Document:

Exhibit 10.226

                         THE CHARLES SCHWAB CORPORATION
                          EMPLOYEE STOCK INCENTIVE PLAN
                          as Amended September 20, 2001

Article 1.   Introduction.

     The Plan was adopted by the Board of  Directors  on October 22,  1997.  The
purpose of the Plan is to promote the  long-term  success of the Company and the
creation of incremental  stockholder value by (a) encouraging Employees to focus
on  long-range  objectives,  (b)  encouraging  the  attraction  and retention of
Employees with exceptional  qualifications and (c) linking Employees directly to
stockholder  interests.  The Plan seeks to achieve this purpose by providing for
Awards in the form of Restricted  Shares or Options.  The Plan shall be governed
by, and construed in accordance with, the laws of the State of Delaware.

Article 2.   Administration.

     2.1       The  Committee.  The Plan shall be administered by the Committee.
The Committee shall consist of two or more non-employee Directors,  who shall be
appointed by the Board.

     2.2       Committee  Responsibilities.   The  Committee  shall  select  the
Employees  who are to  receive  Awards  under the Plan,  determine  the  amount,
vesting  requirements  and other  conditions  of such Awards,  may interpret the
Plan,  and make all other  decisions  relating to the operation of the Plan. The
Committee  may  adopt  such  rules  or  guidelines  as it deems  appropriate  to
implement  the  Plan,  and  may,  in  its   discretion,   delegate  any  of  its
responsibilities   to  such  parties  as  it  deems  proper.   The   Committee's
determinations under the Plan shall be final and binding on all persons.

Article 3.   Limitation on Awards.

     The  aggregate  number of Restricted  Shares and Options  awarded under the
Plan  shall be  determined  by the Board  from time to time.  If any  Restricted
Shares or Options  are  forfeited,  or if any  Options  terminate  for any other
reason  before being  exercised,  then such  Restricted  Shares or Options shall
again become available for Awards under the Plan. The limitation of this Article
3 shall be subject to  adjustment  pursuant  to  Article  10. Any Common  Shares
issued  pursuant to the Plan may be authorized  but unissued  shares or treasury
shares.

Article 4.  Eligibility.

     General Rule. The Committee  shall make all  determinations  concerning the
Employees who shall be eligible to  participate  in the Plan,  and the awards to
each Participant.

Article 5.  Options.

     5.1       Stock Option Agreement.  Each  grant  of an Option under the Plan
shall be  evidenced  by a Stock  Option  Agreement  between the Optionee and the
Company.  Such Option shall be subject to all applicable terms and conditions of
the Plan,  and may be subject to any other  terms and  conditions  which are not
inconsistent  with  the Plan and  which  the  Committee  deems  appropriate  for
inclusion in a Stock  Option  Agreement.  The  provisions  of the various  Stock
Option Agreements entered into under the Plan need not be identical. In the case
of an  Employee  who is subject to the tax laws of a foreign  jurisdiction,  the
Committee may designate all or any part of an Option as an option qualifying for
favorable tax treatment under the laws of such foreign jurisdiction.

     5.2       Options Nontransferability.  No  Option  granted  under  the Plan
shall be  transferable by the Optionee other than by will or the laws of descent
and distribution. An Option may be exercised during the lifetime of the Optionee
only by him or her. No Option or interest therein may be transferred,  assigned,
pledged or hypothecated  by the Optionee during his or her lifetime,  whether by
operation of law or otherwise,  or be made subject to  execution,  attachment or
similar process.

     5.3       Number of Shares.  Each  Stock Option Agreement shall specify the
number of  Common  Shares  subject  to the  Option  and  shall  provide  for the
adjustment of such number in accordance with Article 10.

     5.4       Exercise Price.  Each  Stock  Option  Agreement shall specify the
Exercise  Price.  The Exercise  Price under an Option shall not be less than 100
percent of the Fair Market Value of a Common Share on the date of grant. Subject
to the  preceding  sentence,  the  Exercise  Price  under  any  Option  shall be
determined by the  Committee.  The Exercise Price shall be payable in accordance
with Article 6.

     5.5       Exercisability  and  Term.  Each  Stock  Option  Agreement  shall
specify  the  date  when  all or any  installment  of the  Option  is to  become
exercisable.  The Stock  Option  Agreement  shall also  specify  the term of the
Option.  Subject to the preceding  sentence,  the Committee shall determine when
all or any part of an Option is to become exercisable and when such Option is to
expire;  provided  that,  in  appropriate  cases,  the  Company  shall  have the
discretion to extend the term of an Option or the time within  which,  following
termination  of  employment,  an Option may be exercised,  or to accelerate  the
exercisability of an Option. A Stock Option Agreement may provide for expiration
prior to the end of its term in the event of the  termination  of the Optionee's
employment  and may provide for the suspension of vesting when an employee is on
a leave of absence  for a period in excess of six months in  appropriate  cases;
provided that the exercisability of Options shall be accelerated in the event of
the  Participant's  death or  Disability  and,  in the case of  Retirement,  the
exercisability of all outstanding  Options shall be accelerated,  other than any
Options  that had been  granted  within two years of the date of the  Optionee's
Retirement.  Options may also be awarded in combination with Restricted  Shares,
and such an Award may provide  that the Options will not be  exercisable  unless
the related Restricted Shares are forfeited. In addition,  Options granted under
this Section 5 may be granted subject to forfeiture provisions which provide for
forfeiture of the Option upon the exercise of tandem awards,  the terms of which
are established in other programs of the Company.

     5.6       Effect  of  Change  in  Control.   The  Committee  (in  its  sole
discretion) may determine,  at the time of granting an Option,  that such Option
shall become fully  exercisable  as to all Common Shares  subject to such Option
immediately preceding any Change in Control with respect to the Company.

     5.7       Restrictions on Transfer of  Common  Shares.  Any  Common  Shares
issued upon  exercise of an Option shall be subject to such  special  forfeiture
conditions,  rights of  repurchase,  rights of first refusal and other  transfer
restrictions  as the Committee may  determine.  Such  restrictions  shall be set
forth in the  applicable  Stock Option  Agreement and shall apply in addition to
any general restrictions that may apply to all holders of Common Shares.

     5.8       Authorization of Replacement Options. Concurrently with the grant
of any  Option  to a  Participant,  the  Committee  may  authorize  the grant of
Replacement  Options.  If  Replacement  Options  have  been  authorized  by  the
Committee  with  respect  to a  particular  award of  Options  (the  "Underlying
Options"),  the Option Agreement with respect to the Underlying Options shall so
state, and the terms and conditions of the Replacement Options shall be provided
therein.  The grant of any Replacement  Options shall be effective only upon the
exercise of the Underlying  Options through the use of Common Shares pursuant to
Section 6.2 or Section 6.3. The number of  Replacement  Options  shall equal the
number of Common  Shares used to exercise the  Underlying  Options,  and, if the
Option  Agreement so provides,  the number of Common  Shares used to satisfy any
tax withholding  requirements incident to the exercise of the Underlying Options
in accordance  with Section 13.2.  Upon the exercise of the Underlying  Options,
the  Replacement  Options  shall be evidenced by an amendment to the  Underlying
Option  Agreement.  The Exercise Price of a Replacement  Option shall be no less
than  the Fair  Market  Value  of a  Common  Share on the date the  grant of the
Replacement Option becomes effective.  The term of each Replacement Option shall
be equal to the remaining term of the Underlying Option. No Replacement  Options
shall be granted to Optionees when Underlying  Options are exercised pursuant to
the terms of the Plan and the Underlying Option Agreement following  termination
of the  Optionee's  employment.  The  Committee,  in its  sole  discretion,  may
establish such other terms and conditions  for  Replacement  Options as it deems
appropriate.

     5.9       Options Granted to Non-United States Employees.  In  the  case of
Employees who are subject to the tax laws of a foreign jurisdiction, the Company
may issue Options to such  Employees that contain terms required to conform with
any requirements for favorable tax treatment imposed by the laws of such foreign
jurisdiction,  or as  otherwise  may be  required  by the  laws of such  foreign
jurisdiction.  The  terms of any such  Options  shall be  governed  by the Plan,
subject to the terms of any Addendum to the Plan specifically applicable to such
Options.

     5.10      Effect  of  Job  Elimination.  Notwithstanding  anything  to  the
contrary  contained in the Plan or in any Stock Option  Agreement or Stock Award
Agreement  entered  into with respect to an Award  pursuant to the Plan,  in the
case of a  Participant  who is an Officer,  and who becomes  entitled to receive
payments  with  respect to a Severance  Period  pursuant  to the Charles  Schwab
Severance Pay Plan (the "Severance  Plan") on account of a Job Elimination,  the
terms  of the Plan and any  Stock  Option  Agreement  or Stock  Award  Agreement
entered  into  with  respect  to an  Award  shall be  applied  by  treating  the
Participant as if the Participant had terminated employment on the Participant's
Termination  Date.  For purposes of applying  this Section,  the terms  Officer,
Severance Period,  Termination Date, and Job Elimination shall have the meanings
set forth in the Severance Plan.

