and corresponding reduction of Plan
                  benefits) shall apply accordingly. Subject thereto any
                  liability for the payment of such premiums shall be satisfied
                  after liabilities under paragraphs (1), (2) and, as far as may
                  be, (3) have been fully met.

- alternative lump sum in certain circumstances

      (e)   In any case where but for the provisions of this paragraph a Paid-up
            Policy would fall to be provided

            (1)   to secure a Trivial Pension in respect of any person, or

            (2)   to secure a pension in respect of a Member whose pension under
                  the Plan has not then commenced to be paid and who in the
                  opinion of the Trustees is in exceptional circumstances of
                  serious Ill-health, but only in so far as the pension to be so
                  secured exceeds the Guaranteed Minimum for the Member or his
                  widow or widower

            the Trustees may, instead of providing the appropriate benefits
            under a Paid-up Policy, convert them and (where and to the extent
            that the Trustees determine to be appropriate) any pension or other
            benefit contingently payable on the death of such person, into a
            lump sum and pay it to such person. The amount of the lump sum shall
            (subject to Rule 18 (Deduction of tax)) be determined by the
            Trustees being an amount confirmed by the Actuary to be reasonable.
            Upon payment of such lump sum each person entitled or contingently
            entitled to the pension or other benefits that would otherwise have
            been so secured shall thereupon cease to be so entitled.

- expenses of wind-up

      (f)   If under Rule 47 the Trustees are unable to recover from a
            Participating Employer all or any part of the costs, charges and
            expenses of and incidental to the realisation and distribution of
            the Fund (including the remuneration of the auditors and any
            officers appointed under the Rules) such costs, charges and expenses
            or so much of them as is not recovered from that Participating
            Employer shall be a first charge upon and shall be payable out of
            the Fund.

<PAGE>

                                                                        Page 108

OPTIONAL POWERS ON TERMINATION OF CONTRIBUTIONS
- continuation of Plan as a closed scheme

54.   The Trustees shall have the following powers if the contributions of all
      the Participating Employers are terminated under Rule 52:

      (A)   If contributions terminate before the Perpetuity Period ends, the
            Trustees may determine that instead of disposing of the Fund under
            Rule 53, they shall continue the Plan for so long as they think it
            appropriate but not after the end of the Perpetuity Period.

            If the Trustees decide to continue the Plan under this Sub-rule the
            following conditions shall apply:

            (1)   any continuation of the Plan shall be subject to such
                  conditions as the Trustees think fit;

            (2)   except as provided in (3) below, the benefits specified in
                  Part IV of the Rules (and, where appropriate, the Transfer
                  Rules) shall continue to be paid while the Plan continues but
                  no benefits shall accrue in respect of any period after
                  contributions terminate except to the extent of the GMP
                  Increase and Revaluation Increase or, if the Trustees decide
                  that accrual shall be so limited, any smaller amounts
                  necessary to comply with the protection of pensions and
                  revaluation of pensions provisions of the Pensions Act;

            (3)   the amount of any benefit under Part IV of the Rules shall be
                  reduced as the Trustees consider appropriate and in the case
                  of a benefit payable on the death of a person (other than a
                  benefit based only on the Member's Contributions) may, if the
                  Trustees so decide, cease to be payable;

            (4)   any continuation of the Plan, the terms and conditions on
                  which it is continued and any alteration to the benefits of
                  the Plan shall comply with the contracting-out requirements of
                  the Pensions Act and shall not be such as would prejudice
                  approval of the Plan under the Act.
<PAGE>

                                                                        Page 109

- transfers to another scheme

      (B)   The Trustees may determine that, in respect of any person or persons
            for whom the provisions for disposal contained in Rule 53 would
            otherwise have applied, the provisions of Rule 28 (Transfers to
            another scheme) shall be applied (save that the approval of the
            Principal Company shall not be required) to such part of the assets
            of the Fund as the Trustees shall determine having regard to the
            advice of the Actuary, being not less than the part of such assets
            which would otherwise have been applied under Rule 53 (other than
            paragraph (d)(5)) to provide Paid-up Policies or, as the case may
            be, cash sums in respect of such person or persons.

- non-statutory buy-out option

      (C)   The Trustees may permit any person whose benefits under the Plan
            have not become payable and to whom the provisions for disposal
            contained in Rule 53 would otherwise have applied and who does not
            have the Statutory Transfer Option to elect that, instead of such
            provisions, he shall have a Paid-up Policy in accordance with the
            provisions of Sub rule 10(C) (non-statutory buy-out option). The
            premium under any such Paid-up Policy shall be the amount which
            would otherwise have been applied in respect of him under Rule 53
            (other than paragraph (d)(5)) less any amount which the Trustees
            consider appropriate in respect of expenses.

- selective application of options on termination of contributions

      (D)   The Trustees may determine that the provisions of (B) or (C) of this
            Rule shall apply on such basis in all respects as they consider
            appropriate (having regard to the advice of the Actuary and where
            appropriate to the contracting-out requirements of the Pensions Act)
            to part of the benefits which would otherwise fall to be secured in
            respect of any person or persons under Rule 53 and the assets
            representing the same.

      Sub-rules (B) and (C) of this Rule shall not apply during any period for
      which the Trustees continue the Plan under (A) of this Rule.

<PAGE>

                                                                        Page 110

                        PART VIII - STATUTORY PROVISIONS

GUIDE TO INLAND REVENUE LIMITATIONS

- expressions used

55.   (A)   For the purpose of this Rule the following terms shall have the
            meanings ascribed to them and the term "Member" shall, where
            appropriate, include a Life Assurance Member:

            "Aggregate Retirement Benefit" means the aggregate of:

            (1)   the Member's pension under the Plan and any Associated Scheme
                  including any amount surrendered to provide a pension for his
                  widow, widower or a Dependent Relative, and

            (2)   the pension equivalent of the Member's Lump Sum Retirement
                  Benefit.

            "Associated Employer" An employer is associated with another
            employer if one is controlled by the other, or both are controlled
            by a third party. Control has the meaning in section 840 of the Act,
            or in the case of a close company, section 416 of the Act.

            "Associated Scheme" means any Relevant Scheme providing benefits in
            respect of Relevant Employment but does not include the Plan.

            "Class A Member" means:

            (a)   any Member who joined the Plan on or after 1st June 1989,
                  other than a Member who is a Class B Member or Class C Member
                  by virtue of paragraph (b) of the definition of Class B Member
                  or paragraph (b) of the definition of Class C Member below, or

            (b)   any Member who was previously a Class B Member or Class C
                  Member but who is treated as a Class A Member by virtue of an
                  election under Sub-rule 32(C) except that a Class B Member who
                  makes such an election may remain a Class B Member to the
                  limited extent referred to in paragraph (I) of Sub-rule 32(C).

