Document:

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                                                                  EXHIBIT 10.9

                                RADIAN GROUP INC.
                                  PENSION PLAN
                 AMENDED AND RESTATED EFFECTIVE JANUARY 1, 1997

               (Incorporating Amendments through January 1, 2002)
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                         RADIAN GROUP INC. PENSION PLAN
                 AMENDED AND RESTATED EFFECTIVE JANUARY 1, 1997

                                Table of Contents

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PREAMBLE.............................................................................      1

ARTICLE I - Definitions .............................................................      2

     1.1      Accrued Benefit........................................................      2
     1.2      Actuarial Equivalent...................................................      2
     1.3      Affiliate..............................................................      3
     1.4      Annual Salary..........................................................      3
     1.5      Annuity Starting Date..................................................      4
     1.6      Average Annual Salary..................................................      4
     1.7      Board..................................................................      4
     1.8      Code...................................................................      4
     1.9      Commonwealth Pension Plan..............................................      5
     1.10     Company................................................................      5
     1.11     Covered Compensation...................................................      5
     1.12     Credited Service.......................................................      5
     1.13     Deferred Retirement Date...............................................      6
     1.14     Early Retirement Date..................................................      6
     1.15     Effective Date.........................................................      6
     1.16     Eligible Employee......................................................      6
     1.17     Employee...............................................................      7
     1.18     Employment Year........................................................      7
     1.19     ERISA..................................................................      7
     1.20     Fresh-Start Date.......................................................      7
     1.21     Frozen Retirement Benefit..............................................      7
     1.22     Hour of Service........................................................     12
     1.23     Investment Manager.....................................................     14
     1.24     Normal Retirement Date.................................................     15
     1.25     One-Year Break in Service..............................................     15
     1.26     Participant............................................................     16
     1.27     Participating Employer.................................................     16
     1.28     Plan...................................................................     16
     1.29     Plan Administrator.....................................................     16
     1.30     Required Beginning Date................................................     16
     1.31     Spouse.................................................................     17
     1.32     Termination of Employment..............................................     17
     1.33     Trust Agreement........................................................     17
     1.34     Trust Fund.............................................................     17
     1.35     Trustee................................................................     18
     1.36     Year of Service........................................................     18
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ARTICLE II - Participation...........................................................     19

     2.1      Eligibility to Participate.............................................     19
     2.2      Employment with a Predecessor..........................................     19
     2.3      Periods of Non-Covered Employment......................................     19
     2.4      Service as a Leased Employee...........................................     20
     2.5      Employment with a Successor............................................     21
     2.6      Termination of Participation...........................................     21
     2.7      Reemployment After Military Service....................................     22

ARTICLE III - Contributions..........................................................     23

ARTICLE IV - Retirement Dates........................................................     25

     4.1      Normal Retirement Date.................................................     25
     4.2      Early Retirement Date..................................................     25
     4.3      Deferred Retirement Date...............................................     25

ARTICLE V -  Benefits................................................................     26

     5.1      Normal Retirement Benefit..............................................     26
     5.2      Early Retirement Benefit...............................................     26
     5.3      Deferred Retirement Benefit............................................     27
     5.4      Retirement Benefit in Event of Disability..............................     27
     5.5      Minimum Benefit........................................................     29
     5.6      Deduction for Other Pension............................................     29

ARTICLE VI - Payment of Benefits.....................................................     31

     6.1      Standard...............................................................     31
     6.2      Minimum Distribution Requirements......................................     32
     6.3      Qualified Joint and Survivor Annuity...................................     32
     6.4      Joint and Survivor Annuity Option......................................     35
     6.5      Payment of Small Benefits..............................................     36
     6.6      General Rules and Restrictions.........................................     36
     6.7      Direct Rollover of Benefits from Plan..................................     37

ARTICLE VII - Death Benefits.........................................................     39

     7.1      Death While Employed...................................................     39
     7.2      Death After Vested Termination of Employment...........................     39
     7.3      Commencement of Surviving Spouse's Annuity.............................     40
     7.4      Special Rule Concerning Joint and Survivor Annuity.....................     41
     7.5      Lump Sum Payment of Spouse's Annuity...................................     41

ARTICLE VIII - Termination of Employment.............................................     42

     8.1      Termination After 5 or More Years of Service...........................     42
     8.2      Early Commencement of Termination Benefit..............................     42
     8.3      Payment of Benefits....................................................     42
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ARTICLE IX - Reemployment............................................................     43

     9.1      Reemployment Without Intervening Break in Service......................     43
     9.2      Reemployment After Intervening Break in Service........................     43
     9.3      Reemployment After Normal Retirement Date..............................     44
     9.4      Form of Benefit........................................................     45

ARTICLE X - Funding..................................................................     47

     10.1     Establishment of Trust.................................................     47
     10.2     Administration of the Trust............................................     47
     10.3     General................................................................     48
     10.4     Changes in Funding Medium..............................................     48

ARTICLE XI - Administration of the Plan..............................................     49

     11.1     General................................................................     49
     11.2     Disputes...............................................................     50
     11.3     Plan Expenses..........................................................     51

ARTICLE XII - Limitation on Assignment of Benefits...................................     52

     12.1     Limitation on Assignment of Benefits...................................     52

ARTICLE XIII - Miscellaneous ........................................................     53

     13.1     Limitation of Rights...................................................     53
     13.2     Actions of Participating Employers.....................................     53
     13.3     Inability to Locate Payee..............................................     54
     13.4     Exclusivity of Benefits................................................     54
     13.5     Distributions on Behalf of Incapacitated Persons.......................     54
     13.6     Determination as to Payment of Benefits by the Plan Administrator......     54
     13.7     Withholding Requirements...............................................     54

ARTICLE XIV - Limitation on Benefits.................................................     55

     14.1     Maximum Limitations....................................................     55

ARTICLE XV - Amendment or Termination of the Plan....................................     56

     15.1     Right to Amend or Terminate............................................     56
     15.2     Complete Termination of the Plan.......................................     57
     15.3     Partial Termination of the Plan........................................     60
     15.4     Mergers, Consolidations and Transfers..................................     60
     15.5     Withdrawal by a Participating Employer.................................     61

ARTICLE XVI - Pre-Termination Restrictions...........................................     63

      16.1     Limitation............................................................     63
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ARTICLE XVII - Top-Heavy Provisions..................................................     65

     17.1     Definitions............................................................     65
     17.2     Vesting................................................................     68
     17.3     Minimum Accrued Benefit................................................     69
     17.4     Change in Section 415 Limitations......................................     70

ARTICLE XVIII - Construction of the Plan.............................................     71

SCHEDULE A - Participating Employers.................................................     72
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                         RADIAN GROUP INC. PENSION PLAN
                 AMENDED AND RESTATED EFFECTIVE JANUARY 1, 1997

                                    Preamble

      WHEREAS, Radian Group Inc. (formerly known as, CMAC Investment
Corporation) (the "Company") adopted the Radian Group Inc. Pension Plan
(formerly known as, the CMAC Investment Corporation Pension Plan) (the "Plan"),
effective November 6, 1992, for the benefit of its eligible employees and the
eligible employees of the Participating Companies in the United States; and

      WHEREAS, the Company has amended the Plan several times before; and

      WHEREAS, the Company desires at this time to amend and restate the Radian
Group Inc. Pension Plan to, among other things, incorporate the applicable
provisions of the Uruguay Round Agreement Act, the Uniformed Services Employment
and Reemployment Act of 1994, the Small Business Job Protection Act of 1996, and
the Taxpayer Relief Act of 1997 (collectively, "GUST") and other amendments
which were made to the Plan by the Company since the Plan's last restatement;
and

      WHEREAS, the Company also desires to make other changes;

      NOW, THEREFORE, effective January 1, 1997 (except as otherwise set forth
herein), the Plan is hereby amended and restated as hereinafter set forth.

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                                    ARTICLE I
                                   Definitions

      The following words and phrases when used herein shall have the meanings
set forth below.

      1.1 "Accrued Benefit" means, for any Participant as of any date, the
amount of benefit earned to such date, payable as a Single Life Annuity
beginning at the Participant's Normal Retirement Date calculated in accordance
with Section 5.1 of the Plan.

      1.2 "Actuarial Equivalent" means a benefit having an equivalent value of
the Single Life Annuity based upon the 1971 TPF&C Forecast Mortality Table for
males set back two years and an interest rate of 6% compounded annually, except
as otherwise specifically provided below. Except as otherwise specifically
provided, such factors and tables shall also be used in applying "actuarial
value", "present value", "actuarially reduced" and other similar terms.

      Effective January 1, 2002, the present value of a Participant's benefit,
payable in the form of a lump sum, shall be calculated by using the Applicable
Interest Rate and Applicable Mortality Table. The "Applicable Interest Rate"
shall be the average annual rate of interest on 30-year Treasury securities, as
determined by Regulation or other Internal Revenue Service guidance for this
purpose, determined during the November preceding the Plan Year during which the
Annuity Starting Date occurs. The "Applicable Mortality Table" shall be the
mortality table based on the prevailing Commissioners' standard table (described
in Section 807(d)(5)(A) of the Code) used to determine reserves for group
annuity contracts issued on the date as of which present value is being
determined (without regard to any other subparagraph of Section 807(d)(5) of the
Code), that is prescribed by the Commissioner in revenue rulings, notices and
other guidelines published in the Internal Revenue Bulletin. Provided however,
with respect to any distribution in the form of a lump sum with an Annuity
Starting Date that occurs within the 12-month period beginning on January 1,
2002, the amount of

                                      -2-
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such lump sum distribution shall be the greater of the amount that would be
determined under the Plan using the assumptions described in this paragraph or
the amount determined using the assumptions described in the next following
paragraph.

            Prior to January 1, 2002, the present value of a Participant's
benefit, payable in the form of a lump sum, shall be calculated on the basis of
the interest rates in use by the Pension Benefit Guaranty Corporation, for the
purpose of valuing immediate and deferred annuities provided under terminating
single employer pension plans, on January 1 of the calendar year in which the
distribution occurs and on the UP-1984 Mortality Table (except that in
determining the value of the Participant's benefit at the date of any prior
benefit payment, the interest rates used shall be those applicable to a lump sum
payable at the time of such prior benefit payment).

      1.3 "Affiliate" means any corporation or other trade or business that
together with any Participating Employer is deemed a single employer under Code
Sections 414(b), 414(c) or 414(m), or is required to be aggregated with a
Participating Employer pursuant to Code Section 414(o), with any such entity to
be considered an Affiliate under the Plan (i) during any such period of
affiliated or required aggregated status, and (ii) to the extent specifically
provided elsewhere in the Plan, during any period preceding a period of such
affiliated status.

      1.4 "Annual Salary" means, as of any January 1, the basic annual salary
rate or annualized hourly wage rate of a Participant then in effect (excluding
overtime, bonuses or any other form of additional compensation, but including
all amounts that would have been paid as basic salary had the Participant not
elected a reduction in salary under any plan maintained by a Participating
Employer that qualifies under Code Sections 125, 132(f) or 401(k)).

      For purposes hereof, in the case of any Participant who is employed on a
part-time basis on any January 1, his Annual Salary for such January 1 shall be
determined as if he were employed on a full-time basis.

                                      -3-
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      Notwithstanding the foregoing, a Participant's Annual Salary for purposes
of the Plan for any calendar year beginning after December 31, 1988, but before
January 1, 1994 shall not exceed $200,000 (or such greater amount as may be
permissible under Code Section 401(a)(17)). For calendar years beginning after
December 31, 1993 a Participant's Annual Salary for purposes of the Plan shall
not exceed $150,000 (or such greater amount as may be permissible under Code
Section 401(a)(17).

      In determining the Annual Salary of a Participant, with respect to
calendar years beginning prior to January 1, 1997, for purposes of the
application of the limitation under Code Section 401(a)(17), the rules of Code
Section 414(q)(6) shall apply, except that in applying such rules, the term
"family" shall include only the spouse of the Participant and any lineal
descendants of the Participant who have not attained age 19 before the close of
the year. For purposes of this paragraph, a Participant is an Eligible Employee
who either is a 5% owner or is both a highly compensated employee and one of the
ten most highly compensated employees. If, as a result of the application of
these rules, the Code Section 401(a)(17) limitation is exceeded, then (except
for purposes of determining the portion of a Participant's Annual Salary up to
integration level) the limitation shall be prorated among the affected persons
in proportion to each such Participant's Annual Salary as determined under this
paragraph prior to the application of this limitation.

      1.5 "Annuity Starting Date" means the first day of the first period for
which an amount is payable as an annuity, or in the case of a benefit not
payable in the form of an annuity, the first day on which all events have
occurred which entitle the Participant to such benefit.

      1.6 "Average Annual Salary" means the average of a Participant's Annual
Salary rates on January 1 of the five consecutive calendar years of his years of
highest Annual Salary. If a Participant has not been an Eligible Employee on
January 1 of five consecutive calendar years, his Average Annual Salary shall be
based on the last five January 1 dates (or the actual number of such January 1
dates, if less than five) on which he is an Eligible Employee, whether or not
consecutive.

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      1.7 "Board" means the Board of Directors of the Company.

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

      1.9 "Commonwealth Pension Plan" means the Commonwealth Land Title
Insurance Company Pension Plan, as in effect on the Effective Date.

      1.10 "Company" means Radian Group Inc., a Pennsylvania Corporation, or any
successor or assignee which adopts this Plan in writing.

      1.11 "Covered Compensation" means the average of the annual Social
Security taxable wage bases in effect for each calendar year during the 35-year
period ending with the last day of the calendar year in which the Participant
attains or will attain Social Security retirement age, as defined in Code
Section 415(b)(8). A Participant's Covered Compensation for a calendar year
after the 35-year period shall be the Participant's Covered Compensation for the
calendar year during which the 35-year period ends. Covered Compensation shall
be determined annually pursuant to the Rounded Table of Covered Compensation
issued by the Internal Revenue Service, not taking into account any changes in
such Table after a Participant's date of retirement or other Termination of
Service.

      1.12 "Credited Service" means the period of an Eligible Employee's service
with a Participating Employer (except as provided below) which is taken into
account in determining the amount of his Accrued Benefit. Credited Service shall
be computed in accordance with the following rules:

      (a)   With respect of an Eligible Employee's service prior to the end of
            his Employment Year that includes December 31, 1975, an Eligible
            Employee who was a participant under the Commonwealth Pension Plan
            on December 31, 1975, or would have been a participant thereunder on
            such date but for the maximum eligibility age provision of the
            Commonwealth Pension Plan as then in effect, shall be credited with
            a number of years of Credited Service equal to his years of
            "Service" (as

                                      -5-
<PAGE>
            defined in the Commonwealth Pension Plan as in effect on December
            31, 1975) after his twentieth birthday; provided, however, that
            Credited Service shall not be taken into account for any period
            during which an Eligible Employee was eligible but did not elect to
            participate in a "Superseded Plan" (as defined in the Commonwealth
            Pension Plan as in effect on the date preceding the Effective Date).

      (b)   With respect of Employment Years that begin after December 31, 1975,
            an Eligible Employee shall be credited with a year of Credited
            Service for each Employment Year after his twentieth birthday during
            which he is employed by a Participating Employer; provided, however,
            that if an Employee is not employed as an Eligible Employee by a
            Participating Employer for an entire Employment Year, he shall be
            credited with a fraction of a year of Credited Service (not to
            exceed one-twelfth multiplied by the number of months during such
            Employment Year in which he is an Eligible Employee) equal to the
            ratio that his Hours of Service as an Eligible Employee in the
            portion of such Employment Year bear to 2,080, except that no
            Credited Service shall be given for any portion of an Employment
            Year if such Eligible Employee is credited with less than 1,000
            Hours of Service as an Eligible Employee during such Employment Year
            unless such Eligible Employee retires or dies during such Employment
            Year. Notwithstanding the foregoing, in the case of an Eligible
            Employee who commenced employment after age 60 and prior to January
            1, 1988, no Credited Service shall be credited with respect to any
            period of employment prior to January 1, 1988.

      1.13 "Deferred Retirement Date" means the date for deferred retirement
specified in Section 4.3 of the Plan.

      1.14 "Early Retirement Date" means the date of eligibility for early
retirement specified in Section 4.2 of the Plan.

                                      -6-
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      1.15 "Effective Date" means November 6, 1992, the closing date of the
initial public offering of the Company's common stock.

      1.16 "Eligible Employee" means any Employee who is employed by a
Participating Employer and who is classified by the Participating Employer as a
common law employee, except that Employees whose employment is covered by a
collective bargaining agreement shall not be Eligible Employees unless such
agreement specifically provides for their participation in the Plan. For
purposes of determining eligibility under the Plan, the classification to which
an individual is assigned by a Participating Employer shall be final and
conclusive, regardless of whether a court, a governmental agency or other entity
subsequently finds such individual should have been assigned a different
classification.

      1.17 "Employee" means an individual who is reported on payroll records as
a common law employee of a Participating Employer or Affiliate (but not by a
joint venture in which the Participating Employer is a joint venturer) or an
Affiliate. A person who is not a common law employee of a Participating Employer
or Affiliate shall be deemed to be a common law employee by such entity if he is
a leased employee with respect to whose services such Participating Employer or
Affiliate is the recipient within the meaning of Code Section 414(n), but to
whom Code Section 414(n)(5) does not apply and then only if the coverage
requirements of Code Section 410(b) would otherwise not be met.

      1.18 "Employment Year" means the twelve-month period beginning on the date
an Employee first completes an Hour of Service and the successive twelve-month
periods beginning, respectively, on each anniversary of such date.

      1.19 "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

      1.20 "Fresh-Start Date" means the last day of the calendar year preceding
a calendar year for which any amendment of the Plan that directly or indirectly
affects the amount of a Participant's Retirement Benefit determined under the
current benefit formula is made effective.

                                      -7-
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      1.21 "Frozen Retirement Benefit" means a Participant's Retirement Benefit
under the Plan determined as of the latest Fresh-Start Date as if a Participant
terminated employment with a Participating Employer on that date and without
regard to any amendment to the Plan adopted after that date, other than
amendments recognized as effective as of or before that date under Code Section
401(b) or Section 1.401(a)(4)-11(g) of the Treasury Regulations.

      If, as of the latest Fresh-Start Date, the amount of a Participant's
Frozen Retirement Benefit was limited by the application of Code Section 415,
the Participant's Frozen Retirement Benefit will be increased for years after
the latest Fresh-Start Date to the extent permitted under Code Section
415(d)(1). In addition, the Frozen Retirement Benefit of a Participant whose
Frozen Retirement Benefit includes the top heavy minimum benefits provided in
Section 17.3 of the Plan, will be increased to the extent necessary to comply
with the average compensation requirement of Code Section 416(c)(1)(D)(i).

      If (a) the Plan's standard form of benefit is in effect on the latest
Fresh-Start Date and is not the same as the standard form under the Plan after
the latest Fresh-Start Date and/or (b) Normal Retirement Date for any
Participant or that date was greater than the Normal Retirement Date for that
Participant under the Plan after the latest Fresh-Start Date, the stated Frozen
Retirement Benefit will be expressed as an actuarially equivalent benefit in the
standard form under the Plan after the latest Fresh-Start Date commencing at the
Participant's Normal Retirement Date under the Plan in effect after the latest
Fresh-Start Date.

      Each Participant's Frozen Retirement Benefit will be increased to the
extent necessary as that the base benefit percentage determined with reference
to all years of Credited Service as of the latest Fresh-Start Date.

      Each Participant's offset applied to determine the Frozen Retirement
Benefit will be decreased to the extent necessary so that it does not exceed 50
percent of the

                                      -8-
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benefit determined without applying the offset taking into account all years of
Credited Service as of the latest Fresh-Start Date.

      With respect to any Participant with at least one Hour of Service in a
calendar year beginning after the Fresh-Start Date, the Participant's Frozen
Retirement Benefit (as adjusted above, if applicable) shall be multiplied by a
fraction not less than one, the numerator of which is the Participant's Average
Annual Salary for the current calendar year and the denominator of which is the
Participant's Average Annual Salary for the calendar year ending on the
Fresh-Start Date, determined in the same manner as the numerator.

      If the latest Fresh-Start Date is the last day of the last calendar year
beginning before January 1, 1989, the Frozen Retirement Benefit of any Code
Section 401(a)(17) Participant will be adjusted in accordance with the old
salary fraction, except that the numerator will be determined after applying
Code Section 401(a)(17) compensation limit for the current year and the
denominator will be determined as of the last day of the last calendar year
beginning before January 1, 1989 without regard to Code Section 401(a)(17)
compensation limit.

      If the latest Fresh-Start Date is later than the last day of the last
calendar year beginning before January 1, 1989 the benefit determined after the
latest Fresh-Start Date for any participant who is a Code Section 401(a)(17)
Participant will be adjusted under the following method:

      (a)   Determine the Participant's Frozen Retirement Benefit as the latest
            Fresh-Start Date

      (b)   Determine an amount equal to the Participant's Frozen Retirement
            Benefit at the end of the last calendar year beginning before
            January 1, 1989

      (c)   Adjust through the latest Fresh-Start Date the amount in (b) as
            provided under the old salary fraction except that the numerator
            will be

                                      -9-
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            determined after applying Code Section 401(a)(17) compensation limit
            for the year ending on the latest Fresh-Start Date, and the
            denominator will be determined as of the last day of the last
            calendar year beginning before January 1, 1989 without regard to
            Code Section 401(a)(17) compensation limit.

      (d)   Subtract the amount determined in (c) above from the amount
            determined in (a) above

      (e)   Adjust the amount in (d) under the rules applied to Participants who
            are not Code Section 401(a)(17) Participants

      (f)   Adjust the amount in (c) as provided under the old salary fraction
            except that the numerator will be determined after applying Code
            Section 401(a)(17) compensation limit for the current year, and the
            denominator will be determined as of the last day of the last
            calendar year before January 1, 1989, without regard to Code Section
            401(a)(17).

      (g)   The total adjusted accrued benefit of the Code Section 401(a)(17)
            Participant after the latest Fresh-Start Date is the sum of the
            amounts (e) and (f) above.

      If this Section satisfies the requirement of Section 1.401(a)-13(d) of the
Treasury Regulations for a Fresh-Start as of the last day of the last calendar
year beginning before January 1, 1994, then notwithstanding any other provisions
of the Plan any "Code Section 401(a)(17) employee's" Retirement Benefit frozen
in accordance with Section 1.401(a)(11)-13 of the Treasury Regulation as of a
Fresh-Start date is adjusted after the Fresh Start Date. However this adjustment
may be made only if the adjustment will not cause the Plan to fail to satisfy
the consistency requirement of Section 1.401(a)(4)-13(c) of the Treasury
Regulations as modified by Section 1.401(a)(17)-1(e) of the proposed Treasury
Regulations.

                                      -10-
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      In determining a "Code Section 401(a)(17) employee's" Retirement Benefit
in any Plan Year beginning on or after January 1, 1994 the portion of the
Employee's Frozen Retirement Benefit attributable to Plan Years beginning before
January 1, 1994, will be determined in accordance with method A for "statutory
Code Section 401(a)(17) employees" and method B for "Code Section 401(a)(17)
employees" other than "statutory Code Section 401(a) (17) employees."

      A "statutory Code Section 401(a)(17) employee" means an Employee whose
current Retirement Benefit as of a date on or after the first day of the first
calendar year beginning on or after January 1, 1994, is based on an Annual
Salary for a year beginning prior to the first date of the first Plan Year
beginning on or after January 1, 1989 that exceeded $200,000.

      A "Code Section 401(a)(17) employee" means an Employee whose current
Retirement Benefit as of a date on or after the first day of the first calendar
year beginning on or after January 1, 1994 is based on Annual Salary for a year
beginning prior to the first day of the first calendar year beginning on or
after January 1, 1994 that exceeded $150,000.

      Method A: ("Statutory Code Section 401(a)(17) employees")

      Step 1: Determine each "statutory Code Section 401(a)(17) employee's"
Retirement Benefit as of the last day of the last Plan Year beginning before
January 1, 1993, frozen in accordance with Section 1.401(a)(4)-13 of the
Treasury Regulations.

      Step 2: Adjust the amount in Step 1 up through the last day of the last
calendar year beginning before the first calendar year beginning on or after
January 1, 1994, under the method provided under the Plan for increasing the
amount in Step 1 to take into account increases in annual salary in calendar
years beginning on or after January 1, 1989. However, if the Plan does not
provide for such increases, the amount in Step 2 shall be equal to the amount in
Step 1.

                                      -11-
<PAGE>
      Step 3: Determine the "statutory Code Section 401(a)(17) employee's"
Retirement Benefit as of the last day of the last calendar year beginning before
January 1, 1994, frozen in accordance with Section 1.401(a)(4)-13 of the
Treasury Regulations.

      Step 4: Subtract the amount determined in Step 2 from the amount in Step
3.

      Step 5: Adjust the amount in Step 4 by multiplying it by the following
fraction (not less than 1) the numerator of the fraction is the "statutory Code
Section 401(a)(17) employee's" average salary determined for the current year
(as limited by Code Section 401 (a)(17)) using the same definition and
compensation formula in effect as of the last day of the last calendar year
beginning before January 1, 1994 the denominator of the fraction is the
Employee's average salary for the last day of the last calendar year beginning
before January 1, 1994 using the definition and salary formula in effect as of
the last day of the last calendar year beginning before January 1, 1994.

      Step 6: Adjust the amount in Step 1 by multiplying it by the following
fraction (not less than 1). The numerator of the fraction is the "statutory Code
Section 401(a)(17) employee's" average salary for the current year (as limited
by Code Section 401(a)(17)), using the same definition of salary and salary
formula in effect as of the last day of the last calendar year beginning before
January 1, 1989.

      Step 7: Add the amounts determined in Step 5, and the greater of Steps for
2.

      Method B: ("Code Section 401(a)(17) employees" other than "statutory Code
Section 401(a)(17) employees")

      Step 1: Determine the Retirement Benefit of each "Code Section 401(a)(17)
employee" other than "statutory Code Section 401(a)(17) employees" as of the
last day of the calendar year beginning before January 1, 1994, frozen in
accordance with Section 1.401(a)(4)-13 of the Treasury Regulations.

                                      -12-
<PAGE>
      Step 2: Adjust the amount in Step 1 by multiplying it by the following
fraction (not less than 1) the numerator of the fraction is the average salary
of the "Code Section 401(a)(17) employee" who is not a statutory Code Section
401(a)(17) employee determined for the current year (as limited by Code Section
401(a)(17)), using the definition and salary formula in effect as of the last
day of the last calendar year beginning before January 1, 1994 the denominator
of the fraction is the employee's average salary for the last day of the last
calendar year beginning before January 1, 1994 using the definition and salary
formula in effect as of the last day of the last calendar year beginning before
January 1, 1994.

      1.22 "Hour of Service" means each hour for which an Employee is paid, or
entitled to payment, by a Participating Employer or Affiliate, for the
performance of services. An Employee shall also be credited with Hours of
Service for (a) any non-work period (occurring prior to Termination of
Employment) for which he is paid, or entitled to payment, by a Participating
Employer or Affiliate on account of vacation, holiday, illness, incapacity
(including disability), layoff, jury duty, military duty or leave of absence,
and (b) all periods of compulsory service in the Armed Forces of the United
States of America, provided the Employee returns to employment within three
months following the date upon which he becomes eligible for separation from
active duty in the Armed Forces (or such longer period during which his
employment rights are protected by law). Hours of Service credited for a period
described under (b) shall be based on the Participant's customarily scheduled
working hours.

