Document:

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                                                                     EXHIBIT 4.1
                                                                   Tiffany & Co.
                                                             Report on Form 10-K
                              AMENDED AND RESTATED

                                RIGHTS AGREEMENT

                           DATED AS OF APRIL 8, 2004

                                 BY AND BETWEEN

                                  TIFFANY & CO.

                                       AND

                         MELLON INVESTOR SERVICES LLC,

                                 AS RIGHTS AGENT

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                               TABLE OF CONTENTS

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SECTION 1.          CERTAIN DEFINITIONS..........................................................................     3

SECTION 2.          APPOINTMENT OF RIGHTS AGENT..................................................................     8

SECTION 3.          ISSUE OF RIGHT CERTIFICATES..................................................................     9

SECTION 4.          FORM OF RIGHT CERTIFICATES...................................................................    11

SECTION 5.          COUNTERSIGNATURE AND REGISTRATION............................................................    11

SECTION 6.          TRANSFER, SPLIT UP, COMBINATION AND EXCHANGE OF RIGHT CERTIFICATES; MUTILATED, DESTROYED,
                    LOST OR STOLEN RIGHT CERTIFICATES............................................................    12

SECTION 7.          EXERCISE OF RIGHTS; PURCHASE PRICE...........................................................    13

SECTION 8.          CANCELLATION AND DESTRUCTION OF RIGHT CERTIFICATES...........................................    15

SECTION 9.          STATUS AND AVAILABILITY OF PREFERRED SHARES..................................................    16

SECTION 10.         PREFERRED SHARES RECORD DATE.................................................................    17

SECTION 11.         ADJUSTMENT OF PURCHASE PRICE, NUMBER OF SHARES OR NUMBER OF RIGHTS...........................    17

SECTION 12.         CERTIFICATE OF ADJUSTMENT....................................................................    29

SECTION 13.         CONSOLIDATION, MERGER OR SALE OR TRANSFER OF ASSETS OR EARNING POWER.........................    30

SECTION 14.         FRACTIONAL RIGHTS AND FRACTIONAL SHARES......................................................    32

SECTION 15.         RIGHTS OF ACTION.............................................................................    34

SECTION 16.         AGREEMENT OF RIGHT HOLDERS...................................................................    34

SECTION 17.         RIGHT CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER............................................    35

SECTION 18.         CONCERNING THE RIGHTS AGENT..................................................................    35
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<S>                                                                                                                 <C>
SECTION 19.         MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT....................................    36

SECTION 20.         DUTIES OF RIGHTS AGENT.......................................................................    37

SECTION 21.         CHANGE OF RIGHTS AGENT.......................................................................    40

SECTION 22.         ISSUANCE OF NEW RIGHT CERTIFICATES...........................................................    41

SECTION 23.         REDEMPTION...................................................................................    42

SECTION 24.         EXCHANGE.....................................................................................    43

SECTION 25.         NOTICE OF CERTAIN EVENTS.....................................................................    45

SECTION 26.         NOTICES......................................................................................    46

SECTION 27.         SUPPLEMENTS AND AMENDMENTS...................................................................    47

SECTION 28.         SUCCESSORS...................................................................................    48

SECTION 29.         BENEFITS OF THIS AGREEMENT...................................................................    48

SECTION 30.         SEVERABILITY.................................................................................    48

SECTION 31.         GOVERNING LAW................................................................................    48

SECTION 32.         COUNTERPARTS.................................................................................    48

SECTION 33.         DESCRIPTIVE HEADINGS.........................................................................    49

SECTION 34.         ADMINISTRATION...............................................................................    49

EXHIBIT A             FORM OF RIGHT CERTIFICATE..................................................................   A-1
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                              AMENDED AND RESTATED

                                RIGHTS AGREEMENT

         Amended and Restated Rights Agreement, dated as of April 8, 2004 (the
"Agreement"), between Tiffany & Co., a Delaware corporation (the "Company"), and
Mellon Investor Services LLC, a New Jersey limited liability company (successor
to ChaseMellon Shareholder Services, L.L.C.), as rights agent (the "Rights
Agent").

         WHEREAS, in November 1988 the Company adopted a stockholder rights plan
and declared a dividend of one Preferred Stock purchase right (a "Right") for
each outstanding share of common stock, par value $0.01 per share, of the
Company (a "Common Share") held of record on November 28, 1988 (the "Record
Date"), and authorized the issuance of one Right with respect to each additional
Common Share thereafter issued;

         WHEREAS, in connection with and in furtherance of the foregoing, the
Company entered into a Rights Agreement with Manufacturers Hanover Trust Company
(the predecessor of the Rights Agent) as rights agent dated as of November 17,
1988, as amended as of September 21, 1989 (the "Original Rights Agreement");

         WHEREAS, the Rights issued pursuant to the Original Rights Agreement
were scheduled to expire on November 17, 1998;

         WHEREAS, the Original Rights Agreement was amended and supplemented
pursuant to the Amended and Restated Rights Agreement dated as of September 22,
1998 (the "1998 Rights Agreement");

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         WHEREAS, the 1998 Rights Agreement provides that the Company may amend
or supplement such Agreement in any manner and that the Rights Agent shall
supplement or amend such Agreement as directed by the Company;

         WHEREAS, the Board of Directors of the Company has determined that it
necessary or desirable, and is in the best interest of the Company, to clarify
certain provisions of the Rights Agreement ;

         WHEREAS, at the time of this Agreement, no Person is an Acquiring
Person;

         WHEREAS, to implement the foregoing the Board of Directors has
determined that the Company enter into this Agreement which amends and restates
in its entirety the 1998 Rights Agreement and pursuant to which, among other
things, (i) each Right outstanding on the date hereof shall evidence the right
to purchase one one-hundredth of a Preferred Share at the Purchase Price, as of
the date hereof, of $165, (ii) the Final Expiration Date of the Rights shall be
September 17, 2008, and (iii) one Right shall be issued with respect to each
additional Common Share that shall become outstanding after the date hereof and
prior to the earliest of the Close of Business on the Distribution Date, the
Redemption Date and the Close of Business on the Final Expiration Date; and

         WHEREAS, the Company desires that the Rights Agent continue to act as
Rights Agent hereunder, and the Rights Agent is willing so to act;

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:

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         Section 1. Certain Definitions. For purposes of this Agreement, the
following terms have the meanings indicated:

         "Acquiring Person" shall mean any Person, other than

                  (i)      the Company,

                  (ii)     any Subsidiary of the Company, or

                  (iii)    any employee benefit plan of the Company or any
                           Subsidiary of the Company, or any entity holding
                           Common Shares pursuant to the terms of any such
                           employee benefit plan,

which is the Beneficial Owner of 15% or more of the Common Shares then
outstanding. Notwithstanding the foregoing:

         (1)      No Person shall be deemed to have become an Acquiring Person
                  solely as the result of an acquisition of Common Shares by the
                  Company which, by reducing the number of outstanding shares,
                  shall have increased the percentage of Common Shares
                  Beneficially Owned by such Person to 15% or more of the then
                  outstanding Common Shares (a "Repurchase Event"). Any Person
                  described in the immediately preceding sentence shall become
                  an Acquiring Person, however, if such Person shall acquire
                  Beneficial Ownership of any additional Common Shares after the
                  public announcement of the Repurchase Event.

         (2)      No Person who shall have acquired Beneficial Ownership of 15%
                  or more of the outstanding Common Shares, who represents to
                  the Company that such Person inadvertently acquired such
                  Beneficial Ownership (an "Inadvertent Acquisition"), shall be
                  deemed to have become an Acquiring Person if the Board of
                  Directors of

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                  the Company, in good faith, determines that such Person is not
                  an Acquiring Person because of the following facts and
                  circumstances:

                           (a)      such Person promptly, but in any event
                                    within ten (10) business days of receipt of
                                    a written request to do so duly issued on
                                    behalf of the Board of Directors of the
                                    Company, delivers to the Company a
                                    certificate signed by an authorized
                                    representative of such Person, satisfactory
                                    to the Board of Directors of the Company,
                                    representing that such Person has not
                                    acquired Common Shares with any purpose, or
                                    with the effect, of changing the control of
                                    the Company, or in connection with or as a
                                    participant in any transaction having that
                                    purpose or effect;

                           (b)      such Person, within the time period required
                                    under (a) above, agrees in writing that: (i)
                                    such Person will divest, as promptly as
                                    practicable, but in any event within such
                                    period of time as the Board of Directors of
                                    the Company shall determine, a sufficient
                                    number of Common Shares so that such Person
                                    would no longer be the Beneficial Owner of
                                    15% or more of the outstanding Common
                                    Shares; and (ii) until such Person has
                                    divested such number of Common Shares, such
                                    Person will not acquire Beneficial Ownership
                                    of any additional Common Shares; and

                                      -4-

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                           (c)      such Person in fact divests the number of
                                    Common Shares referred to, and within the
                                    time period determined as provided in, the
                                    immediately preceding clause (b).

         If such Person shall fail to comply, within the time applicable
         periods, with the provisions of this paragraph (2), such Person shall
         be deemed to have become an Acquiring Person on the date that such
         Person shall have acquired Beneficial Ownership of 15% or more of the
         outstanding Common Shares.

         "Affiliate" and "Associate" shall have the respective meanings ascribed
to such terms in Rule 12b-2 of the General Rules and Regulations under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), as in effect
on the date of this Agreement.

         A Person shall be deemed the "Beneficial Owner" of and shall be deemed
to "Beneficially Own" any securities:

                           (i)      which such Person or any of such Person's
         Affiliates or Associates beneficially owns (as determined pursuant to
         the provisions of Rule 13d-3 and Rule 13d-5 of the General Rules and
         Regulations under the Exchange Act), directly or indirectly; or

                           (ii)     which such Person or any of such Person's
         Affiliates or Associates has:

                  (A)      the right to acquire (whether such right is
                           exercisable immediately or only after the passage of
                           time) pursuant to any agreement, arrangement or
                           understanding (other than customary agreements with
                           and between underwriters and selling group members
                           with respect to a bona fide public offering of
                           securities), written or otherwise, or upon the
                           exercise of

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                           conversion rights, exchange rights, rights (other
                           than the Rights), warrants or options, or otherwise;
                           provided, however, that a Person shall not be deemed
                           to be the Beneficial Owner of, or to Beneficially
                           Own, securities tendered pursuant to a tender or
                           exchange offer made pursuant to, and in accordance
                           with, the applicable rules and regulations
                           promulgated under the Exchange Act by or on behalf of
                           such Person or any of such Person's Affiliates or
                           Associates until such tendered securities are
                           accepted for purchase or exchange; or

                  (B)      the right to vote pursuant to any agreement,
                           arrangement or understanding; provided, however, that
                           a Person shall not be deemed the Beneficial Owner of,
                           or to beneficially own, any security if the
                           agreement, arrangement or understanding to vote such
                           security arises solely from a revocable proxy or
                           consent given to such Person in response to a public
                           proxy or consent solicitation made pursuant to, and
                           in accordance with, the applicable rules and
                           regulations promulgated under the Exchange Act; or

                           (iii)    which are Beneficially Owned, directly or
         indirectly, by any other Person with which such Person or any of such
         Person's Affiliates or Associates has any agreement, arrangement or
         understanding (other than customary agreements with and between
         underwriters and selling group members with respect to a bona fide
         public offering of securities), written or otherwise, for the purpose
         of acquiring, holding, voting (except to the extent contemplated by the
         proviso to section (B) of the immediately preceding paragraph (ii)) or
         disposing of any securities of the Company.

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         The phrase "then outstanding," when used with reference to a Person's
Beneficial Ownership of securities of the Company, shall mean the number of such
securities then issued and outstanding together with the number of such
securities not then actually issued and outstanding which such Person would be
deemed to Own Beneficially hereunder.

         "Business Day" shall mean any day other than a Saturday, Sunday, or a
day on which banking institutions in the State of New York are authorized or
obligated by law or executive order to close.

         "Close of Business" on any given date shall mean 5:00 P.M., New York
time, on such date; provided, however, that if such date is not a Business Day
it shall mean 5:00 P.M., New York time, on the next succeeding Business Day.

         "Common Shares" shall mean shares of the common stock, par value $0.01
per share, of the Company.

         "Common Stock", when used with reference to any Person other than the
Company, shall mean the capital stock (or equity interest) with the greatest
voting power of such other Person or, if such other Person is a Subsidiary of
another Person, the Person or Persons which ultimately control such
first-mentioned Person.

         "common stock equivalents" shall have the meaning set forth in Section
11(a)(iii)(B)(3) hereof.

         "Current Value" shall have the meaning set forth in Section
11(a)(iii)(A)(1) hereof.

         "Distribution Date" shall have the meaning set forth in Section 3(a)
hereof.

         "equivalent preferred shares" shall have the meaning set forth in
Section 11(b) hereof.

         "Exchange Ratio" shall have the meaning set forth in Section 24(a)
hereof.

         "Final Expiration Date" shall mean September 17, 2008.

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         "Person" shall mean any individual, firm, corporation, partnership,
limited partnership, limited liability partnership, business trust, limited
liability company, unincorporated association or other entity, and shall include
any successor (by merger or otherwise) of such entity.

         "Purchase Price" shall have the meaning set forth in Section 7(b)
hereof.

         "Preferred Shares" shall mean shares of the Series A Junior
Participating Cumulative Preferred Stock, par value $0.01 per share, of the
Company.

         "Redemption Date" shall have the meaning set forth in Section 23
hereof.

         "Right Certificate" shall mean a certificate evidencing a Right in
substantially the form of Exhibit A hereto.

         "Section 11(a)(ii) Trigger Date" shall have the meaning set forth in
Section 11(a)(iii) hereof.

         "Shares Acquisition Date" shall mean the earlier of the date of (i) the
public announcement by the Company or an Acquiring Person that an Acquiring
Person has become an Acquiring Person or (ii) the public disclosure of facts by
the Company or an Acquiring Person indicating that an Acquiring Person has
become an Acquiring Person.

         "Spread" shall have the meaning set forth in Section 11(a)(iii)(A)
hereof.

         "Subsidiary" of any Person shall mean any Person of which a majority of
the voting power of the voting equity securities or equity interest is owned,
directly or indirectly, by such Person.

         "Substitution Period" shall have the meaning set forth in Section
11(a)(iii) hereof.

         Section 2. Appointment of Rights Agent. The Company has appointed the
Rights Agent to act as agent for the Company in accordance with the terms and
conditions hereof, and the

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Rights Agent has accepted such appointment. The Company may from time to time
appoint such co-Rights Agents as it may deem necessary or desirable.

         Section 3.  Issue of Right Certificates.

                  (a)      Until the earlier of (i) the tenth day after the
Shares Acquisition Date or (ii) the tenth Business Day (or such later date as
may be determined by action of the Board of Directors prior to such time as any
Person becomes an Acquiring Person) after the date of the commencement by any
Person of, or of the first public announcement of the intention of any Person to
commence, a tender or exchange offer the consummation of which would result in
any Person becoming an Acquiring Person (such date being herein referred to as
the "Distribution Date"):

         (x)      the Rights will be evidenced by the certificates for Common
                  Shares registered in the names of the holders thereof (which
                  certificates shall also be deemed to be Right Certificates)
                  and not by separate Right Certificates, and

         (y)      the right to receive Right Certificates will be transferable
                  only in connection with the transfer of Common Shares.

As soon as practicable after the Distribution Date, the Company will prepare and
execute, the Rights Agent will countersign and the Company will send or cause to
be sent (and the Rights Agent will, if requested, send) by first-class, insured,
postage-prepaid mail, to each record holder of Common Shares as of the Close of
Business on the Distribution Date, at the address of such holder shown on the
records of the Company, a Right Certificate evidencing one Right for each Common
Share so held. As of the Distribution Date, the Rights will be evidenced solely
by such Right Certificates.

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         (b)      With respect to certificates for Common Shares outstanding as
of the Record Date, until the Close of Business on the Distribution Date, the
Rights will be evidenced by such certificates registered in the names of the
holders thereof. Until the Close of Business on the Distribution Date (or the
earlier of the Redemption Date or the Close of Business on the Final Expiration
Date), the surrender for transfer of any certificate for Common Shares
outstanding on the Record Date or which became outstanding after the Record Date
but on or prior to the date of the 1998 Rights Agreement shall also constitute
the transfer of the Rights associated with the Common Shares evidenced thereby.

         (c)      Certificates for Common Shares which are issued after the date
of the 1998 Rights Agreement but prior to the first to occur of the Close of
Business on the Distribution Date, the Redemption Date or the Close of Business
on the Final Expiration Date shall have impressed on, printed on, written on or
otherwise affixed to them the following legend:

         This certificate also evidences and entitles the holder hereof to
         certain Rights as set forth in the Amended and Restated Rights
         Agreement between Tiffany & Co. and the Rights Agent thereunder, dated
         as of April __, 2004 (the "Rights Agreement"), the terms of which are
         hereby incorporated herein by reference and a copy of which is on file
         at the principal executive offices of Tiffany & Co. Under certain
         circumstances, as set forth in the Rights Agreement, such Rights will
         be evidenced by separate certificates and will no longer be evidenced
         by this certificate. Tiffany & Co. will mail to the holder of this
         certificate a copy of the Rights Agreement without charge after receipt
         of a written request therefor. Under certain circumstances, Rights that
         are or were acquired or beneficially owned by Acquiring Persons (as
         defined in the Rights Agreement) may become null and void.

Certificates for Common Shares which were issued after the Record Date but prior
to September 22, 1998 bear the legend set forth in the Original Rights
Agreement. Certificates for Common Shares which were issued after September 22,
1998 but prior to the date hereof bear the legend set forth in the 1998 Rights
Agreement. With respect to such certificates containing the

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foregoing legends, until the Close of Business on the Distribution Date, the
Rights associated with the Common Shares represented by certificates shall be
evidenced by such certificates alone, and the surrender for transfer of any such
certificate shall also constitute the transfer of the Rights associated with the
Common Shares represented thereby. In the event that the Company purchases or
acquires any Common Shares prior to the Close of Business on the Distribution
Date, any Rights associated with such Common Shares shall be deemed canceled and
retired so that the Company shall not be entitled to exercise any Rights
associated with the Common Shares which are no longer outstanding.

         Section 4. Form of Right Certificates. The Right Certificates (and the
forms of election to purchase Preferred Shares and of assignment to be printed
on the reverse thereof) shall be substantially the same as Exhibit A hereto and
may have such marks of identification or designation and such legends, summaries
or endorsements printed thereon as the Company may deem appropriate and as are
not inconsistent with the provisions of this Agreement, or as may be required to
comply with any applicable law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which the Rights
may from time to time be listed, or to conform to usage. Subject to the other
provisions of this Agreement, the Right Certificates shall entitle the holders
thereof to purchase such number of one one-hundredths of a Preferred Share as
shall be set forth therein at the Purchase Price, but the number of one
one-hundredths of a Preferred Share and the Purchase Price shall be subject to
adjustment as provided herein.

         Section 5. Countersignature and Registration. The Right Certificates
shall be executed on behalf of the Company by its Chairman of the Board, its
Chief Executive Officer, its President, any of its Vice Presidents, or its
Treasurer, either manually or by facsimile signature,

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shall have affixed thereto the Company's seal or a facsimile thereof, and shall
be attested by the Secretary or any Assistant Secretary of the Company, either
manually or by facsimile signature. The Right Certificates shall be
countersigned by the Rights Agent and shall not be valid for any purpose unless
so countersigned, either manually or by facsimile. In case any officer of the
Company who shall have signed any of the Right Certificates shall cease to be
such officer of the Company before countersignature by the Rights Agent and
issuance and delivery by the Company, such Right Certificates, nevertheless, may
be countersigned by the Rights Agent and issued and delivered by the Company
with the same force and effect as though the person who signed such Right
Certificates had not ceased to be such officer of the Company; and any Right
Certificate may be signed on behalf of the Company by any person who, at the
actual date of the execution of such Right Certificate, shall be a proper
officer of the Company to sign such Right Certificate, although at the date of
the execution of this Rights Agreement any such person was not such an officer.

         Following the Distribution Date, the Rights Agent will keep or cause to
be kept, at its principal office, books for registration of the transfer of the
Right Certificates issued hereunder. Such books shall show the names and
addresses of the respective holders of the Right Certificates, the number of
Rights evidenced on its face by each of the Right Certificates and the date of
each of the Right Certificates.

         Section 6. Transfer, Split Up, Combination and Exchange of Right
Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates. Subject
to the provisions of Section 14 hereof, at any time after the Close of Business
on the Distribution Date, and prior to the earlier of the Redemption Date or the
Close of Business on the Final Expiration Date, any Right Certificate or Right
Certificates (other than Right Certificates representing Rights that have become
void

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pursuant to Section 11(a)(ii) hereof or that have been exchanged pursuant to
Section 24 hereof) may be transferred, split up, combined or exchanged for
another Right Certificate or Right Certificates, entitling the registered holder
to purchase a like number of one one-hundredths of a Preferred Share as the
Right Certificate or Right Certificates surrendered then entitled such holder to
purchase. Any registered holder desiring to transfer, split up, combine or
exchange any Right Certificate or Right Certificates shall make such request in
writing delivered to the Rights Agent, and shall surrender the Right Certificate
or Right Certificates to be transferred, split up, combined or exchanged at the
principal office of the Rights Agent. Thereupon the Rights Agent shall
countersign and deliver to the person entitled thereto a Right Certificate or
Right Certificates, as the case may be, as so requested. The Company may require
payment of a sum sufficient for any tax or governmental charge that may be
imposed in connection with any transfer, split up, combination or exchange of
Right Certificates.

