Document:

<PAGE>
[PRUDENTIAL LOGO]                                                   Exhibit 4(a)

 Pruco Life Insurance Company of New Jersey,       STRATEGIC PARTNERS SELECT(SM)
a Prudential company                                VARIABLE ANNUITY APPLICATION
                                                       Flexible Payment Variable
                                                                Deferred Annuity
--------------------------------------------------------------------------------

[?]              On these pages, I, you, and your refer to the contract owner.
                 We, us, and our refer to Pruco Life Insurance Company of New
                 Jersey, a Prudential company.

--------------------------------------------------------------------------------
[1] CONTRACT     Contract number (if any) 123456789
    OWNER
    INFORMATION  [X] Individual [ ] Corporation [ ] UGMA/UTMA [ ] Other

                 TRUST: [ ] Grantor [ ] Revocable [ ] Irrevocable

                 TRUST DATE (mo., day, year)
                                             -- -- ----
                 Name of owner (first, middle initial, last name)
                 John Doe
                 ---------------------------------------------------------------
                 Street                                          Apt.
                 123 Main Street
                 ---------------------------------------------   ---------------

                 City                        State             ZIP code
                 ANYTOWN                     NJ                07101-0000
                 -------------------------   ---               -----------------

                 Social Security number/TIN
                 123456789
                 ------------------------------

                 Date of birth (mo., day, year)
                 04251948
                 ------------------------------

                 Telephone number
                 888 555-5555
                 ------------------------------

                 [ ] Female   [x] U.S. citizen

                 [X] Male     [ ] Resident alien

                 [ ] I am not a U.S. citizen or resident alien. I am a citizen
                     of:

                     -----------------------------------------------------------

                 If a corporation or trust is indicated above, please check the
                 following as it applies.

                 [ ] Tax-exempt entity under IRS Code 501

                 [ ] Trust acting as agent for an individual under IRS
                     Code 72(u)
--------------------------------------------------------------------------------
[2] JOINT        Name of joint owner (first, middle initial, last name)
    OWNER        Mary Doe
    INFORMATION  ---------------------------------------------------------------
    (if any)
    Do not       Street (Leave address blank if same as owner.)
    complete if
    you are      ---------------------------------------------------------------
    opening
    an IRA.      City                        State             ZIP code

                 -------------------------   ---               -----------------

                 Social Security number/TIN
                 987654321
                 ------------------------------

                 Date of birth (mo., day, year)
                 05141950
                 ------------------------------

                 Telephone number
                 888 555-5555
                 ------------------------------

                 [X] Female   [X] U.S. citizen

                 [ ] Male     [ ] Resident alien

                 [ ] I am not a U.S. citizen or resident alien. I am a citizen
                     of:

                     -----------------------------------------------------------
--------------------------------------------------------------------------------
[3] ANNUITANT    This section must be completed only if the annuitant is not the
    INFORMATION  owner or if the owner is a trust or a corporation.
    (if
    different    Name of annuitant (first, middle initial, last name)
    than the
    owner)       ---------------------------------------------------------------

                 Street (Leave address blank if same as owner.)  Apt.

                 ---------------------------------------------   ---------------

                 City                        State             ZIP code

                 -------------------------   ---               -----------------

                 Social Security number/TIN

                 ------------------------------

                 Date of birth (mo., day, year)

                 ------------------------------

                 Telephone number

                 ------------------------------

                 [ ] Female   [ ] U.S. citizen

                 [ ] Male     [ ] Resident alien

                 [ ] I am not a U.S. citizen or resident alien. I am a citizen
                     of:

                     -----------------------------------------------------------
--------------------------------------------------------------------------------
PRUCO CORPORATE OFFICE: Pruco Life Insurance Company of New Jersey, Newark,
                        NJ 07102

[ORD 99669 NEW YORK]              Page 1 of 6                         Ed. 5/2001

<PAGE>
--------------------------------------------------------------------------------
|1| CO-ANNUITANT   Name of co-annuitant (first, middle initial, last name)
    INFORMATION
(if any)
Do not       |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
complete if  Social Security number/TIN  Date of birth (mo., day, year)
you are      |_|_|_|_|_|_|_|_|_|         |_|_| |_|_| |_|_|_|_|
opening      Telephone number
an IRA.      |_|_|_| |_|_|_|-|_|_|_|_|
             [ ] Female [ ] U.S. citizen
             [ ] Male   [ ] Resident alien
             [ ] I am not a U.S. citizen or resident alien. I am a citizen of
                 |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|

--------------------------------------------------------------------------------
|2| BENEFICIARY    [X] PRIMARY CLASS
    INFORMATION    Name of beneficiary (first, middle initial, last name)
(Please add        If trust, include name of trust and trustee's name.
additional   |M|A|R|Y|_|D|O|E|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
benefi-      TRUST: [ ] Revocable [ ]Irrevocable
ciaries in   Trust date (mo., day, year) |_|_| |_|_| |_|_|_|_|
section 15.)
             Beneficiary's relationship to annuitant
             |S|P|O|U|S|E|_|_|_|_|_|_|_|_|_|

             CHECK ONLY ONE: [ ] Primary class  [ ] Secondary class

             Name of beneficiary (first, middle initial, last name)
             If trust, include name of trust and trustee's name.
             |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|

             TRUST: [ ] Revocable  [ ] Irrevocable
             Trust date (mo., day, year) |_|_| |_|_| |_|_|_|_|

             Beneficiary's relationship to annuitant
             |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|

--------------------------------------------------------------------------------
|3| TYPE OF  PLAN TYPE. Check only one:
    PLAN AND
    SOURCE   [X] Non-qualified     [ ] Traditional IRA
    OF       -------------------------------------------------------------------
    FUNDS
    (minimum SOURCE OF FUNDS. Check all that apply:
    of
    $10,000) [X] Total amount of the check(s) included with this
                 application. (Make checks payable to Prudential.)
                 $|_|_|, |_|1|0|, |0|0|0|.|0|0|

             [ ] IRA Rollover
                 $|_|_|, |_|_|_|, |_|_|_|,  _|_|_|

             If Traditional IRA, new contribution(s) for the current and/or
             previous year, complete the following:
             $|_|_|, |_|_|_|.|_|_| Year |_|_|_|_|

             $|_|_|, |_|_|_|.|_|_| Year |_|_|_|_|

             [ ] 1035 Exchange (non-qualified only), estimated amount:
                 $|_|_|, |_|_|_|,|_|_|_|.|_|_|

             [ ] IRA Transfer (qualified), estimated amount:
                 $|_|_|, |_|_|_|,|_|_|_|.|_|_|

             [ ] Direct Rollover (qualified), estimated amount:
                 $|_|_|, |_|_|_|,|_|_|_|.|_|_|

--------------------------------------------------------------------------------
[ORD 99669 NEW YORK]              Page 2 of 6                         Ed. 5/2001

<PAGE>
--------------------------------------------------------------------------------
/7/ PURCHASE        Please write in the percentage of your payment that you want
    PAYMENT         to allocate to the following options. The total must equal
    ALLOCATION(S)   100 percent. IF CHANGES ARE MADE TO THE ALLOCATIONS LISTED
                    BELOW, THE APPLICANT MUST INITIAL THE CHANGES.

