Document:

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                                                                     Exhibit 4.4

                              AMENDED AND RESTATED
                    PREFERRED SECURITIES GUARANTEE AGREEMENT

                            Travelers P&C Capital II

                            Dated as of May 10, 2002
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                                TABLE OF CONTENTS

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                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1    Definitions and Interpretation...............................   2

                                   ARTICLE II
                               TRUST INDENTURE ACT

SECTION 2.1    Trust Indenture Act; Application.............................   5
SECTION 2.2    Lists of Holders of Securities...............................   5
SECTION 2.3    Reports by the Preferred Guarantee Trustee...................   5
SECTION 2.4    Periodic Reports to Preferred Guarantee Trustee..............   5
SECTION 2.5    Evidence of Compliance with Conditions Precedent.............   6
SECTION 2.6    Events of Default; Waiver....................................   6
SECTION 2.7    Event of Default; Notice.....................................   6
SECTION 2.8    Conflicting Interests........................................   6

                                   ARTICLE III
                          POWERS, DUTIES AND RIGHTS OF
                           PREFERRED GUARANTEE TRUSTEE

SECTION 3.1    Powers and Duties of the Preferred Guarantee Trustee.........   7
SECTION 3.2    Certain Rights of Preferred Guarantee Trustee................   8
SECTION 3.3    Not Responsible for Recitals or Issuance of Guarantee........  10

                                   ARTICLE IV
                           PREFERRED GUARANTEE TRUSTEE

SECTION 4.1    Preferred Guarantee Trustee; Eligibility.....................  10
SECTION 4.2    Appointment, Removal and Resignation of
                           Preferred Guarantee Trustees.....................  11

                                    ARTICLE V
                                    GUARANTEE

SECTION 5.1    Guarantee....................................................  12
SECTION 5.2    Waiver of Notice and Demand..................................  12
SECTION 5.3    Obligations Not Affected.....................................  13
SECTION 5.4    Rights of Holders............................................  13
SECTION 5.5    Guarantee of Payment.........................................  14
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SECTION 5.6    Subrogation..................................................  14
SECTION 5.7    Independent Obligations......................................  15

                                   ARTICLE VI
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1    Limitation of Transactions...................................  15
SECTION 6.2    Ranking......................................................  16

                                   ARTICLE VII
                                   TERMINATION

SECTION 7.1    Termination..................................................  16

                                  ARTICLE VIII
                                 INDEMNIFICATION

SECTION 8.1    Exculpation..................................................  17
SECTION 8.2    Indemnification..............................................  17

                                   ARTICLE IX
                                  MISCELLANEOUS

SECTION 9.1    Successors and Assigns.......................................  18
SECTION 9.2    Amendments...................................................  18
SECTION 9.3    Notices......................................................  18
SECTION 9.4    Benefit......................................................  19
SECTION 9.5    Governing Law................................................  19
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                                       ii
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                              AMENDED AND RESTATED
                    PREFERRED SECURITIES GUARANTEE AGREEMENT

                  This AMENDED AND RESTATED GUARANTEE AGREEMENT (the "Preferred
Securities Guarantee"), dated as of May 10, 2002, is executed and delivered by
and among Travelers Insurance Group Holdings Inc. (formerly named
Travelers/Aetna Property Casualty Corp.), a Delaware corporation (the
"Guarantor"), Travelers Property Casualty Corp. (formerly named The Travelers
Insurance Group Inc.), a Connecticut corporation, as an additional guarantor
("Travelers"), and JPMorgan Chase Bank (formerly named to The Chase Manhattan
Bank, N.A.), as trustee (the "Preferred Guarantee Trustee"), for the benefit of
the Holders (as defined herein) from time to time of the Preferred Securities
(as defined herein) of Travelers P&C Capital II, a Delaware statutory business
trust (the "Issuer");

                  WHEREAS, pursuant to an Amended and Restated Declaration of
Trust (the "Declaration"), dated as of May 15, 1996, among the trustees of the
Issuer named therein, the Guarantor, as sponsor, and the holders from time to
time of undivided beneficial interests in the assets of the Issuer, the Issuer
issued, on May 15, 1996, 4,000,000 preferred securities, having an aggregate
liquidation amount of $100,000,000, designated the 8% Trust Preferred Securities
(the "Preferred Securities");

                  WHEREAS, as incentive for the Holders to purchase the
Preferred Securities, the Guarantor irrevocably and unconditionally agreed, to
the extent set forth in the Original Preferred Securities Guarantee Agreement,
dated as of May 15, 1996, between the Guarantor and the Trustee (the "Original
Preferred Guarantee") to pay to the Holders the Guarantee Payments (as defined
herein) and to make certain other payments on the terms and conditions set forth
herein.

                  WHEREAS, on the date hereof, the Guarantor is a wholly owned
subsidiary of Travelers;

                  WHEREAS, Travelers desires to irrevocably and unconditionally
agree, to the extent set forth in this Preferred Securities Guarantee, to pay to
the Holders the Guarantee Payments and to make certain other payments on the
terms and conditions set forth herein, as long as the Guarantor remains a wholly
owned subsidiary of Travelers and the Preferred Securities remain outstanding;
and

                  WHEREAS, the execution of this Preferred Securities Guarantee
is authorized and permitted by Section 9.2 of the Original Preferred Securities
Guarantee Agreement.

                  NOW, THEREFORE, in order to effectuate the guarantees
described above, the parties hereto agree, for the equal and proportionate
benefit of the respective Holders, as follows:
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                                   ARTICLE I.
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1 Definitions and Interpretation

                  In this Preferred Securities Guarantee, unless the context
otherwise requires:

                  (a) Capitalized terms used in this Preferred Securities
Guarantee but not defined in the preamble above have the respective meanings
assigned to them in this Section 1.1;

                  (b) a term defined anywhere in this Preferred Securities
Guarantee has the same meaning throughout;

                  (c) all references to "the Preferred Securities Guarantee" or
"this Preferred Securities Guarantee" are to this Preferred Securities Guarantee
as modified, supplemented or amended from time to time;

                  (d) all references in this Preferred Securities Guarantee to
Articles and Sections are to Articles and Sections of this Preferred Securities
Guarantee, unless otherwise specified;

                  (e) a term defined in the Trust Indenture Act has the same
meaning when used in this Preferred Securities Guarantee, unless otherwise
defined in this Preferred Securities Guarantee or unless the context otherwise
requires; and

                  (f) a reference to the singular includes the plural and vice
versa.

                  "Authorized Officer" of a Person means any Person that is
authorized to bind such Person.

                  "Affiliate" has the same meaning as given to that term in Rule
405 of the Securities Act of 1933, as amended, or any successor rule thereunder.

                  "Business Day" means any day other than a Saturday, Sunday or
a day on which banking institutions in the City of New York, New York are
permitted or required by any applicable law to close.

                  "Common Securities" means the securities representing common
undivided beneficial interests in the assets of the Issuer.

                  "Corporate Trust Office" means the office of the Preferred
Guarantee Trustee at which the corporate trust business of the Preferred
Guarantee Trustee shall, at any particular time, be principally administered,
which office at the date of execution of this Agreement is located at 450 West
33rd Street, New York, New York 10001.

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                  "Covered Person" means any Holder or beneficial owner of
Preferred Securities.

                  "Debentures" means the series of junior subordinated debt
securities of the Guarantor designated the 8% Junior Subordinated Deferrable
Interest Debentures due May 15, 2036 held by the Institutional Trustee (as
defined in the Declaration) of the Issuer.

                  "Event of Default" means (i) a default by the Guarantor on any
of its payment or other obligations under this Preferred Securities Guarantee,
or (ii) a default by Travelers on any of its payment or other obligations under
this Preferred Securities Guarantee.

                  "Guarantee Payments" means the following payments or
distributions, without duplication, with respect to the Preferred Securities, to
the extent not paid or made by the Issuer: (i) any accrued and unpaid
Distributions (as defined in Annex I to the Declaration) that are required to be
paid on the Preferred Securities, to the extent the Issuer has funds available
therefor, (ii) the redemption price of $25 per Preferred Security, plus all
accrued and unpaid Distributions to the date of redemption (the "Redemption
Price"), to the extent the Issuer has funds available therefor, with respect to
any Preferred Securities called for redemption by the Issuer and (iii) upon a
voluntary or involuntary dissolution, winding-up or termination of the Issuer
(other than in connection with the distribution of Debentures to the Holders in
exchange for Preferred Securities as provided in the Declaration or the
redemption of all of the Preferred Securities upon the maturity or redemption of
all of the Debentures as provided in the Declaration) the lesser of (a) the
aggregate of the liquidation amount of $25 per Preferred Security and all
accrued and unpaid Distributions on the Preferred Securities to the date of
payment, or (b) the amount of assets of the Issuer remaining for distribution to
Holders in liquidation of the Issuer (in either case, the "Liquidation
Distribution").

                  "Holder" shall mean any holder, as registered on the books and
records of the Issuer, of any Preferred Securities; provided, however, that, in
determining whether the holders of the requisite percentage of Preferred
Securities have given any request, notice, consent or waiver hereunder, "Holder"
shall not include the Guarantor, any Affiliate of the Guarantor, Travelers or
any Affiliate of Travelers.

                  "Indemnified Person" means the Preferred Guarantee Trustee,
any Affiliate of the Preferred Guarantee Trustee, or any officers, directors,
shareholders, members, partners, employees, representatives, nominees,
custodians or agents of the Preferred Guarantee Trustee.

                  "Indenture" means the Indenture dated as of April 30, 1996,
among the Guarantor and JPMorgan Chase Bank (formerly named to The Chase
Manhattan Bank, N.A.), as trustee, and any indenture supplemental thereto,
pursuant to which the Debentures are to be issued to the Institutional Trustee
of the Issuer.

                  "Majority in liquidation amount of the Securities" means,
except as provided by the Trust Indenture Act, a vote by Holder(s), voting
separately as a class, holding Preferred Securities

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representing more than 50% of the aggregate liquidation amount (including the
stated amount that would be paid on redemption, liquidation or otherwise, plus
accrued and unpaid Distributions to the date upon which the voting percentages
are determined) of all Preferred Securities.

                  "Officers' Certificate" means, with respect to any Person, a
certificate signed by two Authorized Officers of such Person. Any Officers'
Certificate delivered with respect to compliance with a condition or covenant
provided for in this Preferred Securities Guarantee shall include:

                  (a) a statement that each officer signing the Officers'
         Certificate has read the covenant or condition and the definitions
         relating thereto;

                  (b) a brief statement of the nature and scope of the
         examination or investigation undertaken by each officer in rendering
         the Officers' Certificate;

                  (c) a statement that each such officer has made such
         examination or investigation as, in such officer's opinion, is
         necessary to enable such officer to express an informed opinion as to
         whether or not such covenant or condition has been complied with; and

                  (d) a statement as to whether, in the opinion of each such
         officer, such condition or covenant has been complied with.

                  "Person" means a legal person, including any individual,
corporation, estate, partnership, joint venture, association, joint stock
company, limited liability company, trust, unincorporated association, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.

                  "Preferred Guarantee Trustee" means JPMorgan Chase Bank
(formerly named The Chase Manhattan Bank, N.A.), until a Successor Preferred
Guarantee Trustee has been appointed and has accepted such appointment pursuant
to the terms of this Preferred Securities Guarantee, and thereafter means each
such Successor Preferred Guarantee Trustee.

                  "Responsible Officer" means, with respect to the Preferred
Guarantee Trustee, any officer within the Corporate Trust Office of the
Preferred Guarantee Trustee, including any vice-president, any assistant vice
president, any assistant secretary, the treasurer, any assistant treasurer or
other officer of the Corporate Trust Office of the Preferred Guarantee Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of that
officer's knowledge of and familiarity with the particular subject.

                  "Successor Preferred Guarantee Trustee" means a successor
Preferred Guarantee Trustee possessing the qualifications to act as Preferred
Guarantee Trustee under Section 4.1.

                  "Trust Indenture Act" means the Trust Indenture Act of 1939,
as amended.

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                                   ARTICLE II.
                               TRUST INDENTURE ACT

SECTION 2.1 Trust Indenture Act; Application

                  (a) This Preferred Securities Guarantee is subject to the
provisions of the Trust Indenture Act that are required to be part of this
Preferred Securities Guarantee and shall, to the extent applicable, be governed
by such provisions; and

                  (b) if and to the extent that any provision of this Preferred
Securities Guarantee limits, qualifies or conflicts with the duties imposed by
Section 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties
shall control.

SECTION 2.2 Lists of Holders of Securities

                  (a) The Guarantor shall provide the Preferred Guarantee
Trustee with a list, in such form as the Preferred Guarantee Trustee may
reasonably require, of the names and addresses of the Holders ("List of
Holders") as of such date, (i) within one Business Day after January 1 and June
30 of each year, and (ii) at any other time within 30 days of receipt by the
Guarantor of a written request for a List of Holders as of a date no more than
14 days before such List of Holders is given to the Preferred Guarantee Trustee;
provided, that the Guarantor shall not be obligated to provide such List of
Holders at any time the List of Holders does not differ from the most recent
List of Holders given to the Preferred Guarantee Trustee by the Guarantor. The
Preferred Guarantee Trustee may destroy any List of Holders previously given to
it on receipt of a new List of Holders.

                  (b) The Preferred Guarantee Trustee shall comply with its
obligations under Sections 311(a), 311(b) and 312(b) of the Trust Indenture Act.

SECTION 2.3 Reports by the Preferred Guarantee Trustee

                  Within 60 days after April 15 of each year, the Preferred
Guarantee Trustee shall provide to the Holders such reports as are required by
Section 313 of the Trust Indenture Act, if any, in the form and in the manner
provided by Section 313 of the Trust Indenture Act. The Preferred Guarantee
Trustee shall also comply with the requirements of Section 313(d) of the Trust
Indenture Act.

SECTION 2.4 Periodic Reports to Preferred Guarantee Trustee

                  Travelers and the Guarantor shall provide to the Preferred
Guarantee Trustee such documents, reports and information as required by Section
314 (if any) and the compliance certificate required by Section 314 of the Trust
Indenture Act in the form, in the manner and at the times required by Section
314 of the Trust Indenture Act.

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SECTION 2.5 Evidence of Compliance with Conditions Precedent

                  Travelers and the Guarantor shall provide to the Preferred
Guarantee Trustee such evidence of compliance with any conditions precedent, if
any, provided for in this Preferred Securities Guarantee that relate to any of
the matters set forth in Section 314(c) of the Trust Indenture Act. Any
certificate or opinion required to be given by an officer pursuant to Section
314(c)(1) may be given in the form of an Officers' Certificate.

SECTION 2.6 Events of Default; Waiver

                  The Holders of a Majority in liquidation amount of Preferred
Securities may, by vote, on behalf of the Holders of all of the Preferred
Securities, waive any past Event of Default and its consequences. Upon such
waiver, any such Event of Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this
Preferred Securities Guarantee, but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.

SECTION 2.7 Event of Default; Notice

                  (a) The Preferred Guarantee Trustee shall, within 90 days
after the occurrence of an Event of Default, transmit by mail, first class
postage prepaid, to the Holders, notices of all Events of Default actually known
to a Responsible Officer of the Preferred Guarantee Trustee, unless such
defaults have been cured before the giving of such notice; provided, that the
Preferred Guarantee Trustee shall be protected in withholding such notice if and
so long as a Responsible Officer of the Preferred Guarantee Trustee in good
faith determines that the withholding of such notice is in the interests of the
Holders.

                  (b) The Preferred Guarantee Trustee shall not be deemed to
have knowledge of any Event of Default unless either the Preferred Guarantee
Trustee shall have received written notice, or a Responsible Officer of the
Preferred Guarantee Trustee charged with the administration of the Declaration
shall have obtained actual knowledge.

SECTION 2.8 Conflicting Interests

                  The Declaration shall be deemed to be specifically described
in this Preferred Securities Guarantee for the purposes of clause (i) of the
first proviso contained in Section 310(b) of the Trust Indenture Act.

                                        6
<PAGE>
                                  ARTICLE III.
                          POWERS, DUTIES AND RIGHTS OF
                           PREFERRED GUARANTEE TRUSTEE

SECTION 3.1 Powers and Duties of the Preferred Guarantee Trustee

                  (a) This Preferred Securities Guarantee shall be held by the
Preferred Guarantee Trustee for the benefit of the Holders, and the Preferred
Guarantee Trustee shall not transfer its right, title and interest in this
Preferred Securities Guarantee to any Person except a Holder exercising his or
her rights pursuant to Section 5.4(b) or to a Successor Preferred Guarantee
Trustee on acceptance by such Successor Preferred Guarantee Trustee of its
appointment to act as Successor Preferred Guarantee Trustee. The right, title
and interest of the Preferred Guarantee Trustee shall automatically vest in any
Successor Preferred Guarantee Trustee, and such vesting and cessation of title
shall be effective whether or not conveyancing documents have been executed and
delivered pursuant to the appointment of such Successor Preferred Guarantee
Trustee.

                  (b) If an Event of Default actually known to a Responsible
Officer of the Preferred Guarantee Trustee has occurred and is continuing, the
Preferred Guarantee Trustee shall enforce this Preferred Securities Guarantee
for the benefit of the Holders of the Preferred Securities.

                  (c) The Preferred Guarantee Trustee, before the occurrence of
any Event of Default and after the curing of all Events of Default that may have
occurred, shall undertake to perform only such duties as are specifically set
forth in this Preferred Securities Guarantee, and no implied covenants shall be
read into this Preferred Securities Guarantee against the Preferred Guarantee
Trustee. In case an Event of Default has occurred (that has not been cured or
waived pursuant to Section 2.6) and is actually known to a Responsible Officer
of the Preferred Guarantee Trustee, the Preferred Guarantee Trustee shall
exercise such of the rights and powers vested in it by this Preferred Securities
Guarantee, and use the same degree of care and skill in its exercise thereof, as
a prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs.

                  (d) No provision of this Preferred Securities Guarantee shall
be construed to relieve the Preferred Guarantee Trustee from liability for its
own negligent action, its own negligent failure to act or its own willful
misconduct, except that:

                  (i) prior to the occurrence of any Event of Default and after
         the curing or waiving of all such Events of Default that may have
         occurred:

                           (A) the duties and obligations of the Preferred
                  Guarantee Trustee shall be determined solely by the express
                  provisions of this Preferred Securities Guarantee, and the
                  Preferred Guarantee Trustee shall not be liable except for the
                  performance of such duties and obligations as are specifically
                  set forth in this Preferred Securities

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                  Guarantee, and no implied covenants or obligations shall be
                  read into this Preferred Securities Guarantee against the
                  Preferred Guarantee Trustee; and

                           (B) in the absence of bad faith on the part of the
                  Preferred Guarantee Trustee, the Preferred Guarantee Trustee
                  may conclusively rely, as to the truth of the statements and
                  the correctness of the opinions expressed therein, upon any
                  certificates or opinions furnished to the Preferred Guarantee
                  Trustee and conforming to the requirements of this Preferred
                  Securities Guarantee; but in the case of any such certificates
                  or opinions that by any provision hereof are specifically
                  required to be furnished to the Preferred Guarantee Trustee,
                  the Preferred Guarantee Trustee shall be under a duty to
                  examine the same to determine whether or not they conform to
                  the requirements of this Preferred Securities Guarantee;

                  (ii) the Preferred Guarantee Trustee shall not be liable for
         any error of judgment made in good faith by a Responsible Officer of
         the Preferred Guarantee Trustee, unless it shall be proved that the
         Preferred Guarantee Trustee was negligent in ascertaining the pertinent
         facts upon which such judgment was made;

                  (iii) the Preferred Guarantee Trustee shall not be liable with
         respect to any action taken or omitted to be taken by it in good faith
         in accordance with the direction of the Holders of not less than a
         Majority in liquidation amount of the Preferred Securities relating to
         the time, method and place of conducting any proceeding for any remedy
         available to the Preferred Guarantee Trustee, or exercising any trust
         or power conferred upon the Preferred Guarantee Trustee under this
         Preferred Securities Guarantee; and

                  (iv) no provision of this Preferred Securities Guarantee shall
         require the Preferred Guarantee Trustee to expend or risk its own funds
         or otherwise incur personal financial liability in the performance of
         any of its duties or in the exercise of any of its rights or powers, if
         the Preferred Guarantee Trustee shall have reasonable grounds for
         believing that the repayment of such funds or liability is not
         reasonably assured to it under the terms of this Preferred Securities
         Guarantee or indemnity, reasonably satisfactory to the Preferred
         Guarantee Trustee, against such risk or liability is not reasonably
         assured to it.

SECTION 3.2 Certain Rights of Preferred Guarantee Trustee

                  (a) Subject to the provisions of Section 3.1:

                  (i) The Preferred Guarantee Trustee may conclusively rely, and
         shall be fully protected in acting or refraining from acting upon, any
         resolution, certificate, statement, instrument, opinion, report,
         notice, request, direction, consent, order, bond, debenture, note,
         other evidence of indebtedness or other paper or document believed by
         it to be genuine and to have been signed, sent or presented by the
         proper party or parties.

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<PAGE>
                  (ii) Any direction or act of the Guarantor contemplated by
         this Preferred Securities Guarantee shall be sufficiently evidenced by
         an Officers' Certificate.

                  (iii) Whenever, in the administration of this Preferred
         Securities Guarantee, the Preferred Guarantee Trustee shall deem it
         desirable that a matter be proved or established before taking,
         suffering or omitting any action hereunder, the Preferred Guarantee
         Trustee (unless other evidence is herein specifically prescribed) may,
         in the absence of bad faith on its part, request and conclusively rely
         upon an Officers' Certificate which, upon receipt of such request,
         shall be promptly delivered by the Guarantor.

                  (iv) The Preferred Guarantee Trustee shall have no duty to see
         to any recording, filing or registration of any instrument (or any
         rerecording, refiling or registration thereof).

                  (v) The Preferred Guarantee Trustee may consult with counsel,
         and the written advice or opinion of such counsel with respect to legal
         matters shall be full and complete authorization and protection in
         respect of any action taken, suffered or omitted by it hereunder in
         good faith and in accordance with such advice or opinion. Such counsel
         may be counsel to the Guarantor or any of its Affiliates, or Travelers
         or any of its Affiliates and may include any of its employees. The
         Preferred Guarantee Trustee shall have the right at any time to seek
         instructions concerning the administration of this Preferred Securities
         Guarantee from any court of competent jurisdiction.

                  (vi) The Preferred Guarantee Trustee shall be under no
         obligation to exercise any of the rights or powers vested in it by this
         Preferred Securities Guarantee at the request or direction of any
         Holder, unless such Holder shall have provided to the Preferred
         Guarantee Trustee such security and indemnity, reasonably satisfactory
         to the Preferred Guarantee Trustee, against the costs, expenses
         (including attorneys' fees and expenses and the expenses of the
         Preferred Guarantee Trustee's agents, nominees or custodians) and
         liabilities that might be incurred by it in complying with such request
         or direction, including such reasonable advances as may be requested by
         the Preferred Guarantee Trustee; provided that, nothing contained in
         this Section 3.2(a)(vi) shall be taken to relieve the Preferred
         Guarantee Trustee, upon the occurrence of an Event of Default, of its
         obligation to exercise the rights and powers vested in it by this
         Preferred Securities Guarantee.

                  (vii) The Preferred Guarantee Trustee shall not be bound to
         make any investigation into the facts or matters stated in any
         resolution, certificate, statement, instrument, opinion, report,
         notice, request, direction, consent, order, bond, debenture, note,
         other evidence of indebtedness or other paper or document, but the
         Preferred Guarantee Trustee, in its discretion, may make such further
         inquiry or investigation into such facts or matters as it may see fit.

                  (viii) The Preferred Guarantee Trustee may execute any of the
         trusts or powers hereunder or perform any duties hereunder either
         directly or by or through agents, nominees,

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<PAGE>
         custodians or attorneys, and the Preferred Guarantee Trustee shall not
         be responsible for any misconduct or negligence on the part of any
         agent or attorney appointed with due care by it hereunder.

                  (ix) Any action taken by the Preferred Guarantee Trustee or
         its agents hereunder shall bind the Holders of the Preferred
         Securities, and the signature of the Preferred Guarantee Trustee or its
         agents alone shall be sufficient and effective to perform any such
         action. No third party shall be required to inquire as to the authority
         of the Preferred Guarantee Trustee to so act or as to its compliance
         with any of the terms and provisions of this Preferred Securities
         Guarantee, both of which shall be conclusively evidenced by the
         Preferred Guarantee Trustee's or its agent's taking such action.

                  (x) Whenever in the administration of this Preferred
         Securities Guarantee the Preferred Guarantee Trustee shall deem it
         desirable to receive instructions with respect to enforcing any remedy
         or right or taking any other action hereunder, the Preferred Guarantee
         Trustee (i) may request instructions from the Holders of a Majority in
         liquidation amount of the Preferred Securities, (ii) may refrain from
         enforcing such remedy or right or taking such other action until such
         instructions are received, and (iii) shall be protected in conclusively
         relying on or acting in accordance with such instructions.

                  (b) No provision of this Preferred Securities Guarantee shall
be deemed to impose any duty or obligation on the Preferred Guarantee Trustee to
perform any act or acts or exercise any right, power, duty or obligation
conferred or imposed on it in any jurisdiction in which it shall be illegal, or
in which the Preferred Guarantee Trustee shall be unqualified or incompetent in
accordance with applicable law, to perform any such act or acts or to exercise
any such right, power, duty or obligation. No permissive power or authority
available to the Preferred Guarantee Trustee shall be construed to be a duty.

SECTION 3.3. Not Responsible for Recitals or Issuance of Guarantee

                  The recitals contained in this Guarantee shall be taken as the
statements of the Guarantor, and the Preferred Guarantee Trustee does not assume
any responsibility for their correctness. The Preferred Guarantee Trustee makes
no representation as to the validity or sufficiency of this Preferred Securities
Guarantee.

                                   ARTICLE IV.
                           PREFERRED GUARANTEE TRUSTEE

SECTION 4.1 Preferred Guarantee Trustee; Eligibility

                  (a) There shall at all times be a Preferred Guarantee Trustee
which shall:

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                  (i) not be an Affiliate of the Guarantor or Travelers; and

                  (ii) be a corporation organized and doing business under the
         laws of the United States of America or any State or Territory thereof
         or of the District of Columbia, or a corporation or Person permitted by
         the Securities and Exchange Commission to act as an institutional
         trustee under the Trust Indenture Act, authorized under such laws to
         exercise corporate trust powers, having a combined capital and surplus
         of at least 50 million U.S. dollars ($50,000,000), and subject to
         supervision or examination by Federal, State, Territorial or District
         of Columbia authority. If such corporation publishes reports of
         condition at least annually, pursuant to law or to the requirements of
         the supervising or examining authority referred to above, then, for the
         purposes of this Section 4.1(a)(ii), the combined capital and surplus
         of such corporation shall be deemed to be its combined capital and
         surplus as set forth in its most recent report of condition so
         published.

