Document:

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                                                                    Exhibit 10.4

                                                                  EXECUTION COPY

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, made effective as of January 1, 2000 by and between
Mellon Financial Corporation, a Pennsylvania corporation (the "Company"), and
Ronald P. O'Hanley (the "Executive")

                                WITNESSETH THAT:

         WHEREAS, the Executive is currently serving as the President of Mellon
Institutional Asset Management ("MIAM"), and the Company desires to induce the
Executive to continue to serve in such capacity effective as of January 1, 2000,
and the Executive is willing to continue to serve in such capacity, on the terms
and conditions herein set forth;

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the parties hereto, each intending to be legally bound hereby, agree
as follows:

         1. Employment. The Company agrees to continue to employ the Executive,
and the Executive agrees to continue to be employed by the Company, for the Term
provided in Paragraph 3(a) below and upon the other terms and conditions
hereinafter provided. The Executive hereby represents and warrants that he has
the legal capacity to execute and perform this Agreement, that it is a valid and
binding agreement, enforceable against him according to its terms, and that its
execution and performance by him do not violate the terms of any existing
agreement or understanding to which the Executive is a party.

         2. Position and Responsibilities. During the Term, the Executive agrees
to serve as President of MIAM. In his capacity as President of MIAM, Executive
shall be responsible for the general management of the affairs of MIAM. In
addition, the Executive shall have reporting responsibility for Mellon Global
Investments and Buck Consultants. The Executive shall be given such authority as
is appropriate to carry out the duties described above. The Executive agrees to
serve, if elected, as an officer and/or director of any other subsidiary or
affiliate of the Company.

         3. Term and Duties.

         (a) Term of Agreement. The term of the Executive's employment under
this Agreement shall commence on January 1, 2000 and shall continue thereafter
through December 31, 2002 (the "Term"). Unless either party shall have given
written notice to the other on or before June 30, 2002 that the Executive's
employment with the Company and its subsidiaries and affiliates (collectively,
the "Companies") will terminate at the end of the Term, the parties shall be
obligated during the period from July 1 to November 15, 2002 to negotiate in
good faith an agreement for the continuation of the Executive's employment.

         (b) Duties. During the Term, and except for illness or incapacity and
reasonable vacation periods of no more than 4 weeks in any calendar year (or
such other periods as shall be consistent with the Companies' policies for other
key executives), the Executive shall devote all of his business time, attention,
skill and efforts exclusively to the business and affairs of the

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Companies, shall not be engaged in any other business activity, and shall
perform and discharge well and faithfully the duties which may be assigned to
him from time to time and that are consistent with his position and status;
provided, however, that nothing in this Agreement shall preclude the Executive
from devoting time during reasonable periods required for:

                  (i) Serving, in accordance with the Companies' policies, as a
         director of any company or organization involving no actual or
         potential conflict of interest with the Companies;

                  (ii) delivering lectures and fulfilling speaking engagements;

                  (iii) engaging in charitable and community activities; and

                  (iv) investing his personal assets in businesses in which his
         participation is solely that of an investor in such form or manner as
         will not violate Section 7 below or require any services on the part of
         the Executive in the operation or the affairs of such business,

provided, however, that such activities do not materially affect or interfere
with the performance of the Executive's duties and obligations to the Companies.

         4. Compensation. For all services rendered by the Executive in any
capacity required hereunder during the Term, including, without limitation,
services as an executive, officer, director, or member of any committee of MIAM,
the Company or any subsidiary, affiliate or division of any thereof, the
Executive shall be compensated as set forth below:

                  (a) Base Salary. The Executive shall continue to be paid a
         fixed salary ("Base Salary") of $500,000 per annum as of the effective
         date of this Agreement. The Base Salary amount will be periodically
         reviewed at the times and in the manner generally applicable to members
         of the Company's Senior Management Committee and may be increased, but
         not decreased, during the Term. Base Salary shall be payable in
         accordance with the customary payroll practices of the Companies, but
         in no event less frequently than monthly.