Article 6.   Payment for Option Shares.

     6.1       General Rule.  The  entire Exercise Price of Common Shares issued
upon  exercise of Options  shall be payable in cash at the time when such Common
Shares are  purchased,  except that the Committee may at any time accept payment
pursuant to Section 6.2 or 6.3.

     6.2       Surrender of Stock.  To  the  extent  that  this  Section  6.2 is
applicable,  payment for all or any part of the Exercise  Price may be made with
Common Shares which are surrendered to the Company.  Such Common Shares shall be
valued at their Fair  Market  Value on the date when the new  Common  Shares are
purchased under the Plan. In the event that the Common Shares being  surrendered
are  Restricted  Shares that have not yet become vested,  the same  restrictions
shall be imposed upon the new Common Shares being purchased.

     6.3       Exercise/Sale.  To  the  extent  this  Section 6.3 is applicable,
payment may be made by the delivery (on a form  prescribed by the Company) of an
irrevocable  direction  to Charles  Schwab & Co.,  Inc.  to sell  Common  Shares
(including  the Common  Shares to be issued upon exercise of the Options) and to
deliver  all or part of the sales  proceeds  to the Company in payment of all or
part of the Exercise Price and any withholding taxes.

Article 7.   Restricted Shares.

     7.1       Time,  Amount  and  Form  of Awards.   The  Committee  may  grant
Restricted Shares with respect to an Award Year during such Award Year or at any
time  thereafter.  Each such Award shall be evidenced by a Stock Award Agreement
between  the Award  recipient  and the  Company.  The  amount  of each  Award of
Restricted  Shares shall be determined by the Committee.  Restricted  Shares may
also be awarded in combination with Options,  and such an Award may provide that
the  Restricted  Shares will be forfeited in the event that the related  Options
are exercised.

     7.2       Payment for Restricted Share Awards.  To the extent that an Award
is granted in the form of Restricted Shares, the Award recipient, as a condition
to the grant of such  Award,  shall be  required  to pay the  Company in cash an
amount equal to the par value of such Restricted Shares.

     7.3       Vesting or Issuance Conditions.  Each  Award of Restricted Shares
shall  become  vested,  in full or in  installments,  upon  satisfaction  of the
conditions  specified in the Stock Award  Agreement.  The Committee shall select
the vesting  conditions in the case of Restricted Shares which may be based upon
the  Participant's  service,  the  Participant's   performance,   the  Company's
performance or such other criteria as the Committee may adopt; provided that, in
the case of an Award of Restricted Shares where vesting is based entirely on the
Participant's  service,  (i) vesting  shall be  accelerated  in the event of the
Participant's death or Disability; (ii) in the case of Retirement, vesting shall
be  accelerated  for all  Restricted  Shares that had been granted more than two
years prior to the date of the Participant's Retirement; and (iii) vesting shall
be suspended when an employee is on a leave of absence for a period in excess of
six months in appropriate cases, as determined by the Company. The Committee, in
its sole discretion, may determine, at the time of making an Award of Restricted
Shares,  that such Award shall become fully vested in the event that a Change in
Control occurs with respect to the Company.

Article 8.   Claims Procedures.

     Claims  for  benefits  under the Plan  shall be filed in  writing  with the
Committee on forms supplied by the Committee.  Written notice of the disposition
of a claim shall be furnished to the claimant  within 90 days after the claim is
filed.  If the claim is denied,  the notice of  disposition  shall set forth the
specific  reasons for the denial,  citations to the pertinent  provisions of the
Plan, and, where appropriate,  an explanation as to how the claimant can perfect
the claim. If the claimant wishes further consideration of his or her claim, the
claimant may appeal a denied claim to the Committee  (or to a person  designated
by the Committee) for further review. Such appeal shall be filed in writing with
the  Committee  on a form  supplied by the  Committee,  together  with a written
statement of the claimant's position, no later than 90 days following receipt by
the  claimant  of  written  notice  of the  denial of his or her  claim.  If the
claimant so requests,  the  Committee  shall  schedule a hearing.  A decision on
review  shall be made  after a full and fair  review  of the  claim and shall be
delivered in writing to the claimant no later than 60 days after the Committee's
receipt of the notice of appeal,  unless  special  circumstances  (including the
need to hold a hearing)  require an extension of time for processing the appeal,
in which case a written decision on review shall be delivered to the claimant as
soon as possible  but not later than 120 days after the  Committee's  receipt of
the  appeal  notice.  The  claimant  shall be  notified  in  writing of any such
extension of time. The written decision on review shall include specific reasons
for the  decision,  written  in a  manner  calculated  to be  understood  by the
claimant, and shall specifically refer to the pertinent Plan provisions on which
it is based. All  determinations  of the Committee shall be final and binding on
Participants and their beneficiaries.

Article 9.   Voting Rights and Dividends.

     All holders of Restricted Shares shall have the same voting,  dividend, and
other rights as the Company's other stockholders.

Article 10.   Protection Against Dilution; Adjustment of Awards.

     10.1      General.  In the event of a subdivision of the outstanding Common
Shares, a declaration of a dividend payable in Common Shares, a declaration of a
dividend  payable  in  a  form  other  than  Common  Shares,  a  combination  or
consolidation  of  the  outstanding  Common  Shares  (by   reclassification   or
otherwise) into a lesser number of Common Shares, a recapitalization,  a spinoff
or a similar occurrence, the Committee shall make appropriate adjustments in one
or more of (a) the number of Options and Restricted  Shares available for future
Awards  under  Article  3, (b) the  number  of  Common  Shares  covered  by each
outstanding Option or (c) the Exercise Price under each outstanding Option.

     10.2      Reorganizations.  In  the  event that the Company is a party to a
merger or other reorganization,  outstanding Options and Restricted Shares shall
be subject to the  agreement of merger or  reorganization.  Such  agreement  may
provide,  without  limitation,  for the assumption of outstanding  Awards by the
surviving  corporation or its parent,  for their continuation by the Company (if
the  Company  is a  surviving  corporation),  for  accelerated  vesting  or  for
settlement in cash.

     10.3      Reservation of Rights.  Except  as provided in this Article 10, a
Participant  shall have no rights by reason of any subdivision or  consolidation
of shares of stock of any class,  the payment of any stock dividend or any other
increase or decrease in the number of shares of stock of any class. Any issue by
the  Company of shares of stock of any class,  or  securities  convertible  into
shares of stock of any class,  shall not  affect,  and no  adjustment  by reason
thereof  shall be made with  respect to, the number or Exercise  Price of Common
Shares  subject to an Option.  The grant of an Award  pursuant to the Plan shall
not  affect in any way the right or power of the  Company  to make  adjustments,
reclassifications,  reorganizations  or  changes  of  its  capital  or  business
structure, to merge or consolidate or to dissolve,  liquidate,  sell or transfer
all or any part of its business or assets.

Article 11.  Limitation of Rights.

     11.1      Employment Rights.  Neither  the Plan nor any Award granted under
the Plan shall be deemed to give any  individual  a right to remain  employed by
the Company or any  Subsidiary.  The Company  and its  Subsidiaries  reserve the
right to terminate the  employment of any employee at any time,  with or without
cause, subject only to a written employment agreement (if any).

     11.2      Stockholders'  Rights.  A  Participant  shall  have  no  dividend
rights,  voting or other  rights as a  stockholder  with  respect  to any Common
Shares  covered by his or her Award prior to the issuance of such Common Shares,
whether  by  issuance  of a  certificate,  book  entry  or other  procedure.  No
adjustment shall be made for cash dividends or other rights for which the record
date is prior to the date when such  certificate is issued,  except as expressly
provided in Articles 7, 9 and 10.

     11.3      Government   Regulations.    Any  other  provision  of  the  Plan
notwithstanding, the obligations of the Company with respect to Common Shares to
be issued  pursuant to the Plan shall be subject to all applicable  laws,  rules
and  regulations,  and such  approvals  by any  governmental  agencies as may be
required.  The Company reserves the right to restrict,  in whole or in part, the
delivery of Common Shares pursuant to any Award until such time as:

     (a)  Any legal requirements  or  regulations  have been met relating to the
issuance  of such  Common  Shares  or to their  registration,  qualification  or
exemption from  registration or qualification  under the Securities Act of 1933,
as amended, or any applicable state securities laws; and

     (b)  Satisfactory  assurances  have been received that such Common  Shares,
when  issued,  will be duly  listed on the New York Stock  Exchange or any other
securities exchange on which Common Shares are then listed.