                  (b) If at any time the Preferred Guarantee Trustee shall cease
to be eligible to so act under Section 4.1(a), the Preferred Guarantee Trustee
shall immediately resign in the manner and with the effect set out in Section
4.2(c).

                  (c) If the Preferred Guarantee Trustee has or shall acquire
any "conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Preferred Guarantee Trustee and Guarantor shall in all
respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

SECTION 4.2 Appointment, Removal and Resignation of Preferred Guarantee Trustees

                  (a) Subject to Section 4.2(b), the Preferred Guarantee Trustee
may be appointed or removed without cause at any time by the Guarantor except if
an Event of Default shall have occurred and be continuing.

                  (b) The Preferred Guarantee Trustee shall not be removed in
accordance with Section 4.2(a) until a Successor Preferred Guarantee Trustee has
been appointed and has accepted such appointment by written instrument executed
by such Successor Preferred Guarantee Trustee and delivered to the Guarantor.

                  (c) The Preferred Guarantee Trustee appointed to office shall
hold office until a Successor Preferred Guarantee Trustee shall have been
appointed or until its removal or resignation. The Preferred Guarantee Trustee
may resign from office (without need for prior or subsequent accounting) by an
instrument in writing executed by the Preferred Guarantee Trustee and delivered
to the Guarantor, which resignation shall not take effect until a Successor
Preferred Guarantee Trustee has been appointed and has accepted such appointment
by instrument in writing executed by such Successor Preferred Guarantee Trustee
and delivered to the Guarantor and the resigning Preferred Guarantee Trustee.

                                       11
<PAGE>
                  (d) If no Successor Preferred Guarantee Trustee shall have
been appointed and accepted appointment as provided in this Section 4.2 within
60 days after delivery to the Guarantor of an instrument of resignation, the
resigning Preferred Guarantee Trustee may petition any court of competent
jurisdiction for appointment of a Successor Preferred Guarantee Trustee. Such
court may thereupon, after prescribing such notice, if any, as it may deem
proper, appoint a Successor Preferred Guarantee Trustee.

                  (e) No Preferred Guarantee Trustee shall be liable for the
acts or omissions to act of any Successor Preferred Guarantee Trustee.

                  (f) Upon termination of this Preferred Securities Guarantee or
removal or resignation of the Preferred Guarantee Trustee pursuant to this
Section 4.2, the Guarantor shall pay to the Preferred Guarantee Trustee all
amounts accrued and owing to such Preferred Guarantee Trustee to the date of
such termination, removal or resignation.

                                   ARTICLE V.
                                    GUARANTEE

SECTION 5.1 Guarantee

                  The Guarantor and Travelers, jointly and severally,
irrevocably and unconditionally agrees to pay in full to the Holders the
Guarantee Payments, as and when due, regardless of any defense, right of set-off
or counterclaim that the Issuer may have or assert. The Guarantor's obligation
to make a Guarantee Payment may be satisfied by direct payment of the required
amounts by the Guarantor to the Holders or by causing the Issuer to pay such
amounts to the Holders.

SECTION 5.2 Waiver of Notice and Demand

                  (a) The Guarantor hereby waives notice of acceptance of this
Preferred Securities Guarantee and of any liability to which it applies or may
apply, presentment, demand for payment, any right to require a proceeding first
against the Issuer or any other Person before proceeding against the Guarantor,
protest, notice of nonpayment, notice of dishonor, notice of redemption and all
other notices and demands.

                  (b) Travelers hereby waives notice of acceptance of this
Preferred Securities Guarantee and of any liability to which it applies or may
apply, presentment, demand for payment, any right to require a proceeding first
against the Issuer or any other Person before proceeding against Travelers,
protest, notice of nonpayment, notice of dishonor, notice of redemption and all
other notices and demands.

                                       12
<PAGE>
SECTION 5.3 Obligations Not Affected

                  The obligations, covenants, agreements and duties of the
Guarantor and Travelers under this Preferred Securities Guarantee shall in no
way be affected or impaired by reason of the happening from time to time of any
of the following:

                  (a) the release or waiver, by operation of law or otherwise,
of the performance or observance by the Issuer of any express or implied
agreement, covenant, term or condition relating to the Preferred Securities to
be performed or observed by the Issuer;

                  (b) the extension of time for the payment by the Issuer of all
or any portion of the Distributions, Redemption Price, Liquidation Distribution
or any other sums payable under the terms of the Preferred Securities or the
extension of time for the performance of any other obligation under, arising out
of, or in connection with, the Preferred Securities;

                  (c) any failure, omission, delay or lack of diligence on the
part of the Holders to enforce, assert or exercise any right, privilege, power
or remedy conferred on the Holders pursuant to the terms of the Preferred
Securities, or any action on the part of the Issuer granting indulgence or
extension of any kind;

                  (d) the voluntary or involuntary liquidation, dissolution,
sale of any collateral, receivership, insolvency, bankruptcy, assignment for the
benefit of creditors, reorganization, arrangement, composition or readjustment
of debt of, or other similar proceedings affecting, the Issuer or any of the
assets of the Issuer;

                  (e) any invalidity of, or defect or deficiency in, the
Preferred Securities;

                  (f) the settlement or compromise of any obligation guaranteed
hereby or hereby incurred; or

                  (g) any other circumstance whatsoever that might otherwise
constitute a legal or equitable discharge or defense of a guarantor, it being
the intent of this Section 5.3 that the obligations of the Guarantor and
Travelers hereunder shall be absolute and unconditional under any and all
circumstances.

                  There shall be no obligation of the Holders to give notice to,
or obtain consent of, the Guarantor or Travelers with respect to the happening
of any of the foregoing.

SECTION 5.4 Rights of Holders

                  (a) The Holders of a Majority in liquidation amount of the
Preferred Securities have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Preferred Guarantee
Trustee in respect of this Preferred Securities Guarantee or

                                       13
<PAGE>
exercising any trust or power conferred upon the Preferred Guarantee Trustee
under this Preferred Securities Guarantee.

                  (b) If the Preferred Guarantee Trustee fails to enforce its
rights under this Preferred Securities Guarantee, any Holder may directly
institute a legal proceeding against the Guarantor or Travelers to enforce the
Preferred Guarantee Trustee's rights under this Preferred Securities Guarantee,
without first instituting a legal proceeding against the Issuer, the Preferred
Guarantee Trustee or any other Person or entity.

                  (c) A Holder of Preferred Securities may also directly
institute a legal proceeding against the Guarantor and Travelers to enforce such
Holder's right to receive payment under this Preferred Securities Guarantee
without first (i) directing the Preferred Guarantee Trustee to enforce the terms
of this Preferred Securities Guarantee or (ii) instituting a legal proceeding
directly against the Issuer or any other Person or entity.

SECTION 5.5 Guarantee of Payment

                  This Preferred Securities Guarantee creates a guarantee of
payment and not of collection.

SECTION 5.6 Subrogation

                  (a) The Guarantor shall be subrogated to all (if any) rights
of the Holders of Preferred Securities against the Issuer in respect of any
amounts paid to such Holders by the Guarantor under this Preferred Securities
Guarantee; provided, however, that the Guarantor shall not (except to the extent
required by mandatory provisions of law) be entitled to enforce or exercise any
right that it may acquire by way of subrogation or any indemnity, reimbursement
or other agreement, in all cases as a result of payment under this Preferred
Securities Guarantee, if, at the time of any such payment, any amounts are due
and unpaid under this Preferred Securities Guarantee. If any amount shall be
paid to the Guarantor in violation of the preceding sentence, the Guarantor
agrees to hold such amount in trust for the Holders and to pay over such amount
to the Holders.

                  (b) Travelers shall be subrogated to all (if any) rights of
the Holders of Preferred Securities against the Issuer in respect of any amounts
paid to such Holders by Travelers under this Preferred Securities Guarantee;
provided, however, that Travelers shall not (except to the extent required by
mandatory provisions of law) be entitled to enforce or exercise any right that
it may acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Preferred Securities
Guarantee, if, at the time of any such payment, any amounts are due and unpaid
under this Preferred Securities Guarantee. If any amount shall be paid to
Travelers in violation of the preceding sentence, Travelers agrees to hold such
amount in trust for the Holders and to pay over such amount to the Holders.

                                       14
<PAGE>
SECTION 5.7 Independent Obligations

                  (a) The Guarantor acknowledges that its obligations hereunder
are independent of the obligations of the Issuer and Travelers with respect to
the Preferred Securities, and that the Guarantor shall be liable as principal
and as debtor hereunder to make Guarantee Payments pursuant to the terms of this
Preferred Securities Guarantee notwithstanding the occurrence of any event
referred to in subsections (a) through (g), inclusive, of Section 5.3 hereof.

                  (b) Travelers acknowledges that its obligations hereunder are
independent of the obligations of the Issuer and the Guarantor with respect to
the Preferred Securities, and that Travelers shall be liable as principal and as
debtor hereunder to make Guarantee Payments pursuant to the terms of this
Preferred Securities Guarantee notwithstanding the occurrence of any event
referred to in subsections (a) through (g), inclusive, of Section 5.3 hereof.

                                   ARTICLE VI.
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1 Limitation of Transactions

                  (a) So long as any Preferred Securities remain outstanding, if
there shall have occurred any event that would constitute an Event of Default or
an event of default under the Declaration, then (a) the Guarantor shall not
declare or pay any dividend on, make any distributions with respect to, or
redeem, purchase, acquire or make a liquidation payment with respect to, any of
its capital stock or make any guarantee payment with respect thereto (other than
(i) repurchases, redemptions or other acquisitions of shares of capital stock of
the Guarantor in connection with any employment contract, benefit plan or other
similar arrangement with or for the benefit of employees, officers, directors or
consultants, (ii) as a result of an exchange or conversion of any class or
series of the Guarantor's capital stock for any other class or series of the
Guarantor's capital stock, or (iii) the purchase of fractional interests in
shares of the Guarantor's capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged)
and (b) the Guarantor shall not make any payment of interest on, or principal of
(or premium, if any, on), or repay, repurchase or redeem, any debt securities
issued by the Guarantor which rank pari passu with or junior to the Debentures;
provided, however, the Guarantor may declare and pay a stock dividend where the
dividend stock is the same stock as that on which the dividend is being paid.

                  (b) So long as any Preferred Securities remain outstanding, if
there shall have occurred any event that would constitute an Event of Default or
an event of default under the Declaration, then (a) Travelers shall not declare
or pay any dividend on, make any distributions with respect to, or redeem,
purchase, acquire or make a liquidation payment with respect to, any of its
capital stock or make any guarantee payment with respect thereto (other than (i)
repurchases, redemptions or other acquisitions of shares of capital stock of
Travelers in connection with any

                                       15
<PAGE>
employment contract, benefit plan or other similar arrangement with or for the
benefit of employees, officers, directors or consultants, (ii) as a result of an
exchange or conversion of any class or series of Travelers' capital stock for
any other class or series of Travelers' capital stock, or (iii) the purchase of
fractional interests in shares of Travelers' capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged) and (b) Travelers shall not make any payment of interest
on, or principal of (or premium, if any, on), or repay, repurchase or redeem,
any debt securities issued by Travelers which rank pari passu with or junior to
the Debentures; provided, however, Travelers may declare and pay a stock
dividend where the dividend stock is the same stock as that on which the
dividend is being paid.

SECTION 6.2 Ranking

                  (a) This Preferred Securities Guarantee will constitute an
unsecured obligation of the Guarantor and will rank (i) subordinate and junior
in right of payment to all other liabilities of the Guarantor, (ii) pari passu
with the most senior preferred or preference stock now or hereafter issued by
the Guarantor and with any guarantee now or hereafter entered into by the
Guarantor and with any guarantee now or hereafter entered into by the Guarantor
in respect of any preferred or preference stock of any Affiliate of the
Guarantor and (iii) senior to the Guarantor's common stock.

                  (b) This Preferred Securities Guarantee will constitute an
unsecured obligation of Travelers and will rank (i) subordinate and junior in
right of payment to all other liabilities of Travelers, (ii) pari passu with the
most senior preferred or preference stock now or hereafter issued by Travelers
and with any guarantee now or hereafter entered into by Travelers and with any
guarantee now or hereafter entered into by Travelers in respect of any preferred
or preference stock of any Affiliate of Travelers and (iii) senior to Travelers'
common stock.

                                  ARTICLE VII.
                                   TERMINATION

SECTION 7.1 Termination

                  This Preferred Securities Guarantee shall terminate upon (i)
full payment of the Redemption Price of all Preferred Securities, (ii) the
distribution of the Debentures to the Holders of all of the Preferred Securities
or (iii) full payment of the amounts payable in accordance with the Declaration
upon liquidation of the Issuer. Notwithstanding the foregoing, this Preferred
Securities Guarantee will continue to be effective or will be reinstated, as the
case may be, if at any time any Holder must restore payment of any sums paid
under the Preferred Securities or under this Preferred Securities Guarantee.

                                       16
<PAGE>
                                  ARTICLE VIII.
                                 INDEMNIFICATION

SECTION 8.1 Exculpation

                  (a) No Indemnified Person shall be liable, responsible or
accountable in damages or otherwise to the Guarantor, Travelers or any Covered
Person for any loss, damage or claim incurred by reason of any act or omission
performed or omitted by such Indemnified Person in good faith in accordance with
this Preferred Securities Guarantee and in a manner that such Indemnified Person
reasonably believed to be within the scope of the authority conferred on such
Indemnified Person by this Preferred Securities Guarantee or by law, except that
an Indemnified Person shall be liable for any such loss, damage or claim
incurred by reason of such Indemnified Person's negligence or willful misconduct
with respect to such acts or omissions.

                  (b) An Indemnified Person shall be fully protected in relying
in good faith upon the records of the Guarantor and upon such information,
opinions, reports or statements presented to the Guarantor by any Person as to
matters the Indemnified Person reasonably believes are within such other
Person's professional or expert competence and who has been selected with
reasonable care by or on behalf of the Guarantor, including information,
opinions, reports or statements as to the value and amount of the assets,
liabilities, profits, losses, or any other facts pertinent to the existence and
amount of assets from which Distributions to Holders might properly be paid.

                  (c) An Indemnified Person shall be fully protected in relying
in good faith upon the records of Travelers and upon such information, opinions,
reports or statements presented to Travelers by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable care
by or on behalf of Travelers, including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts pertinent to the existence and amount of assets from
which Distributions to Holders might properly be paid.

SECTION 8.2 Indemnification

                  Each of the Guarantor and Travelers, jointly and severally,
agrees to indemnify each Indemnified Person for, and to hold each Indemnified
Person harmless against, any loss, liability or expense incurred without
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder, including the
costs and expenses (including reasonable legal fees and expenses) of defending
itself against, or investigating, any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The obligation
to indemnify as set forth in this Section 8.2 shall survive the termination of
this Preferred Securities Guarantee.

                                       17
<PAGE>
                                   ARTICLE IX.
                                  MISCELLANEOUS

SECTION 9.1 Successors and Assigns

                  All guarantees and agreements contained in this Preferred
Securities Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Preferred Securities then outstanding.

SECTION 9.2 Amendments

                  Except with respect to any changes that do not adversely
affect the rights of Holders (in which case no consent of Holders will be
required), this Preferred Securities Guarantee may be amended only with the
prior approval of the Holders of not less than a Majority in aggregate
liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accrued and unpaid Distributions to
the date upon which the voting percentages are determined) of all the
outstanding Preferred Securities. The provisions of Section 12.2 of the
Declaration with respect to meetings of Holders apply to the giving of such
approval.

SECTION 9.3 Notices

                  All notices provided for in this Preferred Securities
Guarantee shall be in writing, duly signed by the party giving such notice, and
shall be delivered, telecopied or mailed by registered or certified mail, as
follows:

                  (a) If given to the Preferred Guarantee Trustee, at the
Preferred Guarantee Trustee's mailing address set forth below (or such other
address as the Preferred Guarantee Trustee may give notice of to the Holders):

                           JPMorgan Chase Bank
                           450 West 33rd Street
                           New York, New York  10001
                           Attention:  Institutional Trust Services

                  (b) If given to the Guarantor, at the Guarantor's mailing
address set forth below (or such other address as the Guarantor may give notice
of to the Holders):

                           Travelers Insurance Group Holdings Inc.
                           One Tower Square, 8 MS
                           Hartford, Connecticut 06183
                           Attention:  Paul Eddy

                  (c) If given to Travelers, at Travelers' mailing address set
forth below (or such other address as Travelers may give notice of to the
Holders):

                                       18
<PAGE>
                           Travelers Property Casualty Corp.
                           One Tower Square, 8 MS
                           Hartford, Connecticut 06183
                           Attention:  Paul Eddy

                  (d) If given to any Holder, at the address set forth on the
books and records of the Issuer.

                  All such notices shall be deemed to have been given when
received in person, telecopied with receipt confirmed, or mailed by first class
mail, postage prepaid except that if a notice or other document is refused
delivery or cannot be delivered because of a changed address of which no notice
was given, such notice or other document shall be deemed to have been delivered
on the date of such refusal or inability to deliver.

SECTION 9.4 Benefit

                  This Preferred Securities Guarantee is solely for the benefit
of the Holders of the Preferred Securities and, subject to Section 3.1(a), is
not separately transferable from the Preferred Securities.

SECTION 9.5 Governing Law

                  THIS PREFERRED SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK,
AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED BY SUCH LAWS WITHOUT REGARD FOR
THE PRINCIPLES OF ITS CONFLICTS OF LAWS.

                                       19
<PAGE>
                  THIS PREFERRED SECURITIES GUARANTEE is executed as of the day
and year first above written.

                                      TRAVELERS INSURANCE GROUP
                                      HOLDINGS INC.,
                                      as Guarantor

                                      By:  /s/ William H. White
                                         --------------------------------------
                                         Name:  William H. White
                                         Title: Vice President and Treasurer

                                      TRAVELERS PROPERTY CASUALTY CORP.,
                                      as secondary guarantor

                                      By:  /s/ William H. White
                                         --------------------------------------
                                         Name:  William H. White
                                         Title: Vice President and Treasurer

                                      JPMORGAN CHASE BANK,
                                      as Preferred Guarantee Trustee

                                      By:  /s/ Robert S. Peschler
                                         --------------------------------------
                                         Name:  Robert S. Peschler
                                         Title: Assistant Vice President<PAGE>

                                                                  Exhibit 10.5.1

                              STANADYNE CORPORATION

                                  PENSION PLAN

     (1) Amended and restated effective January 1, 2002, except to the extent
         the applicable laws named below or the plan amendments incorporated
         herein and referenced below provide for an earlier effective date, in
         which case such earlier date or dates shall apply.

     (2) This document restates the Stanadyne Corporation Pension Plan Document
         adopted December 20, 1994, by incorporating the 1997 Amendment; the
         1998 Qualifying Amendment; the 1998-1st Amendment; the 2000-1st
         Amendment; the 2000-2nd Amendment; and the applicable requirements of
         the Uruguay Round Agreements Act ("GATT"), Uniformed Services
         Employment and Reemployment Rights Act of 1994, Small Business Job
         Protection Act of 1996, the Taxpayer Relief Act of 1997, the Internal
         Revenue Service Restructuring and Reform Act of 1998, and the Community
         Renewal Tax Relief Act of 2000.
<PAGE>
<TABLE>
<CAPTION>

                               TABLE OF CONTENTS

<S>                                                                                              <C>
ARTICLE I     DEFINITIONS...........................................................................1

ARTICLE II    SERVICE AND PARTICIPATION............................................................11

ARTICLE III   NORMAL RETIREMENT DATE AND NORMAL RETIREMENT INCOME..................................19

ARTICLE IV    EARLY RETIREMENT DATE AND EARLY RETIREMENT INCOME....................................25

ARTICLE V     POSTPONED RETIREMENT DATE AND POSTPONED RETIREMENT INCOME............................26

ARTICLE VI    TERMINATION OF EMPLOYMENT............................................................28

ARTICLE VII   DEATH AND DISABILITY BENEFITS........................................................30

ARTICLE VIII  PAYMENT OF RETIREMENT BENEFITS.......................................................31

ARTICLE IX    RETIREMENT PLAN COMMITTEE............................................................39

ARTICLE X     FUNDING AND CONTRIBUTIONS............................................................45

ARTICLE XI    FIDUCIARY RESPONSIBILITIES...........................................................47

ARTICLE XII   AMENDMENT AND TERMINATION............................................................49

ARTICLE XIII  GENERAL PROVISIONS...................................................................54

ARTICLE XIV   TOP-HEAVY PLAN REQUIREMENTS..........................................................62

ARTICLE XV    DIRECT ROLLOVERS.....................................................................71

APPENDIX A    SPECIFIC PROVISIONS FOR PARTICIPANTS ON THE HARTFORD HOURLY PAYROLL..................72

APPENDIX B    SPECIFIC PROVISIONS FOR PARTICIPANTS ON THE JACKSONVILLE HOURLY PAYROLL..............82

APPENDIX C    SPECIFIC PROVISIONS FOR PARTICIPANTS ON THE WASHINGTON FACTORY HOURLY PAYROLL........91

APPENDIX D-1  SPECIFIC PROVISIONS FOR STANADYNE SALARIED EMPLOYEES................................101

APPENDIX D-2  STANADYNE CORPORATION PENSION PLAN SALARIED
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                              <C>
                 EMPLOYEES COVERED BY THE PLAN....................................................121

APPENDIX E    STANADYNE CORPORATION PENSION PLAN CONTINGENT ANNUITANT OPTION
                REDUCTION FACTORS NORMAL FORM LIFE ANNUITY .......................................122

TABLE A       FRACTIONAL YEAR TABLE...............................................................123
</TABLE>

                                      iii
<PAGE>
                                    PREAMBLE

                  Effective February 10, 1989, Stanadyne Automotive Corp. (the
"Company") established a new retirement plan referred to as the Stanadyne
Automotive Corp. Hartford Hourly Pension Plan to provide Eligible Employees with
periodic income after retirement in addition to benefits under the Social
Security Act.

                  Effective December 31, 1990, two other defined benefit
retirement plans maintained by the Company, the Stanadyne Automotive Corp.
Washington Hourly Pension Plan and the Stanadyne Automotive Corp. Jacksonville
Hourly Pension Plan were merged in their entirety into the Stanadyne Automotive
Corp. Hartford Hourly Pension Plan.

                  Effective January 1, 1993, the Stanadyne Automotive Corp.
Hartford Hourly Pension Plan was restated in its entirety and renamed the
Stanadyne Automotive Corp. Hourly Pension Plan. The Northern Trust Company
Master Trust (the "Trust") had previously been adopted by the Company and formed
a part of the Plan.

                  Effective December 31, 1994, the Stanadyne Automotive Corp.
Hourly Pension Plan was merged with the Stanadyne Automotive Corp. Salaried
Pension Plan, as embodied herein and named the Stanadyne Automotive Corp.
Pension Plan.

                  Effective January 1, 2002, except to the extent the applicable
laws and amendments incorporated herein and referenced on the cover page provide
for an earlier effective date, the Stanadyne Automotive Corp. Pension Plan was
amended and restated in its entirety and renamed the Stanadyne Corporation
Pension Plan (the "Plan").

                  It is intended that the Plan, as embodied herein, will meet
the requirements for qualification under Section 401(a) of the Internal Revenue
Code of 1986 (the "Code") as amended
<PAGE>
from time to time, that the Plan will be construed in such a manner as to effect
this intention and that the Trust will be exempt from taxation as provided under
Section 501(a) of the Code. As such, the Plan reflects the necessary provisions
of applicable federal statutes and regulations.

                  Except as otherwise specifically and expressly provided
herein, a former Employee's eligibility for and amount of benefits, if any,
payable to or on behalf of such former Employee, shall be determined in
accordance with the provisions of the Plan covering such Employee as in effect
on his termination date. The benefit payable to or on behalf of a Participant
included under the Plan in accordance with the following provisions shall not be
affected by the terms of any amendment to the Plan adopted after such
Participant's employment terminates, unless the amendment expressly provides
otherwise.

                                       2
<PAGE>
                                    ARTICLE I

                                   DEFINITIONS

1.1      "Accrued Benefit" shall mean the amount of monthly retirement income
         payable as a life annuity beginning on the Participant's Normal
         Retirement Date, or if applicable, his Postponed Retirement Date as
         determined in accordance with the formula in Article III as of the date
         of calculation.

1.2      "Actuarial Equivalent" shall mean a benefit of equivalent value to
         another benefit. For purposes of converting a life annuity to any of
         the Contingent Annuitant payment forms described in Sections 8.1(b)(i)
         and 8.3, the table included as Appendix E to the Plan shall be used.
         For lump sum payments made pursuant to Section 13.6, the assumptions
         used to determine an Actuarial Equivalent shall be the Applicable
         Interest Rate as defined in Section 417(e)(3) of the Code as determined
         on the first day of the Plan Year, and the mortality table shall be the
         table set forth in Revenue Ruling 95-6 (1995-4 I.R.B. 22). For purposes
         of the preceding sentence, the Applicable Interest Rate shall mean the
         annual interest rate on 30-year Treasury Securities as published by the
         Commissioner for the fourth calendar month immediately preceding the
         first day of each Plan Year that contains the benefit commencement
         date. Except as explicitly noted otherwise, for purposes of determining
         all other Actuarial Equivalents under the Plan, the interest rate shall
         be 8% and the mortality table shall be the 1971 Group Annuity Mortality
         Table for males.
<PAGE>
1.3      "Actuary" shall mean an individual Actuary or firm of Actuaries
         selected from time to time by the Committee which meets the standards
         and qualifications established by the Joint Board for the Enrollment of
         Actuaries.

1.4      "Affiliate" shall mean any corporation which is a member of a
         controlled group of corporations (as defined in Section 414(b) of the
         Code) which includes the Company; any trade or business (whether or not
         incorporated) which is under common control (as defined in Section
         414(c) of the Code) with the Company; any organization (whether or not
         incorporated) which is a member of an affiliated service group (as
         defined in Section 414(m) of the Code) which includes the Company; and
         any other entity required to be aggregated with the Company pursuant to
         regulations under Section 414(o) of the Code.

1.5      "Annuity Starting Date" shall mean:

         (a)      the first day of the first period for which a benefit is
                  payable to the Participant under the Plan as an annuity, (or
                  to the Spouse in the case of death before Plan benefits
                  commence), or

         (b)      in the case of a benefit not payable in the form of an
                  annuity, the first day on which all events have occurred which
                  entitle the Participant (or Spouse) to such benefit.