<Table>
<Caption>
                                                  OPTION                                                                OPTION
 INTEREST RATE OPTIONS                            CODES       %      VARIABLE INVESTMENT OPTIONS (continued)            CODES    %
------------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>       <C>      <C>                                                <C>    <C>
[1 Year Fixed-Rate Option                         1YRFXD             SP Davis Value Portfolio                           VALUE
------------------------------------------------------------------------------------------------------------------------------------
 7 Year Market Value Adjustment Option            7YRMVA             SP Deutsche International Equity Portfolio         DEUEQ
------------------------------------------------------------------------------------------------------------------------------------
 VARIABLE INVESTMENT OPTIONS                                         SP Growth Asset Allocation Portfolio               GRWAL
------------------------------------------------------------------------------------------------------------------------------------
 Prudential Global Portfolio                      GLEQ      50       SP INVESCO Small Company Growth Portfolio          VIFSG
------------------------------------------------------------------------------------------------------------------------------------
 Prudential Jennison Portfolio                    GROWTH    50       SP Jennison International Growth Portfolio         JENIN
------------------------------------------------------------------------------------------------------------------------------------
 Prudential Money Market Portfolio                MMKT               SP Large Cap Value Portfolio                       LRCAP
------------------------------------------------------------------------------------------------------------------------------------
 Prudential Stock Index Portfolio                 STIX               SP MFS Capital Opportunities Portfolio             MFSCO
------------------------------------------------------------------------------------------------------------------------------------
 SP Aggressive Growth Asset Allocation Portfolio  AGGGW              SP MFS Mid Cap Growth Portfolio                    MFSMC
------------------------------------------------------------------------------------------------------------------------------------
 SP AIM Aggressive Growth Portfolio               AIMAG              SP PIMCO High Yield Portfolio                      HIHLD
------------------------------------------------------------------------------------------------------------------------------------
 SP AIM Growth and Income Portfolio               AIMGI              SP PIMCO Total Return Portfolio                    RETRN
------------------------------------------------------------------------------------------------------------------------------------
 SP Alliance Large Cap Growth Portfolio           LARCP              SP Prudential U.S. Emerging Growth Portfolio       EMRGW
------------------------------------------------------------------------------------------------------------------------------------
 SP Alliance Technology Portfolio                 ALLTC              SP Small/Mid Cap Value Portfolio                   SMDVL
------------------------------------------------------------------------------------------------------------------------------------
 SP Balanced Asset Allocation Portfolio           BALAN              SP Strategic Partners Focus Growth Portfolio       STRPR
------------------------------------------------------------------------------------------------------------------------------------
 SP Conservative Asset Allocation Portfolio       CONSB              Janus Aspen Series Growth Portfolio-Service Shares JANSR      ]
------------------------------------------------------------------------------------------------------------------------------------
                                                                     TOTAL                                                     100%
------------------------------------------------------------------------------------------------------------------------------------
</Table>

--------------------------------------------------------------------------------
/8/ DOLLAR COST / / DOLLAR COST AVERAGING: I authorize Prudential to
    AVERAGING       automatically transfer funds as indicated below:
    PROGRAM
                    TRANSFER FROM: (You cannot transfer from the 7 Year Market
                    Value Adjustment Option.)
                    Option Code:        $  ,   ,   .   or    %

                    TRANSFER FREQUENCY: / / Annually / / Semiannually
                                        / / Quarterly / / Monthly

                    TRANSFER TO: (You cannot transfer to the Interest Rate
                                  Options.) The total of the two columns must
                                  equal 100 percent.

                    OPTION CODE    PERCENT      OPTION CODE    PERCENT

                                       %                           %
                                       %                           %
                                       %                           %

I understand that the transfer will continue until: (1) I terminate the
program; (2) the funds in the account from which money is being transferred are
exhausted; or (3) the funds in the account fall below the required minimum. I
also understand that the Dollar Cost Averaging (DCA) programs are described in
and subject to the rules and restrictions contained in the prospectus.

--------------------------------------------------------------------------------
--------------------                   Page 3 of 6                    ed. 5/2001
 ORD 99669 New York
--------------------

<PAGE>
________________________________________________________________________________

9   AUTO-              [ ] AUTO-REBALANCING: I want to maintain my allocation
    REBALANCING            percentages. Please have my portfolio mix
                           automatically adjusted as allocated in section 7
                           under my variable investment options.

                           Adjust my portfolio:  [ ] Annually   [ ] Semiannually
                                                 [ ] Quarterly  [ ] Monthly

                           Please specify the start date if different than the
                           contract date:    ---------
                                             month day year
________________________________________________________________________________
10  AUTOMATED          [ ] AUTOMATED WITHDRAWAL: I would like to elect automatic
    WITHDRAWALS            withdrawals from my annuity contract.

                           Automated withdrawals can be made monthly, quarterly,
                           semiannually, or annually. The amount of each
                           withdrawal must be at least $100. You must complete
                           the Request for Partial or Automated Withdrawal form
                           (ORD 78276) in order to specify start date,
                           frequency, and amount of withdrawals.

                           NOTE: AUTOMATIC WITHDRAWALS CANNOT BE USED TO
                           CONTINUE THE CONTRACT BEYOND THE MATURITY DATE. ON
                           THE MATURITY DATE THE CONTRACT MUST ANNUITIZE.
________________________________________________________________________________
11  AGGREGATION        [ ] I have purchased another non-qualified annuity from
    (non-qualified         Prudential or an affiliated company this calendar
    annuities only)        year.
                           Contract number -----------------
________________________________________________________________________________
12  REPLACEMENT        THIS SECTION MUST BE COMPLETED.
    (Please enter
    additional         Will the proposed annuity contract replace any existing
    comments in        insurance policy(ies) or annuity contract(s)?
    section 15.)       [ ] Yes   [X] No

                       If "Yes," provide the following information for each
                       policy or contract and attach all applicable Prudential
                       disclosure and state replacement forms.

