Document:

Exhibit 10.230

                            Executive Incentive Plan
                                       of
                             U.S. Trust Corporation

           As Amended and Restated effective as of January 1, 2001

1.        Purpose

The Plan  hereinafter  set forth  represents  a  continuation  of the  Executive
Incentive Plan maintained by U.S. Trust  Corporation  before its merger with The
Charles Schwab Corporation pursuant to the Agreement and Plan of Merger dated as
of January 12, 2000.

The purpose of the Executive  Incentive  Plan of U.S.  Trust  Corporation  is to
encourage  greater focus on  performance  among the key executives of U.S. Trust
Corporation  and its Affiliated  Companies by relating a significant  portion of
their total  compensation to the  achievement of annual  financial and strategic
objectives.

2.        Definitions

As used herein, the following terms shall have the following meanings:

          "Affiliated  Companies"  shall mean United States Trust Company of New
          York,  and each other  direct or  indirect  subsidiary  of U.S.  Trust
          Corporation.

          "Average Market Value" shall mean, with respect to one share of Common
          Stock as of any date or with  respect to any period,  the mean between
          the  per-share  high and low prices for the Common Stock on such date,
          or the average of the mean between such prices on each day during such
          period,  as quoted on the New York Stock  Exchange,  or, if the Common
          Stock is not traded on such system, on other such securities market or
          securities  exchange on which such shares are traded as the  Committee
          shall determine.

          "Award"  shall mean a payment  earned by a  Participant  in accordance
          with the provisions of the Plan.

          "Beneficiary"  shall  mean  the  person  or  persons  designated  by a
          Participant  in accordance  with Section 10 to receive any amount,  or
          Common Stock, payable under the Plan upon the Participant's death.

          "Board  of  Directors"  shall  mean  the  Board  of  Directors  of the
          Corporation.

          "Change in Control"  shall mean that any of the  following  events has
          occurred:

               (i)  A change in control of the  Company  required to be reported
                    pursuant  to Item 6(e) of  Schedule  14A of  Regulation  14A
                    under the  Securities  Exchange Act of 1934, as amended (the
                    "Exchange Act");

               (ii) A change in the composition of the Board of Directors of the
                    Company,  as a result of which fewer than  two-thirds of the
                    incumbent  directors  are  directors who either (i) had been
                    directors  of the Company 24 months  prior to such change or
                    (ii) were elected,  or nominated for election,  to the Board
                    of Directors of the Company with the affirmative votes of at
                    least a majority of the directors who had been  directors of
                    the  Company  24 months  prior to such  change  and who were
                    still in office at the time of the election or nomination;

               (iii)Any  "person"  (as such term is used in  sections  13(d) and
                    14(d) of the  Exchange  Act) becomes the  beneficial  owner,
                    directly  or  indirectly,   of  securities  of  the  Company
                    representing 20 percent or more of the combined voting power
                    of the Company's then outstanding securities ordinarily (and
                    apart from  rights  accruing  under  special  circumstances)
                    having  the right to vote at  elections  of  directors  (the
                    "Base Capital Stock"); provided, however, that any change in
                    the  relative  beneficial  ownership  of  securities  of any
                    person  resulting  solely from a reduction in the  aggregate
                    number of outstanding  shares of Base Capital Stock, and any
                    decrease   thereafter   in  such   person's   ownership   of
                    securities, shall be disregarded until such person increases
                    in  any  manner,  directly  or  indirectly,   such  person's
                    beneficial ownership of any securities of the Company.

          "Committee"  shall mean the  Committee,  as  constituted  from time to
          time, appointed by the senior management of the Corporation and or the
          Company to administer the Plan.

          "Common Stock" shall mean the common shares ($.01 par value per share)
          of the Company.

          "Company"  shall  mean The  Charles  Schwab  Corporation,  a  Delaware
          corporation.

          "Corporation"  shall mean the U.S. Trust  Corporation,  a wholly owned
          subsidiary of the Company.

          "Determined  Value"  shall mean the highest  price per share of Common
          Stock  paid in  connection  with any  Change  in  Control  (including,
          without   limitation,   prices  paid  in  any  subsequent   merger  or
          combination with any entity that acquire control of the Company.

          "Executive  Deferred  Compensation  Plan"  shall  mean  the  Executive
          Deferred Compensation Plan of U.S. Trust Corporation.

          "401(k)  Plan"  shall mean the 401(k)  Plan and ESOP of United  States
          Trust Company of New York and Affiliated Companies.

          "Participant"  shall mean an officer of the  Corporation or any of its
          Affiliated Companies who is selected to participate in the Plan.

          "Plan"  shall  mean  the  Executive   Incentive  Plan  of  U.S.  Trust
          Corporation, as set forth herein and as amended from time to time.

          "Plan Year" shall mean each calendar year.

          "Prior Plan" shall mean the  Executive  Incentive  Plan of U.S.  Trust
          Corporation, as in effect prior to January 1, 2001.

          "Restricted  Unit" shall mean a unit of measurement  equivalent to one
          share  of  Common  Stock,  with  none  of the  attendant  rights  of a
          shareholder of such share, including, without limitation, the right to
          vote such share and the right to receive dividends thereon,  except to
          the extent otherwise specifically provided herein.

          "Vesting  Date"  shall  mean,  with  respect to any  Restricted  Units
          granted to a Participant hereunder,  the date on which such Restricted
          Units become vested, as provided in Section 5(d) or Section 8(e).

3.        Participation

Participants  in the Plan  shall be  limited  to those  officers  of U.S.  Trust
Corporation  and  its  Affiliated  Companies  who  the  Committee,  in its  sole
discretion, selects to participate in the Plan.

The Committee may select as a Participant for any Plan Year, any officer who, in
the sole judgment of the Committee,  is expected to make  contributions that are
critical to the success of U.S. Trust  Corporation and its Affiliated  Companies
and to the growth of their business.

Any  person  who has been  selected  as a  Participant  for any Plan Year  shall
continue to be a Participant  in the Plan for each  subsequent  Plan Year during
the period of his or her employment,  subject, however, to the Committee's right
to terminate  such  individual's  participation  in the Plan as of any Plan Year
commencing  after the date on which the  Committee  makes its  determination  to
terminate such individual's participation.

4.        Awards

Awards for any Plan Year beginning on or after January 1, 2001 shall be made in
accordance with the following provisions:

          (a)  The  Committee  shall  establish  in  writing  (i) the  corporate
               performance  goal (the  "Performance  Goal")  that will  apply in
               determining  the Awards for the year,  (ii) the aggregate  amount
               that will be available for Awards for the year if the Performance
               Goal is  achieved  (the  "Target  Awards  Pool"),  and  (iii) the
               percentages  of the  Target  Awards  Pool  that  will  in fact be
               available  for  Awards  for  the  year  based  on  the  level  of
               achievement of the  Performance  Goal,  which  percentages may be
               greater  than 100% if the  Performance  Goal is exceeded and less
               than 100% if the  Performance  Goal has not been  fully  achieved
               (the "Actual Awards Pool").

          (b)  The Performance  Goal to be established for the year shall be the
               achievement  of such  income  goals  for the  Corporation  as the
               Committee shall determine.

          (c)  The Target  Awards Pool to be  established  for the year shall be
               determined by the Committee as a percentage or percentages of the
               aggregate  base salary earned for the year while a Participant of
               all  Participants,   either  individually  or  by  categories  of
               Participants,  provided  that  the  Committee  may,  in its  sole
               discretion,  also apply such  percentage or  percentages to other
               current or deferred compensation shall be counted.

          (d)  As of the end of the Plan Year, the Committee shall determine the
               extent  to which the  Performance  Goal for the year has been met
               and,  based  thereon,  the amount of the Actual Awards Pool.  The
               Committee  shall not have any  discretion  to increase the Actual
               Awards Pool,  as so  determined,  but the  Committee  may, in its
               discretion,  reduce the amount of the Actual  Awards Pool,  as so
               determined, to reflect any events, circumstances or factors which
               the Committee believes to be appropriate in determining the total
               amount to be made  available for Awards to  Participants  for the
               year.

          (e)  After  determining  the Actual  Awards  Pool in  accordance  with
               Section  4(d),  the Committee  shall  determine the amount of the
               Award,  if any,  earned  for the  year  by each  Participant,  in
               accordance with the following rules:

               (i)  The amount of the  Award,  if any,  earned by a  Participant
                    other than a covered  employee  of the  Company for the year
                    shall be determined  by the  Committee,  in its  discretion,
                    based on the level of each such Participant's achievement of
                    the goals and objectives  established for the Participant at
                    the  start  of the  year and on such  other  factors  as the
                    Committee deems  appropriate.  The individual goals for each
                    such  Participant  for each Plan Year shall be set, and such
                    Participant's  performance  relative  to such goals shall be
                    measured, by the Committee based upon the recommendations of
                    the Chief Executive Officer.

               (ii) The  Committee  may,  in  its  discretion,  make  Awards  to
                    Participants in an aggregate  amount less than the amount of
                    the Actual  Awards  Pool.  The  Committee  may also,  in its
                    discretion,  allocate any portion of the Actual  Awards Pool
                    for  use  in  making  special   additional   Awards  to  any
                    Participant  who is not a Covered  Executive or to any group
                    of such Participants.

               (iii)Notwithstanding  any other provision herein to the contrary,
                    the amount of the Award payable to any  Participant  for any
                    year shall not exceed $2.5  million,  as  adjusted  annually
                    beginning  in 1998 to reflect  percentage  increases  in the
                    Customer Price Index.

               (iv) A Participant who terminates employment with the Corporation
                    and its  Affiliated  Companies  prior to the end of any Plan
                    Year shall  receive  such  portion of an Award,  if any, for
                    that year as the Committee shall determine.

          (f)  All actions taken by the Committee  hereunder in determining  the
               Awards payable to  Participants  for each year shall be reflected
               in the  minutes of the  meetings of the  Committee  at which such
               actions were taken.