Article 12.  Withholding Taxes.

     12.1      General.  To  the  extent  required by applicable federal, state,
local or foreign law, the  recipient  of any payment or  distribution  under the
Plan shall make arrangements satisfactory to the Company for the satisfaction of
any  withholding  tax  obligations  that  arise by  reason  of such  payment  or
distribution.  The  Company  shall  not be  required  to make  such  payment  or
distribution until such obligations are satisfied.

     12.2      Withholding On Options or Restricted Shares.  The  Committee  may
permit an Optionee who exercises  Options,  or who receives Awards of Restricted
Shares,  to satisfy all or part of his or her  withholding  tax  obligations  by
having the Company  withhold a portion of the Common Shares that otherwise would
be issued to him or her under such Awards. Such Common Shares shall be valued at
their Fair Market  Value on the date when taxes  otherwise  would be withheld in
cash.  The payment of  withholding  taxes by  surrendering  Common Shares to the
Company, if permitted by the Committee, shall be subject to such restrictions as
the Committee may impose,  including any  restrictions  required by rules of the
Securities and Exchange Commission.

Article 13.   Assignment or Transfer of Award.

     Any Award  granted  under  the Plan  shall  not be  anticipated,  assigned,
attached,  garnished,  optioned,  transferred  or made subject to any creditor's
process,  whether  voluntarily,  involuntarily or by operation of law.  However,
this  Article  13 shall  not  preclude  (i) a  Participant  from  designating  a
beneficiary  to  succeed,  after  the  Participant's  death,  to  those  of  the
Participant's  Awards (including without  limitation,  the right to exercise any
unexercised  Options) as may be  determined  by the Company from time to time in
its sole  discretion,  or (ii) a transfer of any Award  hereunder by will or the
laws of descent or distribution.

Article 14.   Future of Plans.

     14.1      Term of the Plan.  The  Plan,  as  set forth herein, shall become
effective  on  October  22, 1997.  The  Plan  shall remain in effect until it is
terminated under Section 14.2.

     14.2      Amendment  or Termination. The Committee may, at any time and for
any  reason,  amend  or terminate the Plan.

     14.3      Effect of Amendment or Termination.  No Award shall be made under
the Plan after the  termination  thereof.  The  termination  of the Plan, or any
amendment  thereof,  shall not adversely  affect the rights of any holder of any
Option or Restricted Shares previously granted under the Plan.

Article 15.   Definitions.

     15.1      "Award" means any award of an Option or a Restricted Share  under
the Plan.

     15.2      "Award Year"  means  a fiscal year beginning January 1 and ending
December 31 with respect to which an Award may be granted.

     15.3      "Board"  means the Company's Board of Directors,  a s constituted
from time to time.

     15.4      "Change in Control"  means the occurrence of any of the following
events after the effective date of the Plan as set out in Section 14.1:

     (a)  A change in control  required to be reported  pursuant to Item 6(e) of
Schedule 14A of Regulation 14A under the Exchange Act;

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

     (c)  Any "person" (as such term is used in sections  12(d) and 13(d) of the
Exchange  Act)  becomes  the  beneficial  owner,  directly  or  indirectly,   of
securities of the Company representing 20 percent or more of the combined voting
power of the Company's then  outstanding  securities  ordinarily (and apart from
rights  accruing  under  special  circumstances)  having  the  right  to vote at
elections of directors (the "Base Capital Stock");  provided,  however, that any
change  in the  relative  beneficial  ownership  of  securities  of  any  person
resulting solely from a reduction in the aggregate number of outstanding  shares
of Base Capital Stock, and any decrease thereafter in such person's ownership of
securities,  shall be  disregarded  until such person  increases  in any manner,
directly or indirectly,  such person's beneficial ownership of any securities of
the Company.

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

     15.6      "Committee"  means  the  Compensation  Committee of the Board, as
constituted from time to time.

     15.7      "Common Share"  means  one  share  of  the  common  stock  of the
Company.

     15.8      "Company"  means  The  Charles  Schwab  Corporation,  a  Delaware
corporation.

     15.9      "Disability"  means  the  inability  to engage in any substantial
gainful  activity   considering  the  Participant's   age,  education  and  work
experience by reason of any medically  determined  physical or mental impairment
that has continued without  interruption for a period of at least six months and
that can be expected  to be of long,  continued  and  indefinite  duration.  All
determinations  as to whether a Participant  has incurred a Disability  shall be
made by the  Committee,  the  findings  of which  shall be  final,  binding  and
conclusive.

     15.10     "Employee"  means a common-law employee, other than an officer of
the Company or any Subsidiary, as determined by the Committee.

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

     15.12     "Exchange Act"  means  the  Securities  Exchange  Act of 1934, as
amended.

     15.13     "Exercise Price"  means the amount for which one Common Share may
be purchased upon exercise of an Option,  as  specified  by the Committee in the
applicable Stock Option Agreement.

     15.14     "Fair Market  Value" means the market price of  a  Common  Share,
determined  by the  committee as follows:

     (a)  If the Common  Share  was  traded on a stock  exchange  on the date in
question,  then the Fair  Market  Value  shall  be  equal to the  closing  price
reported by the applicable composite-transactions report for such date;

     (b)  If  the  Common  Share  was  traded  over-the-counter  on  the date in
question and was  classified as a national  market  issue,  then the Fair Market
Value shall be equal to the last  transaction  price quoted by the NASDAQ system
for such date;

     (c)  If  the  Common  Share  was  traded  over-the-counter  on  the date in
question but was not classified as a national market issue, then the Fair Market
Value shall be equal to the mean between the last  reported  representative  bid
and asked prices quoted by the NASDAQ system for such date; and

     (d)  If  none  of  the  foregoing  provisions  is applicable, then the Fair
Market Value shall be determined by the Committee in good faith on such basis as
it deems appropriate.

     15.15     "Option"  means  an  employee  stock option, other than an option
described  in  sections  422 through  424 of the Code,  including a  Replacement
Option,  granted  under the Plan and entitling the holder to purchase one Common
Share.

     15.16     "Optionee"  means an  individual,  or his or her  estate, legatee
or heirs at law that holds an Option.

     15.17     "Participant" means an Employee who has received an Award.

     15.18     "Plan" means this Charles Schwab  Employee Stock Incentive  Plan,
as it may be amended from time to time.

     15.19     "Replacement Option"  means  an  Option  that  is  granted when a
Participant  uses a Common  Share held or to be acquired by the  Participant  to
exercise an Option and/or to satisfy tax  withholding  requirements  incident to
the exercise of an Option.

     15.20     "Restricted Share"  means a Common Share awarded to a Participant
under the Plan.

     15.21.    "Retirement"  shall  mean  any  termination  of  employment of an
Optionee  for any reason  other than  death at any time after the  Optionee  has
attained  fifty  (50),  but  only  if,  at the  time  of such  termination,  the
Participant has been credited with at least seven (7) Years of Service under the
Charles Schwab Profit Sharing and Employee Stock  Ownership  Plan. The foregoing
definition shall apply to all Stock Option  Agreements  entered into pursuant to
the Plan,  irrespective of any definition to the contrary  contained in any such
Stock Option Agreement.

     15.22     "Stock Award Agreement"  means  the agreement between the Company
and the recipient of a Restricted Share which contains the terms, conditions and
restrictions pertaining to such Restricted Share.

     15.23     "Stock Option Agreement"  means the agreement between the Company
and an Optionee which contains the terms, conditions and restrictions pertaining
to his or her option.

     15.24     "Subsidiary" means any corporation,  if the Company and/or one or
more  other  Subsidiaries  own not less than 50  percent  of the total  combined
voting  power  of all  classes  of  outstanding  stock  of such  corporation.  A
corporation that attains the status of a Subsidiary on a date after the adoption
of the Plan shall be considered a Subsidiary commencing as of such date.

<PAGE>

                                    ADDENDUM

              THE UNITED KINGDOM 2001 EMPLOYEE SHARE OPTION SCHEME

                        OF THE CHARLES SCHWAB CORPORATION

This Addendum to The Charles Schwab  Corporation  Employee Stock  Incentive Plan
(the  "Employee  Plan") shall  constitute  the rules of the United  Kingdom 2001
Employee Share Option Scheme  ("Scheme") of The Charles Schwab  Corporation (the
"Company"), as approved by the United Kingdom's Board of Inland Revenue ("Inland
Revenue") under Schedule 9 to the United Kingdom's Income and Corporation  Taxes
Act 1988 (the "Act").