                       Company name --------------------------------------------

                       Policy or contract number   Year of issue (mo, day, year)
                       -------------------------   -----------------------------

                       Name of plan (if applicable)
                       ----------------------------

                       THIS QUESTION MUST BE COMPLETED BY THE REPRESENTATIVE.

                       Do you have, from any source, facts that any person
                       named as the owner or joint owner above is replacing or
                       changing any current insurance or annuity in any
                       company?
                       [ ] Yes   [X] No
________________________________________________________________________________
13  SIGNATURE(S)       If applying for an IRA, I acknowledge receiving an IRA
                       disclosure statement and understand that I will be given
                       a financial disclosure statement with the contract. I
                       understand that tax deferral is provided by the IRA, and
                       acknowledge that I am purchasing this contract for its
                       features other than tax deferral, including the lifetime
                       income payout option, the Death Benefit protection, the
                       ability to transfer among investment options without
                       sales or withdrawal charges, and other features as
                       described in the prospectus.

                       No representative can make or change a contract or waive
                       any of the rights.

                       I believe that this contract meets my needs and financial
                       objectives. Furthermore, I (1) understand that any amount
                       of purchase payments allocated to a variable investment
                       option will reflect the investment experience of that
                       option and, therefore, annuity payments and surrender
                       values may vary and are not guaranteed as to a fixed
                       dollar amount, and (2) acknowledge receipt of the current
                       prospectus for this contract and the variable investment
                       options.
                                                                     (continued)
________________________________________________________________________________

ORD 99669 New York               Page 4 of 6                          Ed. 5/2001
<PAGE>
SIGNATURE(S)  [ ] If this contract has a joint owner, please check this box to
(continued)       authorize Prudential to act on the instruction(s) of either
                  the owner or joint owner with regard to transactions under
                  the contract.

              [ ] If this application is being signed at the time the contract
                   is delivered, I acknowledge receipt of the contract.

              [ ] Check here to request a Statement of Additional Information.

              MINIMUM DISTRIBUTION UNDER AN IRA: IF YOU HAVE NOT MET THE
              REQUIRED MINIMUM DISTRIBUTION FOR THE YEAR IN WHICH THE FUNDS ARE
              PAID TO PRUDENTIAL:

              I understand it is my responsibility to remove the minimum
              distribution from the purchase payment prior to sending money to
              Prudential with this application. Unless we are notified
              otherwise, Prudential will assume that the owner is satisfied with
              the required minimum distributions from other IRA funds.

              By signing this form, the trustee(s)/officer(s) hereby represents
              that the trustee(s)/officer(s) possess(es) the authority, on
              behalf of the non-natural person, to purchase the annuity contract
              and to exercise all rights of ownership and control over the
              contract, including the right to make purchase payments to the
              contract.

              I understand that any amount of purchase payments allocated to the
              MVA option may increase or decrease due to such adjustment prior
              to the maturity of the interest cell.

              OWNER'S TAX CERTIFICATION

              ------------------------------------------------------------------
              Under penalty of perjury, I certify that the taxpayer
              identification number (TIN) I have listed on this form is my
              correct taxpayer identification number, I HAVE/HAVE NOT (circle
              one) been notified by the Internal Revenue Service that I am
              subject to backup withholding due to underreporting of interest or
              dividends.
              ------------------------------------------------------------------

                   THE INTERNAL REVENUE SERVICE DOES NOT REQUIRE YOUR
                       CONSENT TO ANY PROVISION OF THIS DOCUMENT
                         OTHER THAN THE CERTIFICATIONS REQUIRED
                               TO AVOID BACKUP WITHHOLDING.

              ------------------------------------------------------------------

              We must have both the owner's and annuitant's signatures even if
              this contract is owned by a trust, corporation, or other entity.
              If the annuitant is a minor, please provide the signature of a
              legal guardian or custodian.

              I hereby certify that all the information contained in this
              application is complete and true to the best of my knowledge.

              X /s/ John Doe                                   05    04   2001
                ---------------------------------------        --    --   ----
                Contract owner's signature and date          month  day   year

              X /s/ Mary Doe                                   05    04   2001
                ---------------------------------------        --    --   ----
                Joint owner's signature (if applicable)      month  day   year
                   and date

              X /s/ John Doe                                   05    04   2001
                ---------------------------------------        --    --   ----
                Annuitant's signature (if applicable)        month  day   year
                    and date

              X
                ---------------------------------------        --    --   ----
                Co-annuitant's signature (if applicable)     month  day   year
                    and date

                /s/ Anytown, N.J.
                ---------------------------------------
                Signed at (city, state)

--------------------------------------------------------------------------------

ORD 99669 New York               Page 5 of 6                          Ed. 5/2001

<PAGE>
================================================================================
14 REPRESEN-    Commission Option (For Retail Distribution only. Choose only
   TATIVE'S     one.):
   SIGNATURE(S)
                1. [ ] No Trail   2. [ ] Mid Trail   3. [ ] High Trail

                Note: If an option is not selected, the default option will be
                Option 3.

                This application is submitted in the belief that the purchase of
                this contract is appropriate for the applicant based on the
                information provided and as reviewed with the applicant.
                Reasonable inquiry has been made of the owner concerning the
                owner's overall financial situation, needs, and investment
                objectives.

                The representative hereby certifies that all information
                contained in this application is true to the best of his or her
                knowledge.

                  /s/ Richard Roe                                 123456789
                  -------------------------------------------   ----------------
                  Representative's name (Please print)          Rep's contract/
                                                                    FA number

                X /s/ Richard Roe                                 05 04 2001
                  -------------------------------------------   ----------------
                  Representative's signature and date           month day year

                  -------------------------------------------   ----------------
                  Second representative's name (Please print)   Rep's contract/
                                                                    FA number

                X
                  -------------------------------------------   ---------------
                  Second representative's signature and date    month day year

                  /s/ Sunnytown - SNTN                           888 555-5555
                  -------------------------------------------   ----------------
                  Branch/field office name and code             Representative's
                                                                telephone number

================================================================================
15 ADDITIONAL
   REMARKS
              ------------------------------------------------------------------

              ------------------------------------------------------------------

              ------------------------------------------------------------------

              ------------------------------------------------------------------

              ------------------------------------------------------------------

              ------------------------------------------------------------------

              ------------------------------------------------------------------

              ------------------------------------------------------------------

================================================================================
              STANDARD    PRUDENTIAL ANNUITY SERVICE CENTER
              MAIL TO:    PO BOX 7590
                          PHILADELPHIA, PA 19101

              OVERNIGHT   PRUDENTIAL ANNUITY SERVICE CENTER
              MAIL TO:    2101 WELSH ROAD
                          DRESHER, PA 19025

              If you have any questions, please call the Prudential Annuity
              Service Center at (888) 778-2888, Monday through Friday between
              8:00 a.m. and 8:00 p.m. Eastern time.