         Upon receipt by the Company and the Rights Agent of evidence reasonably
satisfactory to them of the loss, theft, destruction or mutilation of a Right
Certificate, and, in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to them, and, at the Company's request,
reimbursement to the Company and the Rights Agent of all reasonable expenses
incidental thereto, and upon surrender to the Rights Agent and cancellation of
the Right Certificate if mutilated, the Company will make and deliver a new
Right Certificate of like tenor to the Rights Agent for delivery to the
registered holder in lieu of the Right Certificate so lost, stolen, destroyed or
mutilated.

         Section 7.  Exercise of Rights; Purchase Price.

                  (a)      The registered holder of any Right Certificate (other
than a holder whose Rights have become void pursuant to Section 11(a)(ii) hereof
or have been exchanged pursuant

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to Section 24 hereof) may exercise the Rights evidenced thereby in whole or in
part at any time after the Distribution Date upon surrender of the Right
Certificate, with the form of election to purchase on the reverse side thereof
duly executed, to the Rights Agent at its principal office, together with
payment of the Purchase Price for each one one-hundredth of a Preferred Share as
to which the Rights are exercised, prior to the earliest of (i) the Close of
Business on the Final Expiration Date, (ii) the time at which the right to
exercise the Rights terminates pursuant to Section 23 hereof, or (iii) the time
at which the right to exercise the Rights terminates pursuant to Section 24
hereof.

                  (b)      The purchase price for each one one-hundredth of a
Preferred Share to be purchased upon the exercise of a Right shall initially be
$165 (the "Purchase Price"), shall be subject to adjustment from time to time as
provided in Sections 11 and 13 hereof and shall be payable in lawful money of
the United States of America in accordance with paragraph (c) below.

                  (c)      Upon receipt of a Right Certificate representing
exercisable Rights, with the form of election to purchase and certificate duly
executed, accompanied by payment of the Purchase Price for the number of one
one-hundredths of a Preferred Share to be purchased and an amount equal to any
applicable transfer tax required to be paid by the holder of such Right
Certificate in accordance with Section 9 hereof by cash, certified check,
cashier's check or money order payable to the order of the Company, the Rights
Agent shall thereupon promptly (i) (A) requisition from any transfer agent of
the Preferred Shares certificates for the number of one one-hundredths of a
Preferred Share to be purchased and the Company hereby irrevocably authorizes
its transfer agent to comply with all such requests, or (B) requisition from any
depository agent for the Preferred Shares depository receipts representing such
number of one

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one-hundredths of a Preferred Share as are to be purchased (in which case
certificates for the Preferred Shares represented by such receipts shall be
deposited by the transfer agent with the depository agent) and the Company
hereby directs the depository agent to comply with such request, (ii) when
appropriate, requisition from the Company the amount of cash to be paid in lieu
of issuance of fractional Preferred Shares in accordance with Section 14 hereof,
(iii) after receipt of such certificates or depository receipts, cause the same
to be delivered to or upon the order of the registered holder of such Right
Certificate, registered in such name or names as may be designated by such
holder and (iv) when appropriate, after receipt, deliver such cash to or upon
the order of the registered holder of such Right Certificate.

                  (d)      In case the registered holder of any Right
Certificate shall exercise less than all the Rights evidenced thereby, a new
Right Certificate evidencing Rights equivalent to the Rights remaining
unexercised shall be issued by the Rights Agent to the registered holder of such
Right Certificate or to his duly authorized assigns, subject to the provisions
of Section 14 hereof.

                  (e)      Notwithstanding anything in this Agreement to the
contrary, neither the Rights Agent nor the Company shall be obligated to
undertake any action with respect to a registered holder upon the occurrence of
any purported exercise as set forth in this Section 7 unless such registered
holder shall have (i) completed and signed the certificate following the form of
election to purchase set forth on the reverse side of the Right Certificate
surrendered for such exercise and (ii) provided such additional evidence of the
identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or
Associates thereof as the Company shall reasonably request.

         Section 8. Cancellation and Destruction of Right Certificates. All
Right Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if

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surrendered to the Company or to any of its agents, be delivered to the Rights
Agent for cancellation or in canceled form, or, if surrendered to the Rights
Agent, shall be canceled by it, and no Right Certificates shall be issued in
lieu thereof except as expressly permitted by any of the provisions of this
Rights Agreement. The Company shall deliver to the Rights Agent for cancellation
and retirement, and the Rights Agent shall so cancel and retire, any other Right
Certificate purchased or acquired by the Company otherwise than upon the
exercise thereof. The Rights Agent shall deliver all canceled Right Certificates
to the Company, or shall, at the written request of the Company, destroy such
canceled Right Certificates, and in such case shall deliver a certificate of
destruction thereof to the Company.

         Section 9.  Status and Availability of Preferred Shares.

                  (a)      The Company covenants and agrees that it will take
all such action as may be necessary to ensure that all Preferred Shares
delivered upon exercise of Rights shall, at the time of delivery of the
certificates for such Preferred Shares (subject to payment of the Purchase
Price), be duly and validly authorized and issued and fully paid and
non-assessable shares.

                  (b)      The Company further covenants and agrees that it will
pay when due and payable any and all federal and state transfer taxes and
charges which may be payable in respect of the issuance or delivery of the Right
Certificates or of any Preferred Shares upon the exercise of Rights. The Company
shall not, however, be required to pay any transfer tax which may be payable in
respect of any transfer or delivery of Right Certificates to a person other
than, or the issuance or delivery of certificates or depository receipts for the
Preferred Shares in a name other than that of, the registered holder of the
Right Certificate evidencing Rights surrendered for exercise or to issue or to
deliver any certificates or depository receipts for Preferred Shares upon the
exercise of any Rights until any such tax shall have been paid (any such tax
being payable by

                                      -16-

<PAGE>

the holder of such Right Certificate at the time of surrender) or until it has
been established to the Company's reasonable satisfaction that no such tax is
due.

                  (c)      The Company covenants and agrees that it will cause
to be reserved and kept available, out of its authorized and unissued Preferred
Shares or any Preferred Shares held in its treasury, the number of Preferred
Shares that will be sufficient to permit the exercise in full of all outstanding
Rights in accordance with Section 7 hereof.

         Section 10. Preferred Shares Record Date. Each person in whose name any
certificate for Preferred Shares is issued upon the exercise of Rights shall for
all purposes be deemed to have become the holder of record of the Preferred
Shares represented thereby on, and such certificate shall be dated, the date
upon which the Right Certificate evidencing such Rights was duly surrendered and
payment of the Purchase Price (and any applicable transfer taxes) was made.
Prior to the exercise of the Rights evidenced thereby, the holder of a Right
Certificate shall not be entitled to any rights of a holder of Preferred Shares
for which the Rights shall be exercisable, including, without limitation, the
right to vote, to receive dividends or other distributions or to exercise any
preemptive rights, and shall not be entitled to receive any notice of any
proceedings of the Company, except as provided herein.

         Section 11. Adjustment of Purchase Price, Number of Shares or Number of
Rights. The Purchase Price, the number of Preferred Shares covered by each Right
and the number of Rights outstanding are subject to adjustment from time to time
as provided in this Section 11.

                  (a)(i)   In the event the Company shall at any time after the
date of this Agreement (A) declare a dividend on the Preferred Shares payable in
Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine
the outstanding Preferred Shares into a smaller number of Preferred Shares or
(D) issue any shares of its capital stock in a reclassification of the

                                      -17-

<PAGE>

Preferred Shares (including any such reclassification in connection with a
consolidation or merger in which the Company is the continuing or surviving
corporation), except as otherwise provided in this Section 11(a), the Purchase
Price in effect at the time of the record date for such dividend or of the
effective date of such subdivision, combination or reclassification, and the
number and kind of shares of capital stock issuable on such date, shall be
proportionately adjusted so that the holder of any Right exercised after such
time shall be entitled to receive the aggregate number and kind of shares of
capital stock which, if such Right had been exercised immediately prior to such
date, he would have owned upon such exercise and been entitled to receive by
virtue of such dividend, subdivision, combination or reclassification; provided,
however, that in no event shall the consideration to be paid upon the exercise
of one Right be less than the aggregate par value of the shares of capital stock
of the Company issuable upon exercise of one Right.

                  (ii)     Subject to the following paragraph of this
subparagraph (ii) and to Section 24 of this Agreement, in the event any Person
shall become an Acquiring Person, each holder of a Right shall thereafter have a
right to exercise such holder's Rights, , at a price equal to the then current
Purchase Price multiplied by the number of one one-hundredths of a Preferred
Share for which a Right is then exercisable, in accordance with the terms of
this Agreement and in lieu of Preferred Shares, and to receive upon exercise
such number of Common Shares as shall equal the result obtained by (x)
multiplying the then current Purchase Price by the number of one one-hundredths
of a Preferred Share for which a Right is then exercisable and dividing that
product by (y) 50% of the then current per share market price of the Common
Shares (determined pursuant to Section 11(d) hereof) on the date such Person
became an Acquiring Person. In the event that any Person shall become an
Acquiring Person and the Rights shall then be outstanding,

                                      -18-

<PAGE>

the Company shall not take any action that would eliminate or diminish the
benefits intended to be afforded by the Rights except as expressly permitted by
Section 24 below.

         From and after the occurrence of the time at which any Person shall
have become an Acquiring Person, any Rights that are or were acquired or
Beneficially Owned by such Acquiring Person (or any Associate or Affiliate of
such Acquiring Person) on or after the earlier of (x) the date on which such
Person became an Acquiring Person and (y) the Distribution Date shall be void
and any holder of such Rights shall thereafter have no right to exercise such
Rights under any provision of this Agreement. No Right Certificate shall be
issued pursuant to Section 3 that represents Rights Beneficially Owned by an
Acquiring Person whose Rights would be void pursuant to the preceding sentence
or to any Associate or Affiliate thereof; no Right Certificate shall be issued
at any time upon the transfer of any Rights to an Acquiring Person whose Rights
would be void pursuant to the preceding sentence or any Associate or Affiliate
thereof or to any nominee of such Acquiring Person, Associate or Affiliate; and
any Right Certificate delivered to the Rights Agent for transfer to an Acquiring
Person whose Rights would be void pursuant to the preceding sentence or any
Associate or Affiliate thereof shall be canceled.

                  (iii)    In the event that the number of Common Shares which
are authorized by the Company's certificate of incorporation and not outstanding
or subscribed for, or reserved or otherwise committed for issuance for purposes
other than upon exercise of the Rights, are not sufficient to permit the holder
of each Right to purchase the number of Common Shares to which he would be
entitled upon the exercise in full of the Rights in accordance with the
provisions of Section 11(a)(ii) hereof, or should the Board of Directors so
elect, the Company shall:

         (A)      determine the excess of (1) the value of the Common Shares
                  issuable upon the exercise of a Right (calculated as provided
                  in the last sentence of this

                                      -19-

<PAGE>

                  Section 11(a)(iii)) pursuant to Section 11(a)(ii) hereof (the
                  "Current Value") over (2) the Purchase Price (such excess, the
                  "Spread"), and

         (B)      with respect to each Right, make adequate provision to
                  substitute for such Common Shares, upon payment of the
                  applicable Purchase Price, any one or more of the following
                  having an aggregate value determined by the Board of Directors
                  to be equal to the Current Value: (1) cash, (2) a reduction in
                  the Purchase Price, (3) Common Shares or other equity
                  securities of the Company (including, without limitation,
                  shares, or units of shares, of preferred stock which the Board
                  of Directors of the Company has determined to have the same
                  value as Common Shares (such shares of preferred stock,
                  "common stock equivalents")), (4) debt securities of the
                  Company, or (5) other assets;

provided, however, that if the Company shall not have made adequate provision to
deliver value pursuant to clause (B) above within thirty (30) days following the
first occurrence of an event triggering the rights to purchase Common Shares
described in Section 11(a)(ii) (the "Section 11(a)(ii) Trigger Date"), then the
Company shall be obligated to deliver, upon the surrender for exercise of a
Right and without requiring payment of the Purchase Price, shares of Common
Stock (to the extent available) and then, if necessary, cash, which shares and
cash have an aggregate value equal to the Spread. If the Board of Directors of
the Company shall determine in good faith that it is likely that sufficient
additional Common Shares could be authorized for issuance upon exercise in full
of the Rights, the thirty (30) day period set forth above may be extended to the
extent necessary, but not more than ninety (90) days after the Section 11(a)(ii)
Trigger Date, in order that the Company may seek stockholder approval for the
authorization of such additional shares (such period, as it may be extended, the
"Substitution Period"). To the

                                      -20-

<PAGE>

extent that the Company determines that some action need be taken pursuant to
the first and/or second sentences of this Section 11(a)(iii), the Company (x)
shall provide, subject to Section 7(e) hereof and the last paragraph of Section
11(a)(ii) hereof, that such action shall apply uniformly to all outstanding
Rights, and (y) may suspend the exercisability of the Rights until the
expiration of the Substitution Period in order to seek any authorization of
additional shares and/or to decide the appropriate form of distribution to be
made pursuant to such first sentence and to determine the value thereof. In the
event of any such suspension, the Company shall make a public announcement, and
shall deliver to the Rights Agent a statement, stating that the exercisability
of the Rights has been temporarily suspended. At such time as the suspension is
no longer in effect, the Company shall make another public announcement, and
deliver to the Rights Agent a statement, so stating. For purposes of this
Section 11(a)(iii), the value of the Common Shares shall be the current per
share market price (as determined pursuant to Section 11(d)(i) hereof) of the
Common Shares on the Section 11(a)(ii) Trigger Date and the value of any common
stock equivalent shall be deemed to have the same value as the Common Shares on
such date.

                  (b)      In case the Company shall fix a record date for the
issuance of rights, options or warrants to all holders of Preferred Shares
entitling them (for a period expiring within 45 calendar days after such record
date) to subscribe for or purchase Preferred Shares (or shares having the same
rights, privileges and preferences as the Preferred Shares ("equivalent
preferred shares")) or securities convertible into Preferred Shares or
equivalent preferred shares at a price per Preferred Share or equivalent
preferred share (or having a conversion price per share, if a security
convertible into Preferred Shares or equivalent preferred shares) less than the
then current per share market price of the Preferred Shares (as defined in
Section 11(d)) on such record date, the Purchase Price to be in effect after
such record date shall be adjusted by

                                      -21-

<PAGE>

multiplying the Purchase Price in effect immediately prior to such record date
by a fraction, the numerator of which shall be the number of Preferred Shares
outstanding on such record date plus the number of Preferred Shares which the
aggregate offering price of the total number of Preferred Shares and/or
equivalent preferred shares so to be offered (and/or the aggregate initial
conversion price of the convertible securities so to be offered) would purchase
at such current market price and the denominator of which shall be the number of
Preferred Shares outstanding on such record date plus the number of additional
Preferred Shares and/or equivalent preferred shares to be offered for
subscription or purchase (or into which the convertible securities so to be
offered are initially convertible); provided, however, that in no event shall
the consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company issuable upon
exercise of one Right. In case such subscription price may be paid in a
consideration part or all of which shall be in a form other than cash, the value
of such consideration shall be as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement
filed with the Rights Agent. Preferred Shares owned by or held for the account
of the Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustment shall be made successively whenever such a record
date is fixed; and in the event that such rights, options or warrants are not so
issued, the Purchase Price shall be adjusted to be the Purchase Price which
would then be in effect if such record date had not been fixed.

                  (c)      In case the Company shall fix a record date for the
making of a distribution to all holders of the Preferred Shares (including any
such distribution made in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation) of evidences of indebtedness
or assets (other than a regular quarterly cash dividend

                                      -22-

<PAGE>

or a dividend payable in Preferred Shares) or subscription rights or warrants
(excluding those referred to in Section 11(b) hereof), the Purchase Price to be
in effect after such record date shall be determined by multiplying the Purchase
Price in effect immediately prior to such record date by a fraction, the
numerator of which shall be the then current per share market price of the
Preferred Shares on such record date, less the fair market value (as determined
in good faith by the Board of Directors of the Company, whose determination
shall be described in a statement filed with the Rights Agent) of the portion of
the assets or evidences of indebtedness so to be distributed or of such
subscription rights or warrants applicable to one Preferred Share and the
denominator of which shall be such current per share market price of the
Preferred Shares; provided, however, that in no event shall the consideration to
be paid upon the exercise of one Right be less than the aggregate par value of
the shares of capital stock of the Company to be issued upon exercise of one
Right. Such adjustments shall be made successively whenever such a record date
is fixed; and in the event that such distribution is not so made, the Purchase
Price shall again be adjusted to be the Purchase Price which would then be in
effect if such record date had not been fixed.

                  (d)(i)   For the purpose of any computation hereunder, the
"current per share market price" of any security (a "Security" for the purpose
of this Section 11(d)(i)) on any date shall be deemed to be the average of the
daily closing prices per share of such Security for the 30 consecutive Trading
Days (as such term is hereinafter defined) immediately prior to such date;
provided, however, that in the event that the current per share market price of
the Security is determined during a period following the announcement by the
issuer of such Security of (A) a dividend or distribution on such Security
payable in shares of such Security or securities convertible into such shares,
or (B) any subdivision, combination or reclassification of such

                                      -23-

<PAGE>

Security and prior to the expiration of 30 Trading Days after the ex-dividend
date for such dividend or distribution, or the record date for such subdivision,
combination or reclassification, then, and in each such case, the current per
share market price shall be appropriately adjusted to reflect the current market
price per share equivalent of such Security. The closing price for each day
shall be the last sale price, regular way, or, in case no such sale takes place
on such day, the average of the closing bid and asked prices, regular way, in
either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York
Stock Exchange or, if the Security is not listed or admitted to trading on the
New York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Security is listed or admitted to trading or,
if the Security is not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by the
National Association of Securities Dealers, Inc. Automated Quotations System
("NASDAQ") or such other system then in use, or, if on any such date the
Security is not quoted by any such organization, the average of the closing bid
and asked prices as furnished by a professional market maker making a market in
the Security selected by the Board of Directors of the Company. The term
"Trading Day" shall mean a day on which the principal national securities
exchange on which the Security is listed or admitted to trading is open for the
transaction of business or, if the Security is not listed or admitted to trading
on any national securities exchange, a Business Day.

                  (ii)     For the purpose of any computation hereunder, the
"current per share market price" of the Preferred Shares shall be determined in
accordance with the method set forth in Section 11(d)(i). If the Preferred
Shares are not publicly traded, the "current per share market

                                      -24-

<PAGE>

price" of the Preferred Shares shall be conclusively deemed to be the current
per share market price of the Common Shares as determined pursuant to Section
11(d)(i) (appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the date hereof), multiplied by 100. If
neither the Common Shares nor the Preferred Shares are publicly held or so
listed or traded, "current per share market price" shall mean the fair value per
share as determined in good faith by the Board of Directors of the Company,
whose determination shall be described in a statement filed with the Rights
Agent.

                  (e)      No adjustment in the Purchase Price shall be required
unless such adjustment would require an increase or decrease of at least 1% in
the Purchase Price; provided, however, that any adjustments which by reason of
this Section 11(e) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment. All calculations under this
Section 11 shall be made to the nearest cent or to the nearest one millionth of
a Preferred Share or one ten-thousandth of any other share or security as the
case may be. Notwithstanding the first sentence of this Section 11(e), any
adjustment required by this Section 11 shall be made no later than three years
from the date of the transaction which requires such adjustment.

                  (f)      If as a result of an adjustment made pursuant to
Section 11(a) hereof, the holder of any Right thereafter exercised shall become
entitled to receive any shares of capital stock of the Company other than
Preferred Shares, the number of such other shares so receivable upon exercise of
any Right shall thereafter be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with
respect to the Preferred Shares contained in Section 11(a) through (c),
inclusive, and the provisions of Sections

                                      -25-

<PAGE>

7, 9, 10 and 13 with respect to the Preferred Shares shall apply on like terms
to any such other shares.

                  (g)      All Rights originally issued by the Company
subsequent to any adjustment made to the Purchase Price hereunder shall evidence
the right to purchase, at the adjusted Purchase Price, the number of one
one-hundredths of a Preferred Share purchasable from time to time hereunder upon
exercise of the Rights, all subject to further adjustment as provided herein.

                  (h)      Unless the Company shall have exercised its election
as provided in Section 11(i), upon each adjustment of the Purchase Price as a
result of the calculations made in Sections 11(b) and (c), each Right
outstanding immediately prior to the making of such adjustment shall thereafter
evidence the right to purchase, at the adjusted Purchase Price, that number of
one one-hundredths of a Preferred Share (calculated to the nearest one millionth
of a Preferred Share) obtained by (i) multiplying (x) the number of one
one-hundredths of a share covered by a Right immediately prior to this
adjustment by (y) the Purchase Price in effect immediately prior to such
adjustment of the Purchase Price and (ii) dividing the product so obtained by
the Purchase Price in effect immediately after such adjustment of the Purchase
Price.