            "Class B Member" means:

            (a)   any Member who joined the Plan on or after 17th March 1987 and
                  before 1st June 1989, or

<PAGE>

                                                                        Page 111

            (b)   any Member for whom paragraphs 20 and 22 to 26 of Schedule 6
                  to Finance Act 1989 do not apply by virtue of regulations made
                  pursuant to paragraph 19(2) of that Schedule or who is treated
                  in the same manner in accordance with conditions prescribed by
                  the Board of Inland Revenue,

            but who in either case is not a Member who is a Class C Member or
            treated as a Class A Member by virtue of an election under Sub-rule
            32(C) except that such a Member may remain a Class B Member to the
            limited extent referred to in paragraph (1) of Sub-rule 32(C),

            (c)   any Member who is a Class B Member to the limited extent
                  referred to in paragraph (3) of Sub-rule 32(C) following an
                  election under that paragraph.

            "Class C Member" means:

            (a)   any Member who joined the Plan before 17th March 1987, or

            (b)   any Member for whom paragraph 2, 3, 4 and 6 of Schedule 23 to
                  the Act do not apply by virtue of regulations made pursuant to
                  paragraph 1(2) of Schedule 23 to the Act or who is treated in
                  the same manner in accordance with conditions prescribed by
                  the Board of Inland Revenue,

            but who in either case is not a Member who is treated as a Class A
            Member by virtue of an election under Sub-rule 32(C).

            "Connected Plan" means any Relevant Scheme which is connected with
            the Plan in relation to the Member. For this purpose a Relevant
            Scheme is connected with the Plan if:

            (1)   there is a period during which the Member has been the
                  employee of two Associated Employers, and

            (2)   that period counts under both schemes as a period in respect
                  of which benefits are payable, and

            (3)   the period counts under one scheme for service with one
                  employer and under the other for service with the other
                  employer.

<PAGE>

                                                                        Page 112

            "Controlling Director" means a Member who, at any time after 16th
            March 1987 and in the last 10 years before the Relevant Date has
            been a director within the definitions of a director in both section
            612 of the Act and paragraph (b) of section 417(5) of the Act in
            relation to the Participating Employer.

Class A Members Class B Members and Class C Members after 16th March 1987

            "Final Remuneration" means:

            (1)   In relation to the retirement, leaving Relevant Service or
                  death of a Class A Member a Class B Member or a Class C Member
                  after 16th March 1987 the greater of:

                  (a)   the highest remuneration for any period of 12 months in
                        the 5 years preceding the Relevant Date being the
                        aggregate of

                        A.    the basic pay for the year in question, and

                        B.    the yearly average over 3 or more consecutive
                              years ending with the expiry of the corresponding
                              basic pay year, of any Fluctuating Emoluments
                              provided that Fluctuating Emoluments of a year
                              other than the basic pay year may be increased in
                              proportion to any increase in the Index of Retail
                              Prices from the last day of that year up to the
                              last day of the basic pay year. Remuneration that
                              is received after the Relevant Date and upon which
                              tax liability has been determined will be treated
                              as a Fluctuating Emolument (providing it was
                              earned or qualified for prior to the Relevant
                              Date). In these circumstances it may be included
                              provided the yearly average of 3 or more
                              consecutive years begins no later than the
                              commencement of the basic pay year, and

                  (b)   the yearly average of the total emoluments for any 3 or
                        more consecutive years ending not earlier than 10 years
                        before the Relevant Date.

                        Where such emoluments are received after the Relevant
                        Date but are earned or qualified for prior to that date,
                        they may be included provided that in these
                        circumstances the yearly average of 3 or more
                        consecutive years begins no later than the commencement
                        of the year ending with the Relevant Date.

<PAGE>

                                                                        Page 113

            (2)   For the purposes of (1) of this definition:

            (a)   except for the purposes of calculating the maximum lump sum
                  death benefit in accordance with Sub-rule (D) of this Rule
                  remuneration and total emoluments shall not include either:

                  A.    any amounts which arise from the acquisition or disposal
                        of shares or an interest in shares or from a right to
                        acquire shares except any amount which is assessed on
                        the Member under Schedule E of the Act in respect of any
                        such acquisition or disposal, interest or right which
                        arose from an entitlement or option created or granted
                        before 17th March 1987, or

                  B.    any amount in respect of which tax is chargeable by
                        virtue of section 148 of the Act;

            (b)   in relation to a Controlling Director, Final Remuneration
                  shall be the amount ascertained in accordance with
                  sub-paragraph (1)(b) above and sub-paragraph (1)(a) above
                  shall not apply;

            (c)   subject to sub-paragraph (d) below, in the case of a Member
                  whose remuneration received from the Participating Employers
                  in any year after 5th April 1987 has exceeded (pound)100,000
                  (or such other sum as may be prescribed in an order made by
                  the Treasury) sub-paragraph (1)(a) above shall not apply and
                  the amount under sub-paragraph (1)(b) above shall be increased
                  to the lesser of (pound)100,000 where it would otherwise fall
                  below that figure and the amount which would otherwise have
                  been calculated under sub-paragraph (1)(a) above;

            (d)   in relation to any Member for whom the date of termination of
                  Service is before 6th April 1991 who is not a Controlling
                  Director and whose remuneration received from the
                  Participating Employers in any year after 5th April 1987 has
                  exceeded (pound)100,000 (or such other sum as may be
                  prescribed in an order made by the Treasury) Final
                  Remuneration shall notwithstanding paragraph (c) above (but
                  subject to paragraph (f) below) be the greater of the amounts
                  ascertained under sub-paragraphs (a) and (b) of paragraph (1)
                  above subject to a maximum of the greatest of:

<PAGE>

                                                                        Page 114

                  A.    the amount ascertained under sub-paragraph (a) of
                        paragraph (1) above in relation to any year ending
                        before 6th April 1987, and

                  B.    the Member's total emoluments (other than any amount
                        excluded under sub-paragraph (a) above) for the year
                        ending on 5th April 1987 excluding any increase under
                        sub-paragraph (e) below, and