         For purposes of Section 402(f) of the Code and Section 411(a)(11) of
         the Code, with respect to a benefit not payable in the form of an
         annuity, the Annuity Starting Date is the date on which a benefit is
         distributed.

1.6      "Authorized Leave of Absence" shall mean any absence authorized by the
         Company under the Company's standard personnel practices, provided that
         all persons under similar circumstances are treated alike in the
         granting of such Authorized Leaves of Absence, and

                                       2
<PAGE>
         provided further that the Participant returns or retires within the
         period specified in the Authorized Leave of Absence. An absence due to
         service in the Armed Forces of the United States shall be considered an
         Authorized Leave of Absence provided that the Employee complies with
         all of the requirements of federal law in order to be entitled to
         reemployment and provided further that the Employee returns to
         employment with the Company within the period provided by such law. In
         addition, the phrase "Authorized Leave of Absence" shall mean any
         period of leave under the Family and Medical Leave Act of 1993.

1.7      "Beneficiary" shall mean the Employee's Spouse.

1.8      "Board" shall mean the Board of Directors of Stanadyne Corporation

1.9      "Break in Service" shall mean a calendar year in which an Employee has
         fewer than 501 Hours of Service.

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

1.11     "Committee" shall mean the persons appointed pursuant to Article IX to
         administer the Plan.

1.12     "Company" shall mean the Stanadyne Corporation, a corporation organized
         and existing under the laws of the state of Delaware, or its successor
         or successors.

1.13     "Contingent Annuitant" shall mean the Employee's Spouse.

1.14     "Credited Service" shall mean the Participant's period of employment
         considered in accordance with Section 2.4 in the determination of the
         amount of benefits payable to or on behalf of the Participant.

1.15     "Direct Rollover" means a payment by the Plan to the Eligible
         Retirement Plan specified by the Distributee.

                                       3
<PAGE>
1.16     "Disability" shall mean a condition defined in the Appendices as
         applicable to the group of Employees to which the individual belongs on
         the date such Disability is incurred.

1.17     "Distributee" means an Employee or former Employee. In addition, the
         Employee's or former Employee's surviving Spouse and the Employee's or
         former Employee's Spouse or former Spouse who is the alternate payee
         under a qualified domestic relations order as defined in Section 414(p)
         of the Code are Distributees with respect to the interest of a Spouse
         or former Spouse.

1.18     "Early Retirement Date" shall mean the date on which a Participant
         becomes eligible to retire with an early retirement benefit under the
         Plan, as determined in accordance with Article IV.

1.19     "Eligible Employee" shall mean any person who is (a) receiving
         remuneration for personal services rendered to the Company (or would be
         receiving remuneration except for an Authorized Leave of Absence), (b)
         is included in (i) the payroll commonly referred to as the Windsor
         Factory Hourly Payroll, (ii) the payroll commonly referred to as the
         Jacksonville Factory Hourly Payroll, (iii) the payroll commonly
         referred to as the Washington Factory Hourly Payroll, or (iv) the
         salaried payroll of a unit listed in Appendix D-2, (c) is not a leased
         employee as described in Section 414(n)(2) of the Code, and (d) is not
         a nonresident alien who received no earned income from the Company
         which constitutes income from United States sources.

1.20     "Eligible Retirement Plan" shall mean an individual retirement account
         described in Section 408(a) of the Code, an individual retirement
         annuity described in Section 408(b) of the Code, an annuity plan
         described in Section 403(a) of the Code, or a plan described in Section
         401(a) of the Code that accepts the Distributee's Eligible Rollover
         Distribution. However, in

                                       4
<PAGE>
         the case of an Eligible Rollover Distribution to a surviving Spouse, an
         Eligible Retirement Plan is an individual retirement account or
         individual retirement annuity.

1.21     "Eligible Rollover Distribution" means any distribution of all or any
         portion of the balance to the credit of the Distributee, except that an
         Eligible Rollover Distribution does not include 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 and the Distributee's designated Beneficiary, or for a
         specified period of ten years or more, any distribution to the extent
         such distribution is required under Section 401(a)(9) of the Code, and
         the portion of any distribution that is not includible in gross income
         (determined without regard to the exclusion for net unrealized
         appreciation with respect to employer securities).

1.22     "Employee" shall mean a common-law employee of the Company or an
         Affiliate excluding an individual who is designated, or otherwise
         determined to be, an independent contractor, regardless of whether such
         individual is ultimately determined to be an employee pursuant to the
         Code or any other applicable law. A leased employee shall only be
         considered an Employee to the extent required under Section 13.8.

1.23     "Fiduciary" shall mean any person who exercises any discretionary
         authority or discretionary control respecting the management of the
         Plan, assets held under the Plan, or disposition of Plan assets; who
         renders investment advice for a fee or other compensation, direct or
         indirect, with respect to assets held under the Plan or has any
         authority or responsibility to do so; or who has any discretionary
         authority or discretionary responsibility in the administration of the
         Plan. Any person who exercises authority or has responsibility of a
         fiduciary nature as described above shall be considered a Fiduciary
         under the Plan.

                                       5
<PAGE>
1.24     "Fund" or "Trust Fund" shall mean the cash and other investments, and
         income attributable thereto, held and administered by the Trustee in
         accordance with the Trust.

1.25     "Hour of Service" shall mean:

         (a)      Each hour for which an Employee is directly or indirectly paid
                  or entitled to payment by the Company or by an Affiliate for
                  the performance of duties, including periods of vacation and
                  holidays;

         (b)      Each hour for which an Employee is directly or indirectly paid
                  or entitled to payment by the Company or an Affiliate
                  (including payments made or due from a trust fund or insurer
                  to which the Company or Affiliate contributes or pays
                  premiums) on account of a period of time during which no
                  duties are performed (irrespective of whether the employment
                  relationship has terminated) due to illness, incapacity,
                  Disability, layoff, jury duty, military duty, or leave of
                  absence, provided that:

                  (i)  No more than 501 Hours of Service shall be credited under
                       this paragraph (b) to an Employee on account of any
                       single continuous period during which the Employee
                       performs no duties; and

                  (ii) Hours of Service shall not be credited under this
                       paragraph (b) to an Employee for a payment which solely
                       reimburses the Employee for medically related expenses
                       incurred by the Employee or which is made or due under a
                       plan maintained solely for the purpose of complying with
                       applicable workers' compensation, unemployment
                       compensation or Disability insurance laws;

         (c)      Each hour not already included under (a) or (b) above for
                  which back pay, irrespective of mitigation of damages, is
                  either awarded or agreed to by the Company

                                       6
<PAGE>
                  or an Affiliate, provided that crediting of Hours of Service
                  under this subparagraph (c) with respect to periods described
                  in (b) above shall be subject to the limitations therein set
                  forth; and

         (d)      Each hour for which an Employee is absent on account of
                  illness, incapacity, Disability, jury duty, military duty,
                  leave of absence, or layoff (for a period of up to six months)
                  and is not directly or indirectly paid or entitled to payment
                  by the Company or by an Affiliate; provided that the Employee
                  returns to work immediately upon the expiration of such period
                  of absence or, in the case of military duty, within 90 days
                  after the date on which he is first entitled to be released
                  from active duty, or if later, within the time prescribed by
                  law for the protection of employment or pension rights.

         (e)      An Employee shall be credited with up to 501 Hours of Service
                  for each single continuous period in which no duties are
                  performed on account of a period described in subparagraphs
                  (a), (b), (c), or (d) above. The number of Hours of Service to
                  be credited under subparagraphs (a), (b), (c), or (d) above on
                  account of a period during which an Employee performs no
                  duties, and the computation periods to which Hours of Service
                  shall be credited under paragraph (a), (b), (c), or (d) above,
                  shall be determined by the Committee in accordance with
                  Section 2530.200b-2(b) and (c) of the Regulations of the U.S.
                  Department of Labor. No duplicate Hours of Service shall be
                  credited for any single period.

                                       7
<PAGE>
                  An Employee who is absent from work due to a "maternity or
                  paternity leave" which commenced on or after January 1, 1985
                  shall be credited with 501 Hours of Service during the first
                  Plan Year in which he would have otherwise worked less than
                  501 Hours of Service because of such leave. For purposes of
                  this Plan, an absence from work due to "maternity or paternity
                  leave" means an absence (i) by reason of the pregnancy of the
                  individual, (ii) by reason of a birth of a child of the
                  individual, (iii) by reason of the placement of a child with
                  the individual in connection with the adoption of such child
                  by such individual, or (iv) for purposes of caring for such
                  child for a period beginning immediately following such birth
                  or placement.

1.26     "Normal Retirement Age" shall mean the day a Participant attains age 65
         for an individual who was a member of either the Stanadyne Inc. Diesel
         Systems Division Hartford Hourly Employees' Pension Plan or the
         Stanadyne, Inc. Salaried Pension Plan as it existed on February 9,
         1989, on December 31, 1987. For each other Participant, Normal
         Retirement Age shall mean the later of the Participant's 65th birthday
         or the fifth anniversary of the date he became a Participant in the
         Plan, the Prior Hourly Plan, the Prior Salaried Plan, the Prior
         Washington Plan or the Prior Jacksonville Plan.

1.27     "Normal Retirement Date" shall mean the date on which a Participant
         becomes eligible to retire with a normal retirement benefit under the
         Plan, as determined in accordance with Section 3.1.

1.28     "Participant" shall mean an Eligible Employee who meets the eligibility
         requirements set forth in Section 2.1 for participation in the Plan.

                                       8
<PAGE>
1.29     "Plan" shall mean the Stanadyne Corporation Pension Plan as set forth
         in this document and as it may be amended from time to time.

1.30     "Plan Year" shall mean each 12-month period thereafter beginning on
         January 1 and ending on the following December 31.

1.31     "Postponed Retirement Date" shall mean the date after his Normal
         Retirement Date on which a Participant retires with a postponed
         retirement benefit under the Plan, as determined in accordance with
         Article V.

1.32     "Prior Employer" shall mean Stanadyne, Inc.

1.33     "Prior Hartford Plan" shall mean the Stanadyne Automotive Corp.
         Hartford Hourly Pension as in effect on December 31, 1990.

1.34     "Prior Hourly Plan" shall mean the Stanadyne Automotive Corp. Hourly
         Pension Plan as in effect on December 30, 1994.

1.35     "Prior Jacksonville Plan" shall mean the Stanadyne Automotive Corp.
         Jacksonville Hourly Pension Plan as in effect on December 31, 1990.

1.36     "Prior Salaried Plan" shall mean the Stanadyne Automotive Corp.
         Salaried Pension Plan as in effect on December 30, 1994.

1.37     "Prior Washington Plan" shall mean the Stanadyne Automotive Corp.
         Washington Hourly Pension Plan as in effect on December 31, 1991.

1.38     "Spouse" shall mean the legal Spouse of a Participant to whom he is
         married on his Annuity Starting Date. However, if the Participant
         should die prior to the Annuity Starting Date, then Spouse shall mean
         the husband or wife to whom the Participant has been married throughout
         the one-year period preceding the date of his death. Whether a Spouse
         is a legal Spouse shall

                                       9
<PAGE>
         be determined under the laws of the jurisdiction in which the
         Participant was domiciled at the time the putative marriage was entered
         into.

1.39     "Trust" shall mean the Trust created under the Northern Trust Company
         Master Trust Agreement.

1.40     "Trustee" shall mean the Northern Trust Company and any successor
         Trustee(s) duly appointed by the Board.

1.41     "Years of Credited Service" shall mean those years counted as Credited
         Service pursuant to Section 2.4.

1.42     "Years of Service" shall mean the period of an Employee's employment
         described in Section 2.3 for purposes of determining vesting in Plan
         benefits and eligibility for Early or Disability Retirement. However,
         with respect to Participants covered by Appendix B, (individuals on the
         Jacksonville Hourly Payroll), Years of Service shall not include any
         employment periods prior to January 1, 1977. With respect to
         Participants covered by Appendix C (individuals on the Washington
         Hourly Payroll), Years of Service shall not include any employment
         periods prior to January 1, 1979.

         The masculine pronouns wherever used shall also include the feminine
         pronouns and the singular shall include the plural.

                                       10
<PAGE>
                                   ARTICLE II

                            SERVICE AND PARTICIPATION

2.1      Eligibility Requirements.

         (a)      Each Eligible Employee on December 31, 1994 who was a
                  participant under the Prior Hourly Pension Plan or the Prior
                  Salaried Pension Plan on December 30, 1994 shall be a
                  Participant of the Plan on December 31, 1994.

         (b)      Each other Employee shall become a Participant in the Plan on
                  the earlier of the following dates, providing he is then an
                  Eligible Employee:

                  (i)      the date his employment commences in a work pattern
                           expected to result in at least 1,000 Hours of Service
                           in a consecutive 12-month period beginning on his
                           date of employment, and

                  (ii)     the date as of which he has completed 1,000 Hours of
                           Service in one of the following 12 consecutive month
                           periods:

                           (A)      the 12 consecutive months following his date
                                    of employment with the Company or an
                                    Affiliate, or

                           (B)      any calendar year after his date of
                                    employment.

(c)      An individual who becomes an Eligible Employee after having completed
         the requirements under subparagraph (b) shall become a Participant on
         the date he first meets the requirements to be an Eligible Employee.

(d)      Leased employees as described in Section 13.8 shall not be eligible to
         participate in the Plan.

                                       11
<PAGE>
2.2      Notification of Employees. Each Eligible Employee who meets the
         requirements for participation in the Plan will be notified by the
         Company of the provisions of the Plan and of his right to participate.

2.3      Years of Service. Years of Service shall determine a Participant's
         eligibility for retirement benefits under the Plan, except that upon
         reaching his Normal Retirement Age, he shall automatically be fully
         vested in his Accrued Benefit irrespective of his Years of Service.
         Subject to the Break in Service rules under Sections 2.3(e) and (f) and
         the transfer provisions of Section 2.6, Years of Service shall be
         accumulated as follows:

         (a)      on December 31, 1994, an Employee shall be credited hereunder
                  with the Years of Service which had been credited to such
                  individual under the provisions of the Prior Hourly Plan or
                  the Prior Salaried Plan, as applicable on December 30, 1994.
                  Except as provided in Section 1.42, the Prior Hartford Plan,
                  Prior Jacksonville Plan and the Prior Washington Plan provided
                  that all service rendered to the Prior Employer shall count in
                  the determination of Years of Service hereunder for an
                  individual who became an Employee on February 10, 1989. In no
                  event shall an Employee receive duplicate service credit for
                  any period of employment;

         (b)      for periods not already counted in (a) above, one Year of
                  Service shall be credited to an Employee for any calendar year
                  in which he has 1,000 or more Hours of Service;

         (c)      for periods not already counted in (a) or (b) above, a
                  fractional Year of Service calculated to the nearest 1/12th
                  shall be credited to an Employee for each calendar year in
                  which he has less than 1,000 Hours of Service;

         (d)      the determination of Years and fractional Years of Service
                  shall include:

                                       12
<PAGE>
                  (i)      the first six months of a period of absence due to
                           sick leave, and

                  (ii)     a period of Authorized Leave of Absence provided that
                           the Employee returns to employment within the period
                           of Authorized Leave of Absence, and

                  (iii)    the first six months of a Disability period and
                           thereafter, the portion of such continuing Disability
                           period which does not exceed the Participant's Years
                           of Service on the date the Disability began.

         (e)      if an Employee incurs a number of consecutive Breaks in
                  Service which exceeds the greater of five (5) or the number of
                  his Years of Service before such Breaks in Service, he shall
                  lose his previously accumulated Years of Service unless, prior
                  to his initial Break in Service, he was vested in retirement
                  benefits under a defined benefit plan maintained by the Prior
                  Employer or under this Plan in accordance with Section 6.2.

                  Prior Years of Service shall only be restored under this
                  Section 2.3(e) after the Employee has completed 1,000 Hours of
                  Service in a 12-month period following his Break in Service;

         (f)      if an individual:

                  (i)      was employed by the Prior Employer,

                  (ii)     terminated that employment before February 10, 1989,
                           and

                  (iii)    becomes an Employee of Stanadyne Automotive Corp.
                           after February 10, 1989, then upon employment with
                           the Company or an Affiliate, his prior Years of
                           Service shall be determined under subparagraph (a)
                           above, subject to subparagraph (e), as follows:

                                       13
<PAGE>
                           (A)      To determine whether or not prior Years of
                                    Service shall be restored, the individual's
                                    Break in Service period shall be measured
                                    from the calendar year in which he
                                    terminated employment with the Prior
                                    Employer.

                           (B)      If the individual completed more than 500
                                    Hours of Service with the Prior Employer in
                                    the calendar year of termination, the Break
                                    in Service period shall be measured from the
                                    first calendar year after termination of
                                    employment with the Prior Employer in which
                                    the individual completes less than 501 Hours
                                    of Service. For purposes of this paragraph,
                                    Hours of Service shall be deemed to include
                                    such hours as performed by the individual
                                    for the Prior Employer.

                           Prior Years of Service shall only be restored under
                           this Section 2.3(f) after the Employee has completed
                           1,000 Hours of Service in a 12-month period following
                           his Break in Service.

2.4      Years of Credited Service:

         (a)      Years of Credited Service are determined in accordance with
                  the Appendix that covers the Employee group to which the
                  individual belongs.

         (b)      if an Employee incurs a number of consecutive Breaks in
                  Service which exceeds the greater of five (5) or the number of
                  his Years of Service before such Breaks in Service, he shall
                  lose his previously accumulated Years of Credited Service
                  unless, prior to his initial Break in Service, he was vested
                  in retirement benefits under a

                                       14
<PAGE>
                  defined benefit plan maintained by the Prior Employer or under
                  this Plan in accordance with Section 6.2.

                  Prior Years of Credited Service shall only be restored under
                  this Section 2.4(b) after the Employee has completed 1,000
                  Hours of Service in a 12-month period following his Break in
                  Service.

2.5      Reemployment. Subject to Sections 2.3 and 2.4, a Participant who
         terminates employment with the Company shall receive no additional
         Years of Service or Credited Service. Termination of employment may
         have resulted from retirement, death, voluntary or involuntary
         termination of employment, unauthorized absence, or by failure to
         return to active employment with the Company by the date on which the
         Authorized Leave of Absence expired.

         The following rules shall apply if an Employee who has had a Break in
Service is subsequently reemployed for at least 1,000 hours during a 12-month
period:

         (a)      if the Employee was not eligible for retirement benefits under
                  the Prior Hourly Plan, Prior Salaried Plan, or a defined
                  benefit plan maintained by the Prior Employer, then upon
                  reemployment after a Break in Service, he shall be treated as
                  a new Employee under the Plan.

                  Prior Years of Service and Credited Service shall be restored
                  if applicable under Sections 2.3(e), 2.3(f) and 2.4;

         (b)      if a former Employee who was not eligible for retirement
                  benefits under a defined benefit plan of the Prior Employer or
                  under this Plan pursuant to Section 6.2 returns to employment
                  with the Company or an Affiliate prior to incurring a Break in

                                       15
<PAGE>
                  Service, he shall become a Participant on the date he first
                  meets the requirements of Section 2. 1. For this purpose, all
                  his Hours of Service prior to his termination of employment
                  shall count in the determination of eligibility. His Years of
                  Service and Credited Service before his termination shall be
                  added to any Years of Service and Credited Service accumulated
                  during subsequent employment;

         (c)      if the Employee was eligible for retirement benefits under any
                  provision of the Plan or a defined benefit plan of the Prior
                  Employer or the Prior Hartford Plan, Prior Jacksonville Plan
                  or Prior Washington Plan, but such benefits were not yet
                  payable to him, upon reemployment he shall become a
                  Participant, provided he is then an Eligible Employee. His
                  Years of Service and Credited Service before his termination
                  shall be added to any Years of Service and Credited Service
                  accumulated during subsequent employment;

         (d)      if the Employee was eligible for retirement benefits under any
                  provision of the Plan, a defined benefit plan of the Prior
                  Employer, the Prior Hartford Plan, Prior Jacksonville Plan or
                  Prior Washington Plan and such benefits had become payable to
                  him,

                  (i)      his benefit payments from the Plan, if applicable,
                           shall be suspended upon proper notification, during
                           any month in which he is credited with 40 or more
                           Hours of Service unless Section 8.5(a) applies. Such
                           benefits shall be resumed on the first day of the
                           month following the month in which he completes less
                           than 40 Hours of Service, or if earlier, as required
                           pursuant to Section 8.5(a);

                                    16

<PAGE>
                  (ii)     he shall be eligible for additional Years of Service
                           and Credited Service as a result of his reemployment
                           in accordance with the provisions of the Plan, but
                           any retirement benefit subsequently paid shall be
                           reduced to reflect the Actuarial Equivalent of the
                           benefits previously received with the exception that
                           Plan payments previously received due to Disability
                           shall not reduce subsequent retirement benefits; and

                  (iii)    if he shall die during the period of subsequent
                           employment, retirement income shall be payable only
                           in accordance with the provisions of Article V and
                           Article VIII and shall be reduced to reflect the
                           Actuarial Equivalent of the retirement benefits
                           previously paid with the exception that Plan payments
                           previously received due to Disability shall not
                           reduce subsequent retirement benefits;

         (e)      if an Employee has a Break in Service and his prior Credited
                  Service is subsequently reinstated in accordance with the
                  provisions of this Section 2.5 and Section 2.4, then his
                  retirement income, if any, based on his Years of Service and
                  Credited Service related to employment prior to the Break in
                  Service shall be based upon the Plan, Prior Hartford Plan,
                  Prior Jacksonville Plan, or Prior Washington Plan, as in
                  effect when his Break in Service commenced, and his retirement
                  income, if any, related to employment after the Break in
                  Service shall be based upon the Plan in effect on his
                  subsequent retirement or termination of employment; and

         (f)      if an Employee changes from employment with the Company to
                  employment with an Affiliate, he shall not have a Break in
                  Service.

                                       17
<PAGE>
2.6      Transfers. Any individual who ceases to be an Eligible Employee by
         reason of a transfer to an ineligible class or to employment with an
         Affiliate, either prior to or subsequent to commencement of his
         participation in this Plan, shall be credited with Years of Service
         during such period of employment pursuant to Sections 2.3 and 2.5. All
         his Hours of Service shall count in determining his eligibility to
         participate in the Plan under Section 2.1 at any later date if he
         becomes an Eligible Employee once again. If he was a Participant in
         this Plan prior to transfer, he shall be entitled only to benefits
         under the provisions of the Plan as in effect while he is eligible to
         participate in the Plan. Credited Service shall only be earned for
         periods during which the Employee is eligible to participate in the
         Plan except as provided in Section 2.4.

                                       18
<PAGE>
                                   ARTICLE III

               NORMAL RETIREMENT DATE AND NORMAL RETIREMENT INCOME

3.1      Normal Retirement Date. For a participant who was a member of the
         Stanadyne, Inc. Salaried Pension Plan as it existed on February 8,
         1989, as of December 31, 1987, the Normal Retirement Date is the first
         day of the month coincident with or next following the Participant's
         65th birthday. For each other Participant, the Normal Retirement Date
         is the first day of the month next following the month in which the
         Participant attains Normal Retirement Age.

3.2      Normal Retirement Income. A Participant who retires on his Normal
         Retirement Date will be entitled to receive a monthly retirement income
         on the life annuity basis (described in Section 8.4) equal to the
         amount determined in the Appendix applicable to the Employee group to
         which the Participant belongs. If a Participant transfers among
         Employee groups covered by this Plan, his benefit shall be the sum of
         the amounts accrued for each discrete period of Credited Service. For
         those Participants who have incurred a Break in Service, the retirement
         income payable to such Participant shall be subject to Section 2.5(e).
         The Participant's annual retirement income may be subject to a
         reduction if a form of payment other than a life annuity is elected.

3.3      Maximum Benefit. Effective January 1, 1987, and notwithstanding any
         other provision of the Plan to the contrary, in no event may a
         Participant's annual retirement benefit under the Plan and any other
         defined benefit pension plan of the Company or an Affiliate exceed the
         lesser of (a) or (b) below; provided, however, for Plan Years beginning
         after December 31,

                                       19
<PAGE>
         1999 a Participant's annual retirement benefit under the Plan and any
         other defined benefit pension plan of the Company or an Affiliate shall
         not exceed (a) below.

         (a)      The lesser of (i) or (ii) below, but subject to subparagraphs
                  (iii) through (x) below:

                  (i)      100% of his average compensation (as defined in
                           Section 415 of the Code and Regulation Section
                           1.415-2(d)(2)(3) (including for Plan Years beginning
                           after December 31, 1997, elective deferrals as
                           defined in Section 402(g)(3) of the Code and salary
                           reduction contributions of the Participant not
                           includible in his or her gross income by reason of
                           Section 125 or Section 132(f) of the Code) in the
                           three consecutive highest paid calendar years while a
                           Participant is in the Plan.

                  (ii)     $90,000 (as adjusted for increases in the cost of
                           living as provided in rules and regulations adopted
                           by the Secretary of the Treasury).

                  (iii)    In the case where a benefit is payable prior to the
                           Participant's Social Security Retirement Age (defined
                           below), the dollar limitation in subparagraph (ii)
                           above shall be adjusted so that it is the Actuarial
                           Equivalent of an annual benefit of $90,000, beginning
                           at the Social Security Retirement Age, multiplied by
                           an adjustment factor, as prescribed by the Secretary
                           of the Treasury. The adjustment provided for in the
                           preceding sentence shall be made in such manner as
                           the Secretary of the Treasury may prescribe, which is
                           consistent with the reduction for old-age insurance
                           benefits commencing before the Social Security
                           Retirement Age under the Social Security Act. For
                           purposes of determining Actuarial Equivalence
                           hereunder, the interest

                                       20
<PAGE>
                           assumption shall not be less than the greater of 5%
                           per year or the underlying rate specified in the
                           Appendix applicable to the Employee for determining
                           the reduction in payments for Early Retirement, and
                           the mortality table shall be set forth in Revenue
                           Ruling 95-6.

                  (iv)     In the case where a benefit commences after a
                           Participant has attained Social Security Retirement
                           Age, the dollar limitation in subparagraph (ii) above
                           shall be adjusted so that it is the Actuarial
                           Equivalent of an annual benefit of $90,000 beginning
                           at the Social Security Retirement Age, multiplied by
                           an adjustment factor as prescribed by the Secretary
                           of the Treasury. For purposes of determining
                           actuarial equivalence hereunder, the interest
                           assumption shall not be greater than the lesser of 5%
                           per year or the rate specified in Section 1.2, and
                           the mortality table shall be the table set forth in
                           Revenue Ruling 95-6.

                  (v)      If a Participant has completed less than ten years of
                           Plan participation, the Participant's Accrued Benefit
                           shall not exceed the dollar limit in subparagraph
                           (ii) above as adjusted by multiplying such amount by
                           a fraction, the numerator of which is the
                           Participant's number of years (or part thereof of
                           participation, and the denominator of which is ten.