================================================================================
ORD 99669 New York                  Page 6 of 6                       Ed. 5/2001
<PAGE>
[PRUDENTIAL LOGO]  PRUDENTIAL                      STRATEGIC PARTNERS SELECT(SM)
                   Pruco Life Insurance            VARIABLE ANNUITY APPLICATION
                   Company of New Jersey,          Flexible Payment Variable
                   a Prudential company            Deferred Annuity
--------------------------------------------------------------------------------
                   On these pages, I, you, and your refer to the contract owner.
                   We, us, and our refer to Pruco Life Insurance Company of New
                   Jersey, a Prudential company.
--------------------------------------------------------------------------------
1  CONTRACT        Contract number (if any)  123456789
   OWNER           [X] Individual   [ ] Corporation   [ ] UGMA/UTMA  [ ] Other
   INFORMATION     TRUST: [ ] Grantor   [ ] Revocable  [ ] Irrevocable
                   TRUST DATE (mo., day, year)
                                               --------------------

                   Name of owner (first, middle initial, last name)
                   JOHN DOE
                   -------------------------------------------------------------

                   Street                                  Apt.
                   123 MAIN STREET
                   -------------------------------------------------------------

                   City          State     ZIP code
                   ANYTOWN       NY        07101-0000
                   ------------ ---------  --------------

                   Social Security number/TIN   Date of birth (mo., day, year)
                   123456789                    04 25 1948
                   --------------------------   --------------------------------

                   Telephone number
                   888 555-5555
                   --------------------------

                   [ ] Female    [X] U.S. citizen     [ ] I am not a U.S.
                   [X] Male      [ ] Resident alien       citizen or resident
                                                          alien. I am a citizen
                                                          of

                                                          ----------------------

                   If a corporation or trust is indicated above, please check
                   the following as it applies.
                   [ ] Tax-exempt entity under IRS Code 501
                   [ ] Trust acting as agent for an individual under IRS
                       Code 72(u)

--------------------------------------------------------------------------------
2  JOINT           Name of joint owner (first, middle initial, last name)
   OWNER           MARY DOE
   INFORMATION     -------------------------------------------------------------
   (if any)
   Do not          Street (Leave address blank if same as owner.)       Apt.
   complete if
   you are         -------------------------------------------------------------
   opening
   an IRA.         City         State      ZIP code

                   ------------ ---------  --------------

                   Social Security number/TIN   Date of birth (mo., day, year)
                   987654321                    05 17 1950
                   --------------------------   --------------------------------

                   Telephone number
                   888 555-5555
                   --------------------------

                   [X] Female    [X] U.S. citizen     [ ] I am not a U.S.
                   [ ] Male      [ ] Resident alien       citizen or resident
                                                          alien. I am a citizen
                                                          of

                                                          ----------------------

--------------------------------------------------------------------------------
3  ANNUITANT       This section must be completed only if the annuitant is not
   INFORMATION     the owner or if the owner is a trust or a corporation.
   (if different
   than the        Name of annuitant (first, middle initial, last name)
   owner)
                   -------------------------------------------------------------

                   Street (Leave address blank if same as owner.)         Apt.

                   -------------------------------------------------------------
                   City         State      ZIP code

                   ------------ ---------  --------------

                   Social Security number/TIN   Date of birth (mo., day, year)

                   --------------------------   --------------------------------

                   Telephone number

                   --------------------------

                   [ ] Female    [ ] U.S. citizen     [ ] I am not a U.S.
                   [ ] Male      [ ] Resident alien       citizen or resident
                                                          alien. I am a citizen
                                                          of

                                                          ----------------------

--------------------------------------------------------------------------------
Pruco Corporate Office: Pruco Life Insurance Company of New Jersey,
Newark NJ 07102

ORD 99669 New York - Third Party        Page 1 of 6      Ed. 5/2001  Third Party
<PAGE>
--------------------------------------------------------------------------------
/4/ CO-ANNUITANT    Name of co-annuitant (first, middle initial, last name)
    INFORMATION
    (if any)        ------------------------------------------------------------
    Do not
    complete if     Social Security number/TIN  Date of birth (mo., day, year)
    you are
    opening an      --------------------------  -- -- ----
    IRA.             Telephone Number
                     --- --------

                    / / Female     / / U.S. citizen
                    / / Male       / / Resident alien
                    / / I am not a U.S. citizen or resident alien.
                        I am a citizen of
                        --------------------------------------------------------
--------------------------------------------------------------------------------
/5/ BENEFICIARY     /X/ PRIMARY CLASS
    INFORMATION     Name of beneficiary (first, middle initial, last name).
    (Please add     If trust, include name of trust and trustee's name.
    additional      Mary Doe
    beneficiaries   ------------------------------------------------------------
    in section 15.) TRUST: / / Revocable / / Irrevocable
                           Trust date (mo., day, year)
                                                       -- -- ----
                    Beneficiary's relationship to annuitant SPOUSE
                                                            --------------------
                    CHECK ONLY ONE: / / Primary class / / Secondary class

                    Name of beneficiary (first, middle initial, last name).
                    If trust, include name of trust and trustee's name.