Definitions

1    Except as specifically set forth in this Addendum, the terms and conditions
     of the Employee Plan shall apply to the Scheme. In addition,  the following
     definitions will apply to this Scheme:

     1.1  References  to the  "Act"  are  to the  United  Kingdom's  Income  and
          Corporation Taxes Act 1998.

     1.2  The  expression  "New  Option"  means an  Option  over  shares  in the
          Acquiring  Company  (as  defined  in rule 5.2) or some  other  company
          falling  within  paragraph  10(b) or 10(c) of  Schedule  9 to the Act,
          meeting the requirements of sub-paragraphs 15(3)(a) to (d) of Schedule
          9 to the Act,  granted in consideration of the release of a subsisting
          Option within the "appropriate  period" (as defined by paragraph 15(2)
          of Schedule 9 to the Act).

     1.3  The expression  "Option-holder" means the person to whom an option has
          been granted  under this Scheme and  references  to "Optionee " in the
          Employee Plan shall be construed accordingly.

     1.4  The  expression  "Participating  Company"  means the  Company  and any
          company which is under the control of the Company,  within the meaning
          of  section  840 of the Act,  and to which the  Committee  shall  have
          resolved that this Scheme shall for the time being extend.

     1.5  References to  "Qualifying  Shares" in this Addendum are references to
          Shares  which  satisfy  the  requirements  of  paragraphs  10 to 14 of
          Schedule 9 to the Act.

     1.6  References  to "Shares" in this  addendum are  references to shares or
          shares of Common Stock in the Company.

Eligibility and Grant

2.1  Options  may be granted  under the  Scheme to a person  who is an  employee
     (other  than  one  who  is  a  director)  or  a  full-time  director  of  a
     Participating  Company, and for this purpose a person shall be treated as a
     full-time  director of a  Participating  Company if he is obliged to devote
     not less than 25 hours a week, excluding meal breaks, to the performance of
     the  duties of his office or  employment  with that  company  (or with that
     company and any other company which is a Participating Company). References
     in the Employee Plan to "employee" shall be construed accordingly.

2.2  No Options  under this Scheme may be granted to, or exercised  by, a person
     who is not eligible to  participate  by virtue of paragraph 8 of Schedule 9
     to the Act, as modified by section 187 (3) (a) of the Act.

2.3  No Option may be granted at a time when the Shares over which it is granted
     are not Qualifying Shares.

2.4  For the purposes of Article 5.4, the Fair Market  Value,  as  determined by
     the  Committee  in  respect of any Option  under this  Scheme,  shall be as
     defined in Article  15.14(a)  of the  Employee  Plan if the Stock  Exchange
     referred to in that Article is the New York Stock  Exchange and the closing
     price  referred  to in that  Article is the  closing  price on the New York
     Stock  Exchange  and in any other  case  shall be not less than the  market
     value of the shares as agreed in advance  with the  United  Kingdom  Inland
     Revenue Shares Valuation Division.

2.5  Only Options (as defined in the Employee  Plan) shall be granted under this
     Scheme and no  Replacement  Options or  Restricted  Shares as  outlined  in
     Articles 5.8 and 7 respectively of the Employee Plan shall be granted under
     this Scheme. Articles 5.8, 7 and 9 of the Employee Plan shall not apply for
     the purposes of this Scheme.

2.6  No Option  granted  under this Scheme  shall be  exercisable  more than ten
     years  after the date the Option is granted.  Article  5.5 of the  Employee
     Plan shall be constructed accordingly.

Limitation on Awards

3.   For the  purposes of Article 3 of the  Employee  Plan,  any Option  granted
     under this  Scheme to any person  shall be limited  and take effect so that
     the  sterling  equivalent  of the amount  payable on the  exercise  of such
     Option, when added to the aggregate sterling equivalent of Shares which are
     capable  of  being  acquired  under  subsisting   rights  obtained  by  the
     Participant under this Scheme or any other share option scheme  established
     by the Company or any associated  company (within the meaning  contained in
     section 416 of the Act) of the Company and approved under Schedule 9 to the
     Act (but excluding any rights obtained under a savings related share option
     scheme) shall not exceed the limit set out in paragraph 28 of Schedule 9 to
     the Act.

     For the purposes of this  Scheme,  the  sterling  equivalent  of any amount
     payable on the  exercise of an option  shall be the amount  converted  into
     pounds  sterling  at the highest  buying rate shown in the day's  spread as
     published in the Financial Times for the date of grant of such option or at
     such other rate as may be agreed from time to time with the United  Kingdom
     Inland Revenue Shares Valuation Division.

Exercise

4.1  No Option may be exercised  whilst this Scheme is and is intended to remain
     approved by the Inland  Revenue  unless the Shares  which would be acquired
     are Qualifying Shares.

4.2  Any terms and conditions  imposed by the Committee under Article 5.1 of the
     Employee  Plan for the exercise of Options  granted under this Scheme shall
     be factual and objective,  laid down at the time of grant, and shall not be
     amended  or waived  after  the time of grant  unless  event or events  have
     occurred  such that the  Committee  reasonably  believes  that the original
     conditions  as amended or waived will be a fairer  measure and would not be
     less  difficult  to satisfy  than the original  condition.  Any  conditions
     imposed shall not be effective  until approved by the United Kingdom Inland
     Revenue.  Any other terms  determined by the Company may only be imposed if
     they otherwise  comply with the  requirements  set out in Schedule 9 to the
     Act.

4.3  Notwithstanding  Article  5.2  of  the  Employee  Plan,  no  Option  may be
     transferred by will, and on the death of the  Option-holder  any subsisting
     Option may be exercised by his personal  representatives not later than one
     year after the date of his death. The proviso in Article 13 of the Employee
     Plan shall not apply.

4.4  Article 5.5 of the Employee Plan shall not apply to this Scheme. Each Stock
     Option  Agreement  shall specify the date when all or any instalment of the
     Option is to become  exercisable  (the  vesting of the  Option).  The Stock
     Option Agreement shall also specify the term of the Option.  Any subsisting
     Options  may be  exercised  by the  Participant  or,  if  deceased,  by his
     personal  representatives in whole or in part (including any unvested part)
     at the  time  of or,  subject  to  rule  4.5,  at any  time  following  the
     occurrence of the earliest of the following events:

     (i)  the death of the Participant; and

     (ii) upon  the  Participant  ceasing  to be a  director  or  employee  of a
          Participating  Company or the Company or any  Subsidiary as defined in
          Article 15.24 of the Employee Plan where that  cessation was by reason
          of Disability, injury or Retirement.

4.5  An  Option  shall  lapse and become thereafter incapable of exercise on the
     earliest of the following events:

     (i)  the tenth anniversary of the date the Option is granted;

     (ii) where  a  Participant  ceases  to  be  a  director  or  employee  of a
          Participating  Company or the Company or any  Subsidiary as defined in
          Article 15.24 of the Employee  Plan by reason of death,  Disability or
          injury, the first anniversary following such cessation;

     (iii)where  a  Participant  ceases  to  be  a  director  or  employee  of a
          Participating  Company or the Company or any  Subsidiary as defined in
          Article 15.24 of the Employee Plan by reason of Retirement, the second
          anniversary following such cessation; and

     (iv) the end of the period of exercisability  determined in accordance with
          rule 5.

4.6  Payment  for Shares on the  exercise of Options  granted  under this Scheme
     shall be in cash and not through the  delivery of Shares of Common Stock or
     otherwise as described in Articles 6.2 and 6.3 of the Employee Plan.

4.7  Shares shall be issued and the  Option-holder  registered  as a shareholder
     within 30 days of receipt of a valid exercise notice.

4.8  Notwithstanding  the provisions of Article 5.7 or 6.2 of the Employee Plan,
     any Shares  issued upon the  exercise of an Option  under this Scheme shall
     not be subject to any forfeiture conditions,  rights of repurchase,  rights
     of first refusal or any other  transfer  restrictions  that do not apply to
     all holders of Shares.

4.9  Article 12.2 shall apply so that the Company  shall not be obliged to issue
     the shares until the obligations are satisfied .

4.10 The Company shall keep available  sufficient  unissued  Shares or Shares in
     the Treasury to satisfy the exercise in full of all Options  granted  under
     this Scheme and for the time being remaining capable of being exercised.