                  (i)      The Company may elect on or after the date of any
adjustment of the Purchase Price to adjust the number of Rights in substitution
for any adjustment in the number of one one-hundredths of a Preferred Share
purchasable upon the exercise of a Right. Each of the Rights outstanding after
such adjustment of the number of Rights shall be exercisable for the number of
one one-hundredths of a Preferred Share for which a Right was exercisable
immediately prior to such adjustment. Each Right held of record prior to such
adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one ten-thousandth) obtained by dividing the Purchase
Price in effect immediately prior to adjustment of

                                      -26-

<PAGE>

the Purchase Price by the Purchase Price in effect immediately after adjustment
of the Purchase Price. The Company shall make a public announcement of its
election to adjust the number of Rights, indicating the record date for the
adjustment, and, if known at the time, the amount of the adjustment to be made.
This record date may be the date on which the Purchase Price is adjusted or any
day thereafter, but, if the Right Certificates have been distributed, shall be
at least 10 days later than the date of the public announcement. If Right
Certificates have been distributed, upon each adjustment of the number of Rights
pursuant to this Section 11(i), the Company shall, as promptly as practicable,
cause to be distributed to holders of record of Right Certificates on such
record date Right Certificates evidencing, subject to Section 14 hereof, the
additional Rights to which such holders shall be entitled as a result of such
adjustment, or, at the option of the Company, shall cause to be distributed to
such holders of record in substitution and replacement for the Right
Certificates held by such holders prior to the date of adjustment, and upon
surrender thereof, if required by the Company, new Right Certificates evidencing
all the Rights to which such holders shall be entitled after such adjustment.
Right Certificates to be so distributed shall be issued, executed and
countersigned in the manner provided for herein and shall be registered in the
names of the holders of record of Right Certificates on the record date
specified in the public announcement.

                  (j)      Irrespective of any adjustment or change in the
Purchase Price or the number of one one-hundredths of a Preferred Share issuable
upon the exercise of the Rights, the Right Certificates theretofore and
thereafter issued may continue to express the Purchase Price and the number of
one one-hundredths of a Preferred Share which were expressed in the initial
Right Certificates issued hereunder.

                                      -27-

<PAGE>

                  (k)      Before taking any action that would cause an
adjustment reducing the Purchase Price below one one-hundredth of the then par
value of the Preferred Shares issuable upon exercise of the Rights, the Company
shall take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully paid and
non-assessable Preferred Shares at such adjusted Purchase Price.

                  (l)      In any case in which this Section 11 shall require
that an adjustment in the Purchase Price be made effective as of a record date
for a specified event, the Company may elect to defer until the occurrence of
such event the issuing to the holder of any Right exercised after such record
date of the Preferred Shares and other capital stock or securities of the
Company, if any, issuable upon such exercise over and above the Preferred Shares
and other capital stock or securities of the Company, if any, issuable upon such
exercise on the basis of the Purchase Price in effect prior to such adjustment;
provided, however, that the Company shall deliver to such holder a due bill or
other appropriate instrument evidencing such holder's right to receive such
additional shares upon the occurrence of the event requiring such adjustment.

                  (m)      Anything in this Section 11 to the contrary
notwithstanding, the Company shall be entitled to make such reductions in the
Purchase Price, in addition to those adjustments expressly required by this
Section 11, as and to the extent that it in its sole discretion shall determine
to be advisable in order that any (i) combination or subdivision of the
Preferred Shares, (ii) issuance wholly for cash of any Preferred Shares at less
than the current market price, (iii) issuance wholly for cash of Preferred
Shares or securities which by their terms are convertible into or exchangeable
for Preferred Shares, (iv) dividends on Preferred Shares payable in Preferred
Shares or (v) issuance of any rights, options or warrants referred to
hereinabove in

                                      -28-

<PAGE>

Section 11(b), hereafter made by the Company to holders of its Preferred Shares
shall not be taxable to such stockholders.

                  (n)      In the event that at any time after the date of this
Agreement and prior to the Distribution Date, the Company shall (i) declare or
pay any dividend on the Common Shares payable in Common Shares or (ii) effect a
subdivision, combination or consolidation of the Common Shares (by
reclassification or otherwise other than by payment of dividends in Common
Shares) into a greater or lesser number of Common Shares, then in any such case
(i) the number of one one-hundredths of a Preferred Share purchasable after such
event upon proper exercise of each Right shall be determined by multiplying the
number of one one-hundredths of a Preferred Share so purchasable immediately
prior to such event by a fraction, the numerator of which is the number of
Common Shares outstanding immediately before such event and the denominator of
which is the number of Common Shares outstanding immediately after such event,
and (ii) each Common Share outstanding immediately after such event, without
further action by the Company or any other Person, shall evidence that number of
Rights which each Common Share outstanding immediately prior to such event had
evidenced. The adjustments provided for in this Section 11(n) shall be made
successively whenever such a dividend is declared or paid or such a subdivision,
combination or consolidation is effected.

         Section 12. Certificate of Adjustment. Whenever an adjustment is made
as provided in Sections 11 and 13 hereof, the Company shall promptly (a) prepare
a certificate setting forth such adjustment, and a brief statement of the facts
accounting for such adjustment, (b) file with the Rights Agent and with each
transfer agent for the Common Shares or the Preferred Shares a copy of such
certificate and (c) mail a brief summary thereof to each holder of a Right
Certificate in

                                      -29-

<PAGE>

accordance with Section 25 hereof. The Rights Agent shall be fully protected in
relying on any such certificate and on any adjustment therein contained.

         Section 13. Consolidation, Merger or Sale or Transfer of Assets or
Earning Power.

         In the event that, directly or indirectly, at any time after a Person
becomes an Acquiring Person, (i) the Company shall consolidate with, or merge
with and into, any other Person, (ii) any Person (other than any employee
benefit plan of the Company or any Person holding Common Shares pursuant to the
terms of any such employee benefit plan) shall consolidate with the Company, or
merge with and into the Company and the Company shall be the continuing or
surviving corporation of such merger and, in connection with such merger, all or
part of the Common Shares shall be changed into or exchanged for stock or other
securities of any other Person (or the Company) or cash or any other property,
or (iii) the Company shall sell or otherwise transfer (or one or more of its
Subsidiaries shall sell or otherwise transfer), in one or more transactions,
assets or earning power aggregating 50% or more of the assets or earning power
of the Company and its Subsidiaries (taken as a whole) to any other Person other
than the Company or one or more of its wholly-owned Subsidiaries, then, and in
each such case, proper provision shall be made so that (A) each holder of a
Right (except as otherwise provided herein) shall thereafter have the right to
receive, upon the exercise thereof at a price equal to the then current Purchase
Price multiplied by the number of one one-hundredths of a Preferred Share for
which a Right is then exercisable, in accordance with the terms of this
Agreement and in lieu of Preferred Shares, such number of shares of Common Stock
of such other Person (including the Company as successor thereto or as the
surviving corporation) as shall equal the result obtained by (x) multiplying the
then current Purchase Price by the number of one one-hundredths of a Preferred
Share for which a Right is then exercisable and dividing that product by (y) 50%
of the

                                      -30-

<PAGE>

then current per share market price of the Common Stock of such other Person
(determined pursuant to Section 11(d) hereof) on the date of consummation of
such consolidation, merger, sale or transfer; (B) the issuer of such Common
Stock shall thereafter be liable for, and shall assume, by virtue of such
consolidation, merger, sale or transfer, all the obligations and duties of the
Company pursuant to this Agreement; (C) the term "Company" shall thereafter be
deemed to refer to such issuer; and (D) such issuer shall take such steps
(including, but not limited to, the reservation of a sufficient number of shares
of its Common Stock in accordance with Section 9 hereof) in connection with such
consummation as may be necessary to assure that the provisions hereof shall
thereafter be applicable, as nearly as reasonably may be, in relation to the
shares of Common Stock thereafter deliverable upon the exercise of the Rights.
The Company covenants and agrees that it shall not consummate any such
consolidation, merger, sale or transfer unless prior thereto the Company and
such issuer shall have executed and delivered to the Rights Agent a supplemental
agreement so providing. The Company shall not enter into any transaction of the
kind referred to in this Section 13 if at the time of such transaction there are
any rights, warrants, instruments or securities outstanding or any agreements or
arrangements which, as a result of the consummation of such transaction, would
eliminate or substantially diminish the benefits intended to be afforded by the
Rights. The provisions of this Section 13 shall similarly apply to successive
mergers or consolidations or sales or other transfers. For purposes hereof, the
"earning power" of the Company and its Subsidiaries shall be determined in good
faith by the Company's Board of Directors on the basis of the operating earnings
of each business operated by the Company and its Subsidiaries during the three
fiscal years preceding the date of such determination (or, in the case of any
business not operated by the Company or any Subsidiary

                                      -31-

<PAGE>

during three full fiscal years preceding such date, during the period such
business was operated by the Company or any Subsidiary).

         Section 14. Fractional Rights and Fractional Shares.

                  (a)      The Company shall not be required to issue fractions
of Rights or to distribute Right Certificates which evidence fractional Rights.
In lieu of such fractional Rights, there shall be paid to the registered holders
of the Right Certificates with regard to which such fractional Rights would
otherwise be issuable, an amount in cash equal to the same fraction of the
current market value of a whole Right. For the purposes of this Section 14(a),
the current market value of a whole Right shall be the closing price of the
Rights for the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable. The closing price for any
day shall be the last sale price, regular way, or, in case no such sale takes
place on such day, the average of the closing bid and asked prices, regular way,
in either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York
Stock Exchange or, if the Rights are not listed or admitted to trading on the
New York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Rights are listed or admitted to trading or, if
the Rights are not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by NASDAQ
or such other system then in use or, if on any such date the Rights are not
quoted by any such organization, the average of the closing bid and asked prices
as furnished by a professional market maker making a market in the Rights
selected by the Board of Directors of the Company. If on any such date no such
market maker is making a market in the Rights, the

                                      -32-

<PAGE>

fair value of the Rights on such date as determined in good faith by the Board
of Directors of the Company shall be used.

                  (b)      The Company shall not be required to issue fractions
of Preferred Shares (other than fractions which are integral multiples of one
one-hundredth of a Preferred Share) upon exercise of the Rights or to distribute
certificates which evidence fractional Preferred Shares (other than fractions
which are integral multiples of one one-hundredth of a Preferred Share).
Fractions of Preferred Shares in integral multiples of one one-hundredth of a
Preferred Share may, at the election of the Company, be evidenced by depository
receipts, pursuant to an appropriate agreement between the Company and a
depository selected by it; provided, that such agreement shall provide that the
holders of such depository receipts shall have all the rights, privileges and
preferences to which they are entitled as beneficial owners of the Preferred
Shares represented by such depository receipts. In lieu of fractional Preferred
Shares that are not integral multiples of one one-hundredth of a Preferred
Share, the Company shall pay to each registered holder of Right Certificates at
the time such Rights are exercised as herein provided an amount in cash equal to
the same fraction of the current market value of one Preferred Share as the
fraction of one Preferred Share that such holder would otherwise receive upon
the exercise of the aggregate number of rights exercised by such holder. For the
purposes of this Section 14(b), the current market value of a Preferred Share
shall be the closing price of a Preferred Share (as determined pursuant to the
second sentence of Section 11(d)(i) hereof) for the Trading Day immediately
prior to the date of such exercise.

                  (c)      The holder of a Right by the acceptance of the Right
expressly waives any right to receive fractional Rights or fractional shares
upon exercise of a Right (except as provided above).

                                      -33-

<PAGE>

         Section 15. Rights of Action. All rights of action in respect of this
Agreement, excepting the rights of action given to the Rights Agent under
Section 18 hereof, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of the
Common Shares); and any registered holder of any Right Certificate (or, prior to
the Distribution Date, of the Common Shares) may, without the consent of the
Rights Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the Common Shares), on his own behalf and for his own
benefit, enforce, and may institute and maintain any suit, action or proceeding
against the Company to enforce, or otherwise act in respect of, his right to
exercise the Rights evidenced by such Right Certificate in the manner provided
in such Right Certificate and in this Agreement. Without limiting the foregoing
or any remedies available to the holders of Rights, it is specifically
acknowledged that the holders of Rights would not have an adequate remedy at law
for any breach of this Agreement and will be entitled to specific performance of
the obligations under, and injunctive relief against actual or threatened
violations of the obligations of any Person subject to, this Agreement.

         Section 16. Agreement of Right Holders. Every holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:

                  (a)      prior to the Distribution Date, the Rights will be
transferable only in connection with the transfer of the Common Shares;

                  (b)      after the Distribution Date, the Right Certificates
are transferable only on the registry books maintained by the Rights Agent if
surrendered at the principal office of the Rights Agent, duly endorsed or
accompanied by a proper instrument of transfer with a completed form of
certification; and

                                      -34-

<PAGE>

                  (c)      the Company and the Rights Agent may deem and treat
the person in whose name the Right Certificate (or, prior to the Distribution
Date, the associated Common Share certificate) is registered as the absolute
owner thereof and of the Rights evidenced thereby (notwithstanding any notations
of ownership or writing on the Right Certificates or the associated Common Share
certificate made by anyone other than the Company or the Rights Agent) for all
purposes whatsoever, and neither the Company nor the Rights Agent shall be
affected by any notice to the contrary.

         Section 17. Right Certificate Holder Not Deemed a Stockholder. No
holder, as such, of any Right Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose the holder of the Preferred Shares or any
other securities of the Company which may at any time be issuable on the
exercise of the Rights represented thereby nor shall anything contained herein
or in any Right Certificate be construed to confer upon the holder of any Right
Certificate, as such, any of the rights of a stockholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in Section 25 hereof), or to receive dividends
or subscription rights, or otherwise, until the Right or Rights evidenced by
such Right Certificate shall have been exercised in accordance with the
provisions hereof.

         Section 18. Concerning the Rights Agent. The Company agrees to pay to
the Rights Agent reasonable compensation for all services rendered by it
hereunder and, from time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and other disbursements incurred in the administration
and execution of this Agreement and the exercise and performance of its duties
hereunder. The Company shall indemnify the Rights Agent for,

                                      -35-

<PAGE>

and hold it harmless against, any loss, liability, claim or expense ("Loss")
arising out of or in connection with its duties under this Agreement, including
the costs and expenses of defending itself against any Loss, unless such Loss
shall have been determined by a court of competent jurisdiction to be a result
of the Rights Agent's negligence, bad faith or willful misconduct.

         The obligations of the Company under this section shall survive the
termination of this Agreement.

         The Rights Agent shall be protected and shall incur no liability for or
in respect of any action taken, suffered or omitted by it in connection with its
administration of this Agreement in reliance upon any Right Certificate or
certificate for Preferred Shares or for other securities of the Company,
instrument of assignment or transfer, power of attorney, endorsement, affidavit,
letter, notice, direction, consent, certificate, statement, or other paper or
document believed by it to be genuine and to be signed, executed and, where
necessary, verified or acknowledged, by the proper person or persons.

         Section 19. Merger or Consolidation or Change of Name of Rights Agent.
Any corporation into which the Rights Agent or any successor Rights Agent may be
merged or with which it may be consolidated, or any corporation resulting from
any merger or consolidation to which the Rights Agent or any successor Rights
Agent shall be a party, or any corporation succeeding to the corporate trust
business of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
provided that such corporation would be eligible for appointment as a successor
Rights Agent under the provisions of Section 21 hereof. In case at the time such
successor Rights Agent shall succeed to the agency created by this Agreement,
any of the Right Certificates shall have been countersigned but not

                                      -36-

<PAGE>

delivered, any such successor Rights Agent may adopt the countersignature of the
predecessor Rights Agent and deliver such Right Certificates so countersigned;
and in case at that time any of the Right Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Right
Certificates either in the name of the predecessor Rights Agent or in the name
of the successor Rights Agent; and in all such cases such Right Certificates
shall have the full force provided in the Right Certificates and in this
Agreement.

         In case at any time the name of the Rights Agent shall be changed and
at such time any of the Right Certificates shall have been countersigned but not
delivered, the Rights Agent may adopt the countersignature under its prior name
and deliver Right Certificates so countersigned; and in case at that time any of
the Right Certificates shall not have been countersigned, the Rights Agent may
countersign such Right Certificates either in its prior name or in its changed
name; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

         Section 20. Duties of Rights Agent. The Rights Agent undertakes the
duties and obligations expressly set forth in this Agreement and no implied
duties or obligations shall be read into this Agreement against the Rights
Agent. The Rights Agent shall perform those duties and obligations upon the
following terms and conditions, by all of which the Company and the holders of
Right Certificates, by their acceptance thereof, shall be bound:

                  (a)      The Rights Agent may consult with legal counsel (who
may be legal counsel for the Company), and the opinion of such counsel shall be
full and complete authorization and protection to the Rights Agent as to any
action taken or omitted by it in good faith and in accordance with such opinion.

                                      -37-

<PAGE>

                  (b)      Whenever in the performance of its duties under this
Agreement the Rights Agent shall deem it necessary or desirable that any fact or
matter be proved or established by the Company prior to taking or suffering any
action hereunder, such fact or matter (unless other evidence in respect thereof
be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by any one of the Chairman of the Board, the
President, a Vice President, the Treasurer or the Secretary of the Company and
delivered to the Rights Agent; and such certificate shall be full authorization
to the Rights Agent for any action taken or suffered in good faith by it under
the provisions of this Agreement in reliance upon such certificate.

                  (c)      The Rights Agent shall be liable hereunder only for
its own negligence, bad faith or willful misconduct. In no case, however, will
the Rights Agent be liable for special, indirect, incidental or consequential
loss or damages of any kind whatsoever (including but not limited to lost
profits), even if the Rights Agent has been advised of the possibility of such
damages.

                  (d)      The Rights Agent shall not be liable for or by reason
of any of the statements of fact or recitals contained in this Agreement or in
the Right Certificates (except as to its countersignature thereof) or be
required to verify the same, but all such statements and recitals are and shall
be deemed to have been made by the Company only.

                  (e)      The Rights Agent shall not be under any
responsibility in respect of the validity of this Agreement or the execution and
delivery hereof (except the due execution hereof by the Rights Agent) or in
respect of the validity or execution of any Right Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the
Company of any covenant or condition contained in this Agreement or in any Right
Certificate; nor shall it be

                                      -38-

<PAGE>

responsible for any adjustment required under the provisions of Sections 11 or
13 hereof or responsible for the manner, method or amount of any such adjustment
or the ascertaining of the existence of facts that would require any such
adjustment (except with respect to the exercise of Rights evidenced by Right
Certificates after actual notice of any such adjustment); nor shall it by any
act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of Preferred Shares to be issued
pursuant to this Agreement or any Right Certificate or as to whether any
Preferred Shares will, when so issued, be validly authorized and issued, fully
paid and nonassessable.

                  (f)      The Company agrees that it will perform, execute,
acknowledge and deliver or cause to be performed, executed, acknowledged and
delivered all such further and other acts, instruments and assurances as may
reasonably be required by the Rights Agent for the carrying out or performing by
the Rights Agent of the provisions of this Agreement.

                  (g)      The Rights Agent is hereby authorized and directed to
accept instructions with respect to the performance of its duties hereunder from
any one of the Chairman of the Board, the President, a Vice President, the
Secretary or the Treasurer of the Company, and to apply to such officers for
advice or instructions in connection with its duties, and it shall not be liable
for any action taken or suffered to be taken by it in good faith in accordance
with instructions of any such officer.

                  (h)      The Rights Agent and any stockholder, director,
officer or employee of the Rights Agent may buy, sell or deal in any of the
Rights or other securities of the Company or become pecuniarily interested in
any transaction in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and freely as though it were

                                      -39-

<PAGE>

not Rights Agent under this Agreement. Nothing herein shall preclude the Rights
Agent from acting in any other capacity for the Company or for any other legal
entity.

                  (i)      The Rights Agent may execute and exercise any of the
rights or powers hereby vested in it or perform any duty hereunder either itself
or by or through its attorneys or agents, and the Rights Agent shall not be
answerable or accountable for any act, default, neglect or misconduct of any
such attorneys or agents or for any loss to the Company resulting from any such
act, default, neglect or misconduct, provided reasonable care was exercised in
the selection and continued employment thereof.

         Section 21. Change of Rights Agent. The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Agreement
upon 30 days' notice in writing mailed to the Company and to each transfer agent
of the Common Shares and the Preferred Shares by registered or certified mail,
and to the holders of the Right Certificates by first-class mail. The Company
may remove the Rights Agent or any successor Rights Agent upon 30 days' notice
in writing, mailed to the Rights Agent or successor Rights Agent, as the case
may be, and to each transfer agent of the Common Shares and the Preferred Shares
by registered or certified mail, and to the holders of the Right Certificates by
first-class mail. If the Rights Agent shall resign or be removed or shall
otherwise become incapable of acting, the Company shall appoint a successor to
the Rights Agent. If the Company shall fail to make such appointment within a
period of 30 days after giving notice of such removal or after it has been
notified in writing of such resignation or incapacity by the resigning or
incapacitated Rights Agent or by the holder of a Right Certificate (who shall,
with such notice, submit his Right Certificate for inspection by the Company),
then the registered holder of any Right Certificate may apply to any court of
competent jurisdiction for the appointment of a new Rights Agent.