      Notwithstanding the foregoing, to the extent required by ERISA, if an
Employee terminates employment and is paid (or is entitled to payment), for a
period beginning immediately thereafter, by a Participating Employer or
Affiliate for one of the reasons listed in (a) above (and would not otherwise be
entitled to credit for such period), he shall continue to be credited with Hours
of Service (but shall accrue no additional benefits) until the earlier of (1)
the cessation of such payments or (2) the date he has been credited with 501
Hours of Service since his last day of active work.

      For purposes of this Section, the following rules shall apply:

                                      -13-
<PAGE>
      (a)   A payment shall be deemed to be made by, or due from, a
            Participating Employer or Affiliate whether such payment is made by
            the Participating Employer or Affiliate directly, or is made
            indirectly through a trust fund or an insurer (or other entity) to
            which the Participating Employer or Affiliate contributes or pays
            premiums (regardless of whether such contributions or premiums are
            for the benefit of particular Employees or are on behalf of a group
            of Employees in the aggregate); provided, however, that any payment
            made or due (1) under a plan maintained solely to comply with
            applicable unemployment compensation, workmen's compensation or
            disability insurance laws (or any similar law), or (2) solely to
            reimburse an Employee for medical or medically related expenses
            incurred by the employee (or a member of his family) shall not be
            considered to be direct or indirect compensation paid or due from
            the Participating Employer or Affiliate; and

      (b)   An Employee shall be considered to be entitled to pay for any hour
            during any of the periods described above for which back pay is
            either awarded or agreed to by a Participating Employer or Affiliate
            (irrespective of mitigation of damages).

      (c)   Hours of Service credited for any period of full-time employment by
            an Employee shall be calculated by crediting him with 45 Hours of
            Service for each calendar week in such period for which he is
            entitled to be credited with at least one Hour of Service; provided,
            however, that number of Hours of Service credited with respect to
            any period of absence (including the week such absence begins and
            the week such absence ends) shall in no event exceed the actual
            number of weeks of such absence (including such beginning and ending
            weeks) multiplied by 45. This rule shall not be used to determine
            whether such Employee's employment during any calendar month after
            his Normal Retirement Date involves less than 40 Hours of Service
            for purposes of Sections 5.3 and 9.2 of the Plan.

                                      -14-
<PAGE>
      (d) Notwithstanding the foregoing, for eligibility and vesting purposes
only, if an Employee who is not employed on a full-time basis terminates service
on account of military service and returns to employment with the Employer with
legally protected reemployment rights, he shall be credited with a number of
Hours of Service for each week of absence for military service equal to the
number of hours of work in his customary work week at the time the absence
began.

The number of Hours of Service to be credited in accordance with the foregoing,
and the calendar year (or other applicable computation period) to which such
Hours are credited, shall be determined by the Plan Administrator in accordance
with the rules set forth in Labor Department Regulations 2530.200b2-(b) and (c).

      1.23 "Investment Manager" means any investment advisor registered under
the Investment Advisors Act of 1940, a bank (other than a Trustee) as defined in
such Act, or an insurance company qualified to perform investment management
services under the laws of more than one State, which shall have acknowledged in
writing that it is a fiduciary with respect to the Plan.

      1.24 "Normal Retirement Date" means the date for normal retirement
specified in Section 4.1 of the Plan.

      1.25 "One-Year Break in Service" means any Employment Year during which a
Participant does not have any Hours of Service.

      For purposes only of determining whether a Participant has incurred a
One-Year Break in Service, a Participant shall be credited with Hours of Service
for any non-work period of maternity or paternity leave in accordance with the
following rules:

      (a)   Such Hours of Service shall be credited for such purpose in the
            Employment Year in which the leave begins if necessary to avoid a
            One-Year Break in Service during such calendar year, and shall
            otherwise be credited in the next following Employment Year for such

                                      -15-
<PAGE>
            purpose. Any Hours of Service credit provided under this Section
            shall, solely for such purpose, replace any credit for the same
            Hours of Service that would otherwise be given under any other
            provision of the Plan.

      (b)   For purposes hereof, a period of maternity or paternity leave shall
            mean an absence from work (1) by reason of the Employee's pregnancy
            or the birth of the Employee's child, (2) by reason of the placement
            of a child with the Employee in connection with the Employee's
            adoption of such child or (3) for purposes of caring for such child
            for a period beginning immediately after such birth or placement.

      (c)   The number of Hours of Service credited in respect of such maternity
            or paternity leave shall be based upon the number of Hours of
            Service which otherwise would normally have been credited to the
            Employee but for such absence or, in any case in which the Plan
            Administrator is unable to determine such normal Hours of Service,
            shall be 8 Hours of Service per day of absence.

      (d)   Notwithstanding the foregoing, no credit shall be given under this
            Section unless the Employee furnishes to the Plan Administrator
            (within the time period specified by the Plan Administrator) such
            information as the Plan Administrator shall require to establish the
            extent of the period of absence that constitutes a period of
            maternity or paternity absence under clause (b) above.

      1.26 "Participant" means any person included in the Plan in accordance
with the provisions of Article II whose participation has not been terminated
thereunder.

      1.27 "Participating Employer" means, collectively or individually, as the
context may indicate, the Company and any Affiliate that shall be designated by
the Board as a Participating Employer and that shall have adopted the Plan, with
any such Affiliate to be considered a Participating Employer under the Plan only
during its

                                      -16-
<PAGE>
actual period of participation, except to the extent otherwise specifically
provided in Schedule A to the Plan.

      1.28 "Plan" means this Radian Group Inc. Pension Plan, as it may be
amended from time to time.

      1.29 "Plan Administrator" means the Company or any person or entity
delegated as such by the Board, as described in Section 11.1 of the Plan.

      1.30 "Required Beginning Date" means, for any Participant:

      (a) if he attained age 70-1/2 on or after January 1, 1996, the April 1 of
      the calendar year following the calendar year in which occurs the later of
      (1) his attainment of age 70-1/2 or (2) his Termination of Employment;
      provided, however, if he is a 5-percent owner (within the meaning of Code
      Section 416) of a Participating Employer, clause (2) shall not apply;

      (b) if he attained age 70-1/2 before January 1, 1988, and is not a
      5-percent owner (within the meaning of Code Section 416) of a
      Participating Employer, April 1 of the calendar year following the later
      of the calendar year in which he has a Termination of Employment or the
      calendar year in which he attained age 70-1/2;

      (c) if he attained age 70-1/2 before January 1, 1988, and is a 5-percent
      owner (within the meaning of Code Section 416) of a Participating
      Employer, the later of December 31, 1987 or April 1 of the calendar year
      following the calendar year in which he attained age 70-1/2;

      (d) if he attained age 70-1/2 before January 1, 1989 and after December
      31, 1987, is not a 5-percent owner (within the meaning of Code Section
      416) of a Participating Employer, and has not had a Termination of
      Employment before January 1, 1989, April 1, 1990;

      (e) if he attains age 70-1/2 on or after January 1, 1989, April 1 of the
      calendar year next following the calendar year in which he attains Age
      70-1/2.

                                      -17-
<PAGE>
      1.31 "Spouse" or "Surviving Spouse" means the person to whom the
Participant is married on his Annuity Starting Date (without regard to whether
the marriage terminates at a later date).

      1.32 "Termination of Employment" means, for any Employee, his death,
retirement, resignation, discharge or any absence that causes him to cease to be
an Employee of a Participating Employer or any Affiliate.

      1.33 "Trust Agreement" means any trust agreement which the Company has
entered into or adopted for purposes of funding benefits under the Plan as
described in Section 10.1 of the Plan, collectively referred to as the "Trust
Agreements".

      1.34 "Trust Fund" means the trust fund established and maintained under
any Trust Agreement for the purpose of holding the assets of the Plan, out of
which benefits payable under this Plan shall be paid.

      1.35 "Trustee" means the trustee under any Trust Agreement, collectively
referred to as the "Trustees".

      1.36 "Year of Service" means, for any Employee, each Employment Year
(ending on or after January 1, 1976) that begins after he attains age 18 during
which the Employee completes at least 1,000 Hours of Service.

      An Employee's Years of Service for periods prior to January 1, 1976 shall
equal his full years of service after attaining age 20 as determined under the
Commonwealth Pension Plan as in effect on December 31, 1975; provided, however,
that an Employee shall not be credited with a Year of Service for any period
prior to January 1, 1976 for any period during which he was eligible to
participate in a "Superseded Plan" (as defined in the Commonwealth Pension Plan
as in effect on the date preceding the Effective Date) but did not do so.

                                      -18-
<PAGE>
      For purposes of determining Years of Service, each employee of Amerin
Guaranty Corporation as of the date Amerin Guaranty Corporation merged with the
Company shall be credited with service with Amerin Guaranty Corporation.

                                      -19-
<PAGE>
                                   ARTICLE II
                                  Participation

      2.1 Eligibility to Participate. Each person who was an Eligible Employee
and a participant in the Commonwealth Plan on the date immediately preceding the
Effective Date shall become a Participant in the Plan on the Effective Date, if
he is then an Eligible Employee.

      Each other Eligible Employee shall become a Participant on the first day
of the Employment Year that next follows the later of (i) the date on which he
first performs an Hour of Service as an Employee and (ii) the date he attains
age 20-1/2, if he is then an Eligible Employee.

      Notwithstanding the foregoing, each Eligible Employee who is employed on a
part-time or temporary basis and who was not a Participant on the Effective
Date, shall become a Participant on the first day of the Employment Year or the
first day of the seventh month of the Employment Year that next follows the
later of (a) the date on which he completes 1,000 Hours of Service during an
Employment Year and (b) the date he attains age 20-1/2, if he is then an
Eligible Employee

      2.2 Employment with a Predecessor. A person shall receive service credit
for any period of employment with a predecessor to a Participating Employer to
the extent (a) explicitly provided in the Plan or (b) required by Code Section
414(a)(1) or under regulations prescribed pursuant to Code Section 414(a)(2).

      2.3 Periods of Non-Covered Employment. Any period during which a person is
employed by an Affiliate that is not a Participating Employer (either before or
after employment covered by the Plan) shall be treated as employment as an
Employee for all purposes of the Plan, except that (a) no person may become a
Participant during any such period and (b) such period shall not constitute a
period of Credited Service for purposes of determining the amount of his Accrued
Benefit. If an Employee transfers from employment with a Participating Employer
to employment with an

                                      -20-
<PAGE>
Affiliate that is not a Participating Employer, his employment hereunder will be
deemed terminated hereunder at such time as he shall cease to be employed by
either the Participating Employers or any Affiliate.

      Any period during which a person is employed by a Participating Employer
in a non-covered position (i.e., other than as an Employee), either before or
after employment covered by the Plan, shall be treated as employment as an
Employee for all purposes of the Plan, except as provided in clauses (a) and (b)
of this Section 2.3 of the Plan.

      For purposes of determining eligibility under Article II of the Plan, each
employee of Amerin Guaranty Corporation as of the date Amerin Guaranty
Corporation merged with the Company shall be credited with service with Amerin
Guaranty Corporation.

      2.4 Service as a Leased Employee. In the case of any person who is a
"leased employee" of a Participating Employer or an Affiliate, the entire period
during which the person performs services for the Participating Employer or an
Affiliate shall be treated as employment hereunder for all purposes of the Plan,
except that (a) no person may become a Participant during any such period and
(b) no person may accrue service for purposes of determining benefits under
Section 5.1 of the Plan during any such period (assuming such period is not
taken into account under any other provisions of the Plan).

      A person who is performing services for a Participating Employer (and is
not a common-law employee of the Participating Employer or Affiliate) shall be
considered a "leased employee" if:

      (a)   such services are provided pursuant to an agreement between the
            Participating Employer and any other entity (hereinafter referred to
            as the "leasing organization"),

                                      -21-
<PAGE>
      (b)   such person has performed the services for the Participating
            Employer (or a related company, within the meaning of Code Section
            144(a)(3)) on a substantially full-time basis for a period of at
            least one year, and

      (c)   such services are performed under the primary direction or control
            of the Participating Employer.

      Notwithstanding the foregoing, a person shall not be considered a leased
      employee if (1) he is covered by a plan maintained by the leasing
      organization that constitutes a safe harbor plan under Code Section
      414(n)(5) and (2) leased employees do not constitute more than 20 percent
      of the Participating Employer's non-highly compensated work force. A
      Participating Employer may rely upon a written certificate by the leasing
      organization as to whether a person is covered by a plan of the type
      described.

      2.5 Employment with a Successor. Notwithstanding anything elsewhere in the
Plan to the contrary, if a Participant ceases to be employed by any
Participating Employer or Affiliate as a result of a stock or asset sale or as a
result of any other corporate reorganization, but (because of employment with a
successor employer) he does not have a "separation from service" as that term is
defined for purposes of Code Section 402(e), no benefits shall be payable to him
until he ceases to be employed by such successor employer (or any affiliate
thereof within the meaning of Code Sections 414(b) or 414(c)) but he shall not
be treated as continuing in employment for any other purpose.

      2.6 Termination of Participation. The participation of a Participant shall
cease at such time as neither he nor any person on his behalf shall have any
further rights to benefits under the Plan.

      Any Participant who shall terminate employment without vested rights to a
benefit under the Plan shall be considered, upon his Termination of Employment,
to have received the full value of his interest in the Plan as of the date of
his Termination

                                      -22-
<PAGE>
of Employment and he shall have no further rights under the Plan (subject to the
provisions of the Plan concerning reemployment).

      A Participant who receives (or is considered to receive) the full value of
his interest in the Plan upon his Termination of Employment, shall thereupon
cease to be a Participant.

      2.7 Reemployment after Military Service. Effective December 12, 1994,
notwithstanding any provision of the Plan to the contrary, benefits and service
credit with respect to qualified military service shall be provided in
accordance with Code Section 414(u).

                                      -23-
<PAGE>
                                   ARTICLE III
                                  Contributions

      It is the intention of the Participating Employers to continue the Plan
and from time to time to make those contributions thereunder which are
considered actuarially necessary (based on the funding policy adopted in
accordance with ERISA) to provide benefits under the Plan. The Company, however,
reserves the right to reduce, suspend or discontinue the contributions of
Participating Employers under the Plan for any reason at any time.

      Any forfeiture occurring under the Plan shall be used as promptly as
possible to reduce Participating Employer contributions under the Plan and in no
event shall such forfeitures increase the benefit that any person would
otherwise receive under the Plan.

      No Participant shall be required or permitted to make any contributions
under the Plan.

      Notwithstanding the foregoing or anything elsewhere in the Plan to the
contrary, to the extent permitted by applicable government regulations, upon the
Company's request, (a) a contribution made under the Plan by a Participating
Employer which was made by a mistake of fact shall be returned to the
Participating Employer within one year after the payment of the contribution,
(b) a contribution made under the Plan by a Participating Employer which was
conditioned upon the initial qualification of the Plan under Code Section 401(a)
shall be returned to the Participating Employer within one year after the date
on which the initial qualification of the Plan is denied by the Internal Revenue
Service, and (c) a contribution or any part of a contribution made under the
Plan by a Participating Employer as to which a deduction under Code Section 404
is disallowed shall be returned to the Participating Employer within one year
after such disallowance (to the extent disallowed), it being hereby provided
that any contribution made under the Plan by a Participating Employer is
specifically conditioned upon the current deductibility of the contribution
under Code Section 404, and no contribution shall be made under the Plan by a

                                      -24-
<PAGE>
Participating Employer that is not currently deductible under such Code Section
404. Any contribution to be returned to a Participating Employer in accordance
with (a) or (c) above shall be adjusted before return to the Participating
Employer to reflect investment losses, but not investment gains.

                                      -25-
<PAGE>
                                   ARTICLE IV
                                Retirement Dates

      4.1 Normal Retirement Date. The Normal Retirement Date of a Participant
shall be the first day of the month coincident or next following the later of
(a) the Participant's 65th birthday or (b) the earlier of (1) the date the
Participant completes 5 Years of Service or (2) the 5th anniversary of the date
such Plan participation commenced. A Participant's rights to benefits under the
Plan shall become fully vested and nonforfeitable upon attainment of the later
of age 65 or the earlier of the dates specified under clause (b) above.

      4.2 Early Retirement Date. The Early Retirement Date of a Participant
shall be the first day of the month coincident with or next following the first
date he has both attained age 55 and completed 15 Years of Service.

      Subject to Section 2.5 of the Plan, a Participant's Termination of
Employment after his Early or Normal Retirement Date shall be considered a
retirement from employment for all purposes of the Plan.

      4.3 Deferred Retirement Date. If a Participant continues as an Employee
after his Normal Retirement Date, his Deferred Retirement Date shall be the
first day of the month coincident with or next following the date of his actual
retirement.

                                      -26-
<PAGE>
                                    ARTICLE V
                                    Benefits

      5.1 Normal Retirement Benefit. Subject to the provisions of Section 5.6 of
the Plan, the Accrued Benefit of a Participant who is eligible for Normal
Retirement benefits shall be an annual benefit, payable monthly, which is the
Actuarial Equivalent of a Single Life Annuity commencing at his Normal
Retirement Date equal to one-twelfth of:

      (a)   1.1% of his Average Annual Salary multiplied by his number of years
            of Credited Service not in excess of 35 years; plus

      (b)   0.5% of his Average Annual Salary in excess of Covered Compensation
            multiplied by his number of years of Credited Service not in excess
            of 35; plus

      (c)   0.5% of his Average Annual Salary multiplied by his number of years
            of Credited Service in excess of 35

      provided, however, that a Participant's Accrued Benefit shall never be
      less than his Frozen Retirement Benefit.

      5.2 Early Retirement Benefit. A Participant who retires on or after his
Early Retirement Date (and prior to his Normal Retirement Date) shall be
entitled to an Early Retirement benefit, commencing on his Normal Retirement
Date if he is then living. Such Early Retirement benefit shall be an annual
amount equal to:

      (a)   the Accrued Benefit to which the Participant would have been
            entitled under Section 5.1 of the Plan if he had continued
            employment with a Participating Employer, and continued to be
            credited with years of Credited Service until his Normal Retirement
            Date (except that the Participant's Average Annual Salary shall be
            determined as of his actual date of retirement), multiplied by

                                      -27-
<PAGE>
      (b)   a fraction whose numerator is the Participant's actual years of
            Credited Service at retirement and whose denominator is the number
            of years of Credited Service he would have had if he had continued
            to be credited with years of Credited Service until his Normal
            Retirement Date. Notwithstanding the foregoing, a Participant who
            retires on or after his Early Retirement Date (and prior to his
            Normal Retirement Date) may elect an Early Retirement benefit
            commencing (if he is then living) as of the first day of any month
            following his retirement and preceding his Normal Retirement Date.
            Any such election shall be by prior written notice filed with the
            Plan Administrator (in a form approved by it) not more than 90 days
            prior to the day on which such Early Retirement benefit is to
            commence. Any such Early Retirement benefit shall equal the benefit
            that would otherwise be payable commencing as of his Normal
            Retirement Date, reduced by 1/180th for each of the first sixty
            months and by 1/360th for each of the next sixty months by which his
            Annuity Starting Date precedes his Normal Retirement Date.

      5.3 Deferred Retirement Benefit. The Deferred Retirement benefit payable
to a Participant who retires on a Deferred Retirement Date shall equal a benefit
determined in the same manner as a Normal Retirement benefit (determined in
accordance with Section 5.1 of the Plan) but based on his Credited Service and
Average Annual Salary to his Deferred Retirement Date.

      Notwithstanding the foregoing, the Deferred Retirement benefit payable to
a Participant whose benefit commences pursuant to Section 6.1 of the Plan prior
to his actual retirement date, on account of (a) reaching his required Beginning
Date or (b) continued employment after his Normal Retirement Date that is not
substantial (as defined in Section 9.3 of the Plan), shall be a benefit
calculated in the same manner as a Normal Retirement benefit under Section 6.1
of the Plan which shall initially be based on his years of Credited Service and
Average Annual Salary as of his Annuity Starting Date and shall be recalculated
prospectively, as of each January 1 thereafter, to reflect his current total
Credited Service and Average Annual Salary.

                                      -28-
<PAGE>
      5.4 Retirement Benefit in Event of Disability. If a Participant terminates
his employment by reason of a total and permanent disability on account of which
he becomes entitled to both benefits under a long-term disability plan of a
Participating Employer ("LTD Benefits") and disability benefits under the Social
Security Act, he shall be eligible for a benefit commencing as of his Normal
Retirement Date (or, if later, the date he ceases to be entitled to LTD Benefits
but not later than the earliest date permitted under Code Section 401(a)(9)) in
an amount that would have been payable as a Normal Retirement benefit (or
Deferred Retirement benefit, as the case may be), had he continued to be
employed by a Participating Employer as an Eligible Employee at an Annual Salary
equal to his Annual Salary on the date his disability absence is determined by
the Plan Administrator to have commenced and continued to accrue Normal
Retirement benefits during the period he was receiving LTD Benefits; provided,
however, that (a) no Credited Service shall be given for benefit accrual
purposes for any period of disability during which he was not entitled to
receive benefits under the disability provisions of the Social Security Act and
(b) if applicable, any such disability retirement benefit shall be computed on
the assumption that no changes in the applicable provisions of the Social
Security Act occurred after the date his disability is determined to have begun.

      The benefit provided hereunder shall be in lieu of any benefit to which
the Participant would otherwise be entitled under this Article V or Article
VIII, except as provided below.

      A Participant receiving LTD Benefits shall be treated as though he were
still employed by a Participating Employer as a full-time Employee for purposes
of (a) the spouse's annuity coverage provided under Section 7.1 of the Plan
(including determination of such Participant's vested right under Article VIII),
(b) the notice provisions of Section 6.1 of the Plan, (c) the service
requirement for early retirement and (d) Plan provisions relating to
commencement of benefits.

      Notwithstanding the foregoing, if any Participant ceases to be entitled to
LTD Benefits because he has recovered from his disability and he does not return
to

                                      -29-
<PAGE>
employment within six months from the date he ceases to be entitled to LTD
Benefits, his entitlement to a benefit shall then be determined under Sections
5.1, 5.2, 5.3 or Article VIII of the Plan, whichever is applicable. Any such
benefit shall be computed as though he had terminated employment on the date he
ceased to be entitled to LTD Benefits and in accordance with the applicable
provisions of the Social Security Act on the date the Participant's disability
began.

      A Participant receiving LTD Benefits who has satisfied the requirements
for an Early or Normal Retirement benefit under the Plan may elect to retire
under the Plan, as of the first day of any month, by prior notice in writing to
the Plan Administrator. In such event, the Participant shall not be entitled to
any further benefits under this Section 5.4 of the Plan, but shall be entitled
to a benefit under Sections 5.1, 5.2, or 5.3 of the Plan, whichever applies. The
amount of such benefit shall equal the amount that would have been payable under
the foregoing provisions of this Section 5.4 of the Plan if he had recovered on
the date of such retirement. In the event that a Participant shall begin
receiving benefits under this Section 5.4 of the Plan while he is still
receiving LTD Benefits, his LTD Benefits shall be reduced, to the extent
provided under the program paying such LTD Benefits, to reflect any benefit
(other than the portion of such benefit attributable to his employee
contributions, if any) payable hereunder.

      If any Participant ceases to be disabled and returns to employment, his
accumulated Credited Service shall continue to his credit (including any
Credited Service he accrued under the foregoing provisions of this Section 5.4
of the Plan during his period of total and permanent disability).

      5.5 Minimum Benefit. A Participant's Accrued Benefit on account of
retirement under this Article V shall in no event be less than the Accrued
Benefit to which he would have been entitled if he had retired on an earlier
date (adjusted to reflect any changes in his Covered Compensation occurring
after any such date).

      5.6 Deduction for Other Pension. If any Participant entitled to benefits
under this Plan is or shall become, or upon application would become, entitled
to

                                      -30-
<PAGE>
benefits under the Commonwealth Pension Plan or the Reliance Pension Plan, by
reason of employment or service credited before the most recent date as of which
the Participant initially or again became covered by the Plan, and which
employment or service is taken into consideration in determining the amount of
any payment pursuant to this Plan, then the amount determined under the
provisions of the Plan and otherwise payable to such Participant for any period
shall be reduced by the amount of the benefits under the Commonwealth Pension
Plan or the Reliance Pension Plan, as applicable, paid or payable to him or that
would upon application become payable to him for the corresponding period;
provided, however, that such deduction shall not exceed the lesser of (a) the
amount, to the extent reasonably determinable, of the benefit payable by the
Commonwealth Pension Plan or the Reliance Pension Plan, as applicable,
attributable to employment with the Company during a period in which the
Participant has been credited with years of Credited Service for the purpose of
calculating the amount of any benefit under the Plan, or (b) the amount, to the
extent reasonably determinable, of the portion of any payment under this Plan
attributable to employment or service upon which the benefit payable by the
Commonwealth Pension Plan or the Reliance Pension Plan, as applicable, is based,
in whole or in part.

                                      -31-
<PAGE>
                                   ARTICLE VI
                               Payment of Benefits

      6.1 Standard. Benefits under the Plan shall be payable monthly. A Normal
Retirement benefit shall be payable commencing as of a Participant's Normal
Retirement Date. An Early Retirement Benefit shall be payable commencing as of
the date applicable under Section 5.2 of the Plan. A benefit payable under
Section 5.4 of the Plan in the event of disability shall be payable as provided
in such Section 5.4 of the Plan. A benefit under Article VIII of the Plan shall
be payable as provided in such Article VIII of the Plan. Benefits payable in the
standard form, a Single Life Annuity, shall terminate with the monthly payment
for the month in which the Participant's death occurs.

      In the case of a Participant who continues as an Employee after his Normal
Retirement Date, payment of his benefit shall commence as of (a) his Deferred
Retirement Date or (b) if earlier, his Required Beginning Date.

      Notwithstanding the foregoing, if a Participant has reached his Normal
Retirement Date and his employment as an Eligible Employee is not substantial
(as described in Section 9.3 of the Plan), his benefit shall commence as of the
first day of the month (on or after his Normal Retirement Date) in which his
employment is not substantial; provided, however, that if such benefit is being
paid solely by reason of the Participant's employment not being substantial,
such benefit shall be paid only for the months in which his employment is not
substantial. If a Participant commences benefits while employed after his Normal
Retirement Date because his employment is not substantial and he later resumes
substantial employment before reaching his Required Beginning Date, his benefit
payments shall be suspended and the provisions of Section 9.4 of the Plan shall
apply (as though he had been reemployed).

      Each Participant who continues employment with a Participating Employer
after his Normal Retirement Date shall receive a notice containing the
information described in Section 9.3 of the Plan. Such notice shall be furnished
to the Participant during the calendar month in which his Normal Retirement Date
occurs.

                                      -32-
<PAGE>
      Notwithstanding anything elsewhere in the Plan to the contrary, if a
Participant's Normal Retirement Date is after the end of the year in which he
attains age 70-1/2 and he acquires a vested right to a pension before his Normal
Retirement Date, benefit payments to him shall commence by the latest date
permissible under Code Section 401(a)(9).