Takeover, Change of Control

5.1  If any person obtains control of the Company (within the meaning of section
     840 of the Act) as a result of making:

     (i)  a general  offer to acquire the whole of the issued  share  capital of
          the Company  (other than that which is already  owned by him) which is
          unconditional  or  which  is made on a  condition  such  that if it is
          satisfied  the  person  making  the  offer  will have  control  of the
          Company; or

     (ii) a general offer to acquire all the shares (other than shares which are
          already  owned by him) in the  Company  which are of the same class as
          Shares subject to a subsisting Option,

     then the Committee shall notify all  Participants as soon as is practicable
     after the change of control.  Any  subsisting  Option may be exercised from
     the date of the receipt of that  notification  up to the expiry of a period
     ending  six  months  from the time  when the  person  making  the offer has
     obtained  control of the  Company  and any  condition  subject to which the
     offer is made has been satisfied.

5.2  If as a result of the events  specified in rule 5.1 an "Acquiring  Company"
     (as defined in paragraph 15 of Schedule 9 to the Act) has obtained  control
     of the Company,  the Participant  may, if the Acquiring  Company so agrees,
     release any subsisting  Option he holds in consideration for the grant of a
     New Option.

5.3  Where the circumstances noted in rule 5.2 apply, New Options may be granted
     within  the  terms  of  paragraph  15(1)  of  Schedule  9  to  the  Act  in
     consideration  for the  release of Options  previously  granted  under this
     Scheme. Such New Options are deemed to be equivalent to the old Options and
     to have been  granted  within the terms of this  Scheme,  provided  the New
     Options  satisfy the conditions in paragraph 15(3) of Schedule 9 to the Act
     and the release of the Option takes place within six months of the date the
     Acquiring  Company obtains  control of the Company.  A New Option issued in
     consideration  of the release of an Option  shall be evidenced by an option
     which shall import the relevant provisions of this Scheme.

5.4  A New Option shall,  for all other  purposes of this Scheme,  be treated as
     having been acquired at the same time as the corresponding released Option.

5.5  If any person obtains  control of the Company other than as a result of the
     events  specified  in  rule  5.1,  then  the  Committee  shall  notify  all
     Participants  as soon as  practicable  after  the  change of  control.  Any
     subsisting  Option may be  exercised  from the date of the  receipt of that
     notification  up to the expiry of a period  ending six months from the time
     when the person obtains control of the Company.

5.6  If, as a result of the events  specified in rules 5.1 or 5.3, a company has
     obtained  control of the Company,  the  Committee  shall be entitled at any
     time to require all holders of subsisting Options to exercise those Options
     within 30 days by notice in writing to the Participant to this effect.

5.7  The periods of exercisability under this rule 5 and the date of lapse under
     rule 4.5 are those of whichever of the  pre-conditions of rules 5.1, 5.3 or
     5.4  are  first   achieved.   The  subsequent   achievement  of  any  other
     pre-conditions  will not  cause a period of  exercisability  to begin nor a
     date of lapse to arise.

5.8  For the  purpose  of this rule 5 other  than rule  5.2,  a person  shall be
     deemed to have  obtained  control of the Company if he and others acting in
     concert with him have together obtained control of it.

5.9  The exercise of an Option pursuant to the preceding provisions of this rule
     5 shall not be subject to any conditions imposed pursuant to Article 5.1 of
     the Employee Plan as amended by rule 4.2.

Employment Relationship

6.   With respect to Options  granted  pursuant to he Scheme,  Article 11 of the
     Employee  Plan  shall be  subject  to the  following:  Any  Participant  or
     Employee shall waive any and all rights to  compensation  or damages on the
     termination  of  his  office  or  employment   with  any  past  or  present
     Participating  Company or Subsidiary for any reason  whatsoever  insofar as
     those rights arise or may arise from his ceasing to have rights under or to
     be  entitled to  exercise  any Option  under this Scheme as a result of the
     termination.  Neither  the grant of an  Option  nor any  benefit  which may
     accrue to a  Participant  on the  exercise of an Option  shall form part of
     that Participant's  remuneration entitlement from his office or employment,
     nor shall the grant of an Option  create  any right or  entitlement  on the
     Participant to have any further Options granted to him under this Scheme if
     at all.

Protection Against Dilution: Variation of Share Capital

7.   With respect to Options granted pursuant to he Scheme,  Article 10.1 of the
     Employee  Plan shall  apply,  but (i)_ with the  omission of the  following
     words and phrases : "a declaration  of a dividend  payable in Common Shares
     (other  than a  bonus  issue  of  shares  with no  cash  alternative)",  "a
     declaration of a dividend  payable in a form other than Common Shares",  "a
     spin-off or similar  occurrence;"  and (ii) as if the following  words were
     added "or any other variation of the issued Common Shares" before the words
     "the Committee".  Adjustments to Options, as described in Article 10 of the
     Employee Plan, shall be at the discretion of the Committee and shall not be
     effective  under this Scheme until  approved by the United  Kingdom  Inland
     Revenue.

Alteration of Scheme rules

8.   The Committee may make such alterations to the provisions of this Scheme as
     may be permitted by Article 14.2 of the Employee  Plan,  provided  that any
     such  alteration  made at a time when this Scheme is to remain  approved by
     the United  Kingdom  Inland  Revenue shall not have effect unless and until
     the  alteration  has the prior  approval  in writing of the United  Kingdom
     Inland Revenue.Exhibit 10.227

                           Benefit Equalization Plan
                                      of
                            U.S. Trust Corporation

             As Amended and Restated effective as of January 1, 2001

1.        Purpose

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

The purpose of the Plan is to provide members of the Employees'  Retirement Plan
of United States Trust Company of New York and Affiliated  Companies,  and their
surviving  spouses,  with  benefits  that are intended to replace  benefits that
would have been payable to them under such plan but for the limitations  imposed
by section  401(a)(17)  of the Code and, for periods  ending prior to January 1,
1997, by section 415 of the Code.

The Plan is intended to constitute  an "excess  benefit  plan",  as that term is
defined in section 3(36) of ERISA, to the extent that the Plan provides benefits
equal to any reduction in benefits under the Retirement Plan attributable solely
to the  limitations  imposed by section 415 of the Code. The Plan is intended to
constitute  an unfunded plan  maintained  primarily for the purpose of providing
deferred  compensation  for "a select group of management or highly  compensated
employees",  within the meaning of sections  201(2),  301(a)(3) and 401(a)(1) of
ERISA, to the extent that the Plan provides any other benefits.

2.        Definitions

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

          "Account"  shall  mean  the  Account  established  for  a  Participant
          pursuant to Section 7.

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

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

          "Beneficiary"  shall  mean  the  person  or  persons  designated  by a
          Participant  in accordance  with Section 15 to receive any amount,  or
          any shares of Common Stock, payable under the Plan by reason of his or
          her death.

          "Benefit Limitations" shall mean (i) the limitation imposed by section
          401(a)(17) of the Code on the amount of an Eligible  Employee's annual
          compensation  that may be taken into account in computing the Eligible
          Employee's  pension  benefit  under the  Retirement  Plan and (ii) the
          limitations  imposed by  section  415 of the Code on the amount of the
          pension benefit  payable to an Eligible  Employee under the Retirement
          Plan.

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

          "Business  Day" shall mean any day on which  Common Stock is traded on
          the New York Stock  Exchange  or, if the Common Stock is not traded on
          such exchange,  on such other securities market or securities exchange
          on which such shares are traded as the Committee shall determine.

          "Change in Control"  shall mean that any of the  following  events has
          occurred after January 1, 2001:

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

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

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

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

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

          "Common Stock" shall mean the common stock ($0.01 par value per share)
          of The Charles Schwab Corporation.

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

          "Compensation"  shall mean,  with respect to any  Participant  for any
          Plan Year  beginning on or after January 1, 1997,  such  Participant's
          "Compensation" for such year, as defined in the Retirement Plan.

          "Compensation  Limit"  shall  mean,  with  respect  to any  Plan  Year
          beginning on or after January 1, 1997, the amount of the limitation on
          annual  compensation  in  effect  for such  Plan  Year  under  section
          401(a)(17) of the Code.

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

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

          "Earliest Payment Date" shall mean (i) the date as of which payment of
          an Eligible Employee's pension under the Retirement Plan commences, or
          (ii) if earlier,  the earliest date as of which the Eligible  Employee
          could elect under the  Retirement  Plan to have  payment of his or her
          pension commence.

          "Eligible  Employee"  shall mean any Employee who becomes  eligible to
          receive a pension pursuant to the Retirement Plan, the amount of which
          is less than the amount of the  pension he or she would be entitled to
          receive if the Employee's  pension were  calculated  without regard to
          the Benefit Limitations.