                                      -40-

<PAGE>

         Any successor Rights Agent, whether appointed by the Company or by such
a court, shall be either (a) a corporation organized and doing business under
the laws of the United States or of any state of the United States, in good
standing, having an office in the State of New York which is authorized under
such laws to exercise corporate trust powers and is subject to supervision or
examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least $100
million, or (b) an affiliate of such a corporation. After appointment, the
successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer
to the successor Rights Agent any property at the time held by it hereunder, and
execute and deliver any further assurance, conveyance, act or deed necessary for
the purpose. Not later than the effective date of any such appointment the
Company shall file notice thereof in writing with the predecessor Rights Agent
and each transfer agent of the Common Shares and the Preferred Shares, and mail
a notice thereof in writing to the registered holders of the Right Certificates.
Failure to give any notice provided for in this Section 21, however, or any
defect therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent, as
the case may be.

         Section 22. Issuance of New Right Certificates. Notwithstanding any of
the provisions of this Agreement or of the Rights to the contrary, the Company
may, at its option, issue new Right Certificates evidencing Rights in such form
as may be approved by its Board of Directors to reflect any adjustment or change
in the Purchase Price and the number or kind or class of shares or other
securities or property purchasable under the Right Certificates made in
accordance with the provisions of this Agreement.

                                      -41-

<PAGE>

         Section 23.  Redemption.

                  (a)      The Board of Directors of the Company, at its option,
may redeem all but not less than all the then outstanding Rights at a redemption
price of $0.01 per Right, appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the date hereof (such
redemption price being hereinafter referred to as the "Redemption Price"),
provided that at the time of such redemption no Person has become and continues
to be an Acquiring Person. The redemption of the Rights by the Board of
Directors may be made effective at such time, on such basis and subject to such
conditions as the Board of Directors in its sole discretion may establish.

                  (b)      Immediately upon the time of the effectiveness of the
redemption of the Rights pursuant to paragraph (a) of this Section 23 or such
earlier time as may be determined by the Board of Directors of the Company in
the action ordering such redemption (although not earlier than the time of such
action) (such time the "Redemption Date"), and without any further action and
without any notice, the right to exercise the Rights shall terminate and the
only right thereafter of the holders of Rights shall be to receive the
Redemption Price. The Company shall promptly give public notice of any such
redemption; provided, however, that the failure to give, or any defect in, any
such notice shall not affect the validity of such redemption. Within 10 days
after such action of the Board of Directors ordering the redemption of the
Rights pursuant to paragraph (a), the Company shall mail a notice of redemption
to all the holders of the then outstanding Rights at their last addresses as
they appear upon the registry books of the Rights Agent or, prior to the
Distribution Date, on the registry books of the transfer agent for the Common
Shares. Any notice which is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. If the payment of the
Redemption Price is

                                      -42-

<PAGE>

not included with such notice, each such notice shall state the method by which
the payment of the Redemption Price will be made. Neither the Company nor any of
its Affiliates or Associates may redeem, acquire or purchase for value any
Rights at any time in any manner other than that specifically set forth in this
Section 23 or in Section 24 hereof, other than in connection with the purchase
of Common Shares prior to the Distribution Date.

         Section 24.  Exchange.

                  (a)      The Board of Directors of the Company may, at its
option, at any time after any Person becomes an Acquiring Person, exchange all
or part of the then outstanding and exercisable Rights (which shall not include
Rights that have become void pursuant to the provisions of Section 11(a)(ii)
hereof) for Common Shares at an exchange ratio of one Common Share per Right,
appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof (such exchange ratio being
hereinafter referred to as the "Exchange Ratio"). Notwithstanding the foregoing,
the Board of Directors shall not be empowered to effect such exchange at any
time after any Person (other than the Company, any Subsidiary of the Company,
any employee benefit plan of the Company or any such Subsidiary, or any entity
holding Common Shares for or pursuant to the terms of any such plan), together
with all Affiliates and Associates of such Person, becomes the Beneficial Owner
of a majority of the Common Shares then outstanding.

                  (b)      Immediately upon the action of the Board of Directors
of the Company ordering the exchange of any Rights pursuant to subsection (a) of
this Section 24 and without any further action and without any notice, the right
to exercise such Rights shall terminate and the only right thereafter of a
holder of such Rights shall be to receive that number of Common Shares equal to
the number of such Rights held by such holder multiplied by the Exchange Ratio.

                                      -43-

<PAGE>

The Company shall promptly give public notice of any such exchange; provided,
however, that the failure to give, or any defect in, such notice shall not
affect the validity of such exchange. The Company promptly shall mail a notice
of any such exchange to all of the holders of such Rights at their last
addresses as they appear upon the registry books of the Rights Agent. Any notice
which is mailed in the manner herein provided shall be deemed given, whether or
not the holder receives the notice. Each such notice of exchange will state the
method by which the exchange of the Common Shares for Rights will be effected
and, in the event of any partial exchange, the number of Rights which will be
exchanged. Any partial exchange shall be effected pro rata based on the number
of Rights (other than Rights which have become void pursuant to the provisions
of Section 11(a)(ii) hereof) held by each holder of Rights.

                  (c)      In any exchange pursuant to this Section 24, the
Company, at its option, may substitute Preferred Shares or common stock
equivalents for Common Shares exchangeable for Rights, at the initial rate of
one one-hundredth of a Preferred Share (or an appropriate number of common stock
equivalents) for each Common Share, as appropriately adjusted to reflect
adjustments in the voting rights of the Preferred Shares pursuant to the terms
thereof, so that the fraction of a Preferred Share delivered in lieu of each
Common Share shall have the same voting rights as one Common Share.

                  (d)      In the event that there shall not be sufficient
Common Shares, Preferred Shares or common stock equivalents authorized by the
Company's certificate of incorporation and not outstanding or subscribed for, or
reserved or otherwise committed for issuance for purposes other than upon
exercise of Rights, to permit any exchange of Rights as contemplated in
accordance with this Section 24, the Company shall take all such action as may
be necessary to

                                      -44-

<PAGE>

authorize additional Common Shares, Preferred Shares or common stock equivalents
for issuance upon exchange of the Rights.

                  (e)      The Company shall not be required to issue fractions
of Common Shares or to distribute certificates which evidence fractional Common
Shares. In lieu of such fractional Common Shares, the Company shall pay to the
registered holders of the Right Certificates with regard to which such
fractional Common Shares would otherwise be issuable an amount in cash equal to
the same fraction of the current per share market value of a whole Common Share.
For the purposes of this paragraph (e), the current per share market value of a
whole Common Share shall be the closing price of a Common Share (as determined
pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day
immediately prior to the date of exchange pursuant to this Section 24.

         Section 25.  Notice of Certain Events.

                  (a)      In case the Company shall after the Distribution Date
propose (i) to pay any dividend payable in stock of any class to the holders of
its Preferred Shares or to make any other distribution to the holders of its
Preferred Shares (other than a regular quarterly cash dividend), (ii) to offer
to the holders of its Preferred Shares rights or warrants to subscribe for or to
purchase any additional Preferred Shares or shares of stock of any class or any
other securities, rights or options, (iii) to effect any reclassification of its
Preferred Shares (other than a reclassification involving only the subdivision
of outstanding Preferred Shares), (iv) to effect any consolidation or merger
into or with, or to effect any sale or other transfer (or to permit one or more
of its Subsidiaries to effect any sale or other transfer), in one or more
transactions, of 50% or more of the assets or earning power of the Company and
its Subsidiaries (taken as a whole) to, any other Person, (v) to effect the
liquidation, dissolution or winding up of the Company, or (vi)

                                      -45-

<PAGE>

to declare or pay any dividend on the Common Shares payable in Common Shares or
to effect a subdivision, combination or consolidation of the Common Shares (by
reclassification or otherwise than by payment of dividends in Common Shares),
then, in each such case, the Company shall give to each holder of a Right
Certificate, in accordance with Section 26 hereof, a notice of such proposed
action, which shall specify the record date for the purposes of such stock
dividend, or distribution of rights or warrants, or the date on which such
reclassification, consolidation, merger, sale, transfer, liquidation,
dissolution, or winding up is to take place and the date of participation
therein by the holders of the Common Shares and/or Preferred Shares, if any such
date is to be fixed, and such notice shall be so given in the case of any action
covered by clause (i) or (ii) above at least 10 days prior to the record date
for determining holders of the Preferred Shares for purposes of such action, and
in the case of any such other action, at least 10 days prior to the date of the
taking of such proposed action or the date of participation therein by the
holders of the Common Shares and/or Preferred Shares, whichever shall be the
earlier.

                  (b)      In case any event set forth in Section 11(a)(ii)
hereof shall occur, then the Company shall as soon as practicable thereafter
give to each holder of a Right Certificate, in accordance with Section 26
hereof, a notice of the occurrence of such event, which notice shall describe
such event and the consequences of such event to holders of Rights under Section
11(a)(ii) hereof.

         Section 26. Notices. Notices or demands authorized by this Agreement to
be given or made by the Rights Agent or by the holder of any Right Certificate
to or on the Company shall be sufficiently given or made if received by
first-class mail, postage prepaid, addressed (until another address is filed in
writing with the Rights Agent) as follows:

                           Tiffany & Co.

                                      -46-

<PAGE>

                           Fifth Avenue & 57th Street
                           New York, New York  10022
                           Attention: Senior Vice President and General Counsel

Subject to the provisions of Section 21 hereof, any notice or demand authorized
by this Agreement to be given or made by the Company or by the holder of any
Right Certificate to or on the Rights Agent shall be sufficiently given or made
if received by first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Company) as follows:

                           Mellon Investor Services LLC
                           85 Challenger Road
                           Ridgefield Park, New Jersey, 07660
                           Attention: Relationship Manager

Notices or demands authorized by this Agreement to be given or made by the
Company or the Rights Agent to the holder of any Right Certificate shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed to such holder at the address of such holder as shown on the registry
books of the Company.

         Section 27. Supplements and Amendments. The Company may from time to
time, and the Rights Agent shall, if the Company so directs, supplement or amend
this Agreement without the approval of any holders of Right Certificates in
order to cure any ambiguity, to correct or supplement any provision contained
herein which may be defective or inconsistent with any other provisions herein,
or to make any change to or delete any provision hereof or to adopt any other
provisions with respect to the Rights which the Company may deem necessary or
desirable; provided, however, that from and after such time as any Person
becomes an Acquiring Person, this Agreement shall not be amended or supplemented
in any manner which would adversely affect the interests of the holders of
Rights (other than an Acquiring Person and its Affiliates and Associates). Any
supplement or amendment authorized by this Section 27 will be evidenced by a
writing signed by the Company and the Rights Agent.

                                      -47-

<PAGE>

         Section 28. Successors. All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.

         Section 29. Benefits of this Agreement. Nothing in this Agreement shall
be construed to give to any person or entity other than the Company, the Rights
Agent and the registered holders of the Right Certificates (and, prior to the
Distribution Date, the Common Shares) any legal or equitable right, remedy or
claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of
the Right Certificates (and, prior to the Distribution Date, the Common Shares).

         Section 30. Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

         Section 31. Governing Law. This Agreement and each Right Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
State of Delaware and for all purposes shall be governed by and construed in
accordance with the laws of such State applicable to contracts to be made and
performed entirely within such State.

         Section 32. Counterparts. This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

                                      -48-

<PAGE>

         Section 33. Descriptive Headings. Descriptive headings of the several
Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

         Section 34. Administration. The Board of Directors of the Company shall
have the exclusive power and authority to administer and interpret the
provisions of this Agreement and to exercise all rights and powers specifically
granted to the Board of Directors or the Company or as may be necessary or
advisable in the administration of this Agreement. All such actions,
calculations, determinations and interpretations which are done or made by the
Board of Directors in good faith shall be final, conclusive and binding on the
Company, the Rights Agent, the holders of the Rights and all other parties and
shall not subject the Board of Directors to any liability to the holders of the
Rights.

         IN WITNESS WHEREOF, the parties hereto have caused this Amended and
Restated Rights Agreement to be duly executed and attested, all as of the day
and year first above written.

Attest:                            TIFFANY & CO.

/s/ Patrick B. Dorsey              By: /s/ James N. Fernandez
_____________________________          ____________________________________
Patrick B. Dorsey                      James N. Fernandez
Senior Vice President                  Executive Vice President-Chief
General Counsel and Secretary          Financial Officer

Attest:                            MELLON INVESTOR SERVICES LLC

/s/ Robert Kavanagh                By: /s/ Deborah Bass
_____________________________          ____________________________________
Robert Kavanagh                        Deborah Bass
                                       AVP Client Service Manager

                                      -49-

<PAGE>

                                                                       Exhibit A

                            Form of Right Certificate

Certificate No.  R-                                               ________Rights

         NOT EXERCISABLE AFTER SEPTEMBER 17, 2008 OR EARLIER IF REDEMPTION OR
         EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.01 PER
         RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.
         UNDER CERTAIN CIRCUMSTANCES, RIGHTS THAT ARE OR WERE ACQUIRED OR
         BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR ANY ASSOCIATES OR
         AFFILIATES THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT)
         OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID.

                                Right Certificate

                                  TIFFANY & CO.

         This certifies that ________________________, or registered assigns, is
the registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions and conditions of
the Amended and Restated Rights Agreement, dated as of April __ 2004 (the
"Rights Agreement"), between Tiffany & Co., a Delaware corporation (the
"Company"), and Mellon Investor Services LLC, a New Jersey limited liability
company (successor to ChaseMellon Shareholder Services, L.L.C.), as rights agent
(the "Rights Agent"), to purchase from the Company at any time after the
Distribution Date (as such term is defined in the Rights Agreement) and prior to
5:00 P.M., City, New York time, on September 17 2008, at the principal office of
the Rights Agent, or at the office of its successor as Rights Agent, one
one-hundredth of a fully paid non-assessable share of Series A Junior
Participating Cumulative Preferred Stock, par value $0.01 per share (the
"Preferred Shares"), of the Company, at a purchase price of $165 per one
one-hundredth of a Preferred Share (the "Purchase Price"), upon presentation and
surrender of this Right Certificate with the certification and the Form of
Election to Purchase duly executed. The number of Rights evidenced by this Right
Certificate (and the number of one one-hundredths of a Preferred Share which may
be purchased upon exercise hereof) set forth above, and the Purchase Price set
forth above, are the number and Purchase Price as of September 22, 1998, based
on the Preferred Shares as constituted at such date. As provided in the Rights
Agreement, the Purchase Price and the number of one one-hundredths of a
Preferred Share which may be purchased upon the exercise of the Rights evidenced
by this Right Certificate are subject to modification and adjustment upon the
happening of certain events.

         From and after the occurrence of an event described in Section
11(a)(ii) of the Rights Agreement, if the Rights evidenced by this Right
Certificate are or were at any time on or after the earlier of (x) the date of
such event and (y) the Distribution Date (as such term is defined in the Rights
Agreement) acquired or beneficially owned by an Acquiring Person or an Associate
or Affiliate of an Acquiring Person (as such terms are defined in the Rights
Agreement), such

                                      A-1

<PAGE>

Rights shall become void, and any holder of such Rights shall thereafter have no
right to exercise such Rights.

         This Right Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates. Copies of
the Rights Agreement are on file at the principal executive offices of the
Company and the offices of the Rights Agent.

         This Right Certificate, with or without other Right Certificates, upon
surrender at the principal office of the Rights Agent, may be exchanged for
another Right Certificate or Right Certificates of like tenor and date
evidencing Rights entitling the holder to purchase a like aggregate number of
Preferred Shares as the Rights evidenced by the Right Certificate or Right
Certificates surrendered shall have entitled such holder to purchase. If this
Right Certificate shall be exercised in part, the holder shall be entitled to
receive upon surrender hereof another Right Certificate or Right Certificates
for the number of whole Rights not exercised.

         Subject to the provisions of the Rights Agreement, at the Company's
option, the Rights evidenced by this Certificate (i) may be redeemed by the
Company at a redemption price of $0.01 per Right or (ii) may be exchanged in
whole or in part for shares of the Company's Common Stock, par value $0.01 per
share, or Preferred Shares.

         No fractional Preferred Shares will be issued upon the exercise of any
Right or Rights evidenced hereby (other than fractions which are integral
multiples of one one-hundredth of a Preferred Share, which may, at the election
of the Company, be evidenced by depository receipts), but in lieu thereof a cash
payment will be made, as provided in the Rights Agreement.

         No holder of this Right Certificate shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of the Preferred
Shares or of any other securities of the Company which may at any time be
issuable on the exercise hereof, nor shall anything contained in the Rights
Agreement or herein be construed to confer upon the holder hereof, as such, any
of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting stockholders (except as
provided in the Rights Agreement), or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by this Right
Certificate shall have been exercised as provided in the Rights Agreement.

         This Right Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by the Rights Agent.

                                      A-2

<PAGE>

         WITNESS the facsimile signature of the proper officers of the Company
and its corporate seal. Dated as of _____________________ , ____.

Attest:                                      TIFFANY & CO.

_______________________________________      By: _______________________________

Countersigned:

MELLON INVESTOR SERVICES LLC

By: __________________________________
    Authorized Signature

                                      A-3

<PAGE>

                    Form of Reverse Side of Right Certificate

                               FORM OF ASSIGNMENT

                (To be executed by the registered holder if such
               holder desires to transfer the Right Certificate.)

         FOR VALUE RECEIVED ___________________________________ hereby sells,
assigns and transfers unto ____________________________________________________
                              (Please print name and address of transferee)
this Right Certificate, together with all right, title and interest therein, and
does hereby irrevocably constitute and appoint __________________________,
Attorney, to transfer the within Right Certificate on the books of the
within-named Company, with full power of substitution.

Dated: __________ ___, ____

                                                         _______________________
                                                               Signature

Signature Guaranteed:

         Signatures must be guaranteed by a member firm of a registered national
securities exchange, a member of the National Association of Securities Dealers,
Inc., or a commercial bank or trust company having an office or correspondent in
the United States.

         The undersigned hereby certifies that the Rights evidenced by this
Right Certificate are not beneficially owned by an Acquiring Person or an
Affiliate or Associate thereof (as defined in the Rights Agreement).

                                                         _______________________
                                                               Signature

                                      A-4

<PAGE>

             Form of Reverse Side of Right Certificate -- continued

                          FORM OF ELECTION TO PURCHASE

                      (To be executed if holder desires to
                        exercise the Right Certificate.)

TIFFANY & CO.:

         The undersigned hereby irrevocably elects to exercise _________________
Rights represented by this Right Certificate to purchase the Preferred Shares
issuable upon the exercise of such Rights and requests that certificates for
such Preferred Shares be issued in the name of:

Please insert social security
or other identifying number

________________________________________________________________________________
                         (Please print name and address)

________________________________________________________________________________

If such number of Rights shall not be all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:

Please insert social security
or other identifying number

________________________________________________________________________________
                         (Please print name and address)

________________________________________________________________________________

________________________________________________________________________________

Dated: _______________ ___, _______

                                                          ___________________
                                                              Signature

Signature Guaranteed:

         Signatures must be guaranteed by a member firm of a registered national
securities exchange, a member of the National Association of Securities Dealers,
Inc., or a commercial bank or trust company having an office or correspondent in
the United States.

                                      A-5

<PAGE>

             Form of Reverse Side of Right Certificate -- continued

         The undersigned hereby certifies that the Rights evidenced by this
Right Certificate are not beneficially owned by an Acquiring Person or an
Affiliate or Associate thereof (as defined in the Rights Agreement).

                                                          ___________________
                                                              Signature

                                     NOTICE

         The signature in the foregoing Forms of Assignment and Election must
conform to the name as written upon the face of this Right Certificate in every
particular, without alteration or enlargement or any change whatsoever.

         In the event the certification set forth above in the Form of
Assignment or the Form of Election to Purchase, as the case may be, is not
completed, the Company and the Rights Agent will deem the beneficial owner of
the Rights evidenced by this Right Certificate to be an Acquiring Person or an
Affiliate or Associate thereof (as defined in the Rights Agreement) and such
Assignment or Election to Purchase will not be honored.

                                      A-6<PAGE>

                                                                  EXHIBIT 10.113
                                                                   Tiffany & Co.
                                                             Report on Form 10-K

                               TIFFANY AND COMPANY

                                  PENSION PLAN

               AMENDED AND RESTATED EFFECTIVE AS OF MARCH 30, 2004
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
SECTION 1 - DEFINITIONS...................................................    1

SECTION 2 - PARTICIPATION.................................................    9

SECTION 3 - LEAVES OF ABSENCE.............................................   11

SECTION 4 - VESTING.......................................................   12

SECTION 5 - BENEFITS......................................................   14

SECTION 6 - CONTRIBUTIONS.................................................   25

SECTION 7 - ADMINISTRATION OF THE PLAN....................................   26

SECTION 8 - MANAGEMENT OF ASSETS..........................................   28

SECTION 9 - CERTAIN RIGHTS AND OBLIGATIONS................................   29

SECTION 10 - CLAIM PROCEDURES.............................................   31

SECTION 11 - NON-ALIENATION OF BENEFITS...................................   32

SECTION 12 - TOP HEAVY PLAN...............................................   33

SECTION 13 - AMENDMENTS...................................................   35

SECTION 14 - CONSTRUCTION.................................................   36

APPENDIX I................................................................   37

APPENDIX II...............................................................   38

APPENDIX III..............................................................   39
</TABLE>
<PAGE>
                               TIFFANY AND COMPANY

                                  PENSION PLAN

                    ========================================

                             SECTION 1 - DEFINITIONS

                    ========================================

      The following words and phrases as used herein shall have the following
meanings unless a different meaning is plainly required by the context:

(1)   "Plan"                  Tiffany and Company Pension Plan, as described
                              herein or as from time to time hereafter amended
                              or restated.