                    ------------------------------------------------------------

                    TRUST: / / Revocable / / Irrevocable
                           Trust date (mo., day, year)
                                                       -- -- ----
                    Beneficiary's relationship to annuitant
                                                            --------------------
--------------------------------------------------------------------------------
/6/ TYPE OF PLAN    PLAN TYPE. Check only one:
    AND SOURCE OF   /X/ Non-qualified / / Traditional IRA
    FUNDS
    (minimum of     ------------------------------------------------------------
    $10,000)
                    SOURCE OF FUNDS. Check all that apply:

                    /X/ Total amount of the check(s) included with this
                    application. (Make checks payable to
                    Prudential.)                                  $    10,000.00
                                                                  -- ,--- --- --
                    / / IRA Rollover                              $  ,   ,   .
                                                                   -- --- --- --
                    If Traditional IRA, new contribution(s) for the current
                    and/or previous year, complete the following:

                    $ ,   .   Year           $ ,   .   Year
                     - --- --      ----       - --- --      ----

                    / / 1035 Exchange (non-qualified only),
                        estimated amount:                          $  ,   ,   .
                                                                   -- --- --- --
                    / / IRA Transfer (qualified),
                        estimated amount:                          $  ,   ,   .
                                                                   -- --- --- --
                    / / Direct Rollover (qualified),
                        estimated amount:                          $  ,   ,   .
                                                                   -- --- --- --

--------------------------------------------------------------------------------
----------------------------------   Page 2 of 6          Ed. 5/2001 Third Party
 ORD 99669 New York - Third Party
----------------------------------

<PAGE>
________________________________________________________________________________
7   PURCHASE          Please write in the percentage of your payment that you
    PAYMENT           want to allocate to the following options. The total must
    ALLOCATION(S)     equal 100 percent. IF CHANGES ARE MADE TO THE ALLOCATIONS
                      LISTED BELOW, THE APPLICANT MUST INITIAL THE CHANGES.

<Table>
<Caption>
                                              OPTION                                                                 OPTION
INTEREST-RATE OPTIONS                         CODES        %     VARIABLE INVESTMENT OPTIONS (continued)              CODES     %
---------------------                         -----       ---    ---------------------------------------             -------   ---
<S>                                           <C>         <C>    <C>                                                    <C>    <C>
1 Year Fixed-Rate Option                      1YRFXD             SP Davis Value Portfolio                               VALUE

7 Year Market Value Adjustment Option         7YRMVA             SP Deutsche International Equity Portfolio             DEUEQ

VARIABLE INVESTMENT OPTIONS                                      SP Growth Asset Allocation Portfolio                   GRWAL

Prudential Global Portfolio                   GLEQ        50     SP INVESCO Small Company Growth Portfolio              VIFSG

Prudential Jennison Portfolio                 GROWTH      50     SP Jennison International Growth Portfolio             JENIN

Prudential Money Market Portfolio             MMKT               SP Large Cap Value Portfolio                           LRCAP

Prudential Stock Index Portfolio              STIX               SP MFS Capital Opportunities Portfolio                 MFSCO

SP Aggressive Growth Asset Allocation
     Portfolio                                AGGGW              SP MFS Mid Cap Growth Portfolio                        MFSMC

SP AIM Aggressive Growth Portfolio            AIMAG              SP PIMCO High Yield Portfolio                          HIHLD

SP AIM Growth and Income Portfolio            AIMGI              SP PIMCO Total Return Portfolio                        RETRN

SP Alliance Large Cap Growth Portfolio        LARCP              SP Prudential U.S. Emerging Growth Portfolio           EMRGW

SP Alliance Technology Portfolio              ALLTC              SP Small/Mid Cap Value Portfolio                       SMDVL

SP Balanced Asset Allocation Portfolio        BALAN              SP Strategic Partners Focus Growth Portfolio           STRPR

SP Conservative Asset Allocation Portfolio    CONSB              Janus Aspen Series Growth Portfolio-Service Shares     JANSR

                                                                 TOTAL                                                          100%
</TABLE>

________________________________________________________________________________
8   DOLLAR COST       [ ] DOLLAR COST AVERAGING: I authorize Prudential to
    AVERAGING             automatically transfer funds as indicated below.
    PROGRAM               TRANSFER FROM: (You cannot transfer from the 7 Year
                          Market Value Adjustment Option.)

                        Option code: ------  $--,---,---.-- or ----%
                          TRANSFER FREQUENCY:  [ ] Annually   [ ] Semiannually
                                               [ ] Quarterly  [ ] Monthly
                          TRANSFER TO: (You cannot transfer to the Interest Rate
                          Options.)
                          The total of the two columns must equal 100 percent.
<Table>
<Caption>

                          Option code        Percent        Option code         Percent
                          -----------        -------        -----------         -------
<S>                         <C>                <C>            <C>                 <C>
                            ------             ---%           ------              ---%
                            ------             ---%           ------              ---%
                            ------             ---%           ------              ---%
</TABLE>

                      I understand that the transfer will continue until: (1) I
                      terminate the program; (2) the funds in the account from
                      which money is being transferred are exhausted; or (3) the
                      funds in the account fall below the required minimum. I
                      also understand that the Dollar Cost Averaging (DCA)
                      programs are described in and subject to the rules and
                      restrictions contained in the prospectus.
________________________________________________________________________________
ORD 99669 NEW YORK - THIRD PARTY       Page 3 of 6        Ed. 5/2001 Third Party
<PAGE>
________________________________________________________________________________
9 AUTO-      / / AUTO-REBALANCING: I want to maintain my allocation percentages.
  REBALANCING    Please have my portfolio mix automatically adjusted as
                 allocated in section 7 under my variable investment options.

Adjust my portfolio:  / / Annually  / / Semiannually  / / Quarterly  / / Monthly

Please specify the start date if different than the contract date:
                                                                     --  -- ----
                                                                  month day year
________________________________________________________________________________
10 AUTOMATED    / / AUTOMATED WITHDRAWAL: I would like to elect automatic
   WITHDRAWALS      withdrawals from my annuity contract.

                    Automated withdrawals can be made monthly, quarterly,
                    semiannually, or annually. The amount of each withdrawal
                    must be at least $100. You must complete the Request for
                    Partial or Automated Withdrawal form (P-ORD 78276) in order
                    to specify start date, frequency, and amount of withdrawals.

                    NOTE: AUTOMATIC WITHDRAWALS CANNOT BE USED TO CONTINUE THE
                    CONTRACT BEYOND THE MATURITY DATE. ON THE MATURITY DATE THE
                    CONTRACT MUST ANNUITIZE.
________________________________________________________________________________
11 AGGREGATION      / / I have purchased another non-qualified annuity from
   (non-qualified       Prudential or an affiliated company this calendar year.
   annuities only)

                    Contract number
                                    ---------
________________________________________________________________________________
12 REPLACEMENT      THIS SECTION MUST BE COMPLETED.
   (Please enter
   additional       Will the proposed annuity contract replace any existing
   comments in      insurance policy(ies) or annuity contract(s)?
   section 15.)
                    / / Yes    /X/ No

                    If "Yes," provide the following information for each policy
                    or contract and attach all applicable Prudential disclosure
                    and state replacement forms.