      6.2 Minimum Distribution Requirements. Unless a Participant elects
otherwise, his Annuity Starting Date shall be no later than the 60th day after
the close of the Plan Year in which the Participant (a) attains his Normal
Retirement Date, (b) incurs a Termination of Employment, or (c) reaches the
tenth (10th) anniversary of his date on which he first completed an Hour of
Service, whichever occurs last.

            Notwithstanding anything in the Plan to the contrary, the form and
the timing of all distributions under the Plan shall be in accordance with
regulations issued by the Department of the Treasury under Code Section
401(a)(9), including the incidental death benefit requirements of Code Section
401(a)(9)(G). Notwithstanding anything in the Plan to the contrary, with respect
to distributions under the Plan made on or after January 1, 2001, the Plan will
apply the minimum distribution requirements of Section 401(a)(9) of the Code in
accordance with the regulations under Section 401(a)(9) of the Code that were
proposed on January 17, 2001 (the 2001 Proposed Regulations). Minimum
distributions under the Plan shall continue to be made in accordance with the
2001 Proposed Regulations until the calendar year beginning before the effective
date of the final regulations under Section 401(a)(9) of the Code or such other
date as may be published by the Internal Revenue Service.

      6.3 Qualified Joint and Survivor Annuity. Notwithstanding anything
elsewhere in the Plan to the contrary, any Participant who is not married on his
Annuity Starting Date shall receive payment of his of benefit in the form of a
Single Life Annuity and any Participant who is married on his Annuity Starting
Date shall automatically be deemed to have elected to receive an Actuarial
Equivalent reduced benefit with 50% of the Participant's reduced benefit to be
paid to his Spouse after his death (the "Qualified Joint and Survivor Annuity"),
effective as of his Annuity Starting Date, unless such Participant shall have
filed a written election with the Plan

                                      -33-
<PAGE>
Administrator, within 90 days prior to such Annuity Starting Date, effectively
waiving the Qualified Joint and Survivor Annuity and effectively electing the
Single Life Annuity or the Joint and Survivor Annuity Option. Each Participant
shall file a written statement with the Plan Administrator indicating whether he
is married, and shall notify the Plan Administrator of any subsequent change in
his marital status occurring on or before his Annuity Starting Date.

      Any waiver of the Qualified Joint and Survivor Annuity and election of the
Single Life Annuity filed by a Participant shall be effective only if the
consent of the Participant's Spouse to such waiver (and election of the Single
Life Annuity) is indicated thereon in writing and such consent explicitly
acknowledges the effect of the waiver and is notarized, unless no such consent
is necessary because (a) such Spouse cannot be located, (b) the Participant and
such Spouse are legally separated or the Participant has been abandoned by such
Spouse (within the meaning of local law) and has a court order to such effect or
(c) such other circumstance exists as a result of which such consent is not
required under applicable Treasury Regulations. Any consent by a Participant's
Spouse to a waiver of the Qualified Joint and Survivor Annuity shall be
irrevocable. If any payment is made under the Plan in reasonable reliance on (a)
a written statement by the Participant that he is unmarried, (b) a Spousal
consent that on its face conforms to the requirements set forth above or (c)
evidence establishing to the Plan Administrator's satisfaction that a
Participant's Spouse cannot be located (or that Spousal consent is unnecessary
because of the existence of the other circumstances described above), the Plan's
liability for such payment shall be satisfied to the extent of such payment (and
the Plan shall have no liability to any Spouse to such extent).

      Any subsequent change (by a married Participant who has previously filed a
waiver) in his form of benefit (other than a reinstatement of the Qualified
Joint and Survivor Annuity or an election of the Joint and Survivor Annuity
Option) shall not be effective unless a new waiver of the Qualified Joint and
Survivor Annuity (containing the notarized consent of the Participant's Spouse
as described above) is filed with the Plan Administrator. If the Spouse dies on
or after the Participant's Annuity Starting

                                      -34-
<PAGE>
Date, the Participant shall continue to receive only the reduced benefit payable
under the Qualified Joint and Survivor Annuity, as though the Spouse had not
died.

      The Plan Administrator shall prepare a notice which shall describe in
general terms (a) (in the case of a married Participant), the Qualified Joint
and Survivor Annuity or (in the case of a single Participant), the Single Life
Annuity, (b) the Participant's right to waive the Qualified Joint and Survivor
Annuity or the Single Life Annuity, (whichever is applicable) and to revoke any
such waiver, (c) in the case of a married Participant, the rights of the
Participant's Spouse with respect to such Annuity, (d) the general financial
effect of waiving the Qualified Joint and Survivor Annuity or Single Life
Annuity (whichever is applicable) and of revoking any such waiver, and (e) the
other optional forms of benefit available. Such notice shall also describe the
Participant's right to request further financial information about the effect of
any such waiver, as described below.

      Such notice shall be furnished by mail or personal delivery to each
Participant no more than 90 days and no less than 30 days prior to the
Participant's Annuity Starting Date or by any other means the Plan Administrator
shall select that conforms to the requirements of ERISA. If a Participant shall
so request in writing at least 90 days prior to his Annuity Starting Date or
within 30 days after receiving the notice described above, the Plan
Administrator shall furnish to the Participant (by mail or personal delivery),
within 30 days after the Participant's request, the additional information
required by applicable Treasury Regulations; provided, however, that the Plan
Administrator need not comply with more than one such request.

      The Annuity Starting Date may be less than 30 days after receipt of the
written explanation described above, provided that:

      (a)   the Plan Administrator clearly informs the Participant that the
            Participant has a right to a period of 30 days after receiving the
            notice to consider whether to waive the Qualified Joint and Survivor
            Annuity and elect, with his Spouse's consent, a form of distribution
            other the Qualified Joint and Survivor Annuity.

                                      -35-
<PAGE>
      (b)   the Participant is permitted to revoke an affirmative distribution
            election at least until the Annuity Starting Date, or, if later, at
            any time prior to the expiration of the 7-day period that begins the
            day after the written explanation of the Qualified Joint and
            Survivor Annuity is provided to the Participant, and

      (c)   the Annuity Starting Date is after the date that the explanation of
            the Qualified Joint and Survivor Annuity is provided to the
            Participant.

      (d)   Notwithstanding the above, if the Plan Administrator provides the
            written notice described above after the Annuity Starting Date, the
            Participant (with applicable Spousal consent) may elect to waive any
            requirement that the written notice be provided at least 30 days
            prior to the Annuity Starting Date (or to waive the 30-day
            requirement hereunder) if the distribution commences no more than 7
            days after such notice is provided.

      Any election made by a Participant hereunder waiving the Qualified Joint
and Survivor Annuity or Single Life Annuity (whichever is applicable) may itself
be revoked in writing not later than his Annuity Starting Date, effective as of
the date of such revocation. If a waiver is thus revoked, another waiver may be
made in accordance with the foregoing provisions of this Section 6.3 of the
Plan.

      The Plan Administrator shall interpret the provisions of this Section 6.3
and Section 6.4 of the Plan in such manner, and shall take such administrative
actions hereunder, as shall be necessary to comply with applicable provisions of
ERISA.

      The payment of benefits to a Participant or any other person shall not
commence until such Participant or other person shall have furnished the Plan
Administrator with such information as it may reasonably require to provide
benefits payable in accordance with the terms of the Plan, including such
information as it may require to administer the provisions of the Plan relating
to the Qualified Joint and

                                      -36-
<PAGE>
Survivor Annuity and Surviving Spouse's annuity benefits payable under Sections
7.1 and 7.2 of the Plan.

      6.4 Joint and Survivor Annuity Option. In lieu of a benefit payable in
accordance with Section 6.3 of the Plan, a married Participant may, within 90
days prior to his Annuity Starting Date, elect to receive a reduced benefit
payable monthly during his lifetime, with 75% or 100% (as the Participant
specifies) of such reduced benefit to be paid after his death to his Spouse. The
reduced benefits payable to the Participant and his Spouse shall be the
Actuarial Equivalent of the Single Life Annuity for the Participant under
Section 6.1 of the Plan. A benefit payable under this Section 6.4 of the Plan
shall become effective on the Participant's Annuity Starting Date.

      Subject to Section 7.4 of the Plan, if a Participant dies before his
Annuity Starting Date, his election of a Joint and Survivor Annuity Option shall
be void. If the Participant's Spouse dies before the Participant's Annuity
Starting Date, his election of the Joint and Survivor Annuity Option shall be
void. All payments under the Joint and Survivor Annuity Option shall cease with
the payment for the month in which the Participant or his Spouse dies, whichever
is later.

      6.5 Payment of Small Benefits. Notwithstanding any provision in the Plan
to the contrary, the present value of the vested Accrued Benefit payable to the
Participant commencing on (a) the earliest date following his Termination of
Employment he can receive benefits under the Plan or (b) his Normal Retirement
Date, in the case of a Participant whose employment terminates prior to his
Normal Retirement Date, if the use of such date produces a greater present
value, shall be paid in a lump sum (in lieu of all annuity or other Plan
benefits) as soon as practicable following the Participant's Termination of
Employment (other than by death), if the Actuarial Equivalent lump sum value of
the Participant's Accrued Benefit is $5,000 ($3,500 prior to January 1, 2002 )
or less. Any Participant who shall terminate employment (other than by death)
without vested rights to a benefit under the Plan shall be considered, upon his
Termination of Employment, to have received the full value of his interest in
the Plan

                                      -37-
<PAGE>
and he shall have no further rights under the Plan (subject to the provisions of
the Plan concerning reemployment).

      6.6 General Rules and Restrictions. Any election of an optional form of
payment shall not be effective unless such optional form complies with the
Proposed Regulations under Code Section 401(a)(9) (including the minimum
distribution incidental benefit requirements of Section 1.401(a)(9)-2 of such
Proposed Regulations) or any successor regulations.

6.7 Direct Rollover of Benefits from Plan.

      (a)   This Section 6.7 of the Plan shall apply to distributions made from
            the Plan on or after January 1, 1993. Notwithstanding any provision
            of the Plan to the contrary that would otherwise limit a
            Distributee's election under this Section, a Distributee may elect,
            at the time and in the manner prescribed by the Plan Administrator,
            to have any portion of an Eligible Rollover Distribution paid
            directly to an Eligible Retirement Plan specified by the Distributee
            in a direct rollover.

      (b)   For the purposes of this Section 6.6 of the Plan, the following
            definitions will apply:

                  (1)   "Eligible Rollover Distribution" shall mean any
                        distribution of all or any portion of the balance to the
                        credit of the Distributee, except that an Eligible
                        Rollover Distribution shall not include:

                        (i)   any distribution that is one of a series of
                              substantially equal periodic payments (not less
                              frequently than annually) made for life (or life
                              expectancy) of the Distributee or the joint lives
                              (or joint life expectancies) of the Distributee
                              and the

                                      -38-
<PAGE>
                              Distributee's designated Beneficiary, or for a
                              specified period of ten (10) years or more; and

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

                  (2)   "Eligible Retirement Plan" shall mean an individual
                        retirement account described in Code Section 408(a), an
                        individual retirement annuity described in Code Section
                        403(a), or a qualified trust described in Code Section
                        401(a), that accepts the Distributee's Eligible Rollover
                        Distribution. However, in the case of an Eligible
                        Rollover Distribution to the surviving Spouse, an
                        Eligible Retirement Plan is an individual retirement
                        account or individual retirement annuity.

                  (3)   "Distributee" shall mean an Employee or former Employee.
                        It shall also include the Employee's or former
                        Employee's surviving spouse and the Employee's or former
                        Employee's spouse or former Spouse who is the alternate
                        payee under a qualified domestic relations order, as
                        defined in Code Section 414(p), as it regards to the
                        interest of the spouse or former spouse.

                  (4)   "Direct Rollover" shall mean a payment by the Plan to
                        the Eligible Retirement Plan specified by the
                        Distributee.

                                      -39-
<PAGE>
                                   ARTICLE VII
                                 Death Benefits

      7.1 Death While Employed. A benefit shall be payable hereunder to a
Participant's Surviving Spouse in the event of the Participant's death while
employed by a Participating Employer on or after the date he first acquires a
vested right to a benefit under the Plan (except to the extent that (a) a prior
benefit election (including a deemed election) remains in effect in accordance
with the provisions of Section 9.4 of the Plan or (b) the Participant has begun
receiving his benefit while employed after his Normal Retirement Date).

      If the Participant's death occurs on or after the earliest date he could
retire under the Plan, the annuity payable hereunder to the Participant's
Surviving Spouse shall be a life annuity in an amount equal to 50% of the amount
that would have been payable to the Participant had he retired and immediately
commenced receiving a reduced benefit under the Plan on the day before his
death, in the form of a Qualified Joint and Survivor Annuity. Such annuity shall
commence as of the first day of the earliest month that the Participant could
have commenced receiving benefits and shall cease with the payment for the month
in which the Surviving Spouse dies.

      If the Participant's death occurs before the earliest date he could retire
under the Plan, the annuity payable hereunder to the Participant's Surviving
Spouse shall be a life annuity in the amount that would be payable to the
Surviving Spouse if the Participant had terminated employment on the day of his
death (but had not then died) and had died immediately after beginning to
receive reduced benefit payments on the earliest date he could have commenced
receiving reduced benefits under the Plan, with the Qualified Joint and Survivor
Annuity in effect. Such annuity shall commence as of the first day of the
earliest month that the Participant could have commenced receiving benefits and
shall cease with the payment for the month in which the Surviving Spouse dies.

      7.2 Death After Vested Termination of Employment. A benefit shall be
payable hereunder to a Participant's Surviving Spouse in the event of the
Participant's

                                      -40-
<PAGE>
death after he has retired or otherwise terminated employment but before his
Annuity Starting Date, if at the Termination of Employment, he had acquired a
vested right to a benefit under the Plan.

      If the Participant's death occurs on or after the earliest date as of
which he could have commenced to receive benefits, any annuity payable hereunder
to his Surviving Spouse shall commence as of the first day of the month
coincident with or next following the Participant's death and shall cease with
the payment for the month in which the Surviving Spouse dies. The amount of the
annuity shall be the amount that would have been payable to the Surviving Spouse
if the Participant had commenced receiving a reduced immediate benefit under the
Plan on the day before his death, with the Qualified Joint and Survivor Annuity
in effect.

      If the Participant's death occurs before the earliest date as of which he
could have commenced to receive benefits, any annuity payable hereunder to his
Surviving Spouse shall commence as of the first day of the earliest month that
the Participant could have commenced receiving benefits under the Plan and shall
cease with the payment for the month in which the Surviving Spouse dies. The
amount of the annuity shall be the amount that would have been payable to the
Surviving Spouse if the Participant had survived to the earliest date as of
which payments could have commenced and had died immediately after beginning to
receive reduced benefits on such date, with the Qualified Joint and Survivor
Annuity in effect.

      7.3 Commencement of Surviving Spouse's Annuity. Notwithstanding anything
elsewhere in this Article VII of the Plan to the contrary, any Surviving
Spouse's annuity otherwise payable under Sections 7.1 or 7.2 of the Plan
commencing as of a date before a Participant would have reached his Normal
Retirement Date, shall instead commence as of the date the Participant would
have reached his Normal Retirement Date, unless the Surviving Spouse elects in
writing, within 90 days after the Participant's death, to have the annuity
commence as of the earlier date otherwise applicable (or elects to have the
annuity commence as of the first day of any subsequent month prior to the date
the Participant would have reached his Normal Retirement Date, by prior written
notice filed with the Plan Administrator). The

                                      -41-
<PAGE>
amount of any such Surviving Spouse's annuity commencing on the date the
Participant would have reached his Normal Retirement Date shall be determined as
provided above, but without taking into account any reduction for early
commencement of payments, the amount of such Surviving Spouse's annuity
commencing on an earlier date shall be similarly determined but shall take into
account any applicable reduction for early commencement of payments.

      7.4 Special Rule Concerning Joint and Survivor Annuity. If (a) a
Participant had elected to commence benefits on a specific date by written
notice to the Plan Administrator in accordance with the applicable provisions of
the Plan or a Participant's benefits are to commence on or after his Normal
Retirement Date or Required Beginning date in the absence of any such election
and (b) within 90 days prior to such Annuity Starting Date, the Participant had
elected a Joint and Survivor Annuity under Section 6.4 of the Plan, any
Surviving Spouse's annuity under Sections 7.1 or 7.2 of the Plan in respect of
the Participant's death prior to such Annuity Starting Date shall be based on
the amount payable under such Joint and Survivor Annuity; provided, however,
that in the case of a Participant who dies while employed on or after the
earliest date he could retire under the Plan, the annuity payable hereunder to
his Surviving Spouse shall not be less than the amount determined pursuant to
Section 7.1 of the Plan.

      7.5 Lump Sum Payment of Surviving Spouse's Annuity. Notwithstanding
anything elsewhere in the Plan to the contrary, the present value of the benefit
payable to any Surviving Spouse under this Article VII of the Plan commencing on
(a) the earliest date following the Participant's death such Surviving Spouse
can receive benefits under the Plan or (b) the Participant's Normal Retirement
Date, in the case of a Participant whose death occurs prior to his Normal
Retirement Date, if the use of such date produces a greater present value, shall
be paid in a lump sum (in lieu of all annuity or other Plan benefits) as soon as
practicable following the Participant's death, if 50% of the Actuarial
Equivalent lump sum value amount of the Participant's Accrued Benefit as of his
date of death (commencing at his Normal Retirement Date under the standard form)
is $5,000 ($3,500 prior to January 1, 2002) or less.

                                      -42-
<PAGE>
                                  ARTICLE VIII
                            Termination of Employment

      8.1 Termination of Employment After 5 or More Years of Service. Subject to
the provisions of Article IX of the Plan in the event of reemployment, if a
Participant incurs a Termination of Employment prior to his Normal Retirement
Date after completing at least 5 Years of Service, he shall have a
nonforfeitable interest in his Accrued Benefit.

      8.2 Early Commencement of Termination Benefit. Notwithstanding the
foregoing, any such Participant entitled to a vested benefit under Section 8.1
of the Plan who has completed 15 Years of Service may elect to have payment of
such vested benefit commence as of the first day of any month on or after his
55th birthday that is prior to his Normal Retirement Date. Such election shall
be made by written notice to the Plan Administrator (in form approved by it) not
more than 90 days prior to such Participant's Annuity Starting Date, and such
benefit shall be equal to the benefit that would have been payable to the
Participant under Section 5.2 of the Plan, actuarially reduced to reflect the
early commencement of payments.

      8.3 Payment of Benefits. The provisions of Article VI of the Plan shall
apply to any benefits payable under this Article VIII of the Plan, as though the
Participant had retired.

                                      -43-
<PAGE>
                                   ARTICLE IX
                                  Reemployment

      9.1 Reemployment Without Intervening Break in Service. If after having
previously terminated employment with all Participating Employers and
Affiliates, a person shall resume his status as an Eligible Employee without an
intervening One-Year Break in Service, benefit payments being made to him (if
any) shall be suspended. He shall resume participation in the Plan immediately
as though such Termination of Employment had not occurred (if he was a
Participant at the time his employment terminated) and his credit for Hours of
Service, Credited Service and Years of Service before his Termination of
Employment shall be reinstated for all purposes of the Plan (including
calculation of his Average Annual Salary) as though such Termination of
Employment had not occurred; provided, however, that if he shall have received
any periodic or lump-sum payments in respect of his prior Termination of
Employment, the benefits otherwise payable to him upon his later Termination of
Employment shall be reduced by an amount that is the Actuarial Equivalent of the
payments made to him prior to his reemployment (except that the value of such
actuarial reduction shall not exceed the charge made for such benefit payments
originally and if such later termination occurs after his Normal Retirement
Date, the actuarial value of such reduction shall not exceed the actuarial
value, as of the Participant's Normal Retirement Date, of any benefit payments
made to him prior to such date).

      9.2 Reemployment After Intervening Break in Service. If after having
previously terminated employment, a person shall resume his status as an
Eligible Employee after at least a One-Year Break in Service, benefit payments
being made to him (if any) shall be suspended, and he shall resume his
participation in the Plan as of the date he satisfies the requirements for
eligibility in the Plan as set forth in Section 2.1 of the Plan (disregarding
for this purpose all service prior to his reemployment). As of the date he shall
satisfy the service requirement for participation, if he is then an Eligible
Employee, his credit with respect to periods of employment before his
Termination of Employment shall be reinstated and he shall be given credit for
the period since his reemployment as though such Termination of Employment had
not

                                      -44-
<PAGE>
occurred, except that the restriction set forth in the provision to Section 9.1
of the Plan shall apply; provided, however, that such credit shall not be
reinstated in the case of a person who is reemployed after at least five
consecutive One-Year Breaks in Service and who had no vested rights to benefits
hereunder at the time of his prior Termination of Employment. If there are
benefits remaining payable to any Eligible Employee on the date of his
reemployment and he again terminates employment prior to satisfying the
requirements hereof for a reinstatement of his credit for his previous
employment, the actuarial value of any such benefits remaining payable to him as
of the date of his reemployment shall be preserved to his credit (on a fully
vested basis) and shall be paid to him after termination of such reemployment in
accordance with the provisions of the Plan.

      9.3 Reemployment After Normal Retirement Date. Notwithstanding anything
contained herein, (a) if a Participant resumes his status as an Eligible
Employee after reaching his Required Beginning Date, his benefit payments shall
be continued, as provided in Section 6.1 of the Plan and (b) if at any time
after a Participant's resumption of service (and before clause (a) above becomes
applicable to him) his employment after Normal Retirement Date in any month is
not substantial, a benefit payment shall be made to him for such month in
accordance with Section 6.1 of the Plan. For this purpose a Participant's
employment will be considered substantial for any month only if he completes 40
or more Hours of Service in such month. If a Participant is receiving benefits
and in any subsequent month (prior to his Required Beginning Date) he again
completes at least 40 Hours of Service, no benefit payment shall be made to him
for such subsequent month.

      If any Participant shall resume his status as an Eligible Employee after
his Normal Retirement Date and benefit payments to him are suspended as provided
herein, the Plan Administrator shall furnish him with a notice containing (a) a
description of the specific reasons for the suspension of benefit payments, (b)
a general description of the Plan provisions relating to the suspension
(including the provisions of Sections 4.3, 5.3, 6.12 and 9.3 of the Plan), (c) a
copy of such provisions, (d) a statement to the effect that applicable
Department of Labor regulations may be found in section 2530.203-3 of the Code
of Federal Regulations and (e) a description of the

                                      -45-
<PAGE>
Plan's claims procedure. Such notice shall be furnished by personal delivery or
first class mail during the first calendar month in which benefit payments are
suspended.

      Benefit payments suspended under this Section shall resume (or commence,
in the case of a Participant who continues in service after his Normal
Retirement Date) no later than the earlier of (a) the first day of the third
calendar month following the month in which the Participant's substantial
employment ceases or, if later, the first day of the calendar month following
receipt by the Plan Administrator of the Participant's notice that his
substantial employment has ceased or (b) the Participant's Required Beginning
Date. The initial resumption payment shall include payment for the current month
and for any previous calendar months since the cessation of the Participant's
substantial employment.

      The resumed benefit payments shall be recalculated on the basis of Annual
Salary earned and years of Credited Service credited (if any) during such period
of reemployment and the provisions of the Plan as then in effect. The resumed
benefit payments shall be paid in the same form as the suspended benefit
payments. Resumed benefits shall be reduced by an amount equal to any benefits
which were paid to the Participant with respect to a calendar month in which the
Participant was engaged in substantial employment. However, the reduction in any
monthly benefit, other than the initial resumption payment, shall not exceed
twenty-five percent (25%) of such monthly benefit. Any remaining reduction shall
be applied to benefits payable in subsequent months

      9.4 Form of Benefit. The following rules shall apply with respect to a
Participant's form of benefit in the event of his reemployment.

      (a)   If a Participant is reemployed hereunder prior to his Normal
            Retirement Date, any election previously made by him under Article
            VI of the Plan with respect to the form of his benefits shall be
            canceled and shall be of no further effect.

      (b)   If a Participant is reemployed after his Normal Retirement Date and
            his most recent election as to the form of his benefits ("benefit
            election")

                                      -46-
<PAGE>
            became effective on or after his Normal Retirement Date, such
            benefit election shall continue in effect and shall apply to all
            benefits (including subsequent accruals), with death benefits, if
            any, to be paid in accordance with such form of payment.

      (c)   If any such Participant's most recent benefit election became
            effective prior to his Normal Retirement Date and his benefits are
            suspended upon reemployment, such prior election shall be canceled
            and he shall be permitted to make a new election (or have a deemed
            election apply with respect to his entire accrued benefit, effective
            as of his subsequent resumption of pension benefits (which election
            shall continue in effect for all periods thereafter and shall apply
            to all subsequent benefit accruals).

      (d)   If any such Participant's most recent benefit election became
            effective prior to his Normal Retirement Date but, in accordance
            with Section 9.3 of the Plan, his benefits are not suspended upon
            his reemployment, such prior election shall remain in effect as to
            his Accrued Benefit at the time of his reemployment, and he shall be
            permitted to make a new election (or have a deemed election apply)
            as of the date additional benefits become payable to him on account
            of accruals after his reemployment (which election shall continue in
            effect for all periods after such date and shall apply to all
            subsequent benefit accruals).

                                      -47-
<PAGE>
                                    ARTICLE X
                                     Funding

      10.1 Establishment of Trust. The Company has entered into a Trust
Agreement with the Trustee for the purpose of providing benefits under the Plan.
Such Agreement contains provisions with respect to powers and authority of the
Trustee and the authority of the Board from time to time to remove such Trustee
and to appoint a new Trustee in place of any then acting Trustee.

      Notwithstanding the foregoing, the Board may authorize an officer of the
Company to select a Trustee and enter into a Trust Agreement with the Trustee
containing such provisions as the officer deems appropriate.

      The Trust Agreement is deemed to form a part of the Plan and any and all
rights which may accrue to any person under the Plan are subject to all of the
terms and provisions of the Trust Agreement to the extent such terms and
provisions of the Trust Agreement do not conflict with the terms and provisions
of the Plan.

      Upon the transfer by a Participating Employer of any money to the Trustee,
all interest of a Participating Employer therein shall cease and terminate,
except as provided in Articles III or XV of the Plan. Legal title to the Trust
is vested absolutely in the Trustee, and (except as provided in Articles III or
XV of the Plan) no part of the corpus of the Trust or income therefrom may be
used for or diverted to purposes other than the exclusive benefit of the
Participants and their beneficiaries (or joint annuitants) under the Plan, or
for expenses of administering the Plan and Trust.

      10.2 Administration of the Trust. The Trustee shall have custody of the
assets of the Trust. At the direction of the Plan Administrator, the Trustee
shall make payments to or on account of Participants out of the Trust. Except as
provided below, the Trustee shall have sole discretionary responsibility for the
investment and management of the Trust Fund.

                                      -48-
<PAGE>
      In accordance with the terms of the Trust Agreement, the Trustee appointed
as Investment Trustee by the Board may appoint an Investment Manager for all or
a portion of the assets of the Trust. Each such person shall become an
Investment Manager for the Plan upon its acknowledgment in writing that it is a
fiduciary with respect to the Plan. Notwithstanding the foregoing provisions of
this Section 10.2 of the Plan, each Investment Manager so appointed shall have
exclusive responsibility for directing the investment and management of the
Trust assets, in conformity with the investment policy set by the Board, to
which its appointment applies, as determined from time to time by the Board, and
the Trustee shall not have any responsibility for the investment and management
of such assets. The Board may at any time remove any person serving as an
Investment Manager upon written notice to such person.