          "Eligible  Spouse"  shall  mean the  surviving  spouse  of a  deceased
          Employee who, upon such Employee's death,  becomes entitled to receive
          a  Spouse's   Preretirement   Survivorship  Pension  pursuant  to  the
          Retirement  Plan,  the  amount of which is less than the amount of the
          Spouse's  Preretirement  Survivorship  Pension  he  or  she  would  be
          entitled to receive if the Pension  that the deceased  Employee  would
          have been  entitled to receive had he or she not died were  calculated
          without  regard  to  the  Benefit  Limitations.   Notwithstanding  the
          foregoing,  the surviving  spouse of a deceased  Employee shall not be
          treated as an Eligible  Spouse for purposes of this Plan if payment of
          an Excess  Pension  Benefit to such  deceased  Employee had  commenced
          prior to his or her death.

          "Employee" shall mean any person employed,  or formerly  employed,  by
          the Corporation or any of its Affiliated  Companies that participates,
          or formerly participated, in the Retirement Plan.

          "Equivalent  Actuarial  Value"  shall  have  the  same  meaning  as is
          assigned  to such  term  under the  Retirement  Plan for  purposes  of
          converting a life annuity to a 50% joint and survivor annuity,  or, as
          the context may  require,  for purposes of  determining  the amount of
          distributions  payable in the form of a lump sum payment under Section
          7.6 of the Retirement Plan.

          "Participant"  shall  mean,  on or  after  January  1,  2001,  (i) any
          Employee who was a Participant  of the Prior Plan on December 31, 2000
          and (ii) any other  Employee  who  becomes a Member of the  Retirement
          Plan on or after January 1, 2001 and who has Compensation for any Plan
          Year  beginning  on or after  January 1, 2001 that is in excess of the
          Compensation  Limit for such year. For purposes of the foregoing,  any
          Employee who is hired after  January 1, 2001 and who has  Compensation
          in  excess  of the  Compensation  Limit for the Plan Year in which his
          date of hire occurs  shall be treated as a  Participant  for such Plan
          Year if he or she is  expected  to become a Member  of the  Retirement
          Plan in the next following Plan Year.

          "Payment  Starting  Date"  shall  mean  the  first  day of  the  month
          coinciding  with or next  following  the  later of (i) the date of the
          Eligible  Employee's  Termination  of  Employment or (ii) the Eligible
          Employee's Earliest Payment Date.

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

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

          "Plan Year" shall mean the calendar year.

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

          "Retirement" shall mean a Participant's  Termination of Employment for
          any reason  other  than death if, as of the date of the  Participant's
          Termination of Employment, (i) the Participant has attained age 65, or
          (ii) the  Participant has attained age sixty (60) and is credited with
          at least ten (10)  "Years of Service"  (as  defined in the  Retirement
          Plan), or (iii) the sum of the Participant's age and the number of his
          or her "Years of Service",  as defined in the  Retirement  Plan, is at
          least equal to 80. In  addition,  in the case of any  Participant  who
          becomes  entitled  to receive  benefit  payments  under the  long-term
          disability plan maintained by the Corporation or any of its Affiliated
          Companies  and who  continues  to  receive  payments  under  such plan
          throughout  the entire period ending on the date on which  Participant
          first meets the age, or the age of service,  requirements set forth in
          clause (i), (ii) or (iii) above,  such  Participant  shall be treated,
          for purposes of the Plan, as having terminated  employment as a result
          of  Retirement  on the first day of the  month  following  the date on
          which the  Participant  first  meets such  requirements.  In  applying
          clause (ii) and (iii) above for this purpose, the Participant's "Years
          of  Service"  shall  include  the  number of  calendar  years (or part
          thereof) during which the Participant  has received  benefit  payments
          under such long-term disability plan.

          "Retirement Plan" shall mean the Employees'  Retirement Plan of United
          States Trust Company of New York and Affiliated Companies,  as amended
          and restated from time to time.

          "Termination   of  Employment"   shall  mean  the  termination  of  an
          Employee's  employment with the Corporation,  its Affiliated Companies
          or the Company.  For this  purpose,  a  Participant  who ceases active
          employment  by reason  of  disability,  but who  becomes  entitled  to
          receive   benefit   payments  under  the  long-term   disability  plan
          maintained by the  Corporation or any of its  Affiliated  Companies or
          the Company  shall be treated as  continuing  to be employed  with the
          Corporation  and its  Affiliated  Companies  or the Company  until the
          earlier  of (i) the  date as of  which  he or she  ceases  to  receive
          benefit  payments  under such plan, or (ii) the date as of which he or
          she  is  treated  as  having  terminated  employment  as a  result  of
          Retirement.

          Each other capitalized term used herein, not otherwise defined,  shall
          have the meaning given to such term under the Retirement Plan.

3.        Excess Pension Benefit

Upon  Termination  of  Employment  of an Eligible  Employee  who elected (or was
deemed to have elected) under the terms of the Prior Plan not to continue active
participation  in the Plan for Plan  Years on or after  January  1, 1997 for any
reason other than death,  the Eligible  Employee shall be entitled to receive an
Excess Pension Benefit calculated under Section 3 of the Prior Plan.

4.        Excess Survivorship Pension Benefit

Upon the  death of an  Eligible  Employee  who  elected  (or was  deemed to have
elected) under the terms of the Prior Plan not to continue active  participation
in the Plan for Plan Years on or after January 1, 1997, the Employee's  Eligible
Spouse  shall be  entitled  to receive an Excess  Survivorship  Pension  Benefit
calculated under Section 4 of the Prior Plan.

5.        Converted Plan Benefit

As provided in Section 5 of the Prior Plan, no Excess Pension  Benefit or Excess
Survivorship Pension Benefit shall accrue under Section 3 or 4 of the Prior Plan
with  respect to any  Employee  after  December  31,  1996.  The Account of each
Participant who was a Member of the Retirement Plan on December 31, 1996 and who
elected under Section 5 of the Prior Plan to continue participation in the Prior
Plan for Plan Years beginning on or after January 1, 1997 has been credited with
a Converted  Plan Benefit amount  determined  for the  Participant in the manner
described in Section 6 of the Prior Plan.

6.        Compensation Limit Benefit

For each Plan Year beginning on and after January 1, 1997 in which a Participant
has Compensation in excess of the Compensation  Limit for such year, the Account
of such Participant  shall be credited with an amount  determined by multiplying
(i) the amount by which the Participant's  Compensation exceeds the Compensation
Limit for such year by (ii) the  percentage  applicable to the  Participant  for
such year, determined under the following table based on his or her attained age
as of the close of such year.

                    Attained Age                Percent

                    Under 30                         0%
                    30-34                          2.5%
                    35-39                          5.0%
                    40-44                          7.5%
                    45-49                         10.0%
                    50-54                         15.0%
                    55-59                         17.5%
                    60-62                         20.0%
                    Over 62                       10.0%

Notwithstanding  the foregoing,  no amount shall be credited to a  Participant's
Account pursuant to this Section 6 for the Plan Year in which the  Participant's
Termination of Employment  occurs unless it occurs either (i) on the last day of
such year, or (ii) as a result of the Participant's  Retirement,  or as a result
of the  Participant's  death  after  he or she has met the  age,  or the age and
service,  requirements for eligibility for Retirement. The amount to be credited
to a Participant's  Account for the Plan Year in which his or her Termination of
Employment  occurs as a result of his or her Retirement or death as described in
clause (ii) of the preceding  sentence shall be a pro-rated  amount based on the
number of months of service  completed by the  Participant  during such year. In
the case of any  Employee who is treated,  pursuant to the last  sentence of the
definition of the term "Participant" in Section 2, as a Participant for the Plan
Year in which he or she is hired,  the amount to be credited to such Participant
for such Plan Year,  pursuant  to this  Section 6, shall be a  pro-rated  amount
based on the number of months of service  completed by the  Participants  during
such year.

The amount to be credited to a Participant's Account for any Plan Year, pursuant
to this  Section 6, shall be credited as of December 31 of such year.  Effective
January 1, 2001, the total amount to be credited to a Participant's  Account for
a Plan Year shall be credited to the Cash Portion of the Participant's  Account.
Notwithstanding  the foregoing and solely for the Plan Year ending  December 31,
2000, a Participant may elect in the manner  prescribed by the Committee to have
25% of the amount to be  credited to such  Participant  for the Plan Year ending
December 31, 2000  pursuant to this Section 6, to be credited to the PSU Portion
of his or her Account.

7.        Accounts

For each Participant, there shall be established on the books and records of the
Corporation,  for bookkeeping  purposes only, a separate Account to reflect such
Participant's  interest  under the Plan.  The  Account so  established  shall be
maintained in accordance with the following provisions:

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

     (b)  The PSU Portion  and the Cash  Portion of each  Participant's  Account
          shall be  credited  with such  amounts as of such  dates,  as required
          pursuant  to the  provisions  of Section 6 and 7 of the Prior Plan and
          Section 6 of this Plan.