                  (vi)     If a Participant has completed less than ten Years of
                           Service, the limitations described in Sections
                           415(b)(1)(B), 415(b)(4), and 415(e) of the Code shall
                           be adjusted by multiplying such amounts by a
                           fraction, the numerator of

                                       21
<PAGE>
                           which is the Participant's number of Years of
                           Service, or part thereof, and the denominator of
                           which is ten.

                  (vii)    In no event shall subparagraphs (v) and (vi) above
                           reduce the limitations provided under Sections
                           415(b)(1) and 415(b)(4) of the Code to an amount less
                           than one-tenth of the applicable limitation (as
                           determined without regard to this Section 3.3).

                  (viii)   Unless subsection (vi) applies to a Participant, the
                           limits of subsections (i) and (ii) above shall be
                           deemed met if:

                           (A)      the annual benefit payable to the
                                    Participant from this Plan and all other
                                    qualified defined benefit plans of the
                                    Company and its Affiliates does not exceed
                                    $10,000; and

                           (B)      for Plan Years beginning before December 31,
                                    1999, the individual has never participated
                                    in a qualified defined contribution plan
                                    sponsored by the Company or an Affiliate.

                  (ix)     Except in the case where a benefit is payable
                           pursuant to Section 8.1(b)(1), or pursuant to Section
                           8.3 with the Participant's Spouse as the Contingent
                           Annuitant, if a benefit is payable in a benefit form
                           other than a life annuity, the amount otherwise
                           determined under this subparagraph (a) shall be the
                           Actuarial Equivalent of the amount payable as a life
                           annuity. For this purpose, the interest rate
                           assumption shall not be less than the greater of the
                           Applicable Interest Rate as set forth in the second
                           and third sentences of

                                       22
<PAGE>
                           Section 1.2 or the rate specified in the last
                           sentence of Section 1.2, and the mortality table
                           shall be the mortality table set forth in Revenue
                           Ruling 95-6.

                  (x)      For purposes of this Section 3.3, Social Security
                           Retirement Age means the age specified under Section
                           415 of the Code for application to qualified defined
                           benefit plans.

         (b)      For Plan Years beginning before December 31, 1999, in the case
                  of a Participant who has participated in a defined
                  contribution plan maintained by the Company or an Affiliate,
                  the maximum permissible benefit hereunder shall be the product
                  of (a) one minus a fraction with a numerator equal to (i)
                  below and a denominator equal to (ii) below, and (b) the
                  lesser of 125% of the amount described in (a)(ii) and 140% of
                  the amount described in paragraph (a)(i), where (a)(i) is
                  equal to (i) below and (a)(ii) equals (ii) below:

                  (i)      the sum of the annual additions made to the
                           Participant's account under all defined contribution
                           plans maintained by the Company and its Affiliates,
                           where the annual additions are equal to the sum of
                           (a) Company contributions allocated to the Employee's
                           account, (b) any forfeitures allocated to the
                           Employee's account, (c) the portion of the Employee's
                           after-tax contributions made prior to January 1,
                           1987, that represented the lesser of one-half of such
                           contributions or the amount of such contributions in
                           excess of 6% of his compensation, (d) all Employee
                           after-tax contributions made after December 31, 1986
                           and (e) amounts described in Sections 415(1)(1) and
                           419(A)(d)(2) of the Code.

                                       23
<PAGE>
                  (ii)     the sum for each calendar year of the Participant's
                           employment with the Company and/or all Affiliates of
                           the lesser of (a) 1.4 multiplied by 25% of the
                           Participants' compensation for the calendar year, or
                           (b) 1.25 multiplied by $30,000, as adjusted
                           commencing in 1988 for increases in the cost of
                           living as provided under rules and regulations
                           adopted by the Secretary of the Treasury.

         For the purpose of this Section 3.3, an Affiliate shall be determined
by assuming the phrase "more than 50%" is substituted for the phrase "at least
80%" wherever it appears in Section 1563 of the Code, as it may be amended from
time to time.

3.4      Continuing Employment. The retirement of any Participant under this
         Article III shall not become effective while he is in the service of
         the Company or an Affiliate. If an Employee continues to work for the
         Company or an Affiliate beyond his Normal Retirement Date, the
         provisions of Article V and Section 8.5 shall be applicable.

                                       24
<PAGE>
                                   ARTICLE IV

                EARLY RETIREMENT DATE AND EARLY RETIREMENT INCOME

4.1      Early Retirement Date. A Participant may retire prior to his Normal
         Retirement Date on any day following his attainment of age 57 and his
         completion of 10 or more Years of Service.

                  The date a Participant elects to retire under this Section 4.1
         shall be his Early Retirement Date.

4.2      Early Retirement Income. A Participant who retires on an Early
         Retirement Date may elect in writing to receive either an immediate
         Early Retirement Income or a deferred retirement income as indicated
         herein. Early Retirement Income in the form of monthly payments from
         the Plan may commence, at the Participant's written election, on the
         first day of any calendar month coincident with or next following his
         Early Retirement Date. However, benefits hereunder must commence no
         later than the Participant's Normal Retirement Date. If paid prior to
         Normal Retirement Date, the Participant's Accrued Benefit shall be
         reduced as specified in the Appendix for the Employee group of which
         the Participant is a part.

                  For Participants who were former participants in the Prior
         Salaried Plan or who meet the definition under Section D.1 of Appendix
         D, Early Retirement Income is governed by the provisions of Appendix D.
         Such salaried Participant's Early Retirement Income shall be paid
         pursuant to Article VIII.

                                       25
<PAGE>
                                    ARTICLE V

            POSTPONED RETIREMENT DATE AND POSTPONED RETIREMENT INCOME

5.1      Postponed Retirement Date. The Postponed Retirement Date of a
         Participant will be the day of his actual retirement after his Normal
         Retirement Date.

5.2      Postponed Retirement Income.

         (a)      If a Participant attained age 70-1/2 prior to January 1, 1988,
                  or if his Postponed Retirement Date occurs during or prior to
                  the calendar year in which he attained age 70-1/2, his
                  Postponed Retirement Income will be his Accrued Benefit
                  calculated pursuant to Section 3.2 and the Appendix applicable
                  to such Participant as of his Postponed Retirement Date. The
                  Participant's Postponed Retirement Income will be subject to a
                  reduction if he elects payment in a form other than a life
                  annuity as described in Section 8.4.

         (b)      If a Participant's Postponed Retirement Date occurs after the
                  calendar year in which he attains age 70-1/2 and retirement
                  income will commence pursuant to Section 8.5(a), then his
                  retirement income shall be his Accrued Benefit which shall be
                  calculated under Section 3.2 and the Appendix applicable to
                  such Participant at the close of the Plan Year in which he
                  attains age 70-1/2. Such Accrued Benefit shall be recalculated
                  each Plan Year thereafter until his actual Postponed
                  Retirement Date. Each recalculation shall take into account:

                  (i)      his Years of Credited Service accrued to the end of
                           such Plan Year;

                                       26
<PAGE>
                  (ii)     the Actuarial Equivalent value of all Plan benefit
                           payments made to the Participant by the close of such
                           Plan Year pursuant to Section 8.5(a) and this
                           Section; and

                  (iii)    if applicable, his Average Monthly Earnings
                           determined at the end of such Plan Year.

         (c)      Any adjustment to the Participant's postponed retirement
                  benefits due to the commencement or non-commencement of
                  benefits pursuant to Section 8.5(a) shall be made in
                  accordance with regulations prescribed by the Secretary of the
                  Treasury under Section 401(a)(9) of the Code.

         (d)      Postponed Retirement Income hereunder shall commence to the
                  Participant upon the earlier of

                  (i)      his Postponed Retirement Date, or

                  (ii)     if required or, effective January 1, 1997, elected
                           pursuant to Section 8.5(a), the April 1 following the
                           calendar year in which he has attained age 70-1/2.

5.3      Death Prior to Postponed Retirement Date. If a Participant shall die
         after his Normal Retirement Date, but prior to retiring on his
         Postponed Retirement Date, his Spouse shall be entitled to benefits
         under the Plan in accordance with Article VII.

                                       27
<PAGE>
                                   ARTICLE VI

                            TERMINATION OF EMPLOYMENT

6.1      Non-Vested Termination. A Participant whose employment is terminated
         with the Company and all Affiliates prior to:

                  (a)      his attainment of Normal Retirement Age,

                  (b)      his completion of five Years of Service, and

                  (c)      the complete or partial termination of the Plan with
                           respect to such Participant, shall have no vested
                           interest in his Accrued Benefit and shall not be
                           entitled to receive any retirement income from the
                           Plan.

                  Upon the termination of employment of a Participant who has no
         vested right to his Accrued Benefit, the entire value of his vested
         benefit hereunder shall be deemed to be distributed to him. In the
         event such Participant is credited with an Hour of Service before
         incurring five consecutive Breaks in Service following his termination,
         his vested benefit previously deemed to be distributed hereunder will
         be deemed repaid to the Plan.

6.2      Vested Termination. A Participant shall have a nonforfeitable right to
         his Accrued Benefit upon the earliest of the following events:

                  (a)      his attainment of Normal Retirement Age,

                  (b)      his completion of five Years of Service,

                  (c)      the complete or partial termination of the Plan with
                           respect to such Participant, and

                                       28
<PAGE>
                  (d)      a specified event entitling a Participant to Plan
                           benefits but only to the extent provided in an
                           Appendix hereto.

                  A Participant whose employment is terminated with the Company
         and all Affiliates before his Early or Normal Retirement Date shall be
         entitled to receive a deferred amount of retirement income commencing
         on his Normal Retirement Date equal to his Accrued Benefit if he is
         otherwise vested under this Section 6.2. For purposes of determining
         such Accrued Benefit, only the provisions of the Plan in effect at the
         time of a Participant's termination of employment shall be considered.
         The Participant's retirement income shall be paid pursuant to Article
         VII.

6.3      Early Payment. In lieu of the deferred benefit described in Section
         6.2, a Participant who ceases to be an Employee and has met the
         requirements of Section 6.2 may elect to receive a reduced benefit
         commencing on the first day of any month between his 57th and 65th
         birthdays, provided that he gives notice in writing of such election to
         the Committee at least 60 days prior to the date on which the benefit
         is to commence. If the Participant elects to receive his retirement
         benefit before his Normal Retirement Date, the amount of the annual
         benefit on the life annuity basis shall be equal to his Accrued Benefit
         permanently reduced by .5%, multiplied by the number of months between
         his Annuity Starting Date and his Normal Retirement Date.

                                       29
<PAGE>
                                   ARTICLE VII

                          DEATH AND DISABILITY BENEFITS

7.1      Death Before An Annuity Starting Date. If a Participant who is vested
         in his Accrued Benefit pursuant to Article VI dies prior to his Annuity
         Starting Date, his surviving Spouse, if any, shall be entitled to a
         death benefit. The amount of such benefit and attendant election rights
         and procedures are described in the applicable Appendix covering the
         group of Employees to which the Participant last belonged.

7.2      Death Benefits After An Annuity Starting Date. After retirement income
         has commenced to be paid to a Participant, upon the Participant's
         subsequent death, benefits, if any, shall be payable to the
         Participant's surviving Spouse strictly in accordance with the form of
         benefit which had been in effect prior to the Participant's death,
         except as may be provided in an Appendix hereto.

7.3      Disability Benefits. Disability benefits may be provided under the Plan
         in certain circumstances as described in the applicable Appendix
         covering the group of Employees to which the Participant belongs at the
         time Disability is incurred.

7.4      Salaried Participant's Benefits. For Participants who were former
         participants under the Prior Salaried Plan or who meet the description
         in Section D.1 of Appendix D, preretirement death benefits are
         described in Appendix D.

                                       30
<PAGE>
                                  ARTICLE VIII

                         PAYMENT OF RETIREMENT BENEFITS

8.1      Payment of Retirement Benefits. The normal form of retirement income
         shall be as follows:

                  (a)      if the Actuarial Equivalent present value of a
                           benefit is $3,500 (effective for Plan Years
                           commencing after August 5, 1997, $5,000 or such
                           greater amount as permitted under the Code), or less,
                           prior to the Annuity Starting Date, a lump sum
                           distribution shall automatically be made pursuant to
                           Section 13.6.

                  (b)      if the Actuarial Equivalent present value of a
                           benefit is greater than $3,500 (effective for Plan
                           Years commencing after August 5, 1997, $5,000 or such
                           greater amount as permitted under the Code), then
                           unless a Participant elects an optional form of
                           retirement income in accordance with Section 8.2, the
                           following shall apply:

                           (i)      a Participant who has a Spouse on the
                                    Annuity Starting Date shall receive a
                                    reduced retirement income which shall be the
                                    Actuarial Equivalent of the life annuity
                                    (described in the following subparagraph
                                    (ii)). The benefit hereunder shall be
                                    payable monthly commencing on the first day
                                    of the month on or after the Participant's
                                    retirement, and if he shall die leaving such
                                    Spouse, continuing in one-half the reduced
                                    amount to the Spouse after the Participant
                                    dies and ending with the first day of the
                                    month in which the death of the Spouse
                                    occurs; and

                                       31
<PAGE>
                           (ii)     a Participant who does not have a Spouse on
                                    the Annuity Starting Date shall receive his
                                    Accrued Benefit, payable monthly, commencing
                                    on the first day of the month on or after
                                    his retirement and ending with the first day
                                    of the month in which his death occurs.

8.2      Election of Optional Forms. A Participant who has a Spouse on the
         selected Annuity Starting Date and is otherwise eligible to commence a
         benefit due to retirement may elect an optional form of payment
         available under Section 8.3 or 8.4. No other Participant may elect an
         optional form of payment. No less than 30 days, nor more than 90 days
         before the Annuity Starting Date, written information concerning the
         normal form of payment, the material features of optional forms of
         payment, the relative values of each, the circumstances under which the
         qualified joint and survivor annuity will be paid, and the relative
         financial impact of optional forms of payment shall be provided to such
         Participant. This information and the election forms used to effect
         retirement and selection of a benefit form shall be written in plain,
         non-technical language. A Participant may elect with spousal consent to
         (i) waive any requirement that the written explanation required under
         this Section be provided at least 30 days before the Annuity Starting
         Date, or (ii) waive the requirement that the election period be at
         least 30 days long, provided that, except to the extent applicable law
         provides less restrictive rules: (x) the distribution of benefits to
         the Participant does not commence before the expiration of the 7-day
         period beginning on the day after the day such written explanation is
         provided to the Participant; (y) the Participant is clearly informed
         that the Participant has the right to consider for at least thirty (30)
         days whether to receive payment of benefits in the form applicable
         under this Article or an optional form and whether to defer

                                       32
<PAGE>
         commencement of benefits, if applicable, and (z) no later than the
         Annuity Starting Date, the Participant waives the right to the thirty
         (30) day minimum election period and elects a form of benefit.
         Completed election forms must be returned to the Committee within the
         ninety day period ending on the designated Annuity Starting Date. In
         addition, the form will provide a description of the Participant's
         right to reinstate coverage under the normal form of benefit described
         in Section 8.1 prior to his Annuity Starting Date by revoking an
         election of an optional form of benefit. If a Participant files a
         subsequent election form, the prior form shall be of no effect.
         Election of optional forms of benefits under the following Sections
         8.3, and 8.4 shall be subject to the restrictions of Section 8.5. Once
         benefit payments have commenced no other option may be elected, changed
         or revoked.

         Subject to the provisions of Section 8.5, the Committee may defer a
         Participant's Annuity Starting Date for a period of up to 90 days if
         the Committee determines that the deferral is desirable in order to
         provide for an orderly election procedure or if it necessary to do so
         in order to comply with applicable regulations.

8.3      Contingent Annuitant Option.

         (a)      A Participant who has a Spouse and is otherwise eligible to
                  select an optional payment method pursuant to Section 8.2, may
                  elect, by submitting a written election form to the Committee,
                  to convert his retirement income to an Actuarial Equivalent,
                  payable during his life with the provision that after his
                  death, 100% or 75% of such reduced retirement income will be
                  payable to his Spouse during the remaining life of such
                  Spouse.

                                       33
<PAGE>
         (b)      Any such election whenever made may be altered, amended, or
                  revoked by the Participant prior to the date when the first
                  payment of his retirement income would normally be made,
                  provided the Participant gives notice in writing to the
                  Committee.

         (c)      If a Participant elects a Contingent Annuitant Option and his
                  Spouse dies before such Participant's benefit actually
                  commences and the Participant does not change his election in
                  accordance with Section 8.3(b), the Participant, after the
                  commencement of benefits, will receive the retirement income
                  otherwise payable to him in accordance with the provisions of
                  the Plan.

         (d)      If a Participant elects a Contingent Annuitant Option and dies
                  before reaching his Early Retirement Date, Normal Retirement
                  Date, or Postponed Retirement Date, his Spouse will not be
                  entitled to any rights or benefits under the Plan except in
                  accordance with Article VII.

         (e)      If a Participant elects a Contingent Annuitant Option and his
                  Spouse dies before the Participant, but after the Plan
                  benefits have commenced to such Participant, the Participant
                  will continue to receive the reduced retirement income payable
                  to him in accordance with such option.

8.4      Life Annuity Option. Subject to Section 8.5(b), a Participant who is
         eligible to select an optional payment method pursuant to Section 8.2
         may elect, by submitting an election form to the Committee, to have his
         retirement income payable during his life, and ending with the first
         day of the month in which his death occurs. Any such election, whenever
         made, may be altered, amended, or revoked by the Participant prior to
         the date when the first payment of his

                                       34
<PAGE>
         retirement income would normally be made, provided the Participant
         gives notice in writing to the Committee.

8.5      General Payment Provisions.

         (a)      Anything in the foregoing to the contrary notwithstanding, no
                  method of distribution of retirement income may be made under
                  this Article which would violate the requirements of Section
                  401(a)(9) and related regulations. Distribution to
                  Participants who attain age 70-1/2 in 1988 or 1989 must
                  commence by April 1, 1990. Distribution to Participants who
                  attain age 70-1/2 in 1990 through 1996 must commence by the
                  April 1 following the year in which age 70-1/2 is attained.
                  Distribution to Participants who attained age 70-1/2 prior to
                  January 1, 1988 may be deferred until the April 1 of the year
                  next following the close of the calendar year in which the
                  Participant retires; provided, however, that distribution of
                  benefits to an Employee who owns 5% or more of the outstanding
                  stock of the Company may not be deferred beyond the April 1
                  following the calendar year in which he attains age 70-1/2.
                  Distribution to Participants who attain age 70-1/2 in 1997 and
                  calendar years thereafter must commence by the April 1 of the
                  calendar year following the later of the calendar year in
                  which age 70-1/2 is attained or the Participant terminates
                  employment; provided, however, that distribution of benefits
                  to an Employee who owns 5% or more of the outstanding stock of
                  the Company may not be deferred beyond the April 1 following
                  the calendar year in which he attains age 70-1/2.
                  Notwithstanding the preceding sentence, any Participant (other
                  than an Employee who owns 5% or more of the outstanding stock
                  of the Company) attaining age 70-1/2

                                       35
<PAGE>
                  on or after January 1, 1997 may elect to commence receiving
                  his benefit distributions as of the April 1 following the
                  calendar year in which he attains age 70-1/2. Upon the death
                  of a Participant, any remaining interest he may have in the
                  Plan shall be distributed within the later of five years after
                  his death or after the death of his Beneficiary, unless
                  another form of payment was already in effect at the time of
                  his death, in which case benefits may be made in accordance
                  with such form of payment. If the Actuarial Equivalent value
                  of any Plan benefit is in excess of $3,500 (effective for Plan
                  Years commencing after August 5, 1997, $5,000 or such greater
                  amount as permitted under the Code), such benefit may not be
                  immediately distributed prior to the Participant's Normal
                  Retirement Date unless the Participant consents in writing.

         (b)      If a Participant who has a Spouse on the Annuity Starting Date
                  elects to receive his retirement income in the life annuity
                  form described in Section 8.4 then such election shall not
                  take effect unless either:

                  (i)      the Participant's Spouse consents in writing to the
                           election, such election designates a beneficiary
                           and/or optional form of payment which may not be
                           changed without further Spousal consent (or the
                           consent of the Spouse expressly permits designations
                           by the Participant without any requirement of further
                           Spousal consent), the Spouse's consent acknowledges
                           the effect of such election and is witnessed by a
                           notary public, or

                  (ii)     it is established to the satisfaction of the
                           Committee that the Participant has no Spouse, or that
                           the Spouse's consent cannot be obtained because the

                                       36
<PAGE>
                           Spouse cannot be located, or because of such other
                           circumstances as may be prescribed in regulations
                           issued pursuant to Section 417 of the Code.

         (c)      It is the intent of the Plan that all benefits be paid
                  promptly when due. In the absence of any inability to
                  determine the amount of benefit payable or the eligibility for
                  a benefit due to the lack of adequate information on date of
                  birth of Participant or Spouse or the date of marriage, the
                  first benefit shall be paid no later than the 60th day after
                  the close of the latest Plan Year in which:

                  (i) the Participant attains Normal Retirement Age;

                 (ii) the Participant reaches the 10th anniversary of his date
                      of commencement of participation in the Plan; or

                (iii) the Participant's termination of employment occurs.

8.6      Restrictions on Distributions Upon Plan Termination. This Section 8.6
         shall apply, upon the Plan's termination, to the amount of "Benefits"
         under this Plan for any Participant who is considered a "Restricted
         Participant". Such "Benefits" shall be limited to an amount equal to
         the payments that would have been made on behalf of the "Restricted
         Participant" under the life annuity form of payment described in
         Section 9.4 that is the Actuarial Equivalent of the "Restricted
         Participants" Accrued Benefit under the Plan.

                  For purposes of this Section, the term "Restricted
         Participant" shall mean all highly compensated Employees as defined in
         Code Section 414(q) and highly compensated former Employees. In any one
         Plan Year, the total number of Participants whose benefits are subject
         to restriction under this Section shall be limited by the Plan to a
         group of not less than 25

                                       37
<PAGE>
         highly compensated Employees and highly compensated former Employees
         with the greatest Compensation.

                  For purposes of this Section, the term "Benefit" shall include
         retirement income provided by the Plan plus loans in excess of the
         amounts set forth in Code Section 72(p)(2)(A), any periodic income, any
         withdrawal values payable to a living Participant and any death
         benefits not provided for by insurance on the Participant's life.

                  The limitations set forth in this Section shall not restrict
         the current payment of the full amount of retirement income provided by
         the Plan if:

         (a)      after payment to a "Restricted Participant" of all of the
                  "Benefits" described above, the value of Plan assets equals or
                  exceeds 110% of the value of current liabilities, as defined
                  in Code Section 412(1)(7),

         (b)      the value of the "Benefits" described above for a "Restricted
                  Participant" is less than 1% of the value of current
                  liabilities, as defined in Code Section 412(1)(7), or

         (c)      the value of the "Benefits" described above for a "Restricted
                  Participant" does not exceed $3,500 (effective for Plan Years
                  commencing after August 5, 1997, $5,000) or such higher amount
                  described in Code Section 411(a)(11)(A).

                                       38

<PAGE>
                                  ARTICLE IX
                           RETIREMENT PLAN COMMITTEE

9.1   Responsibility for Plan and Trust Administration. The Company shall have
      the sole authority to appoint and remove the Trustee, members of the
      Committee and any investment manager which may be provided for under the
      Trust, and to amend or terminate, in whole or in part this Plan or the
      Trust. The Company, through its Committee, shall have the responsibility
      for the administration of this Plan, which is specifically described in
      this Plan and the related Trust Agreement. The Company shall be the "named
      Fiduciary" for purposes of the Code and the Employee Retirement Income
      Security Act of 1974.

9.2   Retirement Plan Committee. The Plan shall be administered by the Company
      through a Committee consisting of at least three, but no more than five,
      members, to be appointed by and to serve at the pleasure of the Company.

9.3   Agents of the Committee. The Committee may delegate, at its discretion,
      any or all of its powers to such persons or agents as the Committee deems
      appropriate. The Committee may authorize one or more of their number, or
      any agent, to execute or deliver any instrument or to make any payment in
      their behalf. The Committee may employ and rely on the advice of counsel,
      accountants, the Actuary, and such other persons as may be necessary in
      administering the Plan.

9.4   Committee Procedures. The Committee may adopt such rules as it deems
      necessary, desirable, or appropriate. All rules and decisions of the
      Committee shall be uniformly and consistently applied to all Participants
      in similar circumstances. When making a

                                       39
<PAGE>
      determination or calculation, the Committee shall be entitled to rely upon
      information furnished by a Participant or Beneficiary, the Company, the
      legal counsel of the Company, the Actuary, or the Trustee. The Committee
      may act at a meeting or in writing without a meeting. The Committee shall
      elect one of its members as chairman, appoint a secretary, who may, or may
      not be a Committee member, and advise the Trustee of such actions in
      writing. The secretary shall keep a record of all meetings and forward all
      necessary communications to the Company, the Trustee or the Actuary. The
      Committee may adopt such bylaws and regulations as it deems desirable for
      the conduct of its affairs. All decisions of the Committee shall be made
      by the vote of the majority including actions in writing taken without a
      meeting.

9.5   Administrative Powers of the Committee. The Committee may from time to
      time establish rules for the administration of the Plan. Except as
      otherwise herein expressly provided, the Committee will have the exclusive
      right to interpret the Plan in its sole discretion and to decide any and
      all matters arising hereunder in the administration and operation of the
      Plan. Any interpretations or decisions so made by the Committee will be
      final, conclusive and binding on all persons having an interest in the
      Plan; provided, however, that all such interpretations and decisions will
      be applied in a uniform and nondiscriminatory manner to all Employees.
      Unless authorized pursuant to Section 12.1, the Committee shall have no
      right to modify any provision of the Plan as herein set forth; provided,
      however, that the Committee shall be specifically empowered to amend the
      Plan to provide for increases in the Normal Retirement benefit formula
      under Section 3.2.

                                       40
<PAGE>
9.6   Benefit Claims Procedures. All claims for benefits under the Plan shall be
      in writing and shall be submitted to the Committee member designated as
      Committee secretary by the Committee. If any application for payment of a
      benefit under the Plan shall be denied, the Committee shall notify the
      claimant within 90 days of such application setting forth the specific
      reasons therefor and shall afford such claimant a reasonable opportunity
      for a full and fair review of the decision denying his claim. If special
      circumstances require an extension of time for processing the claim, the
      claimant will be furnished with a written notice of the extension prior to
      the termination of the initial 90-day period. In no event shall such
      extension exceed a period of 90 days from the end of such initial period.
      The extension notice shall indicate the special circumstances requiring an
      extension of time and the date by which the Committee expects to render
      its decision.