      Each Investment Manager shall exercise its fiduciary responsibilities with
respect to Plan assets allocated to it, including (without limitation) any
responsibility of diversification imposed by law, as if the assets allocated to
it constituted the entirety of the Plan assets; provided, however, that the
Board may direct that an Investment Manager invest only in a class or classes of
assets specified by the Board, in which case the Board shall have the fiduciary
responsibility for ensuring that the diversification requirements imposed by law
are not thereby violated.

      10.3 General. Subject to the provisions of applicable law, benefits under
the Plan shall be payable solely from the Trust Fund and only to the extent that
the allocable assets held in the Trust Fund shall suffice therefor.

      10.4 Changes in Funding Medium. Notwithstanding the foregoing provisions
of this Article X of the Plan, the Board may at any time or times change the
method and medium of funding benefits under the Plan and take procedures
appropriate to such ends, subject to the provisions of Article XV of the Plan
and of applicable law.

                                      -49-
<PAGE>
                                   ARTICLE XI
                           Administration of the Plan

      11.1 General. The Company shall be the Plan Administrator of the Plan for
purposes of ERISA.

      The Company shall be the named fiduciary responsible for the
administration of the Plan. The Company may, however, by or pursuant to a
resolution of the Board, delegate to any person or entity any of its powers or
duties under the Plan. To the extent of any such delegation, the delegate shall
become the named fiduciary responsible for administration of the Plan (if the
delegate is a fiduciary by reason of the delegation), and any references to
Company shall apply instead to the delegate. Any action by the Company assigning
any of its responsibilities to specific persons who are all directors, officers,
or employees thereof shall not constitute delegation of its responsibility but
rather shall be treated as the manner in which the Company had determined
internally to discharge such responsibility.

      The Company shall adopt such rules for administration of the Plan as it
considers desirable, provided they do not conflict with the terms of the Plan,
and may construe the Plan, make factual determinations, correct defects, supply
omissions and reconcile inconsistencies to the extent necessary to effectuate
the terms of the Plan and such action shall be conclusive. Records of
administration of the Plan shall be kept, and Eligible Employees and their
beneficiaries may examine records pertaining directly to themselves.

      The Company may contract for legal, actuarial, investment advisor,
medical, accounting, clerical and other services to carry out the Plan.

      The Company shall annually review and determine the funding policy of the
Plan, with the advice of such experts as the Company deems appropriate.

                                      -50-
<PAGE>
      All rules, decisions and designations by the Company under the Plan shall
be made in a nondiscriminatory manner, and persons similarly situated shall be
treated alike.

      Neither the Company, the Participating Employers, nor their directors,
officers or employees shall be liable for any loss due to an error or omission
in administration of the Plan unless the loss is due to the gross negligence or
willful misconduct of the party to exercise a fiduciary responsibility with the
care, skill, prudence, and diligence under the circumstances then prevailing
that a prudent man acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of a life character and with like
aims.

      11.2 Disputes.

      (a)   In the event that the Plan Administrator denies, in whole or in
            part, a claim for benefits by a Participant or his beneficiary, the
            Plan Administrator shall furnish notice of the denial to the
            claimant, setting forth:

            (1)   the specific reasons for the denial,

            (2)   specific reference to the pertinent Plan provisions on which
                  the denial is based,

            (3)   a description of any additional information necessary for the
                  claimant to perfect the claim and an explanation of why such
                  information is necessary, and

            (4)   appropriate information as to the steps to be taken if the
                  claimant wishes to submit his claim for review.

            Such notice shall be forwarded to the claimant within 90 days of the
            Plan Administrator's receipt of the claim; provided, however, that
            in special

                                      -51-
<PAGE>
            circumstances the Plan Administrator may extend the response period
            for up to an additional 90 days, in which event it shall notify the
            claimant in writing of the extension, and shall specify the reason
            or reasons for the extension.

      (b)   Within 60 days of receipt of a notice of claim denial, a claimant or
            his duly authorized representative may petition the Plan
            Administrator in writing for a full and fair review of the denial.
            The claimant or his duly authorized representative shall have the
            opportunity to review pertinent documents and to submit issues and
            comments in writing to the Plan Administrator. The Plan
            Administrator shall review the denial and shall communicate its
            decision and the reasons therefor to the claimant in writing within
            60 days of receipt of the petition; provided, however, that in
            special circumstances the Plan Administrator may extend the response
            period for up to an additional 60 days, in which event it shall
            notify the claimant in writing prior to the commencement of the
            extension.

      11.3 Plan Expenses. All expenses reasonably incurred in the administration
of the Plan shall be paid by the Trustee out of the Plan's assets (either
directly or through reimbursement of the Participating Employers for any such
expenses paid by the Participating Employers), except to the extent that the
Participating Employers shall otherwise provide for such payment.

                                      -52-
<PAGE>
                                   ARTICLE XII
                      Limitation on Assignment of Benefits

      12.1 Limitation on Assignment of Benefits. Except as specifically
permitted by applicable Treasury Regulations, no benefit payable at any time
under the Plan shall be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, attachment, garnishment or encumbrance of any
time, and any attempt to anticipate, alienate, sell, transfer, assign, pledge,
attach, garnish or encumber the same shall be void, nor shall any such benefit
be in any way liable for or subject to the debts, contracts, liabilities,
engagements or torts of any person entitled to such benefit.

      Notwithstanding the foregoing or anything elsewhere in the Plan to the
contrary, all benefits shall be paid under the Plan which are required to be
paid under the terms of any domestic relations order constituting a "Qualified
Domestic Relations Order" ("QDRO") under ERISA, in such manner and to such
person or persons as such QDRO shall specify.

      The Plan Administrator shall establish reasonable procedures for
determining the qualified status of any domestic relations order and for
administering distributions under any QDRO. No payments shall be made from the
Plan pursuant to a QDRO before the earliest date the Participant (a) is entitled
to begin receiving benefits under the Plan (other than the Plan's provisions
relating to the payment of benefits whose value does not exceed $5,000) or (b)
(in the case of a Participant who is still employed) would be entitled to thus
begin receiving such benefits immediately, if he were to retire.

                                      -53-
<PAGE>
                                  ARTICLE XIII
                                  Miscellaneous

      13.1 Limitation of Rights. No person shall have any vested right under the
Plan except as otherwise expressly provided in the Plan. Neither the Plan nor
any action of the Board or of the Plan Administrator, heretofore or hereafter
taken, shall be construed to give any person a right to be retained in the
employ of a Participating Employer, or to furnish any basis for a claim to any
benefit before or after retirement or Termination of Employment except as
provided in the Plan, or to interfere with the right of a Participating Employer
to discharge, suspend or otherwise treat any person without regard to the effect
which such action might have upon him under the Plan.

      13.2 Actions of Participating Employers. Any action by a Participating
Employer under the Plan may be by resolution of its Board of Directors or by
resolution of any person or persons authorized by such Board of Directors to
take such action.

      13.3 Inability to Locate Payee. If the Plan Administrator is unable, after
making reasonable efforts, to locate any person to whom an amount is payable
under the Plan, such person's rights under the Plan shall be forfeited. For this
purpose, the Plan Administrator will be deemed to have been unable, after making
reasonable efforts, to locate a payee if (a) a written notice has been sent to
such person's last known address, by first class or certified mail, notifying
him of his eligibility to receive a benefit under the Plan, and the payee has
not responded to such written notice within 90 days and (b) a notification has
been sent to the Pension Benefit Guaranty Corporation or the Social Security
Administration (under their program to identify payees under retirement plans)
and the payee has not responded within six months thereafter. The benefit of any
person whom the Plan Administrator is unable, after the foregoing or other
reasonable efforts, to locate shall in any event be forfeited no later than the
date by which distributions are required to have commenced under Code Section
401(a)(9). If any such person thereafter files a claim for the forfeited
benefits with the Plan Administrator, the benefit rights forfeited by such
person shall be reinstated and benefits shall be payable to the person in
accordance with the Plan's

                                      -54-
<PAGE>
provisions (including, in addition to future payments due, a lump-sum payment
(to be made as promptly as practicable) equal to the aggregate dollar amount of
the benefit payments missed because of the inability to locate the person).

      13.4 Exclusivity of Benefits. The Plan has been created for the exclusive
benefit of Participants and beneficiaries. Except as provided in Article III and
Section 15.2 of the Plan, no part of the assets of the Plan shall revert to a
Participating Employer nor be used other than for the exclusive benefit of
Participants and beneficiaries and payment of Plan expenses. No person shall
have any interest in or right to any part of the assets of the Plan, or any
rights in, to or under any Trust Agreement, except to the extent expressly
provided in the Plan.

      13.5 Distributions on Behalf of Incapacitated Persons. If the Plan
Administrator receives evidence satisfactory to it that (i) a person entitled to
receive any payment under the Plan is physically, mentally or otherwise
incompetent to receive such payment and to give a valid release therefor, and
(ii) another person or an institution is then maintaining or has custody of such
person and no guardian, committee or other representative of the estate of such
person has been duly appointed by a court of competent jurisdiction, the Plan
Administrator may direct that the payment or any portion thereof be made to such
other person or institution, and the release of such other person or institution
shall be a valid and complete discharge of the payment or the portion thereof so
made.

      13.6 Determination as to Payment of Benefits by the Plan Administrator.
Benefits under this Plan shall be paid only if the Plan Administrator decides in
his discretion that the claimant is entitled to them. Payments in accordance
with such determination shall constitute a complete discharge of the payment
thereof so made.

      13.7 Withholding Requirements. Any benefit payment made under the Plan
will be subject to any applicable income tax withholding requirements. For this
purpose, the Plan Administrator shall provide the Trustee with any information
that the Trustee needs to satisfy such withholding obligations and with any
other information that may be required by regulations promulgated under the
Code.

                                      -55-
<PAGE>
                                   ARTICLE XIV
                             Limitation on Benefits

      14.1 Maximum Limitations. In addition to any other limitations set forth
in this Plan, and notwithstanding any other provisions of the Plan, no benefit
shall be paid with respect to a Participant which exceeds the limitation under
the provisions of Code Section 415. Code Section 415 is hereby incorporated by
reference. For purposes of applying the limitations under Code Section 415,
"compensation" for any calendar year shall mean wages as defined in Code Section
3401(a) for the purposes of income tax withholding at the source but determined
without regard to any rules that limit the remuneration included in wages based
on the nature or location of the employment or the service performed. Effective
with respect to Plan Years beginning prior to January 1, 2000, to whatever
extent the Code Section 415(e) would restrict the combined benefits payable
under this Plan and any other plan and such other plan does not require the
reduction in benefits under such other plan to prevent the payment of benefits
in excess of those allowed, the benefits payable under this Plan shall be
reduced.

                                      -56-
<PAGE>
                                   ARTICLE XV
                      Amendment or Termination of the Plan

      15.1 Right to Amend or Terminate. Subject to applicable law and to the
further provisions of this Article XV of the Plan, the Company reserves the
right from time to time to amend the Plan by action of the Board, in any way
(whether or not the cost of the Plan to the Participating Employers be increased
thereby) and to suspend or terminate the Plan either (a) in its entirety or (b)
with respect to Eligible Employees at any location of the Participating
Employers; provided, however that no amendment to the Plan shall have the effect
of retroactively depriving Participants of benefits already accrued under the
Plan.

      No amendment to the Plan shall be effective if it authorizes or permits
any part of the Trust Fund (other than such part as is required to pay taxes and
administration expenses) to be used for or diverted to any purpose other than
for the exclusive benefit of the Participants or their beneficiaries or estates
or causes any reduction in the benefit of any Participant (except to the extent
permitted under Code Section 412(c)(8)); or causes or permits any portion of the
Trust Fund to revert to or become property of the Participating Employers.

      Except as permitted by the Treasury Regulations, no Plan amendments or
transactions having the effect of a Plan amendment (such as a merger, Plan
transfer or similar transaction) shall be effective to the extent it eliminates
or reduces any "Code Section 411(d)(6) protected benefit" the result of which is
a further restriction on such benefit unless such protected benefits are
preserved with respect to benefits accrued as of the later of the adoption date
or the effective date of the amendment. "Code Section 411(d)(6) protected
benefits" are benefits described in Code Section 411(d)(6) early retirement
benefits and retirement type subsidies and optional forms of benefit.

      If any future amendment to the Plan which alters the vesting provisions of
Section 8.1 of the Plan, then any active Participant, with at least three Years
of Service on the later of the adoption of such amendment or its effective date,
may elect to have his vested interest in his Accrued Benefit computed under the
Plan without regard to such

                                      -57-
<PAGE>
amendment. Such election must be made within 60 days from the latest of the date
on which (a) such amendment was adopted, (b) the amendment was effective or (c)
the Participant was issued written notice of such amendment by the Plan
Administrator.

      Notwithstanding the foregoing, a committee delegated by the Plan
Administrator, by a majority of its members, may adopt any Plan amendments that
(a) are designed to implement contractual commitments by the Company, (b)
reflect changes approved in substance by the Board, or (c) make changes not
involving material cost increases for purposes of legal compliance, clarity,
administrative convenience or otherwise. No further administrative action shall
be required for such amendment to be effective (except to the extent otherwise
required by resolution of the Board).

      Notwithstanding the foregoing, no amendment to the Plan which increases
the current liability of the Plan for the calendar year in which the amendment
is to be effective shall take effect until the Company provides security to the
Plan, if and to the extent required under Code Section 401(a)(29).

      Subject to the provisions of Article III of the Plan, at no time prior to
the satisfaction of all liabilities under the Plan to Participants, their
beneficiaries and joint annuitants shall the corpus or income of the Trust Fund
be used for, or diverted to, purposes other than the exclusive benefit of such
Participants, beneficiaries and joint annuitants and the payment of taxes and
administrative expenses of the Plan.

      Anything in this Article to the contrary notwithstanding, any amendment to
the Plan may be made which in the opinion of the Board is necessary or
appropriate (a) to qualify or maintain the Plan as a plan and trust meeting the
requirements of the applicable provisions of the Code and regulations thereunder
and corresponding provisions of subsequent laws and regulations or (b) to
conform to any requirements of ERISA.

                                      -58-
<PAGE>
      15.2 Complete Termination of the Plan. The Company shall have the power to
terminate the Plan, by resolution of the Board, subject to applicable law.
Notice of such termination shall be given to the Trustee.

      After termination of the Plan, (a) no further contributions shall be made
hereunder and (b) there shall be no further accrual of benefits (i.e., no
increase in Accrued Benefits by reason of additional Credited Service, a change
in a Participant's Average Annual Salary, an increase in the benefits
permissible under Code Section 415 or any other event). However, the Plan
Administrator shall continue to administer the Plan, and all provisions of the
Plan and Trust shall remain in force which are necessary in the opinion of the
Plan Administrator.

      Upon termination of the Plan in its entirety, the right of each
Participant to benefits accrued to the date of such termination (hereinafter
referred to as the "Termination Date") that would be vested under the provisions
of the Plan in the absence of such termination shall continue to be vested and
nonforfeitable; and the right of each such Participant to any other benefits
accrued to the Termination Date shall be fully vested and nonforfeitable to the
extent then funded under the priority rules described below. In any event, a
Participant (or anyone claiming benefits on his account) shall have recourse
only against the assets of the Plan for the payment of benefits thereunder,
subject to any applicable provisions of Title IV of ERISA.

      In the event of such termination, amounts held under the Plan shall be
allocated, subject to provision for expenses of administration and liquidation,
to provide benefits as follows, in the following order of priority, to the
extent of the sufficiency (actuarial determined) of such funds:

      (a)   To benefits payable to a Participant (or his beneficiary or joint
            annuitant) who (1) was in pay status as of the beginning of the
            three-year period ending on the Termination Date, based on the
            provisions of the Plan (as in effect during the five-year period
            ending on the Termination Date, under which such benefit would be
            the least or (2) would have been in

                                      -59-
<PAGE>
            pay status as of the beginning of such three-year period if the
            Participant had retired prior to the beginning of the three-year
            period and if his benefits had commenced (in the standard form of
            annuity under the Plan) as of the beginning of such period, based on
            the provisions of the Plan (as in effect during the five-year period
            ending on the Termination Date) under which such benefits would be
            the least. For purposes hereof, the lowest benefit in pay status
            during a three-year period shall be considered the benefit in pay
            status for such period.

      (b)   To all other benefits of a Participant (or his beneficiary or joint
            annuitant) under the Plan to the extent such benefits are guaranteed
            by the Pension Benefit Guaranty Corporation (in accordance with the
            priorities listed in Section 4044(a)(4) of ERISA).

      (c)   To all other nonforfeitable benefits under the Plan (excluding any
            benefits which become nonforfeitable due to termination of the
            Plan).

      (d)   To any other benefits remaining payable under the Plan.

      If the assets of the Plan as of the Termination Date exceed the amounts
required under priorities (a) through (d) above, such excess shall, after all
liabilities of the Plan with respect to the benefits payable to or on account of
all Participants have been satisfied, revert to the Participating Employers.

      If the assets of this Plan are insufficient to fully satisfy priority (b)
above, the following allocation rule shall apply:

      (a)   the available assets shall be applied to procure nonforfeitable
            benefits under the Plan as in effect at the beginning of the
            five-year period ending on the Termination Date; and

                                      -60-
<PAGE>
      (b)   if the available assets are sufficient to satisfy benefits payable
            under clause (a) above (without regard to this clause (b)) then the
            benefits described in clause (a) above shall be determined by the
            most recent Plan amendment effective during such five-year period
            under which the assets available for allocation are sufficient to
            satisfy in full the benefits described in clause (a) above and any
            assets remaining shall be allocated under clause (a) above on the
            basis of this Plan as amended by the next succeeding amendment
            effective during such period. If the assets held under the Plan
            shall be inadequate to provide in full for the allocations under any
            one of the above priorities other than priority (2), they shall be
            allocated among the Participants (or their beneficiaries or joint
            annuitants) entitled to receive amounts under that priority in
            proportion to the actuarial values of their respective accrued
            benefit.

      Upon termination of the Plan in its entirety, the amounts allocated to
Participants, joint annuitants and beneficiaries as provided above shall be used
to purchase annuity benefits for the persons entitled to retirement or
disability benefits in the order of priority provided above.

      15.3 Partial Termination of the Plan. If at any time the Plan is
terminated as to any group of Participants under such circumstances as to
constitute a partial termination of the Plan within the meaning of Code Section
411(d)(3), the rights of each such Participant as to whom the Plan is terminated
to benefits that have accrued to the date of such termination and that would be
vested under the provisions of the Plan in the absence of such termination shall
continue to be so vested and the right of each Participant (as to whom such
termination occurred) to any other benefits accrued to the date of such
termination shall be vested to the extent that assets would be allocable to such
benefits under the priority rules described in Section 15.2 of the Plan, had a
complete termination of the Plan occurred on the date of such partial
termination (but without regard to any additional contributions the
Participating Employers might have been required to make if a complete
termination had occurred). In any event, Participants as to whom such
termination occurred shall have recourse only against the assets of the Plan for
the payment of benefits thereunder, subject to

                                      -61-
<PAGE>
any applicable provisions of Title IV of ERISA. Subject to the foregoing, the
vested Accrued Benefits of such Participants shall be payable as though such
termination had not occurred.

      15.4 Mergers, Consolidations and Transfers. The Plan shall not be merged
or consolidated with, or transfer its assets or liabilities to, any other
employee retirement plan unless each Participant or his beneficiary or joint
annuitant, as the case may be, would receive a benefit, were such other plan to
terminate immediately after such merger, consolidation or transfer, at least
equal to the benefit he would have received if the Plan had terminated
immediately prior to such transaction (but without regard to any additional
contributions the Participating Employers might have been required to make if a
complete termination had occurred). Any spin-off of assets of the Plan shall
comply, to the extent required, with the provisions of Code Section 414(l)(2)
concerning allocation of excess assets.

      15.5 Withdrawal by a Participating Employer. A Participating Employer
other than the Company may withdraw from the Plan at any time, by action of its
Board of Directors, and the Board may take action to terminate the status of any
such Participating Employer as a Participating Employer. An Affiliate of the
Company shall automatically cease to be a Participating Employer if its status
as an Affiliate is terminated by sale or otherwise. In the event an entity
ceases to be a Participating Employer, the share of the Plan assets allocable to
liabilities for its employees shall be certified by the Plan Administrator and
set aside as a separate fund (with such share of Plan assets to be determined in
accordance with the order of priority set forth in Section 15.3 of the Plan) as
though the Plan had terminated with respect to such Participating Employer. Such
separate fund shall thereafter be applied and used in accordance with the
provisions of the Plan and any related documents in effect at the time of such
withdrawal (except that such Participating Employer shall become the "Company"
thereunder and such separate plan shall cover only employees of such
Participating Employer).

      Notwithstanding the foregoing provisions of this Section 15.5 of the Plan,
if Employees of a Participating Employer cease to be eligible to accrue benefits
under the

                                      -62-
<PAGE>
Plan by reason of this Section 15.5 of the Plan, the Board may elect to continue
to provide under the Plan the benefits due to such Employees (in lieu of
segregation of the assets allocable to them), in which case the Company shall
pay any costs necessary to provide for any amounts payable to or on account of
such Employees in respect of their previously Accrued Benefits and any such
Employees (a) shall be considered to have transferred to non-covered status or
(b) shall be treated as terminated Employees if no longer employed by a
Participating Employer or any Affiliate; provided, however, that an election
hereunder may be made by the Board only if such withdrawal occurs on account of
the cessation of the business of such Participating Employer, its liquidation,
or the sale of substantially all its stock or assets to an unrelated entity.

                                      -63-
<PAGE>
                                   ARTICLE XVI
                          Pre-Termination Restrictions

16.1 Limitation.

(a) The annual payments to an Employee described in Subsection (c) are
restricted to an amount equal to the payments that would be made on behalf of
the Employee under a single life annuity that is the Actuarial Equivalent of the
sum of the Employee's Accrued Benefit and the Employee's other benefits under
the Plan.

(b) The restrictions in Subsection (a) will not apply, however, if:

      (1) After payment to an Employee described in Subsection (c) of all
      benefits described in Subsection (d), the value of Plan assets equals or
      exceeds 110 percent of the value of current liabilities, as defined in
      Code Section 412(l)(7); or

      (2) The value of the benefits described in Subsection (d) for an Employee
      described in Subsection (c) is less than 1 percent of the value of the
      Plan's current liabilities.

(c) The Employees whose benefits are restricted on distribution for any one Plan
Year are the twenty-five Highly Compensated Employees or former Highly
Compensated Employees (as defined in Code Section 414(q) and regulations
thereunder) who receive the greatest Compensation during such Plan Year.

(d) For purposes of this Section 16.1, "benefit" includes loans in excess of the
amounts set forth in Code Section 72(p), any periodic income, any withdrawal
values payable to a living Employee, and any death benefits not provided for by
insurance on the Employee's life.

                                      -64-
<PAGE>
(e) In the event of Plan termination, the benefit payable to any Employee
described in Subsection (c) shall be limited to a benefit that is
nondiscriminatory under Code Section 401(a)(4). If payment of benefits is
restricted in accordance with Subsection (a), assets in excess of the amount
required to provide such restricted benefits shall become a part of the assets
available under Section 10.2 for allocation among Participants and their joint
annuitants and beneficiaries whose benefits are not restricted under Subsection
(a).

                                      -65-
<PAGE>
                                  ARTICLE XVII
                              Top-Heavy Provisions

      If the Plan is or becomes a Top-Heavy Plan in any calendar year on the
Determination Date the provisions of this Article will supersede any conflicting
provisions of the Plan. It is intended that this Article shall be construed in
accordance with the provisions of Code Section 416.

      17.1 Definitions. For purposes of this Article XVII of the Plan, the
following definitions will apply:

      (a)   "Key Employee" shall mean any employee of the Participating
            Employers or an Affiliate who is a key employee within the meaning
            of Code Section 416(i).

      (b)   "Top-Heavy Plan" shall mean, for any Plan Year, each plan in the
            Aggregation Group for such Plan Year, if, as of the applicable
            Determination Date, the Top-Heavy Ratio exceeds 60%.

      (c)   "Top-Heavy Ratio" For purposes of this Section, Top-Heavy Ratio
            shall mean the following:

            (1)   If the Participating Employers has never maintained a defined
                  contribution plan that covered a Participant in this Plan, the
                  Top-Heavy Ratio is a fraction, the numerator of which is the
                  sum of the present value (based upon the actuarial assumptions
                  set forth in Section 1.2) of Retirement Benefits for all Key
                  Employees under this Plan and all other defined benefit plans
                  maintained by the Participating Employers as of the
                  Determination Date and the denominator of which is the sum of
                  Present Value of Retirement Benefits under this Plan and such
                  other defined benefit plans on that date. Both the numerator
                  and the denominator are adjusted

                                      -66-
<PAGE>
                  to reflect any distributions made in the five-year period
                  ending on the Determination Date.

            (2)   If the Participating Employers maintain one of more defined
                  contribution plans that cover a Key Employee that participates
                  in this Plan, the Top-Heavy Ratio is a fraction, the numerator
                  of which is the sum of account balances for all Key Employees
                  under the defined contribution plans sponsored by the
                  Participating Employers and the Present Value of Retirement
                  Benefits under this Plan and all other defined benefit plans
                  sponsored by the Participating Employers and the Present Value
                  of Retirement Benefits under this Plan and all other defined
                  benefit plans sponsored by the Participating Employers . Both
                  the numerator and denominator are adjusted for any
                  distribution made in the five-year period ending on the
                  Determination Date and any contribution due but unpaid as of
                  the Determination Date.

            (3)   For purposes of (c) (1) and (2) above, the value of account
                  balances and the Present Value of Retirement Benefits will be
                  determined as of the most recent valuation date that falls
                  within or ends with the twelve (12) month period ending on the
                  Determination Date. The account balances and accrued benefits
                  of a Participant who is not a Key Employee but who was a Key
                  Employee in a prior year will be disregarded. The calculation
                  of the Top-Heavy Ratio, and the extent to which distributions,
                  rollover and transfers are taken into account will be made in
                  accordance with Code Section 416 and the regulations
                  thereunder. When aggregating plans, the value of account
                  balances and accrued benefits will be calculated with
                  reference to the Determination Dates that fall within the same
                  calendar year.

      (d)   "Permissive Aggregation Group of Plans" shall mean the Required

                                      -67-
<PAGE>
            Aggregation Group of Plans plus any other plan or plans of the
            Participating Employers which when considered together with the
            Required Aggregation Group of Plans, would continue to satisfy the
            requirements of Code Sections 401(a)(4) and 410.

      (e)   "Required Aggregation Group of Plans" shall mean:

            (1)   each qualified plan of the Participating Employers in which at
                  least one (1) Key Employee participates; and

            (2)   any other qualified plan of the Participating Employers which
                  enables a Plan described in subsection (d) above to meet the
                  requirements of Code Sections 401(a)(4) and 410.

      (f) "Determination Date" shall mean the last day of the preceding calendar
year.

      (g)   "Present Value of Retirement Benefit" shall mean, in the case of a
            defined benefit plan, a Participant's Present Value of Retirement
            Benefit shall be determined:

            (1)   in the case of a Participant other than a Key Employee, using
                  the single accrual method used by all plans of the
                  Participating Employers and Affiliate, or if no such single
                  method exists, using. a method which results in benefits
                  accruing not more rapidly than the slowest accrual rate
                  permitted under Code Section 411(b)(1)(C).