     (c)  The PSU Portion and the Cash Portion of a Participant's  Account shall
          be adjusted to reflect all  additional  PSU's and Earnings (as defined
          in  Paragraph  (c) of  Section  9) to be  credited  to  such  Portions
          pursuant  to  Section 9 and all  payments  made with  respect  to such
          Portions pursuant to Section 10.

     (d)  No portion of a  Participant's  interest in his or her  Account  shall
          become vested and  nonforfeitable  until the Participant has completed
          five Years of Service as defined in the Retirement Plan, at which time
          the   Participant's   interest   shall   become   fully   vested   and
          nonforfeitable.

8.        Conversion to PSU's

Each amount credited to the PSU Portion of a Participant's  Account  pursuant to
Section 6 shall be converted into (and after such conversion shall be reflected,
in such Portion as) a number of Phantom Share Units  ("PSU's").  The  conversion
shall be made as of the same date as the date as of which  such  amount is to be
credited.  The  number of PSU's  into  which any  amount  so  credited  is to be
converted shall be determined by dividing (i) the dollar value of such amount by
(ii) the  Average  Market  Value of one share of Common  Stock on the date as of
which  such  amount  is to be  converted  or, if such  conversion  date is not a
Business Day, on the Business Day next preceding such conversion date.

9.        Crediting of Dividend Equivalents and Earnings

Until payment with respect to a  Participant's  Account has been made in full in
accordance with Section 10, the PSU Portion of a Participant's  Account shall be
credited with additional PSU's, and the Cash Portion of a Participant's  Account
shall be credited  with  interest or Earnings in  accordance  with the following
provisions:

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

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

     (c)  For  purposes of this  Section 9, the term  "Earnings  Credit  Option"
          shall mean, as of any date of reference, any one of the following: the
          S&P 500 Index,  the Lehman Bros.  Government/Corporate  Bond Index and
          the IBC's Money Fund Report First Tier  Average.  Notwithstanding  the
          foregoing,  the  Committee  may at any time,  in its sole  discretion,
          determine that any option referred to in the preceding paragraph shall
          cease to constitute an Earnings  Crediting  Option for purposes of the
          Plan.  Participants  shall be  notified in writing at least 45 days in
          advance of any change in the Plan's Earnings Crediting Options.

     (d)  The  "Applicable  Rate of Return"  for any month shall mean (i) in the
          case  of the S&P 500  Index,  the  percentage,  as  determined  by the
          Committee,  by  which  (A) the  value  of such  Index  as of the  last
          business day of such month,  as adjusted to reflect all income  earned
          for such month on the securities included in such Index, exceeds or is
          less than (B) the value of such Index as of the last  business  day of
          the  immediately  preceding  month,  determined  without  taking  such
          adjustment  into  account;  (ii)  in  the  case  of the  Lehman  Bros.
          Government/Corporate  Bond Index, the percentage, as determined by the
          Committee,  by which the value of such  Index as of the last  Business
          Day of such  month  exceeds or is less than the value of such Index as
          of the last Business Day of the immediately  preceding month; (iii) in
          the case of the IBC's Money Fund Report First Tier  Average,  the rate
          of  return  corresponding  to the  7-day  compounded  yield  for  such
          Average, for the period ending on, or most recently prior to, the last
          day of  such  month;  and  (iv)  in the  case  of any  other  Earnings
          Crediting  Option,  the rate of return  applicable  for such  month as
          determined by the Committee, in its sole discretion.

     (e)  A  Participant  may make  elections  in the manner  prescribed  by the
          Committee with respect to the Earnings  Crediting  Options that are to
          apply with  respect  to the Cash  Portion  of his or her  Account,  in
          accordance with the following rules:

          (i)  A Participant may elect to have any part or all of the balance of
               the Cash  Portion  credited  with  Earnings  under  any  Earnings
               Crediting  Option  available under the Plan at the time of his or
               her election.

          (ii) Each  Employee  who  becomes  a  Participant  by virtue of having
               Compensation  in  excess of the  Compensation  Limit for any Plan
               Year beginning on or after January 1, 2001, shall make an initial
               election as to the Earnings  Crediting  Options that are to apply
               with  respect to the Cash  Portion of his or her  Account in such
               manner as the Committee may describe by no later than December 31
               of the first Plan Year for which an amount is to be  credited  to
               his or her Account pursuant to Section 6. If any such Participant
               fails to make such election by such date, such Participant  shall
               be deemed to have selected the IBC's Money Fund Report First Tier
               Average as the Earnings  Crediting  Option to apply to the entire
               balance of the Cash Portion.

          (iii)The Earnings  Crediting  Options selected in the initial election
               made by a  Participant  under clause (ii) (or deemed to have been
               selected by a  Participant  under clause (ii) above) shall remain
               in effect (and shall apply to all additional  amounts credited to
               the Cash Portion with respect to any subsequent Plan Years) until
               the  Participant  changes his or her election in accordance  with
               clause (iv) below.

          (iv) A Participant may change the Earnings  Crediting Options that are
               to apply with  respect to the Cash  Portion of his or her Account
               by  making a new  election  in  accordance  with  such  rules and
               procedures as the Committee  shall  prescribe.  In such election,
               the Participant shall specify, by percentages (which must be even
               multiples of 5%) the respective  parts of the balance of the Cash
               Portion that are to be credited with  Earnings  under each of the
               Earnings  Crediting  Options  designated by the Participant.  The
               Participant's new election shall become effective as of the first
               day of the  calendar  month  following  the  date on  which  such
               election is so communicated,  provided that it is so communicated
               at least 2 Business  Days prior to such first day.  The  Earnings
               Crediting  Options  selected  by  the  Participant  in  such  new
               election  shall  remain in effect  until  the  Participant  again
               changes his  election  with respect to the Cash Portion of his or
               her Account in accordance with this clause (iv).

     (g)  The Cash  Portion of a  Participant's  Account  shall  continue  to be
          credited  with  Earnings in  accordance  with the  provisions  of this
          Section 9 until all  payments  required to be made with respect to the
          Cash Portion  under Section 10 have been made.  For this purpose,  any
          payments made under Section 10 with respect to the Cash Portion of the
          Participant's  Account  will be deemed to have been made pro rata from
          the  respective  parts of the  balance  of the Cash  Portion  that are
          subject to separate Earnings Crediting Options.

10.       Payment of Account Balances

Payment with respect to a Participant's Account shall be made in accordance with
the following provisions:

     (a)  The  vested  balances  of the PSU  Portion  and the Cash  Portion of a
          Participant's  Account  shall become  payable  upon the  Participant's
          Termination  of  Employment  for  any  reason.  If  the  Participant's
          interest  in his or her  Account  had not become  vested  prior to the
          Participant's Termination of Employment, his or her entire interest in
          such Account shall be forfeited on such date.

     (b)  Unless at the time a Participant's Account first becomes payable there
          is in effect for the Participant an election under (c) below,  payment
          with  respect  to  the  PSU  Portion  and  the  Cash  Portion  of  the
          Participant's  Account  shall be made in the form of a single lump sum
          payment.  Such  payment  shall  consist  of (i) a number  of shares of
          Common  Stock  equal to the  number  of whole  PSU's  included  in the
          balance of the PSU Portion of the Participant's Account on the date of
          payment and (ii) cash in an amount equal to the sum of (A) the balance
          of the  Cash  Portion  of the  Participant's  Account  on the  date of
          payment and (B) an amount  determined by  multiplying  the  fractional
          part,  if any, of a PSU  included in the balance of the PSU Portion of
          the Participant's  Account by the Average Market Value of one share of
          Common  Stock on the Business Day  immediately  preceding  the date on
          which such payment is to be made.  All  payments  shall be made on the
          last  Business Day of February of the Plan Year  following the year in
          which the Participant's Termination of Employment occurs.

     (c)  A  Participant  may  elect to have  payment  with  respect  to the PSU
          Portion  and  the  Cash  Portion  of his or her  Account  made  to the
          Participant or, in the event of the Participant's death, to his or her
          Beneficiary   in  the  form  of  a  series  of  5,  10  or  15  annual
          installments, payable in the manner described in Section 10(d), if the
          Participants  Account becomes payable as a result of the Participant's
          Retirement,  or as a result of the Participant's death while he or she
          is still employed with the Corporation,  the Company or any Affiliated
          Companies  but after the  Participant  has met the age, or the age and
          service,  requirements  for eligibility  for  Retirement.  An election
          under this  Section  10(c)  shall be filed by the  Participant  in any
          manner prescribed by the Committee at least one year prior to the date
          on which the  Participant's  Termination  of  Employment  occurs.  Any
          election  so  made  may be  revoked,  and a new  election  may be made
          hereunder after such  revocation.  Any such revocation or new election
          shall be made in the same manner and by the same date as  described in
          the  second  preceding  sentence.  No  election  or  revocation  of an
          election made hereunder shall be given effect unless it is made within
          the time prescribed herein.

