Document:

AMERICAN HOME PRODUCTS CORPORATION

              1994 RESTRICTED STOCK PLAN FOR NON-EMPLOYEE DIRECTORS

          (Initially approved by stockholders on April 20, 1994 and as
              amended by the Board of Directors on June 21, 2001)

     Section  1.  Purpose.   The  purpose  of  the  Restricted  Stock  Plan  for
Non-Employee  Directors of American Home Products  Corporation is to attract and
retain  qualified  persons  who are not  employees  or former  employees  of the
Company or any of its  subsidiaries  or affiliates for service as members of the
Board of Directors by granting such  Directors  shares of the  Company's  Common
Stock,  which are  restricted in accordance  with the terms and  conditions  set
forth below,  and thereby  encouraging  ownership in the Company by non-employee
Directors.

     Section 2. Definitions.  Whenever used herein, unless the context otherwise
indicates,  the  following  terms  shall have the  respective  meaning set forth
below:

     Act: The Securities Exchange Act of 1934, as amended.

     Board  Membership:  The period of time during which a person  serves on the
Board of  Directors,  regardless  of  whether  occurring  before  or  after  the
Effective Date.

     Board of Directors (or Board): The Board of Directors of the Company.

     Committee:  The  Compensation  and  Benefits  Committee  of  the  Board  of
Directors appointed to administer the Plan in accordance with Section 7 hereof.

     Common Stock:  Common Stock, par value $.33 1/3 per share, of American Home
Products Corporation.

     Company:  American  Home  Products  Corporation  or any  successor to it in
ownership of substantially all of its assets,  whether by merger,  consolidation
or otherwise.

     Director: Any member of the Board of Directors.

     Disability:  A medically  determinable  physical or mental impairment which
renders a participant substantially unable to function as a Director.

     Effective Date: The date specified in Section 10 hereof.

     Eligible  Director (or Non-Employee  Director):  Any Director who is not an
employee  or  former  employee  of the  Company  or any of its  subsidiaries  or
affiliates.

     Participant:  Each Director to whom  Restricted  Stock is granted under the
Plan.

     Plan: The 1994 Restricted Stock Plan for Non-Employee Directors of American
Home Products Corporation.

     Restricted  Period:  The  period  of time  from  the  date of  grant of the
Restricted  Stock until the earliest to occur of the events described in Section
4(b) hereof.

     Retirement Benefit: A normal benefit payable under the Retirement Plan.

     Retirement Plan: The American Home Products Corporation Retirement Plan for
Outside Directors, as amended.

     Restricted  Stock:  Common Stock granted under the Plan which is subject to
restrictions in accordance with Section 4 hereof.

     Year of Board Membership: 365 consecutive days of Board Membership.

     Section 3. Eligibility and Grants.

     (a) Grants.  To be eligible to participate in the Plan, a Director must not
be an employee or former  employee of the Company or any of its  subsidiaries or
affiliates.  Each  Eligible  Director  on the  Effective  Date of the Plan shall
receive a grant of eight hundred (800) shares of Restricted  Stock. In addition,
each  person  who  becomes  an  Eligible  Director  for the first time after the
Effective  Date of the Plan shall also  receive a grant of eight  hundred  (800)
shares of Restricted  Stock,  effective as of the date of such person's election
as an Eligible  Director.  Thereafter,  each Eligible  Director shall be granted
eight hundred (800) shares of Restricted Stock for each subsequent Year of Board
Membership,  up to a maximum of four thousand (4,000) shares of Restricted Stock
per Eligible  Director.  Notwithstanding  anything to the contrary  contained in
this Plan, if a Participant  shall terminate  service as a Director due to death
or  Disability  prior to having been  granted  the  maximum  number of shares of
Restricted Stock hereunder and provided the Participant is not then eligible for
a Retirement  Benefit under the Retirement Plan, then such Participant,  or such
Participant's  beneficiary  or  estate,  as the  case may be,  shall be  granted
additional  shares of Restricted Stock which together with the shares previously
granted  under the Plan  will  equal  such  maximum  number  of  shares  and all
restrictions  applicable  to such shares shall lapse on the later of the date of
such  termination of service or six months after the date of grant.  If required
by the Committee, each grant of Restricted Stock shall be evidenced by a written
agreement duly executed by or on behalf of the Company and the Participant.

     b) Number of Shares.  The total number of shares of Restricted  Stock which
may be  granted  under the Plan  shall not  exceed  100,000.  The  shares may be
authorized  and  unissued  or  issued  and  reacquired  shares,  as the Board of
Directors from time to time may determine.  Shares of Restricted  Stock that are
forfeited before the restrictions lapse shall be available for subsequent grants
of Restricted Stock under the Plan.

     (c)  Non-Consecutive   Terms.  An  Eligible  Director  who  is  elected  to
non-consecutive  terms of Board  Membership shall receive  additional  grants of
shares  of  Restricted  Stock at the time of such  re-election  to the Board and
thereafter as provided in Section 3, provided that the amounts so granted,  when
aggregated with the number of shares of Restricted Stock  previously  granted to
such Director with respect to which the restrictions  thereon shall have lapsed,
does not exceed four thousand (4,000) shares.

     Section 4. Terms and Conditions of Restricted  Stock.  The restrictions set
forth in this  section  shall  apply to each grant of  Restricted  Stock for the
duration of the Restricted Period.