      Notice of such denial shall set forth, in addition to the specific reasons
      for the denial, the following:

      (a)   reference to pertinent provisions of the Plan;

      (b)   such additional information as may be relevant to the denial of the
            claim;

      (c)   an explanation of the claims review procedure; and

      (d)   notice that such claimant may request the opportunity to review
            pertinent Plan documents and submit a statement of issues and
            comments.

            Within 60 days following notice of denial of his claim, upon written
request made by any claimant for a review of such denial to the Committee
Secretary, the Committee shall take appropriate steps to review its decision in
light of any further information or comments submitted by such claimant.

                                       41
<PAGE>
            The Committee shall render a decision within 60 days after the
claimant's request for review and shall advise said claimant in writing of its
decision on such review, specifying its reasons and identifying appropriate
provisions of the Plan. If special circumstances require an extension of time
for processing, a decision will be rendered as soon as possible, but not later
than 120 days after receipt of a request for the review. If the extension of
time for review is required because of special circumstances, written notice of
the extension shall be furnished to the claimant prior to the commencement of
the extension. If the decision is not furnished within such time, the claim
shall be deemed denied on review. The decision on review shall be in writing and
shall include specific reasons for the decision, written to the best of the
Committee's ability in a manner calculated to be understood by the claimant
without legal or actuarial counsel, as well as specific references to the
pertinent Plan provisions on which the decision is based.

9.7   Certification of Benefits. Subject to the provisions of this Plan, it will
      be the duty of the Committee to compute and certify to the Trustees the
      amount of retirement income payable hereunder to any Participant, Spouse,
      Beneficiary, or Contingent Annuitant.

9.8   Designation of Actuary. The Committee will designate an Actuary to make
      all actuarial calculations required in connection with the Plan.

9.9   Reliance on Reports and Certificates. The Company (or the Committee if so
      designated by the Company) will be entitled to rely conclusively upon all
      tables, valuations, certificates, opinions, and reports which may be
      furnished by the Actuary, or any accountant, controller, counsel, or other
      person who is employed or engaged for such purposes and shall exercise the
      authority and responsibility as it deems appropriate to comply with all of
      the legal and governmental regulations affecting this Plan.

                                       42
<PAGE>
9.10  Other Committee Powers and Duties: The Committee shall have such duties
      and powers as may be necessary to discharge its duties hereunder,
      including, but not by way of limitation, the following:

      (a)   to prescribe written procedures to be followed by Participants or
            Beneficiaries filing applications for benefits;

      (b)   to prepare and distribute, in such manner as the Committee
            determines to be appropriate, information explaining the Plan;

      (c)   to receive from the Company and from Participants such information
            as shall be necessary for the proper administration of the Plan;

      (d)   to furnish the Company, upon request, such annual reports with
            respect to the administration of the Plan as are reasonable and
            appropriate;

      (e)   to receive and review the periodic valuation of the Plan made by the
            Actuary;

      (f)   to receive, review and keep on file (as it deems convenient or
            proper) reports of benefit payments by the Trustee and reports of
            disbursements for expenses directed by the Committee; and

      (g)   to amend the Plan as provided under Section 9.5. The Committee shall
            have no power to add to, subtract from or modify any of the terms of
            the Plan, or to change or add to any benefits provided by the Plan,
            or to waive or fail to apply any requirements of eligibility for a
            benefit under the Plan, except as provided in Section 9.5.

9.11  Compensation of Committee. No member of the Committee who is an Employee
      will receive any compensation for his services as such, but will be
      reimbursed for reasonable

                                       43
<PAGE>
      expenses incident to the performance of such services. The reimbursement
      of expenses shall be paid in whole or in part by the Company, and any
      expenses not paid by the Company shall be paid by the Trustee out of the
      principal or income of the Trust Fund.

9.12  Member's Own Participation. No member of the Committee may act, vote, or
      otherwise influence a decision of the Committee specifically relating to
      his own participation under the Plan.

9.13  Liability of Committee Members. No member of the Committee will be liable
      for any act of omission or commission, except as provided by federal law.

9.14  Indemnification. The Board of Directors of the Company, the Committee and
      the individual members thereof shall be indemnified by the Company and not
      the Trust Fund against any and all expenses, costs, and liabilities
      arising by reason of any act or failure to act, unless such act or failure
      to act is judicially determined to be gross negligence or willful
      misconduct.

                                       44
<PAGE>
                                    ARTICLE X

                            FUNDING AND CONTRIBUTIONS

10.1  Establishment of Fund. The Fund shall be held and administered by the
      Trustee in accordance with the terms of the Trust. The Fund shall hold all
      contributions made by the Company and earnings and other income
      attributable thereto. All benefits payable under the Plan shall be
      disbursed from the Fund. The Board of Directors of the Company, in
      consultation with the Actuary and the Committee, shall have the right to
      change the method of funding, subject only to any contractual restrictions
      of the existing method of funding.

10.2  Contribution to the Fund; Plan Expenses. The Company will contribute to
      the Fund such sums and at such times as may be determined by the Board of
      Directors of the Company in accordance with the funding method and policy
      to be established by the Board which are consistent with Plan objectives.
      Forfeitures arising from termination of service will be used to reduce
      Company contributions and will not be applied to increase any benefits
      under the Plan. Except as provided hereunder and in Sections 10.3 and
      13.4, all contributions when made to the Fund and all property and funds
      of the Fund, including income from investments and from all other sources,
      will be retained for the exclusive benefit of Participants, Spouses,
      Beneficiaries, and Contingent Annuitants covered by the Plan and will be
      used to pay benefits provided hereunder. However, the Fund may be used to
      pay expenses of administration of the Plan and the Fund to the extent not
      paid by the Company.

10.3  Contributions Subject to Deductibility. Each Company contribution to the
      Plan is expressly conditioned on its deductibility and the continued
      qualification of the Plan under Code

                                       45
<PAGE>
      Section 401(a). If contributions are made by the Company by a mistake of
      fact or are deemed nondeductible, then, upon request by the Company, such
      contribution, reduced by investment losses thereon but not increased from
      any investment gains thereon, if any, shall be returned to the Company
      within one year of the date the contribution was made to the Fund or the
      date of the disallowance of such deduction, respectively.

10.4  Employee Contributions. No Employee will be required or permitted to make
      any contributions under this Plan.

                                       46
<PAGE>
                                   ARTICLE XI

                           FIDUCIARY RESPONSIBILITIES

11.1  Basic Responsibilities. Any Fiduciary under the Plan, whether specifically
      designated or not, shall:

      (a)   discharge all duties solely in the interest of Participants,
            Spouses, Beneficiaries, and Contingent Annuitants and for the
            exclusive purpose of providing benefits and defraying reasonable
            administrative expenses under the Plan;

      (b)   discharge his responsibilities with the care, skill, prudence, and
            diligence a prudent man would use in similar circumstances; and

      (c)   conform with the provisions of the Plan. No person who is ineligible
            by law will be permitted to serve as Fiduciary.

11.2  Actions of Fiduciaries.  Any Fiduciary:

      (a)   may serve in more than one fiduciary capacity with respect to the
            Plan;

      (b)   may employ one or more persons to render advice with regard to or to
            carry out any responsibility that such Fiduciary has under the Plan;
            and

      (c)   may rely upon any discretion, information, or action of any other
            Fiduciary, acting within the scope of its responsibilities under the
            Plan, as being proper under the Plan.

11.3  Fiduciary Liability. No Fiduciary shall be personally liable for any
      losses resulting from his action except as provided by federal law. Each
      Fiduciary shall have only the authority and duties which are specifically
      allocated to it, shall be responsible for the proper exercise of its

                                       47
<PAGE>
      own authority and duties, and shall not be responsible for any act or
      failure to act of any other Fiduciary, except as may be provided by
      applicable law.

                                       48
<PAGE>
                                   ARTICLE XII

                            AMENDMENT AND TERMINATION

12.1  Right to Amend or Terminate. The Company reserves the right to amend,
      modify, suspend, or terminate the Plan in whole or in part at any time.
      The Company may delegate its right to amend the Plan to the Committee. No
      amendment will be effective unless the Plan as so amended is for the
      exclusive benefit of Participants, Spouses, Contingent Annuitants, and
      Beneficiaries, and no amendment will deprive any Participant without his
      consent of any benefit to which he was theretofore entitled, provided that
      any and all amendments may be made which are necessary to maintain the
      qualification of the Plan under the Code and provided further that such
      amendments may be retroactively effective. The Plan shall not be
      automatically terminated by any Company's acquisition by or merger or
      consolidation into any other corporation. In the event of reorganization,
      consolidation, dissolution or merger of the Company, the Plan can be
      continued by the successor, and the successor shall be substituted for the
      Company and shall assume all of the Plan liabilities and all of the
      powers, duties and responsibilities of the Company under the Plan.

12.2  Partial Termination. Upon a partial termination of the Plan with respect
      to a group of Participants, as determined by a ruling of the Internal
      Revenue Service as to which all rights to appeal have expired, the Company
      shall direct the Actuary to determine the proportionate share of the
      Participants affected by such partial termination. After such
      proportionate share has been determined, the Trustees shall segregate the
      assets of the Fund allocable to such

                                       49
<PAGE>
      group of Participants for payment of benefits in accordance with the
      provisions of Section 12.3.

12.3  Vesting and Distribution of Funds Upon Termination. Upon termination of
      the Plan by the Company, in whole or in part, all affected Participants
      will become fully vested and entitled to their Accrued Benefits under the
      Plan. In that event, the assets in the Fund (or the portion of the Fund
      determined in accordance with Section 12.2) will be allocated as follows:

      (a)   There shall first be credited to each Participant who was receiving
            retirement income or who was eligible to receive retirement income
            at least three years prior to the date of Plan termination and to
            each Spouse, Beneficiary, and Contingent Annuitant who was receiving
            retirement income or who was eligible to receive retirement income
            at least three years prior to the date of Plan termination an amount
            which will provide for him the amount of retirement income then
            accrued to him under the Plan, but not in excess of the benefit
            insured by the Pension Benefit Guaranty Corporation.

      (b)   There shall next be credited to each Participant who was receiving
            retirement income or who was eligible to receive retirement income
            on the date of Plan termination and to each Spouse, Beneficiary, and
            Contingent Annuitant who was receiving retirement income or who was
            eligible to receive retirement income on the date of Plan
            termination an amount which will provide for him the amount of
            retirement income then accrued to him under the Plan, but not in
            excess of the benefit insured by the Pension Benefit Guaranty
            Corporation.

      (c)   There shall next be credited to each other Participant who, on the
            date on which the Plan shall terminate, is eligible for retirement
            income in accordance with Section 6.2

                                       50
<PAGE>
            an amount which will provide for him the amount of the retirement
            income then accrued to him under the Plan, but not in excess of the
            benefit insured by the Pension Benefit Guaranty Corporation.

      (d)   There shall next be credited to each other Participant who would be
            entitled to additional retirement income in accordance with (a),
            (b), and (c) above, were such additional income not in excess of the
            amount insured by the Pension Benefit Guaranty Corporation, an
            amount which will provide for him the amount of retirement income
            then accrued to him under the Plan.

      (e)   There shall next be credited to each other Participant an amount
            which will provide for him the amount of retirement income then
            accrued to him under the Plan.

            Allocation in any of the above classes shall be adjusted for any
            allocation made to the same Participant under a prior class.

12.4  Determination of Funds Upon Termination. The application of the Fund on
      the foregoing basis will be calculated as of the date on which the Plan
      shall terminate. When the calculation has been completed, the respective
      interest in the Fund will be distributed to or on behalf of the respective
      Participants, Spouses, Beneficiaries, and Contingent Annuitants under the
      Plan in the order stated in Section 12.3, only after the Company has sent
      written notice to the Trustee that all of the applicable requirements
      governing the termination of qualified retirement plans have been, or are
      being complied with or that appropriate authorizations, waivers,
      exemptions or variances have been, or are being, obtained. If the assets
      in the Fund on the date the Plan is terminated are not sufficient to
      provide in full the amounts required within classes (a), (b), (c), and (d)
      of Section 12.3, any benefit in excess of

                                       51
<PAGE>
      $10,000 paid within a 12-month period during the 36-month period
      immediately preceding the date of termination of the Plan to a
      Participant, Spouse, Beneficiary, or Contingent Annuitant who owns 10% or
      more of the outstanding voting stock of any Company may be deemed a part
      of the Fund for purposes of allocation. If the assets are not sufficient
      to provide in full for the amounts required for a class in the order
      listed in Section 12.3, the balance of the assets shall be allocated to
      each member of a class in the proportion which his amount bears to the
      total amount in such class. Distribution may be in the form of an annuity
      contract, cash, or securities or other assets in kind as determined by the
      Committee in a uniform and nondiscriminatory manner and applicable to all
      Participants; provided, however, that any funds remaining after the
      satisfaction of all liabilities to Participants, Spouses, Beneficiaries,
      and Contingent Annuitants under the Plan shall be returned to the
      respective Company.

12.5  Disabled Participants. Any Participant who has a Disability on the date of
      termination or discontinuance but who has not on such date begun to
      receive retirement income, will participate in the foregoing allocation of
      assets in the Fund as though he had been actively employed through the
      date of termination or discontinuance.

12.6  Restriction on Benefits. In the event of plan termination, the benefit of
      any highly compensated Employee as defined in Section 414(q) of the Code
      and highly compensated former Employee is limited to a benefit that is
      nondiscriminatory under Section 401(a)(4) of the Code, as provided in
      Section 8.6.

12.7  Right to Accrued Benefits. Any other provision of the Plan
      notwithstanding, upon termination or partial termination of the Plan, the
      right of each Participant to benefits accrued

                                       52
<PAGE>
      to the date of such termination or partial termination to the extent then
      funded or to the extent guaranteed by the Pension Benefit Guaranty
      Corporation shall be nonforfeitable.

                                       53
<PAGE>
                                  ARTICLE XIII

                               GENERAL PROVISIONS

13.1  Plan Voluntary. Although it is intended that the Plan shall be continued
      and that contributions shall be made as herein provided, this Plan is
      entirely voluntary on the part of the Company and the continuance of this
      Plan and the payment of contributions hereunder are not to be regarded as
      contractual obligations of the Company, and the Company does not guarantee
      or promise to pay or to cause to be paid any of the benefits provided by
      this Plan. Each person who shall claim the right to any payment or benefit
      under this Plan shall be entitled to look only to the Fund for any such
      payment or benefit and shall not have any right, claim, or demand
      therefore against any Company, except as provided by federal law. The Plan
      shall not be deemed to constitute a contract between the Company and any
      Employee or to be a consideration for, or an inducement for, the
      employment of any Employee by the Company. Nothing contained in the Plan
      shall be deemed to give any Employee the right to be retained in the
      service of the Company or to interfere with the right of the Company to
      discharge or to terminate the service of any Employee at any time without
      regard to the effect such discharge or termination may have on any rights
      under the Plan.

13.2  Payments to Minors and Incompetents. If any Participant, Spouse,
      Contingent Annuitant, or Beneficiary entitled to receive any benefits
      hereunder is a minor or is deemed by the Committee or is adjudged to be
      legally incapable of giving valid receipt and discharge for such benefits,
      they will be paid to such person or institution as the Committee may
      designate

                                       54
<PAGE>
      or to the duly appointed guardian. Such payment shall, to the extent made,
      be deemed a complete discharge of any liability for such payment under the
      Plan.

13.3  Non-Alienation of Benefits.

      (a)   No amount payable to, or held under the Plan for the account of, any
            Participant shall be subject in any manner to anticipation,
            alienation, sale, transfer, assignment, pledge, encumbrance, or
            charge, and any attempt to so anticipate, alienate, sell, transfer,
            assign, pledge, encumber, or charge the same shall be void; nor
            shall any amount payable to, or held under the Plan for the account
            of, any Participant be in any manner liable for his debts,
            contracts, liabilities, engagements, or torts, or be subject to any
            legal process to levy upon or attach, except as may be provided
            under: (i) a qualified domestic relations order (as defined in
            Section 414(p) of the Code) pursuant to subparagraph (c) below; or
            (ii) a judgment, order, decree or settlement (as provided in Section
            401(a)(13) of the Code) pursuant to subparagraph (d) below, or as
            otherwise required by law.

      (b)   Notwithstanding (a) above, upon authority of any retired Employee
            and with the consent of the Company, the Committee may direct the
            Trustee to withhold a portion of any benefit payable to the retired
            Employee under this Plan for the purpose of paying the costs or
            premiums by the retired Employee as a result of being included in
            another plan of the Company, such as a hospital-surgical plan. The
            Trust shall not in any manner be liable for, or subject to, the
            debts, contracts, liabilities, engagements or torts of any person
            entitled to benefits hereunder.

                                       55
<PAGE>
      (c)   Under a qualified domestic relations order, an alternate payee who
            had been married to the Participant for at least one year may be
            treated as a Spouse with respect to the portion of the Participant's
            benefit in which such alternate payee has an interest provided that
            the qualified domestic relations order provides for such treatment.
            However, under no circumstances may the spouse of any alternate
            payee (who is not a Participant hereunder) be treated as a Spouse
            under the terms of the Plan.

                  Upon receipt of any judgment, decree or order (including
            approval of a property settlement agreement) relating to the
            provision of payment by the Plan to an alternate payee pursuant to a
            state domestic relations law, the Committee shall promptly notify
            the affected Participant and any alternate payee of the receipt of
            such judgment, decree or order and shall notify the affected
            Participant and any alternate payee of the Committee's procedure for
            determining whether or not the judgment, decree or order is a
            qualified domestic relations order.

                  The Committee shall establish a procedure to determine the
            status of a judgment, decree or order as a qualified domestic
            relations order and to administer Plan distributions in accordance
            with qualified domestic relations orders. Such procedure shall be in
            writing, shall include a provision specifying the notification
            requirements enumerated in the preceding paragraph, shall permit an
            alternate payee to designate a representative for receipt of
            communications from the Committee and shall include such other
            provisions as the Committee shall determine, including provisions
            required under regulations promulgated by the Secretary of the
            Treasury.

                                       56
<PAGE>
                  During any period in which the issue of whether a judgment,
            decree or order is a qualified domestic relations order is being
            determined (by the Committee, a court of competent jurisdiction or
            otherwise), the Committee shall separately account under the Plan
            for the amount, if any, which would have been payable to the
            alternate payee during such period if the judgment, decree or order
            had been determined to be a qualified domestic relations order.

                  If the judgment, decree or order is determined by the
            Committee to be a qualified domestic relations order before the
            first payments would otherwise be due under such order, then payment
            of the appropriate amount shall be paid to the alternate payee(s) as
            required under the order. If a domestic relations order is
            determined by the Committee to be a qualified order within the
            18-month period beginning on the date that the first payment would
            have been due under such order, the separately accounted for amounts
            shall be retroactively paid to the alternate payee(s) named in the
            order. Subsequent payments shall not include any interest component.
            If the Committee first determines that the order is a qualified
            domestic relations order after the 18-month period beginning on the
            date on which the first payment would have been due under the order,
            then the provisions of such order shall be applied on a prospective
            basis only.

      (d)   For all judgments, orders or decrees issued, or settlements entered
            into, on or after August 5, 1997:

                  A Participant's benefits provided under the Plan may be offset
            by an amount that the Participant is ordered or required to pay to
            the Plan if:

                                       57
<PAGE>
            (i)   the order or requirement to repay arises (1) under a judgment
                  of conviction for a crime involving such Plan, (2) under a
                  civil judgment (including a consent order or decree) entered
                  by a court in an action brought in connection with a violation
                  (or alleged violation) of part 4 of subtitle B of Title I of
                  the Employee Retirement Income Security Act of 1974, or (3)
                  pursuant to a settlement agreement between the Secretary of
                  Labor and the Participant, or a settlement agreement between
                  the Pension Benefit Guaranty Corporation and the Participant,
                  in connection with a violation (or alleged violation) of part
                  4 of such subtitle by a fiduciary or any other person,

            (ii)  the judgment, order, decree, or settlement agreement expressly
                  provides for the offset of all or part of the amount ordered
                  or required to be paid to the Plan against the participant's
                  benefits provided under the Plan, and

            (iii) in a case in which distributions to the Participant are
                  subject to the survivor annuity requirements of Section
                  401(a)(11) of the Code, if the Participant has a Spouse at the
                  time at which the offset is to be made, the Spouse has: (1)
                  either consented to the offset (with such consent obtained in
                  accordance with the requirements of Section 417(a) of the
                  Code) or previously elected to waive the qualified joint and
                  survivor annuity or qualified preretirement survivor annuity,
                  (2) been ordered or required in such judgment, order, decree
                  or settlement to pay an amount to the Plan in connection with
                  a violation of part 4 of subtitle B, or (3) retained the right

                                       58
<PAGE>
                  to receive a survivor annuity form of benefit pursuant to
                  Section 401(a)(11) of the Code under such judgment, order,
                  decree or settlement.

13.4  Missing Persons. The Committee must use all reasonable measures to locate
      Participants or Beneficiaries who are entitled to distributions from the
      Plan. In the event that the Committee cannot locate a Participant or
      Beneficiary who is entitled to a distribution from the Plan without
      further election, after using all reasonable measures to locate him or
      her, the Committee shall, after the expiration of 2 years after the
      benefit becomes payable, treat the amount distributable as a forfeiture in
      accordance with Section 10.2. If the Participant or Beneficiary is later
      located, the Committee shall restore to the Plan the amount forfeited,
      without interest.

13.5  Use of Masculine and Feminine; Singular and Plural. Wherever used in this
      Plan, the masculine gender will include the feminine gender and the
      singular will include the plural, unless the context indicates otherwise.

13.6  Small Payments. If, upon a termination from service date, or on an annual
      basis thereafter or at the time of any distribution thereafter, the
      Actuarial Equivalent present value of the retirement income due a
      Participant, Spouse, Contingent Annuitant, or Beneficiary is $3,500
      (effective for Plan Years commencing after August 5, 1997, $5,000 or such
      greater amount as permitted under the Code) or less, a lump sum payment of
      such Actuarial Equivalent value shall automatically be made to the
      appropriate recipient as soon as practicable, in lieu of all other
      benefits hereunder.

13.7  Merger, Consolidation or Transfer. In the event that the Plan is merged or
      consolidated with any other plan, or should the assets or liabilities of
      the Plan be transferred to any other plan,

                                       59
<PAGE>
      each Participant shall be entitled to a benefit immediately after such
      merger, consolidation or transfer if the Plan should then terminate equal
      to or greater than the benefit he would have been entitled to receive
      immediately before such merger, consolidation or transfer if the Plan had
      then terminated.

13.8  Leased Employees. Any individual who performs services for the Company and
      who, by application of Section 414(n)(2) of the Code and Regulations
      issued pursuant thereto, would be considered a "leased employee", shall,
      for purposes of determining the number of highly compensated Employees of
      the Company and for purposes of the requirements enumerated in Section
      414(n)(3) of the Code, be considered an Employee of the Company with
      regard to services performed after December 31, 1986.

      When the total of all leased employees constitutes less than 20% of the
      Company's non-highly compensated work force within the meaning of Section
      414(n)(5)(c)(ii) of the Code, however, a "leased employee" shall not be
      considered an Employee of the Company if the organization from which the
      individual is leased maintains a qualified safe harbor plan (as defined in
      Section 414(n)(5) of the Code) in which such individual participates.

                  "Leased employees" who are deemed to be Employees of the
      Company for purposes of this Section 13.8 shall not be eligible to
      participate in the Plan unless specifically provided for in Section 2.1.

13.9  Governing Law. The Plan shall be administered, construed, and enforced
      according to the laws of the State of Connecticut other than its conflict
      of law provisions and other than for the determination of whether a Spouse
      is a lawful Spouse; provided, however, wherever applicable, the provisions
      of the Employee Retirement Income Security Act of 1974 shall

                                       60
<PAGE>
      govern and in such event the laws of the United States of America shall be
      applied and to the extent necessary, its courts shall have competent
      jurisdiction.

13.10 Participants Re-employed Following Qualified Military Service. Effective
      December 12, 1994, notwithstanding any provision of this Plan to the
      contrary, contributions, benefits and service credit with respect to
      qualified military service will be provided in accordance with section
      414(u) of the Code.

                                       61
<PAGE>
                                   ARTICLE XIV

                           TOP-HEAVY PLAN REQUIREMENTS

14.1  General Rule. For any Plan Year for which this Plan is a "top-heavy" Plan
      as defined in Section 14.5, any other provisions of the Plan to the
      contrary notwithstanding, the Plan shall be subject to the following
      provisions:

      (a)   The vesting provisions of Section 14.2.

      (b)   The minimum benefit provisions of Section 14.3.

      (c)   The limitation on benefits set by Section 14.4.

14.2  Vesting Provisions. Each Participant who (a) has completed at least two
      Years of Service and (b) has completed an Hour of Service during any Plan
      Year in which the plan is "top-heavy", shall have a nonforfeitable right
      to all or a portion of his Accrued Benefit under the Plan in accordance
      with the vesting schedule listed below.

<TABLE>
<CAPTION>
            Years of Service              Vested Percentage
            ----------------              -----------------
<S>                                       <C>
            Less than 2                           0
            2 but less than 3                    20
            3 but less than 4                    40
            4 but less than 5                    60
            5 or more                           100
</TABLE>

            If the Plan ceases to be "top-heavy", each Participant with three or
more Years of Service, whether or not consecutive, shall have the right to elect
to remain under the vesting schedule hereunder or to have the vesting provisions
of Section 6.2 be applicable. Each such Participant shall have the right to
elect the applicable schedule within an election period commencing on the date
the amendment is adopted and ending on the latest of the following dates:

                                       62
<PAGE>
            -     the date which is 60 days after the day the Plan amendment is
                  adopted;

            -     the date which is 60 days after the day the Plan amendment
                  becomes effective; or

            -     the date which is 60 days after the date the Participant is
                  issued written notice of the Plan amendment by the Company or
                  Committee.

            For all other Participants, the vesting provisions of Section 6.2
shall be applicable once the Plan ceases to be "top-heavy". This provision shall
not cause a Participant's vested percentage to be reduced.

14.3  Minimum Benefit Provisions. Each Participant who (a) is a "Non-Key
      Employee" (as defined in Section 14.7) and (b) has completed 1,000 Hours
      of Service in any Plan Year shall be entitled to an annual retirement
      income equal to 2% of the Participant's average annual compensation within
      the meaning of Regulation Section 1.415-2(d)(2)(3) in the "testing period"
      multiplied by his Years of Service during which the Plan is "top-heavy,"
      up to a maximum of 20%. For purposes of this Section 14.3, "testing
      period" means the period of five consecutive years during which the
      Participant had the highest aggregate compensation within the meaning of
      Regulation Section 1.415-2(d)(2)(3).