                  C.    the amount ascertained under sub-paragraph (b) of
                        paragraph (1) above;

            (e)   where Final Remuneration is computed by reference to any year
                  other than the last complete year ending on the Relevant Date,
                  the Member's remuneration (as calculated in sub-paragraph (a)
                  of paragraph (1) above) or total emoluments (for the purposes
                  of sub-paragraph (b) of paragraph (1) above) of any year may
                  be increased in proportion to any increase in the Index of
                  Retail Prices from the last day of that year up to the
                  Relevant Date but in the case of a Class C Member this
                  sub-paragraph shall not apply to the calculation of the
                  maximum Lump Sum Retirement Benefit in accordance with
                  Sub-rule (C) of this Rule unless the member's Aggregate
                  Retirement Benefit is similarly increased beyond the maximum
                  amount which could have been paid but for this paragraph and
                  the proviso to sub-paragraph (1)(a)(B) above and then only to
                  the same proportionate extent;

            (f)   for the purpose of the calculation of the maximum Lump Sum
                  Retirement Benefit for a Class B Member in accordance with
                  Sub-rule (C) of this Rule, Final Remuneration shall not in any
                  event exceed (pound)100,000 or such other sum as may be
                  specified in an order made by the Treasury;

            (g)   remuneration and total emoluments shall include any amounts
                  upon which the Member has been assessed under Schedule E of
                  the Act in respect of any benefits in kind other than any
                  amount excluded by sub-paragraph (a) above;

            (h)   in the case of a Class A Member Final Remuneration shall not
                  exceed the permitted maximum as defined in Section 590C(2) of
                  the Act;

<PAGE>

                                                                        Page 115

            (i)   an employee who remains, or is treated as remaining, in
                  Service but by reason of incapacity is in receipt of a reduced
                  remuneration for more than 10 years up to the Relevant Date,
                  may calculate Final Remuneration under sub-paragraph (1)(a) or
                  (b) above with the Final Remuneration calculated at the date
                  of cessation of normal pay and increased in accordance with
                  the Index of Retail Prices, in the manner laid down in
                  sub-paragraph (2)(e) above;

            (j)   the total amount of any profit related pay (whether relieved
                  from income tax or not) may be classed as remuneration and
                  treated as a Fluctuating Emolument;

            (k)   an early retirement pension in payment from a Participating
                  Employer may not be included in Final Remuneration;

            (l)   for the purposes of providing immediate benefits at the
                  Relevant Date it will be permitted to calculate Final
                  Remuneration on the appropriate basis above using remuneration
                  upon which tax liability has not been determined. On
                  determination of this liability Final Remuneration must be
                  recalculated. Should this result in a lower Final Remuneration
                  then benefits in payment should be reduced if this is
                  necessary to ensure that they do not exceed the maximum
                  approvable based on the lower Final Remuneration. Where Final
                  Remuneration is greater it will be possible to augment
                  benefits in payment but such augmentation must take the form
                  of a non-commutable pension.

                  Where immediate benefits are not being provided or where a
                  transfer payment is to be made in respect of accrued pension
                  benefits then Final Remuneration may only be calculated using
                  remuneration upon which tax liability has been determined.

Class C Members before 17.3.87

      (3)   In relation to the retirement, leaving Relevant Service or death of
            a Class C Member before 17th March 1987 the greater of:

            (a)   the highest remuneration for any period of 12 months in the 5
                  years preceding the Relevant Date being the aggregate of:

                  A.    the basic pay for the year in question, and

<PAGE>

                                                                        Page 116

                  B.    the yearly average over 3 or more consecutive years
                        ending with the expiry of the corresponding basic pay
                        year, of any fluctuating emoluments provided that
                        fluctuating emoluments of a year other than the basic
                        pay year may be increased in proportion to any increase
                        in the Index of Retail Prices from the last day of that
                        year up to the last day of the basic pay year, and

            (b)   the yearly average of the total emoluments for any 3 or more
                  consecutive years ending not earlier than 10 years before the
                  Relevant Date.

      (4)   For the purposes of (3) of this definition:

            (a)   in relation to a Controlling Director Final Remuneration shall
                  be the amount ascertained in accordance with sub-paragraph (3)
                  (b) above and sub-paragraph (3) (a) above shall not apply;

            (b)   where Final Remuneration is computed by reference to any year
                  other than the last complete year ending on the Relevant Date,
                  the Member's remuneration (as calculated in sub-paragraph
                  (3)(a) above) or total emoluments (as calculated in
                  sub-paragraph (3)(b) above) of any year may be increased in
                  proportion to any increase in the Index of Retail Prices from
                  the last day of that year up to the Relevant Date but this
                  sub-paragraph shall not apply to the calculation of the
                  maximum Lump Sum Retirement Benefit in accordance with
                  Sub-rule (C) of this Rule unless the Member's Aggregate
                  Retirement Benefit is similarly increased beyond the maximum
                  amount which could have been paid but for this sub-paragraph
                  and the proviso to sub-paragraph (3)(a)B. above and then only
                  to the same proportionate extent.

      "Fluctuating Emoluments" means the part of an employee's earnings which
      are not paid on a fixed basis and are additional to the basic wage or
      salary. They include overtime, commission, bonuses or benefits in kind and
      profit related pay. Directors' fees may rank as fluctuating emoluments
      according to the basis on which they are voted.

      "Lump Sum Retirement Benefit" means the total value of all retirement
      benefits payable in any form other than pension under this and any
      Associated Schemes.

      "Relevant Date" means the date of a Member's retirement from Service,
      leaving Relevant Service or death as the case may be.

<PAGE>

                                                                        Page 117

      "Relevant Employment" means employment with a Participating Employer or an
      Associated Employer or, except in relation to a Class A Member who is a
      Controlling Director of either employer, an employer who is associated
      with a Participating Employer only by virtue of a permanent community of
      interest.

      "Relevant Scheme" means any other scheme approved or seeking approval
      under Chapter I Part XIV of the Act and in respect of a Class A Member who
      retires from Service or leaves Pensionable Service on or after 31st August
      1991 and who is a Controlling Director includes any retirement annuity
      contract or trust scheme approved under Chapter III Part XIV or any
      personal pension scheme as approved under Chapter IV Part XIV of the Act
      insofar as it provides benefits secured by contributions in respect of
      Relevant Employment.

      "Relevant Service" shall have the meaning ascribed to pensionable service
      by section 70 of the Pensions Act.

      "Remuneration" in relation to any year means the aggregate of the total
      emoluments for the year in question from a Participating Employer but
      excluding

      A     any amounts which arise from the acquisition or disposal of shares
            or an interest in shares or from a right to acquire shares,

      B     any amount in respect of which tax is chargeable by virtue of
            section 148 of the Act,

      C     for a Class A Member any emoluments in excess of the permitted
            maximum as defined in Section 590C(2) of the Act.