5.        Payment of Awards

The amount  payable  hereunder to a Participant  with respect to an Award earned
for any Plan Year  beginning on or after  January 1, 2000 shall be determined in
accordance with the following provisions:

          (a)  The amount payable with respect to a Participant's  Award for any
               Plan Year  beginning  on or after  January  1, 1999  shall be the
               total amount of the Award earned by the Participant.

          (b)  The amount  payable with  respect to a  Participant's  Award,  as
               determined  under (a) above,  shall be payable partly in cash and
               partly in the form of a mandatory  deferred  contribution  to the
               Executive  Deferred  Compensation  Plan of U.S. Trust Corporation
               (the   portions  so  payable   are   hereinafter   referred   to,
               respectively, as the "Cash Portion" and the "Restricted Portion",
               of the Participant's Award), in such percentages as the Committee
               in its discretion shall determine;  provided,  however,  that the
               Restricted  Portion shall be equal to at least 25%, and shall not
               exceed  50% of the total  amount so payable  with  respect to the
               Participant's Award. Notwithstanding the foregoing and solely for
               the Plan Year ending  December 31, 2000, a Participant  may elect
               to receive the Restricted  Portion of the Participant's  Award in
               the form of Restricted  Units.  The obligation of the Corporation
               and its Affiliated  Companies under this Plan with respect to the
               award  of  a  mandatory  deferred  contribution  shall  be  fully
               discharged   upon  the  crediting  of  such  mandatory   deferred
               contribution  to the  Participant's  Account  under the Executive
               Deferred  Compensation  Plan in  accordance  with the  applicable
               provisions of such plan.

          (c)  If a Participant  elects to receive  Restricted Units, the number
               of Restricted  Units to be granted to a Participant  with respect
               to the  Restricted  Portion of the  Participant's  Award shall be
               determined  by  dividing  the  dollar  amount  of the  Restricted
               Portion of the Participant's Award by the Average Market Value of
               one  share of  Common  Stock on the date on which  the  Committee
               makes its  determination of the Awards earned by Participants for
               the Plan Year in question.

          (d)  The mandatory deferred  contribution or grant of Restricted Units
               with respect to the Restricted  Portion of a Participant's  Award
               for any Plan Year shall be evidenced  by a written  notice to the
               Participant  specifying  the  amount  of the  mandatory  deferred
               contribution  or the number of  Restricted  Units  granted to the
               Participant,  and the  date of such  contribution  or  grant.  In
               addition to other such terms and  conditions as the Committee may
               require  in  such  notice,   the   Restricted   Portion  of  each
               Participant's  award  hereunder shall be subject to the following
               terms and conditions:

               (i)  The mandatory  deferred  contribution  or  Restricted  Units
                    covered  by such  grant  shall  become  vested  on the fifth
                    anniversary of the date of award or grant, or if earlier, on
                    the date of the Participant's death,  permanent  disability,
                    or retirement on or after the date on which the  Participant
                    attains age 65.

               (ii) Until the Vesting Date for the  Restricted  Units covered by
                    such grant, additional Restricted Units shall be credited to
                    the  Participant,  with respect to the  Restricted  Units so
                    granted,  as of each  date on which the  Corporation  pays a
                    dividend on its Common Stock ("Dividend  Payment Date"). The
                    number of additional  Restricted  Units to be credited shall
                    be  determined by first  multiplying  (A) the sum of (1) the
                    number of Restricted Units covered by such a grant, plus (2)
                    the total number of additional  Restricted Units credited to
                    the Participant  with respect to such Restricted Units prior
                    to such Dividend  Payment Date, by (B) the per-share  dollar
                    amount  of the  dividend  so paid,  and then,  dividing  the
                    resulting amount by the Average Market Value of one share of
                    Common Stock on the Dividend  Payment Date.  Any  additional
                    Restricted Units credited to the Participant with respect to
                    the  Restricted  Units  covered by such grant  shall  become
                    vested  on the  Vesting  Date  for the  Restricted  Units so
                    granted.

               (iii)If  the  Restricted  Units  covered  by  such  grant  become
                    vested,  payment with respect to such Restricted  Units, and
                    with respect to the additional  Restricted Units credited to
                    the  Participant   under  (ii)  above  in  respect  of  such
                    Restricted Units, shall be made as soon as practicable after
                    the Vesting Date for the Restricted Units so granted, except
                    as otherwise  provided in (iv) below.  Subject to provisions
                    of  Section  5(f),  payment  shall  be made in the form of a
                    single lump sum payment consisting of (A) a number of shares
                    equal to the total  number of whole  Restricted  Units  that
                    become vested on such Vesting  Date,  and (B) a cash payment
                    in an amount  determined by  multiplying  (1) the fractional
                    part  of a  Restricted  Unit  that  becomes  vested  on such
                    Vesting Date,  by (2) the Average  Market Value of one share
                    of Common Stock on such Vesting Date.

               (iv) To the extent that the  Participant  has elected,  under the
                    applicable  provisions of the Deferred  Restricted Unit Plan
                    of U.S. Trust Corporation,  to defer payment with respect to
                    any Restricted Units that become vested,  the  Corporation's
                    obligation  under this Plan for making  payment with respect
                    to such Restricted  Units shall be fully discharged upon the
                    crediting  of such  Restricted  Units  to the  Participant's
                    account   under  the  Deferred   Restricted   Unit  Plan  in
                    accordance with the applicable provisions of such Plan.

               (v)  In the event that the  Participant's  employment  terminates
                    for any reason prior to the Vesting Date for the  Restricted
                    Units covered by such a grant,  the Restricted Units covered
                    by  such  a  grant,  and  any  additional  Restricted  Units
                    credited to the Participant under (ii) above with respect to
                    such  Restricted  Units,  shall be forfeited,  except to the
                    extent the Committee in its discretion otherwise determines.

          (e)  The Cash Portion of a Participant's Award for any Plan Year shall
               be paid in the form of a single lump sum cash  payment as soon as
               practicable after the end of such Plan Year, except to the extent
               that  the  Participant  (i) has  elected,  under  the  applicable
               provisions  of the 401(k) Plan,  to have any part of such portion
               of such Award  reduced,  and to have an amount equal to such part
               contributed to the 401(k) Plan on the Participant's behalf and/or
               (ii)  has  elected,   under  the  applicable  provisions  of  the
               Executive  Deferred  Compensation Plan, to defer any part of such
               portion of such Award.

          (f)  With  respect to that part of the Cash  Portion of any Award that
               is subject to a Participant's  election under the 401(k) Plan, an
               amount  equal  to  such  part  of  the  Cash  Portion   shall  be
               contributed to the 401(k) Plan on behalf of the Participant;  and
               thereupon,  the obligation of the  Corporation and its Affiliated
               Companies  with  respect  to  payment  of such  part of the  Cash
               Portion of the Award shall be fully discharged.  However, no such
               contribution  shall  be made to the  extent  it would  cause  any
               limitation applicable under the 401(k) Plan to be exceeded.

          (g)  With  respect to that part of the Cash  Portion of any Award that
               is  subject  to a  Participant's  election  under  the  Executive
               Deferred Compensation Plan, the obligation of the Corporation and
               its Affiliated  Companied under this Plan with respect to payment
               of such  part of the Cash  Portion  of the  Award  shall be fully
               discharged upon the crediting of such part of the Cash Portion of
               the  Award  to the  Participant's  account  under  the  Executive
               Deferred  Compensation  Plan in  accordance  with the  applicable
               provisions of such Plan.

          (h)  All  liabilities  in  respect  to the Cash  Portion of the Awards
               earned by Participants  under the Plan shall be discharged by the
               respective Affiliated Companies employing such Participants.

6.        Certain Adjustments to Plan Shares

In the event of any change in the Common Stock by reason of any stock  dividend,
recapitalization,  reorganization,  merger, consolidation, split-up, combination
or exchange of shares,  or and rights  offering  to purchase  Common  Stock at a
price substantially below fair market value, or any similar change affecting the
Common Stock,  the number and kind of shares  represented  by  Restricted  Units
shall be  appropriately  adjusted  consistent with such change in such manner as
the Committee, in its sole discretion, may deem equitable to prevent substantial
dilution  or  enlargement  of the  rights  granted  to, or  available  for,  the
Participants  hereunder.  The Committee shall give notice to each Participant of
any  adjustment  made  pursuant to this  Section  and,  upon such  notice,  such
adjustment shall be effective and binding for all purposes.

7.        Listing and Qualification of Common Stock

The  Company,  in its  discretion,  may  postpone  the  issuance,  delivery,  or
distribution  of Common  Stock  pursuant  to a grant of  Restricted  Units until
completion of such stock exchange listing or other  qualification of such shares
under any state or federal law,  rule or  regulation as the Company may consider
appropriate,  and may  require  any  Participant  or  Beneficiary  to make  such
representations  and furnish such information as it may consider  appropriate in
connection  with the  issuance  or  delivery  of the shares in  compliance  with
applicable laws, rules and regulations.

8.        Change in Control

Notwithstanding  any  other  provision  in the  Plan to the  contrary,  upon the
occurrence of a Change in Control, the following provisions shall apply.

          (a)  All  Performance  Goals and individual  goals and objectives with
               respect to the Plan Year in which the  Change in  Control  occurs
               (the "Year of Change")  shall be deemed to have been  attained to
               the full and maximum  extent,  and the Actual Awards Pool for the
               Year of Change  shall be  determined  by  multiplying  the Target
               Awards  Pool  for such  year by the  highest  percentage  thereof
               established  by  the  Committee   under  Section   4(a)(iii)  for
               determining the amount of the Actual Awards Pool for such year.