14.4  Limitation on Benefits. For Plan Years beginning before December 31, 1999,
      in the event that the Company also maintains a defined contribution plan
      providing contributions on behalf of Participants in this Plan, one of the
      two following provisions shall apply:

      (a)   If for the Plan Year this Plan would be a "top-heavy" Plan (as
            defined in Section 14.5) if "90%" were substituted for "60%," then
            the minimum benefit described in Section 14.3 means the lesser of 3%
            of average annual compensation in the "testing

                                       63
<PAGE>
            period" multiplied by the Participant's Years of Service during
            which the Plan is "top-heavy", up to a maximum of 30%.

      (b)   If for the Plan Year this Plan would continue to be a "top-heavy"
            Plan (as defined in Section 14.5) if "90%" were substituted for
            "60%," then the denominator of both the defined contribution plan
            fraction and the defined benefit plan fraction shall be calculated
            as set forth in Section 3.3(b) for such Plan Year by substituting
            "1.0" for "1.25" in each place such figure appears, except with
            respect to any individual for whom there are no Company
            contributions, forfeitures or voluntary contributions allocated or
            any accruals for such individual under the defined benefit plan.

14.5  Top-heavy Plan Definition. This Plan shall be "top-heavy" for any Plan
      Year if, as of the determination date, the present value of the Accrued
      Benefits under the Plan for Participants (including former Participants)
      who are "Key Employees" (as defined in Section 14.6) exceeds 60% of the
      present value of Accrued Benefits for all Participants (excluding former
      "Key Employees"), or if this Plan is required to be in an aggregation
      group which for such Plan Year is a "top-heavy group". For purposes of
      this Article XIV,

      (a)   "Determination date" shall mean for any Plan Year the last day of
            the immediately preceding Plan Year (except that for the first Plan
            Year the "determination date" means the last day of such Plan Year).

      (b)   "Present value of Accrued Benefits" shall be determined as of the
            most recent valuation date that is within the 12-month period ending
            on the determination date, in accordance with the actuarial
            assumptions used for funding purposes under the Plan. In the event
            that this Plan is part of either a required aggregation group or a

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<PAGE>
            permissive aggregation group with another defined benefit plan of
            the same Employer, then the same actuarial assumption shall be used
            to determine the present value of accrued benefits for top-heavy
            purpose in both plans.

      (c)   "Aggregate of the Accounts" shall mean the sum of (i) the Accounts
            determined as of the most recent Valuation Date that is within the
            12-month period ending on the "determination date," and (ii) the
            adjustment for contributions due as of the "determination date," and
            as described in the regulations under the Code.

      (d)   "Aggregation group" shall mean the group of plans, if any, that
            includes both the group of plans that are required to be aggregated
            and the group of plans that are permitted to be aggregated.

            (i)   The group of plans that are required to be aggregated (the
                  "required aggregation group") includes: each plan of the
                  Company in which a "Key Employee" is a Participant, including
                  collective-bargained plans; and each other plan of the Company
                  including collectively-bargained plans, which enables a plan
                  in which a "Key Employee" is a Participant to meet the
                  requirements of Sections 401(a)(4) and 410(b) of the Code.

            (ii)  The group of plans that are permitted to be aggregated (the
                  "permissive aggregation group") includes the "required
                  aggregation group" plus one or more plans of the Company that
                  is not part of the "required aggregation group" and that the
                  Committee certifies as constituting a plan within the
                  "permissive aggregation group". Such plan or plans may be
                  added to the "permissive aggregation group" only if, after the
                  addition, the aggregation

                                       65
<PAGE>
                  group as a whole continues not to discriminate as to
                  contributions or benefits in favor of officers, shareholders
                  or the highly-compensated and to meet the minimum
                  participation standards under the Code.

      (e)   "Top-heavy group" shall mean the aggregation group, if as of the
            applicable "determination date," the sum of the present value of the
            cumulative accrued benefits for "Key Employees" under all defined
            benefit plans included in the aggregation group plus the "aggregate
            of the accounts" of "Key Employees" under all defined contribution
            plans included in the aggregation group exceeds 60% of the sum of
            the present value of the cumulative accrued benefits for all
            Employees, excluding former "Key Employees," under all such defined
            benefit plans plus the aggregate accounts for all Employees, under
            such defined contribution plans. If the aggregation group that is a
            "top-heavy" group is a "required aggregation group," each plan in
            the group will be "top-heavy". If the aggregation group that is a
            "top-heavy group" is a "permissive aggregation group," only those
            plans that are part of the "required aggregation group" will be
            treated as "top-heavy". If the aggregation group is not a "top-heavy
            group," no plan within such group will be "top-heavy."

      (f)   In determining whether this Plan constitutes a "top-heavy plan", the
            Committee shall make the following adjustments in connection
            therewith:

            (i)   When more than one plan is aggregated, the Committee shall
                  determine separately for each plan as of each plan's
                  "determination date" the present value of the Accrued Benefits
                  or account balance. The results shall then be

                                       66
<PAGE>
                  aggregated by adding the results of each plan as of the
                  "determination dates" for such plans that fall within the same
                  calendar year.

            (ii)  In determining the present value of the Accrued Benefit or the
                  amount of the account of any Employee, such present value or
                  account shall include the dollar value of the aggregate
                  distributions made to such Employee under the applicable plan
                  during the five-year period ending on the determination date,
                  unless reflected in the value of the Accrued Benefit or
                  account balance as of the most recent valuation date. Such
                  amounts shall include distributions to Employees which
                  represented the entire amount credited to their accounts under
                  the applicable plan.

            (iii) Further, in making such determination, such present value or
                  such account shall include an rollover contribution (or
                  similar transfer), as follows:

                  (A)   If the rollover contribution (or similar transfer) is
                        initiated by the Employee and made to or from a plan
                        maintained by another employer, the plan providing the
                        distribution shall include such distribution in the
                        value of such account; the plan accepting the
                        distribution shall not include such distribution in the
                        value of such account unless the plan accepted it before
                        December 31, 1983.

                  (B)   If the rollover contribution (or similar transfer) is
                        not initiated by the Employee or made from a plan
                        maintained by another employer, the plan accepting the
                        distribution shall include such distribution in the
                        present value of such account, whether the plan accepted
                        the

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                        distribution before or after December 31, 1983; the plan
                        making the distribution shill not include such
                        distribution in the value of such account.

            (iv)  Further, in making such determination, in any case where an
                  individual is a "Non-Key Employee" (as defined in Section
                  14.7) with respect to an applicable plan, but was a "Key
                  Employee" with respect to such plan for any prior plan year,
                  any Accrued Benefit and any account of such Employee shall be
                  altogether disregarded. For this purpose, to the extent that a
                  "Key Employee" is deemed to be a "Key Employee" if he met the
                  definition thereof within any of the four preceding plan
                  years, this provision shall apply following the end of such
                  period of time.

            (v)   Further, in making such determination, the Accrued Benefit of
                  an Employee other than a "Key Employee" shall be determined
                  under (A) the method, if any, that uniformly applies for
                  accrual purposes under all plans maintained by the Company and
                  its Affiliates, or (B) if there is no such method, as if such
                  benefit accrued not more rapidly than the slowest accrual rate
                  permitted under the fractional accrual rule of Section
                  411(b)(1)(C) of the Code.

      (g)   "Average Annual Compensation" shall mean compensation as defined in
            Code Section 415(c) plus any additional amount of compensation which
            the Employee could have elected to receive in cash with respect to
            the applicable period by the Company to an employee benefit plan
            under a Code Section 401(k), Section 125 or Section 132(f)
            arrangement.

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<PAGE>
14.6  Key Employee. The term "Key Employee" means any Employee or former
      Employee under this plan who, at any time during the Plan Year containing
      the "determination date" or during any of the four preceding Plan Years,
      is or was one of the following:

      (a)   An officer of the Company, having annual compensation for such Plan
            Year greater than 50% of the amount in effect under Section
            415(b)(1)(A) of the Code. Whether an individual is an officer shall
            be determined by the Committee on the basis of all the facts and
            circumstances, such as an individual's authority, duties and term of
            office, and not on the mere fact that the individual has the title
            of an officer. For any such Plan Year, they shall be treated as
            officers no more than the lesser of:

            (i)  50 Employees, or

            (ii) the greater of three Employees or 10% of the Employees.

      (b)   One of the ten Employees owning (or considered as owning, within the
            meaning of Section 318 of the Code) the largest interests in the
            Company. However, an Employee will not be considered a top ten owner
            for a Plan Year if the Employee earns less than the maximum dollar
            limitation under the Code on contributions and other annual
            additions to a Participant's account in a defined contribution plan
            for the calendar year in which the "determination date" falls.

      (c)   Any person who owns (or is considered as owning within the meaning
            of Section 318 of the Code) more than five percent of the
            outstanding stock of the Company or stock possessing more than five
            percent of the combined total voting power of all stock of the
            Company.

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<PAGE>
      (d)   Any person having annual compensation from the Company of more than
            $150,000 and possessing more than one percent of the stock of the
            Company or stock possessing more than one percent of the combined
            total voting power of all stock of the Company.

      For purposes of this Section 14.6, "compensation" means all items
      includible as compensation for purposes of applying the limitations,
      contributions and other annual additions to a Participant's account in a
      defined contribution plan under the Code, and a Beneficiary of a "Key
      Employee" shall be treated as a "Key Employee". An individual who has not
      performed services for the Company or any of its Affiliates during the
      five-year period ending on a particular "determination date", however,
      shall not be considered a "Key Employee".

14.7  Non-Key Employee. The term "Non-Key Employee" means any Employee (and any
      Beneficiary of an Employee) who is not a "Key Employee". An individual who
      has not performed services for the Company or any of its Affiliates during
      the five-year period ending on a particular "determination date", however,
      shall not be considered a "Non-Key Employee".

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                                   ARTICLE XV

                                DIRECT ROLLOVERS

15.1  Direct Rollover of Eligible Rollover Distributions. This section applies
      to distributions made on or after January 1, 1993. Notwithstanding any
      provision of the Plan to the contrary that would otherwise limit a
      Distributee's election under this Article, 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.

IN WITNESS WHEREOF, the amended and restated Stanadyne Corporation Pension Plan
is adopted on February ___, 2002.

                                          STANADYNE CORPORATION

                                          By:_________________________________

                                          Its:________________________________

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                                   APPENDIX A

                      SPECIFIC PROVISIONS FOR PARTICIPANTS

                         ON THE HARTFORD HOURLY PAYROLL

A.1   Introduction. This Appendix A describes provisions applicable to each
      Participant paid under the Hartford Hourly Payroll, to the extent such
      provisions differ from those in the body of this Plan document and from
      other Appendices.

A.2   Appendix A Definitions. The definitions below are only applicable to this
      Appendix A.

      (a)   "Appendix A Participant" shall mean for purposes of this Appendix
            A, an Eligible Employee paid from the Company's Hartford Hourly
            Payroll, providing such Employee has met the requirements of Section
            2.1 necessary to become a Participant.

      (b)   "Diesel Systems Hartford Plan" shall mean the Stanadyne, Inc.
            Diesel Systems Division Hartford Hourly Employees Pension Plan as it
            existed on February 9, 1989 (or on such other reference date
            indicated in the following text).

      (c)   "Disability" shall mean with respect to an Appendix A Participant
            only, that portion of any continuous absence from work during which
            the Participant is receiving payment under the Company's long-term
            disability plan.

      (d)   "Years of Service" shall mean Years of Service as defined in the
            body of the Plan plus the first six months of a Disability period
            and thereafter, the portion of such continuing Disability period
            which does not exceed the Participant's Years of Service on the date
            the Disability began.

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<PAGE>
A.3   Years of Credited Service: Subject to the Break in Service provisions of
      Sections 2.3(e) and (f) and the transfer provisions of Section 2.6, an
      Appendix A Participant shall accrue Credited Service as follows:

      (a)   if an Employee became a Participant in the Prior Hartford Plan on
            February 10, 1989 and was a member of the Diesel Systems Hartford
            Plan on February 9, 1989, such Employee shall be credited hereunder
            with the Years of Credited Service and fractions thereof he had
            accumulated under the Diesel Systems Hartford Plan on February 9,
            1989 in accordance with the provisions of the Diesel Systems
            Hartford Plan on such date. In no event will an Employee receive
            duplicate service credit for any period of employment;

      (b)   for periods not already counted in (a) above, one Year of Credited
            Service shall be earned by an Appendix A Participant for each
            calendar year in which he has 1,800 or more Hours of Service;

      (c)   for periods not already counted in (a) and (b) above in which an
            Appendix A Participant has less than 1,800 Hours of Service, a
            fractional Year of Credited Service to the nearest 12th shall be
            earned by such Employee for each calendar year in which he is a
            Participant in this Plan or the Prior Hartford Plan;

      (d)   the determination of Years and fractional Years of Credited Service
            shall also include (i) the first six months of a period of absence
            due to sick leave, (ii) a period of Authorized Leave of Absence
            provided that the Participant returns to employment within the
            period of Authorized Leave of Absence, and (iii) the first six
            months of a Disability period and thereafter, the portion of such
            continuing Disability period

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<PAGE>

            which does not exceed the Participant's Years of Service on the date
            the Disability began; and

      (e)   Credited Service earned prior to a Break in Service shall be
            reinstated pursuant to the principles of Section 2.4(b).

A.4   Normal Retirement Income. An Appendix A Participant who retires on his
      Normal Retirement Date will be entitled to receive a monthly retirement
      income on the life annuity basis described in Section 8.4 equal to (a)
      minus (b) where:

      (a)   is equal to one of the following

            (i)   $14.00 multiplied by the Participant's Years of Credited
                  Service for Appendix A Participants who terminated employment
                  prior to July 1, 1989; or

            (ii)  $15.00 multiplied by the Participant's Years of Credited
                  Service for Appendix A Participants who terminated employment
                  on or after July 1, 1989, but prior to January 1, 1997; or

            (iii) $18.00 multiplied by the Participant's Years of Credited
                  Service for Appendix A Participants who terminated employment
                  on or after January 1, 1997, but prior to July 1, 1999; or

            (iv)  $19.00 multiplied by the Participant's Years of Credited
                  Service for Appendix A Participants who terminated employment
                  on or after July 1, 1999, but prior to July 1, 2000; or

            (v)   $21.00 multiplied by the Participant's Years of Credited
                  Service for all other Appendix A Participants; and

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<PAGE>
      (b)   is the monthly benefit, if any, payable to the Participant on his
            Normal Retirement Date on the life annuity basis under the Lincoln
            National Group Annuity Contract Number GA-5844 issued to the Prior
            Employer with respect to benefits accrued under the Diesel Systems
            Hartford Plan. The offset hereunder shall not cause a Participant's
            Accrued Benefit to be reduced below $0.

      For those Participants who have incurred a Break in Service under this
      Plan, the retirement income payable to such Participant shall be subject
      to Section 2.5(e).

A.5   Early Retirement Income. The monthly income payable on the life annuity
      basis to an Appendix A Participant who retires on an Early Retirement Date
      shall be (a) multiplied by (b) minus (c), where:

      (a)   is equal to one of the following

            (i)   $14.00 multiplied by the Participant's Years of Credited
                  Service for Appendix A Participants who terminated employment
                  prior to July 1, 1989; or

            (ii)  $15.00 multiplied by the Participant's Years of Credited
                  Service for Appendix A Participants who terminated employment
                  on or after July 1, 1989, but prior to January 1, 1997; or

            (iii) $18.00 multiplied by the Participant's Years of Credited
                  Service for Appendix A Participants who terminated employment
                  on or after January 1, 1997, but prior to July 1, 1999; or

            (iv)  $19.00 multiplied by the Participant's Years of Credited
                  Service for Appendix A Participants who terminated employment
                  on or after July 1,

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<PAGE>
                  1999, but prior to July 1, 2000; or

            (v)   $21.00 multiplied by the Participant's Years of Credited
                  Service for all other Appendix A Participants; and

      (b)   equals 100% reduced by -1/2 of 1% for each month between the Annuity
            Starting Date selected by the Participant and the first of the month
            following his 62nd birthday; and

      (c)   equals the monthly Benefit, if any, that would be payable to such
            Appendix A Participant on the life annuity basis from the Lincoln
            National Group Annuity Contract Number GA-5844 issued to the Prior
            Employer with respect to benefits accrued under the Diesel Systems
            Hartford Plan on the same Annuity Starting Date selected for the
            commencement of benefits under this Plan. The actual date of benefit
            commencement from such annuity contract shall be of no consequence
            in determining the offset under this subparagraph (c).

A.6   Pre-Retirement Death Benefits.

      (a)   Death Before Termination of Employment.

            (i)   If an Appendix A Participant who is an Employee has attained
                  age 57, is vested in a benefit pursuant to Section 6.2 and
                  dies before any Plan benefit commences to him, a monthly
                  retirement benefit shall be payable to his surviving Spouse.
                  The amount of such benefit shall be determined as if:

                  (A)   the Participant had retired and elected retirement
                        income payments to begin on the first day of the month
                        coinciding with or next following his date of death, and

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<PAGE>
                  (B)   his Accrued Benefit was payable in the normal form
                        described under Section 8.1(b) with his Spouse as
                        Contingent Annuitant, entitled to receive 50% of the
                        amount of the Participant's retirement income subject to
                        any applicable early payment reductions under Section
                        4.2 or this Appendix A.

                        The monthly retirement income payable to the Spouse
                  pursuant to this paragraph shall not be less than $50 reduced
                  by the monthly death benefit, if any, payable to such Spouse
                  from the Lincoln National Group Annuity Contract Number GA5844
                  issued to the Prior Employer.

                        Unless the automatic lump sum provisions of Section 13.6
                  are applicable, payments hereunder shall begin to the Spouse
                  on the first day of the month following the Participant's
                  death and shall continue to be made on the first day of each
                  month thereafter during the Spouse's lifetime.

                        If a Participant dies after his Normal Retirement Date
                  but prior to his Postponed Retirement Date, his Spouse shall
                  receive the benefit described above. If a Spouse's benefit is
                  payable in accordance with the preceding sentence, no benefits
                  will be payable under Article VIII.

            (ii)  If an Appendix A Participant who is an Employee, has not
                  attained age 57, is vested in a benefit pursuant to Section
                  6.2 and dies before any Plan benefit commences to him, a
                  monthly benefit will be payable to his surviving Spouse. The
                  monthly retirement income payable to the Spouse pursuant to
                  this Section shall not be less than $50 reduced by the month
                  death benefit, if

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<PAGE>
                  any, payable to such Spouse from the Lincoln Group Annuity
                  Contract Number GA-5844 issued to the Prior Employer. If
                  greater, the amount of such benefit shall be determined as
                  follows:

                  (A)   if the Employee dies after attaining age 50, his Accrued
                        Benefit as of his date of death shall be reduced by the
                        sum of (1) and (2) where

                        (1)   is 1/3 of 1% for each month between the date the
                              benefit hereunder commences and the date the
                              Participant would have attained age 57; and

                        (2)   is 30%.

                              The Accrued Benefit, reduced as indicated above,
                        but not reduced in any other manner for early
                        commencement, shall be converted to the Actuarial
                        Equivalent normal form for a married Participant under
                        Section 8.1(b). Unless the automatic lump sum provisions
                        of Section 13.6 are applicable, the 50% Contingent
                        Annuitant's portion of such benefit shall be payable
                        monthly to the Spouse beginning with the month following
                        the Participant's death. Such benefit shall continue to
                        be paid until the beginning of the month in which the
                        Spouse dies.

                  (B)   if the Employee dies prior to age 50, his Accrued
                        Benefit as of his date of death shall be reduced in
                        accordance with paragraphs (1) and (2) of paragraph (A)
                        above as if he had attained age 50.

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<PAGE>
                        The Accrued Benefit reduced as indicated above, but not
                        reduced in any other manner for early commencement,
                        shall be converted to the Actuarial Equivalent normal
                        form for a married Participant under Section 8.1(b).
                        Unless the automatic lump sum provisions of Section 13.6
                        are applicable, the 50% Contingent Annuitant's portion
                        of such benefit shall be payable monthly to the Spouse
                        beginning with the month following the month in which
                        the Participant would have attained age 50. Such benefit
                        shall continue to be paid until the beginning of the
                        month in which the Spouse dies.

      (b)   Death After Termination of Employment. If an Appendix A Participant
            is vested in a benefit pursuant to Section 6.2, terminates from the
            Company for reasons other than death and dies before Plan benefits
            commence, a monthly retirement benefit shall be payable to his
            Spouse. The monthly retirement income payable to the Spouse,
            pursuant to this Section, shall not be less than $50 reduced by the
            monthly death benefit, if any, payable to such Spouse from the
            Lincoln National Group Annuity Contract Number GA-5844 issued to the
            Prior Employer. If greater, the amount of such benefit shall be
            determined as if:

            (i)   the Participant had survived to the later of age 57 or his
                  actual date of death;

            (ii)  retired electing immediate payment of his Accrued Benefit
                  under the normal form described in Section 8.1(b), with his
                  Spouse as the Contingent Annuitant, entitled to receive 50% of
                  the amount of the Participant's retirement income; and then

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<PAGE>
            (iii) died immediately.

            The amount of the Participant's Accrued Benefit upon which the
      Spouse's benefit is determined in accordance with this Section shall be
      adjusted pursuant to Section A.5 or 6.3, as applicable, based on the age
      the Participant would have attained on the date the Spouse's benefit
      commences to be paid.

            Unless the automatic lump sum provisions of Section 13.6 are
      applicable, payments hereunder shall begin to the Spouse on the first day
      of the month following the later of the Participant's death or the date he
      would have attained age 57, whichever is applicable, and shall continue to
      be made on the first day of each month thereafter during the Spouse's
      lifetime.

      If a benefit is payable under such subparagraph (a) above, no benefit
shall be payable under this subparagraph (b).

(c)   Grandfathered Death Benefit. Notwithstanding the provisions of
      subparagraphs (a) and (b) above, in the case of an Appendix A Participant
      who was a member of the Diesel Systems Hartford Plan on December 31, 1983,
      and dies prior to the commencement of benefits from the Plan or Diesel
      Systems Hartford Plan, if the provisions of the second paragraph of
      Section 6.6 of the Diesel Systems Hartford Plan as in effect on December
      31, 1983, will result in a greater benefit for such Participant's
      surviving Spouse based on the Participant's Credited Service as of
      December 31, 1983, then such surviving Spouse shall be entitled to such
      greater benefit upon the Participant's death in lieu of the benefits
      provided under (a) and (b) above.

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<PAGE>
         (d)      Special Minimum Death Benefit. Notwithstanding any other
                  provision of the Plan, if a Participant was a member of the
                  Diesel Systems Hartford Plan on December 31, 1983, and he
                  commences to receive his retirement income in the form of a
                  single life annuity described in Section 8.4 and then dies, a
                  special minimum death benefit may apply. If the provisions of
                  the third and fourth paragraphs of Section 6.6 of the Diesel
                  Systems Hartford Plan in effect on December 31, 1983 will
                  result in a death benefit for such Participant's surviving
                  Spouse based on such Participant's Credited Service as of
                  December 31, 1983, then such Spouse will be entitled to such
                  benefit hereunder upon the death of the Participant.

A.7      Grandfathered Payment Form for Certain Participants. Subject to the
         provisions of Section 8.1, if a Participant in this Plan who was a
         member of the Diesel Systems Hartford Plan on December 31, 1983, made
         an optional election under Section 8.1 of the Diesel Systems Hartford
         Plan, as in effect on December 31, 1975, and did not revoke such
         election in accordance with the first paragraph of Section 6.6 of the
         Diesel Systems Hartford Plan as in effect on December 31, 1983, then
         such optional election shall be deemed a valid election under this Plan
         and shall continue in effect or become effective and be revocable
         subject to and in accordance with the first paragraph of Section 6.6 of
         the Diesel Systems Hartford Plan as in effect on December 31, 1983.

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<PAGE>
                                   APPENDIX B

                      SPECIFIC PROVISIONS FOR PARTICIPANTS
                       ON THE JACKSONVILLE HOURLY PAYROLL

B.1      Introduction. This Appendix B describes provisions applicable to each
         Participant paid under the Jacksonville Hourly Payroll, to the extent
         such provisions differ from those in the body of this Plan document and
         from other Appendices.

B.2      Appendix B Definitions. The definitions below are only applicable to
         this Appendix B.

         (a)      "Appendix B Participant" shall mean for purposes of this
                  Appendix B, an Eligible Employee paid from the Company's
                  Jacksonville Hourly Payroll, providing such Employee has met
                  the requirements of Section 2.1 necessary to become a
                  Participant.

         (b)      "Diesel Systems Jacksonville Plan" shall mean the Stanadyne,
                  Inc. Diesel Systems Division Jacksonville Hourly Employees
                  Pension Plan as it existed on February 9, 1989 (or on such
                  other reference date indicated in the following text).

         (c)      Prior to July 1, 1998, "Disability" except as provided herein,
                  shall mean a physical or mental condition which totally and
                  presumably permanently prevents an Appendix B Participant from
                  engaging in any substantially gainful activity, based on a
                  medical examination by a doctor or clinic appointed by the
                  Committee. For purposes of this Appendix B, Disability shall
                  not include any condition, which on the basis of medical
                  examination, is determined to have resulted from (i) chronic
                  alcoholism, (ii) addiction to narcotics, (iii) an injury
                  suffered while engaged in a felonious or criminal act or
                  enterprise or (iv) service in the Armed Forces of the United
                  States which entitles the Participant to a veteran's
                  disability pension. On or after July 1, 1998,

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<PAGE>
                  "Disability" shall mean with respect to an Appendix B
                  Participant only, that portion of any continuous absence from
                  work during which the Participant is receiving payments under
                  the Company's long-term disability plan.

         (d)      Prior to July 1, 1998, "Years of Service" shall mean Years of
                  Service as defined in the body of the Plan. On or after July
                  1, 1998, "Years of Service" shall mean Years of Service as
                  defined in the body of the Plan plus the first six months of a
                  Disability period and thereafter, the portion of such
                  continuing Disability period which does not exceed the
                  Participant's Years of Service on the date the Disability
                  began.

B.3      Years of Credited Service: The amount of the benefit payable to or on
         behalf of an Appendix B Participant shall be determined on the basis of
         his Credited Service from and after January 1, 1977.