      "Retained Death Benefits" means any lump sum benefit (other than a refund
      of his own contributions and interest thereon) payable on the Member's
      death in respect of previous employment or periods of self-employment
      (whether alone or in partnership) and arising from:

      (a)   retirement benefits schemes approved or seeking approval under
            Chapter 1 Part XIV of the Act or relevant statutory schemes as
            defined in section 611A thereof,

      (b)   funds to which section 608 of the Act applies,

<PAGE>

                                                                        Page 118

      (c)   retirement benefits schemes which have been accepted by the Inland
            Revenue as "corresponding" in respect of a claim made on behalf of
            the Member for the purposes of section 596(2)(b) of the Act,

      (d)   any lump sum life assurance benefit under retirement annuity
            contracts or trust schemes approved under Chapter III Part XIV of
            the Act,

      (e)   any lump sum life assurance benefit under personal pension schemes
            approved under Chapter IV Part XIV of the Act,

      (f)   transfer payments from overseas schemes held in a type of
            arrangement defined in (a) (d) or (e) above.

      If the Retained Death Benefits do not exceed (pound)2,500 in total they
      may be ignored.

      Retained Death Benefits may also be ignored for any Member (other than a
      Member who at the date of joining the Plan or at any time in the last 10
      years before the date of joining the Plan has been a director within the
      definitions of a director in both section 612 of the Act and paragraph (b)
      of section 417(5) of the Act in relation to the Participating Employer)
      who joins the Plan on or after 31st August 1991 and whose total
      remuneration for the twelve months commencing on the date of joining the
      Plan does not exceed one-quarter of the permitted maximum as defined in
      Section 590C(2) of the Act in force at the date of joining the Plan.

- Member's pension

(B)   The Member's Aggregate Retirement Benefit shall not exceed:

Class A Members

      (1)   for a Class A Member

            (a)   on retirement at any time between attaining age 50 and
                  attaining age 75, except before Normal Retiring Date on
                  grounds of Incapacity, a pension of 1/60th of Final
                  Remuneration for each year of Relevant Employment (not
                  exceeding 40 years) or such greater amount as will not
                  prejudice approval of the Plan under the Act,

            (b)   on retirement at any time before Normal Retiring Date on
                  grounds of Incapacity a pension of the amount which could have
                  been provided at Normal Retiring Date in accordance with
                  (1)(a) of this Sub-rule, Final Remuneration being computed as
                  at the actual date of retirement,

<PAGE>

                                                                        Page 119

            (c)   on leaving Relevant Service before attaining age 75, a pension
                  of 1/60th of Final Remuneration for each year of Relevant
                  Employment prior to leaving relevant Service (not exceeding 40
                  years) or such greater amount as will not prejudice approval
                  of the Plan under the Act. The amount so computed may be
                  increased at the rate of 5 per cent. per annum compound or, if
                  greater, in proportion to any increase in the Index of Retail
                  Prices which has occurred between the date of termination of
                  Relevant Service and the date on which the pension begins to
                  be payable. Any further increase necessary to comply with
                  Social Security legislation is also allowable,

            (d)   benefits for a Class A Member are further restricted to ensure
                  that his total retirement benefit from the Plan and from an
                  Associated Scheme or Connected Scheme does not exceed a
                  pension of 1/30th of the permitted maximum as defined in
                  section 590C(2) of the Act for each year of service, subject
                  to a maximum of 20/30ths. For the purpose of this limit,
                  service is the aggregate of Relevant Employment and any period
                  of service which gives rise to benefits under a Connected
                  Scheme provided that no period is to be counted more than
                  once,

            (e)   for the purpose of calculating the Aggregate Retirement
                  Benefit or the total retirement benefit in (a) to (d) above,
                  the pension equivalent of any Lump Sum Retirement Benefit is
                  one twelfth of its total cash value.

Class B Members and Class C Members

      (2)   for a Class B Member and a Class C Member;

            (a)   on retirement at or before Normal Retiring Date, a pension of
                  1/60th of Final Remuneration for each year of Relevant
                  Employment (not exceeding 40 years) or such greater amount as
                  will not prejudice approval of the Plan under the Act. Where
                  retirement is due to Incapacity, Relevant Employment shall
                  include the period between the date of retirement and Normal
                  Retiring Date;

            (b)   on retirement after Normal Retiring Date, a pension of the
                  greatest of:

                  A.    the amount calculated in accordance with (2)(a) of this
                        Sub-rule on the basis that the actual date of retirement
                        was the Member's Normal Retiring Date,

<PAGE>

                                                                        Page 120

                  B.    the amount which could have been provided at Normal
                        Retiring Date in accordance with (2)(a) of this Sub-rule
                        increased either actuarially in respect [Pages 123-124
                        missing] that the actual date of retirement was the
                        Normal Retiring Date, and

                  C.    the amount which could have been provided at Normal
                        Retiring Date in accordance with (2)(a) of this Sub-rule
                        together with an amount representing interest thereon,
                        and

                  D.    where the Member's total Relevant Employment has
                        exceeded 40 years, the aggregate of 3/80ths of Final
                        Remuneration for each year of Relevant Employment before
                        Normal Retiring Date (not exceeding 40 such years) and
                        of a further 3/80ths of Final Remuneration for each year
                        of Relevant Employment after Normal Retiring Date, with
                        an overall maximum of 45 reckonable years,

                  Final Remuneration being computed for the purposes of
                  sub-paragraphs A. and C. above as at the actual date of
                  retirement, but subject always to Sub-rule (G) of this Rule;

            (c)   on leaving Relevant Service before Normal Retiring Date, a
                  lump sum of 3/80ths of Final Remuneration for each year of
                  Relevant Employment prior to leaving Relevant Service (not
                  exceeding 40 years) or such greater amount as will not
                  prejudice approval of the Plan under the Act. The amount
                  computed as aforesaid may be increased in proportion to any
                  increase in the Index of Retail Prices which has occurred
                  between the date of termination of Relevant Service and the
                  date on which the benefit is first paid.

<PAGE>

                                                                        Page 121

      Provided that in any case where a Member has been a Part-time Member
      during part (but not all) of his Pensionable Service and the Board of
      Inland Revenue so requires, then the Lump Sum Retirement Benefit shall not
      exceed the aggregate of the lump sums calculated separately as in
      sub-paragraphs (a), (b) or (c) of paragraph (1) above or sub-paragraphs
      (a), (b) or (c) of paragraph (2) above (as appropriate) in respect of each
      Period, based on Final Remuneration at the end of the Period whether or
      not such Period ends on the date he leaves the Plan. For this purpose
      "Period" means any period of Pensionable Service at the start of which
      either the Member's Pensionable Service commences or he becomes, or ceases
      to be, a Part-time Member and at the end of which he either ceases to be,
      or becomes (as appropriate) a Part-time Member or he leaves the Plan, or
      such greater amount as will not prejudice approval of the Plan under the
      Act.