          (b)  Unless  another   formula  shall  have  been  designated  by  the
               Committee prior to the Change in Control,  each Participant shall
               be allocated a portion of the Actual  Awards Pool for the Year of
               Change,  as  determined  under (a) above,  equal to the amount of
               such Actual Awards Pool, multiplied by a fraction.  The numerator
               of which is the portion of the anticipated annual compensation of
               the Participant  which was taken into account by the Committee in
               determining  the Target  Awards Pool for the Year of Change,  and
               the  denominator  of  which  is the sum of such  amounts  for all
               Participants.

          (c)  As soon as  practicable  following  the  Change in  Control,  all
               Awards  which  are  deemed  to have  been  earned to the full and
               maximum extent upon the occurrence of the Change in Control shall
               be payable in full in single cash lump sums, reduced by any taxes
               withheld pursuant to Section 9.

          (d)  No  Awards  payable  in  accordance  with this  Section  shall be
               forfeitable  on  account  of  a   Participant's   termination  of
               employment upon or following the Change in Control.

          (e)  All  Restricted  Units  granted  or  credited  to  a  Participant
               hereunder  that had not  previously  become  vested  shall become
               vested upon the occurrence of the Change in Control.

          (f)  The  Corporation  shall  make  payment to each  Participant  with
               respect to all of the  Restricted  Units  standing  to his or her
               credit  under the Plan at the time of the Change in Control.  The
               amount  to be  paid  to  each  Participant  shall  be  an  amount
               determined  by  multiplying  the  aggregate  number of Restricted
               Units then standing to the Participant's credit by the Determined
               Value of one share of Common  Stock.  All amounts  payable to the
               Participants  pursuant to this Section 8(f), reduced by any taxes
               withheld   pursuant   to   Section  9,  shall  be  paid  to  such
               Participants  as soon as  practicable  following  the  Change  in
               Control.

9.        Taxes

The Corporation or any of its Affiliated  Companies may make such provisions and
take such steps as it may deem necessary or appropriate  for the  withholding of
all federal,  state and local taxes  required by law to be withheld with respect
to amounts  payable under the Plan  including,  but not limited to (i) deducting
the amount so required to be withheld  from any other amount then or  thereafter
payable to a Participant or Beneficiary,  and/or (ii) requiring a Participant or
Beneficiary to pay to the  Corporation  or any of its  Affiliated  Companies the
amount so required to be withheld as a condition of the issuance,  delivery,  or
distribution  of any Common  Stock.  The  Committee may permit such amount to be
paid in Common Stock previously  owned by the  Participant,  or a portion of the
Common Stock that otherwise would be distribution to such Participant in respect
to his or her vested  Restricted Units, or a combination of cash and such Common
Stock.

10.       Designation and Change of Beneficiary

Each Participant  shall file with the Committee a written  designation of one or
more persons as the Beneficiary who shall be entitled to receive any amount,  or
any Common Stock,  payable  under the Plan upon his or her death.  A Participant
may,  from time to time,  revoke or change  his or her  Beneficiary  designation
without the consent of any  previously  designated  Beneficiary  by filing a new
designation  with the  Committee.  The last  such  designation  received  by the
Committee  shall be controlling;  provided,  however,  that no  designation,  or
change  or  revocation  thereof,  shall  be  effective  unless  received  by the
Committee  prior  to the  Participant's  death,  and  in no  event  shall  it be
effective as of a date prior to such receipt.  If at the date of a Participant's
death,  there is no designation  of a Beneficiary in effect for the  Participant
pursuant to the provisions of this Section 10, or if no  Beneficiary  designated
by the Participant in accordance with the provisions  hereof survives to receive
any  amount,  or any  Common  Stock,  payable  under  the Plan by  reason of the
Participant   death,   the   Participant's   estate  shall  be  treated  as  the
Participant's Beneficiary for purposes of the Plan.

11.       Payments to Persons Other Than Participant

If the  Committee  shall find that any person to whom any amount,  or any Common
Stock,  is  payable  under  the Plan is  unable  to care for his or her  affairs
because of illness,  accident or legal  incapacity,  then,  if the  Committee so
directs,  any payment due to such  person may be paid to such  person's  spouse,
child or other  relative,  an institution  maintaining or having custody of such
person,  or any other person deemed by the Committee to be a proper recipient on
behalf of such  person,  unless a prior  claim for  payment of such  amount,  or
payment  of  such  Common  Stock,  has  been  made  by a  duly  appointed  legal
representative of such person. Any such payment shall be a complete discharge of
the liability of the Corporation or the applicable Affiliated Company therefor.

12.       Rights of Participants

A  Participant's  rights  and  interests  under the Plan shall be subject to the
following provisions:

          (a)  A  Participant  shall  have the  status  of a  general  unsecured
               creditor of the  Corporation  with respect to his or her right to
               receive any payment under the Plan.  The Plan shall  constitute a
               mere  promise by the  Corporation  or the  applicable  Affiliated
               Company to make  payments in the future of the benefits  provided
               for herein.  It is intended  that the  arrangements  reflected in
               this Plan be treated as unfunded for tax purposes, as well as for
               purposes of any applicable provisions of Title I of ERISA.

          (b)  A  Participant's  rights to payments  under the Plan shall not be
               subject  in  any  manner  to  anticipation,   alienation,   sale,
               transfer,   assignment,   pledge,  encumbrance,   attachment,  or
               garnishment  by  creditors  of  the  Participant  or  his  or her
               Beneficiary.

          (c)  Neither  the  Plan  nor  any  action  taken  hereunder  shall  be
               construed as giving any  Participant  any right to be retained in
               the  employment  of the  Corporation  or  any  of its  Affiliated
               Companies.

          (d)  No  Participant  shall have the right,  by virtue of having  been
               selected  as a  Participant  in  the  Plan,  to be  automatically
               entitled to receive an Award for any Plan Year.

          (e)  No Award shall be considered as  compensation  under any employee
               benefit  plan  of  the  Company,  the  Corporation  or any of its
               Affiliated Companies, except as specifically provided in any such
               plan or as otherwise determined by the Board of Directors.

13.       Administration of the Plan

The Plan shall be  administered  by the Committee.  A majority of the members of
the  Committee  shall  constitute a quorum.  The Committee may act at a meeting,
including a telephone  meeting,  by action of a majority of the members present,
or  without  a  meeting  by  unanimous  written  consent.  In  addition  to  the
responsibilities and powers assigned to the Committee elsewhere in the Plan, the
Committee  shall have the  discretionary  authority and power to establish  from
time to time  guidelines  or  regulations  for the  administration  of the Plan,
interpret  the  Plan,  and  make  all  determinations  considered  necessary  or
advisable  for the  administration  of the Plan.  The Committee may delegate any
ministerial or nondiscretionary function pertaining to the administration of the
Plan to any one or more officers of the Corporation.

All decisions,  actions or interpretations of the Committee under the Plan shall
be final,  conclusive  and binding upon all parties.  No member of the Committee
shall be  personally  liable  by  reason  of any  contract  or other  instrument
executed  by such  member or on his or her  behalf in his or her  capacity  as a
member of the Committee nor for any mistake of judgment made in good faith,  and
the  Corporation  shall indemnify and hold harmless each member of the Committee
and each employee, officer, director or trustee of the Corporation or any of its
Affiliated Companies to whom any duty or power relating to the administration or
interpretation  of the  Plan  may be  delegated,  against  any  cost or  expense
(including counsel fees) or liability (including any sum paid in settlement of a
claim with the  approval  of the Board of  Directors)  arising out of any act or
omission to act in connection with the Plan, unless arising out of such person's
own fraud or bad faith.

14.       Amendment or Termination

The Board of Directors  may, with  prospective  or  retroactive  effect,  amend,
suspend or  terminate  the Plan or any  portion  thereof at any time,  provided,
however, that no amendment,  suspension or termination of the Plan shall deprive
any  Participant of any rights to Awards  previously made under the Plan without
his or her written  consent.  Any amendment that the Board of Directors would be
permitted  to make  pursuant to the  preceding  sentence may also be made by the
Committee where  appropriate to facilitate the  administration of the Plan or to
comply with applicable law or any applicable rules and regulations of government
authorities,  provided  that  the cost of the  Plan to the  Corporation  and its
Affiliated Companies is not materially increased thereby.

15.       Governing Law

The Plan shall be governed by and construed in  accordance  with the laws of the
State of New York.Exhibit 10.231

               1989 Stock Compensation Plan and Predecessor Plans
                            Of U.S. Trust Corporation

                  As Amended and Restated through July 1, 1997

                             SECTION 1. INTRODUCTION

1.1  Purpose

     The Plan  hereinafter  set  forth  represents  a  continuation  of  certain
stock-based  compensation  plans maintained by U.S. Trust Corporation before its
merger with The Chase Manhattan  Corporation ("Chase") pursuant to the Agreement
and Plan of Merger dated as of November 18, 1994  between  Chase and U.S.  Trust
Corporation  (the  "Merger  Agreement").  The  plans  so  continued  are (i) all
portions of the 1989 Stock  Compensation  Plan of U.S. Trust  Corporation  other
than Section 2 thereof and any other  provisions of such plan to the extent they
relate to stock options (such  continued  portions are referred to herein as the
"Prior  Plan"),  (ii)  the  1988  Long-Term   Performance  Plan  of  U.S.  Trust
Corporation,  and (iii) the Long-Term Performance Plan of U.S. Trust Corporation
(the  plans  described  in  (ii)  and  (iii)  are  referred  to  herein  as  the
"Predecessor Plans").

     As set forth herein, the Prior Plan and the Predecessor Plans were amended,
restated  and  renamed  effective  as of  September  1, 1995 (a) to reflect  the
transfer of the Prior Plan and the  Predecessor  Plans to and their  adoption by
the  Corporation,  and  the  Corporation's  assumption  of and  becoming  solely
responsible for all liabilities and obligations of U.S. Trust  Corporation under
the Prior Plan and the Predecessor Plans, effective immediately before the "'New
Holdings Distribution",  as defined in the Merger Agreement,  (b) to consolidate
the Prior Plan and the Predecessor Plans, as so transferred and adopted,  into a
single plan, and (c) to reflect the "Distribution" and the "Merger",  as defined
in the Merger  Agreement.  The Plan has been  further  amended  to make  certain
changes in the Plan's Earnings  Crediting  Options effective as of July 1, 1996,
and to make certain  changes in the  provisions  of Section 4.6  effective as of
July 1, 1997.