            (2)   as of the most recent "actuarial valuation date", which is the
                  most recent valuation date within a twelve (12) month period
                  ending on the Determination Date.

                                      -68-
<PAGE>
            (3)   for the first calendar year, as if (i) the Participant
                  terminated service as of the Determination Date: or (ii) the
                  Participant terminated service as of the actuarial valuation
                  date, but taking into account the estimated retirement
                  benefits as of the Determination Date.

            (4)   for the second calendar year, the Retirement Benefit taken
                  into account for a current Participant must not be less than
                  the Retirement Benefit taken into account for the first
                  Calendar Year unless the difference is attributable to using
                  an estimate of the Retirement Benefit as of the Determination
                  Date for the first calendar year and using the actual
                  Retirement Benefit for the second calendar year.

            (5)   for any other Plan Year, as if the participant terminated
                  service as of the actuarial valuation date.

            (6)   the actuarial valuation date must be the same date used for
                  computing the defined benefit plan minimum funding costs,
                  regardless of whether a valuation is performed that Plan Year.

            (7)   by not taking into account proportional subsidies.

            (8)   by not taking into account nonproportional subsidies.

      17.2 Vesting. For any calendar year in which the Plan is a Top-Heavy Plan,
the nonforfeitable interest of a Participant who terminates employment other
than by death or retirement shall not be less than the interest determined on
the basis of the following schedule:

                               20% vesting after 2 Years of Service,
                               40% vesting after 3 Years of Service,
                               60% vesting after 4 Years of Service, and
                               100% vesting after 5 Years of Service.

                                      -69-
<PAGE>
      Notwithstanding the foregoing, if after having previously been a Top-Heavy
Plan, the Plan is no longer a Top-Heavy Plan in any calendar year, the vesting
schedule set forth above shall no longer apply (and vesting shall be determined
under otherwise applicable Plan provisions), except that (a) such schedule shall
continue to apply (with respect to his entire Accrued Benefit) to a Participant
who has at least 3 Years of Service at the beginning of the calendar year in
which the Plan ceases to be a Top-Heavy Plan and (b) in the case of any other
Participant, with respect to his Accrued Benefit as of the beginning of such
calendar year, the vesting percentage applicable shall not be less than the
percentage applicable under the above schedule as of the beginning of such
calendar year.

      17.3 Minimum Accrued Benefit. Notwithstanding any other provision of this
Plan, if in any calendar year the Plan is a Top-Heavy Plan, the benefit of any
Participant (other than a Key Employee), payable as a life annuity commencing at
his Normal Retirement Date, shall not be less than:

      (a)   the product of the Participant's average compensation for the
            "testing period" (as determined under Code Section 416(c)(1)(D))
            multiplied by the lesser of (1) 2% multiplied by the number of years
            of employment during which years the Plan is a Top-Heavy Plan or (2)
            20%, minus

      (b)   the Participant's cumulative annual retirement benefit under all
            other tax-qualified retirement plans maintained by the Participating
            Employers.

The amount of the reduction applicable under (b) above shall be determined by
conversion of the Participant's Accrued Benefit under each other tax-qualified
retirement plan into an actuarial equivalent life annuity commencing at his
Normal Retirement Date, disregarding any portion of such benefit that is
attributable to (1) employee contributions, (2) salary reduction contributions
and (3) matching employer contributions required by any such other tax-qualified
retirement plan to satisfy the

                                      -70-
<PAGE>
deferral test under Code Section 401(k) or the contribution test under Code
Section 401(m).

      For purposes of computing the minimum accrued benefit, compensation shall
include all compensation, as that term is defined in Section 14.1 of the Plan
(subject to the limitation under Code Section 401(a)(17)).

      The minimum accrued benefit hereunder shall be determined without regard
to any Social Security benefit. The minimum accrual shall apply even though
under other Plan provisions the Participant would not otherwise be entitled to
receive an accrual, or would have received a lesser accrual, for years in which
the Plan is a Top-Heavy Plan because (a) his compensation is less than a stated
amount, or (b) he is not employed on the last day of the accrual computation
period.

      If a Non-Key Employee participates in this Plan and a defined contribution
Plan included in a Required Aggregation Group which is Top Heavy, a minimum
allocation of shall be provided under this Plan only.

      17.4 Change in Section 415 Limitations. In addition, if the Plan becomes a
Top-Heavy Plan, the maximum benefit limitations set forth in the Plan to comply
with Code Section 415(e) in effect for Plan Years beginning prior to January 1,
2000 shall be modified to the extent required under Code Section 416(h).

                                      -71-
<PAGE>
                                 ARTICLE XVIII
                            Construction of the Plan

      The validity of the Plan or of any of the provisions thereof shall be
determined under and shall be construed according to the laws of the State of
Delaware and ERISA.

      Titles to Sections are for general information only and the Plan is not to
be construed by reference thereto.

      The masculine pronoun includes the feminine and the singular form includes
the plural wherever such usage would apply.

      IN WITNESS WHEREOF, Radian Group Inc. has caused this amendment and
restatement of the Plan to be executed by its duly authorized party on this
______________ day of __________________, 2002.

[ SEAL]                                        RADIAN GROUP INC.

Attest:__________________________________      By:______________________________

                                               Its:_____________________________

                                      -72-
<PAGE>
                                   SCHEDULE A
                             Participating Employers

Radian Group Inc.

RadianExpress.com Inc.

Radian Guaranty Inc.

Radian Insurance Inc.

                                      -73-<PAGE>
                                                               EXHIBIT 10.10

                                RADIAN GROUP INC.
                             SAVINGS INCENTIVE PLAN
                 AMENDED AND RESTATED EFFECTIVE JANUARY 1, 1997

               (Incorporating Amendments through January 1, 2002)
<PAGE>
                    RADIAN GROUP INC. SAVINGS INCENTIVE PLAN
                 AMENDED AND RESTATED EFFECTIVE JANUARY 1, 1997

                                Table of Contents

<TABLE>
<CAPTION>
                                                                                    Page
<S>                                                                                 <C>
PREAMBLE.......................................................................       1

 ARTICLE I - DEFINITIONS ......................................................       2
         1.1      Account......................................................       2
         1.2      Actual Deferral Percentage...................................       3
         1.3      Affiliated Company...........................................       3
         1.4      Age..........................................................       4
         1.5      Annuity Starting Date........................................       4
         1.6      Average Actual Deferral Percentage...........................       4
         1.7      Average Contribution Percentage..............................       4
         1.8      Beneficiary..................................................       4
         1.9      Board of Directors...........................................       4
         1.10     Code.........................................................       4
         1.11     Company......................................................       4
         1.12     Company Stock................................................       4
         1.13     Compensation.................................................       5
         1.14     Contribution Percentage......................................       5
         1.15     Discretionary Contributions..................................       6
         1.16     Early Retirement Date .......................................       6
         1.17     Eligible Employee............................................       6
         1.18     Employee.....................................................       6
         1.19     Employment Commencement Date.................................       7
         1.20     Entry Date...................................................       7
         1.21     ERISA........................................................       7
         1.22     Fund.........................................................       7
         1.23     Highly Compensated Employee..................................       7
         1.24     Hour of Service..............................................       7
         1.25     Investment Medium............................................       9
         1.26     Matching Contributions.......................................       9
         1.27     Non-Highly Compensated Employee..............................       9
         1.28     Normal Retirement Age........................................       9
         1.29     Participant..................................................       9
         1.30     Participating Company........................................      10
         1.31     Period of Severance..........................................      10
         1.32     Plan.........................................................      11
         1.33     Plan Administrator...........................................      11
         1.34     Plan Year....................................................      11
</TABLE>

                                        i
<PAGE>
<TABLE>
<S>                                                                                 <C>

         1.35     Probationary Period..........................................      11
         1.36     Required Beginning Date......................................      11
         1.37     Rollover Contributions.......................................      12
         1.38     Salary Reduction Contributions...............................      12
         1.39     Separation from Service......................................      12
         1.40     Spouse.......................................................      12
         1.41     Total Disability.............................................      12
         1.42     Trust Agreement..............................................      13
         1.43     Trustee......................................................      13
         1.44     Valuation Date...............................................      13
         1.45     Voluntary Contributions......................................      13
         1.46     Year of Service..............................................      13

 ARTICLE II - ELIGIBILITY TO PARTICIPATE.......................................      15
         2.1      Eligibility to Participate...................................      15
         2.2      Participation and Service Upon Reemployment..................      15
         2.3      Data   ......................................................      15
         2.4      Transfers....................................................      15
         2.5      Reemployment after Military Service..........................      16

 ARTICLE III - CONTRIBUTIONS TO THE PLAN.......................................      17
         3.1      Salary Reduction Contributions...............................      17
         3.2      Voluntary Contributions......................................      18
         3.3      Change of Percentage Rate....................................      18
         3.4      Discontinuance of Salary Reduction Contributions.............      18
         3.5      Employer Contributions.......................................      19
         3.6      Timing Contributions.........................................      20
         3.7      Limitation on Salary Reduction Contributions and Matching
                  Contributions and Prevention of Violation....................      20
         3.8      Maximum Allocation...........................................      25
         3.9      Rollover Contributions.......................................      29

ARTICLE IV - PARTICIPANTS' ACCOUNTS............................................      32
         4.1      Accounts ....................................................      32
         4.2      Valuation....................................................      32
         4.3      Apportionment of Gain or Loss................................      32

 ARTICLE V - VESTING ..........................................................      33
         5.1      Nonforfeitable Amounts.......................................      33
         5.2      Period of Severance and Loss of Service......................      33
         5.3      Restoration of Service.......................................      34
         5.4      Forfeitures and Restoration of Forfeited Amounts upon
                  Reemployment.................................................      34
</TABLE>

                                       ii
<PAGE>
<TABLE>
<CAPTION>
                                                                                    Page
<S>                                                                                 <C>
 ARTICLE VI - DISTRIBUTIONS....................................................      36
         6.1      General .....................................................      36
         6.2      Normal Retirement............................................      36
         6.3      Early Retirement.............................................      36
         6.4      Late Retirement..............................................      36
         6.5      Death    ....................................................      36
         6.6      Total Disability.............................................      36
         6.7      Valuation for Distribution...................................      37
         6.8      Payment of Benefits..........................................      37
         6.9      Timing of Distribution.......................................      37
         6.10     Beneficiary Designation......................................      39
         6.11     Treatment of Terminated Vested Participant...................      41
         6.12     Direct Rollover..............................................      42

 ARTICLE VII - WITHDRAWALS ....................................................      44
         7.1      Non-Hardship In-Service Withdrawals..........................      44
         7.2      Hardship Withdrawals Subject to Code Section 401(k)..........      44
         7.3      Amount and Payment of Withdrawals............................      47
         7.4      Withdrawals Not Subject to Replacement.......................      47
         7.5      Investment Medium to be Charged with Withdrawal..............      47
         7.6      Order of Withdrawals.........................................      47
         7.7      Timing of Withdrawals........................................      48

 ARTICLE VIII - LOANS TO PARTICIPANTS..........................................      49
         8.1      Loan Application.............................................      49
         8.2      Loan Approval................................................      49
         8.3      Amount of Loan...............................................      49
         8.4      Terms of Loan................................................      50
         8.5      Loan Fees....................................................      51
         8.6      Suspension of Repayments.....................................      51
         8.7      Additional Rules.............................................      51

 ARTICLE IX - PLAN ADMINISTRATION..............................................      52
         9.1      Plan Administrator...........................................      52
         9.2      Appointment..................................................      52
         9.3      Term and Compensation........................................      52
         9.4      Claims Review................................................      52
         9.5      Plan Administrator Actions...................................      54
         9.6      Investment Manager...........................................      54
         9.7      Benefit Payment Directions...................................      54
         9.8      Nondiscrimination............................................      55
         9.9      Advisors 55
         9.10     Records and Reports..........................................      55
         9.11     Indemnification..............................................      55
</TABLE>

                                       iii
<PAGE>
<TABLE>
<CAPTION>
                                                                                    Page
<S>                                                                                 <C>
         9.12     Power and Duties of the Plan Administrator...................      56
         9.13     Participating Company to Supply Information..................      57
         9.14     Self-Interest................................................      58

 ARTICLE X - THE FUND .........................................................      59
         10.1     Designation of Trustee.......................................      59
         10.2     Exclusive Benefit............................................      59
         10.3     No Interest in Fund..........................................      59
         10.4     Trustee .....................................................      59
         10.5     Investments..................................................      59
         10.6     Fund ........................................................      60
         10.7     Qualifying Employer Securities...............................      61

 ARTICLE XI - AMENDMENT OR TERMINATION OF THE PLAN.............................      62
         11.1     Power of Amendment and Termination...........................      62
         11.2     Merger ......................................................      62

 ARTICLE XII - TOP-HEAVY PROVISIONS............................................      63
         12.1     General .....................................................      63
         12.2     Definitions..................................................      63
         12.3     Minimum Contribution for Non-Key Employees...................      67
         12.4     Social Security..............................................      68
         12.5     Adjustment to Maximum Benefit Limitation.....................      69

 ARTICLE XIII - GENERAL PROVISIONS.............................................      70
         13.1     No Employment Rights.........................................      70
         13.2     Governing Law................................................      70
         13.3     No Interest in Fund..........................................      70
         13.4     Spendthrift Clause...........................................      70
         13.5     Incapacity...................................................      70

 SCHEDULE A - PARTICIPATING COMPANIES..........................................      72
</TABLE>

                                       iv
<PAGE>
                    RADIAN GROUP INC. SAVINGS INCENTIVE PLAN
                 AMENDED AND RESTATED EFFECTIVE JANUARY 1, 1997

                                    PREAMBLE

      WHEREAS, Radian Group Inc. (formerly known as, CMAC Investment
Corporation) (the "Company") adopted the Radian Group Inc. Savings Incentive
Plan (formerly known as, the CMAC Investment Corporation Savings Incentive Plan)
(the "Plan"), effective November 1, 1992, for the benefit of its eligible
employees and the eligible employees of the Participating Companies in the
United States; and

      WHEREAS, the Company has amended the Plan several times before; and

      WHEREAS, the Company desires at this time to amend and restate the Radian
Group Inc. Savings Incentive Plan to, among other things, incorporate the
applicable provisions of the Uruguay Round Agreement Act, the Uniformed Services
Employment and Reemployment Act of 1994, the Small Business Job Protection Act
of 1996, and the Taxpayer Relief Act of 1997 (collectively, "GUST") and other
amendments which were made to the Plan by the Company since the Plan's last
restatement; and

      WHEREAS, the Company also desires to make other changes;

      NOW, THEREFORE, effective January 1, 1997 (except as otherwise set forth
herein), the Plan is hereby amended and restated as hereinafter set forth.

                                      -1-
<PAGE>
                             ARTICLE I - DEFINITIONS

Except where otherwise clearly indicated by context, the masculine shall include
the feminine and the singular shall include the plural, and vice-versa. Any term
used herein without an initial capital letter that is used in a provision of the
Code with which this Plan must comply to meet the requirements of such
applicable Code Section and with which the Plan would not comply if such term
were not interpreted as used in such provision, shall have as used herein the
meaning that it has so used in such provision of the Code.

1.1 "Account" means the entries maintained in the records of the Trustee which
represent the Participant's interest in the Fund. The term "Account" shall
refer, as the context indicates, to any or all of the following subaccounts:

      (a)   "Matching Contribution Account" - the Account to which are credited
            Matching Contributions allocated to a Participant, and adjustments
            related thereto.

      (b)   "Rollover Contribution Account" - the Account to which are credited
            a Participant's Rollover Contributions and adjustments related
            thereto.

      (c)   "Salary Reduction Contribution Account" - the Account to which are
            credited a Participant's Salary Reduction Contributions and
            adjustments related thereto.

      (d)   "Voluntary Savings Account" - the Account to which are credited a
            Participant's Voluntary Contributions prior to January 1, 1994, and
            adjustments related thereto. Effective January 1, 1994, Voluntary
            Contributions are not permitted to be made to the Plan.

                                      -2-
<PAGE>
      (e)   "Discretionary Contribution Account" - the Account to which are
            credited Discretionary Contributions allocated to a Participant, and
            adjustments related thereto.

1.2 "Actual Deferral Percentage" means, for any Eligible Employee for a given
Plan Year, the ratio of:

      (a)   the sum of

            (1)   such Eligible Employee's Salary Reduction Contributions for
                  the Plan Year, plus

            (2)   in the case of any Highly Compensated Eligible Employee, his
                  elective deferrals for the year under any other qualified
                  retirement plan maintained by the Participating Company or any
                  Affiliated Company; to

      (b)   the Eligible Employee's Compensation for the Plan Year while a
            Participant.

1.3   "Affiliated Company" means, with respect to the Company:

      (a)   any corporation that is a member of the same controlled group of
            corporations (within the meaning of Section 414(b) of the Code) as
            the Company;

      (b)   any member of an affiliated service group, as determined under
            Section 414(m) of the Code, of which the Company is a member;

      (c)   any trade or business that is under common control with the Company,
            as determined under Section 414(c) of the Code; and

                                      -3-
<PAGE>
      (d)   any other entity required to be aggregated with the Company pursuant
            to Regulations under Section 414(o) of the Code.

1.4 "Age" means, for any individual, his age as of his nearest birthday, except
that an individual attains Age 70 1/2 on the corresponding date in the sixth
calendar month following the month in which his 70th birthday falls (or the last
day of such sixth month if there is no such corresponding date therein).

1.5 "Annuity Starting Date" means the first day on which all events have
occurred which entitle the Participant to a benefit from the Plan.

1.6 "Average Actual Deferral Percentage" means, for a specified group of
Eligible Employees for a Plan Year, the average of the Actual Deferral
Percentages for such Eligible Employees for the Plan Year.

1.7 "Average Contribution Percentage" means, for a specified group of Eligible
Employees for a Plan Year, the average of the Contribution Percentages for such
Eligible Employees for the Plan Year.

1.8 "Beneficiary" means the person or persons designated by the Participant to
receive the value of his vested Account upon his death; provided, that, in the
case of a married Participant, his Beneficiary shall automatically be his Spouse
unless his Spouse has consented to the designation of another Beneficiary
pursuant to Section 6.9.

1.9 "Board of Directors" means the Board of Directors of the Company.

1.10 "Code" means the Internal Revenue Code of 1986, as amended.

1.11 "Company" means Radian Group Inc., a Pennsylvania Corporation, or any
successor or assignee which adopts this Plan in writing.

                                      -4-
<PAGE>
1.12 "Company Stock" means any tradable class of voting common stock of the
Company or an Affiliated Company which satisfies the meaning of "qualifying
employer security" under Section 407 of ERISA.

1.13 "Compensation" means, for any Eligible Employee, for any Plan Year or
Limitation Year, as the case may be:

      (a)   except as otherwise provided, his base pay from a Participating
            Company for the Plan Year, but exclusive of overtime, bonuses,
            commissions, or other forms of special payments.

      (b)   for the purpose of the definitions of Actual Deferral Percentage and
            Contribution Percentage in this Article (except as otherwise
            provided in such definitions), his "Compensation" as such word is
            defined in 415(c)(3) of the Code or such other definition of
            Compensation that satisfies the requirements of Code regulation
            Section 1.414(s)-1(c)(2) or 1.414(s)-1(c)(3), determined on a
            consistent basis with regard to all Eligible Employees for a
            determination period.

      (c)   for the purpose of the definition of "Highly Compensated Employee"
            in this Article (except as otherwise provided in such definition),
            his "Compensation" as such word is defined in Section 415(c)(3) of
            the Code, but including amounts that are excluded from gross income
            under a plan described in Sections 125, 132(f) or 401(k) of the
            Code.

      (d)   For each Plan Year or Limitation Year, as the case may be,
            Compensation for all purposes under the Plan, shall be limited to
            $170,000, as adjusted pursuant to the procedure in Section
            401(a)(17)(B) of the Code.

1.14 "Contribution Percentage" means for any Eligible Employee for a given Plan
Year, the ratio of:

                                      -5-
<PAGE>
      (a)   the sum of:

            (1)   the Matching Contributions made on behalf of such Eligible
                  Employee for the Plan Year, plus

            (2)   in the case of any Eligible Employee who is a Highly
                  Compensated Employee, any employee contributions and employer
                  matching contributions under any other qualified retirement
                  plan maintained by the Participating Company or any Affiliated
                  Company; to

      (b)   the Eligible Employee's Compensation for the Plan Year while a
            Participant.

1.15 "Discretionary Contributions" means the amounts which may be contributed by
a Participating Company pursuant to Section 3.5.

1.16 "Early Retirement Date" means, for any Participant, effective January 1,
1994, the date a Participant attains age 55 and completes six Years of Service.

1.17 "Eligible Employee" means an Employee who is employed by a Participating
Company and who is classified by the Participating Company as a common law
employee, except that Employees whose employment is covered by a collective
bargaining agreement shall not be Eligible Employees unless such agreement
specifically provides for their participation in the Plan. For purposes of
determining eligibility under the Plan, the classification to which an
individual is assigned by a Participating Company shall be final and conclusive,
regardless of whether a court, a governmental agency or other entity
subsequently finds such individual should have been assigned a different
classification.

1.18 "Employee" means an individual who is reported on payroll records as a
common law employee of a Participating Company or Affiliated Company. An
individual who is not a common law employee of a Participating Company or

                                      -6-
<PAGE>
Affiliate Company shall be deemed a common law employee by such Company if he is
a leased employee with respect to whose services such Participating Company or
Affiliate Company is the recipient within the meaning of Code Section 414(n) or
(o) but to whom Code Section 414(n)(5) does not apply, and then only if the
coverage requirements of Code Section 410(b) would otherwise not be met.

1.19 "Employment Commencement Date" means, for any Employee, the date on which
he is first entitled to be credited with an "Hour of Service" described in
Section 1.24(a)(1). For each employee of Amerin Guaranty Corporation, as of the
date Amerin Guaranty Corporation merged with the Company, "Employment
Commencement Date" shall be the date recognized as such by Amerin Guaranty
Corporation.

1.20 "Entry Date" means each January 1st, April 1st, July 1st and October 1st
next following the month during which the end of an Eligible Employee's
Probationary Period occurs.

1.21 "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

1.22 "Fund" means the fund established for this Plan, administered under the
Trust Agreement, out of which benefits payable under this Plan shall be paid.

1.23 "Highly Compensated Employee" means any Employee who

      (a)   (1) was a 5-percent owner (as defined in Section 415(c)(3) of the
            Code) at any time during the Plan Year or the preceeding Plan Year;
            or (2) for the preceding Plan Year, received Compensation from a
            Participating Company in excess of $80,000 (as adjusted pursuant to
            Sections 414(q) and 415(d) of the Code) and was in the top-paid
            group (as defined in Section 414(q)(3) of the Code) of Employees;

                                      -7-
<PAGE>
      (b)   A former Employee shall be treated as a Highly Compensated Employee
            if such Employee was a Highly Compensated Employee when such
            Employee separated from service or such Employee was a Highly
            Compensated Employee at any time after the Employee's 55th birthday.

1.24 "Hour of Service" means, for any Employee:

      (a)   except as provided in (b):

            (1)   each hour for which he is directly or indirectly paid or
                  entitled to payment by a Participating Company or an
                  Affiliated Company for the performance of employment duties;
                  or

            (2)   each hour for which he is entitled, either by award or
                  agreement, to back pay from a Participating Company or an
                  Affiliated Company, irrespective of mitigation of damages; or

            (3)   each hour for which he is directly or indirectly paid or
                  entitled to payment by a Participating Company or an
                  Affiliated Company on account of a period of time during which
                  no duties are performed due to vacation, holiday, illness,
                  incapacity (including disability), jury duty, layoff, leave of
                  absence, or military duty; or

      (b)   Anything to the contrary in Subsection (a) notwithstanding:

            (1)   No Hours of Service shall be credited to an Employee for any
                  period during which payments are made or due him under a plan
                  maintained solely for the purpose of complying with applicable
                  workers' compensation, unemployment compensation, or
                  disability insurance laws.

                                      -8-
<PAGE>
            (2)   No more than 501 Hours of Service shall be credited to an
                  Employee under Paragraph (a)(3) of this definition on account
                  of any single continuous period during which no duties are
                  performed by him, except to the extent otherwise provided in
                  the Plan.

            (3)   No Hours of Service shall be credited to an Employee with
                  respect to payments solely to reimburse for medical or
                  medically related expenses.

            (4)   No Hours of Service shall be credited twice.

            (5)   Hours of Service shall be credited at least as liberally as
                  required by the rules set forth, in U.S. Department of Labor
                  Reg. Section 2530.200b-2(b) and (c).

      (c)   Notwithstanding the foregoing, an Employee who is employed on a
            full-time basis shall be credited with ten Hours of Service for each
            day he is entitled to be credited with at least one Hour of Service.
            For purposes hereof, an Employee shall be considered to be employed
            on a full-time basis if he is expected to normally work at least 20
            hours per week or, in the case of an Employee who works on a
            seasonal or temporary basis, is expected to normally work at least
            30 weeks in a year at 35 or more hours per week.

1.25 "Investment Medium" means any fund, contract, obligation, or other mode of
investment to which a Participant may direct the investment of the assets of his
Account, including Company Stock

1.26 "Matching Contributions" means the amounts contributed by a Participating
Company pursuant to Section 3.5.

                                      -9-
<PAGE>
1.27 "Non-Highly Compensated Employee" means an Employee who is not a Highly
Compensated Employee. For purposes of applying the nondiscrimination testing
provisions under Section 3.7, an Employee's status as a Non-Highly Compensated
Employee in the preceding Plan Year is determined without regard to his status
in the current Plan Year.

1.28 "Normal Retirement Age" means, for any Participant, the first day of the
calendar month coincident with or next following the date on which he attains
Age 65.

1.29 "Participant" means any Eligible Employee who enters the Plan pursuant to
Section 2.1 or a former Eligible Employee with an Account under the Plan.

1.30 "Participating Company" means the Company and each Affiliated Company which
is authorized by the Board of Directors to adopt this Plan by action of its
board of directors or other governing body. The Participating Companies are
listed in Schedule A.

1.31 "Period of Severance" means, effective January 1, 1998, a Plan Year during
which an Employee has not completed more than 500 Hours of Service due to a
Separation from Service.

An Employee who leaves employment in a "qualified absence," shall be credited,
solely to avoid a Period of Severance, with the Hours of Service with which such
Employee would have been credited but for the absence; or, if such hours cannot
be determined, with eight Hours of Service per normal workday. The total number
of hours to be treated as Hours of Service under this definition shall not
exceed 501. The hours described in this definition shall be credited either for
the Plan Year in which the absence from work begins, if the Employee would be
prevented from incurring a Period of Severance in such Plan Year because the
period of absence is treated as Hours of Service under this definition, or, in
any other case, for the Plan Year next following the one in which the absence
from work begins.

                                      -10-
<PAGE>
"Period of Severance" prior to January 1, 1998, shall mean the period beginning
on the Separation from Service date and ending on the date when an Employee
returns to employment with the Participating Company or Affiliated Company. As
of December 31, 1997, any Period of Service less than a whole year shall be
disregarded. Notwithstanding the above, with respect to an Employee who leaves
employment in a "qualified absence," his Period of Severance shall commence on
the second anniversary of his Separation from Service date.