(2)   "Company"               Tiffany and Company, a New York corporation,
                              Howard H. Sweet & Son, Inc. (formerly, Tiffco
                              Jewelry and Chain Crafts, Inc.), a Delaware
                              corporation, Judel Products Corp. (formerly,
                              Glassware Acquisition Inc.) a West Virginia
                              corporation, L.S. Wholesale, Inc., a Massachusetts
                              corporation, L.S. Holding (Florida), Inc., a
                              Florida corporation, L.S. Holding (USA), Inc., an
                              Alaska corporation, and L.S. Holding, Inc., a U.S.
                              Virgin Islands corporation, provided, however,
                              that, in the case of a person who is an Employee
                              of Tiffany and Company on his Employment
                              Commencement Date, the term "Company" as used
                              herein with respect to such person shall refer to
                              Tiffany and Company, in the case of a person who
                              is an Employee of Howard H. Sweet & Son, Inc. on
                              his Employment Commencement Date, the term
                              "Company" as used herein with respect to such
                              person shall refer to Howard H. Sweet & Son, Inc.,
                              in the case of  a person who is an Employee of
                              Judel Products Corp. on his Employment
                              Commencement Date, the term "Company" as used
                              herein with respect to such person shall refer to
                              Judel Products Corp., in the case of a person who
                              is an Employee of L.S. Wholesale, Inc. on his
                              Employment Commencement Date, the term "Company"
                              as used herein with respect to such person shall
                              refer to L.S. Wholesale, Inc., in the case of a
                              person who is an Employee of L.S. Holding
                              (Florida), Inc. on his Employment Commencement
                              Date, the term "Company" as used herein with
                              respect to such person shall refer to L.S.
                              (Florida), Inc., in the case of a person who is an
                              Employee of L.S. Holding (USA), Inc. on his
                              Employment Commencement Date, the term "Company"
                              as used herein with respect to such person shall
                              refer to L.S. Holding (USA), Inc., and in the case
                              of a person who is an Employee of L.S. Holding,
                              Inc. on his Employment Commencement Date, the term
                              "Company" as used herein with respect to such
                              person shall refer to L.S. Holding, Inc.

                                       1
<PAGE>
(3)   "Board of Directors"    Board of Directors of Tiffany and Company.

(4)   "Pre-ERISA
      Plan"                   Tiffany and Company Pension Plan and Trust as in
                              effect through January 31, 1976, incorporating an
                              informal pension plan maintained by the Company
                              prior to February 1, 1968.

(5)   "Affiliate"             Any member of the controlled group of companies of
                              which the Company is a member within the meaning
                              of Section 414(b), (c) and (m) of the Code.

(6)   "Committee"             The Pension Committee as described in Section 7.

(7)   "Plan Year"             Each twelve (12) month period commencing February
                              1 and ending on or before January 31, 1981, the
                              eleven (11) month period ending December 31, 1981
                              and each calendar year thereafter.

(8)   "Employee"              Any person employed by the Company or by a United
                              States Affiliate of the Company that has adopted
                              this Plan who receives regular stated compensation
                              from the Company or from such other United States
                              Affiliate of the Company, but excluding employees
                              (a) whose principal place of work is outside the
                              United States and (b) who are paid their
                              Compensation from a foreign bank or bank branch or
                              who are eligible to receive retirement, severance
                              or similar benefits under foreign law or as a
                              result of foreign custom. Notwithstanding any
                              other provision of the Plan, in the case of an
                              Employee who shall transfer from a foreign
                              location to a U.S. location or vice versa, the
                              Committee may, by regulation or otherwise and to
                              the extent it considers advisable, treat service
                              and/or compensation during the period of such
                              transfer, including compensation from and service
                              with an Affiliate, as service and/or compensation
                              with the Company for the purposes of vesting
                              and/or for determining the amount of pension or
                              other benefits which may be payable under the
                              Plan.

                              Based on his stated work schedule an Employee
                              shall be classified as a Regular Employee or a
                              Part-time Employee. A change in status between
                              Part-time Employee and Regular Employee shall be
                              deemed effective for purposes of Subsections (3)
                              and (4) of Section 4 as of the first of the month
                              coincident with or next following the date of such
                              change or, in the case of an Employee who
                              terminates employment and is reemployed in a
                              different status prior to incurring a Break in
                              Service, as of the intervening first day of a Plan
                              Year or, if none, as of the first of the month
                              coincident with or next following the date of
                              termination.

                              If a change in status between Part-time Employee
                              and Regular Employee is deemed effective on other
                              than the first day of a Plan Year and clause (ii)
                              (A) of Subsection 4(3) is applicable to the

                                       2
<PAGE>
                              Employee, he shall not incur a Break in Service
                              with respect to the Plan Year in which the change
                              is deemed effective, and shall for purposes of
                              determining Compensation, Average Final
                              Compensation and Creditable Service be considered
                              to have been a Regular Employee for the entirety
                              of such Plan Year; if such a change in status is
                              deemed effective on other than the first day of a
                              Plan Year and clause (ii) (B) of Subsection 4(3)
                              or Subsection 4(4) is applicable to the Employee,
                              he shall for purposes of determining Compensation,
                              Average Final Compensation and Creditable Service
                              be considered to have been a Part-time Employee
                              for the entirety of the Plan Year in which the
                              change is deemed effective.

                              However, "Employee" shall exclude any individual
                              retained by the Company to perform services for
                              the Company (for either a definite or indefinite
                              duration) and is characterized thereby as a
                              fee-for-service worker or independent contractor
                              or in a similar capacity (rather than in the
                              capacity of an employee), regardless of such
                              individual's status under common law, including,
                              without limitation, any such individual who is or
                              has been determined by a third party, including,
                              without limitation, a government agency or board
                              or court or arbitrator, to be an employee of the
                              Company for any purpose, including, without
                              limitation, for purposes of any employee benefit
                              plan of the Company (including this Plan) or for
                              purposes of federal, state or local tax
                              withholding, employment tax or employment law.

(9)   "Participant"           Any person included as a Participant as provided
                              in Section 2, except an Employee covered by a
                              collective bargaining agreement which expressly
                              excludes members of the collective bargaining unit
                              from the Plan.

(10)  "Compensation"          (i) In the case of an Employee who is not paid on
                              a piecework basis, the actual base salary paid to
                              him for services rendered to the Company
                              (exclusive of amounts attributable to the exercise
                              of employee stock options), including straight
                              time for all hours worked, commissions, bonuses,
                              premiums and incentives; and (ii) in the case of
                              an Employee who is paid on a piecework basis, the
                              actual remuneration paid to him; and (iii) in the
                              case of any Employee shown in the attached
                              Appendix I, the reference to Company for purposes
                              of this Subsection 1(10) only shall also refer to
                              Affiliates of the Company prior to October 15,
                              1984.

                              For the purposes of determining a Participant's
                              Compensation under the Plan, such calculation
                              shall be made without regard to any deductions
                              from a Participant's earnings for (i)
                              contributions to the Tiffany & Co. Employee Profit
                              Sharing and Retirement Savings Plan, (ii) premium
                              payments under any of the Company's health care
                              plan(s), (iii) allocations to a Dependent Care
                              Spending Account, or (iv) deferrals under the
                              Company's Executive

                                       3
<PAGE>
                              Deferral Plan, which are not includable in the
                              gross income of the Participant for the taxable
                              year in which such contributions, payments,
                              allocations and/or deferrals are made.

                              Compensation taken into account under the Plan
                              shall be limited to the maximum amount of
                              Compensation that may be taken into account under
                              Section 401(a)(17) of the Code, as from time to
                              time adjusted and/or amended.

(11)  "Average Final
      Compensation"           With respect to an Employee, his average annual
                              Compensation during those five years of his last
                              ten years of Creditable Service in which his
                              compensation was highest.  If an Employee has less
                              than five years of Creditable Service or less than
                              five Plan Years in which he accrued Creditable
                              Service, as the case may be, his "Average Final
                              Compensation" shall be computed over all such
                              years.

                              Except in respect of subdivision (b) of Subsection
                              5(1), "Average Final Compensation" shall reflect
                              those five years of his last ten years of
                              creditable service prior to July 31, 1985 or
                              December 31, 1984, as required by Section 5, in
                              which his compensation was highest. Compensation
                              earned subsequent to July 31, 1985 or December 31,
                              1984, as required by Section 5, shall not be
                              reflected in this calculation.

                              With respect to the change in the definition of
                              Average Final Compensation under Subsection 1(11)
                              of the Plan effective for Plan Years beginning
                              after December 31, 1994, such change shall not
                              apply to any Compensation earned prior to the
                              effective date of such change. Accordingly, if
                              Compensation for any Plan Year beginning prior to
                              January 1, 1995 is taken into account in
                              calculating Average Final Compensation or for any
                              other purpose under the Plan, Compensation for
                              such Plan Year shall be determined in accordance
                              with the previous definition of Average Final
                              Compensation. In addition, the Accrued Benefit
                              determined in accordance with the new definition
                              of Average Final Compensation shall not be less
                              than the Accrued Benefit determined as of December
                              31, 1994 under the previous definition.

 (12) "Creditable
      Service"                The period including fractions of a year rounded
                              up to the next whole month of an Employee's
                              service which is counted as a period of service
                              for vesting purposes under Section 4; provided,
                              however, that in the case of an Employee who
                              accrued Creditable Service hereunder both as a
                              Part-time Employee and also as a Regular Employee,
                              any Plan Year during which he completes at least
                              1,000 hours of service but less than the standard
                              number of hours of service in the regularly
                              scheduled work weeks for the

                                       4
<PAGE>
                              location at which he is employed shall be counted
                              as the corresponding fraction of a year of
                              Creditable Service; and provided, further, that in
                              the event of a change in status to which clause
                              (ii)(B) of Subsection 4(3) applies, there shall be
                              taken into account for purposes of the preceding
                              clause, with respect to the Plan Year in which the
                              change in status is effective, forty-five hours of
                              service for each week or partial week of service
                              performed subsequent to the change in status and
                              before the end of such Plan Year.

                              If an Employee becomes re-employed after February
                              1, 1976, and again becomes a Participant pursuant
                              to Section 2, subject to Subsection 4(5), his
                              service shall be credited as of his Reemployment
                              Commencement Date.

                              For an Employee shown in the attached Appendix I,
                              any period during which the Employee was an
                              employee of an Affiliate of the Company prior to
                              October 15, 1984.

(13)  "Actuarial
      Equivalent"             A benefit of equivalent value, when computed on
                              the basis of the factors shown in Appendix II.
                              Effective as of January 1, 2000, the single sum
                              value which is the Actuarial Equivalent of any
                              other form of benefit shall in all cases be
                              determined using the Applicable Interest Rate and
                              the Applicable Mortality Table.

(14)  "Social
      Security
      Benefit"                The amount of the Participant's anticipated
                              unreduced primary insurance benefit under Title II
                              of the Federal Social Security Act.  The benefit
                              shall be computed on the basis of such Act in
                              effect at the earlier of July 31, 1985, or the
                              time he last ceases to be a Participant, and shall
                              consist of that annual amount to which he would
                              upon proper application be entitled at the date of
                              retirement or termination, or at age 65 if later,
                              on the basis of his Compensation as determined
                              under the Plan irrespective of earnings he may be
                              receiving in excess of any limit on earnings for
                              full entitlement to such benefit.

                              When used in connection with the computation of
                              any retirement allowance other than a retirement
                              allowance payable to a Participant who terminates
                              employment at or after age 65, it shall mean the
                              said Social Security Benefit computed on the
                              assumption that the Participant will continue to
                              receive Compensation until age 65 for purposes of
                              Social Security in the same amount as in effect on
                              the date of his retirement or termination. With
                              respect to periods for which the Participant's
                              actual compensation for Social Security purposes
                              is not available, the Social Security Benefit
                              shall be calculated on the assumption that the
                              Participant had compensation for Social Security
                              purposes after 1951, or age 22 if

                                       5
<PAGE>
                              later and prior to his last date of hire or rehire
                              which increased 6 percent each year to his
                              Compensation on such date of hire or rehire.

                              Each Participant shall have the right to have his
                              Social Security Benefit computed on the basis of
                              the Participant's actual salary history as of the
                              earlier of July 31, 1985, or the time he last
                              ceases to be a Participant, instead of estimated
                              compensation. Each Employee shall be provided with
                              written notice of the Employee's right to supply
                              actual salary history and of the financial
                              consequences of failing to supply such history.
                              The notice must be given each time the summary
                              plan description is provided to the Employee and
                              must also be given upon separation from service.
                              The notice must state that the Employee can obtain
                              the actual salary history from the Social Security
                              Administration. If the Participant supplies
                              documentation of his or her actual salary history,
                              the Participant's benefit will be adjusted to the
                              offset based on actual salary history for years
                              previously estimated before separation from
                              service (assuming no post-separation or
                              post-retirement compensation). Such documentation
                              must be supplied within a reasonable period
                              following the later of the date of separation from
                              service (by retirement or otherwise) or the time
                              when the Participant is notified of the benefit to
                              which he is entitled.

(15)  "Hour of
      Service"                (1) Any hour for which a Regular Employee or a
                              Part-time Employee is directly or indirectly paid
                              or entitled to payment by the Company for the
                              performance of duties, which such hours shall be
                              credited, in the case of a Part-time Employee, for
                              the computation period or periods in which the
                              duties are performed;

                              (2) Any hour for which a Part-time Employee is
                              directly or indirectly paid or entitled to payment
                              by the Company for reasons (such as vacation,
                              sickness or disability) other than for the
                              performance of duties, which such hours shall be
                              credited to the Part-time Employee in accordance
                              with Department of Labor Regulations section
                              2530.200b-2; and

                              (3) Any hour for which back pay, irrespective of
                              mitigation of damages, has been either awarded or
                              agreed to by the Company in the case of a
                              Part-time Employee, which such hours shall be
                              credited to the Part-time Employee for the
                              computation period or periods to which the award
                              or agreement pertains.

                              Any Employee who is paid on a piecework basis
                              shall be credited with ten Hours of Service for
                              each day on which he would be entitled to credit
                              for one Hour of Service under the foregoing
                              definition.

                                       6
<PAGE>
(16)  "Employment
      Commencement
      Date"                   Except as provided in Section 2(9) below, in the
                              case of a Regular Employee, the date on which he
                              first performs an Hour of Service. In the case of
                              a Part-time Employee, "Employment Commencement
                              Date" shall mean the first day for which he is
                              entitled to be credited with an Hour of Service
                              under subdivision (1) of Subsection 1(15) above.

(17)  "Discontinuance
      of Active
      Employment Date"        In the case of a Regular Employee, the earlier of
                              (i) his retirement or other termination of
                              employment with the Company, or (ii) the first
                              anniversary of the first day of any continuing
                              period of absence from service with the Company,
                              with or without pay, which is neither (A) a leave
                              of absence described in Subsection (1), (2) or
                              (3) of Section 3, nor (B) the result of his
                              retirement or termination.

(18)  "Break in
      Service"                (1)   In the case of a Part-time Employee, a Plan
                              Year in which he fails to complete an Hour of
                              Service, other than a Plan Year during any part of
                              which he is on a leave of absence described in
                              Section 3.  In the case of a Regular Employee, a
                              Break in Service shall occur when he fails to
                              perform an Hour of Service within a one-year
                              period beginning on any Discontinuance of Active
                              Employment Date.

                              (2) In addition, and notwithstanding the rules
                              described under subdivision (1) of Subsection
                              1(18) above, any individual who is absent from the
                              service of the Company on account of pregnancy,
                              birth of a child of such individual, or for
                              purposes of caring for such a child during the
                              period immediately following childbirth or
                              placement for adoption shall be credited, for
                              purposes of this Section, with the Hours of
                              Service for which he would normally have received
                              credit had he not been absent from the service of
                              the Company for one of the reasons described
                              above, up to a maximum of five hundred and one
                              (501) Hours of Service, which hours shall be
                              credited in accordance with Section 202(b)(5) of
                              ERISA, as amended by the Retirement Equity Act of
                              1984, and related regulations.

(19)  "Reemployment
      Commencement
      Date"                   In the case of a Regular Employee, the date on
                              which he first performs an Hour of Service
                              following a Break in Service.  In the case of a
                              Part-time Employee, "Reemployment Commencement
                              Date" shall mean the first day for which he is
                              entitled to be credited with an Hour of Service
                              under subdivision (1) of Subsection 1(15)
                              following (i) a Break in Service which follows
                              either (A) a Plan Year or other eligibility
                              computation period

                                       7
<PAGE>
                              described in Section 2 in which he is credited
                              with at least an Hour of Service, or (B) a Plan
                              Year during any part of which he is on a leave of
                              absence described in Section 3, or (ii) a Plan
                              Year in which he is credited with no Hours of
                              Service which follows a Reemployment Commencement
                              Date established under clause (i).

(20)                          The masculine pronoun wherever used shall include
                              the feminine.

(21)  "Code"                  Internal Revenue Code of 1986, as amended.

(22)  "Taxable Wage
      Base"                   The contribution and benefit base under section
                              230 of the Federal Social Security Act as in
                              effect in the year in question.

(23)  "Covered
      Compensation"           The average (without indexing) of the Taxable Wage
                              Bases in effect for each calendar year during the
                              35-year period ending with the year in which the
                              Participant attains (or will attain) social
                              security retirement age, calculated as provided in
                              Treasury Regulation Section 1.401(1)-1(c)(7).

(24)  "Accrued Benefit"       The amount on a given date of the benefits
                              provided under Subsection 5(1) of the Plan using
                              Average Final Compensation, Covered Compensation
                              and Creditable Service determined as of such date.
                              The Accrued Benefit may be expressed in a form
                              which is the Actuarial Equivalent.

(25)  "Applicable Interest
      Rate"                   For any distribution the annual interest rate on
                              30-year Treasury securities as specified by the
                              Commissioner of the Internal Revenue Service in
                              revenue rulings, notices or other guidance,
                              published in the Internal Revenue Bulletin, for
                              the third month preceding the first day of the
                              month in which the benefit commencement date
                              occurs.

(26)  "Applicable Mortality
      Table"                  The mortality table based on the prevailing
                              commissioners' standard table (described in
                              section 807(d)(5)(A) of the Code) used to
                              determine reserves for group annuity contracts
                              issued on the date as of which present value is
                              determined (without regard to any other
                              subparagraph of section 807(d)(5) of the Code),
                              that is prescribed by the Commissioner of the
                              Internal Revenue Service in revenue rulings,
                              notices, or other guidance, published in the
                              Internal Revenue Bulletin.

                                       8
<PAGE>
                            SECTION 2 - PARTICIPATION

                    ========================================

(1)   Any person who is a Participant as of December 31, 1999 shall remain a
Participant in the Plan on January 1, 2000. After December 31, 1999, a Regular
Employee shall become a Participant on the first anniversary of his Employment
Commencement Date, provided that he is an Employee on such first anniversary. A
Part-time Employee shall become a Participant on January 1 or July 1 coincident
with or next following the first anniversary of his Employment Commencement
Date, provided (i) that he is an Employee on such January 1 or July 1, and (ii)
that he completes 1,000 Hours of Service during the one-year period commencing
on his Employment Commencement Date. If a person would have become a Participant
but for the fact that he was not an Employee on the applicable entry date, he
shall nevertheless become a Participant immediately upon his again becoming an
Employee, provided he again becomes an Employee prior to incurring a Break in
Service.

(2)   If a Part-time Employee does not complete 1,000 Hours of Service during
the one-year period commencing on his Employment Commencement Date, he shall
become a Participant immediately following the close of the first Plan Year
commencing after his Employment Commencement Date in which he does complete
1,000 Hours of Service, other than a Plan Year in which he has a Reemployment
Commencement Date, in which case he shall become a Participant immediately
following the close of (i) the one-year period commencing on such Reemployment
Commencement Date or (ii) the first Plan Year commencing after such Reemployment
Commencement Date, in which he completes 1,000 Hours of Service.

(3)   A Regular Employee who has become a Participant shall cease to be a
Participant on his Discontinuance of Active Employment Date, and a Part-time
Employee who has become a Participant shall cease to be a Participant on the
date he ceases to be an Employee or, if earlier, on the date on which he incurs
a Break in Service. Such a former Participant, unless he ceased to be a
Participant as a result of incurring a Break in Service, shall immediately again
become a Participant if, prior to incurring a Break in Service, he either (i)
performs an Hour of Service as a Regular Employee, or (ii) is entitled to be
credited with an Hour of Service under subdivision (1) of Subsection 1(15) as a
Part-time Employee.

(4)   If an Employee who is vested ceases to be a Participant and has a
subsequent Reemployment Commencement Date on which he is a Regular Employee, he
shall again become a Participant as of his Reemployment Commencement Date if (i)
he is an Employee on the first anniversary of such date or, (ii) he is not an
Employee on such first anniversary but again becomes an Employee prior to
incurring a Break in Service which is subsequent to his Reemployment
Commencement Date. If an Employee who is vested ceases to be a Participant and
has a subsequent Reemployment Commencement Date on which he is a Part-time
Employee, he shall again become a Participant as of his Reemployment
Commencement Date if he completes 1,000 Hours of Service during the one-year
period commencing on his Reemployment Commencement Date or, if he does not, as
of the first day of the first Plan Year commencing after his Reemployment
Commencement Date in which he completes 1,000 Hours of Service, other than a
Plan Year in which he has another Reemployment Commencement Date.