     The purpose of this Plan is to set forth the terms under which payment will
be made with respect to Restricted  Common Shares,  Performance  Share Units and
Benefit  Equalization  Units  awarded to  Participants  under the Prior Plan and
Predecessor  Plans. No new Restricted Common Shares,  Performance Share Units or
Benefit Equalization Units shall be awarded to any Participant under this Plan.

1.2  Definitions

     As used herein, the following terms shall have the following meanings:

     "Adjusted  Number" shall mean,  with respect to the Phantom Share Units and
Benefit  Equalization  Units standing to a  Participant's  credit under the Plan
immediately  prior to the  Effective  Time,  an  adjusted  number of such  units
determined  by dividing (i) the product of (A) the number of such Phantom  Share
Units, or Benefit  Equalization Units, as the case may be, multiplied by (B) the
Average  Market Value of one Common Share of U.S. Trust  Corporation  during the
30-day period ending on the day  immediately  preceding the Chase Merger Closing
Date,  by (ii) the Average  When-Issued  Market Value of one common share of the
Corporation.

     "Affiliated   Companies"   shall  mean  (i)  with  respect  to  U.S.  Trust
Corporation, each of its direct or indirect subsidiaries,  and (ii) with respect
to the Corporation, each of its direct or indirect subsidiaries.

     "Average  Market Value" shall mean,  with respect to one Common Share as of
any date or with respect to any period,  the mean between the per-share high and
low prices for the Common  Shares on such date,  or on each  trading  day during
such period,  as quoted on the NASDAQ National Market System,  or, if the Common
Shares  are not  traded  on such  system,  on such  other  securities  market or
securities  exchange  on which such  shares are  traded as the  Committee  shall
determine.

     "Average  When-Issued  Market Value" shall mean, with respect to one common
share of the  Corporation,  the amount  representing  the 10-day  average of the
daily  average  of the  high bid and low  asked  prices  for  such  share in the
over-the-counter   market  as  reported  by  the   National   Quotation   Bureau
Incorporated on a "when-issued" basis on each of the 10 trading days immediately
preceding the Chase Merger Closing Date.

     "Award"  shall  mean  the  award  of  Performance  Share  Units  made  to a
Participant for an Open Cycle pursuant to Section 4.1 of the Prior Plan.

     "Beneficiary"  shall mean the person or persons designated by a Participant
in  accordance  with  Section 6.9 to receive any amount,  or any Common  Shares,
payable under the Plan upon the Participant's death.

     "Benefit  Equalization  Unit,"  "Performance Share Unit" and "Phantom Share
Unit" shall mean a unit of measurement equivalent to one Common Share, with none
of the  attendant  rights of a  shareholder  of such share,  including,  without
limitation,  the right to vote such  share  and the right to  receive  dividends
thereon, except to the extent otherwise specifically provided herein.

     "Board of Directors" shall mean the Board of Directors of the Corporation.

     "Business  Day" shall mean any day on which Common Shares are traded on the
Nasdaq  National  Market  System  or, if Common  Shares  are not  traded on such
system,  on such other  securities  market or securities  exchange on which such
shares are traded as the Committee shall determine.

     "Change  in  Control"  shall  mean  that any of the  following  events  has
occurred after the Chase Merger Closing Date:

          (i) 20% or more of the Common  Shares has been  acquired by any person
     (as  defined by Section  3(a)(9) of the  Securities  Exchange  Act of 1934)
     other than directly from the Corporation;

          (ii) there has been a merger or equivalent combination after which 49%
     or  more of the  voting  shares  of the  surviving  corporation  is held by
     persons other than former shareholders of the Corporation; or

          (iii)20% or more of the directors elected by shareholders to the Board
     of Directors  are persons who were not  nominated by the Board of Directors
     or the  Executive  Committee  of the Board of  Directors in the most recent
     proxy statement of the Corporation;

provided, however, that notwithstanding anything in the Plan to the contrary, no
Change in Control shall be deemed to have occurred, and no rights arising upon a
Change in Control  provided in Sections  3.6,  4.7 and 5.4 shall  exist,  to the
extent that the Board of Directors so directs by resolution adopted prior to the
Change in Control,  or not later than 45 days after the Change in Control if the
percentage  of Common Shares  acquired or directors  elected under clause (i) or
(iii) of the foregoing definition of Change in Control shall be at least 20% but
less than 25%. Any  resolution  of the Board of Directors  adopted in accordance
with the provisions of this definition  directing that a Change in Control shall
be deemed not to have  occurred for purposes of this Plan and that Sections 3.6,
4.7  and  5.4,  or any of such  Sections  shall  not  become  effective,  may be
rescinded or countermanded at any time with or without retroactive effect.

     "Chase Merger  Closing Date" shall mean the "Closing  Date",  as defined in
Section 1.2 of the Merger Agreement.

     "Committee" shall mean the Compensation and Benefits Committee of the Board
of Directors.

     "Common  Shares" shall mean (i) prior to the Chase Merger Closing Date, the
common shares ($1.00 par value per share) of U.S.  Trust  Corporation,  and (ii)
after the Chase Merger  Closing  Date,  the common  shares  ($1.00 par value per
share) of the Corporation.

     "Corporation" shall mean New USTC Holdings  Corporation,  which will assume
the  name  of  "U.S.  Trust  Corporation"  as  of  the  time  the  New  Holdings
Distribution is effective.

     "Determined  Value"  shall mean the higher of (i) the highest bid price per
Common Share during the twelve months immediately preceding the date of a Change
in  Control,  or (ii) the  highest  price  per  Common  Share  actually  paid in
connection with any Change in Control  (including,  without  limitation,  prices
paid in any  subsequent  merger or  combination  with any entity  that  acquires
control of the Corporation).

     "Dividend  Payment Date" shall mean the date on which a dividend is paid on
Common Shares.

     "Effective  Time" shall mean "Effective  Time" as defined in Section 1.3 of
the Merger Agreement.

     "401(k)  Plan" shall mean the 401(k) Plan and ESOP of United  States  Trust
Company of New York and Affiliated Companies.

     "Open  Cycles" shall mean the  Performance  Cycles (as defined in the Prior
Plan)  established  under  Section 4 of the Prior Plan for the  periods  ending,
respectively, on December 31, 1995, and on December 31, 1996.

     "Participant"   shall  mean  any   employee  or  former   employee  of  the
Corporation,  U.S. Trust Corporation,  or any of their Affiliated Companies who,
immediately  prior to the Chase  Merger  Closing  Date,  had any unpaid  amount,
Phantom Share Unit, Benefit Equalization Unit, or any Performance Share Unit for
any Open Cycle  standing to his or her credit under the Prior Plan or any of the
Predecessor Plans.

     "Prime Rate" shall mean, with respect to any calendar month, the prime rate
as quoted by United States Trust Company of New York on the last business day of
such month.

     "Restricted  Common  Shares"  shall mean Common Shares which are subject to
Restrictions,  and any new, additional or different securities a Participant may
become  entitled  to receive  with  respect to such  shares by virtue of a stock
split or stock dividend or any other change in corporate or capital structure of
U.S. Trust Corporation or the Corporation.

     "Restricted  Period" shall mean the period of time during which  Restricted
Common Shares are subject to Restrictions as provided in Section 3.

     "Restrictions" shall mean the restrictions  applicable to Restricted Common
Shares as provided in Section 3.

1.3  Administration

     The Plan shall be administered by the Committee.  A majority of the members
of the Committee shall constitute a quorum.  The Committee may act at a meeting,
including a telephone

meeting, by action of a majority of the members present, or without a meeting by
unanimous  written  consent.  The  Committee  shall have the  authority,  in its
discretion,  to establish from time to time  guidelines or  regulations  for the
administration of the Plan,  interpret the Plan, cause appropriate records to be
established,  and make all  determinations and take all other actions considered
necessary or advisable for the administration of the Plan.

     All decisions,  actions or  interpretations of the Committee under the Plan
shall be final, conclusive and binding upon all parties.

                         SECTION 2. AUTHORIZED SHARES

2.1  Maximum Number of Common Shares Available for Awards

     Subject to Section 2.2 but notwithstanding any other provision of the Plan,
the number of Common Shares that may be distributed to Participants  pursuant to
this Plan shall be limited to (i) 400,000 Common  Shares,  plus (ii) a number of
Common  Shares equal to the total number of  additional  Phantom Share Units and
Benefit  Equalization  Units credited to Participants  with respect to dividends
paid on Common Shares pursuant to Sections 4.5 and 5.2.

2.2  Adjustment in Maximum Number of Shares

     As of  the  Effective  Time,  the  number  of  Common  Shares  that  may be
distributed to Participants pursuant to this Plan, as specified in clause (i) of
Section  2. 1,  shall be  adjusted  so as to equal the sum of (w) the  aggregate
number of Phantom  Share Units to be credited  to  Participants  pursuant to the
first sentence of Section  4.2(d) and the first sentence of Section  4.2(e)(iv),
(x) the  aggregate  Adjusted  Number  of  Phantom  Share  Units  determined  for
Participants  under Section 43(d), (y) the aggregate  Adjusted Number of Benefit
Equalization  Units determined for Participants under Section 5.1, and (z) 4,500
Common Shares.

2.3  Source of Shares

     The Common Shares distributed under the Plan may be authorized and unissued
shares,  shares held in the treasury of the Corporation,  or shares purchased on
the open market by the  Corporation (at such time or times and in such manner as
it may determine);  provided, however, that Restricted Common Shares (other than
any such shares that are shares of Chase common stock) shall be distributed from
shares held in the treasury of the Corporation.  The Corporation  shall be under
no obligation to acquire Common Shares for  distribution to Participants  before
payment in Common Shares is due.