                    Company name

                    -----------------------------------------------------------

Policy or contract number     Year of issue         Name of plan (if applicable)
                              (mo., day, year)

----------------------        -- -- ----            -------------------------

                    THIS QUESTION MUST BE COMPLETED BY THE FINANCIAL
                    PROFESSIONAL.

                    Do you have, from any source, facts that any person named as
                    the owner or joint owner above is replacing or changing any
                    current insurance or annuity in any company?

                    / / Yes    /X/ No
________________________________________________________________________________
13 SIGNATURES       If applying for an IRA, I acknowledge receiving an IRA
                    disclosure statement and understand that I will be given a
                    financial disclosure statement with the contract. I
                    understand that tax deferral is provided by the IRA, and
                    acknowledge that I am purchasing this contract for its
                    features other than tax deferral, including the lifetime
                    income payout option, the Death Benefit protection, the
                    ability to transfer among investment options without sales
                    or withdrawal charges, and other features as described in
                    the prospectus.

                    No representative can make or change a contract or waive any
                    of the rights.

                    I believe that this contract meets my needs and financial
                    objectives. Furthermore, I (1) understand that any amount of
                    purchase payments allocated to a variable investment option
                    will reflect the investment experience of that option and,
                    therefore, annuity payments and surrender values may vary
                    and are not guaranteed as to a fixed dollar amount, and (2)
                    acknowledge receipt of the current prospectus for this
                    contract and the variable investment options.

                                                                     (continued)
________________________________________________________________________________
ORD 99669 New York - Third Party        Page 4 of 6       Ed. 5/2001 Third Party
<PAGE>
13

SIGNATURE(S)  [ ] If this contract has a joint owner, please check this box to
(continued)       authorize Prudential to act on the instruction(s) of either
                  the owner or joint owner with regard to transactions under
                  the contract.

              [ ] If this application is being signed at the time the contract
                  is delivered, I acknowledge receipt of the contract.

              [ ] Check here to request a Statement of Additional Information.

              MINIMUM DISTRIBUTION UNDER AN IRA: IF YOU HAVE NOT MET THE
              REQUIRED MINIMUM DISTRIBUTION FOR THE YEAR IN WHICH THE FUNDS ARE
              PAID TO PRUDENTIAL:

              I understand it is my responsibility to remove the minimum
              distribution from the purchase payment prior to sending money to
              Prudential with this application. Unless we are notified
              otherwise, Prudential will assume that the owner is satisfied with
              the required minimum distributions from other IRA funds.

              By signing this form, the trustee(s)/officer(s) hereby represents
              that the trustee(s)/officer(s) possess(es) the authority, on
              behalf of the non-natural person, to purchase the annuity contract
              and to exercise all rights of ownership and control over the
              contract, including the right to make purchase payments to the
              contract.

              I understand that any amount of purchase payments allocated to the
              MVA option may increase or decrease due to such adjustment prior
              to the maturity of the interest cell.

              OWNER'S TAX CERTIFICATION

              ------------------------------------------------------------------
              Under penalty of perjury, I certify that the taxpayer
              identification number (TIN) I have listed on this form is my
              correct taxpayer identification number. I HAVE/HAVE NOT (circle
              one) been notified by the Internal Revenue Service that I am
              subject to backup withholding due to underreporting of interest or
              dividends.
              ------------------------------------------------------------------

                   THE INTERNAL REVENUE SERVICE DOES NOT REQUIRE YOUR
                       CONSENT TO ANY PROVISION OF THIS DOCUMENT
                         OTHER THAN THE CERTIFICATIONS REQUIRED
                               TO AVOID BACKUP WITHHOLDING.

              ------------------------------------------------------------------

              We must have both the owner's and annuitant's signatures even if
              this contract is owned by a trust, corporation, or other entity.
              If the annuitant is a minor, please provide the signature of a
              legal guardian or custodian.

              I hereby certify that all the information contained in this
              application is complete and true to the best of my knowledge.

              X /s/ John Doe                                   05    04   2001
                ---------------------------------------        --    --   ----
                Contract owner's signature and date          month  day   year

              X /s/ Mary Doe                                   05    04   2001
                ---------------------------------------        --    --   ----
                Joint owner's signature (if applicable)      month  day   year
                   and date

              X /s/ John Doe                                   05    04   2001
                ---------------------------------------        --    --   ----
                Annuitant's signature (if applicable)        month  day   year
                    and date

              X
                ---------------------------------------        --    --   ----
                Co-annuitant's signature (if applicable)     month  day   year
                    and date

                /s/ Anytown, N.Y.
                ---------------------------------------
                Signed at (city, state)

--------------------------------------------------------------------------------
ORD 99669 New York -- Third Party                         Ed. 5/2001 Third Party
                                 Page 5 of 6

<PAGE>
14 FINANCIAL        Commission Option (Choose only one.):
   PROFESSIONAL'S   1. [ ]No Trail     2. [ ]Mid Trail
   SIGNATURE(S)     3. [ ]High Trail   4. [ ]Levelized

                    Note: If an option is not selected, the default option will
                          be Option 3.

                    This application is submitted in the belief that the
                    purchase of this contract is appropriate for the applicant
                    based on the information provided and as reviewed with the
                    applicant. Reasonable inquiry has been made of the owner
                    concerning the owner's overall financial situation, needs,
                    and investment objectives.

                    The financial professional hereby certifies that all
                    information contained in this application is true to the
                    best of his or her knowledge.

                        RICHARD ROE                      1 2 3 4 5 6 7 8 9
                    -----------------------------------  - - - - - - - - -
                    Financial professional's name        Firm FA contract number
                      (Please print)
                                                         9 8 7 6 5 4 3 2 1
                                                         - - - - - - - - -
                                                         Prudential contract
                                                         number

                    X /s/ Richard Roe                     05     04   2001
                    -----------------------------------  --     --   ----
                    Financial professional's             month  day  year
                      signature and date

                    -----------------------------------  - - - - - - - - -
                    Second financial professional's      Firm FA contract number
                       name(Please print)

                                                         - - - - - - - - -
                                                         Prudential contract
                                                         number

                    X
                    -----------------------------------  --     --   ----
                    Second financial professional's      month  day  year
                      signature and date

                     Sunnytown - SNTN                   8 8 8  5 5 5 - 5 5 5 5
                    ----------------------------------  - - -  - - -   - - - -
                    Branch name and code                Financial professional's
                                                        telephone number

--------------------------------------------------------------------------------

15 ADDITIONAL
   REMARKS
                    -----------------------------------------------------------

                    -----------------------------------------------------------

                    -----------------------------------------------------------

                    -----------------------------------------------------------

                    -----------------------------------------------------------

                    -----------------------------------------------------------

--------------------------------------------------------------------------------

                    STANDARD  PRUDENTIAL ANNUITY SERVICE CENTER
                    MAIL TO:  THIRD PARTY
                              PO BOX 8210
                              PHILADELPHIA, PA 19101

                    OVERNIGHT  PRUDENTIAL ANNUITY SERVICE CENTER
                    MAIL TO:   THIRD PARTY
                               2101 WELSH ROAD
                               DRESHER, PA 19025

                    If you have any questions, please call the Prudential
                    Annuity Service Center at (888) 778-5970 for customers, or
                    (888) 778-5471 for financial professionals, Monday through
                    Friday between 8:00 a.m. and 8:00 p.m. Eastern time.