     (a) Restrictions.  A stock certificate representing the number of shares of
Restricted Stock granted shall be registered in the Participant's name but shall
be held in custody by the Company for the Participant's account. The Participant
shall have all rights and  privileges  of a  stockholder  as to such  Restricted
Stock,  including  the rights to vote and to  receive  dividends,  except  that,
subject to the provisions of Sections 3(a) and 4(b), the following  restrictions
shall  apply:  (i) the  Participant  shall not be  entitled  to  delivery of the
certificate  until the  expiration of the  Restricted  Period;  (ii) none of the
shares  of  Restricted  Stock may be sold,  transferred,  assigned,  pledged  or
otherwise  encumbered  or disposed of during the  Restricted  Period;  (iii) the
Participant  shall,  if  requested  by the  Company,  execute and deliver to the
Company,  a stock power  endorsed in blank.  The  Participant  shall forfeit all
shares of Restricted Stock with respect to which such  restrictions do not lapse
at the end of the Restricted  Period.  Upon the forfeiture (in whole or in part)
of shares of  Restricted  Stock,  such  forfeited  shares shall become  treasury
shares of the Company without further action by the Participant. The Participant
shall  have  the  same  rights  and  privileges,  and be  subject  to  the  same
restrictions, with respect to any shares received pursuant to Section 6.

     (b) Events.  The Restricted Period shall end upon the first to occur of the
following events:

     (i)  Five Years of Service.  The  Participant  completes  at least five (5)
          years of  service  from the date of the  initial  grant of  Restricted
          Stock to the Participant under the Plan.

     (ii) Disability.  The  Participant  ceases  to be a  Director  by reason of
          Disability; provided, however, that if the Participant is at such time
          entitled to a Retirement Benefit,  then the Restricted Period shall be
          deemed  not to have  lapsed.  In such case,  all shares of  Restricted
          Stock will be forfeited.

     (iii)Death.  The  Participant  ceases to be a Director  by reason of death;
          provided, however, that if the Participant is at such time entitled to
          a Retirement  Benefit,  then the Restricted Period shall be deemed not
          to have lapsed.  In such case, all shares of Restricted  Stock will be
          forfeited.

     (c) Delivery of Restricted  Shares.  At the end of the Restricted Period as
herein provided,  subject to Section 3(a), a stock certificate for the number of
shares of Restricted  Stock with respect to which the  restrictions  have lapsed
shall be delivered,  free of all such  restrictions,  to the  Participant or the
Participant's  beneficiary  or  estate,  as the  case  may  be,  subject  to the
withholding  requirements of Section 9 hereof. The Company shall not be required
to deliver any  fractional  share of Common Stock but will pay, in lieu thereof,
the fair market value (measured as of the date the  restrictions  lapse) of such
fractional share to the Participant or the Participant's  beneficiary or estate,
as the case may be.  Notwithstanding  the foregoing,  a Participant  may make an
irrevocable  election to cause the Company to contribute such Restricted  Shares
to the Restricted Stock Trust which he or she otherwise would have received from
the Plan by completing a deferral election form provided by the Company, wherein
such shares  shall be held,  subject to the claims of the  Company's  creditors,
until delivered to the Participant in accordance with such election.

     Section 5. Regulatory  Compliance and Listing.  The issuance or delivery of
any shares of  Restricted  Stock may be postponed by the Company for such period
as may be required to comply with any applicable  requirements under the federal
securities laws, any applicable listing  requirements of any national securities
exchange or any requirements under any other law or regulation applicable to the
issuance or delivery of such shares and the Company  shall not be  obligated  to
issue or deliver any such  shares if the  issuance  or  delivery  thereof  shall
constitute a violation  of any  provision  of any law or any  regulation  of any
governmental authority or any national securities exchange.

     Section 6. Adjustments.  In the event of a  recapitalization,  stock split,
stock dividend, combination or exchange of shares, merger, consolidation, rights
offering, separation,  reorganization or liquidation, or any other change in the
corporate  structure  or  shares of the  Company,  the  Committee  may make such
equitable  adjustments,  to prevent dilution or enlargement of rights, as it may
deem  appropriate  in the  number and class of shares  authorized  to be granted
hereunder.

     Section  7.   Administration.   The  Plan  shall  be  administered  by  the
Compensation and Benefits Committee,  consisting of three or more Directors each
of whom shall be a  "disinterested  Director"  within the  meaning of Rule 16b-3
under the Act. All  determinations  of the Committee  shall be  conclusive.  The
Committee  may obtain such advice or  assistance  as it deems  appropriate  from
persons not serving on the Committee.

     Section 8.  Termination  or Amendment.  The Board may at any time terminate
the Plan and may from time to time  alter or amend the Plan or any part  thereof
(including any amendment  deemed necessary to ensure that the Company may comply
with any regulatory  requirement  referred to in Section 5), provided,  however,
that, unless otherwise required by law, the rights of a Participant with respect
to shares of Restricted Stock granted prior to such  termination,  alteration or
amendment  may not be  impaired  without the  consent of such  Participant  and,
provided  further,  without  the  approval  of the  Company's  stockholders,  no
alteration  or  amendment  may be made which would (i)  increase  the  aggregate
number of shares of Restricted  Stock that may be granted under the Plan (except
by operation of Section 6), or (ii) change the category of Directors eligible to
receive  shares  of  Restricted  Stock  under  the  Plan.   Notwithstanding  the
foregoing,  the Plan shall not be amended more than once every six months, other
than to  comport  with  changes  in the  Internal  Revenue  Code,  the  Employee
Retirement Income Security Act or the rules thereunder. The Company intends that
the Plan and the grants of  Restricted  Stock  hereunder  shall  comply with the
conditions of Rule 16b-3 of the Act and qualify for the  exemption  from Section
16(b) of the Act as a  "formula  plan".  Should  any  provisions  hereof  not be
necessary  in order to comply with the  requirements  of such Rule or should any
additional provisions be necessary in order to so comply, the Board of Directors
may amend the Plan accordingly,  without the necessity of obtaining the approval
of the Company's stockholders.

     Section 9. Miscellaneous.

     (a) Right to Re-election. Nothing in the Plan shall be deemed to create any
obligation on the part of the Board to nominate any Director for  re-election by
the Company's  stockholders,  nor confer upon any Director the right to remain a
member of the Board of Directors.