                  (b) Annual Bonus. The Executive shall be eligible to be paid
         an annual bonus of up to three times the amount of his Base Salary in
         effect at the end of the annual bonus period. If the Executive receives
         an incentive rating of "1" for an annual bonus period, management of
         the Company will recommend to the Human Resources Committee of the
         Board of Directors ("HRC") that the Executive receive 100% of his bonus
         potential for such annual bonus period. If the Executive's incentive
         rating for such annual bonus period is less than "1," management of the
         Company will recommend to the HRC that he receive for such annual bonus
         period the percentage of his bonus potential equal to the percentage of
         bonus potential that management recommends for similarly rated other
         members of the Senior Management Committee. It is understood that the
         Executive may receive some portion of his annual bonus in the form of
         an award of restricted stock, with such awards to be made on the same
         terms as apply to other members of the Senior Management Committee.

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                  (c) Equity-Based Compensation. Effective October 1, 1999, the
         Company granted to the Executive 133,587 shares of Third Century
         Performance Accelerated Restricted Stock (the "Third Century PARS")
         which shall derestrict based upon the achievement of annual and
         cumulative performance goals over the Term as set forth in the Third
         Century PARS Agreement, dated October 1, 1999, issued to Executive. It
         is not contemplated that further awards under the Company's Long-Term
         Profit Incentive Plan (1996) (together with any successor Plan, the
         "Long-Term Plan") will be granted to the Executive during the Term.

                  (d) Additional Benefits. Except as modified by this Agreement,
         the Executive shall be entitled to participate in all compensation or
         employee benefit plans or programs, and to receive all benefits,
         perquisites and emoluments, which are generally available to members of
         the Company's Senior Management Committee under any plan or program now
         or hereafter established and maintained by the Company or Mellon Bank,
         N.A. for senior officers, to the extent permissible under the general
         terms and provisions of such plans or programs and in accordance with
         the provisions thereof, including group hospitalization, health, dental
         care, senior executive life or other life insurance, travel or accident
         insurance, disability plans, tax-qualified or non-qualified pension,
         savings, thrift and profit-sharing plans, deferred compensation plans,
         sick-leave plans, and executive contingent compensation plans,
         including, without limitation, capital accumulation programs and stock
         purchase plans. Notwithstanding the foregoing, the Executive
         acknowledges and agrees that the severance payments provided in certain
         circumstances under this Agreement are in lieu of any rights which the
         Executive might otherwise have under any and all other displacement,
         separation or severance plans or programs of the Companies, including
         without limitation the Mellon Financial Corporation Displacement
         Program, and the Executive hereby waives all rights to participate in
         any of such plans or programs in the event of the termination of his
         employment during the Term.

         5. Business Expenses. The Companies shall pay or reimburse the
Executive for all reasonable travel and other expenses incurred by the Executive
in connection with the performance of his duties and obligations under this
Agreement, subject to the Executive's presentation of appropriate vouchers in
accordance with such policies and procedures as the Companies from time to time
establish for senior officers.

         6. Effect of Termination of Employment; Disability.

         (a) Without Cause Termination or Constructive Discharge. In the event
the Executive's employment hereunder terminates due to either a Without Cause
Termination or a Constructive Discharge, earned but unpaid Base Salary as of the
Date of Termination (as defined in Section 14(b)) and any earned but unpaid
bonuses for prior years (collectively, the "Accrued Obligations") shall be
payable in full. In addition, subject to (1) the Executive's continuing
compliance with his obligations under the provisions of Section 7 below and (2)
the Executive's execution and delivery to the Company of a separation agreement,
including an irrevocable general release of claims, in a form acceptable to the
Company, the Executive may continue to earn the following termination benefits:

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                  (i) the Company shall:

                           (A) continue to pay the Executive's Base Salary, as
                  in effect at the Date of Termination, from the Date of
                  Termination until the end of the Term; and

                           (B) pay to the Executive for the year of termination
                  and for each subsequent calendar year, if any, during the
                  remainder of the Term, an amount equal to the Cash Bonus
                  Amount of the highest annual bonus awarded to the Executive
                  for any year in the three years preceding the Date of
                  Termination, such payments to be made at the normal times for
                  payment of bonuses under the annual bonus plan applicable to
                  the Executive (the "Bonus Plan").

         With respect to the payments provided for in this Section 6(a)(i), the
         Executive shall be entitled, to the extent permitted by law as
         determined by the Company in good faith, to participate in any
         compensation deferral plans or arrangements then provided by the
         Company to senior executives.