      The above limitations shall not apply to any lump sum payable by way of a
      refund of Member's Contributions and interest thereon, by conversion of
      pension into a lump sum in exceptional circumstances of serious Ill-health
      or where the pension is a Trivial Pension.

- lump sum death benefits

(E)   The lump sum benefit (exclusive of any refund of the Member's own
      contributions and interest thereon) payable on the death of a Member while
      in Relevant Employment or (having left Relevant Employment with a deferred
      pension) before the commencement of his pension shall not, when aggregated
      with all like benefits under Associated Plans, exceed the greater of:

      (1)   (pound)5,000, and

      (2)   four times the greater of Final Remuneration and the annual rate of
            the Member's basic salary or wages at the date of death or leaving
            Relevant Service together with the yearly average of Fluctuating
            Emoluments in the 3 years (or the whole period of Relevant
            Employment if less) up to the date of death or leaving Relevant
            Service (but in the case of a Class A Member not exceeding the
            permitted maximum as defined in Section 590C(2) of the Act),

            less Retained Death Benefits.

<PAGE>

                                                                        Page 122

      Provided that in any case where a Member has been a Part-time Member
      during a part but not all of his Pensionable Service and he is a Part-time
      Member at the date of his death, "Final Remuneration" for the purpose of
      (2) of this paragraph (D) shall be the Member's basic pay in any 12 months
      period ending not earlier than 36 months before the Member's date of
      death, plus the yearly average of any fluctuating emoluments in that 36
      months period, but so that fluctuating emoluments of a year other than the
      12 months period ending on the date of the Member's death may be increased
      in proportion to any increase in the Index of Retail Prices from the last
      day of that year up to the Member's date of death.

- dependant's pensions

(F)   Any pension for a widow, widower or Dependent Relative (other than a
      pension provided by surrender of the Member's own pension), when
      aggregated with the pensions, other than those provided by surrender of
      the Member's own pension, payable to that widow, widower or Dependent
      Relative under all Associated Plans and in the case of Members whose death
      occurs before 31st August 1991 all Relevant Plans of previous employers
      shall not exceed an amount equal to 2/3rds of the maximum Aggregate
      Retirement Benefit which could have been payable to the Member immediately
      prior to his death calculated as if he was not entitled to any benefit
      arising from any previous employments and calculated in the case of a
      Member who was in Service at the date of his death as if he had retired on
      the grounds of Incapacity immediately prior to his death or such greater
      amount as will not prejudice approval of the Plan under the Act.

      If such pensions are payable to more than one person in respect of a
      Member, the aggregate of all such pensions payable in respect of him under
      this and all Associated Plans shall not exceed the full amount of the
      maximum Aggregate Retirement Benefit calculated as described above in this
      paragraph or such greater sum as will not prejudice approval of the Plan
      under the Act.

- pension increases

(G)   The maximum amount of a pension ascertained in accordance with this Rule
      less any pension which has been commuted for a lump sum or the pension
      equivalent of any benefits in lump sum form or surrendered to provide a
      pension for the Member's widow, widower or Dependent Relative may be
      increased at the rate of 3 per cent. per annum compound or, if greater, in
      proportion to the increase in the Index of Retail Prices since the pension
      commenced.

<PAGE>

                                                                        Page 123

- late retirement

(H)   If a Class B Member or Class C Member elects under Rule 8 (Late Retirement
      Pension) to take any part of his benefits under the Plan in advance of
      actual retirement, the limits set out in Sub-rules (B) and (C) of this
      Rule shall apply as if he had retired at the date of the election as
      aforesaid, no account being taken of subsequent Relevant Employment, save
      that the maximum amount of any uncommuted pension not commencing
      immediately may be increased either actuarially in respect of the period
      of deferment or in proportion to any increase in the Index of Retail
      Prices during that period.

- Controlling Directors

(I)   The preceding provisions of this Rule shall be modified in their
      application to a Class B Member or Class C Member who is a Controlling
      Director as follows:

      (1)   The amount of the maximum Aggregate Retirement Benefit in Sub-rule
            (B) of this Rule and of the maximum Lump Sum Retirement Benefit in
            Sub-rule (C) of this Rule shall be reduced, where necessary for
            approval of the Plan under the Act, so as to take account of any
            corresponding benefits under either a retirement annuity contract or
            trust scheme approved under Chapter III Part XIV of the Act or a
            personal pension scheme approved under Chapter IV Part XIV of the
            Act or a Personal Pension Plan

      (2)   If he is a Controlling Director at his Normal Retiring Date:

            (a)   where retirement takes place after Normal Retiring Date but
                  not later than the Member's 70th birthday, sub-paragraphs
                  (2)(b)B. and C. of Sub-rule (B) of this Rule and
                  sub-paragraphs (2)(b)B. and C. of Sub-rule (C) of this Rule
                  shall not apply, and if retirement is later than the
                  attainment of that age, the said paragraphs shall apply as if
                  the Member's 70th birthday had been specified in the Rules as
                  his Normal Retiring Date, so as not to treat as Relevant
                  Employment after Normal Retiring Date any Relevant Employment
                  before the Member reaches the age of 70;

            (b)   where Sub-rule (G) of this Rule applies to him, the rate of
                  the actuarial increase referred to therein in relation to any
                  period of deferment prior to his attaining the age of 70,
                  shall not exceed the percentage increase in the Index of
                  Retail Prices during that period.

<PAGE>

                                                                        Page 124

- maximum yearly contributions

      (J)   The total contributions paid by a Member in a Tax Year to this and
            any Relevant Plan providing benefits by virtue of Relevant
            Employment shall not exceed 15 per cent. of his Remuneration for
            that Tax Year in respect of that Relevant Employment.

      (K)   Where the application of the limits set out in this Rule requires
            the amount of any benefit payable to or in respect of a Member to be
            restricted and the Member has paid Member's Voluntary Contributions,
            that restriction shall be first applied to the benefits attributable
            to the Member's Voluntary Contributions so as to permit the
            repayment of surplus funds subject to the provisions of section 599A
            of the Act.

CONTRACTING-OUT OF THE STATE EARNINGS RELATED PENSION SCHEME

56.   (A)   The provisions of this Rule shall apply if any employment becomes
            Contracted-out Employment and such provisions shall override all
            other provisions of the Plan except any that are in accordance with
            the provisions of the Pensions Act.