     (b) Withholding and Responsibility For Taxes. The Company shall satisfy any
tax withholding  obligation  required by law by reducing the number of shares of
Common Stock otherwise  deliverable to the  Participant or the Restricted  Stock
Trust, as the case may be. To the extent no taxes are required to be withheld on
the delivery of the shares of Common Stock to the  Participant or the Restricted
Stock  Trust,  the  Participant  shall be  responsible  for the  payment  of all
applicable taxes.

     (c)  Governing  Law. This Plan shall be governed by the law of the State of
Delaware and in accordance with such federal laws as may be applicable.

     (d)  Construction.  Wherever  any  words are used  herein in the  masculine
gender they shall be  construed  as though  they were also used in the  feminine
gender in all cases where they would so apply,  and  wherever any words are used
herein in the  singular  form they shall be  construed  as though they were also
used in the plural form in all cases where they would so apply.

     Section 10. Effective Date. The Plan shall be submitted to the stockholders
of the Company for their  approval at the Annual Meeting of  Stockholders  to be
held on April 20, 1994.  The Plan shall become  effective  upon the  affirmative
vote of the  holders of a majority  of the shares of Common  Stock  present,  or
represented, and entitled to vote at the meeting.

     Section 11. Change in Control.  Upon the occurrence of a Change in Control,
Restricted  Stock  that was  previously  granted  under the Plan  (which has not
previously been forfeited)  will become vested,  and the Restricted  Period with
respect to such Restricted  Stock will be deemed to have ended.  For purposes of
this provision, a Change in Control will be deemed to have occurred if:

     (a)  any person or persons  acting in concert  (excluding  Company  benefit
          plans)  becomes  the  beneficial  owner of  securities  of the Company
          having  at  least  20% of the  voting  power  of  the  Company's  then
          outstanding  securities (unless the event causing the 20% threshold to
          be crossed is an acquisition of voting common securities directly from
          the Company); or

     (b)  the  consummation  of any merger or other business  combination of the
          Company,  sale or lease of the Company's  assets or combination of the
          foregoing  transactions (the "Transactions")  other than a Transaction
          immediately  following which the shareholders of the Company who owned
          shares immediately prior to the Transaction  (including any trustee or
          fiduciary  of any  Company  employee  benefit  plan) own, by virtue of
          their prior  ownership of the  Company's  shares,  at least 65% of the
          voting power, directly or indirectly, of (a) the surviving corporation
          in any such merger or other business combination; (b) the purchaser or
          lessee of the Company's assets; or (c) both the surviving  corporation
          and the  purchaser  or  lessee  in the  event  of any  combination  of
          Transactions; or

     (c)  within any 24 month period, the persons who were directors immediately
          before the beginning of such period (the "Incumbent  Directors") shall
          cease  (for any  reason  other than  death) to  constitute  at least a
          majority of the Board or the board of  directors of a successor to the
          Company.  For this purpose, any director who was not a director at the
          beginning of such period  shall be deemed to be an Incumbent  Director
          if such director was elected to the Board by, or on the recommendation
          of or with the approval of, at least  two-thirds  of the directors who
          then  qualified as Incumbent  Directors  (so long as such director was
          not  nominated  by a person  who has  expressed  an intent to effect a
          Change in Control or engage in a proxy or other control contest).AMERICAN HOME PRODUCTS CORPORATION
                            DIRECTORS' DEFERRAL PLAN
                          (as amended to June 21, 2001)

                      SECTION 1. ESTABLISHMENT OF THE PLAN

     Effective May 1, 1997, there is hereby established a plan whereby Directors
of the  Company  who are not current  employees  of the Company may  voluntarily
defer  compensation (the "Deferred  Compensation"  portion of the Plan), and may
share in the long-term  growth of the Company (the  "Deferred  Stock" portion of
the  Plan).   Prior  to  May  1,  1997,  the  Company  maintained  the  Deferred
Compensation portion of the Plan as a separate plan, The AHPC Nonfunded Deferred
Compensation  Plan for  Directors  (the  "Prior  Plan").  The Plan is  deemed to
consist, in part, of the amounts held under the Prior Plan and any election made
by a Director under the Prior Plan,  unless and until amended by the Director in
accordance with this Plan, shall remain in effect under this Plan.

                             SECTION 2. DEFINITIONS

     When used in the Plan, the following  terms shall have the  definitions set
forth in this Section 2:

     2.1.  Average  Closing  Price.  The term "Average  Closing Price" means the
average  closing  market  price of the  Shares on the  Consolidated  Transaction
Reporting  System  for  the New  York  Stock  Exchange  for the  last  five  (5)
consecutive trading days on which at least one sale of Shares took place on such
System up to and including the date of determination.

     2.2.   Beneficiary.   The  term  "Beneficiary"  means  the  beneficiary  or
beneficiaries (including any contingent beneficiary or beneficiaries) designated
by the Participant pursuant to Section 7.3 hereof.

     2.3. Board of Directors.  The term "Board of Directors"  means the Board of
Directors of the Company.

     2.4.  Company.  The terms  "Company" or "AHPC" mean  American Home Products
Corporation, a Delaware corporation.

     2.5. Company Credit. The term "Company Credit" means an amount computed and
credited to a  Participant's  Deferred  Compensation  Account,  as  described in
Section  6.3, at an annual rate based on the average of the  quarter-end  yields
for a ten-year  period (ending  September 30 of the prior year) of ten-year U.S.
Treasury notes plus two percent (2%).

     2.6.  Compensation.  The term  "Compensation"  means the  retainer  and the
aggregate  of all fees for  service  and  attendance  at Board of  Director  and
committee  meetings to which a Director is entitled for services rendered to the
Company as a Director.