--------------------------------------------------------------------------------
ORD 99669 NEW YORK - THIRD PARTY                          Ed. 5/2001 THIRD PARTY

                                 Page 6 of 6
<PAGE>
                                                                              NY

                  MEMORANDUM DESCRIBING THE VARIABLE MATERIAL
                CONTAINED IN APPLICATION FORM ORD 99669-NEW YORK
                       AND ORD 99669-NEW YORK-THIRD PARTY

SECTION 7. PURCHASE PAYMENT ALLOCATION
The allocation options have been bracketed to indicate that they are
illustrative, i.e., we may rename, add to, delete from, or substitute other
allocation options for those shown in the application.<PAGE>

                                                                    EXHIBIT 10.1

                                KMART CORPORATION
                          LONG-TERM CASH INCENTIVE PLAN

1. PURPOSES; CONSTRUCTION.

   The purposes of the Kmart Corporation Long-Term Cash Incentive Plan (the
"Plan") are to attract and retain highly-qualified executives by providing
appropriate performance-based long-term incentive awards, to align executive and
stockholder interests by creating a direct link between executive compensation
and company performance, thereby enhancing stockholder return, and to provide
incentives to executives to contribute to the success of the Company.

2. DEFINITIONS.

   As used in this Plan, the following words and phrases shall have the
following meanings:

        (a) "Board" shall mean the Board of Directors of the Company.

        (b) "Bonus" shall mean any incentive bonus award granted pursuant to
this Plan; the payment of any such award shall be contingent upon the attainment
of Performance Goals with respect to a Performance Cycle.

        (c) "Change in Control" shall mean the occurrence of an event described
in Section 6(d) hereof.

        (d) "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time.

        (e) "Committee" shall mean the Compensation and Incentives Committee of
the Board.

        (f) "Company" shall mean Kmart Corporation, a corporation organized
under the laws of the State of Michigan, or any successor corporation.

        (g) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time, and as now or hereafter construed, interpreted and
applied by regulations, rulings and cases.

        (h) "Participant" shall mean an officer of the Company (corporate vice
presidents and higher) or one of its Subsidiaries who is eligible to participate
herein pursuant to Article 3 hereof and for whom a target Bonus is established
with respect to the relevant Performance Cycle.

        (i) "Performance Cycle" shall mean the two year period commencing on the
first day of a Plan Year and ending on the last day of the next Plan Year

        (j) "Performance Goal(s)" shall mean the criteria and objectives which
must be met during a Performance Cycle as a condition of the Participant's
receipt of payment with respect to a Bonus, as described in Article 5 hereof.

        (k) "Plan" shall mean this Kmart Corporation Long-Term Cash Incentive
Plan, as amended from time to time.

        (l) "Plan Year" shall mean the Company's fiscal year.

        (m) "Subsidiary" shall mean any subsidiary of the Company which is
designated by the Board or the Committee to have any one or more of its officers
or employees participate in the Plan.

3. ELIGIBILITY.

   Bonuses may be granted hereunder to such officers of the Company and any of
its Subsidiaries as are designated by the Committee. In determining the officers
to whom Bonuses shall be granted, the Committee shall take into account such
factors as the Committee shall deem relevant in connection with accomplishing
the purposes of the Plan.

                                       1
<PAGE>

4.  NO STOCK SUBJECT TO PLAN.

    No shares of any stock shall be reserved for, or issued under, the Plan.

5.  PERFORMANCE GOALS.

    Performance Goals may be expressed in terms of (i) the Company's return on
equity, assets, capital or investment, (ii) pre-tax or after-tax profit levels
of the Company, the Subsidiaries, subdivisions thereof, or any combination of
the foregoing, (iii) expense reduction levels; (iv) implementation of critical
projects or processes, (v) changes in market price of the stock, (vi) leadership
effectiveness, (vii) customer satisfaction, (viii) inventory, and/or (ix) any
other goals or objectives the Committee shall deem relevant in connection with
accomplishing the purposes of the Plan. To the extent applicable, any such
Performance Goal shall be determined in accordance with generally accepted
accounting principles and reported upon by the Company's independent
accountants. Performance Goals: (a) shall include the target level of
performance at which 100% Bonus payment shall be made and below which no Bonus
payment shall be made, and a maximum level of performance at which 150% Bonus
payment shall be made and above which no additional Bonus shall be paid; and (b)
may include levels of performance at which specified percentages of the target
Bonus between 100% and 150% shall be paid if and to the extent the Participant
exceeded the Performance Goal(s). The Performance Goals established by the
Committee may be (but need not be) different each Performance Cycle and
different goals may be applicable to different Participants.

6. BONUSES.

   (a) In General. For each Performance Cycle, the Committee shall specify the
Performance Goal(s) applicable to each Participant for such Performance Cycle
and the amount of, or the formula for determining, the target Bonus for each
Participant with respect to such Performance Cycle. A Participant's target Bonus
for each Performance Cycle shall be expressed as either a dollar amount or as a
percentage of the salary midpoint for the Participant's salary grade. Unless
otherwise provided by the Committee in its, or except as set forth in Section
6(d) hereof, payment of a Bonus for a particular Performance Cycle shall: (i) be
made only if and to the extent the Performance Goal(s) with respect to such
Performance Cycle are fully attained and only if the Participant is employed by
the Company or a Subsidiary on the last day of the Performance Cycle; and (ii)
be prorated if the Participant was on a leave of absence for a period greater
than 90 days during the Performance Cycle or was not an eligible Participant for
the entire Performance Cycle.