     (d)  If a Participant's  Account becomes payable in the form of a series of
          5, 10 or 15 annual installments pursuant to the Participant's election
          under Section 10(c),  such payments  shall be made in accordance  with
          the following provisions.

          (i)  The  first  such  installment  payment  shall be made on the last
               Business Day of February of the Plan Year  following  the year in
               which the Participant's Termination of Employment occurs, and the
               remaining installment payments shall be made on the last Business
               Day of February of each succeeding Plan Year.

          (ii) Each  installment  payment  to be made with  respect  to the Cash
               Portion of a  Participant's  Account shall be made in cash, in an
               amount determined by dividing (A) the balance of the Cash Portion
               determined as of the last day of the Plan Year preceding the year
               in  which  such  payment  is to be  made  by (B)  the  number  of
               installment   payments  remaining  to  be  made.  The  last  such
               installment  payment shall include Earnings  credited to the Cash
               Portion for the month  preceding  the month in which such payment
               is made.

          (iii)Each  installment  payment  to be made  with  respect  to the PSU
               Portion of a Participant's Account shall be made partly in shares
               of Common Stock,  and partly in cash.  The number of shares to be
               included in each such  installment  payment shall be equal to the
               number of whole PSU's  included in the  quotient  resulting  from
               dividing (A) the total number of PSU's included in the balance of
               the PSU Portion of the  Participant's  Account as of the last day
               of the Plan Year  preceding  the year in which such payment is to
               be made by (B) the number of installment payments remaining to be
               made,  and  the  amount  of  cash to be  included  in  each  such
               installment  payment shall be determined by  multiplying  (C) the
               fractional part of a PSU included in the aforementioned  quotient
               by (D) the Average  Market  Value of one share of Common Stock on
               the Business  Day  immediately  preceding  the date on which such
               installment  payment  is to be made.  The last  such  installment
               payment shall include a number of shares of Common Stock equal to
               the whole number of any additional PSU's that are credited to the
               PSU Portion of a Participant's  Account under Section 9(a) during
               the month  preceding  the month in which  such  payment  is to be
               made,  together  with cash (in an amount  determined  in the same
               manner as described in the preceding sentence) for any fractional
               part of a PSU that is so credited.

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

     (e)  Notwithstanding  any  other  provision  in  this  Section  10  to  the
          contrary, payment with respect to any part or all of the Participant's
          Account balances may be made pursuant to such other provisions of this
          Section 10 if (i) the Participant requests such early payment and (ii)
          the  Committee,  in its sole  discretion,  determines  that such early
          payment is necessary to help the  Participant  meet an  "unforeseeable
          emergency" within the meaning of Section  1.457-2(h)(4) of the federal
          income  tax  regulations.  The  amount  that may be so paid  shall not
          exceed the amount necessary to meet such emergency.

11.       Change in Control

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

     (a)  The balance of each  Participant's  Account  shall become fully vested
          and non  forfeitable  and  immediately  payable in full.  Payment with
          respect to each  Participant's  Account  balance  shall be made to the
          Participant   or,  if  the   Participant  has  died,  to  his  or  her
          Beneficiary, in the form of a single lump sum cash payment. The amount
          so payable with respect to each  Participant's  Account shall be equal
          to the sum of (i) the balance of the Cash Portion of the Participant's
          Account plus (ii) an amount  determined by  multiplying  the aggregate
          number of PSU's then included in the balance of the PSU Portion of the
          Participant's  Account by the Determined  Value of one share of Common
          Stock.

     (b)  Each  Eligible  Employee and each  Eligible  Spouse for whom an Excess
          Pension Benefit or an Excess  Survivorship  Pension Benefit had become
          payable  prior to a Change  in  Control  shall be  entitled,  upon the
          occurrence of such Change in Control, to receive, in full discharge of
          the Corporation's  obligations  hereunder to such Eligible Employee or
          Eligible Spouse, an immediate  lump-sum cash payment in an amount that
          is of Equivalent  Actuarial Value to the Excess Pension Benefit or the
          Excess Survivorship Pension Benefit so payable.

     (c)  All  amounts  payable  under  this  Section  11,  reduced by any taxes
          withheld  pursuant to Section 12, shall be paid as soon as practicable
          following the Change in Control.

12.       Taxes

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

13.       Adjustment of PSU's

In the event of any change in the Common Stock by reason of any stock  dividend,
recapitalization,  reorganization,  merger, consolidation, split-up, combination
or exchange of shares, or any rights offering to purchase such shares at a price
substantially  below fair market  value,  or any similar  change  affecting  the
Common Stock,  the number and kind of shares  represented by Phantom Share Units
shall be  appropriately  adjusted  consistent with such change in such manner as
the Committee, in its sole discretion, may deem equitable to prevent substantial
dilution  or  enlargement  of  the  rights  granted  to  or  available  for  the
Participants  hereunder.  The Committee shall give notice to each Participant of
any  adjustment  made pursuant to this Section 13, and,  upon such notice,  such
adjustment shall be effective and binding for all purposes of the Plan.

14.       Source, Listing and Qualification of Common Stock

The Common Stock  distributed  under the Plan may be shares held in the treasury
of the Company or shares purchased on the open market by the Corporation at such
time or times and in such manner as it may determine.  The Corporation  shall be
under no obligation to acquire  Common Stock for  distribution  to  Participants
before payment in Common Stock is due.

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

15.       Designation and Change of Beneficiary

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

16.      Payments to Persons Other Than Participants

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

Any  payment  made under this  Section 16 shall be a complete  discharge  of the
liability of the Corporation with respect to such payment.

17.       Administration of the Plan

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

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

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

18.       Amendment and Termination

The  Plan  may  be  amended,  suspended  or  terminated,   with  prospective  or
retroactive  effect,  in whole or in part, by the Board of Directors without the
consent  of any  Employee  or any  other  person.  The  Committee  may adopt any
amendment that may be necessary or appropriate to facilitate the administration,
management  or  interpretation  of the  Plan or to  conform  the  Plan  thereto,
provided any such  amendment  does not have a material  effect on the  currently
estimated cost to the  Corporation of maintaining  the Plan. No such  amendment,
suspension or  termination  shall  retroactively  impair or otherwise  adversely
affect the rights of any  Employee or other  person to  benefits  under the Plan
prior to the date of such  action as  determined  by the  Committee  in its sole
discretion.

Notwithstanding any other provision in this Plan to the contrary,  the Committee
may direct that no benefit  attributable to the application under the Retirement
Plan of the Benefit Limitation  described in clause (i) of the definition of the
term "Benefit Limitations" be paid with respect to an Eligible Employee, or that
no benefit otherwise provided with respect to a Participant under Section 5 or 6
be paid to such Participant or to his or her Beneficiary,  if the Committee,  in
its  sole  discretion,  determines  that  the  payment  of  such  benefit  would
jeopardize the Plan's status as a plan  maintained  primarily for the purpose of
providing  deferred  compensation  for "a select group of  management  of highly
compensated  employees" within the meaning of the applicable provisions of ERISA
with respect to such benefits.

19.       General Provisions

The following  additional  provisions  shall be  applicable  with respect to the
Plan.

     (a)  The  Plan  shall be  binding  upon and  inure  to the  benefit  of the
          Corporation,   its  Affiliated   Companies,   the  Company  and  their
          respective   successors  and  assigns,   and  Participants,   Eligible
          Employees,  Eligible Spouses and their estates. The Plan shall also be
          binding upon any successor corporation, or organization succeeding to,
          substantially  all of the assets and business of the Corporation,  but
          nothing in the Plan shall  preclude  the  Corporation  from merging or
          consolidating  into or with, or transferring all or substantially  all
          of its assets to, another corporation or organization that assumes the
          Plan and all obligations of the Corporation hereunder.

     (b)  Neither the Plan nor any action taken  hereunder shall be construed as
          giving to any  Employee  the right to be retained in the employ of the
          Corporation  or any of its  Affiliated  Companied or as affecting  the
          right of the Corporation or any of its Affiliated Companies to dismiss
          any Employee.

     (c)  The rights or interests  of any  Employee  under the Plan shall not be
          subject in any manner to  anticipation,  alienation,  sale,  transfer,
          assignment,   pledge,   encumbrance,   attachment  or  garnishment  by
          creditors or beneficiaries of such person.

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

     (e)  The Plan shall be  governed  by the laws of the State of New York from
          time to time in effect.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]