                  Subject to the Break in Service provisions of Sections 2.3(e)
and (f) and the transfer provisions of Section 2.6, an Appendix B Participant
shall accrue Credited Service as follows:

         (a)      if an Employee became a Participant in the Prior Jacksonville
                  Plan on February 10, 1989 and was a member of the Diesel
                  Systems Jacksonville Plan on February 9, 1989, such Employee
                  shall be credited hereunder with the Years of Credited Service
                  and fractions thereof he had accumulated under the Diesel
                  Systems Jacksonville Plan on February 9, 1989 in accordance
                  with the provisions of the Diesel Systems Jacksonville Plan on
                  such date. In no event will an Employee receive duplicate
                  service credit for any period of employment;

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<PAGE>
         (b)      for periods not already counted in (a) above, one Year of
                  Credited Service shall be earned by an Appendix B Participant
                  for each calendar year in which he has 1,800 or more Hours of
                  Service;

         (c)      for periods not already counted in (a) and (b) above in which
                  an Appendix B Participant has less than 1,800 Hours of
                  Service, a fractional Year of Credited Service to the nearest
                  12th shall be earned by such Employee for each calendar year
                  in which he is a Participant in this Plan or the Prior
                  Jacksonville Plan; and

         (d)      Credited Service shall also be granted for (i) the first six
                  months of a period of absence due to sick leave or Disability,
                  and (ii) a period of Authorized Leave of Absence provided that
                  the Participant returns to employment within the period of
                  Authorized Leave of Absence.

         (e)      Credited Service earned prior to a Break in Service shall be
                  reinstated pursuant to the principles of Sections 2.4(b).

B.4      Normal Retirement Income. An Appendix B Participant who retires on his
         Normal Retirement Date will be entitled to receive a monthly retirement
         income on the life annuity basis described in Section 8.4 equal to one
         of the following:

         (a)      $8.00 multiplied by the Participant's Years of Credited
                  Service for Appendix B Participants who terminated employment
                  prior to January 1, 1992; or

         (b)      $9.00 multiplied by the Participant's Years of Credited
                  Service for Appendix B Participants who terminated employment
                  prior to January 1, 1993, but after December 31, 1991; or

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         (c)      $10.00 multiplied by the Participant's Years of Credited
                  Service for Appendix B Participants who terminated employment
                  on or after January 1, 1993, but prior to January 1, 1997; or

         (d)      $11.00 multiplied by the Participant's Years of Credited
                  Service for Appendix B Participants who terminated employment
                  on or after January 1, 1997, but prior to July 1, 1999; or

         (e)      $12.00 multiplied by the Participant's Years of Credited
                  Service for Appendix B Participants who terminated employment
                  on or after July 1, 1999, but prior to July 1, 2000; or

         (f)      $14.00 multiplied by the Participant's Years of Credited
                  Service for all other Appendix B Participants.

         For those Participants who have incurred a Break in Service under this
         Plan, the retirement income payable to such Participant shall be
         subject to Section 2.5(e).

         The Participant's annual retirement income may be subject to a
         reduction if a form of payment other than a life annuity is elected.

B.5      Early Retirement Income. An Appendix B Participant who retires on an
         Early Retirement Date may elect to receive either an immediate early
         retirement income or a deferred retirement income as indicated below.
         The annual amount of the early retirement income on the life annuity
         basis described in Section 8.4 shall be equal to either (a) or (b)
         below, as applicable:

         (a)      If the Participant terminates on an Early Retirement Date and
                  elects to commence payment of his retirement income prior to
                  his attainment of age 62, his Accrued

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                  Benefit shall be payable reduced by 1/2 of 1% for each month
                  between the selected Annuity Starting Date and the first of
                  the month following his 62nd birthday;

         (b)      If the Participant terminates on an Early Retirement Date and
                  elects to commence payment of his retirement income on or
                  after his 62nd birthday, the Participant's Accrued Benefit
                  shall be payable unreduced for early commencement.

B.6      Disability Retirement Benefits (Prior to July 1, 1998).

         Any Participant first incurring a Disability prior to July 1, 1998, who
         satisfies the eligibility criteria of this Section shall be entitled to
         a Disability Retirement Benefit and, if applicable, an Additional
         Disability Retirement Benefit, both as set forth below.

         (a)      Disability Retirement Date; Commencement of Benefit. If an
                  Appendix B Participant terminates employment due to a
                  Disability after he has completed 10 or more Years of Service,
                  he shall be eligible for Disability Retirement Benefits
                  pursuant to (b) below and, if applicable, (c) below. Payment
                  of a Disability Retirement Benefit shall commence as of the
                  first day coincident with or next following six (6) months
                  from the date employment ceased due to Disability. Except as
                  provided in (d) below, Disability retirement income shall be
                  paid in lieu of other retirement income for which the
                  Participant may be eligible.

         (b)      Disability Retirement Benefits. If an Appendix B Participant
                  has experienced a Disability, as defined in Section B.2, the
                  Participant shall be eligible to receive a Disability
                  Retirement Benefit equal to his Accrued Benefit as of his date
                  of termination due to Disability. The Disability Retirement
                  Benefit hereunder is not subject to

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<PAGE>
                  reduction for commencement prior to the Participant's Normal
                  Retirement Date, but is subject to reduction for a form of
                  benefit other than a life annuity.

         (c)      Additional Disability Retirement Benefit. Appendix B
                  Participant who is entitled to a Disability Retirement Benefit
                  in accordance with (a) above, may also be entitled to receive
                  an "Additional Disability Benefit" which is the equivalent of
                  his Accrued Benefit as of his date of termination due to
                  Disability. If the Participant has applied for and been denied
                  Social Security disability benefits and the Participant
                  provides satisfactory proof of such denial of benefits, the
                  Additional Disability Benefit described hereunder shall be
                  payable to the Participant until the earliest of

                  (i)      his death,

                  (ii)     the end of his Disability,

                  (iii)    his eligibility for Social Security disability
                           benefits, and

                  (iv)     his Normal Retirement Date.

                  The Additional Disability Benefit is not subject to reduction
                  for commencement prior to the Participant's Normal Retirement
                  Date and is only payable as a life annuity, as described in
                  Section 8.4.

         (d)      Cessation of Disability. Disability shall be considered to
                  have ended and entitlement to Disability Retirement Benefits
                  under (b) and (c) hereof shall cease if, prior to his Normal
                  Retirement Date, the Participant

                           (i)      is reemployed by the Company or an
                                    Affiliate,

                           (ii)     engages in any substantially gainful
                                    activity, except for such employment as is
                                    found by the Committee to be for the primary

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                                    purpose of rehabilitation or not
                                    incompatible with a finding of total and
                                    permanent Disability, or

                           (iii)    has sufficiently recovered, in the opinion
                                    of the Committee based on a medical
                                    examination by a doctor or clinic appointed
                                    by the Committee, to be able to engage in
                                    regular employment with the Company and
                                    refuses an offer of employment of the
                                    Company, or

                           (iv)     refuses to undergo any medical examination
                                    requested by the Committee, provided that a
                                    medical examination shall not be required
                                    more frequently than twice in any calendar
                                    year.

                  If entitlement to a Disability Retirement Benefit ceases in
                  accordance with the provisions of this Section for a reason
                  other than reemployment by the Company, such a Participant
                  shall not be prevented from qualifying for retirement income
                  under another provision of the Plan based on his Credited
                  Service prior to Disability. If a Participant recovers from
                  Disability and returns to employment with the Company or an
                  Affiliate, subsequent entitlement to retirement income shall
                  be determined in accordance with the provisions of the Plan in
                  effect on the date of subsequent retirement or other
                  termination of employment.

B.6A     Disability Retirement Benefits (On or After July 1, 1998).

         Any Participant first incurring a Disability on or after July 1, 1998
         shall not be entitled to a Disability Retirement Benefit or an
         Additional Disability Retirement Benefit.

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<PAGE>
B.7      Pre-Retirement Death Benefits.

         (a)      Immediate Pre-Retirement Spouse's Benefit. If an Appendix B
                  Participant has attained age 57, is vested in a benefit
                  pursuant to Section 6.2 and dies before any Plan benefit
                  commences to him, a monthly retirement benefit shall be
                  payable to his Spouse. In determining the amount payable to
                  the Spouse under this Section, no Additional Disability
                  Benefit shall be included in making such a determination. Such
                  amount shall be determined as if:

                  (i)      the Participant had retired and elected retirement
                           income payments to begin on the first day of the
                           month coinciding with or next following his date of
                           death, and

                  (ii)     his retirement income was payable in the normal form
                           described under Section 8.1(a) with his Spouse as
                           Contingent Annuitant, entitled to receive 50% of the
                           amount of the Participant's retirement income and
                           subject to any applicable early payment reductions
                           under Section 6.3 or B.5.

                  Unless the automatic lump sum provisions of Section 13.6 are
                  applicable, payments hereunder shall begin to the Spouse on
                  the first day of the month following the Participant's death
                  and shall continue to be made on the first day of each month
                  thereafter during the Spouse's lifetime.

                  If a Participant dies after his Normal Retirement Date, but
                  prior to his Postponed Retirement Date, his Spouse shall
                  receive the benefit described above. If a Spouse's benefit is
                  payable in accordance with the preceding sentence, no benefits
                  will be payable under Article VIII.

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<PAGE>
         (b)      Deferred Pre-Retirement Spouse's Benefit. If an Appendix B
                  Participant is vested in a benefit pursuant to Section 6.2,
                  dies before attaining age 57 and before any Plan benefits have
                  commenced to him, a monthly retirement benefit shall be
                  payable to his Spouse. Such amount shall be determined as if:

                  (i)      the Participant terminated employment as of his date
                           of death (if he was still an Employee);

                  (ii)     survived until age 57 or if he had terminated due to
                           Disability, the date he would have been eligible for
                           Disability Benefits under Section B.6(b);

                  (iii)    retired, electing immediate payment of benefits under
                           the normal form described under Section 8.1(a), with
                           his Spouse as the Contingent Annuitant, entitled to
                           receive 50% of the amount of the Participant's
                           retirement income; and then

                  (iv)     died on the day after the date in (ii) above.

                  The amount of the Participant's Accrued Benefit upon which the
                  Spouse's benefit is determined shall be adjusted pursuant to
                  Section 6.3, if applicable, based on the age the Participant
                  would have attained on the date the Spouse's benefit commences
                  to be paid.

                  In the case of a Participant who had incurred a Disability and
                  dies before Disability Benefits commence, however, the
                  Spouse's benefit shall be determined with regard to the
                  Participant's Disability Benefit under Section B.6(b).
                  Disability Benefits, if any, under Section B.6(c), and the
                  reductions under Section 6.3 shall not be applicable.

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<PAGE>
                                   APPENDIX C

                      SPECIFIC PROVISIONS FOR PARTICIPANTS
                    ON THE WASHINGTON FACTORY HOURLY PAYROLL

C.1      Introduction. This Appendix C describes provisions applicable to each
         Participant paid under the Washington Factory Hourly Payroll, to the
         extent such provisions differ from those in the body of this Plan
         document and from other Appendices.

C.2      Appendix C Definitions. The definitions below are only applicable to
         this Appendix C.

         (a)      "Appendix C Participant" shall mean for purposes of this
                  Appendix C, an Eligible Employee paid from the Company's
                  Washington Factory Hourly Payroll, providing such Employee has
                  met the requirements of Section 2.1 necessary to become a
                  Participant.

         (b)      "Diesel Systems Washington Plan" shall mean the Stanadyne,
                  Inc. Diesel Systems Division Washington Factory Hourly
                  Employees Pension Plan as it existed on February 9, 1989 (or
                  on such other reference date indicated in the following text).

         (c)      Prior to July 1, 1998, "Disability" except as provided herein,
                  shall mean a physical or mental condition which totally and
                  presumably permanently prevents an Appendix C Participant from
                  engaging in any substantially gainful activity, based on a
                  medical examination by a doctor or clinic appointed by the
                  Committee. For purposes of this Appendix C, Disability shall
                  not include any condition, which on the basis of medical
                  examination, is determined to have resulted from (i) chronic
                  alcoholism, (ii) addiction to narcotics, (iii) an injury
                  suffered while engaged in a felonious or

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<PAGE>
                  criminal act or enterprise, or (iv) service in the Armed
                  Forces of the United States which entitles the Participant to
                  a veteran's disability pension. On or after July 1, 1998,
                  "Disability" shall mean with respect to an Appendix C
                  Participant only, that portion of any continuous absence from
                  work during which the Participant is receiving payments under
                  the Company's long-term disability plan.

         (d)      Prior to July 1, 1998, "Years of Service" shall mean Years of
                  Service as defined in the body of the Plan. On or after July
                  1, 1998, "Years of Service" shall mean Years of Service as
                  defined in the body of the Plan plus the first six months of a
                  Disability period and thereafter, the portion of such
                  continuing Disability period which does not exceed the
                  Participant's Years of Service on the date the Disability
                  began.

C.3      Years of Credited Service: The amount of the benefit payable to or on
         behalf of an Appendix C Participant shall be determined on the basis of
         his Credited Service from and after January 1, 1979.

                  Subject to the Break in Service provisions of Sections 2.3(e)
and (f) and the transfer provisions of Section 2.6, an Appendix C Participant
shall accrue Credited Service as follows:

         (a)      if an Employee became a Participant in the Prior Washington
                  Plan on February 10, 1989 and was a member of the Diesel
                  Systems Washington Plan on February 9, 1989, such Employee
                  shall be credited hereunder with the Years of Credited Service
                  and fractions thereof he had accumulated under the Diesel
                  Systems Washington Factory Plan on February 9, 1989 in
                  accordance with the provisions of the Diesel Systems
                  Washington Factory Plan on such date. In no event will an
                  Employee receive duplicate service credit for any period of
                  employment;

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<PAGE>
         (b)      for periods not already counted in (a) above, one Year of
                  Credited Service shall be earned by an Appendix C Participant
                  for each calendar year in which he has 1,800 or more Hours of
                  Service;

         (c)      for periods not already counted in (a) and (b) above in which
                  an Appendix C Participant has less than 1,800 Hours of
                  Service, a fractional Year of Credited Service to the nearest
                  12th shall be earned by such Employee for each calendar year
                  in which he is a Participant in this Plan or the Prior
                  Washington Plan; and

         (d)      Credited Service shall also be granted for (i) the first six
                  months of a period of absence due to sick leave or Disability,
                  and (ii) a period of Authorized Leave of Absence provided that
                  the Participant returns to employment within the period of
                  Authorized Leave of Absence.

C.4      Normal Retirement Income. An Appendix C Participant who retires on his
         Normal Retirement Date will be entitled to receive a monthly retirement
         income on the life annuity basis described in Section 8.4 equal to one
         of the following:

         (a)      $8.00 multiplied by the Participant's Years of Credited
                  Service for Appendix C Participants who terminated employment
                  prior to January 1, 1992; or

         (b)      $9.00 multiplied by the Participant's Years of Credited
                  Service for Appendix C Participants who terminated employment
                  prior to January 1, 1993, but after December 31, 1991; or

         (c)      $10.00 multiplied by the Participant's Years of Credited
                  Service for Appendix C Participants who terminated employment
                  on or after January 1, 1993, but prior to January 1, 1997; or

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<PAGE>
         (d)      $11.00 multiplied by the Participant's Years of Credited
                  Service for Appendix C Participants who terminated employment
                  on or after January 1, 1997, but prior to July 1, 1999; or

         (e)      $12.00 multiplied by the Participant's Years of Credited
                  Service for Appendix C Participants who terminated employment
                  on or after July 1, 1999, but prior to July 1, 2000; or

         (f)      $14.00 multiplied by the Participant's Years of Credited
                  Service for all other Appendix C Participants.

                  For those Participants who have incurred a Break in Service
         under this Plan, the retirement income payable to such Participant
         shall be subject to Section 2.5(E). The Participant's annual retirement
         income may be subject to a reduction if a form of payment other than a
         life annuity is elected. In addition, the retirement income will be
         reduced if the pre-retirement coverage described in Section C.7 had
         been in effect.

C.5      Early Retirement Income. An Appendix C Participant who retires on an
         Early Retirement Date may elect to receive either an immediate Early
         Retirement Income or a deferred retirement income as indicated below.
         The annual amount of the Early Retirement Income on the life annuity
         basis described in Section 8.4 shall be equal to either (a) or (b)
         below, as applicable:

         (a)      If the Participant terminates on an Early Retirement Date and
                  elects to commence payment of his retirement income prior to
                  his attainment of age 62, his Accrued Benefit shall be payable
                  reduced by 1/2 of 1% for each month between the selected
                  Annuity Starting Date and the first of the month following his
                  62nd birthday;

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<PAGE>
         (b)      If the Participant terminates on an Early Retirement Date and
                  elects to commence payment of his retirement income on or
                  after his 62nd birthday, the Participant's Accrued Benefit
                  shall be payable unreduced for early commencement.

C.6      Disability Retirement Benefits (Prior to July 1, 1998).

         Any Participant first incurring a Disability prior to July 1, 1998, who
         satisfies the eligibility criteria of this Section shall be entitled to
         a Disability Retirement Benefit and, if applicable, an Additional
         Disability Retirement Benefit, both as set forth below.

         (a)      Disability Retirement Date; Commencement of Benefit. If an
                  Appendix C Participant terminates employment due to a
                  Disability after he has completed 10 or more Years of Service,
                  he shall be eligible for Disability Retirement Benefits
                  pursuant to (b) below and, if applicable, (c) below. Payment
                  of a Disability Retirement Benefit shall commence as of the
                  first day coincident with or next following six (6) months
                  from the date employment ceased due to Disability. Except as
                  provided in (d) below, Disability Retirement Income shall be
                  paid in lieu of other retirement income for which the
                  Participant may be eligible.

         (b)      Disability Retirement Benefits. If an Appendix C Participant
                  has experienced a Disability, as defined in Section C.2, the
                  Participant shall be eligible to receive a Disability
                  Retirement Benefit equal to his Accrued Benefit as of his date
                  of termination due to Disability. The Disability Retirement
                  Benefit hereunder is not subject to reduction for commencement
                  prior to the Participant's Normal Retirement Date, but is
                  subject to reduction for a form of benefit other than a life
                  annuity.

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<PAGE>
         (c)      Additional Disability Retirement Benefit. An Appendix C
                  Participant who is entitled to a Disability Retirement Benefit
                  in accordance with (a) above, may also be entitled to receive
                  an "Additional Disability Benefit" which is the equivalent of
                  his Accrued Benefit as of his date of termination due to
                  Disability. If the Participant has applied for and been denied
                  Social Security disability benefits and the Participant
                  provides satisfactory proof of such denial of benefits, the
                  Additional Disability Benefit described hereunder shall be
                  payable to the Participant until the earliest of:

                  (i)      his death,

                  (ii)     the end of his Disability,

                  (iii)    his eligibility for Social Security disability
                           benefits, and

                  (iv)     his Normal Retirement Date.

                           The Additional Disability Benefit is not subject to
                  reduction for commencement prior to the Participant's Normal
                  Retirement Date and is only payable as a life annuity, as
                  described in Section 8.4.

         (d)      Cessation of Disability. Disability shall be considered to
                  have ended and entitlement to Disability Retirement Benefits
                  under (b) and (c) above shall cease if, prior to his Normal
                  Retirement Date, the Participant

                  (i)      is reemployed by the Company or an Affiliate,

                  (ii)     engages in any substantially gainful activity, except
                           for such employment as is found by the Committee to
                           be for the primary purpose of rehabilitation or not
                           incompatible with a finding of total and permanent
                           disability,

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<PAGE>
                  (iii)    has sufficiently recovered, in the opinion of the
                           Committee based on a medical examination by a doctor
                           or clinic appointed by the Committee, to be able to
                           engage in regular employment with the Company and
                           refuses an offer of employment of the Company, or

                  (iv)     refuses to undergo any medical examination requested
                           by the Committee, provided that a medical examination
                           shall not be required more frequently than twice in
                           any calendar year.

                  If entitlement to a Disability Retirement Benefit ceases in
         accordance with the provisions of this Section for a reason other than
         reemployment by the Company, such a Participant shall not be prevented
         from qualifying for retirement income under another provision of the
         Plan based on his Credited Service prior to Disability. If a
         Participant recovers from Disability and returns to employment with the
         Company or an Affiliate, subsequent entitlement to retirement income
         shall be determined in accordance with the provisions of the Plan in
         effect on the date of subsequent retirement or other termination of
         employment.

C.6.A    Disability Retirement Benefits (On or After July 1, 1998).

         Any Participant first incurring a Disability on or after July 1, 1998
         shall not be entitled to a Disability Retirement Benefit or an
         Additional Disability Retirement Benefit.

C.7      Pre-Retirement Death Benefits.

         (a)      Immediate Pre-Retirement Spouse's Benefit. If an Appendix C
                  Participant has attained age 57, is vested in a benefit
                  pursuant to Section 6.2 and dies before any Plan benefit
                  commences to him, a monthly retirement benefit shall be
                  payable to his

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<PAGE>
                  Spouse. In determining the amount payable to the Spouse under
                  this Section, no Additional Disability Benefit shall be
                  included in making such a determination. Such amount shall be
                  determined as if:

                  (i)      the Participant had retired and elected retirement
                           income payments to begin on the first day of the
                           month coinciding with or next following his date of
                           death, and

                  (ii)     his retirement income was payable in the normal form
                           described under Section 8.1(a) with his Spouse as
                           Contingent Annuitant, entitled to receive 50% of the
                           amount of the Participant's retirement income and
                           subject any applicable early payment reductions under
                           Section C.5 or 6.3.

                  Unless the automatic lump sum provisions of Section 13.6 are
                  applicable, payments hereunder shall begin to the Spouse on
                  the first day of the month following the Participant's death
                  and shall continue to be made on the first day of each month
                  thereafter during the Spouse's lifetime.

                  If a Participant dies after his Normal Retirement Date but
                  prior to his Postponed Retirement Date, his Spouse shall
                  receive the benefit described above. If a Spouse's benefit is
                  payable in accordance with the preceding sentence, no benefits
                  will be payable under Article VIII.

         (b)      Deferred Pre-Retirement Spouse's Benefit. If an Appendix C
                  Participant is vested in a benefit pursuant to Section 6.2,
                  dies before attaining age 57 and before any Plan benefits have
                  commenced to him, a monthly retirement benefit shall be
                  payable to his Spouse. Such amount shall be determined as if:

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<PAGE>
                  (i)      the Participant terminated employment as of his date
                           of death (if he was still an Employee);

                  (ii)     survived until age 57 or if he had terminated due to
                           Disability, the date he would have been eligible for
                           Disability Benefits under Section C.6(b);

                  (iii)    retired, electing immediate payment of benefits under
                           the normal form described under Section 8.1(a), with
                           his Spouse as the Contingent Annuitant, entitled to
                           receive 50% of the amount of the Participant's
                           retirement income; and then

                  (iv)     died on the day after the date in (ii) above.

                  The amount of the Participant's Accrued Benefit upon which the
                  Spouse's benefit is determined shall be adjusted pursuant to
                  Section 6.3, if applicable, based on the age the Participant
                  would have attained on the date the Spouse's benefit commences
                  to be paid.

                           In the case of a Participant who had incurred a
                  Disability and dies before Disability Benefits commence,
                  however, the Spouse's benefit shall be determined with regard
                  to the Participant's Disability Benefit under Section C.6(b).
                  Disability Benefits, if any, under Section C.6(c), and the
                  reductions under Section 6.3 shall not be applicable.

                           Unless the automatic lump sum provisions of Section
                  13.6 are applicable, payments hereunder shall begin to the
                  Spouse on the first day of the month following the later of
                  the Participant's death or the date he would have attained age
                  57, and shall continue to be made on the first day of each
                  month thereafter during the Spouse's

                                       99
<PAGE>
                  lifetime. Notwithstanding the foregoing, if a Participant had
                  incurred a Disability and was entitled to Disability Benefits
                  under Section C.6(b), the Spouse's benefit hereunder shall
                  commence on the date the Participant's Disability Benefit
                  would have commenced.

                           If a benefit is payable under Section C.7(a), no
                  benefit shall be payable under this Section C.7(b).

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<PAGE>
                                  APPENDIX D-1

                             SPECIFIC PROVISIONS FOR
                          STANADYNE SALARIED EMPLOYEES

D.1      Introduction. This Appendix D describes provisions applicable to each
         Participant who is (a) receiving remuneration for personal services
         rendered to an Employer (or would be receiving remuneration except for
         an Authorized Leave of Absence), (b) classified as an executive,
         administrative, sales supervisory, professional, technical, or office
         Employee; (c) not included on a factory hourly payroll; (d) not covered
         by a collective bargaining agreement; (e) employed at Stanadyne
         Corporate Office, Tallahassee Plant, Jacksonville Plant, Washington
         Plant, Garrett Plant, Elmhurst or the Windsor Plant; (f) not a
         participant in any other qualified defined benefit plan sponsored by an
         Employer; (g) not an independent contractor; and (h) is not a leased
         employee as described in Section 414(n)(2) of the Code, to the extent
         such provisions differ from those in the body of this Plan document and
         from other Appendices.

D.2      Appendix Definitions. The definitions below are only applicable to this
         Appendix D.

         (a)      "Average Monthly Earnings" shall mean one-sixtieth (1/60) of
                  the total Earnings paid or credited to an Employee in the five
                  successive calendar years of Credited Service which yield the
                  highest such average. If an Employee retires or receives a
                  distribution of benefits on account of Plan termination or on
                  account of the required minimum distribution rules under
                  Section 401(a)(9) of the Code with any period of his Credited
                  Service for which benefits are computed which is less than 5
                  years, than

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<PAGE>
                  his Average Monthly Earnings shall mean one-twelfth (1/12) of
                  the Employee's Earnings during the applicable period of
                  Credited Service for which his Accrued Benefit is being
                  computed divided by the number of Years (including fractional
                  parts of a year) of Credited Service.

         (a)      "Disability" shall mean with respect to an Appendix D
                  Participant only, that portion of any continuous absence from
                  work during which the Participant is receiving payments under
                  the Company's long-term disability plan.

         (b)      "Earnings" shall mean the sum of the following:

                  (i)      the total compensation paid to a Participant by an
                           Employer and before February 10, 1989 by the Prior
                           Employer for personal services during periods of
                           Credited Service, excluding any Credited Service
                           accrued under Section 2.4(g), plus

                  (ii)     any pre-tax contributions made at the Participant's
                           election to a qualified cash or deferred arrangement
                           as defined in Section 401(k) of the Code, any pre-tax
                           contributions made under a cafeteria plan as defined
                           under Section 125 of the Code sponsored by an
                           Employer or before February 10, 1989 by the Prior
                           Employer, and any pre-tax contributions made under a
                           qualified transportation program under Section 132(f)
                           of the Code, plus

                  (iii)    such considered compensation for a period of
                           Authorized Leave of Absence (if any) as shall be
                           credited in accordance with the rules of uniform
                           application adopted by the Committee. Compensation
                           received by an

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<PAGE>
                           Employee through an insured program sponsored by an
                           Employer shall be excluded from Earnings.