                  (ii) To the extent permitted by law, the Company shall
         continue to provide the Executive for the period of salary continuation
         set forth in Section 6(a)(i)(A) above with (A) service credit under all
         qualified and nonqualified retirement plans and excess benefit plans in
         which the Executive participated as of his Date of Termination and (B)
         eligibility to receive employer matching contributions on any pre-tax
         contributions made by the Executive to the Retirement Savings Plan at
         the maximum rate which would have been available to the Executive had
         his employment continued.

                  (iii) The Company shall continue to provide Executive (and
         Executive's dependents, if applicable) for the period of salary
         continuation set forth in Section 6(a)(i)(A) above with medical,
         dental, accident, disability and life insurance benefits upon
         substantially the same terms and conditions (including contributions
         required by the Executive for such benefits) as those of the applicable
         employee benefit plans in effect from time to time as applied to
         employees; provided, however, that if the Executive cannot continue to
         participate under the terms of the Company plans providing such
         benefits, the Company shall otherwise provide such benefits on (as
         nearly as reasonably practicable) the same after-tax basis as if
         continued participation had been permitted. Notwithstanding the
         foregoing, in the event the Executive becomes re-employed with another
         employer and becomes eligible to receive welfare benefits from such
         employer, the welfare benefits described herein shall be secondary to
         such benefits during the period of the Executive's eligibility, but
         only to the extent that the Company reimburses the Executive for any
         increased cost and provides any additional benefits necessary to give
         the Executive the benefits provided hereunder.

                  (iv) The Company shall provide the Executive with career
         counseling and outplacement services of the type historically provided
         by the Company to similarly situated executives of comparable rank and
         responsibility.

                  (v) To the extent that the restrictions on the Third Century
         PARS have not lapsed at the Date of Termination, the Third Century PARS
         shall remain outstanding, and the restrictions thereon shall lapse in
         full at the close of business on September 30, 2006.

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         (b) Disability. In the event of the Executive's Disability, the Company
may, by giving a Notice of Disability as provided in Section 14(c), remove the
Executive from active employment and in that event shall provide the Executive
for the remainder of the Term with the same payments and benefits as those
provided in Section 6(a), except that:

                  (i) in lieu of the bonus payments provided in Section
         6(a)(i)(B), the Executive shall receive, at the same time as bonus
         payments for the year of Disability would otherwise be made under the
         Bonus Plan, a prorated bonus for the year of Disability only equal to
         the Cash Bonus Amount of the bonus award the Executive would have
         received had he been actively employed throughout the bonus year,
         prorated on a daily basis as of the Date of Disability;

                  (ii) except for Accrued Obligations, Base Salary payments
         shall be offset by any amounts otherwise payable to the Executive under
         the Company's disability program generally available to other
         employees; and

                  (iii) to the extent that the restrictions on the Third Century
         PARS have not lapsed at the Date of Disability, the restrictions
         thereon shall lapse in full as of the Date of Disability.

         (c) Death. In the event the Executive's employment hereunder terminates
due to death, Accrued Obligations as of the date of death shall be payable in
full, and the Company shall pay to the Executive's estate, at the same time as
bonus payments for the year of death would otherwise be made under the Bonus
Plan, a prorated bonus for the year of death only equal to the Cash Bonus Amount
of the bonus award the Executive would have received had he been employed
throughout the bonus year, prorated on a daily basis as of the date of death.
The Third Century PARS shall become immediately and fully vested.

         (d) Other Termination of Employment. In the event the Executive's
employment hereunder terminates due to a Termination for Cause or the Executive
terminates employment for reasons other than due to a Without Cause Termination,
a Constructive Discharge, Disability or death, Accrued Obligations as of the
Date of Termination shall be payable in full, and vested stock options may be
exercised according to the terms of the Long-Term Plan. No other payments shall
be made, or benefits provided, by the Company except for benefits which have
already become vested under the terms of employee benefit programs maintained by
the Company or its affiliates for its employees generally as provided in Section
10.