As used herein, "qualified absence" with respect to an Employee, shall mean an
absence from employment with a Participating Company or Affiliated Company by
reason of (1) the pregnancy of the Employee, (2) the birth or adoption of a
child of the Employee, or (3) for the caring of such Employee's child
immediately after birth or adoption. The Plan Administrator may require such
information as it deems appropriate to confirm the reasons for any duration of
any such absence.

1.32 "Plan" means the Radian Group Inc. Savings Incentive Plan, a profit-sharing
plan, as set forth herein.

1.33 "Plan Administrator" or "Administrator" means the individuals appointed by
the Board of Directors to supervise the administration of the Plan, as provided
in Article IX.

1.34 "Plan Year" means each 12 consecutive-month period that begins on January 1
and ends on the next following December 31.

1.35 "Probationary Period" means for any Eligible Employee, that period of time
beginning on the Employment Commencement Date and ending on the ninetieth day
following such Employment Commencement Date.

1.36 "Required Beginning Date" means, for any Participant:

      (a)   if he attained Age 70-1/2 on or after January 1, 1996, the April 1
            of the calendar year following the calendar year in which occurs the
            later of (i)

                                      -11-
<PAGE>
            his attainment of Age 70-1/2 or (ii) his Separation from Service;
            provided, however, if he is a 5-percent owner (within the meaning of
            Code Section 416) of a Participating Company, clause (ii) shall not
            apply;

      (b)   if he attained age 70-1/2 before January 1, 1988, and is not a
            5-percent owner (within the meaning of Code Section 416) of a
            Participating Company, April 1 of the calendar year following the
            later of the calendar year in which he has a Separation from Service
            or the calendar year in which he attained Age 70-1/2;

      (c)   if he attained age 70-1/2 before January 1, 1988, and is a 5-percent
            owner (within the meaning of Code Section 416) of a Participating
            Company, the later of December 31, 1987 or April 1 of the calendar
            year following the calendar year in which he attained Age 70-1/2;

      (d)   if he attained age 70-1/2 before January 1, 1989 and after December
            31, 1987, is not a 5-percent owner (within the meaning of Code
            Section 416) of a Participating Company, and has not had a
            Separation from Service before January 1, 1989, April 1, 1990;

      (e)   if he attains age 70-1/2 on or after January 1, 1989, April 1 of the
            calendar year next following the calendar year in which he attains
            Age 70-1/2.

1.37 "Rollover Contributions" means, for any Eligible Employee, his rollover
contributions as provided in Section 3.9.

1.38 "Salary Reduction Contributions" means, for any Participant, pre-tax
contributions made by the Participating Company on his behalf as provided in
Section 3.1.

1.39 "Separation from Service" means, for any Employee, his death, retirement,
resignation, discharge or any absence that causes him to cease to be an
Employee.

                                      -12-
<PAGE>
1.40 "Spouse" means the person to whom the Participant is married on his Annuity
Starting Date (without regard to whether the marriage terminates at a later
date).

1.41 "Total Disability" shall mean a disability which:

      (a)   is deemed by the Plan Administrator, to be of a potentially
            permanent nature on the basis of the Participant's demonstration to
            the Plan Administrator that he is entitled to both benefits under a
            long-term disability plan of a Participating Company and disability
            benefits under the Social Security Act (prior to January 1, 2002,
            the Plan Administrator's determination of the potentially permanent
            nature of the disability is based upon medical certification);

      (b)   prevents an Employee from continuing to perform, for a Participating
            Company or Affiliated Company, the duties of his customary job or
            any other available job for which he is qualified by training or
            experience, and

      (c)   results from illness or injury which is not self-inflicted and does
            not result from alcoholism or the use of narcotics.

1.42 "Trust Agreement" means the agreement and declaration of trust executed for
purposes of the Plan.

1.43 "Trustee" means the corporate trustee or one or more individuals
collectively appointed and acting under the Trust Agreement.

1.44 "Valuation Date" means, effective, January 1, 2000, each day on which the
stock exchange is open. Prior to January 1, 2000, "Valuation Date" means each
March 31st, June 30th, September 30th and December 31st.

                                      -13-
<PAGE>
1.45 "Voluntary Contributions" means a Participant's after-tax contributions, if
any, made to the Plan prior to January 1, 1994, as provided in Section 3.2.

1.46 "Year of Service" for purposes of determining the vesting percentage under
Section 5.1, shall mean, effective January 1, 1998, each Plan Year during which
an Employee is credited with at least 1,000 Hours of Service.

Prior to January 1, 1998, "Year of Service" shall mean the aggregate of all time
commencing with an Employee's Employment (or Re-employment) Commencement Date
and ending on the earlier of his Separation from Service or December 31, 1997.
If re-employed prior to December 31, 1997, but within 12 months of his
Separation from Service Date, an Employee shall receive credit for any such
Period of Severance. When aggregating an Employee's Period of Service,
fractional periods will be expressed in months, with an Employee receiving
credit for a month if he works one day in a month. For purposes of determining
the percentage under Section 5.1, any Period of Service less than a whole year
after calculating the aggregated Period of Service shall be disregarded.

Notwithstanding the above, an Employee as of January 1, 1998, shall be credited
with the number of Years of Service equal to the number of 1-year Periods of
Service credited to the Employee as of that date, plus the Employee shall
receive credit, in the Plan Year beginning on January 1, 1998, for 190 Hours of
Service for each month credited to the Employee as of December 31, 1998.

For all purposes under the Plan, Years of Service shall be computed by taking
into account employment with Reliance Insurance Company and any other
predecessor employer as required by Section 414(a)(1) of the Code or under
regulations prescribed pursuant to Section 414(a)(2) of the Code.

                                      -14-
<PAGE>
                     ARTICLE II - ELIGIBILITY TO PARTICIPATE

2.1 Eligibility to Participate. Each Eligible Employee who has completed the
Probationary Period shall be eligible to participate as of his Entry Date.

2.2 Participation and Service Upon Reemployment. Participation in the Plan shall
cease upon termination of employment with a Participating Company. Upon the
reemployment of any former Participant who had previously been employed by a
Participating Company, he shall again participate in the Plan on the date of his
re-employment by a Participating Company or, if later, the Entry Date coincident
with or next following, the date he becomes an Eligible Employee.

2.3 Data. Each Eligible Employee shall furnish to the Plan Administrator such
data as the Plan Administrator may consider necessary for the determination of
the Eligible Employee's rights and benefits under the Plan and shall otherwise
cooperate fully with the Plan Administrator in the administration of the Plan.

2.4 Transfers. If a Participant is transferred to employment with a member of
the controlled group of corporations of which a Participating Company is a part,
his participation under the Plan shall be suspended; provided, however, that
during the period of his employment in such ineligible position:

      (a)   subject to the reemployment provisions of Section 2.2, service for
            vesting purposes shall continue to accrue,

      (b)   he shall cease to have any right to enter into a salary reduction
            agreement with a Participating Company pursuant to Section 3.1,

      (c)   his Matching Contribution Account, Discretionary Contribution
            Account, and Salary Reduction Account shall receive no Employer
            Contribution allocations under Sections 3.1 and 3.5,

                                      -15-
<PAGE>
      (d)   his Account shall continue to participate in income allocations
            pursuant to Section 4.3, and

      (e)   the withdrawal privileges under Sections 7.1 and 7.2 shall continue
            to apply.

2.5 Reemployment after Military Service. Effective December 12, 1994,
notwithstanding any provision of the Plan to the contrary, contributions,
benefits and service credit with respect to qualified military service shall be
provided in accordance with Code Section 414(u).

                                      -16-
<PAGE>
                     ARTICLE III - CONTRIBUTIONS TO THE PLAN

3.1   Salary Reduction Contributions.

      (a)   When a Participant files an election to have pre-tax Salary
            Reduction Contributions made on his behalf, he shall elect the
            percentage by which his Compensation shall be reduced on account of
            such pre-tax Salary Reduction Contributions. Subject to Sections 3.7
            and 3.8, this percentage may be made in any whole increment from one
            percent (1%) to fifteen percent (15%) of such Compensation.

      (b)   Each Participant may elect to make Salary Reduction Contributions by
            filing a written notice of such election with the Plan Administrator
            at least 15 days in advance of the effective date of such election
            on a form provided for that purpose. Such notice shall authorize the
            Participating Company to reduce such Participant's Compensation by
            an amount determined in accordance with Section 3.1(a) above and to
            make Salary Reduction Contributions on such Participant's behalf in
            the amount of such reduction. Such election shall be effective on
            the Entry Date following receipt of his election by the Plan
            Administrator.

      (c)   Salary Reduction Contributions made on behalf of a Participant for
            any calendar year shall not exceed $10,500 (as adjusted in
            accordance with Section 402(g) of the Code and regulations
            thereunder). To the extent necessary to satisfy this limitation for
            any calendar year:

            (1)   elections under Subsection (a) of this Section shall be
                  prospectively restricted; and,

            (2)   after application of Subparagraph (1), the excess Salary
                  Reduction Contributions (with earnings thereon, but reduced by

                                      -17-
<PAGE>
                  any amounts previously distributed ) shall be paid to the
                  Participant on or before the April 15 first following the
                  calendar year in which such excess Salary Reduction
                  Contributions were made.

3.2 Voluntary Contributions.

      (a)   Effective January 1, 1994, Voluntary Contributions shall not be
            permitted to be made under this Plan. Voluntary Contributions made
            prior to January 1, 1994 shall be maintained in each Participant's
            Voluntary Contribution Account and shall be subject to the Plan
            provisions as herein set forth.

      (b)   Prior to January 1, 1994, Participants were permitted to make
            Voluntary Contributions under this Plan in an amount which when
            added to the amount, if any, of any voluntary contributions to other
            qualified plans of the Participating Company, did not exceed 10% of
            their Compensation while Participants, and which amount was subject
            to the provisions of Sections 3.7 and 3.8. Voluntary Contributions
            are credited to a Participant's Voluntary Savings Account and
            amounts credited to such Account shall be 100 percent vested and
            nonforfeitable at all times. Contributions made hereunder by
            Participants are not intended to be deductible by Participants under
            Section 219(a) of the Code.

3.3 Change of Percentage Rate. A Participant may change the percentage of
Compensation designated by him as his contribution rate under Section 3.1 to any
percentage permitted, and such percentage shall remain in effect until so
changed. Any such change, elected on a form provided for that purpose, shall
become effective as soon as practicable following receipt of the request for
change by the Plan Administrator.

3.4 Discontinuance of Salary Reduction Contributions. A Participant may
discontinue his Salary Reduction Contributions at any time. Such discontinuance

                                      -18-
<PAGE>
shall become effective the next pay period after receipt of the discontinuance,
on the form provided for that purpose by the Plan Administrator. A Participant
who discontinues his Salary Reduction Contributions may resume his Salary
Reduction Contributions as soon as practicable following his execution of a new
election.

      3.5   Employer Contributions.

      (a)   Matching Contributions. Subject to the limitations set forth in
            Sections 3.7 and 3.8, for each Plan Year, each Participating Company
            shall make a Matching Contribution to the Fund on behalf of each
            Participant who makes Salary Reduction Contributions for such Plan
            Year. Such Matching Contribution shall be equal to the greater of
            (1) 25% of the Participant's Salary Reduction Contributions up to 5%
            of his Compensation (1.25% of Compensation), or (2) the amount
            determined by the Board of Directors, in its discretion, to make as
            a Matching Contribution as of the last day of the Plan Year.
            Matching Contributions will be credited only to the Accounts of
            those Participants who are employed by the Participating Company on
            the last day of the Plan Year, unless such Participant died, retired
            or incurred a Total Disability during the Plan Year, and has not
            elected to receive an early distribution of his Account.

      (b)   Discretionary Contributions. Reserved for future use.

      (c)   Payment. All contributions made pursuant to this Section 3.5, shall
            be made in cash or Company Stock from the Participating Company's
            current or accumulated earnings as computed in accordance with
            accepted accounting practices, before deduction of federal income
            taxes and reserves for contingencies, if any, other than reasonable
            reserves of a type or character allowed or allowable as deductions
            for federal income tax purposes, and before deduction of any
            contributions hereunder. In no event, however, shall the
            Participating Company contributions for any year (whether made
            pursuant to Section 3.1 or otherwise) exceed the

                                      -19-
<PAGE>
            amount deductible for such year for income tax purposes as a
            contribution to the Fund under the applicable provisions of the
            Code.

3.6 Timing of Contributions. Contributions for any Plan Year under Section 3.5
shall be made no later than the last date on which amounts so paid may be
deducted for Federal income tax purposes for the taxable year of the Company in
which the Plan Year ends. All Contributions made under Section 3.5 are expressly
conditioned upon their deductibility for Federal income tax purposes.

3.7   Limitation on Salary Reduction Contributions and Matching Contributions
      and Prevention of Violation.

      (a)   The Average Actual Deferral Percentage for the group of Eligible
            Employees who are Highly Compensated Employees for the Plan Year
            shall not exceed the greater of:

            (1)   one hundred twenty-five percent (125%) of the Average Actual
                  Deferral Percentage for the group of all other Eligible
                  Employees who are Non-Highly Compensated Employees for the
                  preceding Plan Year; or

            (2)   the lesser of:

                  (A)   two hundred percent (200%) of the Average Actual
                        Deferral Percentage for the group of all other Eligible
                        Employees who are Non-Highly Compensated Employees for
                        the preceding Plan Year; or

                  (B)   two percent (2%) plus the Average Actual Deferral
                        Percentage for the group of all other Eligible Employees
                        who are Non-Highly Compensated Employees for the
                        preceding Plan Year.

                                      -20-
<PAGE>
      (b)   The Average Contribution Percentage for the group of Eligible
            Employees who are Highly Compensated Employees for the Plan Year
            shall not exceed the greater of:

            (1)   one hundred twenty-five percent (125%) of the Average
                  Contribution Percentage of the group of all other Eligible
                  Employees who are Non-Highly Compensated Employees for the
                  preceding Plan Year; or

            (2)   the lesser of:

                  (A)   two hundred percent (200%) of the Average Contribution
                        Percentage for the group of all other Eligible Employees
                        who are Non-Highly Compensated Employees for the
                        preceding Plan Year; or

                  (B)   two percent (2%) plus the Average Contribution
                        Percentage for the group of all other Eligible Employees
                        who are Non-Highly Compensated Employees for the
                        preceding Plan Year.

      (c)   To prevent the multiple use of the alternative method described in
            (a)(2) and (b)(2), above: the sum of the Average Actual Deferral
            Percentage and the Average Contribution Percentage for the group of
            Eligible Employees who are Highly Compensated Employees for the Plan
            Year shall not exceed the greater of:

            (1)   the sum of:

                                      -21-
<PAGE>
                  (A)   one hundred twenty-five percent (125%) of the greater of
                        the Average Actual Deferral Percentage or the Average
                        Contribution Percentage for the group of all other
                        Eligible Employees who are Non-Highly Compensated
                        Employees for the preceding Plan Year; plus

                  (B)   the lesser of:

                        (i)   two hundred percent (200%) of the lesser of the
                              Average Actual Deferral Percentage or the Average
                              Contribution Percentage for the group of all other
                              Eligible Employees who are Non-Highly Compensated
                              Employees for the preceding Plan Year; or

                        (ii)  two percent (2%) plus the lesser of the Average
                              Actual Deferral Percentage or the Average
                              Contribution Percentage for the group of all other
                              Eligible Employees who are Non-Highly Compensated
                              Employees for the preceding Plan Year; or

            (2)   the sum of:

                  (A)   one-hundred twenty-five percent (125%) of the lesser of
                        the Average Actual Deferral Percentage or the Average
                        Contribution Percentage for the group of all other
                        Eligible Employees who are Non-Highly Compensated
                        Employees for the preceding Plan Year; plus

                  (B)   the lesser of:

                                      -22-
<PAGE>
                        (i)   two hundred percent (200%) of the greater of the
                              Average Actual Deferral Percentage or the Average
                              Contribution Percentage for the group of all other
                              Eligible Employees who are Non-Highly Compensated
                              Employees for the preceding Plan Year; or

                        (ii)  two percent (2%) plus the greater of the Average
                              Actual Deferral Percentage or the Average
                              Contribution Percentage for the group of all other
                              Eligible Employees who are Non-Highly Compensated
                              Employees for the preceding Plan Year.

      (d)   If the Plan and any other plan(s) maintained by a Participating
            Company or an Affiliated Company are treated as a single plan for
            purposes of Section 401(a)(4) or Section 410(b) of the Code, the
            limitations in Subsections (a) through (c) of this Section shall be
            applied by treating the Plan and such other plan(s) as a single
            plan.

      (e)   The application of this Section shall satisfy Sections 401(k) and
            401(m) of the Code and regulations thereunder and such other
            requirements as may be prescribed by the Secretary of the Treasury.

      (f)   The Plan Administrator shall monitor the level of Participant's
            Salary Reduction Contributions and Matching Contributions. If the
            limits of this Section have been exceeded, corrective action shall
            be taken as set forth below.

      (g)   (1)   The Average Actual Deferral Percentage for the group of
                  Eligible Employees who are Highly Compensation Employees shall
                  be

                                      -23-
<PAGE>
                  reduced to the extent necessary to satisfy Subsection (a) of
                  this Section.

            (2)   The reduction shall be accomplished by reducing the Highly
                  Compensated Employees' Salary Reduction Contributions in order
                  of their Actual Deferral Percentages, beginning with the
                  Highly Compensated Employee(s) with the highest dollar amount
                  of Salary Reduction Contributions, until Subsection (a) of
                  this Section is satisfied.

            (3)   (A)   To the extent practicable, the Plan Administrator shall
                        prospectively limit a Highly Compensated Employee's
                        Salary Reduction Contributions to reduce his Actual
                        Deferral Percentage to the extent necessary to satisfy
                        Subsection (a) of this Section.

                  (B)   In addition, the remaining difference between a Highly
                        Compensated Employee's Actual Deferral Percentage and
                        the Highly Compensated Employee's adjusted maximum
                        Actual Deferral Percentage, at the Plan Administrator's
                        direction, shall be paid to the Highly Compensated
                        Eligible Employee, with earnings attributable thereto,
                        but not later than the end of the year immediately
                        following the close of the Plan Year for which the
                        Salary Reduction Contributions were made.

      (h)   (1)   The Average Contribution Percentage for the Highly Compensated
                  Employees shall be reduced to the extent necessary to satisfy
                  at least one of the tests in Subsection (b) of this Section.

            (2)   The reduction shall be accomplished by reducing the Highly
                  Compensated Employees' Matching Contributions under this

                                      -24-
<PAGE>
                  Plan in order of their Contribution Percentages, beginning
                  with the Highly Compensated Employee(s) with the highest
                  dollar amount of Matching Contributions, until Subsection (b)
                  of this Section is satisfied.

            (3)   Not later than the end of the Plan Year following the Plan
                  Year for which such contributions were made, the remaining
                  difference between a Highly Compensated Employee's
                  Contribution Percentage and the Highly Compensated Employee's
                  maximum permissible Contribution Percentage, with earnings
                  attributable thereto, at the Plan Administrator's direction,
                  shall be treated as a forfeiture of the Highly Compensated
                  Employee's Matching Contributions for the Plan Year to the
                  extent such Contributions are forfeitable (which forfeiture
                  shall be used to reduce future Matching Contributions), or
                  paid to the Highly Compensated Employee to the extent such
                  contributions are nonforfeitable.

      (i)   The Average Contribution Percentage and/or the Average Actual
            Deferral Percentage for the Highly Compensated Employees shall be
            reduced to the extent necessary to satisfy the test in Subsection
            (c) of this Section. The reduction shall be accomplished in the same
            manner as is set forth in Subsections (g) or (h) of this Section,
            whichever is appropriate, and shall be charged against the Highly
            Compensated Employees' Accounts in the following order of priority:

            (1)   Matching Contribution Accounts, and

            (2)   Salary Reduction Accounts;

            provided, however, that for any Participant who is also a
            participant in any other qualified retirement plan maintained by a
            Participating Company or any Affiliated Company under which the
            Participant

                                      -25-
<PAGE>
            makes employee contributions or elective deferrals or is credited
            with employer matching contributions for such year, the Plan
            Administrator shall coordinate corrective actions under this Plan
            and such other plan for the year.

      (j)   If the Plan and any other plan maintained by a Participating Company
            or an Affiliated Company are treated as a single plan pursuant to
            Subsection (e) of this Section, the Plan Administrator shall
            coordinate actions under this Plan and such other plan for the year.

3.8 Maximum Allocation. The provisions of this Section shall be construed to
comply with Section 415 of the Code.

      (a)   Notwithstanding anything in this Article to the contrary, in no
            event shall the sum of:

            (1)   any Matching Contributions, Salary Reduction Contributions and
                  other employer contributions;

            (2)   any forfeitures, and

            (3)   any employee contributions allocated for any Limitation Year
                  to any Participant (prior to any distribution of such amounts
                  pursuant to Section 3.1 or Section 3.7) under this and any
                  other defined contribution plan maintained by the
                  Participating Company or any 50% Affiliated Company,

            exceed the lesser of $30,000 (adjusted for increases in the
            cost-of-living in accordance with Section 415(d)(1) of the Code) or
            twenty-five percent (25%) of such Participant's Compensation (as
            defined in

                                      -26-
<PAGE>
            Section 3.8(e)) for the Limitation Year. For purposes of this
            Section 3.8, Limitation Year shall mean the Plan Year.

      (b)   If the amount otherwise allocable to the Account of a Participant
            would exceed the amount described in Subsection (a) of this Section
            as a result of the reallocation of forfeitures, a reasonable error
            in estimating the Participant's Compensation, a reasonable error in
            determining the amount of elective deferrals (within the meaning of
            Code Section 401(g)(3)) or such other circumstances as permitted by
            law, the Plan Administrator shall determine which portion, if any,
            of such excess amount is attributable to the Participant's Salary
            Reduction Contributions and/or Matching Contributions and the
            following rules shall apply in the following order:

            (1)   Amounts attributable to Matching Contributions shall be held
                  in a suspense account by the Trustee and shall be used in the
                  earliest Plan Year or Plan Years to reduce future Matching
                  Contributions to the Plan; amounts held in the suspense
                  account shall share in investment gains and losses of the
                  Fund.

            (2)   Amounts attributable to Salary Reduction Contributions shall
                  be distributed to the Participant.

      (c)   If, in any Limitation Year beginning prior to January 1, 2000, a
            Participant in this Plan is also a participant in one or more
            defined benefit plans maintained by the Participating Company or any
            50% Affiliated Company, the annual benefit referred to in Subsection
            (c)(1) below shall be reduced, if necessary, so that the sum of the
            fractions described in (1) and (2) below does not exceed 1.0 for
            such Limitation Year.

                                      -27-
<PAGE>
            (1)   Defined Benefit Fraction - a fraction, the numerator of which
                  is the Participant's projected annual benefit under all such
                  defined benefit pension plans determined as of the close of
                  the limitation years of such plans, and the denominator of
                  which is the lesser of: (A) 1.25 x $90,000 (or such other
                  dollar limitation in effect for the Limitation Year under
                  Section 415(b)(1)(A) of the Code); or (B) one hundred forty
                  percent (140%) of the Participant's highest average
                  Compensation over any three consecutive calendar years.

                  For the purpose of this Paragraph (1), "projected annual
                  benefit" means the annual benefit to which a Participant would
                  be entitled under the terms of a defined benefit plan if he
                  had continued employment until his normal retirement date
                  under such plan and if his compensation counted for the
                  purpose of such plan had continued at the same rate.

            (2)   Defined Contribution Fraction - a fraction, the numerator of
                  which is the sum of the annual additions to the Participant's
                  accounts under all defined contribution plans sponsored by the
                  Participating Company or any 50% Affiliated Company for all
                  limitation years, and the denominator which is the sum of the
                  lesser of the following amounts, determined for each of such
                  limitation years and for each prior limitation year of service
                  with a Participating Company or 50% Affiliated Company: (A)
                  1.25 x $30,000 (or such other dollar limitation in effect for
                  the Limitation Year under Section 415(c)(1)(A) of the Code);
                  or (B) thirty-five percent (35%) of the Participant's
                  Compensation for such limitation year.

      (d)   For purposes of this Section, "50% Affiliated Company" means an
            Affiliated

                                      -28-
<PAGE>
            Company, but determined with "more than 50%" substituted for the
            phrase "at least 80%" in Section 1563(a) of the Code.

      (e)   For purposes of this Section, "Compensation" means the Participant's
            wages, salary, fees for professional services, and other amounts
            received for personal services rendered in the course of employment
            with a Participating Company or an Affiliated Company with respect
            to such Limitation Year, including, but not limited to: commissions
            paid to salesmen, compensation for services on the basis of a
            percentage of profits, commissions on insurance premiums, tips,
            bonuses, taxable amounts received by the Participant through
            accident or health insurance for personal injury or sickness or from
            a self-insured medical expense reimbursement plan, moving expenses
            paid or reimbursed by a Participating Company or an Affiliated
            Company in excess of any amount deductible by the Participant, wages
            or payments in lieu of wages received on account of absence from
            work for permanent and total disability, the amount included in his
            taxable income as a result of the grant of a nonqualified stock
            option by a Participating Company or an Affiliated Company, the
            amount includible in his gross income as the result of an election
            described in Section 83(b) of the Code, and any amount which is
            contributed or deferred by a Participating Company or an Affiliated
            Company at the election of the Participant and which is not
            includable in the gross income of the Participant by reason of
            Sections 125, 132(f), 401(k) or 457 of the Code; and excluding:

            (1)   contributions made by an employer on his behalf to a qualified
                  plan to the extent that, before the application of Section 415
                  of the Code to that plan, such contributions are not
                  includible in his gross income for the year in which
                  contributed;

                                      -29-
<PAGE>
            (2)   employer contributions on his behalf to a simplified employee
                  pension plan;

            (3)   any distributions from a plan of deferred compensation, except
                  that any amounts received by him pursuant to an unfunded
                  non-qualified plan shall be included in the year that such
                  amounts are included in gross income;

            (4)   amounts realized from the exercise of a non-qualified stock
                  option or from stock or property which is currently taxable
                  under Section 83 of the Code;

            (5)   amounts realized from the sale, exchange, or other disposition
                  of stock acquired through the exercise of a qualified or
                  incentive stock option; and

            (6)   other amounts which receive special tax benefits, such as
                  premiums for group term life insurance to the extent not
                  includible in gross income, or contributions made by an
                  employer toward the purchase of an annuity contract described
                  in Section 403(b) of the Code.

3.9   Rollover Contributions.

      (a)   A Participant or an Eligible Employee (including an Employee who is
            not eligible to participate in this Plan because he has not
            satisfied the eligibility requirements of Section 2.1) may transfer,
            or have transferred directly to the Fund from any qualified
            retirement plan of a former employer, all or a portion of his
            interest in the distributing plan, except that:

                                      -30-
<PAGE>
            (1)   the interest being transferred shall not include assets from
                  any plan to the extent that the Plan Administrator determines
                  that such interest would impose upon this Plan requirements as
                  to form of distribution that would not otherwise apply
                  hereunder; and

            (2)   the interest being transferred shall not contain nondeductible
                  contributions made to the distributing plan by the Participant
                  or Eligible Employee unless the transfer to the Fund is
                  directly from the funding agent of the distributing plan.