                        SECTION 3. RESTRICTED COMMON SHARES

3.1  Awards of Restricted Common Shares

     Restricted  Common  Shares  awarded to a  Participant  under the Prior Plan
shall remain subject to the same  Restrictions,  for the same Restricted Period,
as applied with respect to such shares under Section 3.2 of the Prior Plan. Such
Restrictions  shall be binding on the  Corporation and on the  Participants  and
their Beneficiaries.

3.2  Restrictions and Restricted Period

     All Common Shares of the  Corporation  and all shares of Chase common stock
received with respect to a  Participant's  Restricted  Common Shares pursuant to
the Distribution and the Merger shall be treated as Restricted Common Shares for
purposes of this Plan,  and shall be subject to the same  Restrictions,  for the
same Restricted Period, as applied to the shares with respect to which they were
received.

3.3  Rights as Shareholders

     Except  for the  Restrictions  referred  to in  Sections  3.1 and 3.2,  and
subject to the forfeiture  provisions described in Section 3.5, each Participant
shall have, with respect to his or her Restricted Common Shares, all rights of a
holder of Common  Shares  including  the right to receive all dividends or other
distributions  made or paid in respect of such shares and the right to vote such
shares at regular or special meetings of the shareholders of the Corporation.

3.4  Delivery of Shares

     A Participant's Restricted Common Shares shall be held in the Participant's
name in a book entry account maintained by the Corporation. At the conclusion of
the Restricted Period imposed with respect to a Participant's  Restricted Common
Shares,  or upon the prior approval of the Committee as provided in Section 3.5,
and subject to the  satisfaction of the applicable tax withholding  requirements
provided in Section 6.8, certificates representing such Restricted Common Shares
will be delivered to the  Participant  or, if the  Participant  has died, to the
Participant's Beneficiary, free of all Restrictions.

3.5  Termination of Employment

     In the  event  of any  Participant's  termination  of  employment  with the
Corporation and its Affiliated  Companies,  all of the Participant's  Restricted
Common Shares which are then still subject to Restrictions  will be forfeited by
the  Participant  and become  the  property  of the  Corporation.  However,  the
Committee  may, if the  Committee  in its sole  discretion  determines  that the
circumstances

warrant such action,  approve the delivery to the Participant of all or any part
of the Restricted  Common Shares which would otherwise be forfeited  pursuant to
this Section, upon such conditions as it shall determine.

3.6  Change in Control

     Upon the occurrence of a Change in Control,  all  Restricted  Periods shall
end, the  Restrictions  applicable to all Restricted  Common Shares shall lapse,
and in lieu of  delivery  of such  shares  to the  Participants  free  from such
Restrictions as provided in Section 3.4, the Corporation's obligation in respect
of such  shares  shall  be  discharged  by  payment  to  each of the  applicable
Participants  of a single cash lump sum.  The amount of such cash lump sum shall
be determined by multiplying the number of Restricted  Common Shares held in the
Participant's  name by the Determined Value of one Common Share. The single cash
lump sum amount so determined, reduced by any taxes withheld pursuant to Section
6.8,  shall be paid to the  Participant  as soon as  practicable  following  the
Change in Control.

                        SECTION 4. PERFORMANCE SHARE UNITS

4.1  Performance Share Unit Awards for Open Cycles

     At the Effective Time, all Performance Goals (as defined in the Prior Plan)
determined for each of the Open Cycles pursuant to Section 4.1 of the Prior Plan
shall be deemed to have been fully met, and all Performance  Share Units awarded
to each  Participant  for each of the Open Cycles pursuant to Section 4.1 of the
Prior Plan shall be deemed to have been fully earned.

4.2  Payment of Awards for Open Cycles

     Payment  with respect to a  Participant's  Award for an Open Cycle shall be
made in accordance with the following provisions:

     (a) The total amount payable with respect to a  Participant's  Award for an
Open  Cycle  shall be equal to the  product  of (i) the sum of (A) the number of
Performance  Share Units awarded to the  Participant  for such cycle and (B) the
number of additional  Performance  Share Units credited to the Participant  with
respect to such Award  pursuant  to Section  4.1 of the Prior Plan on account of
dividends  paid on Common  Shares  after the start of such  cycle and before the
Chase Merger  Closing Date,  multiplied by (ii) the Average  Market Value of one
Common Share during the 30-day  period ending on the day  immediately  preceding
the Chase Merger Closing Date.

     (b) The portion of the total amount payable with respect to a Participant's
Award for an Open Cycle which the  Participant has not elected to defer pursuant
to an election made by the Participant  under Section 4.4 of the Prior Plan (the
"Non-Deferred  Portion  of  the  Participant's  Award")  shall  be  paid  to the
Participant  as  soon  as  practicable  after  the  close of such cycle.  In the
case of a Participant  whose  employment with the Corporation and its Affiliated
Companies  terminates  after the Chase Merger Closing Date but before the end of
the  cycle  by  reason  of  death,  disability  or  retirement,  payment  of the
Non-Deferred  Portion of the Participant's Award for such cycle shall be made as
of the first  day of the month  following  the date of such  termination  of the
Participant's employment (the Participant's "Termination Date").

     (c)  Payment  with  respect  to  50%  of  the  Non-Deferred  Portion  of  a
Participant's  Award  for an Open  Cycle  shall  be made in the form of a single
lump-sum  cash  payment.  Such  payment  shall  include  interest  on 50% of the
Non-Deferred  Portion of the Participant's Award, which shall be credited at the
Prime Rate for each  calendar  month or portion  thereof in the period  from the
Chase Merger  Closing Date to the end of the cycle or, if earlier,  the last day
of the month in which the Participant's Termination Date occurs.

     (d) With  respect to the  remaining  50% of the  Non-Deferred  Portion of a
Participant's Award for an Open Cycle, the Participant shall be credited,  as of
the Chase Merger Closing Date,  with a number of Phantom Shares Units  ("PSU's")
determined by dividing (i) the dollar value of 50% of the  Non-Deferred  Portion
of the Participant's  Award, by (ii) the Average When-Issued Market Value of one
common share of the  Corporation.  As of each  Dividend  Payment Date  occurring
after the Chase  Merger  Closing  Date but  before  the end of such cycle or, if
earlier,  the last day of the month in which the Participant's  Termination Date
occurs,  the  Participant  shall  also be  credited  hereunder  with a number of
additional  PSU's  determined by first (x)  multiplying  (A) the number of PSU's
standing to the Participant's  credit under this Section 4.2(d) on the date such
dividend was  declared,  by (B) the  per-share  dollar amount of the dividend so
paid, and then (y) dividing the resulting  amount by the Average Market Value of
one Common  Share on the  Dividend  Payment  Date.  Payment with respect to such
remaining 50% a of the Non-Deferred  Portion of the Participant's Award shall be
made in the form of (1) a number of Common  Shares  equal to the number of whole
PSU's standing to the  Participant's  credit under this Section 4.2(d) as of the
last day of the month preceding the month in which such payment is made, and (2)
a cash payment in an amount determined by multiplying (A) any fractional part of
a PSU  standing  to the  Participant's  credit as of such  last day,  by (B) the
Average  Market  Value of one  Common  Share  on the  business  day  immediately
preceding the date on which such payment is made.

     (e) The  portion  of a  Participant's  Award  for an Open  Cycle  which the
Participant has elected to defer pursuant to an election made by the Participant
under Section 4.4 of the Prior Plan (the "Deferred Portion" of the Participant's
Award) shall be credited to the "Account"  established for the Participant under
Section 4.3, in accordance with the following provisions:

          (i) The Deferred  Portion of a  Participant's  Award for an Open Cycle
     shall be credited to the  Participant's  Account as of the first day of the
     month following the close of such cycle or, if earlier, on the first day of
     the month following the Participant's Termination Date.

          (ii) The Deferred  Portion of a Participant's  Award shall be credited
     to the  "Interest  Portion" and to the "PSU Portion" (as defined in Section
     4.3) of the  Participant's  Account in such  percentages as the Participant
     specified in the deferral  election made by the Participant with respect to
     such Award pursuant to Section 4.4 of the Prior Plan.

          (iii) That part of the Deferred  Portion of a Participant's  Award for
     an Open  Cycle  which  the  Participant  elected  to have  credited  to the
     Interest  Portion of his or her Account  shall be credited to the  Interest
     Portion together with interest on the amount to be so credited,  calculated
     at the Prime Rate, for each calendar month or portion thereof in the period
     from the Chase Merger  Closing Date to the end of the cycle or, if earlier,
     the last  day of the  month in which  the  Participant's  Termination  Date
     occurs.

          (iv)  With  respect  to  that  part  of  the  Deferred  Portion  of  a
     Participant's Award for an Open Cycle which the Participant elected to have
     credited to the PSU Portion of his or her Account, the Participant shall be
     credited,  as of the  Chase  Merger  Closing  Date,  with a number of PSU's
     determined  by dividing  (A) the dollar  value of that part of the Deferred
     Portion by (B) the Average  When-Issued Market Value of one common share of
     the Corporation. As of each Dividend Payment Date occurring after the Chase
     Merger  Closing  Date but before the end of such cycle or, if earlier,  the
     last day of the month in which the  Participant's  Termination Date occurs,
     the  Participant  shall be credited  hereunder  with a number of additional
     PSU's  determined by first (x) multiplying (A) the number of PSU's standing
     to the Participant's  credit under this Section 4.2(e)(iv) on the date such
     dividend was declared,  by (B) the per-share  dollar amount of the dividend
     so paid,  and then (y) dividing the resulting  amount by the Average Market
     Value of one Common Share on the Dividend  Payment  Date.  That part of the
     Deferred  Portion of a Participant's  Award for an Open Cycle that is to be
     credited to the PSU Portion of the Participant's  Account shall be credited
     thereto in the form of a number of PSU's equal to the total number of PSU's
     standing to the  Participant's  credit under this Section  4.2(e)(iv) as of
     the time the Deferred Portion of the Participant's  Award is to be credited
     to the Participant's Account as provided in clause (i) above.