         (e) Definitions. For purposes of this Agreement, the following terms
have the following meanings:

                  (i) "Termination for Cause" means, to the maximum extent
         permitted by applicable law, a termination of the Executive's
         employment by the Company because the Executive has (A) been convicted
         of or has entered a plea of nolo contendere with respect to a felony,
         or any misdemeanor evidencing moral turpitude, deceit, dishonesty or
         fraud, including without limitation a criminal offense covered by
         Section 19 of the Federal Deposit Insurance Act, 12 U.S.C. Section
         1829, or any successor provision, (B) engaged in conduct which
         constitutes a willful and continued failure to perform his duties
         hereunder

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         (other than by reason of disability), after notice to the Executive and
         reasonable opportunity to correct the same, (C) been dismissed for
         violating a material provision of the Company's Code of Conduct (as the
         same may be modified from time to time), (D) willfully engaged in any
         misconduct which has the effect of being injurious to the Company or
         any of its affiliates or (E) violated the representations made in
         Section 1 above, or any of the provisions of Sections 7(c), 7(d) or
         7(e) below; provided, however, that the Company has given the Executive
         advance notice of such Termination for Cause including the reasons
         therefor, together with a reasonable opportunity for the Executive to
         dispute the factual basis of such notice.

                  (ii) "Constructive Discharge" means a termination of the
         Executive's employment by the Executive due to a failure of the Company
         or any successor to fulfill its obligations under this Agreement in any
         material respect, including (A) any material change by the Companies
         without the consent of the Executive in the functions, duties or
         responsibilities of the Executive's position with the Companies which
         would reduce the ranking or level, dignity, responsibility, importance
         or scope of such position, (B) any imposition on the Executive of a
         requirement to be permanently based at a location more than fifty miles
         from the principal office of MIAM as of the date of this Agreement
         without the consent of the Executive, or (C) any reduction without the
         consent of the Executive in the Executive's Base Salary below the
         amount then in effect under Section 4(a) hereof; provided that no
         change in position, responsibilities or compensation, attempted
         relocation or other event shall be deemed to constitute a Constructive
         Discharge unless the Executive provides written notice thereof to the
         Company at least 30 days in advance of any Notice of Termination with
         respect thereto and gives the Company the opportunity to remedy or cure
         the asserted basis for such Constructive Discharge within such 30-day
         period.

                  (iii) "Without Cause Termination" means a termination of the
         Executive's employment by the Company other than due to Disability or
         expiration of the Term and other than a Termination for Cause.

                  (iv) "Disability" for purposes of this Agreement means the
         Executive shall be disabled so as to be unable to perform for 180 days
         in any 365-day period, with or without reasonable accommodation, the
         essential functions of his then existing position or positions under
         this Agreement, as determined by the person or entity responsible for
         making determinations under the Company's long-term disability plan or,
         if any such person or entity is not able for any reason to make this
         determination, by another independent person or entity experienced in
         this field selected by the Company and acceptable to the Executive or
         his representative.

                  (v) The "Cash Bonus Amount" of a Bonus Plan award for any
         period means the sum of (A) the amount of such award paid or payable in
         cash (whether or not deferred) plus (B) with respect to any portion of
         the award paid or payable in restricted stock, phantom stock or other
         interests in Company securities, the amount of cash which would
         otherwise have been paid, excluding any premium in value given to
         compensate for risk of forfeiture or otherwise.

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                  (vi) The "Date of Termination" and "Date of Disability" shall
         have the meanings ascribed to them in Section 14. To the fullest extent
         permitted by applicable law; to the extent this Agreement requires the
         payment of Base Salary and/or the provision of coverages and benefits
         subsequent to the Date of Termination or Date of Disability, the
         Executive's Date of Termination or Date of Disability, as applicable,
         shall not be treated as a termination of employment (a "Benefit Plan
         Termination Date") from the Companies for purposes of determining the
         Executive's rights, responsibilities and tax treatment under any and
         all employee pension, welfare and fringe benefit plans maintained by
         the Companies. Rather, the Benefit Plan Termination Date shall be the
         day following the last day for which any Base Salary and/or coverages
         and benefits are required to be provided by this Agreement."