      (B)   The Trustees shall operate the Plan in all respects in accordance
            with the contracting-out requirements of the Pensions Act.

- guaranteed minimum pension (GMP)

      (C)   (1)   If a Member has a guaranteed minimum in relation to the
                  pension for him under the Plan in accordance with section 14
                  of the Pensions Act

                  (a)   the weekly rate of the Member's pension under the Plan
                        from Pensionable Age shall not be less than that
                        guaranteed minimum, and

                  (b)   if the Member is male and dies at any time leaving a
                        widow, the weekly rate of her pension under the Plan
                        shall not be less than her guaranteed minimum (if any)
                        which is one-half of the Member's guaranteed minimum
                        including any increases therein arising from increases
                        in the Member's guaranteed minimum under Sub-rule (D) of
                        this Rule, and

                  (c)   if the Member is female and dies on or after 6th April
                        1989 leaving a widower, the weekly rate of his pension
                        under the Plan shall not be less than his guaranteed
                        minimum (if any) which is one-half of that part of the
                        Member's guaranteed minimum which is attributable to
                        earnings for the Tax Year 1988-89 and later Tax Years,
                        including any increases therein arising from increases
                        in the Member's guaranteed minimum under Sub-rule (D) of
                        this Rule.

<PAGE>

                                                                        Page 125

            (2)   The guaranteed minimum pensions referred to in (1) of this
                  Sub-rule shall, to the extent that they are attributable to
                  earnings factors for the Tax Year 1988-89 and later Tax Years,
                  be increased in accordance with the requirements of section
                  109 of the Pensions Act and to the extent of any orders made
                  thereunder.

            (3)   In determining whether the weekly rate of the pension payable
                  under the Plan to the Member or the widow or widower is less
                  than the amount specified in (a), (b) or (c) of (1) above any
                  part of such pension which

                  (a)   arises from Member's Voluntary Contributions, or

                  (b)   represents Equivalent Pension Benefits

                  shall be disregarded.

- retirement after Pensionable Age

      (D)   If the commencement of the Member's Guaranteed Minimum Pension is
            postponed for any period after Pensionable Age his guaranteed
            minimum shall be increased to the extent, if any, specified in
            section 15 of the Pensions Act.

- revaluation of GMP for early leavers

      (E)   In the event of any Member's service in Contracted-out Employment
            being terminated before Pensionable Age the guaranteed minimum which
            has accrued up to termination will be increased

            (1)   by the percentage by which earnings factors for the Tax Year
                  in which Contracted-out Employment terminated are increased by
                  the last Order made under section 148 of the Social Security
                  Administration Act 1992 coming into force before the earlier
                  of the Tax Year in which the Member attains Pensionable Age
                  and the Tax Year in which the Member dies, in which event the
                  amount of and the terms and conditions appropriate to any
                  benefit which becomes payable during the lifetime of the
                  Member prior to Pensionable Age shall be determined by the
                  Trustees having regard to the advice of the Actuary, or

<PAGE>

                                                                        Page 126

            (2)   by either

                  (a)   5 per cent. compound for each Tax Year after that in
                        which Contracted-out Employment terminated up to and
                        including the last complete Tax Year before Pensionable
                        Age or the earlier death of the Member, or

                  (b)   as in (1) above

                  whichever makes the lesser increase but so that in the event
                  of a benefit becoming payable under the Plan during the
                  lifetime of the Member and before Pensionable Age or in the
                  event of a Trivial Pension being commuted before Pensionable
                  Age the amount of such benefit or such Trivial Pension shall
                  be calculated as if (a) above applied to the calculation of
                  the increase in the Member's accrued guaranteed minimum, or

            (3)   in respect of each Tax Year after that in which Contracted-out
                  Employment terminated up to and including the last complete
                  Tax Year before Pensionable Age or the earlier death of the
                  Member by such rate as regulations made under section 55(5) of
                  the Pensions Act specify as being relevant to the date of
                  termination.

            Such increases shall be calculated on the basis set out in paragraph
            (2) above provided that

                  (a)   where under Sub-rule 27(E) (Transfers from another
                        scheme - revaluation of GMP) the Trustees have
                        determined that any part of the guaranteed minimum shall
                        be increased on a basis otherwise than in accordance
                        with orders made under section 148 of the Social
                        Security Administration Act 1992 such basis shall
                        continue to apply to such part, subject to sub-paragraph
                        (b) below,

                  (b)   if liability for the guaranteed minimum is transferred
                        to another fund, scheme or arrangement in accordance
                        with Rule 28 (Transfers to another scheme) or the
                        Statutory Transfer Option the Trustees may determine
                        that such guaranteed minimum (and in the circumstances
                        permitted by regulations 44 and 45 of the Occupational
                        Pension Plans (Contracting-out) Regulations 1984 and
                        notwithstanding proviso (a) hereto any part thereof to
                        which the provisions of Sub-rule 27(E) (Transfers from
                        another scheme - revaluation of GMP) apply) shall be
                        increased by reference to one of the alternative bases
                        set out above,

<PAGE>

                                                                        Page 127

                  (c)   except where sub-paragraph (d) below applies, if the
                        Principal Company so requests one of the alternative
                        bases set out above shall be substituted therefor. Any
                        such request shall be made by the Principal Company by
                        notice in writing to the Trustees specifying the
                        alternative basis and the date upon which such
                        alternative basis is to become effective. Upon receipt
                        of such notice the Trustees shall notify the
                        Occupational Pensions Board of the change which shall
                        take effect in respect of all Members whose
                        Contracted-out Employment terminates on and after the
                        effective date specified in such notice,

                  (d)   in the event of the Plan ceasing to be a contracted-out
                        scheme for the purposes of the Pensions Act upon the
                        termination of contributions by all Participating
                        Employers the Trustees may determine that one of the
                        alternative bases set out above shall be substituted
                        therefor in respect of all Members whose Contracted-out
                        Employment thereupon terminates and the Trustees shall
                        then notify the Occupational Pensions Board of the
                        change.