     2.7.  Deferral  Allocation Date. The term "Deferral  Allocation Date" means
the third Monday of any month, or if Shares are not traded on the New York Stock
Exchange on such third Monday of the month, the last day before the third Monday
of the month on which  Shares are traded on the New York  Stock  Exchange,  that
follows the date on which an amount deferred under the Plan would have been paid
in cash if a deferral election had not been made hereunder.

     2.8.  Deferred  Amount.  The term  "Deferred  Amount"  means the  amount of
Compensation  that a  Deferred  Compensation  Participant  elects  to  defer  in
accordance with Section 4 hereof.

     2.9.  Deferred  Compensation  Account.  The  term  "Deferred   Compensation
Account" means the account described in Section 6.1.

     2.10. Deferred Compensation  Participant.  The term "Deferred  Compensation
Participant"  means a Director who is not a current  employee of the Company and
who has  currently  or  previously  elected  to  defer  all or  part of  his/her
Compensation  pursuant to the Prior Plan or in accordance with Section 4 of this
Plan, and for whom a Deferred Compensation Account is currently maintained.

     2.11.  Deferred Stock  Participant.  The term "Deferred Stock  Participant"
means a Director who is not a current  employee of the Company and who becomes a
Participant in the Plan in accordance with Section 3 hereof.

     2.12.  Director.  The term  "Director"  means  each  member of the Board of
Directors.

     2.13.  Disability.  The term "Disability"  means the complete and permanent
inability of an  individual,  by reason of illness or  accident,  to perform the
individual's  duties as a Director.  The  determination  whether a Director  has
suffered a Disability  shall be made by the Board of  Directors  based upon such
evidence as it deems appropriate.

     2.14. Dividend  Allocation Date. The term "Dividend  Allocation Date" means
the first  Monday that (a) follows a Dividend  Payment Date and (b) is the third
Monday of a month.

     2.15.  Dividend  Payment Date. The term  "Dividend  Payment Date" means the
date as of which the Company pays a cash dividend on Shares.

     2.16.  Dividend  Record Date. The term "Dividend  Record Date" means,  with
respect to any  Dividend  Payment  Date,  the date  established  by the Board of
Directors as the record date for  determining  shareholders  entitled to receive
payment of the dividend on such Dividend Payment Date.

     2.17.  Individual  Accounts.  The term "Individual  Accounts" or "Accounts"
means the separate Deferred  Compensation Account and Share Accounts,  described
in Section 6 hereof,  which are established under the Plan for each Participant.
When used in the singular, the term shall refer to one of these accounts, as the
context requires.

     2.18.  Participant.  The  term  "Participant"  means  a  Director  who is a
Deferred Stock Participant, a Deferred Compensation Participant, or both, as the
case may be.

     2.19. Plan. The term "Plan" means the AHPC Directors' Deferral Plan, as set
forth herein and as it may be amended from time to time.

     2.20.  Prior  Plan.  The term  "Prior  Plan" has the  meaning  set forth in
Section 1 hereof.

     2.21.  Share.  The term "Share"  means a share of Common  Stock,  par value
$.33-1/3 per share, of the Company.

     2.22.  Share  Accounts.  The term "Share  Accounts"  means a  Participant's
Vested Share Account and Unvested Share Account.

     2.23. Share  Equivalents.  The term "Share  Equivalents"  means bookkeeping
entries credited to a Participant's Share Accounts and denominated in Shares.

     2.24.  Unvested Share Account.  The term "Unvested  Share Account" means an
account  consisting  of  amounts  transferred  under  Section  5.4 for which the
vesting  requirements of Section 5.5(ii) have not been satisfied,  and which are
denominated in Share Equivalents as described in Section 6.2.

     2.25.  Vested Share  Account.  The term  "Vested  Share  Account"  means an
account  consisting  of  amounts  transferred  under  Section  5.4 for which the
vesting  requirements  of Section  5.5(ii)  have been  satisfied  together  with
amounts deferred  hereunder,  and which are denominated in Share  Equivalents as
described in Section 6.2, and including any amounts  previously  maintained in a
Participant's  Unvested  Share  Account  which are  transferred  to such account
following satisfaction of the vesting requirements described in Section 5.5(ii).

     2.26. Year of Service.  The term "Year of Service" means each full year and
any partial year an individual  served as a Director.  For this purpose a "year"
is the  twelve-month  period  commencing with the first day of the  individual's
service as a Director of the Company both before and after the effective date of
the Plan.

                      SECTION 3. DEFERRED STOCK PARTICIPANT

     Each person who as of the effective date of this Plan is currently  serving
or who is hereafter elected or appointed to serve as a Director, as the case may
be,  who is not an  employee  of  the  Company,  and  who  elects  to  become  a
Participant  by making a deferral  under  Section 5.2, or for whom a transfer is
made under Section 5.4,  shall become a Deferred Stock  Participant.  A Deferred
Stock  Participant  shall cease to participate in the Plan when the  Participant
ceases to be a Director. For purposes of the Plan, a Director shall be deemed to
cease to be a  Deferred  Stock  Participant  on the first day of the month  next
following the month in which he/she last serves as a Director.

                  SECTION 4. DEFERRED COMPENSATION PARTICIPANT

     Prior to the beginning of any calendar  quarter in each calendar  year, any
Director  who is not an  employee  of the  Company  may  defer  the  receipt  of
Compensation to be earned by the Director  during such calendar  quarter and the
ensuing calendar quarters by filing with the Company a written election that:

          (i) defers  payment of a designated  amount (of One  Thousand  Dollars
     ($1,000) or more) or a  percentage  of his/her  Compensation  for  services
     attributable to such calendar quarters (the "Deferred Amount");

          (ii) specifies the payment option selected by the Participant pursuant
     to Section 7.2 hereof for such Deferred Amount; and

          (iii) specifies the options  selected by the  Participant  pursuant to
     Section 5 hereof for such Deferred Amount.