(5)   If any Employee who is not vested ceases to be a Participant and has a
subsequent Reemployment Commencement Date, he shall again become a Participant
in accordance with the appropriate rule of Subsection (4) for vested Employees,
provided that the number of consecutive one-year Breaks in Service did not equal
or exceed the greater of 5 or the aggregate number of years of service before
such Break in Service. If his prior service does not satisfy the applicable
condition of the preceding sentence, his

                                       9
<PAGE>
Reemployment Commencement Date will be deemed his Employment Commencement Date
for purposes of this Section, and rules of Subsections (1) and (2) hereof will
apply.

(6)   For purposes of this Section 2, in determining whether an Employee shall
become a Participant, service with any Affiliate of the Company shall be taken
into account, in accordance with the foregoing rules, as if such service had
been rendered to the Company and such service shall include service as a leased
employee within the meaning of Code Section 414(n) of the Company or an
Affiliate.

(7)   For purposes of this Section 2, William R. Chaney will not be considered a
Participant at any time under the provisions of this Plan.

(8)   Notwithstanding anything herein to the contrary, for purposes of this
Section 2, any person who was an employee of Howard H. Sweet & Son, Inc.
(formerly Tiffco Jewelry and Chain Crafts, Inc.) on January 27, 1997, shall
become a Participant in the Plan as of his or her Employment Commencement Date.

(9)   Notwithstanding anything herein to the contrary, for the purposes of this
Section 2, any person who was an Employee of L.S. Wholesale, Inc., a
Massachusetts corporation, L.S. Holding (Florida), Inc., a Florida corporation,
L.S. Holding (USA), Inc., an Alaska corporation, or L.S. Holding, Inc., a U.S.
Virgin Islands corporation, on October 8, 2002, shall become a Participant in
the Plan as of October 8, 2002 and October 8, 2002 shall be deemed the
Employment Commencement Date of such a person.

                                       10
<PAGE>
                          SECTION 3 - LEAVES OF ABSENCE

                    ========================================

(1)   The Company may authorize an unpaid or paid leave of absence under its
standard personnel practices as applied in a uniform and non-discriminatory
manner to all Employees similarly situated, provided that the Employee must
return to service with the Company within the period of time specified in the
authorization.

(2)   Any Employee who shall be granted a leave of absence for service in the
armed forces of the United States or in emergency government service, or
pursuant to a leave granted by the Company, shall be deemed to be an Employee
during such leave and his Compensation in the last full calendar year of his
employment immediately preceding the beginning of such leave shall be deemed to
be his annual Compensation for the purposes of the Plan during such leave,
provided that such Employee returns to the employ of the Company within the
period provided by law for the protection of his reemployment rights following
his discharge or release from active duty in such armed forces.

(3)   The Committee may, under rules uniformly applicable to all Employees
similarly situated, include as service and compensation, respectively, for any
Participant retiring hereunder, any period or periods of service and the
compensation earned during such period or periods, not otherwise creditable or
recognized hereunder, rendered or earned in the employment of any Affiliate;
provided that the retirement allowance payable on account of such additional
period of service shall be reduced by any employer-provided retirement benefit
which is payable on account of the same period of service under any retirement
plan of such Affiliate.

(4)   Anything herein contained to the contrary notwithstanding, the Committee
may, under rules uniformly applicable to all Employees similarly situated,
include as service such other periods of excused absence from employment as it
deems appropriate and consistent with Plan objectives.

(5)   Except as otherwise specifically provided in this Section 3, where the
Company authorizes a paid leave of absence which does not require the Employee
to return to service with the Company, such Employee shall be deemed to be an
Employee during such leave for all purposes under the Plan.

                                       11
<PAGE>
                               SECTION 4 - VESTING

                    ========================================

(1)   A person shall be vested if the period of his service equals or exceeds
five years computed in accordance with the rules set forth in this section or
when he attains normal retirement age as specified in subdivision (a) of
Subsection 5(2) hereof. A person shall also be vested if he was (i) an employee
of Howard H. Sweet & Son, Inc. (formerly Tiffco Jewelry and Chain Crafts, Inc.)
on January 27, 1997, and (ii) a Participant in the Plan as of such date.

(2)   There shall be counted as periods of service for vesting purposes the sum
of the following periods:

      (a)   any period prior to February 1, 1976 during which a person was an
Employee, unless such period would have been disregarded in computing service
under the rules of the Plan regarding Breaks in Service then applicable, but
including any period which was disregarded solely because of the Participant's
age;

      (b)   with respect to a Part-time Employee, each Plan Year beginning on or
after February 1, 1976 during which such Employee completes 1,000 Hours of
Service;

      (c)   with respect to a Regular Employee, each period of his employment
with the Employer, beginning on both (i) the later of February 1, 1976 or his
Employment Commencement Date and (ii) any Reemployment Commencement Date after
February 1, 1976, and ending on his Discontinuance of Active Employment Date
next following;

      (d)   with respect to a Regular Employee, the period between any
Discontinuance of Active Employment Date and the date on which he next performs
an Hour of Service if such date is within one year of such Discontinuance of
Active Employment Date; provided, however, that if a Regular Employee's
employment is terminated during any absence from service which would not
otherwise result in a Discontinuance of Active Employment Date until the first
anniversary of the first day thereof, vesting service shall include the period
from his discontinuance of Active Employment Date to the date on which he next
performs such an Hour of Service only if he next performs such an Hour of
Service within one year of the first day of such absence.

      (e)   with respect to an Employee shown in the attached Appendix I, the
period during which the Employee was an employee of an Affiliate of the Company
prior to October 15, 1984.

      Notwithstanding the foregoing, in no event shall the number of years of
service credited to an Employee under the Plan as in effect on January 1, 1982
be less than the number of such years credited to him under the Plan as in
effect on December 31, 1981.

(3)   For purposes of Subsection (2) above, if a person's status is changed from
Part-time Employee to Regular Employee, he shall receive credit, as of the date
such change in status is effective, for a period of service consisting of (i)
service credited to him under Subsection (2)(a) and (b) for Plan Years prior to
the Plan Year in which the change in status is effective, and (ii) the greater
of (A) the period beginning on the first day of the Plan Year in which the
change in status is effective (or, if later, the first day he was an Employee
during such Plan Year) and ending on the date such change in status is
effective, or (B) the service which would be taken into account for such period
under Subsection (2)(b) on the basis of Hours of Service completed to the date
of change. If clause (ii)(A) of the preceding sentence applies, the Employee
shall receive credit for service subsequent to the change in status commencing
on the first day thereafter on

                                       12
<PAGE>
which he is an Employee; if clause (ii)(B) of such sentence applies, he shall
only receive credit for service subsequent to the change in status commencing on
the day after the last day of the Plan Year in which the change in status is
effective.

(4)   For purposes of Subsection (2) above, if a person's status is changed from
Regular Employee to Part-time Employee, he shall receive credit, as of the date
such change in status is effective, for (i) a number of years of service equal
to the number of 1-year periods of service credited to him under Subsections
(2)(a), (c) and (d) as of the date the change in status is effective, and (ii)
forty-five Hours of Service for each week or partial week of any fractional part
of a year credited to him under such Subsections (2)(a), (c) and (d) as of the
date the change in status is effective, such hours to be credited to him for
purposes of Subsection 2(b) in the Plan Year in which the change is effective.

(5)   Notwithstanding anything to the contrary above, if a former Participant
again becomes a Participant after incurring a Break in Service, service credited
for vesting purposes prior to the date his participation ceased shall be
disregarded if (A) his service for vesting purposes on such date is less than
five years and (B) if the number of his consecutive one-year Breaks in Service
equals or exceeds 5. However, for purposes of this Subsection (5), there shall
be no forfeiture of vesting service prior to the date participation ceased if he
remains a Participant at all times during those four consecutive Plan Years next
following the Plan year in which he again becomes a Participant.

(6)   Solely for the purposes of calculating vesting service under this Section
4 and not for the purpose of calculating Creditable Service under Subsection
1(12) hereof (except to the extent provided in Section 3 hereof), service with
any Affiliate of the Company shall be taken into account as if the term
"Company" in the foregoing rules included such Affiliate and service as a leased
employee within the meaning of Section 414(n) on the Company or an Affiliate
shall also be taken into account, provided that no period of service shall be
taken into account hereunder more than once.

                                       13

<PAGE>

                              SECTION 5 - BENEFITS

(1)   (a)   Subject to Subsection 5(3), any person who ceases to be an active
Participant after he is vested shall be entitled to an annual retirement
allowance, payable in monthly installments commencing at the end of the calendar
month immediately following his Month of Retirement, and continuing to and
including the last monthly payment in the month of his death, equal to 1 percent
of the Participant's Average Final Compensation not in excess of Covered
Compensation multiplied by the number of his years, including fractions thereof,
of Creditable Service, plus 1-1/2 percent of his Average Final Compensation in
excess of Covered Compensation multiplied by the number of his years, including
fractions thereof, of Creditable Service. For this subdivision (a) of Subsection
5(1) only, Compensation earned after January 1, 1985, for any Participant or
former Participant who works less than a full Plan Year, will equal the
Compensation he would have earned if he had worked the full Plan Year.

      (b)   The annual retirement allowance accrued as of December 31, 1984,
shall be equal to the excess of (i) 1-3/4 percent of the Participant's Average
Final Compensation (determined as of December 31, 1984) multiplied by the number
of his years of Creditable Service (determined as of December 31, 1984) up to
ten plus 1-1/2 percent of the Participant's Average Final Compensation
(determined as of December 31, 1984) multiplied by his remaining years of
Creditable Service (determined as of December 31, 1984) over (ii) 1-1/4 percent
of the Participant's Social Security Benefit (determined as if the Participant
had terminated as of December 31, 1984) multiplied by the number of his years of
Creditable Service (determined as of December 31, 1984) completed by him
subsequent to the end of the calendar month in which he attained age 25 (for
purposes of this clause (ii) of this Subsection 5(1)(b), prorating Creditable
Service accrued for the Plan Year in which he attained age 25 if he was then
considered a Part-time Employee), up to a maximum of 50 years.

      (c)   In no event shall the annual retirement allowance computed in
subdivisions (a) and (b) of this Subsection (5)(1) be less than the annual
retirement allowance computed as the excess of (i) 1-3/4 percent of the
Participant's Average Final Compensation (determined as of July 31, 1985)
multiplied by the number of his years of Creditable Service (determined as of
July 31, 1985) up to ten plus 1-1/2 percent of the Participant's Average Final
Compensation (determined as of July 31, 1985), multiplied by his remaining years
of Creditable Service (determined as of July 31, 1985) over (ii) 1-1/4 percent
of the Participant's Social Security Benefit (determined as if the Participant
had terminated as of July 31, 1985) multiplied by the number of his years of
Creditable Service (determined as of July 31, 1985) completed by him subsequent
to the end of the calendar month in which he attained age 25 (for purposes of
this clause (ii) of this Subsection 5(1)(c), prorating Creditable Service
accrued for the Plan Year in which he attained age 25 if he was then considered
a Part-time Employee), up to a maximum of 50 years.

      (d)   In no event shall the annual retirement allowance computed in
subdivisions (a) and (b), and subject to a minimum benefit as computed in
subdivision (c) of this Subsection (5)(1) be less than $100 multiplied by the
number of his years of Creditable Service. In addition, no Participant's Accrued
Benefit shall be less than what such Participant had accrued as of the last day
of the last Plan Year beginning before January 1, 1989.

(2)   (a)   Normal Retirement - A Participant who has reached the later of (i)
his 65th birthday or (ii) the 5th anniversary of his date of hire (normal
retirement age hereunder) may retire on a retirement allowance computed in
accordance with Subsection 5(1); except that any Participant shall, at his
election, be continued in service after age 65. At normal retirement age, all
benefits payable under the Plan shall be nonforfeitable.

                                       14
<PAGE>
      (b)   Early Retirement - Any Participant who has attained age 60 and has
rendered 15 or more years of Creditable Service shall be retired by the
Committee on a retirement allowance on the first day of the calendar month next
following receipt by the Committee of a written application therefor by the
Participant. At the Participant's election, he shall receive a retirement
allowance commencing on his retirement which shall be equal to the retirement
allowance computed in accordance with 5(1) he would otherwise receive upon
attaining age 65, reduced by 1/12th of 5 percent for each month by which the
date of his retirement allowance would otherwise have commenced under Subsection
5(1).

            At the time of retirement pursuant to this subsection (b) on a
retirement allowance commencing on his retirement, the Participant may elect to
convert the retirement allowance otherwise payable to him into an Actuarial
Equivalent of such amount so that, with his Social Security Benefit which, for
this purpose, shall be assumed to commence as of either his sixty-second or
sixty-fifth birthday, as the Participant elects, the Participant will receive,
so far as possible, the same amount each year before and after he commences to
receive such Social Security Benefit.

      (c)   Vested Retirement - Payments to any person who ceases to be a
Participant on or after February 1, 1976, and is entitled to a retirement
allowance pursuant to Subsection 5(1) and to whom subdivisions (a) and (b) of
Subsection 5(2) do not apply shall commence on the last day of the calendar
month next following the later of (i) the occurrence of his 65th birthday or
(ii) receipt by the Committee of a written application therefor; provided that
if the proper amount of such payment cannot for any reason be ascertained by
such date, a payment retroactive to such date shall be made within sixty days of
the earliest date on which it can be ascertained. Such a person may, by written
notice to the Committee, elect to have his retirement allowance commence at any
time after he has attained age 60 and completed 15 years of Creditable Service
and after receipt by the Committee of his application for benefits; provided,
however, that payment of such allowance prior to the attainment of age 65 shall
be in a reduced amount and shall be the Actuarial Equivalent as of the date
payments commence of the retirement allowance computed in accordance with
Subsection 5(1) which he would otherwise receive after attaining age 65.

(3)   Optional Benefits in Lieu of Regular Benefits. (a) Prior to commencement
of the payment of a retirement allowance to a Participant, he shall be given a
written explanation of the benefits and the options under subdivision (b) hereof
pursuant to which he may provide a benefit for his spouse in the event of his
death after his retirement. Unless an optional form of benefit is selected
pursuant to an election meeting the same requirements as prescribed in Section
5(3)(c), or with respect to former Participants in Section 5(4)(f), within the
ninety (90) day period ending on the date benefit payments would commence, a
married Participant shall be deemed to have elected to convert his retirement
allowance into an Actuarial Equivalent in the form of an annuity for his life
with a survivor annuity for the life of his spouse equal to one-half of the
amount of the annuity payable during their joint lives.

      (b)   Any Participant may, by written notice made in accordance with the
same requirements for former Participants as prescribed in Section 5(4)(f) and
filed with the Committee prior to the date of the commencement of his retirement
allowance, elect to convert his retirement allowance into the Actuarial
Equivalent thereof paying a proportionately reduced retirement allowance during
his life, with the provision that after his death an allowance of 50%,
66-2/3%, 75% or 100% of the rate of his reduced allowance, at his designation,
shall continue during the life of, and shall be paid to, the beneficiary
designated by him at the time of electing the option. The election of an
optional benefit may be revoked or changed by the Participant at any time prior
to the benefit commencement date; provided, however, that if the Participant or
the beneficiary designated under the option dies prior to the date the election
of the option becomes effective, the option shall thereby be automatically
revoked; and provided, further, that if the designated beneficiary is other than
the Participant's spouse, the present value of the payments to be made to such

                                       15
<PAGE>
Participant shall be more than 50 percent of the present value of the total
payments to be made to the Participant and his beneficiaries. A Participant's
designation of a beneficiary other than the Participant's spouse shall not be
effective unless (i) the Participant and his spouse have waived the spouse's
allowance defined in Subsection 5(4)(d) and the spouse has waived his or her
right to be the Participant's beneficiary, (ii) the Participant has no spouse,
or (iii) the spouse cannot be located.

      (c)   In the event that a married Participant elects to receive his Plan
benefit in a form other than an annuity for his life with a survivor annuity for
the life of his spouse, such election shall not take effect unless written
consent of the spouse to such election, witnessed by a notary public or a member
of the Committee, is on file with the Committee. Such consent shall be
irrevocable as to any specific waiver or designation of any beneficiary. (The
requirement of spousal consent may be waived by the Committee under certain
limited circumstances in accordance with Section 417(a)(2) of the Code and
related regulations.) A spousal consent filed with the Committee shall be
applicable only with respect to the spouse who has signed such form.

      (d)   A Participant shall be furnished a written explanation of (i) the
terms and conditions of the normal form of benefit; (ii) the right of the
Participant to make, and the effect of, an election to reject the normal form of
benefit, which includes an explanation of the optional forms of benefit and
their relative values; (iii) the right of the Participant's spouse, if any, to
consent or not to consent to such election; and (iv) the right of the
Participant to make, and the effect of, a revocation of such an election.

      Prior to January 1, 1997, the explanation shall be provided not more than
90 days and not less than 30 days before a Participant's benefit commencement
date. After December 31, 1996, the explanation shall be provided not more than
90 days before and no later than 60 days after a Participant's benefit
commencement date.

      Notwithstanding the foregoing, after December 31, 1996, a benefit
commencement date which is not at least 30 days after the written explanation
described above was provided to the Participant will be permitted if (i) the
written explanation explains that the Participant has the right to at least 30
days to consider whether to make an election; (ii) the Participant is permitted
to revoke a benefit election at any time until the benefit commencement date, or
if later, at any time before the end of the 7-day period beginning on the day
after the written explanation is provided to the Participant; and (iii)
distribution of benefits does not begin before the date the 7-day period
described above expires (which date may be later than the benefit commencement
date).

(4)   Survivorship Benefits. (a) Upon (i) the death of a Participant who has
become vested in his Accrued Benefit, as provided in Section 4 of the Plan, (ii)
the death of a Participant who has attained normal retirement age as specified
in Subdivision (a) of Subsection 5(2), (iii) the death of a former Participant
who had attained age 60 and rendered 15 or more years of Creditable Service
prior to the date he ceased to be a Participant (but who was not receiving at
the time of his death any retirement allowance), or (iv) the death of a former
Participant who had not both attained age 60 and rendered 15 or more years of
Creditable Service but had become vested in his Accrued Benefit prior to the
date he ceased to be a Participant (but who was not receiving at the time of his
death any retirement allowance) there shall be payable to the Participant's or
former Participant's spouse, if any, a spouse's allowance as provided for in
this Section 5(4) below.

      (b)   The amount of the spouse's allowance shall be determined by Section
5(4)(d) below for the spouse of a Participant described in Section 5(4)(a)(i) or
(ii) above or for the spouse of a former Participant described in Section
5(4)(a)(iii) above. The amount of the spouse's allowance shall be determined by
Section 5(4)(e) below for the spouse of a former Participant described in
Section 5(4)(a)(iv) above.

                                       16
<PAGE>

      (c)   The spouse's allowance shall commence as the first day of the
calendar month following the month in which the Participant or former
Participant died or would have been age 60, whichever is the later, except that
the Committee may, under rules uniformly applicable to all Participants and
former Participants similarly situated, direct payment commencing on the first
day of any earlier calendar month after the Participant's or former
Participant's death.

      (d)   If the Committee does not direct early commencement of payment, the
spouse's allowance for the spouse of a person described in Section 5(4)(a)(i),
(ii) or (iii) above shall be the greater of (i) an allowance for the life of the
spouse, payable monthly, which is equal to 20 percent of the Participant's or
former Participant's annual rate of compensation at the time of his death or
earlier termination of employment, or (ii) an allowance equal to the allowance
the spouse would have received if the Participant or former Participant were
deemed to have terminated his service on the date of his death (whether or not
an earlier termination of service occurred) and elected to receive, based on his
Average Final Compensation and years of Creditable Service at his actual date of
termination of service with the Company, the maximum retirement allowance
payable to him under Subsections 5(1) and 5(2) that would commence at the later
of normal retirement age or the date of death, reduced for election of the 100%
survivorship option at such deemed termination date, and continuing after his
death in the same monthly amount during the life of his spouse. If the Committee
does direct early commencement of payment, the spouse's allowance shall be a
monthly allowance for the life of the spouse which is the Actuarial Equivalent
of the allowance the spouse would otherwise have received pursuant to the
preceding sentence. Notwithstanding the foregoing, in no event shall the
spouse's allowance be less than the amount the spouse would have received under
the terms of the Plan as in effect on December 31, 1984, had the Participant
died on that date.

      (e)   If the Committee does not direct early commencement of payment, and
unless an optional form of benefit is selected within the election periods
pursuant to a qualified election, the spouse's allowance for the spouse of a
person described in Section 5(4)(iv) above shall equal the allowance the spouse
would have received if the former Participant were deemed to have retired at the
normal retirement age and elected to receive, based on his Average Final
Compensation and years of Creditable Service at the actual date of termination
of service with the Company, a retirement allowance payable to him under
Subsection 5(1) and 5(2), reduced for election of the 50% survivorship option at
the normal retirement age, and continuing after his death in an amount equal to
50% of the amount that would have been payable to the Participant during his
life. If the Committee does direct early commencement of payment, the spouse's
allowance shall be a monthly allowance for the life of the spouse which is the
Actuarial Equivalent of the allowance the spouse would otherwise receive
pursuant to the preceding sentence. Notwithstanding the foregoing, in no event
shall the spouse's allowance be less than the amount the spouse would have
received under the terms of the plan as in effect on December 31, 1984 had the
former Participant died on that date.