         (f) Change in Control. Notwithstanding anything else contained herein,
if any termination of the Executive's employment hereunder constitutes a
"Qualifying Termination" during the "Termination Period," each as defined in the
Agreement between the Executive and the Company dated as of March 2, 1999 (the
"Prior Agreement"), then the provisions of the Prior Agreement shall apply to
such termination in lieu of the provisions of this Section 6. Section 5 of the
Prior Agreement shall apply to any Payment (as therein defined) under this
Agreement to the extent provided therein. The definition of "Change in Control"
in Section 1(c) of the Prior Agreement is hereby amended by changing the phrase
"at least a majority of the members of the board of directors of the Parent
Corporation" in clause (C) of Paragraph 1(c)(iii) to read "at least half of the
members of the board of directors of the Parent Corporation."

         7. Other Duties of Executive During and After Term.

         (a) Confidential Information. Executive acknowledges that, by reason of
his duties, he will be given or may have access to and become informed of
confidential or proprietary information which the Companies possess or to which
the Companies have rights, which relates to the Companies and which is not
generally known to the public or in the trade and is a competitive asset of the
Companies, or information which constitutes a "trade secret" of the Companies,
as that term is defined by the Uniform Trade Secrets Act, as amended and
approved by the National Conference of Commissioners on Uniform State Laws in
1985 ("Confidential Information"), including without limitation, (i) the
Companies' planning data and marketing strategies; (ii) non-public terms of any
new products and investment strategies of the Companies; (iii) non-public
information relating to the Companies' personnel matters; (iv) the Companies'
financial results and information about their business condition; (v) non-public
terms of any investment, management or advisory agreement or other material
contract of the Companies; (vi) the Companies' proprietary software and related
documents; (vii) the Companies' client and prospecting lists and contact persons
at such clients and prospects; and (viii) non-public material information
concerning the Companies' customers or their operations, condition (financial or
otherwise) or plans. "Confidential Information" shall not include any
information (A) generally known to the public except as a result of disclosure
by Executive, (B) disclosed by the Company without an obligation of
confidentiality on the part of the recipient or (C) required to be disclosed by
law, rule, regulation or order without an obligation of confidentiality on the
part of the recipient, provided that prior to making any disclosure under this
clause (C), Executive shall provide the Company with notice and the opportunity
to contest such disclosure.

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         Executive acknowledges that his employment creates a relationship of
confidence and trust between himself and the Companies with respect to
Confidential Information and that Confidential Information, whether compiled or
created by him or the Companies, is and shall remain the sole property of the
Companies. Executive will faithfully keep Confidential Information in strict
confidence and shall not, either directly or indirectly, at any time, while an
employee of the Companies or thereafter, make known, divulge, reveal, furnish,
make available, or use (except for use in the regular course of his duties for
the Companies) any Confidential Information without the written consent of the
Company. Executive understands and acknowledges that his obligations under this
Section 7 will survive termination of his employment and will continue
indefinitely unless and until any such Confidential Information has become, in
the Company's reasonable judgment, stale, or, through no fault of Executive's,
generally known to the public or he is required by law (after providing the
Company with notice and an opportunity to contest such requirement) to make
disclosure.

         The Executive's obligations under this Section 7(a) are in addition to,
and not in limitation or preemption of, all other obligations of confidentiality
which the Executive may have to the Companies under general or specific legal or
equitable principles.

         (b) Return Of All Property And Documents. Upon the termination of his
employment for any reason or no reason, the Executive immediately shall return
to the Companies all of their property, including without limitation, all
documents (including copies) and information, however maintained (including
computer files, tapes, and recordings), concerning the Companies or acquired by
the Executive in the course and scope of his employment (excluding only those
documents relating solely to the Executive's own salary and benefits).

         (c) Non-Interference. Until the later of the end of the Term or two (2)
years after the termination of the Executive's employment, whether during or
after the Term and notwithstanding the cause of termination, the Executive shall
not (i) hire or employ, directly or indirectly through any enterprise with which
he is associated, any employee of the Companies having the rank of Vice
President of any of the Companies or above or (ii) recruit, solicit or induce
(or in any way assist another person or enterprise in recruiting, soliciting or
inducing) any such employee or any consultant, vendor or supplier of the
Companies to terminate or reduce such person's employment, consulting or other
relationship with the Companies. Without limiting clause (i) of the preceding
sentence, clause (ii) of the preceding sentence shall not be violated by the
making of general advertisements not specifically directed to employees of the
Companies.