     The amount  deferred  may not exceed the  Director's  Compensation  for the
period of deferral.  Notwithstanding the foregoing, any individual who is not an
employee of the  Company,  and who is newly  elected or  appointed to serve as a
Director  may,  not later  than  thirty  (30) days  after  his/her  election  or
appointment  as a  Director  becomes  effective,  elect in  accordance  with the
preceding  provisions  of this  Section 4, to defer the receipt of  Compensation
earned during the portion of the current  calendar  quarter that follows his/her
filing of the election  with the Company.  Any  elections  made pursuant to this
Section 4 shall be irrevocable  when made.  Notwithstanding  the foregoing,  the
Board  of  Directors  in its  sole  discretion,  may  make a  distribution  to a
Participant  under either  Section  7.2(i)(a) or 7.4. If a Participant  fails to
discontinue an election under Section 5 with respect to his/her  Deferred Amount
for a future period, the Participant's  current election shall remain in effect,
provided,  however, that the Participant may thereafter make a new election with
regard to a future period at any time in accordance  with the first paragraph of
this Section 4.

                SECTION 5. FORM OF DEFERRED COMPENSATION CREDITS

     5.1. Deferred Compensation Account.  Except with respect to the deferral of
Compensation for a quarter in which a Deferred  Compensation  Participant elects
to have all or a  percentage  of the  Deferred  Amount  credited  in  Shares  in
accordance with Section 5.2 hereof,  the Deferred Amount shall be denominated in
U.S. dollars and credited to the  Participant's  Deferred  Compensation  Account
pursuant to Section 6.1 hereof.

     5.2.  Shares.  Prior to the beginning of any calendar  quarter,  a Deferred
Compensation  Participant may elect, by filing a written election with the Board
of  Directors,  to have  all or a  percentage  of the  Deferred  Amount  for the
following  calendar quarter and/or ensuing calendar  quarters  credited in Share
Equivalents and allocated to the Participant's  Vested Share Account pursuant to
Section 6.2 hereof.  Any  elections  made  pursuant to this Section 5.2 shall be
irrevocable  when made. If a Participant  fails to discontinue an election under
this  Section 5 with  respect to his/her  Deferred  Amount for a future  period,
his/her current  election shall remain in effect,  provided,  however,  that the
Participant may thereafter make a new election with regard to a future period at
any time.

     5.3.  Transfer of Deferred  Compensation  Account Balance to Share Account.
Prior to the effective date of the Plan, a Deferred Compensation Participant may
elect to have all or a portion of his/her final credited  account balance in the
Prior  Plan ( i.e.  , the  balance  as of April  30,  1997)  converted  to Share
Equivalents  and  credited  to the  Participant's  Vested  Share  Account.  Such
conversion  shall  take place as of May 1, 1997,  based on the  Average  Closing
Price as of May 1, 1997.

     5.4. Transfer of Present Value of Accrued Benefits Under Retirement Plan to
Share Account Prior to the effective  date of the Plan, a Deferred  Compensation
Participant  shall have allocated to his/her  Unvested  Share  Account,  or if a
Participant has satisfied the vesting  requirements set forth in Section 5.5(ii)
hereof,  to  his/her  Vested  Share  Account,  the  number of Share  Equivalents
(maintained  in  fractions  and  rounded to three (3) decimal  places)  having a
market value  (calculated  as set forth below)  equal to the  actuarial  present
value  as of May 1,  1997,  of the  amount  that  would  have  been  due to such
Participant  under the AHPC Retirement Plan for Outside Directors at the time of
his/her  earliest  retirement  date  assuming  that  the  Participant  has  then
satisfied the vesting  requirements  thereunder.  Such  actuarial  present value
calculation  shall be  performed by the Company in its  discretion  and shall be
converted to Share  Equivalents  and credited to the  Participant's  Unvested or
Vested Share Account, as the case may be. such conversion shall take place as of
May 1, 1997, based on the Average Closing Price as of that date.

     5.5. Vesting of Unvested Share Account.

          (i)  All  amounts  transferred   pursuant  to  Section  5.4  shall  be
     maintained  in a Vested Share  Account to the extent  vested at the time of
     transfer.  All  amounts  which are not vested  will be held in an  Unvested
     Share  Account  until the  Participant  shall have  satisfied  the  vesting
     requirements  set forth in Section  5.5(ii),  at which time such amounts in
     the  Participant's  Unvested Share Account shall be  transferred  from such
     Unvested  Share  Account  and  shall  become  a part of or be  added to the
     Participant's Vested Share Account.

          (ii) A Participant shall have satisfied the vesting  requirements upon
     completion  of at least ten (10) Years of  Service  and  attainment  of age
     sixty-five (65), provided,  however,  that a Participant who ceases to be a
     Director prior to attainment of age sixty-five  (65) with at least ten (10)
     Years of Service shall be deemed to have satisfied the vesting requirements
     upon the  first to occur of (1)  attainment  of age  sixty-five  (65),  (2)
     death, or (3) Disability.

                         SECTION 6. INDIVIDUAL ACCOUNTS

     The  Company  shall  maintain  Individual  Accounts  for  Participants,  as
follows:

     6.1. Deferred  Compensation  Account. The Company shall maintain a Deferred
Compensation Account in the name of each Deferred Compensation  Participant with
respect to any amounts  deferred under the Plan which the Deferred  Compensation
Participant  does not elect to have  credited in Share  Equivalents  pursuant to
Section 5.2 or 5.3 hereof.  The opening balance of each  Participant's  Deferred
Compensation  Account on the  effective  date of this Plan shall be equal to the
closing balance on the immediately  preceding date of the corresponding  account
maintained  on the  Participant's  behalf under the Prior Plan, if any, less any
portion of such account  converted  to Share  Equivalents  and  allocated to the
Participant's  Vested Share Account pursuant to Section 5.3 hereof. The Deferred
Compensation  Account  shall be  denominated  in U.S.  dollars,  rounded  to the
nearest  whole cent.  A Deferred  Amount  allocated  to a Deferred  Compensation
Account  pursuant  to  Section  5.1 hereof  shall be  credited  to the  Deferred
Compensation Account as of the Deferral Allocation Date.