     (f)  Notwithstanding any other provisions in Section 4.1 or in this Section
4.2 to the contrary, a Participant whose employment  terminates prior to the end
of any Open Cycle for any reason  other than  death,  disability  or  retirement
shall not be entitled to receive any payment with  respect to the  Participant's
Award for such cycle, or to have any portion of such Award deferred  pursuant to
any election the  Participant may have made under Section 4.4 of the Prior Plan,
except to the  extent  that the  Committee,  in its sole  discretion,  otherwise
determines.

4.3  Accounts for Deferred Awards

     As of the time this Plan is  adopted  by the  Corporation,  there  shall be
established  on the  books  and  records  of the  Corporation,  for  bookkeeping
purposes only, a separate  account  ("Account") for each  Participant to reflect
the Participant's interest in the Deferred Portion of the

Participant's  Awards for Open Cycles,  and in all amounts which the Participant
elected to defer under the Prior Plan and the  Predecessor  Plans that  remained
unpaid or that had not yet become payable as of the time of the adoption of this
Plan. The Account so  established  for each  Participant  shall be maintained in
accordance with the following provisions:

     (a) The  Account  established  for each  Participant  shall  consist of two
sub-accounts referred to herein, respectively, as the "Interest Portion" and the
"PSU Portion".

     (b) As of the time this Plan is adopted by the  Corporation,  the  Interest
Portion of each Participant's  Account shall be credited with an amount equal to
the aggregate amount of the balances,  determined as of the close of business on
the day preceding the Chase Merger Closing Date, of the Interest  Portion of the
Accounts maintained for the Participant under the Prior Plan and the Predecessor
Plans.  For purposes of the foregoing,  the balance of the Interest Portion of a
Participant's  Account  under  the  Long-Term  Performance  Plan of  U.S.  Trust
Corporation,  as determined as of the close of business on such  preceding  day,
shall reflect the  crediting of interest to the "R.O.E.  Balance" (as defined in
Section 7F of such plan) of the Interest  Portion of the  Participant's  Account
(i) for the fiscal year 1994,  based on a deemed "R.O.E." (as defined in Section
7F of such plan) for U.S. Trust  Corporation  for such year of 20%; and (ii) for
all periods  beginning on January 1, 1995 and ending at the close of business on
the day preceding the Chase Merger Closing Date, based on the "Eamings Crediting
Options"  (as defined in Section  7G(iii) of such plan) in effect for the R.O.E.
Balance for such periods pursuant to the election made by the Participant  under
such plan.

     (c) As of the time this Plan is adopted by the Corporation, the PSU Portion
of each Participant's  Account shall be credited with a number of PSU's equal to
the aggregate  number of PSU's  included in the  balances,  determined as of the
close of business on the day preceding the Chase Merger Closing Date, of the PSU
Portion of the  Participant's  Accounts under the Prior Plan and the Predecessor
Plans.

     (d) As of the  Effective  Time,  the  number of PSU's  credited  to the PSU
Portion of a  Participant's  Account  hereunder  pursuant  to (c) above shall be
adjusted so as to equal the Adjusted Number of such PSU's.

     (e) The  Interest  Portion and the PSU Portion of a  Participant's  Account
shall  be  credited  with  amounts  in  respect  of the  Deferred  Portion  of a
Participant's  Award for any Open Cycle,  at the time and in the manner provided
in Section 4.2(e).

     (f) The  Interest  Portion and the PSU Portion of a  Participant's  Account
shall be  adjusted  from time to time to reflect all  interest  or Earnings  (as
defined in Section  4.4),  and all  additional  PSU's,  to be  credited  to such
Portions pursuant to Sections 4.4 and 4.5, and all payments made with respect to
such Portions pursuant to Section 4.6.

     (g) A  Participant's  interest in his or her Account  shall be fully vested
and nonforfeitable at all times.

4.4  Credits to Interest Portion

     In the case of any Participant whose employment with U.S. Trust Corporation
and its Affiliated Companies terminated prior to January 1, 1994, interest shall
continue to be credited to the Interest  Portion of such  Participant's  Account
hereunder in accordance with the applicable provisions of the Prior Plan and the
Predecessor Plans as in effect at the time of such Participant's  termination of
employment,  for all periods ending after the Chase Merger  Closing Date,  until
payment with respect to the Interest Portion of such  Participant's  Account has
been made in full; provided, however, that interest on the R.O.E. Balance of the
Interest  Portion  of  any  such  Participant's   Account  under  the  Long-Term
Performance Plan of U.S. Trust  Corporation  shall be credited at the Prime Rate
for all periods  ending after the Chase Merger Closing Date. In the case of each
other  Participant,  the Interest Portion of the Participant's  Account shall be
credited  with  Earnings  for  periods  beginning  on and after  July 1, 1996 in
accordance with the following provisions:

     (a) As of the last day of each calendar month,  each part of the balance of
the Interest  Portion of a Participant's  Account for which a separate  Earnings
Crediting  Option (as  hereinafter  defined) is in effect under this Section 4.4
shall be credited  with an amount  determined  by  multiplying  such part of the
balance  by a  percentage  corresponding  to the  Applicable  Rate of  Return as
hereinafter  defined) for such month under such Earnings  Crediting Option.  The
amount so credited  (which may be positive or negative  depending on whether the
Applicable  Rate of Return for the month is positive or negative) is referred to
herein as "Earnings".

     (b) For purposes of this Section 4.4, the term "Earnings  Crediting Option"
shall mean, as of any date of reference on or after July 1, 1996, any one of the
following: the S&P 500 Index, the Lehinan Bros. Government/Corporate Bond Index,
the IBC's Money Fund Report First Tier Average, and the Prime Rate.

     Notwithstanding  the foregoing,  the Committee may at any time, in its sole
discretion, determine (i) that any option referred to in the preceding paragraph
shall cease to  constitute  an Earnings  Crediting  Option for  purposes of this
Section  4.4, or (ii) that any other index or  hypothetical  investment  fund or
referenced  rate of return  shaH  constitute  an Earnings  Crediting  Option for
purposes of this Plan.  Participants  shall be notified in writing,  at least 45
days in advance, of any change in the Plan's Earnings Crediting Options.

     (c) The  "Applicable  Rate of Return"  for any month  shall mean (i) in the
case of the S&P 500 Index,  the percentage,  as determined by the Committee,  by
which (A) the value of such Index as of the last business day of such month,  as
adjusted to reflect all income earned for such month on the securities  included
in such Index,  exceeds,  or is less than, (B) the value of such Index as of the
last business day of the immediately preceding month,  determined without taking
such adjustment into

account; (ii) in the case of the Lehman Bros.  Government/Corporate  Bond Index,
the percentage, as determined by the Committee, by which the value of such Index
as of the last business day of such month exceeds, or is less than, the value of
such Index as of the last business day of the immediately preceding month; (iii)
in the case of the IBC's  Money  Fund  Report  First Tier  Average,  the rate of
return  corresponding to the 7-day  compounded  yield for such Average,  for the
period ending on, or most recently prior to, the last day of such month; (iv) in
the case of the Prime Rate Option, the rate of return corresponding to the Prime
Rate for such month; and (v) in the case of any other Earnings Crediting Option,
the rate of return  applicable for such month, as determined by the Committee in
its sole discretion.

     (d) Each  Participant  for whom an Account was being  maintained on May 15,
1996 shall make an initial  election as to the Earnings  Crediting  Options that
are to apply with respect to the  interest  Portion of his or her Account on and
after July 1, 1996.  Such election shall be made in writing,  on a form provided
by the  Committee  for such  purpose,  and  such  form  shall be filed  with the
Committee by no later than June 14, 1996. In such election form, the Participant
shall  specify,  by  percentages  (which  must  be  even  multiples  of 5%)  the
respective  parts of the balance of the Interest Portion that are to be credited
with Earnings  under each of the Earnings  Crediting  Options  designated by the
Participant  in such form. If a Participant  fails to make such election by June
14, 1996, the Participant shall be deemed to have selected the Prime Rate as the
Earnings  Crediting  Option  to  apply to the  entire  balance  of the  Interest
Portion. The Earnings Crediting Options selected in the initial election made by
a Participant (or deemed to have been selected by a Participant) pursuant to the
preceding  sentence  shall  remain in effect  for the  Interest  Portion  of the
Participant's Account until the Participant makes an election in accordance with
(e) below to change such Earnings Crediting Options.

     (e) A  Participant  may change the Earnings  Crediting  Options that are to
apply with respect to the Interest Portion of his or her Account by making a new
election hereunder.  Such new election shall be made in writing, on a form which
is provided by the  Committee for this purpose and which the  Participant  files
with the Committee.  In such form, the Participant shall specify, by percentages
(which must be even multiples of 5%), the respective parts of the balance of the
Interest  Portion  that  are to be  credited  with  Earnings  under  each of the
Earnings  Crediting  Options  designated by the  Participant  in such form.  The
Participant's  new election  shall  become  effective as of the first day of the
calendar  month  following  the date on which  such  election  is filed with the
Committee,  provided  that it is so filed at least 15 days  prior to such  first
day. The Earnings  Crediting  Options  selected by the  Participant  in such new
election shall remain in effect until the Participant again changes his election
with respect to the Interest  Portion of his or her Account in  accordance  with
this Section 4.4(e).

     (f) The Interest  Portion of a  Participant's  Account shall continue to be
credited  with Earnings in  accordance  with the  provisions of this Section 4.4
until all  payments  required to be made with  respect to the  Interest  Portion
under  Section 4.6 have been made.  For this  purpose,  any payments  made under
Section 4.6 with respect to the Interest  Portion of the  Participant's  Account
will be

deemed to have been made pro rata from the  respective  parts of the  balance of
the Interest Portion that are subject to separate Earnings Crediting Options.