      (b)   In addition, a Participant or an Eligible Employee who has
            established an individual retirement account to hold distributions
            received from qualified retirement plans of former employers may,
            with the consent of the Plan Administrator, transfer all of the
            assets of such individual retirement account to the Fund. Such
            individual retirement account shall not contain nondeductible
            contributions made by the Participant or Eligible Employee while he
            was a participant in the plans of his former employers.

      (c)   The distributions transferred by a Participant or an Eligible
            Employee from another qualified retirement plan or from an
            individual retirement account shall be credited to the Participant's
            or Eligible Employee's Rollover Account. A Participant or Employee
            Eligible shall be fully vested at all times in his Rollover Account.

      (d)   The Plan shall not accept a distribution from any other qualified
            retirement plan or from an individual retirement account unless the
            following conditions are met:

            (1)   the distribution being transferred must come directly from the
                  fiduciary of the plan of the former employer, or it must come
                  from the Participant or Eligible Employee within 60 days after
                  the

                                      -31-
<PAGE>
                  Participant or Eligible Employee receives a distribution from
                  such other qualified retirement plan or individual retirement
                  account;

            (2)   distributions from a plan for a self-employed person shall not
                  be transferred to this Plan, unless the transfer is directly
                  to the Fund from the funding agent of the distributing plan;

            (3)   the distribution being transferred will not cause the Plan to
                  be a direct or indirect transferee of a plan to which the
                  joint and survivor annuity requirements of Sections 401(a)(11)
                  and 417 of the Code apply; and

            (4)   the distribution being transferred will not cause the Plan, by
                  operation of Code Section 411(d)(6), to provide an optional
                  form of benefit payment that differs from the forms provided
                  in Article VI.

                                      -32-
<PAGE>
                       ARTICLE IV - PARTICIPANTS' ACCOUNTS

4.1 Accounts. All Contributions and earnings thereon may be invested in one
commingled Fund for the benefit of all Participants. However, in order that the
interest of each Participant may be accurately determined and computed, a
separate Account shall be maintained for each Participant. These Accounts shall
represent the Participants' individual interest in the Fund. All Contributions
shall be credited to Participants' Accounts as set forth in Article III.

4.2 Valuation. The value of each Investment Medium in the Fund shall be computed
by the Trustee as of the close of business on each Valuation Date on the basis
of the fair market value of the assets of the Fund.

4.3 Apportionment of Gain or Loss. The value of each Investment Medium in the
Fund shall be apportioned pro rata among the Participant's Accounts which are
invested in such Investment Medium at the current Valuation Date.

                                      -33-
<PAGE>
                               ARTICLE V - VESTING

5.1   Nonforfeitable Amounts.

      (a)   A Participant shall have a 100% nonforfeitable interest at all times
            in his Salary Reduction, Rollover Contribution and Voluntary Savings
            Accounts.

      (b)   A Participant shall be vested in his Matching Contribution and
            Discretionary Contribution Accounts based on his Years of Service in
            accordance with the following table:

<TABLE>
<CAPTION>
                      Years of Service          Vested Percentage
                      ----------------          -----------------
<S>                                             <C>
                        Less than 2                    0%
                              2                       20%
                              3                       40%
                              4                       60%
                              5                       80%
                          6 or more                  100%
</TABLE>

            A Participant also shall have a 100% nonforfeitable interest in his
            Matching Contribution and Discretionary Contribution Accounts upon
            the attainment of his Normal Retirement Age, Total Disability or
            upon his death prior to Separation from Service.

5.2 Period of Severance and Loss of Service. A Participant's Years of Service
shall be canceled if he incurs a Period of Severance before his Normal
Retirement Age and at a time when his vested percentage in his Matching
Contribution Account under Subsection 5.1(b) is zero, or he has no Matching
Contribution Account under the Plan.

                                      -34-
<PAGE>
5.3   Restoration of Service.

      (a)   The Years of Service of a Participant whose Years of Service have
            been canceled pursuant to Section 5.2 shall be restored to his
            credit if he thereafter completes a Year of Service at a time when a
            Period of Severance is less than the greater of (1) the number of
            Years of Service to his credit when the first such Separation from
            Service occurred, or (2) five.

      (b)   If any other Participant has had a five-year Period of Severance and
            subsequently becomes an Eligible Employee again, Years of Service
            after such five-year period shall not be taken into account in
            increasing the vested percentage of his Account as of his Separation
            from Service.

5.4   Forfeitures and Restoration of Forfeited Amounts upon Reemployment.

      (a)   The nonvested portion of a terminated Participant's Account shall
            become a forfeiture as of last day of the Plan Year in which he
            incurs a Separation from Service.

      (b)   Amounts forfeited from a Participant's Matching Contribution Account
            under Subsection (a) of this Section shall be used by the
            Participating Companies to reduce future Matching Contributions.

      (c)   If a Participant who has received a distribution whereby any part of
            his Account has been forfeited subsequently becomes an Eligible
            Employee again prior to incurring a five-year Period of Severance,
            the amount forfeited, if any, from his previous Matching
            Contribution Account or Discretionary Contribution Account under
            Subsection (a) shall be

                                      -35-
<PAGE>
            restored to his new Matching Contribution Account or Discretionary
            Contribution Account.

      (d)   If a Participant has had a five-year Period of Severance and
            subsequently becomes an Eligible Employee again, the amount
            forfeited under Subsection (a) of this Section shall not be restored
            to his Matching Contribution Account or Discretionary Contribution
            Account under any circumstances.

                                      -36-
<PAGE>
                           ARTICLE VI - DISTRIBUTIONS

6.1 General. The vested interest of each Participant in the Fund shall be
distributed in the manner, in the amount, and at the time provided in this
Article, except as provided in Article VII and except in the event of the
termination of the Plan. All distributions shall be made in the form of cash.

6.2 Normal Retirement. A Participant who has a Separation from Service on his
Normal Retirement Age shall have his Account paid to him in a single lump sum.

6.3 Early Retirement. A Participant who has a Separation from Service on his
Early Retirement Date may request to have his Account paid to him in a single
lump sum.

6.4 Late Retirement. A Participant who has a Separation from Service after his
Normal Retirement Age shall participate in the Plan on the same basis as other
Participants. When such a Participant has a Separation from Service, his Account
shall be paid to him in a single lump sum.

6.5 Death. If a Participant dies prior to his Annuity Starting Date, his vested
Account shall be paid to his Beneficiary in a single lump sum.

6.6 Total Disability.

      (a)   If a Participant who is an Employee suffers a Total Disability and
            has a Separation from Service, his Account shall be paid to him in a
            single lump sum following the determination of his Total Disability
            and his Separation from Service. If the value of his Account is
            $5,000 ($3,500 prior to January 1, 1998) or less, his Account shall
            not be paid to him until (1) he submits his written consent to such
            distribution not more than 90 days prior to the Annuity Starting
            Date or (2) he attains his Normal Retirement Date, or (3) he dies.

                                      -37-
<PAGE>
      (b)   The Plan Administrator shall provide to each such Participant a
            notice that he has the right to defer his Annuity Starting Date
            until the earlier of his Normal Retirement Age or his death. Such
            notice shall be furnished not less than 30 days nor more than 90
            days prior to any Annuity Starting Date that occurs prior to the
            earlier of his Normal Retirement Date or his death.

6.7 Valuation for Distribution. For the purposes of paying any vested Account
balance to a Participant or his beneficiaries under the provisions of this
Article, the value of the Fund and the amount of the Participant's interest
shall be determined in accordance with the provisions of Article VI as of the
Valuation Date coincident with or immediately following the later of the date of
the Participant's Separation from Service or the date the properly executed
distribution request forms are processed for payment by the Plan Administrator.

6.8 Payment of Benefits. The value of a Participant's vested Account may also be
paid in installment payments over a period not to exceed 120 months, with the
amount of each installment to be equal to the value of the vested Participant's
interest in the Plan on the Annuity Starting Date, multiplied by a fraction, the
numerator of which is one and the denominator of which is the number of
remaining installments due (including the installment in question).

6.9 Timing of Distribution.

      (a)   Except as provided in Subsections (b) through (d) of this Section
            and Section 6.11, a Participant's benefit shall be paid as soon as
            practicable after the later of the date of the Participant's
            Separation from Service or the date the properly executed
            distribution request forms are processed for payment by the Plan
            Administrator.

      (b)   A Participant's Annuity Starting Date shall be no later than the
            60th day after the close of the Plan Year in which the Participant
            attains his

                                      -38-
<PAGE>
            Normal Retirement Age or has a Separation from Service, whichever
            occurs last.

      (c)   If a Participant dies before his Annuity Starting Date, his entire
            Account under the Plan shall be distributed to his Beneficiary as
            soon as administratively practicable after the Plan Administrator
            processes a request for the payment of the benefit.

      (d)   Notwithstanding anything in the Plan to the contrary, the form and
            the timing of all distributions under the Plan shall be in
            accordance with regulations issued by the Department of the Treasury
            under Section 401(a)(9) of the Code, including the incidental death
            benefit requirements of Section 401(a)(9)(G) of the Code, the
            provision of which are incorporated herein by reference.
            Notwithstanding anything in the Plan to the contrary, with respect
            to distributions under the Plan made on or after January 1, 2001,
            the Plan will apply the minimum distribution requirements of Section
            401(a)(9) of the Code in accordance with the regulations under
            Section 401(a)(9) of the Code that were proposed on January 17, 2001
            (the 2001 Proposed Regulations). Minimum distributions under the
            Plan shall continue to be made in accordance with the 2001 Proposed
            Regulations until the calendar year beginning before the effective
            date of the final regulations under Section 401(a)(9) of the Code or
            such other date as may be published by the Internal Revenue Service.

            A Participant who has not terminated service with a Participating
            Company shall be required to withdraw in any Plan Year only the
            minimum amount required to satisfy section 401(a)(9) of the Code
            based on the life expectancy or, if elected by the Participant, the
            joint life expectancies of the Participant and his Beneficiary. The
            Participant will not be offered the option to have his life
            expectancy recalculated under the rule of Section 401(a)(9) of the
            Code.

                                      -39-
<PAGE>
6.10 Beneficiary Designation.

      (a)   A Participant may designate the Beneficiary or Beneficiaries who
            shall receive his Account balance, upon his death. Such designation
            shall be made by executing and filing with the Plan Administrator a
            written instrument in such form as may be prescribed by the Plan
            Administrator for that purpose. Except as otherwise provided in this
            Section, the Participant may also revoke or change, at any time and
            from time to time, any Beneficiary designations previously made.
            Such revocations and/or changes shall be made by executing and
            filing with the Plan Administrator a written instrument in such form
            as may be prescribed by the Plan Administrator for that purpose. If
            a Participant names a trust as Beneficiary, a change in the identity
            of the trustees or in the instrument governing such trust shall not
            be deemed a change in Beneficiary.

      (b)   No designation, revocation, or change of Beneficiaries shall be
            valid and effective unless and until filed with the Plan
            Administrator.

      (c)   A Participant who does not establish to the satisfaction of the Plan
            Administrator that he has no Spouse may not designate someone other
            than his Spouse to be his Beneficiary unless:

            (1)   (A)   such Spouse (or the Spouse's legal guardian if the
                        Spouse is legally incompetent) executes a written
                        instrument whereby such Spouse consents not to receive
                        such benefit and consents either:

                                      -40-
<PAGE>
                        (i)   to the specific Beneficiary or Beneficiaries
                              designated by the Participant; or

                        (ii)  to the Participant's right to designate any
                              Beneficiary without further consent by the Spouse;

                  (B)   such instrument acknowledges the effect of the election
                        to which the Spouse's consent is being given; and

                  (C)   such instrument is witnessed by a Plan representative or
                        notary public; or

            (2)   the Participant:

                  (A)   establishes to the satisfaction of the Plan
                        Administrator that his Spouse cannot be located; or

                  (B)   furnishes a court order to the Plan Administrator
                        establishing that the Participant is legally separated
                        or has been abandoned (within the meaning of local law),
                        unless a qualified domestic relations order (as defined
                        in Section 414(p) of the Code) pertaining to such
                        Participant provides that the Spouse's consent must be
                        obtained; or

            (3)   the Spouse has previously given consent in accordance with
                  this Subsection and consented to the Participant's right to
                  designate any Beneficiary without further consent by the
                  Spouse. The consent of a Spouse in accordance with this
                  Subsection (c) shall not be effective with respect to other
                  spouses of the Participant prior to the Participant's Annuity
                  Starting Date, and an election to which Paragraph (2) of this
                  Subsection (c) applies shall become

                                      -41-
<PAGE>
                  void if the circumstances causing the consent of the Spouse
                  not to be required no longer exist prior to the Participant's
                  Annuity Starting Date.

      (d)   If a Participant has no Beneficiary under Subsection (a) of this
            Section, or if the Participant's Beneficiary(ies) predecease the
            Participant, or if the Beneficiary(ies) cannot be located by the
            Plan Administrator, the interest of the deceased Participant shall
            be paid in the following order of priority: first, to the
            Participant's children, if any; and second, to the Participant's
            estate.

6.11 Treatment of Terminated Vested Participant

      (a)   In the case of a Participant who has a Separation from Service
            (other than by reason of retirement, death, or Total Disability) and
            who has a nonforfeitable interest in his Account which is $5,000
            ($3,500 prior to January 1, 1998) or less, the nonforfeitable
            interest of such Participant, valued in accordance with Article IV,
            shall be paid to such Participant in a single lump sum as soon as
            practicable following 60 days after his Separation from Service.

      (b)   (1) In case of a Participant who has a Separation from Service
            (other than by reason of retirement under Article VI, death, or
            Total Disability) and who has a nonforfeitable interest in his
            Account which is more than $5,000 ($3,500 prior to January 1, 1998),
            the nonforfeitable interest of such Participant, valued in
            accordance with Article IV, shall be paid to such Participant as
            soon as practicable following the Valuation Date coincident with or
            next following his Separation from Service, provided the Participant
            submits his written consent to the distribution not more than 90
            days prior to the Annuity Starting Date.

                                      -42-
<PAGE>
            A Participant may elect in writing (not more than 90 days prior to
            the Annuity Starting Date) to have his nonforfeitable interest paid
            to him any time after his Separation from Service.

            Unless the Participant elects otherwise, distribution of benefits
            will begin no later than the 60th day after the latest of the close
            of the Plan Year in which:

                  (A)   the Participant attains age 65;

                  (B)   occurs the 10th anniversary of the year in which the
                        Participant commenced participation in the Plan; or

                  (C)   the Participant terminates service with the
                        Participating Companies and Affiliated Companies.

            Notwithstanding the foregoing, the failure of a Participant to
            consent to a distribution while a benefit is immediately
            distributable shall be deemed to be an election to defer
            commencement of payment of any benefit sufficient to satisfy this
            Section.

            (2) The Plan Administrator shall notify a Participant that he has
            the right to defer distribution until the earlier of what would have
            been his Normal Retirement date or his death, prior to obtaining his
            written consent. Such notice shall be furnished not less than 30
            days nor more than 90 days prior to the Annuity Starting Date that
            occurs prior to what would have been the Participant's Normal
            Retirement Age, or his death if earlier.

6.12 Direct Rollover.

      (a)   Effective January 1, 1993, notwithstanding any provisions of the
            Plan to the contrary, a Participant, Spouse or former spouse who is
            the alternate payee under a qualified domestic relations order, as
            defined in Section 414(p) of the Code, may elect pursuant to the
            procedures established by the Plan Administrator not less than 30
            days prior to the date of the

                                      -43-
<PAGE>
            distribution to have all or a portion, if applicable, of an
            "eligible rollover distribution" within the meaning of Code Section
            402(c)(4), paid directly to (1) an individual retirement account
            described in Code Section 408(a); (2) an individual retirement
            annuity described in Code Section 408(b); (3) an annuity plan
            described in Code Section 403(a); or (4) a qualified trust described
            in Code Section 401(a) that accepts such "eligible rollover
            distribution." However, in the case of an "eligible rollover
            distribution" to a Spouse, payment may only be made to an individual
            retirement account or individual retirement annuity.

      (b)   A distribution to which this Section 6.12 applies, may commence less
            than 30 days after the notice required under section 1.411(a)-11(c)
            of Code Regulation is given, provided that

            (1)   the Plan Administrator clearly informs the Participant that he
                  has the right to a period of a least 30 days after receiving
                  the notice to consider the decision of whether or not to elect
                  a distribution.

            (2)   the Participant, after receiving the notice, affirmatively
                  elects a distribution.

                                      -44-
<PAGE>
                            ARTICLE VII - WITHDRAWALS

7.1 Non-Hardship In-Service Withdrawals. The following withdrawals shall be
governed by the provisions of Sections 7.3 through 7.7 of the Plan:

      (a)   A Participant who has a Voluntary Savings Account may withdraw such
            subaccount by submitting a written request to the Plan Administrator
            specifying the amount to be withdrawn 15 days before the date such
            withdrawal will be made.

      (b)   A Participant may withdraw any portion of his vested Account balance
            upon his attainment of Age 59-1/2.

      (c)   A Participant may withdraw of any portion of his Rollover
            Contribution Account.

7.2 Hardship Withdrawals Subject to Code Section 401(k).

      (a)   A Participant may apply in writing to the Plan Administrator for a
            hardship withdrawal from his Matching Contribution Account if his
            vested percentage is 100%, Salary Reduction Contribution Account or
            Rollover Contribution Account at any time. The withdrawal must
            satisfy the criteria set forth below, and may be approved or
            disapproved at the discretion of the Plan Administrator. Hardship
            withdrawals from a Participant's Salary Reduction Contribution
            Account are not permitted from income on a Participant's Salary
            Reduction Contributions, except to the extent of earnings on or
            before December 31, 1988, nor are such withdrawals permitted to
            include Employer Contributions which were treated as pre-tax
            contributions as a result of the application of the special
            nondiscrimination requirements under rules prescribed by the
            Secretary of the Treasury for employer contributions that are used
            to

                                      -45-
<PAGE>
            meet the vesting and withdrawal restrictions for Salary Reduction
            Contributions. The amount withdrawn shall be governed by the
            provisions of Sections 7.3 through 7.7.

      (b)   A withdrawal under this Section shall be permitted only if the Plan
            Administrator finds that:

            (1)   it is made on account of immediate and heavy financial need
                  (as defined in Subsection (c) of this Section) of the
                  Participant; and

            (2)   it is necessary (as defined in Subsection (d) of this Section)
                  to satisfy such immediate and heavy financial need.

      (c)   A Participant shall be deemed to have an immediate and heavy
            financial need if the Participant requests distribution on account
            of:

            (1)   medical expenses described in Section 213(d) of the Code and
                  incurred by the Participant, his Spouse, or any of the
                  Participant's dependents (as defined in Section 152 of the
                  Code);

            (2)   costs directly related to the purchase (excluding mortgage
                  payments) of a principal residence of the Participant;

            (3)   the payment of tuition, related expenses and room and board
                  for the next 12-months of post-secondary education for the
                  Participant, his Spouse, children, or dependents;

            (4)   payments necessary to prevent the eviction of the Participant
                  from his principal residence or foreclosure on the mortgage of
                  his principal residence; or

            (5)   such other circumstances or events as may be prescribed by the
                  Secretary of the Treasury or his delegate.

                                      -46-
<PAGE>
      (d) A withdrawal shall be deemed to be necessary to satisfy an immediate
      and heavy financial need if:

            (1)   the amount of the withdrawal does not exceed the amount of the
                  Participant's immediate and heavy financial need and may
                  include any amounts necessary to pay any federal, state or
                  local income taxes or penalties reasonably anticipated to
                  result from such withdrawal;

            (2)   the Participant has obtained all currently permissible
                  distributions (other than hardship distributions) and
                  non-taxable loans, if any, under this and all other plans
                  maintained by the Participating Companies and all Affiliated
                  Companies; and

            (3)   the Participant is not permitted to make Salary Reduction
                  Contributions or elective contributions and employee
                  contribution deferrals (other than mandatory contributions
                  under a defined benefit plan) under any plan maintained by the
                  Participating Company or any Affiliated Company for a period
                  of 12 months commencing on the date of his receipt of the
                  withdrawal; and

            (4)   in the calendar year next following the calendar year of a
                  withdrawal under this Section by a Participant, the
                  Participant is not permitted to make Salary Reduction
                  Contributions under this Plan and elective deferrals under any
                  other qualified retirement plan maintained by the
                  Participating Company or any Affiliated Company in excess of:
                  (A) the dollar amount described in Subsection (c) of Section
                  3.1 for such year, minus (B) the total Salary Reduction
                  Contributions under this Plan and elective deferrals under
                  such other plan made by the Participant during the calendar
                  year of the withdrawal.

                                      -47-
<PAGE>
      (e)   If a Participant withdraws any amount from his Salary Reduction
            Account, or withdraws any elective deferrals under any other
            qualified retirement plan maintained by the Participating Company or
            any Affiliated Company, which other plan conditions such withdrawal
            upon the Participant's being subject to rules similar to those
            stated in this Paragraph (e), such Participant:

            (1)   may not make Salary Reduction Contributions under this Plan
                  for a period of 12-months commencing on the date of his
                  receipt of the withdrawal; and

            (2)   in the calendar year next following the calendar year of such
                  withdrawal, may not make Salary Reduction Contributions in
                  excess of: (A) the dollar amount described in Subsection (c)
                  of Section 3.1 for such year, minus (B) the total Salary
                  Reduction Contributions under this Plan and elective deferrals
                  under any other qualified plan made by the Participant during
                  the calendar year of the withdrawal.

7.3 Amount and Payment of Withdrawals. The amount of any withdrawal will be
determined on the basis of the value of the Participant's Account as of the
Valuation Date coincident with or immediately preceding the date of the
withdrawal. The minimum amount that may be withdrawn under Section 7.2 is five
hundred ($500) dollars.

7.4 Withdrawals Not Subject to Replacement. A Participant may not repay any
portion of his Account withdrawn under this Plan.

7.5 Investment Medium to be Charged with Withdrawal. Unless otherwise elected by
the Participant, the withdrawal will be made out of the Participant's interest
in the various Investment Media in proportion to the Participant's share in such
Investment Media.

                                      -48-
<PAGE>
7.6 Order of Withdrawals. Withdrawals from the Plan shall be charged against the
Participant's Account in the following order: first from the Voluntary Savings
Account, if any; second from the Rollover Contribution Account, if any; third
from the Matching Contribution Account, if any; and fourth from the Salary
Reduction Contribution Account, if any. The nonforfeitable balance in each
Account must be reduced to zero before the Participant may make a withdrawal
from the next Account in sequence.

7.7 Timing of Withdrawals. A Participant may make only two hardship withdrawals,
pursuant to Section 7.2, in any Plan Year or 12-month period and only one
withdrawal in any Plan Year or 12-month period pursuant to Sections 7.1(a), (b)
and (c).

                                      -49-
<PAGE>
                      ARTICLE VIII - LOANS TO PARTICIPANTS

8.1 Loan Application. Each Participant shall be eligible to make an application
for a loan from the Plan. All applications shall be made to the Plan
Administrator on forms which it prescribes, and the Plan Administrator shall
rule upon such applications in a uniform and nondiscriminatory manner in
accordance with the rules and guidelines set forth in this Article.

8.2 Loan Approval. No more than one application for a loan shall be approved per
Participant during any Plan Year. In no event shall a Participant be permitted
to have more than one loan from this Plan outstanding at any time.

8.3 Amount of Loan.

      (a)   Subject to the limits on loan amounts in Subsections (b) and (c)
            below, a Participant may borrow from the subaccounts in his Account
            in the following order:

            (1)   the Voluntary Savings Account,

            (2)   the Salary Reduction Contribution Account,

            (3)   the Rollover Contribution Account,

            (4)   the Matching Contribution Account.

      (b)   The minimum loan amount shall be $1,000.00.

      (c)   The total amount of a Participant's outstanding loans under this
            Plan and all other plans qualified under Section 401(a) of the Code
            which are sponsored by the Participating Company or any Affiliated
            Company

                                      -50-
<PAGE>
            shall not exceed the lesser of (1) $50,000, reduced by the excess of
            the highest outstanding loan balance during the 12-months before the
            new loan is made over the outstanding loan balance on the date of
            the new loan, or (2) fifty percent (50%) of the value of the
            Participant's vested interest in the subaccounts listed in (a).

8.4   Terms of Loan.

      (a)   Each loan shall be evidenced by the Participant's execution of a
            personal installment note on such form as shall be supplied by the
            Plan Administrator. Each such note shall specify the period of
            repayment, which shall be no longer than 60 months from the date on
            which the loan is distributed, except that in the event of a
            purchase of a primary residence, the period may be up to 25 years.
            Each note shall also specify the interest rate, which shall be equal
            to (1) the rate a banking institution charges its most creditworthy
            customers as of the first day of the calendar month in which the
            completed loan application is received by the Plan Administrator,
            plus (2) one percentage point. All loans from the Plan shall be
            nonrenewable.

      (b)   All loans shall be repaid in equal installments through payroll
            deductions or in such other manner as the Plan Administrator may
            determine. A Participant may repay the outstanding balance of any
            loan in one lump sum at any time by notifying the Plan Administrator
            of his or her intent to do so and by forwarding to the Plan
            Administrator payment in full of the then outstanding balance, plus
            interest accrued to the date of payment. The amount of principal and
            interest repaid by a Participant shall be credited to a
            Participant's Account as each repayment is made.

      (c)   In the event of

            (1)   the death of a Participant,

                                      -51-
<PAGE>
            (2)   the termination of the Participant's employment with the
                  Participating Company and its affiliates for any reason, or

            (3)   the discontinuance of a Participant's Compensation before a
                  loan is repaid in full,

      the unpaid balance thereof, with interest due thereon, shall become due
      and payable. The Trustee shall satisfy the indebtedness from the amount of
      the Participant's vested interest in his Account before making any
      payments otherwise due hereunder to the Participant or his Beneficiary.

8.5   Loan Fees.

      (a)   The Administrator shall assess a one-time loan origination fee,
            payable in cash at the time the funds are distributed or charged
            against the Account of a Participant who makes a loan from the Plan.

      (b)   The amount of the loan origination fee shall be set by the Plan
            Administrator as of the beginning of each Plan Year, and shall
            remain in effect throughout such Plan Year. Fees shall be specified
            in flat dollar amounts, and shall not vary according to the amount
            of the loan.

8.6 Suspension of Repayments. Loan repayments will be suspended under this Plan
as permitted under Section 414(u)(4) of the Code.

8.7 Additional Rules. The Plan Administrator may establish additional rules
relating to Participant loans under the Plan, which rules shall be applied on a
uniform and nondiscriminatory basis.

                                      -52-
<PAGE>
                        ARTICLE IX - PLAN ADMINISTRATION

9.1 Plan Administrator. The Company shall be the Plan Administrator for purposes
of ERISA and for purposes of satisfying any requirement imposed now or in the
future through Federal or state legislation to report and disclose to any
Federal or state department or agency, or to any Participant, Spouse or
Beneficiary, any information respecting the establishment or maintenance of this
Plan.

9.2 Appointment. The Company shall appoint an Administrator which shall be an
individual or a committee of three (3) or more persons to perform the duties as
Plan Administrator. All references to Plan Administrator in this Plan also
include Administrator. Any individual, including but not limited to Employees
and Participants, may be appointed to be an Administrator.