     6.2. Share Accounts.  The Company shall maintain Share Accounts  consisting
of (i) a Vested  Share  Account and (ii) an Unvested  Share  Account.  The Share
Accounts shall be denominated in Share  Equivalents,  and shall be maintained in
fractions rounded to three (3) decimal places. Share Equivalents  allocated to a
Deferred  Stock  Participant's  Vested  Share  Account  in  accordance  with the
Participant's  election  under  Section  5.2  hereof,  shall be  credited to the
Participant's  Vested Share Account as of the Deferral  Allocation  Date.  Share
Equivalents and, if necessary,  fractional Share Equivalents,  shall be credited
to a  Participant's  Vested Share Account based on the Average  Closing Price at
the Deferral Allocation Date.

     6.3.  Accrual  of  Company  Credit.  The  Treasurer  of the  Company  shall
determine  the annual  rate of Company  Credit on or before  December 31 of each
calendar year. This rate shall be effective for the following calendar year. The
Company  Credit shall be compounded  and credited to each Deferred  Compensation
Account  as of the last day of each  calendar  quarter  for each  month (or part
thereof) that the Participant serves as a Director during such calendar quarter.
If a Participant  elects the payment  option under either  Section  7.2(i)(b) or
Section 7.2(i)(c) below, the Company Credit shall continue to be credited to the
Participant's account until distributed.

     6.4. Cash Dividends.  Cash dividends paid on Shares shall be deemed to have
been  paid  on the  Share  Equivalents  allocated  to each  Participant's  Share
Accounts and shall be treated as if the allocated Share  Equivalents were actual
Shares issued and  outstanding  on the Dividend  Record Date. An amount equal to
the amount of such  dividends  shall be  credited in Share  Equivalents  to each
Share Account as of each Dividend  Allocation  Date based on the Average Closing
Price at the Dividend Allocation Date.

     6.5.  Capital  Adjustments.  The number of Share  Equivalents  allocated to
Share  Accounts  shall  be  adjusted  by the  Board  of  Directors,  as it deems
appropriate,  to  reflect  stock  dividends,  stock  splits,  reclassifications,
spinoffs, and other extraordinary  distributions,  as if those Share Equivalents
were actual Shares.

     6.6. Account Statements. Within a reasonable time following the end of each
calendar  year,   the  Company  shall  provide  an  annual   statement  to  each
Participant.  The annual statement for each Participant  shall report the number
of Share Equivalents  credited to each of the  Participant's  Share Accounts and
shall  report  the  dollar  amount  credited  to  the   Participant's   Deferred
Compensation Account as of December 31 of that year.

                          SECTION 7. PAYMENT PROVISIONS

     7.l. Method of Payment All payments to a Participant (or to a Participant's
Beneficiary  or estate,  as the case may be) with  respect to the  Participant's
Deferred  Compensation  Account and Vested Share  Account  shall be paid in cash
only, with Share Equivalents valued as set forth in Section 7.2 below.

     7.2. Payment Options

          (i) At the time  each  Director  elects  to make a  deferral  or,  for
     Participants  who are Directors on May 1, 1997, prior to the effective date
     of the Plan, the Participant  shall select a payment option with respect to
     the payment of the  Participant's  Individual  Accounts  from the following
     payment options:

               (a) a lump  sum paid in the  calendar  quarter  first  day of the
          calendar   quarter   following  the  calendar  quarter  in  which  the
          Participant ceases to be a Director;

               (b) payments in substantially  equal annual  installments  over a
          period  of  between  two (2) to ten  (10)  years,  as  elected  by the
          Participant  at the time  he/she  makes  his/her  election  under this
          paragraph (i)(b), commencing in January of the calendar year following
          the calendar year during which the Participant ceases to be a Director
          with Share  Equivalents  in the  Participant's  Vested  Share  Account
          treated as described in paragraph (iii) below; or

               (c) payments in annual  installments over a period of between two
          (2) to ten (10) years as elected by the Participant at the time he/she
          makes his/her  election  under this  paragraph  (i)(c),  commencing in
          January of the calendar year  following the calendar year during which
          the Participant ceases to be a Director, with Share Equivalents in the
          Participant's  Vested Share Account  treated as described in paragraph
          (iv) below.

          (ii) If the payment  option  described in  paragraph  (i)(a) above has
     been elected,  the amount of the lump sum with respect to the Participant's
     Deferred  Compensation Account shall be equal to the amount credited to the
     Participant's  Deferred Compensation Account as of the last business day of
     the calendar quarter  preceding the date of payment,  and the amount of the
     lump sum with respect to the  Participant's  Vested Share  Account shall be
     equal to the Average  Closing Price as of last business day of the calendar
     quarter  preceding  the date of payments  multiplied by the number of Share
     Equivalents  credited to the Participant's  Vested Share Account as of such
     date.

          (iii) If the payment  option  described in paragraph  (i)(b) above has
     been elected,  the value of the Participant's Vested Share Account shall be
     added to the amount in such  Participant's  Deferred  Compensation  Account
     based on the Average Closing Price at the date of the first payment and the
     amount of each  installment  with  respect  to the  Participant's  Deferred
     Compensation   Account   (including   the  amount   transferred   from  the
     Participant's   Vested  Share   Account)   shall  be  paid   annually,   in
     substantially equal installment amounts. The determination of the amount of
     substantially   equal  installment   payments  shall  be  a  fixed  annuity
     computation  determined based on the amount of the  Participant's  Deferred
     Compensation   Account   (including   the  amount   transferred   from  the
     Participant's  Vested Share Account) at the time of the first payment,  the
     annual  rate  of the  Company  Credit  at  that  time  and  the  number  of
     installments  selected,  assuming  compounding  of the Company  Credit on a
     quarterly basis.