4.5  Credits to PSU Portion

     As of each  Dividend  Payment Date,  the PSU Portion of each  Participant's
Account  shall be credited  with  additional  PSU's the number of which shall be
determined  by  first  (i)  multiplying  the  number  of PSU's  standing  to the
Participant's credit in the PSU Portion of the Participant's Account on the date
such  dividend was declared by the  per-share  dollar  amount of the dividend so
paid, and then (ii) dividing the resulting amount by the Average Market Value of
one Common Share on the Dividend Payment Date.

4.6  Payment of Deferred Awards

     In the case of any Participant whose employment with U.S. Trust Corporation
and its  Affiliated  Companies  terminated  prior to July 1, 1997,  any  amounts
remaining to be paid with respect to such Participant's  Account as of such date
shall be paid in accordance  with the  applicable  provisions  of the Plan,  the
Prior Plan or the Predecessor Plans in effect at the time of such  Participant's
termination of employment.  In the case of each other Participant,  payment with
respect  to the  Participant's  Account  shall  be made in  accordance  with the
following provisions:

     (a)  The  balances  of the  Interest  Portion  and  the  PSU  Portion  of a
Participant's Account shall become payable upon the Participant's termination of
employment  with the  Corporation  and all of its  Affiliated  Companies for any
reason.  For this purpose,  a Participant who ceases active employment by reason
of disability  but who becomes  entitled to receive  benefit  payments under the
long-term disability plan maintained by the Corporation or any of its Affiliated
Companies shall be treated as continuing to be employed with the Corporation and
its  Affiliated  Companies  during all periods for which he or she  continues to
receive benefit payments under such plan.

     (b) Unless at the time a Participant's  Account becomes payable there is in
effect for the Participant an election under (c) below,  payment with respect to
the Interest Portion and the PSU Portion of the  Participant's  Account shall be
made in the form of a series of 10 annual  installments,  payable in  accordance
with the following provisions:

          (i) the  first  such  installment  payment  shall  be made on the last
     Business Day of February of the calendar  year  following the year in which
     the Participant's employment with the Corporation and all of its Affiliated
     Companies terminates,  and the remaining installment payments shall be made
     on the last Business Day of February of each succeeding year.

          (ii) each installment  payment to be made with respect to the Interest
     Portion  of a  Participant's  Account  shall be made in cash,  in an amount
     determined by dividing (A) the balance of the Interest  Portion  determined
     as of the last day of the calendar  year  preceding  the year in which such
     payment is to be made, by (B) the number of installment payments

     remaining  to be made.  The last such  installment  payment  shall  include
     Earnings credited to the Interest Portion for the month preceding the month
     in which such payment is made.

          (iii)  each  installment  payment  to be made with  respect to the PSU
     Portion of a  Participant's  Account shall be made partly in Common Shares,
     and  partly in cash.  The  number of  shares  to be  included  in each such
     installment payment shall be equal to the number of whole PSU's included in
     the quotient resulting from dividing (A) the total number of PSU's included
     in the  balance of the PSU Portion of the  Participant's  Account as of the
     last day of the calendar  year  preceding the year in which such payment is
     to be made, by (B) the number of installment payments remaining to be made;
     and the  amount of cash to be  included  in each such  installment  payment
     shall  be  determined  by  multiplying  (C)  the  fractional  part of a PSU
     included in the aforementioned  quotient by (D) the Average Market Value of
     one Common  Share on the  Business Day  immediately  preceding  the date on
     which such  installment  payment is to be made.  The last such  installment
     payment  shall  include a number of Common Shares equal to the whole number
     of any  additional  PSU's  that  are  credited  to the PSU  Portion  of the
     Participant's  Account  under  Section 4.5 during the month  preceding  the
     month in which  such  payment  is made,  together  with  cash (in an amount
     determined in the same manner as described in the  preceding  sentence) for
     any fractional part of a PSU that is so credited.

          (iv) if a  Participant  should die before  receiving  all  installment
     payments  required  to be made  with  respect  to his or her  Account,  any
     installment  payments remaining to be made at the date of the Participant's
     death shall be made to the  Participants'  Beneficiary in the same form, at
     the same times and in the same amounts,  as such  payments  would have been
     made  to the  Participant  (A) if he or she had  not  died,  and (B) if the
     Participant died while still employed, if the Participant's  employment had
     otherwise terminated on the date of his or her death.

     (c) A  Participant  may elect to have  payment with respect to the Interest
Portion and the PSU  Portion of his or her Account  made in the form of a single
lump sum payment.  - Such payment shall consist of (i) a number of Common Shares
equal to the number of whole PSUs  included in the balance of the PSU Portion of
the  Participant's  Account,  and (ii) cash in an amount equal to the sum of (A)
the  balance of the  Interest  Portion of the  Participant's  Account and (B) an
amount  determined by multiplying the fractional part, if any, of a PSU included
in the  balance of the PSU Portion of the  Participant's  Account by the Average
Market Value of one Common Share on the Business Day  immediately  preceding the
date on which such  payment  is to be made.  Such  payment  shall be made to the
Participant or, if the Participant's Account becomes payable by reason of his or
her death, to the Participant's  Beneficiary.  Payment shall be made on the last
Business  Day of  February  of the Plan  Year  following  the year in which  the
Participant's  employment  with  the  Corporation  and  all  of  its  Affiliated
Companies  terminates.  An election  under this Section  4.7(c) shall be made in
writing,  on a form that is provided by the  Committee for such purpose and that
is filed by the  Participant  with the  Committee at least one year prior to the
date on which the  Participant's  employment with the Corporation and all of its
Affiliated Companies terminates. Any election so

made  may be  revoked,  and a new  election  may be made  hereunder  after  such
revocation.  Any  such  revocation  or new  election  shall  be made in the same
manner, and by the same date, as described in the second preceding sentence.  No
election or  revocation  of an election  made  hereunder  shall be given  effect
unless it is made within the time prescribed herein.

     (d)  Notwithstanding  any  other  provision  in  this  Section  4.6  to the
contrary,  payment with respect to any part or all of the Participant's  Account
balances may be made to the  Participant or, if the Participant has died, to the
Participant's  Beneficiary,  on any date  earlier  than  the date on which  such
payment is to be made  pursuant to such other  provisions of this Section 4.6 if
(i) the Participant, or his or her Beneficiary,  requests such early payment and
(ii) the Committee,  in its sole discretion,  determines that such early payment
is  necessary  to  help  the  Participant,  or his or her  Beneficiary,  meet an
"unforeseeable  emergency"  within the meaning of Section  1.457-2(h)(4)  of the
federal  Income Tax  Regulations.  The amount that may be so paid may not exceed
the amount necessary to meet such emergency.

4.7  Change in Control

     In the event of a Change in Control,  the  provisions  of this  Section 4.7
shall apply  notwithstanding  any other  provision  herein to the contrary  (but
subject to the proviso  contained  in the  definition  of "Change in Control" in
Section 1.2).  Upon the  occurrence of a Change in Control,  the balance of each
Participant's  Account shall become  immediately  payable in full.  Payment with
respect to each  Participant's  Account balance shall be made to the Participant
or, if the  Participant  has died, to his or her  Beneficiary,  in the form of a
single  lump sum cash  payment.  The  amount so  payable  with  respect  to each
Participant's  Account  shall  be  equal  to the sum of (i) the  balance  of the
Interest Portion of the Participant's Account, plus (ii) an amount determined by
multiplying  the  aggregate  number of PSU's then included in the balance of the
PSU Portion of the  Participant's  Account by the Determined Value of one Common
Share.

     All amounts payable to Participants  pursuant to this Section 4.7,  reduced
by  any  taxes  withheld  pursuant  to  Section  6.8,  shall  be  paid  to  such
Participants as soon as practicable following the Change in Control.

                       SECTION 5. BENEFIT EQUALIZATION UNITS

5.1  Accounts for Benefit Equalization Units

     As of the time this Plan is  adopted  by the  Corporation,  there  shall be
established  on the  books  and  records  of the  Corporation,  for  bookkeeping
purposes only, an account ("BEU Account") for each  Participant,  to reflect the
Participant's  interest  in  the  Benefit  Equalization  Units  awarded  to  the
Participant under the Prior Plan. Upon adoption of the Plan, each  Participant's
BEU Account shall be credited with a number of Benefit  Equalization Units equal
to the total number of Benefit

Equalization  Units standing to the Participant's  credit under Section 5 of the
Prior Plan as of the close of business  on the day  preceding  the Chase  Merger
Closing Date.

     As of the  Effective  Time,  the  number of Benefit  Equalization  Units so
credited to each  Participant's BEU Account shall be adjusted so as to equal the
Adjusted Number of such Benefit Equalization Units.

     A  Participant's  interest in his or her BEU Account  shall be fully vested
and nonforfeitable at all times.

5.2  Dividend Equivalents

     As of each Dividend Payment Date, each  Participant's  BEU Account shall be
credited with additional Benefit  Equalization  Units, the number of which shall
be determined by first (i) multiplying the number of Benefit  Equalization Units
standing to the  Participant's  credit in the  Participant's  BEU Account on the
date such dividend was declared by the  per-share  dollar amount of the dividend
so paid, and then (ii) dividing the resulting amount by the Average Market Value
of one Common Share on the Dividend Payment Date.

5.3  Payment of Benefit Equalization Units

     Payment with respect to a Participant's Benefit Equalization Units shall be
made  as  soon  as  practicable  after  the  termination  of  the  Participant's
employment with the Corporation  and its Affiliated  Companies,  for any reason.
Payment  shall be made in the form of (i) a number of Common Shares equal to the
number  of whole  Benefit  Equalization  Unit  included  in the  balance  of the
Participant's BEU Account as of the last day of the month preceding the month in
which such payment is made,  and (ii) a cash payment in an amount  determined by
multiplying (A) the fractional part of the Benefit Equalization Unit included in
such balance as of such last day, by (B) the Average  Market Value of one Common
Share on the business day  immediately  preceding the date on which such payment
is made.