9.3 Term and Compensation. The Administrator as appointed in Section 9.2 shall
serve until his resignation or dismissal by the Company. Vacancies shall be
filled in the same manner as the original appointments. To resign, the
Administrator shall give written notice which shall be effective on the earlier
of the appointment of his successor or the passing of thirty (30) days after
such notice is mailed or personally delivered to the Company. The Administrator
shall serve as such without compensation.

9.4 Claims Review.

      (a)   The Plan Administrator shall interpret this Plan and shall make all
            determinations with regard to the administration and application of
            this Plan. All such determinations shall be final, conclusive and
            binding except to the extent that they are appealed with regard to
            benefit claims under the following procedure. In the event that the
            claim of any person to all or any part of any payment or benefit
            under this Plan shall be denied, the Plan Administrator shall
            provide to the claimant, within

                                      -53-
<PAGE>
            sixty (60) days after receipt of such claim, a written notice
            setting forth, in a manner calculated to be understood by the
            claimant:

            (1)   the specific reason or reasons for the denial;

            (2)   specific references to the pertinent Plan provision or
                  provisions on which the denial is based;

            (3)   a description of any additional material or information
                  necessary for the claimant to perfect the claim and an
                  explanation as to why such material or information is
                  necessary; and

            (4)   an explanation of the Plan's claims procedure.

      (b)   Within sixty (60) days after receipt of the material described in
            Section 9.4(a), the claimant or his duly authorized representative
            shall have a reasonable opportunity to appeal the claim denial to
            the Plan Administrator for a full and fair review. The claimant or
            his duly authorized representative may:

            (1)   request a review upon written notice to the Plan
                  Administrator;

            (2)   review pertinent documents; and

            (3)   submit issues and comments in writing.

      (c)   Not later than sixty (60) days after receipt of a request for
            review, a decision by the Plan Administrator shall be made unless
            special circumstances require an extension of time for processing,
            in which event a decision shall be rendered as soon as possible, but
            in no event later than one hundred twenty (120) days after such
            receipt. The Plan

                                      -54-
<PAGE>
            Administrator shall notify the Participant in writing of any such
            extension of time before such extension begins.

      (d)   The Plan Administrator's decision on review shall be written and
            shall include specific reasons for the decision, written in a manner
            calculated to be understood by the claimant, with specific
            references to the pertinent Plan provision or provisions on which
            the decision is based; provided, however, if a written decision is
            not provided within the period described in Section 9.4(c), the
            claim shall be deemed to have been denied.

9.5 Plan Administrator Actions. Except as otherwise specifically provided in the
Plan, every decision and action of a committee acting as Plan Administrator
shall be by a majority vote of the committee or without a formal meeting by the
written consent of a majority of the members of the committee then in office.
The committee shall select a Secretary and any other officers deemed necessary
who shall be authorized to bind the Plan Administrator by their signatures, and
shall adopt rules governing its procedures consistent with the terms of this
Plan. The committee shall keep a permanent record of its meetings and actions.

9.6 Investment Manager. All contributions so received together with the income
therefrom shall be managed, invested and reinvested by the Trustee, subject,
however, to the right of the Company to appoint and employ an Investment Manager
or Managers, to manage and/or invest and reinvest the Trust Fund, or any part
thereof, in which event the Investment Manager shall be certified as such to the
Trustee by the Company and the Trustee shall not be liable for the acts or
omissions of such Investment Manager or Managers or be under any obligation to
manage or invest the assets of the Trust Fund which are subject to management by
such Investment Manager or Managers. An authorized officer of any such
Investment Manager shall certify in writing to the Trustee the names of all
persons who shall act on behalf of the Investment Manager with respect to the
Trust Fund, and the Trustee may rely thereon in its dealings with such
Investment Manager. Where

                                      -55-
<PAGE>
appropriate, references in this Plan to Trustee may be interpreted to include
any Investment Manager appointed under this Section.

9.7 Benefit Payment Directions. The Plan Administrator shall direct the Trustee
or shall cause the Trustee to be directed in writing to make benefit payments
from the Trust Fund to Participants, Spouses or Beneficiaries who qualify for
such payments under the Plan. Such written order to the Trustee shall specify
the name of each such recipient, his address, his Social Security number, and
the amount and frequency of such payments.

9.8 Nondiscrimination. The Plan Administrator shall act and shall direct the
Trustee to act or cause such action with respect to any Plan benefits or any
other matter under the powers of the Plan Administrator under this Plan in a
uniform and nondiscriminatory manner toward all Participants and Employees under
substantially similar sets of facts and shall not permit discrimination in favor
of any officers, owners or Highly Compensated Employees of the Participating
Companies.

9.9 Advisors. The Plan Administrator may employ such counsel (who may be counsel
for the Company), consultants, accountants, and other individuals as it shall
deem advisable. All costs and expenses of the Plan Administrator and the fees of
legal counsel, consultants, accounts, and other agents shall be paid by the
Participating Companies, or the Participating Companies shall cause such costs
and expenses to be paid by the Trustee out of the Trust Fund as provided in
Section 10.6.

9.10 Records and Reports. The Plan Administrator shall keep all records relating
to Participants (including former Participants) and obtain annual reports from
the Trustee and any Investment Manager and collect from the Trustee and any such
Investment Manager and other sources any such records as are necessary for
proper operation of the Plan. The Plan Administrator shall make an annual report
of the assets and liabilities of the Plan and a brief description of the Plan's
operation for the immediately preceding Plan Year to the Participating Companies
and shall make such report and any other such records available to the
Participating Companies, or any

                                      -56-
<PAGE>
Participant, Spouse or Beneficiary for examination during business hours except
that a Participant, Spouse or Beneficiary shall examine only such records as
pertain exclusively to the examining Participant, Spouse or Beneficiary and the
Plan and Trust Agreement as currently in effect or hereafter amended.

9.11 Indemnification. The Company shall indemnify and hold harmless the Plan
Administrator, any member thereof and any Employee who may act on behalf of the
Company in the administration of this Plan from and against any liability, loss,
cost or expense (including reasonable attorneys' fees) incurred at any time as a
result of or in connection with any claims, demands, actions or causes of action
of any Participants, any person claiming through or under any of them, or any
other person, party or authority claiming to have an interest in this Plan or
Trust Fund or standing to act for any persons or groups having an interest in
this Plan or Trust Fund, for or on account of, any of the acts or omissions (or
alleged acts or omissions) of the Plan Administrator, any member thereof or any
such employee, except to the extent resulting from such person's willful
misconduct.

9.12 Power and Duties of the Plan Administrator. The Plan Administrator shall
have absolute discretionary authority to interpret this Plan and make
determinations as to eligibility for benefits, or construe any other terms of
the Plan. Benefits under this Plan shall be paid only if the Plan Administrator
decides in his discretion the claimant is entitled to them. The Plan
Administrator shall supervise the administration and enforcement of the Plan
according to the terms and provisions of this Plan and shall have all powers
necessary to accomplish these purposes, including, without limitation and in
addition to any other powers described in this Article 9, the right, power,
authority and duty:

      (a)   to make rules, regulations and bylaws for the administration of the
            Plan which are not inconsistent with the terms and provisions of
            this Plan, provided such rules, regulations and bylaws are evidenced
            in writing and copies thereof are delivered to the Trustee and to
            the Company;

                                      -57-
<PAGE>
      (b)   to construe all terms, provisions, conditions and limitations of the
            Plan (in all cases, the construction necessary for the Plan to
            qualify under the applicable provisions of the Code shall control);

      (c)   to correct any defect or supply any omission or reconcile any
            inconsistency that may appear in the Plan, in such manner and to
            such extent as it shall deem expedient to carry the Plan into effect
            for the greatest benefit of all interested parties;

      (d)   to determine all questions relating to eligibility;

      (e)   to determine the amount, manner and time of payment of any Plan
            benefits and to prescribe procedures to be followed by distributee
            in obtaining benefits;

      (f)   to prepare, file and distribute, in such manner as the Plan
            Administrator determines to be appropriate, such information and
            material as is required by the reporting and disclosure requirements
            of ERISA;

      (g)   to make a determination as to the right of any person to a benefit
            under the Plan; I (h) to receive and review reports from the Trustee
            and any Investment Manager as to the financial condition of the
            Trust Fund including its receipts and disbursements; and

      (i)   to delegate, in its sole discretion, any of its powers or duties to
            subcommittees, task forces or study groups at such times in such
            manner as it shall deem expedient to administer and enforce the Plan
            in a uniform and non-discriminatory manner for the benefit of all
            interested parties.

                                      -58-
<PAGE>
9.13 Participating Company to Supply Information. The Participating Companies
shall supply full and timely information to the Plan Administrator relating to
the Compensation of all Participants, their ages, their retirement, death or
other cause for termination of employment and such other pertinent facts as the
Plan Administrator may require. The Participating Companies also shall supply
such information to the Trustee and every Investment Manager as necessary for
the Trustee and each such Investment Manager to carry out its duties. When
making a determination in connection with the Plan, the Plan Administrator shall
be entitled to rely upon information furnished by the Participating Companies;
provided the Plan Administrator shall resolve any factual dispute under this
Plan by giving weight to all information available to him.

9.14 Self-Interest. Neither the Plan Administrator nor any member of the
committee, if any, shall have any right to vote or decide upon any matter
related directly or indirectly to him or any right of his to claim any benefit
under the Plan. In any case in which a committee member is so disqualified to
act, and the remaining members cannot agree, the Participating Company shall
appoint a temporary substitute member to exercise all the powers of the
disqualified member concerning the matter in which he is disqualified.

                                      -59-
<PAGE>
                              ARTICLE X - THE FUND

10.1 Designation of Trustee. The Company, by appropriate resolution of its Board
of Directors, shall name and designate a Trustee and shall enter into a Trust
Agreement. The Company shall have the power, by appropriate resolution of its
Board of Directors, to amend the Trust Agreement, remove the Trustee, and
designate a successor Trustee, as provided in the Trust Agreement. All of the
assets of the Plan shall be held by the Trustee for use in accordance with the
Plan.

10.2 Exclusive Benefit. Prior to the satisfaction of all liabilities under the
Plan in the event of termination of the Plan, no part of the corpus or income of
the Fund shall be used for or diverted to purposes other than for the exclusive
benefit of Participants and their Beneficiaries or for administrative expenses
not otherwise paid by the Participating Companies, except as expressly provided
in this Plan and in the Trust Agreement.

10.3 No Interest in Fund. No person shall have any interest in or right to any
part of the assets or income of the Fund, except to the extent expressly
provided in this Plan and in the Trust Agreement.

10.4 Trustee. The Trustee shall be the named fiduciary with respect to
management and control of Plan assets held by it and shall have exclusive and
sole responsibility for the custody and investment thereof in accordance with
the Trust Agreement.

10.5 Investments.

      (a)   The Trustee shall invest Salary Reduction Contribution Accounts,
            Voluntary Savings Accounts, Matching Contribution Accounts and
            Rollover Contribution Accounts paid to it and income thereon in such
            Investment Media as each Participant may select from among the
            Investment Media established by the Plan Administrator, subject to
            the

                                      -60-
<PAGE>
            provisions of Section 10.5(c). Such investments acquired in the
            manner prescribed by the Plan shall be held by or for the Trustee.

      (b)   A Participant shall select one or more of the Investment Media in
            which his Account shall be invested, except as provided in
            Subsection (c), and the percentage thereof (in multiples of 1%) that
            shall be invested in each Investment Medium selected, in accordance
            with the rules prescribed by the Plan Administrator.

      (c)   Matching Contributions shall be invested in Company Stock until such
            time as the Participant may transfer all or portion of Company Stock
            to one or more Investment Media in accordance with rules prescribed
            by the Plan Administrator.

      (d)   Except as provided in Subsection (c), a Participant may transfer,
            effective as of the following Valuation Date, such portion of the
            value of his interest in any Investment Medium to another Investment
            Medium. A Participant may change his selection of the Investment
            Media in which subsequent contributions to his Accounts shall be
            invested, effective as of the following Valuation Date. Such
            investment changes shall be made via a toll-free number or internet
            website provided to Participants by the Plan Administrator for such
            purpose.

      (e)   The amounts contributed by all Participants to each Investment
            Medium shall be commingled for investment purposes.

10.6 Fund. The contributions deposited by the Participating Companies in the
Fund shall constitute a fund held for the benefit of Participants and their
eligible Beneficiaries under and in accordance with this Plan. No part of the
principal or income of the Fund shall be used for, or diverted to, purposes
other than for the exclusive benefit of such Participants and their eligible
Beneficiaries (including necessary administrative costs); provided, that in the
case of a contribution made by the Participating Company as a mistake of fact,
or for which a tax deduction is

                                      -61-
<PAGE>
disallowed, in whole or in part, by the Internal Revenue Service, or which is
conditioned upon the initial qualification of the Plan under Section 401(a) of
the Code and such initial qualification cannot be obtained, the Participating
Company shall be entitled to a refund of said contributions, subject to
investment loss, but not investment gain. Any such refund of contributions
described in this Section must be made within one year after payment of a
contribution made as a mistake of fact, or within one year after disallowance of
the tax deduction, to the extent of such disallowance, or within one year of the
date on which the initial qualification of the Plan is denied by the Internal
Revenue Service, as the case may be.

10.7 Qualifying Employer Securities. The Trustee shall be empowered to acquire
and hold Company Stock in an amount sufficient to invest any Matching
Contributions made to the Plan pursuant to Section 3.5.

                                      -62-
<PAGE>
                ARTICLE XI - AMENDMENT OR TERMINATION OF THE PLAN

11.1  Power of Amendment and Termination.

      (a)   It is the intention of each Participating Company that this Plan
            will be permanent. However, each Participating Company reserves the
            right to terminate its participation in this Plan at any time by
            action of its board of directors or other governing body.
            Furthermore, the Company reserves the power to amend or terminate
            the Plan at any time by action of the Board of Directors.

      (b)   Each amendment to the Plan shall be binding on each Participating
            Company. Any amendment or termination of the Plan shall become
            effective as of the date designated by the Board of Directors.
            Except as expressly provided elsewhere in the Plan, prior to the
            satisfaction of all liabilities with respect to the benefits
            provided under this Plan, no amendment or termination shall cause
            any part of the monies contributed hereunder to revert to the
            Participating Companies or to be diverted to any purpose other than
            for the exclusive benefit of Participants and their beneficiaries.
            Upon termination or partial termination of the Plan, or upon
            complete discontinuance of contributions, the rights of all affected
            persons to benefits accrued to the date of such termination shall be
            nonforfeitable. Upon termination of the Plan, Accounts shall be
            distributed in accordance with applicable law.

11.2 Merger. The Plan shall not be merged with or consolidated with, nor shall
its assets be transferred to, any other qualified retirement plan unless each
Participant would receive a benefit after such merger, consolidation, or
transfer (assuming the Plan then terminated) which is of actuarial value equal
to or greater than the benefit he would have received from his Account if the
Plan had been terminated on the day before such merger, consolidation, or
transfer.

                                      -63-
<PAGE>
                       ARTICLE XII - TOP-HEAVY PROVISIONS

12.1 General. The following provisions shall apply automatically to the Plan and
shall supersede any contrary provisions for each Plan Year in which the Plan is
a Top-Heavy Plan (as defined below). It is intended that this Article shall be
construed in accordance with the provisions of Section 416 of the Code.

12.2 Definitions. The following definitions shall supplement those set forth in
Article II of the Plan:

      (a)   "Aggregation Group" means this Plan and each other qualified
            retirement plan (including a frozen plan or a plan which has been
            terminated during the 60-month period ending on the Determination
            Date) of a Participating Company or an Affiliated Company:

            (1)   in which a Key Employee is a participant; or

            (2)   which enables any plan in which a Key Employee participates to
                  meet the requirements of Sections 401(a)(4) and 410 of the
                  Code;

            (3)   or without the inclusion of which, the plans in the
                  Aggregation Group would be Top-Heavy Plans, but, with the
                  inclusion of which, the plans in the Aggregation Group are not
                  Top-Heavy Plans and, taken together, meet the requirements of
                  Sections 401(a)(4) and 410 of the Code.

      (b)   "Determination Date" means, for any Plan Year, the last day of the
            preceding Plan Year, except that for the first Plan Year it means
            the last day thereof.

      (c)   "Key Employee" means, with respect to any Plan Year:

                                      -64-
<PAGE>
            (1)   any Employee or former Employee who at any time during the
                  60-month period ending on the Determination Date was:

                  (A)   an officer of a Participating Company having
                        Compensation for a Plan Year during such period greater
                        than fifty percent (50%) of the amount in effect under
                        Section 415(b)(1)(A) of the Code for the calendar year
                        in which such Plan Year ends; provided, that no more
                        than 50 Employees (or, if less, the greater of three
                        Employees or ten percent (10%) of the greatest number of
                        Employees, including leased employees within the meaning
                        of Section 414(n) of the Code, employed by all
                        Participating Companies and all Affiliated Companies
                        during such 60-month period shall be treated as
                        officers; or

                  (B)   one of the ten Employees having Compensation greater
                        than the amount described in Section 415(c)(1)(A) of the
                        Code and owning (or considered as owning, within the
                        meaning of Section 318 of the Code) the largest
                        interests in any Participating Company or Affiliated
                        Company, provided that such interest exceeds one-half of
                        one percent (0.5%) of the total share ownership of the
                        Participating Company or Affiliated Company, the total
                        number of individuals described in this Subparagraph (B)
                        being limited to ten for the entire 60-month period; or

                  (C)   a five-percent (5%) owner of a Participating Company, or

                  (D)   a one-percent (1%) owner of a Participating Company
                        having Compensation in excess of $150,000; or

                                      -65-
<PAGE>
            (2)   a beneficiary of an individual described in Paragraph (1) of
                  this Subsection. Determinations under this Subsection shall be
                  made in accordance with Section 416(i) of the Code.

      (d)   "Key Employee Ratio" means, for any Determination Date, the ratio of
            the amount described in Paragraph (1) of this Subsection to the
            amount described in Paragraph (2) of this Subsection, after
            deducting from each such amount any portion thereof described in
            Paragraph (3) of this Subsection, where:

            (1)   the amount described in this Paragraph is the sum of:

                  (A)   the present value of all accrued benefits of Key
                        Employees under all qualified defined benefit plans
                        included in the Aggregation Group:

                  (B)   the balances in all of the accounts of Key Employees
                        under all qualified defined contribution plans included
                        in the Aggregation Group: and

                  (C)   the amounts distributed from all plans in such
                        Aggregation Group to or on behalf of any Key Employee
                        during the period of five Plan Years ending on the
                        Determination Date, except any benefit paid on account
                        of death to the extent it exceeds the accrued benefits
                        or account balances immediately prior to death;

            (2)   the amount described in this Paragraph is the sum of:

                  (A)   the present value of all accrued benefits of all
                        participants under all qualified defined benefit plans
                        included in the Aggregation Group;

                                      -66-
<PAGE>
                  (B)   the balances in all of the accounts of all participants
                        under all qualified defined contribution plans included
                        in the Aggregation Group; and

                  (C)   the amounts distributed from all plans in such
                        Aggregation Group to or on behalf of any participant
                        during the period of five Plan Years ending on the
                        Determination Date; and

            (3)   the amount described in this Paragraph is the sum of:

                  (A)   all rollover contributions (or fund to fund transfers)
                        to the Plan by an Employee from a plan sponsored by an
                        employer which is not a Participating Company or an
                        Affiliated Company;

                  (B)   any amount that is included in Paragraphs (1) and (2) of
                        this Subsection for a person who is a Non-Key Employee
                        as to the Plan Year of reference but who was a Key
                        Employee as to any earlier Plan Year; and

                  (C)   any amount that is included in Paragraphs (1) and (2) of
                        this Subsection for a person who has not performed any
                        services for any Participating Company during the
                        five-year period ending on the Determination Date.

      The present value of accrued benefits under any defined benefit plan shall
      be determined under the method used for accrual purposes for all plans
      maintained by all Participating Companies and Affiliated Companies if a
      single method is used by all such plans, or, otherwise, the slowest
      accrual method permitted under Section 411(b)(1)(C) of the Code.

      (e)   "Non-Key Employee" means, for any Plan Year:

                                      -67-
<PAGE>
            (1)   an Employee or former Employee who is not a Key Employee with
                  respect to such Plan Year; or

            (2)   a beneficiary of an individual described in Paragraph of this
                  Subsection.

      (f)   "Super Top-Heavy Plan" means, for any Plan Year, each plan in the
            Aggregation Group for such Plan Year if, as of the applicable
            Determination Date, the Key Employee Ratio exceeds ninety percent
            (90%).

      (g)   "Top-Heavy Compensation" means, for any Participant for any Plan
            Year, the average of his annual Compensation over the period of five
            consecutive Plan Years (or, if shorter, the longest period of
            consecutive Plan Years during which the Participant was in the
            employ of any Participating Company) yielding the highest average,
            disregarding Compensation for Plan Years after the close of the last
            Plan Year in which the Plan was a Top-Heavy Plan. Compensation shall
            mean Compensation as defined in Section 3.8.

      (h)   "Top-Heavy Plan" means, for any Plan Year, each plan in the
            Aggregation Group for such Plan Year if, as of the applicable
            Determination Date, the Key Employee Ratio exceeds sixty percent
            (60%).

      (i)   "Year of Top-Heavy Service" means, for any Participant, a Plan Year
            in which he completes 1,000 or more Hours of Service, excluding Plan
            Years in which the Plan is not a Top-Heavy Plan.

12.3 Minimum Contribution for Non-Key Employees.

                                      -68-
<PAGE>
      (a)   In each Plan Year in which the Plan is a Top-Heavy Plan, each
            Eligible Employee who is a Non-Key Employee (except an Eligible
            Employee who is a Non-Key Employee as to the Plan Year of reference
            but who was a Key Employee as to any earlier Plan Year) and who is
            an Employee on the last day of such Plan Year will receive a total
            minimum Participating Company or Affiliated Company contribution
            (including forfeitures) under all plans described in Paragraphs
            (a)(1) and (a)(2) of Section 12.2 of not less than three percent
            (3%) of the Eligible Employee's Compensation for the Plan Year.

      (b)   The percentage set forth in Subsection (a) shall be reduced to the
            percentage at which contributions, including forfeitures, are made
            (or are required to be made) for a Plan Year for the Key Employee
            for whom such percentage is the highest for that Plan Year. This
            percentage shall be determined for each Key Employee by dividing the
            contribution for such Key Employee by his Compensation for the Plan
            Year. All defined contribution plans required to be included in an
            Aggregation Group shall be treated as one plan for the purpose of
            this Section; however, this Section shall not apply to any plan
            which is required to be included in the Aggregation Group if such
            plan enables a defined benefit plan in the group to meet the
            requirements of Section 401(a)(4) or Section 410 of the Code.

      (c)   If a Non-Key Employee described in Subsection (a) participates in
            both a defined benefit plan and a defined contribution plan
            described in Paragraphs (a)(1) and (a)(2) of Section 12.2, the
            Participating Company is not required to provide such Employee with
            both the minimum benefit under the defined benefit plan and the
            minimum contribution. In such event, the Non-Key Employee shall
            receive the minimum benefit under the defined benefit plan.

                                      -69-
<PAGE>
12.4 Social Security. The Plan, for each Plan Year in which it is a Top Heavy
Plan, must meet the requirements of this Article without regard to any Social
Security or similar contributions or benefits.

12.5 Adjustment to Maximum Benefit Limitation.

      (a)   For each Plan Year beginning prior to January 1, 2000, in which the
            Plan is a Super Top-Heavy Plan, the 1.25 factor in the defined
            benefit and defined contribution fractions described in Subsection
            (c) of Section 3.8 shall be reduced to 1.0. The adjustment described
            in this Subsection shall not apply to a Participant during any
            period in which the Participant earns no additional accrued benefit
            under any defined benefit plan and has no employer contributions,
            forfeitures, or voluntary nondeductible contributions allocated to
            his accounts under any defined contribution plan.

      (b)   If, in any Plan Year in which the Plan is a Top-Heavy Plan but not a
            Super Top Heavy Plan, the Aggregation Group includes a defined
            benefit plan, the minimum Company contribution described in Section
            12.3(a) for each Non-Key Employee who is not covered under a
            defined benefit plan shall be increased to four percent (4%), and
            the minimum Company contribution described in Section 12.3(c) for
            each Non-Key Employee who is covered under a defined benefit plan
            (but who does not have a minimum benefit under the defined benefit
            plan) equal to the lesser of:

            (1)   three percent (3%) of his Top-Heavy Compensation multiplied by
                  his Years of Top-Heavy Service, or

            (2)   thirty percent (30%) of his Top-Heavy Compensation)

                                      -70-
<PAGE>
            shall be increased to seven and one-half percent (7-1/2%).

                                      -71-
<PAGE>
                        ARTICLE XIII - GENERAL PROVISIONS

13.1 No Employment Rights. Neither the action of the Company in establishing the
Plan, nor of any Participating Company in adopting the Plan, nor any provisions
of the Plan, nor any action taken by the Company, any Participating Company or
the Plan Administrator shall be construed as giving to any Employee the right to
be retained in the employ of the Company or any Participating Company, or any
right to payment except to the extent of the benefits provided under the terms
of the Plan, and which are to be paid from the Fund.

13.2 Governing Law. Except to the extent superseded by ERISA, all questions
pertaining to the validity, construction, and operation of the Plan shall be
determined in accordance with the laws of the Commonwealth of Pennsylvania.

13.3 No Interest in Fund. No person shall have any interest in, or right to, any
part of the principal or income of the Fund, except as and to the extent
expressly provided in this Plan and in the Trust Agreement.

13.4 Spendthrift Clause. No benefit payable at any time under this Plan and no
interest or expectancy herein shall be anticipated, assigned, or alienated by
any Participant or Beneficiary, or subject to attachment, garnishment, levy,
execution, or other legal or equitable process, except for any benefit payable
pursuant to a qualified domestic relations order as defined in Section 414(p) of
the Code. Except as provided above, any attempt to alienate or assign a benefit
hereunder, whether currently or hereafter payable, shall be void.

13.5 Incapacity. If the Plan Administrator deems any Participant who is entitled
to receive payments hereunder incapable of receiving or disbursing the same by
reason of Age, illness, infirmity, or incapacity of any kind, the Plan
Administrator may direct the Trustee to apply such payments directly for the
comfort, support, and maintenance of such Participant, or to pay the same to any
responsible person caring for the Participant who is determined by the Plan
Administrator to be qualified to receive and disburse such payments for the
Participant's benefit; and the receipt by

                                      -72-
<PAGE>
such person shall be a complete acquittance for the payment of the benefit.
Payments pursuant to this Section shall be complete discharge to the extent
thereof of any and all liability of the Participating Companies, the Plan
Administrator, the Trustee, and the Fund.

      IN WITNESS WHEREOF, Radian Group Inc. has caused this amendment and
restatement of the Plan to be executed by its duly authorized party on this
______________ day of __________________, 2002.

[ SEAL]                                      RADIAN GROUP INC.

Attest:______________________________        By:________________________________

                                             Its:_______________________________

                                      -73-
<PAGE>
                                   SCHEDULE A

                             PARTICIPATING COMPANIES

Radian Group Inc.

RadianExpress.com Inc.

Radian Guaranty Inc.

Radian Insurance Inc.

Radian Services L.L.C.

                                      -74-

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