          (iv) If the payment  option  described in  paragraph  (i)(c) above has
     been  elected,   the  amount  of  each  installment  with  respect  to  the
     Participant's  Deferred Compensation Account and Vested Share Account shall
     be paid  annually,  in  installment  amounts.  The amount to be distributed
     annually  with respect to Share  Equivalents  shall be computed by dividing
     the number of Share Equivalents in the  Participant's  Vested Share Account
     by the number of installment  payments selected,  with the resulting number
     of Share Equivalents paid in cash, based on the Average Closing Price as of
     the December 31 preceding each date of payment.  Any additional  amounts in
     respect of Share Equivalents  relating to dividend  equivalents  during the
     duration of installment payments shall be included with and paid as part of
     the last installment.

          (v) If the  Participant  fails to elect a payment  option,  the amount
     credited  to the  Participant's  Deferred  Compensation  Account and Vested
     Share Account  shall be  distributed  in a lump sum in accordance  with the
     payment option  described in paragraph (i)(a) and paragraph (ii) above. If,
     at the time a Participant ceases to be a Director, the amount credited to a
     Participant's   Deferred  Compensation  Account  and  the  value  of  Share
     Equivalents credited to a Participant's Share Accounts is less than $25,000
     in the aggregate,  the Board of Directors, in its sole discretion,  may pay
     out  the  amount  credited  to  such  Account  in a  lump  sum  as if  such
     Participant elected distribution under paragraph (i)(a) above.

          (vi)  Notwithstanding  the foregoing,  any amounts in a  Participant's
     Unvested Share Account at the time the Participant  ceases to be a Director
     shall be (a)  forfeited if the  Participant  has not completed at least ten
     (10) Years of Service, or (b) if the Participant has completed at least ten
     (10)  Years of  Service,  shall be paid to the  Participant,  in the manner
     selected in paragraph  (i)(a),  (i)(b),  or (i)(c) above, upon the first to
     occur of (1) attainment of age sixty-five (65),or (2) Disability, provided,
     however, that if the payment option described in paragraph (i)(a) above has
     been selected, the value of such Unvested Share Account shall be determined
     based on the Average Closing Price as of the December 31 preceding the date
     of  payment , and  thereafter  shall be  treated  as if it were part of the
     Participant's   Deferred   Compensation  Account.  If  the  payment  option
     described in paragraph  (i)(b) above has been  selected,  payment  shall be
     made  in  accordance  with  Section  7.2(iii).  If the  payment  option  in
     paragraph  (i)(c)  above  has  been  selected,  payment  shall  be  made in
     accordance  with  Section  7.2(iv).   Notwithstanding  the  foregoing,  any
     benefits in the Unvested Share Account at the date of a Participant's death
     shall be paid to the  Participant's  Beneficiary or estate, as the case may
     be, in accordance with Section 7.3.

     7.3. Payment Upon Death. Notwithstanding any other provision of the Plan to
the  contrary,  within a  reasonable  period  of time  following  the death of a
Participant,  the amount  credited to the  Participant's  Deferred  Compensation
Account and all of the Share  Equivalents  credited to the  Participant's  Share
Accounts  shall  be  paid  by the  Company  in a lump  sum to the  Participant's
Beneficiary.  For  purposes  of this  Section  7.3,  the amount  credited to the
Participant's  Deferred  Compensation Account, and the number and value of Share
Equivalents credited to the Participant's Share Accounts, shall be determined as
of the date of payment  using the  Average  Closing  Price.  A  Participant  may
designate  a  Beneficiary,  in  writing,  in a form  acceptable  to the Board of
Directors. A Participant may revoke a prior designation of a Beneficiary and may
also  designate  a  new  Beneficiary  without  the  consent  of  the  previously
designated  Beneficiary,   provided,  however,  that  such  revocation  and  new
designation  (if any)  are in  writing,  in a form  acceptable  to the  Board of
Directors, and filed with the Board of Directors before the Participant's death.
If the  Participant  does  not  designate  a  Beneficiary,  or if no  designated
Beneficiary  survives  the  Participant,  any  amount  not  distributed  to  the
Participant  during the  Participant's  life shall be paid to the  Participant's
estate in a lump sum in accordance with this Section 7.3.

     7.4. Payment on Unforeseeable Emergency. The Board of Directors may, in its
sole discretion, direct payment to a Participant of all or of any portion of the
vested portion of a  Participant's  Accounts,  notwithstanding  an election of a
payment option under Section 7.2 above,  at any time that the Board of Directors
determines that such Participant has an unforeseeable  emergency,  and then only
to the extent reasonably  necessary to meet the emergency.  For purposes of this
section,  "unforeseeable  emergency"  means  severe  financial  hardship  to the
Participant  resulting from a sudden and  unexpected  illness or accident of the
Participant  or of a dependent  of the  Participant,  loss of the  Participant's
property due to  casualty,  or other  similar  extraordinary  and  unforeseeable
circumstances  arising  as  a  result  of  events  beyond  the  control  of  the
Participant.

                         SECTION 8. OWNERSHIP OF SHARES

     A  Participant  shall have no rights as a  shareholder  of the Company with
respect to any Shares represented by the Share Equivalents described hereunder.

                     SECTION 9. PROHIBITION AGAINST TRANSFER

     The right of a Participant  to receive  payments  under the Plan may not be
transferred  except by will or applicable  laws of descent and  distribution.  A
Participant may not assign, sell, pledge, or otherwise transfer amounts to which
he/she is entitled hereunder prior to payment thereof to the Participant.

                         SECTION 10. GENERAL PROVISIONS

     10.1. Director's Rights Unsecured.  The Plan is unfunded.  The right of any
Participant  to receive  payments of cash under the provisions of the Plan shall
be an unsecured claim against the general assets of the Company.