5.4  Change in Control

     Notwithstanding  any other provision herein to the contrary (but subject to
the proviso  contained in the definition of "Change in Control" in Section 1.2),
payment with respect to a Participant's Benefit Equalization Units shall be made
in accordance  with the  provisions of this Section 5.4 in the event of a Change
in Control.  Upon the  occurrence  of a Change in  Control,  the balance of each
Participant's BEU Account shall become immediately payable in full. Payment with
respect to each Participant's BEU Account balance shall be made in the form of a
single  cash lump sum  payment.  The  amount so  payable  with  respect  to each
Participant's  BEU Account  shall be  determined  by  multiplying  the number of
Benefit  Equalization Units then standing to the Participant's  credit in his or
her BEU  Account,  by the  Determined  Value of one Common  Share.  All  amounts
payable to Participants  pursuant to this Section 5.4, reduced by taxes withheld
pursuant to

Section 6.8, shall be paid to such Participants as soon as practicable following
the Change in Control.

                            SECTION 6. GENERAL PROVISIONS

6.1  Certain Adjustments to Plan Shares

     In the event of any change in the Common Shares  occurring  after the Chase
Merger  Closing  Date  by  reason  of  any  stock  dividend,   recapitalization,
reorganization,  merger,  consolidation,  split-up,  combination  or exchange of
shares,   or  any  rights   offering  to  purchase  Common  Shares  at  a  price
substantially  below fair market  value,  or any similar  change  affecting  the
Common Shares,  the number and kind of shares represented by Phantom Share Units
or  Benefit  Equalization  Units and the  number  and kind of shares  subject to
Restrictions shall be appropriately adjusted consistent with such change in such
manner as the Committee,  in its sole discretion,  may deem equitable to prevent
substantial  dilution or enlargement of the rights granted to, or available for,
the Participants hereunder.  The Committee shall give notice to each Participant
of any  adjustment  made  pursuant to this Section and,  upon such notice,  such
adjustment shall be effective and binding for all purposes.

6.2  Successor Corporation

     The obligations of the Corporation under the Plan shall be binding upon any
successor corporation or organization  resulting from the merger,  consolidation
or other reorganization of the Corporation, or upon any successor corporation or
organization  succeeding to substantially  all of the assets and business of the
Corporation.  The Corporation agrees that it will make appropriate provision for
the preservation of Participants' rights under the Plan in any agreement or plan
which it may  enter  into or adopt to  effect  any such  merger,  consolidation,
reorganization or transfer of assets.

6.3  Non-Alienation of Benefits

     A  Participant's  rights to payments under the Plan shall not be subject in
any manner to anticipation,  alienation,  sale,  transfer,  assignment,  pledge,
encumbrance,  attachment,  or garnishment by creditors of the Participant or his
or her Beneficiary.

6.4  General Creditor Status

     Participants  shall have no right,  title, or interest  whatsoever in or to
any  investments  which  the  Corporation  may  make  to aid it in  meeting  its
obligations  under the Plan.  Nothing contained in the Plan, and no action taken
pursuant to its  provisions,  shall  create or be construed to create a trust of
any  kind,  or  a  fiduciary   relationship  between  the  Corporation  and  any
Participant,  Beneficiary,  or any other  person.  To the extent that any person
acquires a right to receive  payments from the Corporation  under the Plan, such
right shall be no greater than the right of a general unsecured

     creditor of the  Corporation.  The Plan shall  constitute a mere promise by
     the Corporation to make payments in the future of the benefits provided for
     herein.  It is intended  that the  arrangements  reflected  in this Plan be
     treated as unfunded for tax purposes, as well as for purposes of Title I of
     ERISA.  All  payments to be made  hereunder  shall be paid from the general
     funds  of  the  Corporation  and no  special  or  separate  fund  shall  be
     established and no segregation of assets shall be made to assure payment of
     such  amounts  except  as  expressly  set  forth in the  Plan.  In its sole
     discretion,  the  Corporation may authorize the creation of trusts or other
     arrangements  to meet the  obligations  created  under the Plan to  deliver
     Common Shares or pay cash;  provided,  however,  that, unless the Committee
     otherwise  determines  with the consent of the  affected  Participant,  the
     existence of such trusts or other arrangements shall be consistent with the
     "unfunded" status of the Plan.

6.5  No Right to Continued Employment

     Neither the Plan nor any action  taken  thereunder  shall be  construed  as
giving any employee any right to be retained in the employ of the Corporation or
any of its Affiliated Companies.

6.6  Awards Not Treated as Compensation Under Benefit Plans

     No Award shall be considered  as  compensation  under any employee  benefit
plan of U.S. Trust  Corporation,  the  Corporation,  or any of their  Affiliated
Companies,  except as  specifically  provided  in any such plan or as  otherwise
determined by the Board of Directors.

6.7  Listing and Qualification of Common Shares

     The Corporation,  in its discretion,  may postpone the issuance,  delivery,
distribution  or release of Common  Shares  pursuant  to an Award of  Restricted
Stock, Performance Share Units or Benefit Equalization Units until completion of
such stock  exchange  listing or other  qualification  of such shares  under any
state or  federal  law,  rule or  regulation  as the  Corporation  may  consider
appropriate,  and may  require  any  Participant  or  Beneficiary  to make  such
representations  and furnish such information as it may consider  appropriate in
connection  with the  issuance  or  delivery  of the shares in  compliance  with
applicable laws, rules and regulations.

6.8  Taxes

     The Corporation or any of its Affiliated Companies may make such provisions
and take such steps as it may deem necessary or appropriate  for the withholding
of all  federal,  state and local  taxes  required  by law to be  withheld  with
respect to amounts  payable  under the Plan  including,  but not  limited to (i)
deducting  the amount so required to be withheld  from any other  amount then or
thereafter payable to a Participant or Beneficiary,  (ii) reducing the amount of
any Award of Performance Share Units otherwise  required to be deferred pursuant
to a  Participant's  election under Section 4.4 of the Prior Plan, by the amount
so required to be withheld  with respect to such deferred  amount,  and/or (iii)
requiring a Participant or Beneficiary to pay to the Corporation or any of its

Affiliated Companies the amount so required to be withheld as a condition of the
issuance, delivery, distribution or release of any Common Shares.

6.9  Designation and Change of Beneficiary

     Each Participant shall file with the Committee a written designation of one
or more persons as the  Beneficiary who shall be entitled to receive any amount,
or any  Common  Shares,  payable  under  the  Plan  upon  his or  her  death.  A
Participant  may,  from time to time,  revoke or change  his or her  Beneficiary
designation  without the consent of any  previously  designated  Beneficiary  by
filing a new designation with the Committee.  The last such designation received
by the Committee shall be controlling;  provided,  however, that no designation,
or change or  revocation  thereof,  shall be  effective  unless  received by the
Committee  prior  to the  Participant's  death,  and  in no  event  shall  it be
effective as of a date prior to such receipt.  If at the date of a Participant's
death,  there is no designation  of a Beneficiary in effect for the  Participant
pursuant to the provisions of this Section 6.9, or if no Beneficiary  designated
by the Participant in accordance with the provisions  hereof survives to receive
any amount or Common Shares that becomes payable under the Plan by reason of the
Participant's   death,  the  Participant's   estate  shall  be  treated  as  the
Participant's Beneficiary for purposes of the Plan.

6.10 Payments to Persons Other Than Participant

     If the Committee shall find that any Participant or Beneficiary to whom any
amount,  or any Common  Shares,  is payable under the Plan is unable to care for
his or her affairs because of illness, accident or legal incapacity, then if the
Committee so directs,  such amount,  or such Common Shares,  may be paid to such
Participant's or Beneficiary's  spouse, child or other relative,  an institution
maintaining or having custody of such person,  or any other person deemed by the
Committee to be a proper recipient on behalf of such Participant or Beneficiary,
unless  a  prior  claim  therefor  has  been  made  by a  duly  appointed  legal
representative  of the Participant or  Beneficiary.  Any payment made under this
Section 6.10 shall be a complete  discharge of the liability of the  Corporation
with respect to such payment.

6.11 No Liability of Committee Members

     No  member of the  Committee  shall be  personally  liable by reason of any
contract or other instrument  executed by such member or on his or her behalf in
his or her capacity as a member of the Committee nor for any mistake of judgment
made in good faith,  and the Corporation  shall indemnify and hold harmless each
member of the Committee, and each employee,  officer, director or trustee of the
Corporation  or any of its  Affiliated  Companies  to whom  any  duty  or  power
relating to the administration or interpretation of the Plan may be allocated or
delegated,  against any cost or expense  (including  counsel  fees) or liability
(including  any sum paid in settlement of a claim with the approval of the Board
of Directors)  arising out of any act or omission to act in connection  with the
Plan unless arising out of such person's own fraud or bad faith.

6.12 Amendment or Termination

     Except as to matters that in the opinion of the Corporation's legal counsel
require shareholder approval,  any provision of the Plan may be modified as to a
Participant by an individual  agreement approved by the Board of Directors.  The
Board of Directors may, with prospective or retroactive effect,  amend,  suspend
or terminate the Plan or any portion thereof at any time; provided, however that
(i) no  amendment  that would  materially  increase  the cost of the Plan to the
Corporation  may be made by the Board of  Directors  without the approval of the
shareholders of the Corporation and (ii) no amendment, suspension or termination
of the Plan shall deprive any  Participant  of any rights under the Plan without
his or her written  consent.  Any amendment that the Board of Directors would be
permitted  to make  pursuant to the  preceding  sentence may also be made by the
Committee where  appropriate to facilitate the  administration of the Plan or to
comply with applicable law or any applicable rules and regulations of government
authorities.

6.13 Governing Law

     The Plan shall be governed by and construed in accordance  with the laws of
the State of New York,  without  reference to the  principles of conflict of law
thereof.

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