- Anti-franking definitions

      (F)   (1)   In this Sub-rule:-

                  "Accrued Overall GMP" means the Member's Accrued Guaranteed
                  Minimum plus the yearly equivalent of any rights to guaranteed
                  minimum pension for the purposes of section 14 of the Pensions
                  Act accrued to him under the Transfer Rules on the day after
                  his Contracted-out Employment ends

                  "Contracted-out Pension" means

                  (a)   in relation to a Member, the yearly pension which has
                        accrued to the Member under the Rules on the day after
                        his Contracted-out Employment ends, including any
                        pension under the Transfer Rules. If the Member's
                        Contracted-out Employment ends before Normal Retiring
                        Date, the Contracted-out Pension shall be calculated as
                        if the Normal Retiring Date were the day after his
                        Contracted-out Employment ends

<PAGE>

                                                                        Page 128

                  (b)   in relation to a Member's widow or widower, the yearly
                        pension to which the widow or widower would have been
                        entitled under the Rules (including any pension under
                        the Transfer Rules) had the Member died on the day after
                        his Contracted-out Employment ended and if the Member
                        had then been married to the widow or widower. For the
                        purposes of calculating the Contracted-out Pension where
                        the Member dies in Service any part of that pension
                        which derives from a period of notional service after
                        the date Contracted-out Employment ended shall be
                        ignored.

                  In any case where any part of the pension referred to in (a)
                  or (b) above is to be the greater of

                  (1)   an amount which is calculated by reference to the
                        Member's earnings, and

                  (2)   an amount which is not calculated by reference to the
                        Member's earnings

                  the Contracted-out Pension shall be computed as if any such
                  calculation which is not related to the Member's earnings did
                  not apply.

                  "Later Earnings Addition" means,

                  (a)   in relation to a Member who remains in Pensionable
                        Service after his Contracted-out Employment ends

                        FPE2 - 1
                        ----
                        FPE1

                        multiplied by the excess of the Contracted-out Pension
                        over the Accrued Overall GMP.

                        Where FPE2 is the Member's Final Pensionable Salary or
                        Final Remuneration (as appropriate) used for calculating
                        his pension under the Rules and FPE1 is the
                        corresponding amount at the date his Contracted-out
                        Employment ended

                  (b)   in relation to the widow or widower of a Member to whom
                        (a) above applies,

<PAGE>

                                                                        Page 129

                        FPE2 - 1
                        ----
                        FPE1

                        multiplied by the excess of the Contracted-out Pension
                        over one-half of the Member's Accrued Overall GMP.

                        Where FPE2 and FPE1 have the same meanings as in (a)
                        above.

- Member's Anti-franking Minimum

            (2)   If, upon the termination of a Member's Contracted-out
                  Employment other than by death,

                  (a)   the Contracted-out Pension exceeds the Accrued Overall
                        GMP and

                  (b)   the Member's guaranteed minimum is required to be
                        increased in accordance with either or both of Sub-rules
                        (D) and (E) of this Rule,

                  the Member shall have an Anti-franking Minimum.

                  The Member's Anti-franking Minimum is calculated as the total
                  of:-

                  a.    the Contracted-out Pension;

                  b.    any increase in the Member's guaranteed minimum under
                        Sub-rules (D) and (E) of this Rule but excluding any
                        part of the increase which is attributable to guaranteed
                        minimum pension payable under the Transfer Rules and
                        which was first transferred before the 1st January 1985;

                  c.    if the Member is entitled to a Late Retirement Pension,
                        the amount (if any) by which the excess of the
                        Contracted-out Pension over the Accrued Overall GMP is
                        increased by reason of its payment being postponed for
                        any period which is after Contracted-out Employment ends
                        and after Normal Retiring Date, and

                  d.    if the Member remains in Pensionable Service after his
                        Contracted-out Employment ends, the total of

<PAGE>

                                                                        Page 130

                        (1)   an amount calculated in accordance with Rule 6
                              (Normal Retirement Pension) in relation to the
                              period of Pensionable Service after his
                              Contracted-out Employment ends, and

                        (2)   the Member's Later Earnings Addition.

                  In any case where the Member's pension is to be compared with
                  the Anti-franking Minimum at a date later than the date his
                  pension commenced, the Anti-franking Minimum shall be reduced
                  by the yearly amount of any Member's pension converted into a
                  lump sum under Rule 11 or surrendered under Rule 15 (Surrender
                  of Member's pension to provide a dependant's pension) or
                  forfeited under either Rule 23 (Non-assignability of benefits)
                  or Rule 31 (Lien on benefits).

- widow's/widower's Anti-franking Minimum

            (3)   If a Member dies and is survived by a widow or widower,

                  (a)   and the widow's or widower's Contracted-out Pension
                        exceeds one-half of the Member's Accrued Overall GMP,
                        and

                  (b)   at any time when a pension is payable to the widow or
                        widower under the Plan the widow's or widower's
                        Guaranteed Minimum exceeds one-half of the Member's
                        Accrued Overall GMP

                  the widow or widower shall have an Anti-franking Minimum.

                  The widow's or widower's Anti-franking Minimum is calculated
                  as the total of:-

                  a.    the Contracted-out Pension;

                  b.    the amount by which the widow's or widower's Guaranteed
                        Minimum exceeds one-half of the Member's Accrued Overall
                        GMP.

<PAGE>

                                                                        Page 131

                  c.    if the Member died after Contracted-out Employment ended
                        and after Normal Retiring Date, the amount (if any) by
                        which the excess of the widow's or widower's
                        Contracted-out Pension over one-half of the Member's
                        Accrued Overall GMP is increased by reason of the
                        payment of the Member's pension being postponed for a
                        period which is after Contracted-out Employment ended
                        and after Normal Retiring Date,

                  d.    if the Member remained in Pensionable Service after his
                        Contracted-out Employment ended, the total of:-

                        (1)   that part of the widow's or widower's pension
                              under Rule 14 which relates to the period of
                              Pensionable Service which is after the Member's
                              Contracted-out Employment ended, and

                        (2)   the widow's or widower's Later Earnings Addition,

                        reduced by the yearly amount of any widow's or widower's
                        pension forfeited under Rule 23 - (Non-assignability of
                        benefits).

- payment of state scheme premiums and corresponding reduction of Plan benefits

      (G)   (1)   If under section 55(2), (3) or (4) of the Pensions Act and
                  Part III of the Occupational Pension Plans (Contracting-out)
                  Regulations 1984, the Trustees may pay a state scheme premium
                  in respect of a Member, they shall be entitled to pay it out
                  of the Fund and (2) of this Sub-rule shall thereupon apply.

            (2)   If a state scheme premium other than a limited revaluation
                  premium is paid or credited as paid under the Pensions Act in
                  respect of a Member or the widow or widower of a Member,

                  (a)   Sub-rules (C), (D), (E) and (F) of this Rule shall cease
                        to apply in respect of the Member and his widow or
                        widower, and

<PAGE>

                                                                        Page 132

                  (b)   any benefit payable or prospectively payable under the
                        Plan to or in respect of the Member or his widow or
                        widower shall be adjusted or extinguished in consequence
                        of the premium having been paid or credited as paid and
                        the amount of the benefit and any change in its terms
                        and conditions shall be determined in each case by the
                        Trustees having regard to the advice of the Actuary.