     10.2.  Administration.  Except as otherwise  provided in the Plan, the Plan
shall be administered by the Board of Directors,  which shall have the authority
to adopt  rules and  regulations  for  carrying  out the Plan,  and which  shall
interpret,  construe,  and  implement the  provisions of the Plan.  This Plan is
intended to comply with Section 16 of the  Securities  Exchange Act of 1934,  as
amended  (the "Act") and the rules  promulgated  thereunder.  Any  election by a
Participant  which  would be in  violation  of the Act or the  rules  thereunder
causing  short-swing  liability shall be deemed  ineffective under the Plan, and
such election shall be deemed to be null and void.

     10.3.  Legal  Opinions.  The Board of  Directors  may  consult  with  legal
counsel,  who may be counsel for the Company or other  counsel,  with respect to
its  obligations  and duties  under the Plan,  or with  respect  to any  action,
proceeding, or any questions of law, and shall not be liable with respect to any
good faith  action  taken,  or  omitted,  by it  pursuant  to the advice of such
counsel.

     10.4.  Liability.  Any  decision  made or  action  taken  by the  Board  of
Directors,  or any employee of the Company or any of its  subsidiaries,  arising
out of or in connection with the construction,  administration,  interpretation,
or  effect  of the  Plan,  shall  be  absolutely  discretionary,  and  shall  be
conclusive  and binding on all parties.  Neither the Board of Directors  nor any
employee of the Company or any of its  subsidiaries  shall be liable for any act
or action hereunder,  whether of omission or commission,  by any other member or
employee or by any agent to whom duties in connection with the administration of
the Plan have been  delegated or, except in  circumstances  involving bad faith,
for anything done or omitted to be done.

     10.5.  Withholding.  The  Company  shall have the right to deduct  from all
payments  hereunder any taxes required by law to be withheld from such payments.
The  recipients of such payments  shall bear all taxes on amounts paid under the
Plan to the extent that no taxes are withheld  thereon,  irrespective of whether
withholding is required.

     10.6.  Legal  Holidays.  If any day on (or on or before) which action under
the Plan must be taken  falls on a  Saturday,  Sunday,  or legal  holiday,  such
action may be taken on (or on or before) the next  succeeding  day that is not a
Saturday,  Sunday, or legal holiday;  provided,  however, that this Section 10.6
shall not permit any action that must be taken in one calendar  year to be taken
in any subsequent calendar year.

               SECTION 11. AMENDMENT, SUSPENSION, AND TERMINATION

     The  Board of  Directors  shall  have the  right at any  time,  and for any
reason, to amend,  suspend, or terminate the Plan,  provided,  however,  that no
amendment,   suspension,  or  termination  shall  reduce  the  number  of  Share
Equivalents or the cash balance in an Individual Account.

                           SECTION 12. APPLICABLE LAW

     The Plan shall be governed by, and construed in accordance  with,  the laws
of the State of Delaware,  except to the extent that such laws are  preempted by
federal law.

                           SECTION 13. EFFECTIVE DATE

     The  effective  date of this  Plan is May 1,  1997.  Nothing  herein  shall
invalidate or adversely affect any previous election, designation,  deferral, or
accrual in accordance with the terms of the Prior Plan that were in effect prior
to the effective date of this Plan.

                          SECTION 14. CHANGE IN CONTROL

     Upon the  occurrence  of a Change in Control,  all Accounts  under the Plan
that are not fully vested as of the date of such  occurrence (and which have not
previously   been   forfeited)   will   become   fully   vested.    Furthermore,
notwithstanding any prior election by a Participant to the contrary, at any time
following a Change in Control a Participant  may elect to accelerate  any or all
payments  due under  the Plan to a single  sum  payment  to be made on a date at
least twelve (12) months subsequent to such election;  provided,  however,  that
such an election may be made for an immediate  single sum payment,  in which six
percent  (6%) of the  amount of the  accelerated  payment  shall be  permanently
forfeited to the Company.  For purposes of this  provision,  a Change in Control
will be deemed to have occurred if:

          (i) any person or persons acting in concert (excluding Company benefit
     plans) becomes the beneficial  owner of securities of the Company having at
     least 20% of the voting power of the Company's then outstanding  securities
     (unless the event causing the 20% threshold to be crossed is an acquisition
     of voting common securities directly from the Company); or

          (ii) the  consummation of any merger or other business  combination of
     the Company,  sale or lease of the Company's  assets or  combination of the
     foregoing  transactions  (the  "Transactions")  other  than  a  Transaction
     immediately  following  which the  shareholders  of the  Company  who owned
     shares  immediately  prior to the  Transaction  (including  any  trustee or
     fiduciary  of any Company  employee  benefit  plan) own, by virtue of their
     prior ownership of the Company's  shares, at least 65% of the voting power,
     directly or indirectly, of (a) the surviving corporation in any such merger
     or other business combination; (b) the purchaser or lessee of the Company's
     assets;  or (c) both the surviving  corporation and the purchaser or lessee
     in the event of any combination of Transactions; or

          (iii)  within any 24 month  period,  the  persons  who were  directors
     immediately before the beginning of such period (the "Incumbent Directors")
     shall  cease (for any reason  other than  death) to  constitute  at least a
     majority  of the  Board or the board of  directors  of a  successor  to the
     Company.  For this  purpose,  any  director  who was not a director  at the
     beginning  of such period  shall be deemed to be an  Incumbent  Director if
     such director was elected to the Board by, or on the  recommendation  of or
     with  the  approval  of,  at least  two-thirds  of the  directors  who then
     qualified  as  Incumbent  Directors  (so  long  as  such  director  was not
     nominated  by a person  who has  expressed  an intent to effect a Change in
     Control or engage in a proxy or other control contest).

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