                                       17
<PAGE>
(5)   Restoration to Participation. Anything herein contained to the contrary
notwithstanding, if a former Participant who has received or is receiving
benefits under this Section 5 again becomes an Employee, (i) any benefits he is
receiving shall cease upon his reemployment if he is reemployed as a Regular
Employee, or upon his satisfying the participation requirements of Section 2 if
he is reemployed as a Part-time Employee, provided that benefits will not be
suspended in any calendar month unless the Employee has completed at least 40
hours of service with the company in service recognized under Section
203(a)(3)(B) of ERISA or received payment for any such hours of service
performed on each of 8 or more days in such month, (ii) he shall then again
become a Participant, and (iii) the Creditable Service which he had when he last
ceased to be an Employee shall be restored to him. On his subsequent retirement
the benefit payable shall be based on his Compensation and Creditable Service
before and after the period of prior retirement, reduced by an amount which is
the Actuarial Equivalent of the benefits he received prior to his restoration to
participation; provided, however, that such benefit shall not be less than the
benefit he was receiving during his prior retirement. If benefit payments have
been suspended, payments shall resume no later than the first day of the third
calendar month after the calendar month in which the Employee ceases to be
employed in ERISA Section 203(a)(3)(B) service. No payment shall be withheld by
the Plan pursuant to this section unless the Plan notifies the Employee by
personal delivery or first class mail during the first calendar month or payroll
period in which the Plan withholds payments that his benefits are suspended.
Such notifications shall contain a description of the specific reasons why
benefit payments are being suspended, a description of the Plan provision
relating to the suspension of payments, a copy of such provisions, and a
statement to the effect that applicable Department of Labor regulations may be
found in Section 2530.203-3 of the Code of Federal Regulations.

In addition, the notice shall inform the Employee of the Plan's procedures for
affording a review of the suspension of benefits. Requests for such reviews may
be considered in accordance with the claims procedure adopted by the Plan
pursuant to Section 503 of ERISA and applicable regulations.

(6)   Termination of Benefit Payments. Payment of benefits under this Section 5
to a former Participant, his spouse or other beneficiary shall cease with the
monthly payment for the month in which such former Participant, spouse or
beneficiary dies.

(7)   Disabled Participants. Anything herein contained to the contrary
notwithstanding, any Participant while in receipt of payments under the
Company's Short Term Illness Plan, Extended Illness Plan, Short Term Disability
Plan or Long Term Disability Plan (collectively, the "Program"), shall be
treated as a Participant and shall continue to accrue Creditable Service until
he dies, retires, or becomes ineligible for further payments under such Program,
and his Compensation in the last full year of his employment shall be deemed to
be his annual Compensation for purposes of the Plan during such period. In the
event such a Participant dies, retires or becomes ineligible for further
payments under such Program and is not restored to active service, any
retirement allowance payable on his account under the Plan shall be made on the
basis of his age, Average Final Compensation and Creditable Service at the time
he died, retired or became ineligible.

(8)   Maximum Trust Benefits. (a) Any other provision of the Plan to the
contrary notwithstanding, the maximum annual benefit under the Plan (exclusive
of any benefits derived from the Participant's own contributions and exclusive
of any benefits which are not directly related to retirement income benefits)
shall, subject to the following provisions of this Section, not exceed the
lesser of:

            (1)   $90,000, or

            (2)   100% of the Participant's average "compensation" (as defined
                  herein) from the Group (as modified pursuant to Section 415(h)
                  of the Code) during the three

                                       18
<PAGE>
                  consecutive calendar years of participation during which his
                  compensation was highest.

The applicable maximum described in subsection (a)(1) or (2) above shall apply
to a retirement benefit payable in the form of a single life annuity or a
Qualified Joint and Survivor Annuity.

      (b)   A benefit not payable in the form of an annual straight life annuity
within the meaning of Section 415(b)(2)(A) of the Code shall be adjusted as
follows when applying the limits described in subparagraph (a) (1) and (2)
above. The benefit is determined in the form of a straight life annuity
commencing at the annuity starting date that is actuarially equivalent to the
plan benefit. For this purpose, the actuarially equivalent benefit must be the
greater of the equivalent annual benefit calculated using the factors set forth
in Appendix II of the Plan for the particular form of benefit payable and the
equivalent annual benefit calculated using the Applicable 415 Rate and the
Applicable Mortality Table. The amount determined under this subparagraph (b)
cannot exceed the lesser of (1) the amount determined under subparagraph (c) or
(d) below (as applicable), or (2) the amount determined under subparagraph (a)
(2) above.

      (c)   In the event that retirement benefits commence under the Plan at or
after age 62 but prior to an Participant's Social Security Retirement Age, the
$90,000 limitation described in subparagraph (a)(1) above shall be reduced by
5/9 of 1% for each of the first 36 months and by 5/12 of 1% for each of the next
24 months by which such commencement date precedes the Participant's Social
Security Retirement Age. If the commencement date is earlier than age 62, the
limitation is the actuarial equivalent of the age 62 limitation based on either
(1) the factors set forth in Appendix II of the Plan for the particular form of
benefit payable at the applicable age or (2) the Applicable Mortality Table and
5%, whichever would yield the lesser limitation.

      (d)   In the event that retirement benefits commence under the Plan after
the Participant's attainment of his or her Social Security Retirement Age, the
determination as to whether the $90,000 limitation described in subparagraph
(a)(1) above has been satisfied shall be made in accordance with guidance issued
by the Internal Revenue Service, by increasing such limitation actuarially to
the equivalent of $90,000 commencing at such Social Security Retirement Age. The
increased limitation shall be based on either (1) the factors set forth in
Appendix II of the Plan for the particular form of benefit payable at the
applicable age, or (2) the Applicable Mortality Table and 5%, whichever would
yield the lesser limitation.

      (e)   If the Participant has fewer than 10 years of Service, the
applicable maximum described in subparagraph (a)(2) above shall be multiplied by
a fraction of which the numerator is his or her years of Service and the
denominator is 10. If the Participant has fewer than 10 years of participation
in the Plan, the applicable maximum described in subparagraph (a)(1) above shall
be multiplied by a fraction of which the numerator is his or her years of
participation and the denominator is 10. The fraction described hereunder shall
not be less than 1/10.

      (f)   The $90,000 limitation described in subparagraph (a)(1) above shall
be adjusted for increases in the cost of living in accordance with regulations
prescribed by the Internal Revenue Service under Section 415(d) of the Code.

      (g)   For purposes of this Section, the following definitions shall apply:

            (1)   "Applicable 415 Rate" means, in the case of a distribution in
                  a form of benefit not subject to Section 417(e) of the Code,
                  5%, and in the case of a distribution in

                                       19
<PAGE>
                  a form of benefit subject to Section 417(e)(3) of the Code,
                  the Applicable Interest Rate.

            (2)   "Compensation" means compensation as defined in Section
                  415(c)(3) of the Code and Treas. Reg. sec. 1.415-2(d).

            (3)   "Limitation Year" means the calendar year.

            (4)   "Qualified Joint and Survivor Annuity" means, for purposes of
                  this Section only, an annuity for the life of the Participant
                  with a survivor annuity for the life of his or her Spouse
                  which is not less than one-half of, or greater than, the
                  amount of the annuity payable during the joint lives of the
                  Participant and spouse and which is the actuarial equivalent
                  of a single life annuity for the life of the Participant, as
                  determined in accordance with the factors or assumptions set
                  forth in Appendix II of the Plan.

            (5)   "Social Security Retirement Age" means the social security
                  retirement age as defined in Section 415(b)(8) of the Code.

      (h)   Limitation for Multiple Plans - In any case in which an Employee is
a participant in both a tax-qualified defined benefit plan and a tax-qualified
defined contribution plan maintained by the Company, the sum of the defined
benefit plan fraction and the defined contribution plan fraction for any Plan
Year beginning prior to January 1, 2000 shall not exceed 1.0. In the event such
sum would otherwise exceed 1.0, the benefit projected under the defined benefit
plan will be reduced as necessary so that such sum shall equal 1.0.

      (1) The defined benefit plan fraction for any Plan Year is a fraction: (a)
      the numerator of which is the projected annual benefit of the Participant
      under the Plan (determined as of the close of the Plan Year), and (b) the
      denominator of which is the lesser of (i) or (ii), as follows: (i) 1.25
      multiplied by the defined benefit plan dollar limitation under Subsection
      (8)(a)(1) in effect for such year, or (ii) 1.4 multiplied by the amount
      specified under Subsection (8)(a)(2) for such year, (determined as of the
      close of the Plan Year).

      (2) The defined contribution plan fraction for any calendar year is a
      fraction: (a) the numerator of which is the sum of the "annual additions",
      as defined in Section 415(c) of the Code, to the Participant's account as
      of the close of the Plan Year, and (b) the denominator of which is the sum
      of the lesser of (i) or (ii) for such year and each prior Year of Service
      with the Company: (i) 1.25 multiplied by the defined contribution plan
      dollar limitation in effect for such year, or (ii) 1.4 multiplied by
      twenty-five percent (25%) of the Participant's Compensation for such year.

(9)   Prior Plan Provisions. Anything to the contrary herein notwithstanding,
the Accrued Benefit and service credited for vesting purposes of any person who
is a Participant on December 31, 1984 and January 1, 1985 for any period of
service ending on or before December 31, 1984 shall be no less than the benefit
he would have accrued at December 31, 1984 or the vesting service he would have
completed at December 31, 1984 under the terms of the Plan as in effect on such
date, assuming his credited service and Average Final Compensation were computed
on such date.

(10)  Limitation on Timing of Commencement of Benefit Payments. As required
under Sections 401(a)(14) and 401(a)(9) of the Code, the timing of the
commencement of payment of benefits under the Plan shall be subject to the
following rules:

                                       20
<PAGE>
      (a)   General Rule - Unless the Participant otherwise elects, the payment
of benefits under the Plan to a Participant may not be delayed beyond the later
of the sixtieth (60th) day after the close of the Plan Year in which the latest
of the following events occurs:

      (1)   the Participant's 65th birthday,

      (2)   the tenth (10th) anniversary of the year in which the Participant
            commenced participation in the Plan, or

      (3)   the Participant's termination of service with the Company.

      (b)   In general, distribution of benefits shall not be made or commence
later than April 1 of the calendar year following the calendar year in which the
employee attains age 70-1/2. For the purposes of this Section, Participants who
are age 70-1/2 or older as of January 1, 1989, and who have not retired shall be
deemed to have attained age 70-1/2 on such date. Notwithstanding the foregoing,
a Participant who has attained age 70-1/2 either (i) before January 1, 1988, or
(ii) after December 31, 1998, and who is not a 5-percent owner (as defined in
Section 416(i) of the Code) will not commence payments until his retirement.

            With respect to Participants who attain age 70-1/2 on or after
January 1, 2003, (A) in the case of a 5% owner, a Participant's interest in the
Plan must commence distribution no later than the April 1 of the calendar year
following the year in which he attains age 70-1/2, and (B) in all other cases, a
Participant's interest in the Plan must commence distribution no later than the
April 1 of the calendar year following the later of the year in which he (i)
attains age 70-1/2 or (ii) retires.

            In the event a distribution of benefits to a Participant is required
to begin under this Subsection before a Participant's actual retirement, such
Participant's Accrued Benefit shall be determined as of the December 31
immediately preceding the date such distribution is required to begin. As of
each succeeding December 31 prior to the Participant's actual retirement and as
of his actual retirement, the Participant's Accrued Benefit shall be recomputed
as if each such date were his actual retirement date. However, the amount of any
additional Accrued Benefit resulting from such recomputation shall be reduced by
the Actuarial Equivalent of the total benefits received by the Participant under
the Plan prior to such recomputation. In no event, however, shall the
Participant's Accrued Benefit, upon any recomputation hereunder, be less than
the greater of (i) such Participant's Accrued Benefit as of December 31, 1994,
and (ii) such Participant's Accrued Benefit as of the immediately preceding
recomputation.

            In the event a distribution of benefits to a Participant is not
required to begin under this Subsection before the Participant's actual
retirement, such Participant's Accrued Benefit shall be determined as of April 1
of the calendar year following the calendar year in which the Participant
attains age 70-1/2. As of each succeeding December 31 prior to the Participant's
actual retirement and as of his actual retirement, the Participant's Accrued
Benefit shall be recomputed as if each such date were his actual retirement
date. The amount of Accrued Benefit resulting from such recomputation shall be
the greater of (a) the Accrued Benefit computed in accordance with Section 5
(without regard to this Subsection) based on his Average Final Compensation and
Creditable Service as of the recomputation date or (b) the Actuarial Equivalent
of the Accrued Benefit determined at the immediately preceding recomputation
date. In no event, however, shall the Participant's Accrued Benefit, upon any
recomputation hereunder, be less than the greater of (i) such Participant's
Accrued Benefit as of December 31, 1998, and (ii) such Participant's Accrued
Benefit as of the immediately preceding recomputation.

            For this Section, Actuarial Equivalent amounts shall be determined
using (1) the Applicable Interest Rate and (2) the Applicable Mortality Table.

                                       21
<PAGE>
(11)  Compensation Limit. In addition to other applicable limitations which may
be set forth in the Plan and notwithstanding any other contrary provision of the
Plan, for Plan Years beginning on or after January 1, 1994, the annual
compensation of each employee taken into account under the Plan shall not exceed
the annual compensation limit established by the Omnibus Budget Reconciliation
Act of 1993 ("OBRA '93"). The annual compensation limit is $150,000, as adjusted
by the Commissioner of Internal Revenue for increases in the cost of living in
accordance with Section 401(a)(17) of the Code. The cost-of-living adjustment in
effect for a calendar year applies to any period, not exceeding 12 months, over
which compensation is determined (a "Determination Period") beginning in such
calendar year. If a Determination Period consists of fewer than 12 months, the
OBRA '93 annual compensation limit will be multiplied by a fraction, the
numerator of which is the number of months in the Determination Period, and the
denominator of which is 12. For Plan Years beginning on or after January 1,
1994, any reference in this Plan to the limitation under Section 401(a)(17) of
the Code shall mean the OBRA '93 annual compensation limit set forth in the
provision.

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

            Notwithstanding any other provision in the Plan, each Section
401(a)(17) Participant's Accrued Benefit under this Plan will be the greater of:

(a)   such Participant's Accrued Benefit as of the last day of the Plan Year
      beginning before January 1, 1994, frozen in accordance with Section
      1.401(a)(4)-13 of the Code regulations; or

(b)   such Participant's Accrued Benefit determined with respect to the benefit
      formula applicable for the Plan Year beginning on or after January 1,
      1994, as applied to the Participant's total years of Creditable Service
      taken into account under the Plan for purposes of benefit accruals.

            For purposes of this Subsection, a Section 401(a)(17) Participant
means a Participant whose current Accrued Benefit as of a date on or after
January 1, 1994, is based on Compensation for a year beginning prior to the
first day of the first Plan Year beginning on or after January 1, 1994, that
exceeded $150,000.

(12)  Intentionally omitted.

(13)  Required Cash-outs of Certain Accrued Benefits. If a Participant
terminates service and the present value of the vested accrued pension or
survivor benefit provided under Subsection 5(2), 5(3), or 5(4) in respect of
such Participant is equal to or less than $5,000, the person to whom such
benefits would otherwise be paid in monthly installments shall receive a
lump-sum distribution of the present value of the entire vested portion of such
Accrued Benefit, except that, in the case of a qualified joint and survivor
annuity or qualified pre-retirement survivor annuity, as such terms are defined
under Code Sections 417(b) and 417(c), respectively, no such lump-sum
distribution shall be made after the annuity starting date, as defined under
Section 417(f)(2) of the Code. In the event that the present value exceeds
$5,000 but as of any January 1, beginning January 1, 2002, such value declines
to $5,000 or less, such present value may be distributed as of such January 1.

         For the purposes of determining the present value of a vested Accrued
Benefit under this Subsection in respect of (i) current and future Participants
who terminate service with the Company on and after January 1, 1997, and (ii)
former Participants who, as of January 1, 1997, have not previously received

                                       22
<PAGE>
a mandatory lump-sum distribution and are not currently receiving an annual
retirement allowance under the Plan, the interest rate assumption shall be the
annual rate of interest on 30-year U.S. Treasury securities in the third month
prior to the date of distribution; and the mortality rate assumption shall be
based on the GAM 1983 Mortality Table (with mortality rates composed of 50% of
the male rates and 50% of the female rates), as such may be amended from time to
time.

            For this Section, effective as of January 1, 2000, Actuarial
Equivalent amounts shall be determined using (1) the Applicable Interest Rate
and (2) the Applicable Mortality Table.

            Notwithstanding Subsections 1(12) and 4(5) and any other provision
herein to the contrary, if a former Employee who has received a lump-sum
distribution of his entire non-forfeitable benefit under the Plan pursuant to
this Subsection is re-employed by the Company, he shall be treated as a new
Employee and prior service performed by the Employee in respect of such
distribution shall be disregarded for purposes of determining his Accrued
Benefit under the Plan.

(14)  Rollover of Eligible Distributions. Notwithstanding any provision in the
Plan to the contrary that would otherwise limit a distributee's election under
this Section, a distributee may elect, at the time and in the manner prescribed
by the Pension Committee, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover.

      For purposes of this Section:

(a)   "eligible rollover distribution" shall mean any distribution of all or any
      portion of the balance to the credit of the distributee, except that an
      eligible rollover distribution does not include (i) any distribution that
      is one of a series of substantially equal payments (not less frequently
      than annually) made for the life (or life expectancy) of the distributee
      or the joint lives (or joint life expectancies) of the distributee and the
      distributee's designated beneficiary, or for a period of ten years or
      more, (ii) any distribution to the extent such distribution is required
      under Section 401(a)(9) of the Code, and (iii) the portion of any
      distribution that is not includible in gross income (determined without
      regard to the exclusion for net unrealized appreciation with respect to
      employer securities).

(b)   "eligible retirement plan" shall mean an individual retirement account
      described in Section 408(a) of the Code, an individual retirement annuity
      described in Section 408(b) of the Code, an annuity plan described in
      Section 403(a) of the Code, or an qualified trust described in Section
      401(a) of the Code, that accepts the distributee's eligible rollover
      distribution. However, in the case of an eligible rollover distribution to
      a surviving spouse, an eligible retirement plan is an individual
      retirement account or individual retirement annuity.

(c)   "distributee" shall mean a Participant or former Participant. In addition,
      the Participant's or former Participant's surviving spouse and the
      Participant's or former Participant's spouse or former spouse who is the
      alternate payee under a qualified domestic relations order, as defined in
      Section 414(p) of the Code, are distributees with regard to the interest
      of the spouse or former spouse.

(d)   "direct rollover" shall mean a payment by the Plan to the eligible
      retirement plan specified by the distributee.

(15)  Additional Benefit Amounts for Certain Retirees. With respect to each
former Participant in the Plan, or surviving spouse or other designated
beneficiary of such former Participant, who in either case is listed by name or
social security number in the attached Appendix III, such person shall be paid
on a monthly basis, in addition to any monthly benefit such person is otherwise
entitled to receive under the terms of the Plan, the amount set opposite such
person's name in Appendix III, beginning May 1, 1999, and

                                       23
<PAGE>
continuing until such person's death. Thereafter, if such person is a former
Participant and shall have made one of the elections described in and in
accordance with Section 3(b) hereof and such election is then in effect and has
not been revoked, such payments shall continue during the life of, and shall be
paid to, such person's surviving spouse or other beneficiary designated in such
election until his or her death, provided, however, that, if such election
provides for less than 100% of the former Participant's retirement allowance be
paid to his or her surviving spouse or other beneficiary after the former
Participant's death, the supplemental payments provided for in this Section
5(15) to such surviving spouse or other beneficiary shall be reduced in the same
proportion as the former Participant's retirement allowance is adjusted pursuant
to such election.

(16)  Notwithstanding any provision of the Plan to the contrary, contributions,
benefits, and service credit with respect to qualified military service will be
provided in accordance with Section 414(u) of the Code.

                                       24
<PAGE>
                            SECTION 6 - CONTRIBUTIONS

(1)   All contributions under the Plan shall be made by the Company, and no
contributions shall be required of Participants. The contributions shall be
payable at such intervals as may be agreed upon by the Company and the
Committee, but at least annually, and shall consist of such contributions as the
Board of Directors may deem advisable, but at least an amount sufficient to
maintain the Plan on a sound actuarial basis. All contributions shall be
transferred by the Company to the Trustee or Trustees to be used in accordance
with the Plan, except that such contributions are to revert to the Company,
without earnings thereon but reduced by any losses thereon, under the following
conditions:

(a)   In the case of a contribution which is made by the Company by reason of a
      mistake in fact, such contribution shall be returned to the Company within
      one (1) year following its payment to the Plan; and

(b)   If all or a portion of any contribution is determined to be non-deductible
      under Section 404 of the Code, such contribution, to the extent that it is
      determined to be non-deductible, shall be returned to the Company within
      one (1) year following such determination.

(2)   Forfeitures arising from termination of service, death, or for any other
reason shall not be applied to increase the benefits which any person would
otherwise receive under the Plan but shall be used to reduce Plan contributions.