                  (iv)     Notwithstanding the foregoing, a Participant's
                           Earnings shall not include the amount of any payments
                           made to such Participant under a management incentive
                           program or agreement with the Employer which by its
                           own terms excludes payments therefrom from the
                           definition of Earnings under the Plan.

                  (v)      The provisions of the Plan relating to family
                           aggregation, with regard to Earnings and as otherwise
                           set forth in this Plan, are eliminated effective for
                           Plan Years beginning after December 31, 1996.

                           For all Plan Years, beginning after December 31,
                  1988, but prior to January 1, 1994, Earnings shall not include
                  any amount in excess of $200,000, or such higher amount as
                  permitted under Section 401(a)(17) of the Code and related
                  regulations. Notwithstanding the foregoing, the Accrued
                  Benefit of a Participant shall never be less than his or her
                  Accrued Benefit determined as of December 31, 1988.

                           In addition to other applicable limitations set forth
                  in the Plan, and notwithstanding any other provision of the
                  Plan to the contrary, for Plan Years beginning on or after
                  January 1, 1994, the annual Earnings of each Participant taken
                  into account under the Plan shall not exceed the OBRA '93
                  annual compensation limit. The OBRA '93 annual compensation
                  limit is $150,000, as adjusted by the Commissioner of Internal
                  Revenue for increases in the cost of living in accordance with
                  Section 401(a)(17)(B) of the Code. The cost-of-living
                  adjustment in effect for a calendar year applies to any
                  period, not exceeding 12 months, over which Earnings

                                      103
<PAGE>
                  are determined (determination period) beginning in such
                  calendar year. If a determination period consists of fewer
                  than 12 months, the OBRA '93 annual compensation limit will be
                  multiplied by a fraction, the numerator of which is the number
                  of months in the determination period, and the denominator of
                  which is 12.

                           For Plan Years beginning on or after January 1, 1994,
                  any reference in this Plan to the limitation under Section
                  401(a)(17) of the Code shall mean the OBRA '93 annual
                  compensation limit set forth in this provision.

                           If Earnings for any prior determination period is
                  taken into account in determining a Participant's benefits
                  accruing in the current Plan Year, the Earnings for that prior
                  determination period is subject to the OBRA '93 annual
                  compensation limit in effect for that prior determination
                  period. For this purpose, for determination periods beginning
                  before the first day of the first Plan Year beginning on or
                  after January 1, 1994, the OBRA '93 annual compensation limit
                  is $150,000.

                           For those Participants who are affected by the
                  limitations of Code Section 401(a)(17), his fresh-start
                  benefit will be the sum of his accrued benefit, determined as
                  of December 31, 1993, plus his accrued benefit determined with
                  respect to the current benefit formula as applied to the
                  Participant's years of credited service after December 31,
                  1993.

         (c)      "Employer" shall mean Stanadyne Corporation and any other
                  Affiliate Company or successor Company that duly adopts the
                  Plan with the consent of the Board.

         (d)      "Primary Social Security Benefit" shall mean the monthly
                  amount available to the Participant at age 65 determined under
                  the provisions of Title II of the Social Security

                                      104
<PAGE>
                  Act in effect at the time of his termination of employment
                  without regard to any increase in the wage base or benefit
                  levels that take effect after his date of termination of
                  employment, subject to the following:

                  (i)      If retirement is subsequent to age 65, the
                           Participant's Primary Social Security Benefit shall
                           be determined without regard to any increases in the
                           wage base or benefit levels occurring after his 65th
                           birthday, or any increases resulting from the delayed
                           commencement of Social Security benefit payments
                           beyond age 65.

                  (ii)     If employment terminates prior to eligibility for
                           Early Retirement, the Participant's Primary Social
                           Security Benefit shall be calculated by assuming
                           continuation of his Earnings until age 65 at the same
                           rate as in effect at termination of employment. If
                           employment terminates after eligibility for Early
                           Retirement, the Participant's Primary Social Security
                           Benefit shall be estimated by assuming no further
                           Earnings. However, if employment terminates because
                           of Disability and the Participant qualifies for a
                           Disability Insurance Benefit under the Social
                           Security Act, the Primary Social Security Benefit
                           shall be the monthly amount payable as a Disability
                           Insurance Benefit.

                  (iii)    If records of a Participant's compensation for any
                           years prior to termination of employment or
                           retirement are not reasonably accessible from the
                           records of the Employer, then for the purposes of
                           calculating a Primary Social Security Benefit
                           hereunder, the amount of compensation for such years
                           shall be

                                      105
<PAGE>
                           assumed. The assumed compensation for any given year
                           shall be equal to the Participant's compensation in
                           the earliest calendar year for which compensation
                           records are available, reduced on a compounded basis
                           by 6% for each year that the year in question
                           precedes the earliest year for which compensation
                           records are available. In lieu of such assumed
                           compensation, actual wages will be used if, within
                           the time period described below, a Participant
                           furnishes the Committee with an accurate record of
                           his actual wages. The Committee shall notify a
                           Participant of his right to provide the Committee
                           with an accurate record of his actual wages and the
                           Participant shall have 180 days from the later of his
                           termination of employment with all Employers and
                           Affiliates or the date of such Committee
                           notification, to furnish the accurate record of his
                           actual wages.

                  (iv)     The Committee may adopt rules which do not conflict
                           with the previous provisions of this subsection, but
                           which govern the computation of a Primary Social
                           Security Benefit hereunder, and the fact that an
                           Employee does not actually receive such amount from
                           the Social Security Administration because of failure
                           to apply or continuance of work, or for any other
                           reason, shall be disregarded.

         (e)      "Prior Plan" shall mean the Stanadyne, Inc. Salaried Pension
                  Plan as it existed on February 9, 1989.

         (f)      "Retained Participant" shall mean a Participant who is not
                  covered by a collective bargaining agreement and had completed
                  more than 500 Hours of Service

                                      106
<PAGE>
                  immediately preceding his temporary inclusion in a factory
                  hourly payroll of an Employer.

         (g)      "Transferred Participant" shall mean any person who
                  immediately preceding his becoming an Employee eligible for
                  the Plan (a) was not covered by a collective bargaining
                  agreement, (b) was employed by an Employer or Stanadyne Inc.
                  ("Prior Employer") in a position ineligible to participate in
                  this Plan, and (c) had completed more than 500 Hours of
                  Service with such Employer or Prior Employer.

D.3      Service and Participation

         (a)      Each Eligible Employee on February 10, 1989, who was a
                  Participant under the Prior Plan on February 9, 1989, became a
                  Participant of the Prior Salaried Plan on February 10, 1989.

         (b)      Any Retained Participant shall continue to participate in this
                  Plan for a period of time not to exceed the period for which
                  he accrues Credited Service under Section 2.4(g). Thereafter
                  he shall not participate in this Plan unless and until he
                  again becomes eligible to participate pursuant to the other
                  provisions of Article II.

         (c)      Years of Service shall be accumulated for former participants
                  of the Prior Salaried Plan, in addition to Section 2.3, as
                  follows:

                           if an Employee became a participant in the Prior
                           Salaried Plan on February 10, 1989 and was a member
                           of the Prior Plan of February 9, 1989, such Employee
                           was credited with the Years of Service and fractions
                           thereof he had accumulated under the Prior Plan on
                           February 9, 1989 in accordance

                                      107
<PAGE>
                           with the provisions of the Prior Plan on such date.
                           In no event will an Employee receive duplicate
                           service credit for any period of employment.

         (d)      Years of Credited Service shall be accumulated for former
                  participants of the Prior Salaried Plan, in addition to
                  Section 2.4, as follows:

                  (i)      if an Eligible Employee became a Participant on
                           February 10, 1989 and was a member of the Prior Plan
                           on February 9, 1989, such Employee was credited with
                           the Years of Credited Service and fractions thereof
                           he had accumulated under the Prior Plan on February
                           9, 1989 in accordance with the provisions of the
                           Prior Plan on such date. In no event will an Employee
                           receive duplicate service credit for any period of
                           employment;

                  (ii)     for periods not already counted in (i) above, one
                           Year of Credited Service shall be earned by an
                           Eligible Employee for each calendar year in which he
                           has 1,000 or more Hours of Service;

                  (iii)    for periods not already counted in (i) or (ii) above,
                           a fractional Year of Credited Service (the numerator
                           of which fraction is the number of Years of Service
                           actually credited to the Employee during the Year of
                           Service, and the denominator of which is 1,000 Hours
                           of Service to the nearest 12th) shall be earned by an
                           Eligible Employee for each calendar year in which he
                           is a Participant and has less than 1,000 Hours of
                           Service as provided under Table A;

                  (iv)     the determination of Years and fractional Years of
                           Credited Service shall also include (1) the first six
                           months of a period of absence due to sick leave, (2)
                           a

                                      108
<PAGE>
                           period of Authorized Leave of Absence provided that
                           the Participant returns to employment within the
                           period of Authorized Leave of Absence, and (3) the
                           first six months of a Disability period and
                           thereafter, the portion of such continuing Disability
                           period which does not exceed the Participant's Years
                           of Credited Service on the date the Disability began;

                  (v)      if an Employee incurs a number of consecutive Breaks
                           in Service which exceeds the greater of five (5) or
                           the number of his Years of Service before such Breaks
                           in Service, he shall lose his previously accumulated
                           Years of Credited Service, prior to his initial Break
                           in Service, he was vested in retirement benefits
                           under a defined benefit plan maintained by the Prior
                           Employer or under this Plan in accordance with
                           Section 6.2.

                           Prior Years of Credited Service shall only be
                           restored under this Section D.3(d)(v) after the
                           Employee has completed 1,000 Hours of Service in a 12
                           month period following his Break in Service;

                  (vi)     a Transferred Participant shall be granted an
                           additional Year of Credited Service for each Year of
                           Credited Service accrued under subsections (i), (ii),
                           (iii) and (iv) of this Section D.3(d), except that no
                           such additional Year of Credited Service shall be
                           granted for any Year of Credited Service accrued
                           under this Plan for which the Transferred Participant
                           received Credited Service as a Retained Participant,
                           nor shall the Participant's total Years of Credited
                           Service exceed in the aggregate his Years of Service;
                           and

                                      109
<PAGE>
                  (vii)    a Retained Participant shall continue to accrue
                           Credited Service for a period of time not to exceed
                           the number of Years of Credited Service accrued under
                           subsections (i), (ii), (iii) and (iv) of this Section
                           D.3(d) reduced by any such Years of Credited Service
                           for which additional Credited Service was granted
                           under subsection (iv) of this Section D.3(d).

D.4      Normal Retirement Income. Participants who were former participants
         under the Prior Salaried Plan or who meet the eligibility criteria
         under Section D.1, shall be eligible for a benefit as follows:

         (a)      Subject to the minimum benefit provisions of Section D.4(b)
                  and the maximum benefits limitations under Section 3.3, a
                  Participant who retires on his Normal Retirement Date will be
                  entitled to receive a monthly retirement income on the life
                  annuity basis described in Section 8.4 equal to the greatest
                  of (i), (ii) or (iii) below, each of which shall be reduced by
                  (iv) below, where

                  (i)      is equal to one of the following

                           (I)      $14.00 multiplied by the Participant's Years
                                    of Credited Service for Appendix D
                                    Participants who terminated employment prior
                                    to July 1, 1989; or

                           (II)     $15.00 multiplied by the Participant's Years
                                    of Credited Service for Appendix D
                                    Participants who terminated employment on or
                                    after July 1, 1989, but prior to January 1,
                                    1997; or

                                      110
<PAGE>
                           (III)    $18.00 multiplied by the Participant's Years
                                    of Credited Service for Appendix D
                                    Participants who terminated employment on or
                                    after January 1, 1997, but prior to July 1,
                                    1999; or

                           (IV)     $19.00 multiplied by the Participant's Years
                                    of Credited Service for Appendix D
                                    Participants who terminated employment on or
                                    after July 1, 1999, but prior to July 1,
                                    2000; or

                           (V)      $21.00 multiplied by the Participant's Years
                                    of Credited Service for all other Appendix D
                                    Participants;

                  (ii)     is, but only with respect to a Participant who was a
                           member of the Prior Plan on December 31, 1984, 1.4%
                           of the Participant's Average Monthly Earnings
                           multiplied by his Years of Credited Service, less
                           1-1/4% of his Primary Social Security Benefit,
                           multiplied by the Years of Credited Service he would
                           have had at Normal Retirement Date (up to a maximum
                           of 40 such years) multiplied by a fraction, the
                           numerator of which is his Years of Credited Service
                           and the denominator of which is the Credited Service
                           he would have had at Normal Retirement Date;

                  (iii)    is 1.7% of the Participant's Average Monthly Earnings
                           multiplied by his Years of Credited Service up to a
                           maximum of 30 such years plus 1% of the Participant's
                           Average Monthly Earnings, multiplied by his years of
                           Credited Service in excess of 30 years, less 1.667%
                           of his Primary Social Security Benefit, multiplied by
                           his Years of Credited Service up to a maximum of 30
                           such years; and

                                      111
<PAGE>
                  (iv)     is (I) plus (II) where

                           (I)      is a portion of the monthly benefit payable
                                    to a Transferred Participant on a
                                    single-life annuity basis at his Normal
                                    Retirement Date from any other qualified
                                    defined benefit pension plan sponsored by an
                                    Employer or Prior Employer. Such portion
                                    shall be based on the number of Years of
                                    Credited Service under such other plan which
                                    is equal to the number of additional Years
                                    of Credited Service granted to the
                                    Participant under Section D.3(d)(vi),
                                    provided however that if the amount
                                    determined under (i), (ii) or (iii) above
                                    for such additional Years of Credited
                                    Service is less than the monthly pension
                                    from such other plan, the amount under this
                                    subsection (a)(iv)((I) shall be the amount
                                    credited under (i), (ii), or (iii) above for
                                    such Credited Service; and

                           (II)     is the monthly benefit, if any, payable to
                                    the Participant on his Normal Retirement
                                    Date on the life annuity basis from the
                                    Prior Plan under the Lincoln National Group
                                    Annuity Contract Number GA-5844 issued to
                                    the Prior Employer. The offset hereunder
                                    shall not cause a Participant's Accrued
                                    Benefit to be reduced below $0.

         For those Participants who have incurred a Break in Service under this
         Plan or the Prior Plan, the retirement income payable to such
         Participant shall be subject to Section 2.5 (e).

         The Participant's annual retirement income is subject to a reduction if
         a form of payment other than a life annuity is elected.

                                      112
<PAGE>
         (b)      Minimum Benefits

                  (i)      Under no circumstances shall the benefit under this
                           Plan for a Retained Participant or Transferred
                           Participant be less than the benefit he would have
                           been entitled to receive had he participated in any
                           other qualified defined benefit pension plan adopted
                           by an Employer in which he would otherwise have been
                           eligible to participate.

                  (ii)     For any Participant who was a member of the Prior
                           Plan on December 31, 1978, the combined retirement
                           income from the Plan and the Prior Plan on the
                           Participant's Normal Retirement Date shall not be
                           less than the accrued benefit under the Prior Plan as
                           of such date.

                  (iii)    For any Participant who had attained age 57 and had
                           completed at least 10 Years of Service as of December
                           31, 1978, the combined retirement income from the
                           Plan and the Prior Plan on the Participant's Normal
                           Retirement Date shall not be less than the benefit he
                           would have received under the benefit formula in
                           effect under the Prior Plan on December 31, 1978.

                                      113
<PAGE>
D.5      Early Retirement Income

         Participants who were former participants under the Prior Salaried Plan
         or who meet the eligibility criteria under Section D.1, shall be
         eligible for a benefit as follows:

         (a)      A Participant who retires on an Early Retirement Date may
                  elect to receive either an immediate Early Retirement Income
                  or a deferred retirement income commencing on the first day of
                  any month up to his Normal Retirement Date. The annual amount
                  of the Early Retirement Income on the life annuity basis
                  described in Section 8.4 shall be equal to (i) multiplied by
                  (ii) minus (iii) where:

                  (i)      is equal to the largest Normal Retirement Age benefit
                           determined under Sections D.4(a)(i), (ii) or (iii)
                           based on Credited Service, Average Monthly Earnings
                           and Primary Social Security Benefit calculated on the
                           Early Retirement Date;

                  (ii)     is 100% reduced by 1/2 of 1% for each month between
                           the Annuity Starting Date selected by the Participant
                           and the first of the month following his 62nd
                           birthday; and

                  (iii)    is the monthly benefit, if any, that would be payable
                           to the Participant on the life annuity basis from the
                           Prior Plan under the Lincoln National Group Annuity
                           Contract Number GA-5844 if such benefit commenced on
                           the same Annuity Starting Date selected for the
                           commencement of benefits from this Plan. Such
                           determination shall be made irrespective of the
                           actual starting date of benefits under the Prior Plan
                           or group annuity contract.

                                      114
<PAGE>
D.6      Vested Termination

         For purpose of determining a Participant's Accrued Benefit upon
         termination of employment, only the provisions of the Plan in effect at
         the time of such termination shall be considered, except that the
         benefit under Sections 3.2 and D.4 of this Appendix shall be determined
         based on the Average Monthly Earnings at the time of termination of
         employment, and the Credited Service he would have had assuming he
         remained in employment until his Normal Retirement Date, with such
         benefit multiplied by a fraction, the numerator of which is Credited
         Service and the denominator of which is the Credited Service he would
         have had if he remained in employment to Normal Retirement Date.

D.7      Preretirement Death Benefits

         D.7.1    Death Before Termination of Employment.

         (a)      If a Participant, who is an Employee, has attained age 57, is
                  vested in a benefit pursuant to Section 6.2 and dies before
                  any Plan benefit commences to him, a monthly retirement
                  benefit shall be payable to his surviving Spouse. The amount
                  of such benefit shall be determined as if:

                  (i)      the Participant had retired and elected retirement
                           income payments to begin on the first day of the
                           month coinciding with or next following his date of
                           death; and

                  (ii)     his Accrued Benefit was payable in the normal form
                           described under Section 8.1(b) with his Spouse as
                           Contingent Annuitant, entitled to receive 50% of the
                           amount of the Participant's retirement income subject
                           to any applicable early payment reductions under
                           Section D.5.

                                      115
<PAGE>
         The monthly retirement income payable to the Spouse pursuant to this
         Section D.7.1 shall not be less than $50 reduced by any death benefits
         payable to the Spouse from the Lincoln National Group Annuity Contract
         Number GA-5844.

         Unless the automatic lump sum provisions of Section 13.6 are
         applicable, payments hereunder shall begin to the Spouse on the first
         day of the month following the Participant's death and shall continue
         to be paid until the beginning of the month in which the Spouse dies.

         If a Participant dies after his Normal Retirement Date, but prior to
         his Postponed Retirement Date, his Spouse shall receive the benefit
         described above. If a Spouse's benefit is payable in accordance with
         the preceding sentence, no benefits will be payable under Article VIII.

         (b)      If a Participant who is an Employee has not attained age 57,
                  is vested in a benefit pursuant to Section 6.2 and dies before
                  any Plan benefit commences to him, a monthly benefit will be
                  payable to his surviving Spouse. The monthly retirement income
                  payable to the Spouse pursuant to this Section D.7.1(b) shall
                  not be less than $50 reduced by the monthly death benefit, if
                  any, payable to such Spouse under the Lincoln National Annuity
                  Group Contract Number GA-5844. If greater, the amount of such
                  benefit shall be determined as follows:

                  (i)      if the Employee dies after attaining age 50, his
                           Accrued Benefit shall be reduced by the sum of (A)
                           and (B) where:

                           (A)      is 1/3 of 1% for each month between the date
                                    the benefit hereunder commences and the date
                                    the Participant would have attained age 57;
                                    and

                                      116
<PAGE>
                           (B)      is 30%.

                           The Accrued Benefit reduced as indicated above, but
                           not reduced in any other manner for early
                           commencement, shall be converted to the Actuarial
                           Equivalent normal form for a married Participant
                           under Section 8.1(b). Unless the automatic lump sum
                           provisions of Section 13.6 are applicable, the 50%
                           Contingent Annuitant's portion of such benefit shall
                           be payable monthly to the Spouse beginning with the
                           month following the Participant's death. Such benefit
                           shall continue to be paid until the beginning of the
                           month in which the Spouse dies.

                  (ii)     if the Employee dies prior to age 50, his Accrued
                           Benefit as of his date of death shall be reduced in
                           accordance with paragraphs (A) and (B) of paragraph
                           (i) above as if he had attained age 50 on the date of
                           his death.

                           The Accrued Benefit shall not be reduced in any other
                           manner for early commencement but shall be converted
                           to the Actuarial Equivalent normal form for a married
                           Participant under Section 8.1(b). Unless the
                           automatic lump sum provisions of Section 13.6 are
                           applicable, the 50% Contingent Annuitant's portion of
                           such benefit shall be payable monthly to the Spouse
                           beginning with the month following the month in which
                           the Participant would have attained age 50. Such
                           benefit shall continue to be paid until the beginning
                           of the month in which the Spouse dies.

D.7.2    Death After Termination of Employment. If a Participant is vested in a
         benefit pursuant to Section 6.2, terminates from the Employer for
         reasons other than death and dies before Plan

                                      117
<PAGE>
         benefits commence, a monthly retirement benefit shall be payable to his
         Spouse. The monthly retirement income payable to the Spouse, pursuant
         to this Section D.7.2, shall never be less than $50 reduced by the
         death benefits, if any, payable to such Spouse under the Lincoln
         National Group Annuity Contract Number GA-5844. If greater, the amount
         of such benefit shall be determined as if:

         (a)      the Participant had survived to the later of age 57 or his
                  actual date of death;

         (b)      retired electing immediate payment of his Accrued Benefit
                  under the normal form described in Section 8.1(b), with his
                  Spouse as the Contingent Annuitant, entitled to receive 50% of
                  the amount of the Participant's retirement income; and then

         (c)      died.

         The amount of the Participant's Accrued Benefit upon which the Spouse's
         benefit is determined in accordance with Section D.7.2(b) shall be
         adjusted pursuant to Section D.5 or 6.3, as applicable, based on the
         age the Participant would have attained on the date the Spouse's
         benefit commences to be paid.

         Unless the automatic lump sum provisions of Section 13.6 are
         applicable, payments hereunder shall begin to the Spouse on the first
         day of the month following the later of the Participant's death or the
         date he would have attained age 57, whichever is applicable, and shall
         continue to be made on the first day of each month thereafter during
         the Spouse's lifetime.

         If a benefit is payable under Section D.7.1, no benefit shall be
         payable under this Section D.7.2.

                                      118
<PAGE>
D.7.3    Grandfathered Death Benefit. Notwithstanding the provisions of Sections
         D.7.1 and D.7.2, in the case of a Participant who was a member of the
         Prior Plan on December 31, 1983 and dies prior to the commencement of
         benefits from the Plan or Prior Plan, if the provisions of the second
         paragraph of Section 6.6 of the Prior Plan as in effect on December 31,
         1983 will result in a greater benefit for such Participant's surviving
         Spouse based on the Participant's Credited Service as of December 31,
         1983, then such surviving Spouse shall be entitled to such greater
         benefit upon the Participant's death in lieu of the benefits provided
         under Sections D.7.1 and D.7.2.

D.7.4    Death Benefits After Retirement Income Commences. If a Participant dies
         after his Annuity Starting Date, death benefits, if any, shall be
         payable to the Participant's surviving Spouse strictly in accordance
         with the form of benefit which had been in effect prior to the
         Participant's death, except as provided below.

         Notwithstanding any other provision of the Plan, if a Participant was a
         member of the Prior Plan on December 31, 1983 and he commences to
         receive his retirement income in the form of a single life annuity
         described in Section 8.4 and then dies, a special minimum death benefit
         may apply. If the provisions of the third and fourth paragraphs of
         Section 6.6 of the Prior Plan in effect on December 31, 1983 will
         result in a death benefit for such Participant's surviving Spouse based
         on such Participant's Credited Service as of December 31, 1983, then
         such Spouse will be entitled to such benefit hereunder upon the death
         of the Participant.

D.8      Grandfathered Optional Form of Payment for Certain Participants

Subject to the provisions of Section 8.1, and to the extent consistent with Code
Section 401(a)(9) and the regulations thereunder if a Participant in this Plan
who was a Participant in the Prior Plan as of

                                      119
<PAGE>
December 31, 1983 made an optional election under Section 8.1 of the Prior Plan
as in effect on December 31, 1975 and did not revoke such election in accordance
with the first paragraph of Section 6.6 of the Prior Plan as in effect on
December 31, 1983, then such optional election shall be deemed a valid election
under this Plan and shall continue in effect or become effective and be
revocable subject to and in accordance with the first paragraph of Section 6.6
of the Prior Plan as in effect on December 31, 1983.

                                      120
<PAGE>
                                  APPENDIX D-2

                              STANADYNE CORPORATION
                                  PENSION PLAN
                     SALARIED EMPLOYEES COVERED BY THE PLAN

                  Stanadyne Corporate Office

                  Tallahassee Plant

                  Jacksonville Plant

                  Washington Plant

                  Elmhurst

                  Windsor Plant

                  Garrett Plant

                                      121
<PAGE>
                                   APPENDIX E

                              STANADYNE CORPORATION
                                  PENSION PLAN
                  CONTINGENT ANNUITANT OPTION REDUCTION FACTORS
                            NORMAL FORM LIFE ANNUITY

<TABLE>
<CAPTION>
                                                Contingent Annuitant Option
                                           100%          75%           50%
                                           Continued     Continued     Continued
Optional Form                              to CA         to CA         to CA
<S>                                        <C>           <C>           <C>
Factor to be used for Employee with a
Contingent Annuitant the same age as
the Participant                            .80           .84           .88

Increase (Decrease) for each year
Contingent Annuitant is older
(younger) than Participant                 .01           .008          .006

Minimum Factor                             .68           .74           .81

Maximum Factor                             .91           .93           .95
</TABLE>

                                      122
<PAGE>
                                     TABLE A

                              FRACTIONAL YEAR TABLE

                           Benefit and Vesting Accrual
                    1,000 hours to the nearest 1/12 of a year

<TABLE>
<CAPTION>
                                      SERVICE AND CREDITED SERVICE
                                      ----------------------------
                Months                  Nearest           Decimal
                Worked     Hours     1/12 of a Year      Equivalent
                ------     -----     --------------      ----------
<S>                        <C>       <C>                 <C>
                   1         190            1               .167
                   2         380            2               .417
                   3         570            3               .583
                   4         760            4               .750
                   5         950            5               .917
                   6       1,140            6              1.000
                   7       1,330            7              1.000
                   8       1,520            8              1.000
                   9       1,710            9              1.000
                  10       1,900           10              1.000
                  11       2,090           11              1.000
                  12       2,280           12              1.000
</TABLE>

                                      123

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