The actual amount of Bonus payable under the Plan shall be 100% of the target
bonus if the Participant achieved the Performance Goal(s), or be between 100%
and 150% of the target bonus if the Participant exceeded the Performance
Goal(s). No Bonus shall be payable if the Performance Goal(s) have not been
fully achieved. The Committee may, in its discretion, reduce or eliminate the
amount payable to any Participant, in each case based upon such factors as the
Committee may deem relevant, but shall not increase the amount payable to any
Covered Employee.

   (b) Time of Payment. Unless otherwise determined by the Committee, or except
as provided in Section 6(d) hereof, all payments in respect of Bonuses granted
under this Article 6 shall be made within a reasonable period after the end of
the Performance Cycle.

   (c) Form of Payment. The Participant's Bonus payable for any Performance
Cycle (less applicable payroll deductions) shall be paid in cash.

   (d) Change in Control. Notwithstanding any other provision of the Plan to
the contrary, (i) if a "Change in Control" of the Company (as defined in this
Section 6(d)) shall occur following a Performance Cycle as to which the
Committee has determined the actual Bonuses to be paid (but such Bonuses have
not yet been paid), such Bonuses shall be paid immediately in cash, (ii) if a
Change in Control shall occur following a Performance Cycle as to which the
Committee has not yet determined the actual Bonuses to be paid, such Bonuses
shall be immediately determined and paid in cash, and (iii) if a Change in
Control shall occur during a Performance Cycle (but the actual Bonuses to be
paid have not yet been determined), such Performance Cycle shall be deemed to
have been completed, the target levels of performance set forth under the
respective Performance Goals shall be deemed to have been attained and a pro
rata portion of the Bonus so determined for each Participant for such partial
Performance Cycle (based on the number of full and partial months which have
elapsed with respect to such Performance Cycle) shall be paid immediately in
cash to each Participant for whom a target Bonus for such Performance Cycle was
established.

    For purposes of this Article 6, the first to occur of any of the following
events shall be deemed to be a Change in Control of the Company:

                                       2
<PAGE>

        (i) the "beneficial ownership" (as defined in Rule 13d-3 under the
Exchange Act) of securities representing more than 33% of the combined voting
power of the Company is acquired by any "person," as defined in sections 13(d)
and 14(d) of the Exchange Act (other than the Company, any trustee or other
fiduciary holding securities under an employee benefit plan of the Company, or
any corporation owned, directly or indirectly, by the stockholders of the
Company in substantially the same proportions as their ownership of stock of the
Company), or

        (ii) the stockholders of the Company approve a definitive agreement to
merge or consolidate the Company with or into another corporation or to sell or
otherwise dispose of all or substantially all of its assets, or adopt a plan of
liquidation, or

        (iii) during any period of three consecutive years, individuals who at
the beginning of such period were members of the Board cease for any reason to
constitute at least a majority thereof (unless the election, or the nomination
for election by the Company's stockholders, of each new director was approved by
a vote of at least a majority of the directors then still in office who were
directors at the beginning of such period or whose election or nomination was
previously so approved).

7. ADMINISTRATION.

   The Plan shall be administered by the Committee. The Committee shall have
the authority in its sole discretion, subject to and not inconsistent with the
express provisions of the Plan, to administer the Plan and to exercise all the
powers and authorities either specifically granted to it under the Plan or
necessary or advisable in the administration of the Plan, including, without
limitation, the authority: to grant Bonuses; to determine the persons to whom
and the time or times at which Bonuses shall be granted; to determine the terms,
conditions, restrictions and performance criteria relating to any Bonus; to make
adjustments in Performance Goals in response to changes in applicable laws,
regulations or accounting principles except as otherwise provided in Section
6(a) hereof; to adjust compensation payable upon attainment of Performance
Goals; to construe and interpret the Plan and any Bonus; to prescribe, amend and
rescind rules and regulations relating to the Plan; and to make all other
determinations deemed necessary or advisable for the administration of the Plan.

The Committee may delegate to one or more of its members or to one or more
agents such administrative duties as it may deem advisable, and the Committee or
any person to whom it has delegated duties as aforesaid may employ one or more
persons to render advice with respect to any responsibility the Committee or
such person may have under the Plan. All decisions, determinations and
interpretations of the Committee shall be final and binding on all persons,
including the Company, a Subsidiary, a Participant (or any person claiming any
rights under the Plan from or through any Participant) and any stockholder.

    No member of the Board or the Committee shall be liable for any action taken
or determination made in good faith with respect to the Plan or any Bonus
granted hereunder.

8. GENERAL PROVISIONS.

   (a) Compliance with Legal Requirements. The Plan and the granting of Bonuses,
and the other obligations of the Company under the Plan shall be subject to all
applicable federal and state laws, rules and regulations, and to such approvals
by any regulatory or governmental agency as may be required.

   (b) No Right To Continued Employment. Nothing in the Plan or in any Bonus
granted pursuant hereto shall confer upon any Participant the right to continue
in the employ of the Company or any of its Subsidiaries or to be entitled to any
remuneration or benefits not set forth in the Plan or to interfere with or limit
in any way the right of the Company or any of its Subsidiaries to terminate such
Participant's employment.

   (c) Withholding Taxes. The Company or Subsidiary employing any Participant
shall deduct from all payments and distributions under the Plan any taxes
required to be withheld by federal, state or local governments.

   (d) Amendment and Discontinuance of the Plan. The Board or the Committee may
at any time and from time to time alter, amend, suspend or discontinue the Plan
in whole or in part. The Committee may also make such amendments as it deems
necessary to comply with applicable laws, rules and regulations. Notwithstanding
the foregoing, no amendment, suspension or discontinuance of the Plan shall
affect adversely any of the rights of any Participant under any Bonus
theretofore granted hereunder without the consent of such Participant.

                                       3
<PAGE>

   (e) Participant Rights. No Participant shall have any claim to be granted any
Bonus under the Plan, and there is no obligation for uniformity of treatment of
Participants.

   (f) Unfunded Status of Bonuses. The Plan is intended to constitute an
"unfunded" plan for incentive compensation. With respect to any payments which
at any time are not yet made to a Participant pursuant to a Bonus, nothing
contained in the Plan or any Bonus shall give any such Participant any rights
that are greater than those of a general creditor of the Company.

   (g) Governing Law. The Plan and the rights of all persons claiming hereunder
shall be construed and determined in accordance with the laws of the State of
Michigan without giving effect to the choice of law principles thereof, except
to the extent that such law is preempted by federal law.

   (h) Effective Date; Approval of Stockholders. The Plan shall take effect upon
its adoption by the Committee.

August 15, 2001.

                                       4

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