            Any reduction in the amount of pension payable to the Member or his
            widow or widower under this Sub-rule shall be made on a basis agreed
            by the Occupational Pensions Board to be reasonable but shall not
            exceed the Guaranteed Minimum.

- Plan ceasing to be contracted-out

      (H)   (1)   In the event of the Plan ceasing to be a contracted-out scheme
                  for the purposes of the Pensions Act other than upon the
                  termination of contributions by all Participating Employers
                  the Principal Company may by notice in writing to the Trustees
                  before the expiration of the period of three months commencing
                  on the date of such cessation direct that, subject to the
                  Rules,

                  (a)   Guaranteed Minimum Pensions shall be preserved under the
                        Plan, secured by Paid-up Policies or by payment of state
                        scheme premiums under section 55(1)(a) and (b) of the
                        Pensions Act, or transferred as specified in such
                        notice, and

                  (b)   the basis upon which Guaranteed Minimum Pensions shall
                        be increased thereafter shall be changed if and as
                        specified in such notice.

                  The Trustees shall do all things necessary to give effect to
                  any direction given by the Principal Company under this
                  paragraph and shall seek the approval of the Occupational
                  Pensions Board under section 50(1) of the Pensions Act to any
                  arrangements (except the payment of state scheme premiums
                  under section 55(1)(a) and (b) of the Pensions Act) to be made
                  in respect of Guaranteed Minimum Pensions in accordance with
                  such notice.

<PAGE>

                                                                        Page 133

            (2)   Subject to paragraph (1) of this Sub-rule, in the event of the
                  Plan ceasing to be a contracted-out scheme for the purposes of
                  the Pensions Act the Trustees shall seek the approval of the
                  Occupational Pensions Board under section 50(1) of the
                  Pensions Act to any arrangements (except the payment of
                  state-scheme premiums under section 55(1)(a) and (b) of the
                  Pensions Act) made or to be made in respect of Guaranteed
                  Minimum Pensions.

CONTRACTING-OUT OF THE OLD STATE GRADUATED PLAN

57.   (A)   The provisions of the Plan shall have effect subject to the
            provisions of this Rule and for the purposes of this Rule

            (1)   "non-participating service" in relation to a Member means
                  service by virtue of which his membership of the Plan can be
                  treated as service in a non-participating employment within
                  the meaning of the National Insurance Act and in relation to
                  which there was in force a certificate issued under the
                  National Insurance Act that it is to be so treated.

            (2)   "assured of equivalent pension benefits" in relation to a
                  Member means assured of equivalent pension benefits for the
                  purposes of the National Insurance Act

      (B)   Subject to paragraph (D) (4) of this Rule the benefits to which a
            Member who has completed a period of non-participating service
            becomes entitled under the Plan shall, where necessary, be augmented
            and their terms and conditions modified so that the Member is
            assured of equivalent pension benefits in respect of that period

      (C)   Where the exercise by a Member of an option as to the form of his
            benefits would have the effect of his ceasing to be assured of
            equivalent pension benefits he may not exercise the option in
            relation to the whole of the benefits but with the consent of the
            Trustees may exercise it in relation to such part that he does not
            cease to be so assured

      (D)   Where a Member's non-participating service comes to an end before
            the Normal Retiring Date otherwise than by his death and without his
            becoming entitled to an immediate pension

            (1)   the Trustees shall set aside out of the Member's contributions
                  a sum calculated at the rate of 19p in the case of a male and
                  19p in the case of a female for each week of the period of
                  non-participating service that has come to an end provided
                  that

<PAGE>

                                                                        Page 134

                  (a)   such rates may be changed by notice in writing to
                        Members as regards non-participating service after the
                        date of such notice, and

                  (b)   the sum set aside as aforesaid shall not exceed a sum
                        equal to the maximum sum in respect of which a right of
                        recovery may be exercised under the National Insurance
                        Act

            (2)   subject to paragraph (D)(4) the Member shall be entitled to a
                  deferred pension of the amount appropriate to the said sum or
                  of such greater amount as may be required by paragraph (B);
                  where by virtue of paragraph (D)(4) the Member is not entitled
                  to a deferred pension the Trustees shall subject to the
                  exercise of a right of recovery under the National Insurance
                  Act pay the said sum to the Member

            (3)   account shall he taken of the said sum or the said deferred
                  pension in determining the amount of the benefit to which the
                  Member is or becomes entitled under the Plan

            (4)   a Member shall not be entitled to a benefit in the form of a
                  deferred pension if the amount thereof would be less than
                  (pound)6

      (E)   No alteration or modification of the provisions of the Plan and no
            deduction of any amounts owing by a Member under the Plan from
            benefits under the Plan shall be made which would have the effect of
            a Member's ceasing to be assured for equivalent pension benefits.

<PAGE>

                                                                        Page 135

SECTION IX - ALTERATION TO PLAN

POWER OF ALTERATION

58.   (A)   Subject as hereinafter provided the Trustees may from time to
            time and at any time with the consent of the Principal Company by
            any deed or deeds executed by the Trustees and the Principal Company
            or by any writing effected under hand by the Trustees and the
            Principal Company alter, modify or add to the provisions of the Plan
            and any of the trusts powers and provisions of the Trust Deed by
            which the Plan was established or any other deed or instruments in
            writing supplemental thereto

      Provided that no such alteration modification or addition as aforesaid
      shall be made which would have the effect of

            (1)   extending the trust period of the Plan beyond the Perpetuity
                  Period or

            (2)   varying or affecting adversely any benefits (whether immediate
                  or prospective but not including any Death Benefits as defined
                  below) applicable to Pensionable Service completed before the
                  alteration, modification or addition (upon the basis that the
                  Member's current Pensionable Salary will remain unchanged
                  until the Normal Retiring Date) without the consent in writing
                  of any Member affected thereby.

      For the purposes of this Sub-rule "Death Benefits" means any benefit
      provided under the Plan on the death of a Member in Service on or before
      Normal Retiring Date.

      (B)   Notice in writing of the essential particulars of any such
            alteration modification or addition as aforesaid shall before it
            takes effect be given to every Member who will be affected thereby
            Provided that any notice exhibited at the principal office of any
            Participating Employer shall be deemed duly given to a Member
            employed by it.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]