                                       25
<PAGE>
                     SECTION 7 - ADMINISTRATION OF THE PLAN

(1)   The general administration of the Plan shall be the responsibility of a
Pension Committee of no less than three members appointed from time to time by
the Board of Directors to serve at the pleasure of the Board of Directors. The
Committee is designated as the named fiduciary within the meaning of Section
402(a) of the Employee Retirement Income Security Act of 1974.

(2)   Any Employee appointed a member of the Committee shall serve without
compensation with respect to his services on the Committee. Any member of the
Committee may resign by delivering his written resignation to the Board of
Directors.

(3)   The Board of Directors shall appoint one of the members of the Committee
as Chairman. The Secretary, who need not be one of the members of the Committee,
shall be designated by the Committee.

(4)   The administrative expenses of the Plan shall be paid by the Company.

(5)   The Committee shall designate bank depositories and shall delegate
authority in connection therewith. It may delegate any portion of its authority
to designated individuals or committees, and may retain legal counsel, auditors,
actuaries and consultants and obtain clerical, accounting and other services,
all as it deems necessary in carrying out the provisions of the Plan.

(6)   The Committee may act at a meeting or in writing without a meeting.
Meetings shall be held upon such notice, at such places and at such times as the
Committee may from time to time determine. A majority of the member of the
Committee shall constitute a quorum for the transaction of business. All actions
taken by the Committee shall be by the vote of a majority of the members of the
Committee, including actions in writing taken without a meeting.

(7)   The Committee from time to time may establish rules for the administration
of the Plan and the transaction of its business. All rules and decisions of the
Committee shall be uniformly and consistently applied to all Participants who
are similarly situated. When making a determination or calculation, the
Committee shall be entitled to rely upon information furnished to it by a
Participant, the Company, the legal counsel of the Company or the Trustee of the
Plan trust. The interpretation and construction of any provision of the Plan by
a majority of the members of the Committee shall be final and conclusive.

(8)   The Committee shall adopt from time to time interest assumptions, service
tables, mortality tables and such other data, procedures and methods as may be
necessary or desirable for use in all actuarial calculations required in
connection with the Plan. As an aid to the Committee, the actuary designated by
the Committee shall make annual actuarial valuations of the assets and
liabilities, actual and contingent, of the Plan, and shall certify to the
Committee the tables which he would recommend for use by the Committee.

(9)   The Committee shall establish and cause to be maintained a funding
standard account and such other and additional accounts as it deems necessary
for the proper administration of the Plan. It shall keep or cause to be kept in
convenient form such data as may be necessary for actuarial valuations of the
assets and liabilities of the Plan. The Committee shall prepare or cause to be
prepared annually a report showing in reasonable detail the assets and
liabilities of the Plan and giving a brief account of the operation of the Plan
for the past year, and recommending the amount of the Company's contribution to
the Plan for the ensuing year. Such report shall be submitted to the Board of
Directors and shall be filed in the office of the Secretary of the Committee.

                                       26
<PAGE>
(10) In addition to the foregoing, the Committee shall have such duties and
powers as may be necessary to discharge its duties hereunder, including, but not
by way of limitation, the following:

      (a)   to construe and interpret the Plan, decide all questions of
eligibility and determine the amount, manner and time of payment of any benefits
hereunder;

      (b)   to prescribe procedures to be followed by Participants or other
beneficiaries filing applications for benefits;

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

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

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

      (f)   to receive, review and keep on file (as it deems convenient or
proper) reports of the financial condition, and of the receipts and
disbursements, of the Plan trust from the Trustee; and

      (g)   to appoint or employ individuals to assist in the administration of
the Plan and any other agents it deems advisable, including legal and actuarial
counsel.

      The Committee shall have no power to add to, subtract from or modify any
of the terms of the Plan, or to change or add to any benefits provided by the
Plan, or to waive or fail to apply any requirements for eligibility for a
benefit under the Plan.

(11)  The Committee shall issue directions to the Trustee concerning all
benefits which are to be paid from the Plan trust pursuant to the provisions of
the Plan.

(12)  The Committee may require a Participant or other beneficiary to complete
and file with the Committee an application for a benefit and all other forms
approved by the Committee, and to furnish all pertinent information requested by
the Committee. The Committee may rely upon all such information so furnished it,
including the Participant's or other beneficiary's current mailing address.

(13)  The Committee and the individual members thereof shall be indemnified by
the Company and not from the Plan trust against any and all liabilities arising
by reason of any act or failure to act made in good faith pursuant to the
provisions of the Plan, including expenses reasonably incurred in the defense of
any claim relating thereto.

(14)  In the event of an error in administering the Plan, including, without
limitation, as to eligibility, participation or Creditable Service of any
Participant, or as to the amount of payments made or to be made to a Participant
or other beneficiary, the Committee may take any action, including making such
contributions or payments or demanding such refunds or repayments it deems
appropriate, to place the Participant or other beneficiary as nearly as possible
in the position he would have been in had there been no error.

                                       27
<PAGE>
                        SECTION 8 - MANAGEMENT OF ASSETS

(1)   All assets of the Plan shall be held as a special trust for use in
connection with the Plan and providing the benefits and paying the expenses of
the Plan, and no part of the corpus or income shall be used for or diverted to
purposes other than for the exclusive benefit of Participants, retired
Participants and their beneficiaries under the Plan prior to the satisfaction of
all liabilities with respect to such Participants, retired Participants and
their beneficiaries under the Plan. No person shall have any interest in or
right to any part of the earnings of the trust, or any right in, or to, or under
the trust or any part of the assets thereof, except as and to the extent
expressly provided in the Plan and trust agreement.

(2)   The Trustee or Trustees shall be appointed from time to time by the
Committee by appropriate instrument with such powers, duties, rights and
obligations as the Committee shall approve. The Committee may remove any Trustee
at any time, upon reasonable notice, and upon such removal or upon the
resignation of any Trustee the Committee shall designate a successor Trustee or
Trustees.

(3)   The Committee shall determine the manner in which the funds of the Plan
shall be disbursed but subject to the provisions of the trust instrument under
which the assets of the Plan are held.

(4)   The Committee shall have the power to appoint one or more investment
managers, within the meaning of Section 3(38) of the Employee Retirement Income
Security Act of 1974, to manage (including the power to acquire and dispose of)
any assets of the Plan which have been transferred to any Trustee or a specified
portion thereof. In the event that the Committee shall appoint such investment
managers, each such investment manager shall be solely responsible for the
management and control of the assets to which he or it is appointed.

                                       28
<PAGE>
                   SECTION 9 - CERTAIN RIGHTS AND OBLIGATIONS

(1)   It is the intention of the Company to continue the Plan and make its
contributions regularly each year, but the Company, by action of its Board of
Directors, may for any reason terminate or partially terminate the Plan. If all
liabilities to or on account of the Participants, retired Participants and their
beneficiaries have been satisfied or provided for in full and there is an amount
remaining due to erroneous actuarial computations during the previous life of
the Plan (within the meaning of the regulations under the Internal Revenue
Code), then and not otherwise the Company shall be entitled to receive such
remaining amount.

(2)   The establishment of the Plan shall not be construed as conferring any
legal rights upon any Employee or any person for a continuation of employment
nor shall it interfere with the right of the Company to discharge any Employee
and to treat him without regard to the effect which such treatment might have
upon him as a Participant in the Plan.

(3)   Any rulings made or acts taken under the Plan by the Board of Directors or
by the Committee with respect to classification of Employees, contributions, or
benefits shall be uniform in their nature and applicable to all those persons
similarly situated. No ruling shall be made or act taken which shall be
discriminatory under the provisions of the Internal Revenue Code.

(4)   The provisions of this Subsection (4) shall apply to any one of the 25
highest paid Employees of the Company on any "Commencement Date" whose
anticipated retirement allowance provided under the Plan at normal retirement
date exceeds $1,500 per annum. "Commencement Date" shall mean the effective date
of any amendment to the Plan which increases the benefits. In the event that
during the first 10 years following a "Commencement Date" the Plan is
terminated, the amount of the retirement allowance provided under the Plan for
any one of the aforesaid Employees shall not be greater than the amount of
allowance that can be provided by the largest of the following amounts: (a)
$20,000, or (b) 20% of the first $50,000 of the Participant's "Annual
Compensation", multiplied by the number of years and fractions thereof since the
"Commencement Date" in which the full current costs have been met. As used in
this paragraph, "Annual Compensation" means average compensation during the five
calendar years (or the Participant's period of employment if less than five
years) immediately preceding the date of termination of the Plan or immediately
preceding the date of commencement of retirement benefits under the Plan, if
earlier. The foregoing conditions shall not restrict the current payment of full
retirement benefits called for by the Plan for any Participant or beneficiary
who has retired while the Plan is in full effect and its full current costs have
been met.

      In the event that the present value of Plan assets as of the date of
termination of the Plan, calculated utilizing Pension Benefit Guaranty
Corporation assumptions as of the date of termination, equals or exceeds the
present value of the total Accrued Benefits for all Participants (whether or not
nonforfeitable), Subsection (4) shall not be applicable to restrict the Accrued
Benefits payable to the twenty-five (25) highest paid Employees.

      This Subsection (4) is included in this Plan to conform to the
requirements of Treasury Regulations Section 1.401-4(c) and shall cease to be
effective at such time as the provisions of Treasury Regulations Section
1.401-4(c) or any substitute therefor are no longer effective or applicable.

(5)   If any company is now or hereafter becomes an Affiliate of the Company,
the Board of Directors may include the employees of such Affiliate in the
participation in the Plan upon appropriate action by such

                                       29
<PAGE>
company necessary to adopt the Plan. In such event, or if any persons become
Employees of the Company as the result of merger or consolidation or as the
result of acquisition of all or part of the assets or business of another
company, the Board of Directors shall determine to what extent, if any, credit
and benefits shall be granted for previous service with such Affiliate, but
subject to the continued qualification of the trust for the Plan as tax exempt
under the Internal Revenue Code. Any such Affiliate may terminate its
participation in the Plan upon appropriate action by it, in which event the
funds of the Plan held on account of Participants in the employ of such company
not yet retired, after provision in full for all Participants who have retired
from the employ of such company, shall be determined by the Committee on the
basis of actuarial valuation, and shall be applied as provided in Section 9(1),
in the manner there provided if the Plan should be terminated, or shall be
segregated by the Trustee as a separate trust, pursuant to certification to the
Trustee by the Committee continuing the Plan as a separate Plan for the
employees of such company under which the Board of Directors of such company
shall succeed to all the powers and duties of the Board of Directors, including
the appointment of members of the Committee.

(6)   The Plan shall not be merged no consolidated with, nor shall there be a
transfer of any of its assets or liabilities to, any other plan, unless each
Participant, former Participant or beneficiary shall (if the resulting plan were
then terminated) be entitled to receive a benefit immediately after the merger,
consolidation or transfer which is equal to or greater than the benefit he would
have been entitled to receive immediately before the merger, consolidation or
transfer (if the Plan had then been terminated).

(7)   Upon the Plan's termination or partial termination, the rights of all
affected Employees to benefits accrued to the date of such termination or
discontinuance, to the extent then funded, shall be nonforfeitable.

(8)   Where a Participant or beneficiary is receiving benefits under the Plan,
or where a Participant has been separated from service and has nonforfeitable
rights to benefits under the Plan, such benefits will not be decreased because
of an increase in the benefit levels or wage payments under Title II of the
Social Security Act, if such increase takes place after the later of (a) the
last day of the Participant's service with Company or (b) September 2, 1974.

(9)   Unless otherwise specifically provided herein, the terms of the Plan in
effect at the date an Employee's service terminates shall determine his rights
and benefits thereafter.

                                       30
<PAGE>

                          SECTION 10 - CLAIM PROCEDURES

                   ========================================

(1) Every claim for benefits under the Plan shall be in writing directed to the
Committee or its designee.

(2) Each claim filed shall be passed upon by the Committee within a reasonable
time from its receipt. If a claim is denied in whole or in part the claimant
shall be given written notice of the denial in language calculated to be
understood by the claimant, which notice shall: (i) specify the reason or
reasons for the denial; (ii) specify the Plan provisions giving rise to the
denial; and (iii) describe any further information or documentation necessary
for the claim to be honored and explain why such documentation or information is
necessary, and explain the Plan's review procedure.

(3) Upon the written request of any claimant whose claim has been denied in
whole or in part, the Committee shall make a full and fair review of the claim
and furnish the claimant with a written decision concerning it.

                                       31
<PAGE>
                     SECTION 11 - NON-ALIENATION OF BENEFITS

                    ========================================

(1) No benefit under the Plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge. Any
attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber or
charge the same shall be void; nor shall any such benefit be in any manner
liable for or subject to the debts, contracts, liabilities, engagements or torts
of the person entitled to such benefit, unless the assignment of such benefit or
right is pursuant to a "qualified domestic relations order" as defined at
Section 206(d)(3)(B)(i) of ERISA, as amended by the Retirement Equity Act of
1984, and related regulations.

(2) If any person entitled to a benefit under the Plan becomes bankrupt or
attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber or
charge any benefit under the Plan except as specifically provided herein, then
such benefit shall, in the discretion of the Committee, cease and determine. In
that event the Committee shall hold or apply the same for the benefit of such
person, his spouse, children, or other dependents, or any of them in such manner
and in such proportion as the Committee may deem proper.

(3) Effective for judgments, orders and decrees issued, and settlement
agreements entered into, on and after August 5, 1997, notwithstanding anything
herein to the contrary, however, a Participant's benefit in the Plan may be
reduced to satisfy liabilities of the Participant to the Plan due to (i) the
Participant being convicted of committing a crime involving the Plan, (ii) a
civil judgment (or consent order or decree) entered by a court in an action
brought in connection with a violation of the fiduciary provisions of ERISA, or
(iii) a settlement agreement between the Secretary of Labor or the Pension
Benefit Guaranty Corporation and the Participant in connection with a violation
of the fiduciary provisions. Any such reduction shall be consistent with the
provisions of Sections 401(a)(13)(C) and (D) of the Code in all respects,
including the provisions regarding the Participant's spouse.

                                       32
<PAGE>
                           SECTION 12 - TOP HEAVY PLAN

                   ========================================

(1) Precedence of Section. Anything in this Plan to the contrary
notwithstanding, the provisions of this Section 12 shall supercede and take
precedence over any other provisions of the Plan for any Plan Year in which the
Plan is determined to be a Top Heavy Plan as determined under Section 12(3).

(2) Definitions. For purposes of determining whether the Plan is a Top Heavy
Plan, as determined under Section 12(3) below, for any Plan Year commencing on
or after January 1, 1984, the following terms, wherever capitalized, shall have
the meanings set forth below:

      (a) Accrued Benefit - "Accrued Benefit" means the benefit accrued by a
Participant under Section 5 of the Plan.

      (b) Determination Date - "Determination Date" means the date on which the
Plan is tested to determine if it is a Top Heavy Plan, which date shall be the
last day of the Plan Year preceding the Plan Year for which the determination is
being made.

      (c) Key Employee - "Key Employee" means an Employee who, at any time
during the current Plan Year or any of the four (4) preceding Plan Years, is or
was:

      (1) Officer - An officer of the Company (but not more than the lesser of:
      (a) fifty (50) Employees, or (b) the greater of three (3) or ten percent
      of the Employees of the Company shall be considered officers for this
      purposes) whose annual Compensation is at least $45,000 or such greater
      amount as may be recognized for increase in the cost of living in
      accordance with Code Section 416(i)(1)(A)(i), or

      (2) Employee Owner - One (1) of the ten (10) Employees owning the largest
      interests in the Company provided that his annual Compensation is at least
      $30,000 or such greater amount as may be recognized for increases in the
      cost of living in accordance with Code Section 416(i)(1)(A)(ii) (for
      purposes of this Section 12(2)(c)(2), if two (2) Employees have the same
      interest in the Company, the Employee with the greater annual Compensation
      shall be treated as having a larger interest), or

      (3) Five Percent Shareholder - An Employee who is an owner of five percent
      (5%) or more of the Company, or

      (4) Highly Compensated Shareholder - An Employee who is an owner of one
      percent (1%) or more of the Company and who has annual Compensation from
      the Company in excess of $150,000.

      (d) Former Key Employee - "Former Key Employee" means a Participant in the
Plan who, at any time during the four (4) preceding Plan Years, was a Key
Employee but who is not a Key Employee in the current Plan Year or who
terminated his service with the Company in one of the four (4) preceding Plan
Years and was not a Key Employee in the Plan Year in which he terminated.

      (e) Non-Key Employee - "Non-Key Employee" means a Participant in the Plan
who, at any time during the current Plan Year, is neither a Key Employee nor a
Former Key Employee.

                                       33
<PAGE>
      (f) Top Heavy Plan - "Top Heavy Plan" means a Plan which is determined to
be a Top Heavy Plan for a Plan Year, as described in Section 12(3).

(3) Determination of Top Heavy Plan Status. With respect to each Plan Year
commencing on or after January 1, 1984, a calculation shall be made as of the
applicable Determination Date to determine if the Plan is a Top Heavy Plan for
such Plan Year. A Plan shall be considered to be a Top Heavy Plan for a Plan
Year if the aggregate present value of the Accrued Benefit of Key Employees
(excluding Former Key Employees) under the Plan exceeds sixty percent (60%) of
the aggregate present value of the Accrued Benefit of all Key Employees
(excluding Former Key Employees) and all Non-Key Employees under the Plan,
determined as of the Determination Date. In making such determination, the
Accrued Benefit of all individuals who were not employed by the Company during
the five (5) year period ending on the Determination Date shall be excluded. In
determining if the Plan is a Top Heavy Plan, it shall be aggregated with each
other plan of the Company and/or a related organization in the required
aggregation group as defined at Section 416(g)(2)(A)(i) of the Code and may be
aggregated with any other plans of the Company and/or a related organization in
the permissive aggregation group as defined at Section 416(g)(2)(A)(ii) of the
Code.

(4) Intentionally omitted.

(5) Vesting in Top Heavy Plan Year. With respect to any Plan Year for which the
Plan is determined to be a Top Heavy Plan, each Participant's accrued retirement
allowance benefit shall vest in accordance with the following vesting schedule,
in lieu of the vesting provisions described in Section 4:

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

(6) Minimum Benefit Under Top Heavy Plan. Anything in Section 5 to the contrary
notwithstanding, if the Plan is determined to be a Top Heavy Plan for any Plan
Year commencing on or after January 1, 1984, in no event shall the annual
retirement allowance payable to a Participant in the form and manner and at the
time specified in Section 5 be less than: (a) 2.0% of the Participant's average
Compensation for the five (5) consecutive year period in which his Compensation
from the Company was the highest, multiplied by; (b) the number of Plan Years
for which the Plan is determined to be a Top Heavy Plan, but in no event more
than ten (10) such Plan Years.

(7) Maximum Limitation Under Top Heavy Plan. With respect to any Plan Year for
which the Plan is determined to be a Top Heavy Plan, a 1.0 limitation shall be
substituted for the 1.25 limitations at Subsection (8)(c)(1)(b)(i) and
(8)(c)(2)(b)(i) of Section 5.

                                       34
<PAGE>
                             SECTION 13 - AMENDMENTS

                    ========================================

The Board of Directors may, at any time and from time to time, modify or amend
in whole or in part any or all of the provisions of the Plan; provided that no
such modification or amendment shall make it possible for any part of the assets
of the Plan to be used for, or diverted to, purposes other than for the
exclusive benefit of Participants, former Participants and their beneficiaries
under the Plan prior to the satisfaction of all Plan liabilities to them.

                                       35
<PAGE>
                            SECTION 14 - CONSTRUCTION

                    ========================================

The Plan shall be construed, regulated and administered under the laws of the
State of New York and the United States.

                                       36
<PAGE>
                                   APPENDIX I

                    ========================================

The following employees have prior service with a former affiliate of the
Company and will be granted full Vesting and Creditable Service.

Thomas Andruskevich
Cecelia Arbore
Lawrence Burns
Daniel DelVechio
Michael Eiring
Rachelle Epstein
Warren Feld
James Fernandez
Joan Freeman
Michael Kowalski
Deborah Kramm
David Robertson
Mary J. Robertson
John Schaedel
Audrey Scotland
Dale Strohl
Charles Zacharias

                                       37
<PAGE>
                                   APPENDIX II

                    ========================================

The factors to be used in determining the actuarial equivalence between two
alternative forms of pension are as follows:

      Interest rate - 8.00%

      Mortality - The rates of mortality resulting from a 50% /50% average of
the male and female mortality rates of the George B. Buck 1979 Mortality Table.

                                       38
<PAGE>
                                  APPENDIX III

                    ========================================

<TABLE>
<CAPTION>
   NAME OR SOCIAL SECURITY NUMBER            AMOUNT
   ------------------------------            ------
<S>                                         <C>
            ###-##-####                      $50.00
            ###-##-####                      $66.95
            ###-##-####                      $25.00
            ###-##-####                     $508.00
            ###-##-####                     $932.10
            ###-##-####                     $116.69
            ###-##-####                      $50.00
            ###-##-####                      $50.00
            ###-##-####                      $50.00
            ###-##-####                      $50.00
            ###-##-####                      $50.00
            ###-##-####                      $50.00
            ###-##-####                      $50.00
            ###-##-####                     $150.00
            ###-##-####                      $50.00
            ###-##-####                      $87.66
</TABLE>

                                       39

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