         (d) Non-Solicitation. Until the later of the end of the Term or twelve
(12) months after the termination of the Executive's employment, whether during
or after the Term and notwithstanding the cause of termination, the Executive
shall not, directly or indirectly, in any capacity (i) solicit the business or
patronage of any Customer for any other person or entity, (ii) divert, entice,
or otherwise take away from the Companies the business or patronage of any
Customer, or attempt to do so, or (iii) solicit or induce any Customer to
terminate or reduce its relationship with the Companies.

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         (e) Unfair Competition.

                  (i) Until six (6) months after the termination of the
         Executive's employment, whether during or after the Term and
         notwithstanding the cause of termination, the Executive shall not,
         directly or indirectly, in any capacity (A) provide or assist with the
         provision of Relevant Financial Services, except as an employee of the
         Companies or (B) be employed by or affiliated or associated in a
         business capacity with any person or entity in the business of
         providing Relevant Financial Services other than the Companies.

                  (ii) Until the later of the end of the Term or twelve (12)
         months after the termination of the Executive's employment, whether
         during or after the Term and notwithstanding the cause of termination,
         the Executive shall not, directly or indirectly, in any capacity (A)
         provide or assist with the provision of Relevant Financial Services to
         a Customer of the Companies, except as an employee of the Companies or
         (B) be employed by or affiliated or associated in a business capacity
         with any person or entity other than the Companies which directly or
         indirectly provides or offers to provide Relevant Financial Services to
         any Customer of the Companies; provided that this Section 7(e)(ii) does
         not prohibit the Executive from being employed by or affiliated or
         associated with any person or entity after the termination of
         employment with the Companies and after the expiration of the period
         covered by Section 7(e)(i) so long as he does not have any direct or
         indirect involvement on behalf of any person or entity with respect to
         soliciting, managing, administering, supporting or retaining the
         Relevant Financial Services business provided or proposed to be
         provided to a Customer of the Companies.

                  (iii) Notwithstanding the foregoing, but without affecting the
         obligations of the Executive under any of the other provisions of this
         Section 7, the obligations of the Executive under this Section 7(e)
         shall not apply after December 31, 2002 unless, during any period of
         restriction under this Section 7(e) which follows that date, the
         Company pays to the Executive at the times otherwise payable under
         Section 4(a) hereof an amount equal to the sum of (A) Base Salary at
         the rate in effect on the date of termination of the Executive's
         employment and (B) (1) the average of the annual cash bonuses paid to
         the Executive for the two most recent years ending on or prior to the
         date of termination divided by (2) the number of pay periods in the
         calendar year. In the event the amount payable under clause (B) of the
         preceding sentence is not determinable at the time such payment would
         otherwise be made, such amount shall be paid to the Executive as soon
         as practicable after such amount has been determined.

         (f) Certain Definitions. For purposes of this Agreement:

                  (i) "Relevant Financial Services" shall mean (A) institutional
         asset and investment management and related advisory services, (B)
         international asset and investment management and related advisory
         services, (C) benefits consulting services and (D) any other services
         or products provided by the Companies from time to time which, at any
         time during the twelve (12) months preceding the termination of the
         Executive's employment, are within the scope of the Executive's
         responsibilities.

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                  (ii) "Customer" means any person or entity to the extent that
         such person or entity (A) is receiving Relevant Financial Services from
         the Companies on the date of termination of the Executive's employment
         with the Companies, (B) received such services for compensation at any
         time during the one-year period immediately preceding the date of
         termination of the Executive's employment with the Companies or (C) at
         any time during the one-year period immediately preceding the date of
         termination of the Executive's employment with the Companies was
         solicited by the Executive, directly or indirectly, in whole or in
         part, on behalf of the Companies to provide Relevant Financial
         Services.

         (g) Litigation and Regulatory Cooperation. During and after the
Executive's employment, notwithstanding the cause of termination, the Executive
shall cooperate fully with the Companies in the defense or prosecution of any
claims or actions now in existence or which may be brought in the future against
or on behalf of the Companies which relate to events or occurrences that
transpired while the Executive was employed by the Companies. The Executive's
full cooperation in connection with such claims or actions shall include, but
not be limited to, being available to meet with counsel to prepare for discovery
or trial and to act as a witness on behalf of the Companies at mutually
convenient times. During and after the Executive's employment, the Executive
also shall cooperate fully with the Companies in connection with any
investigation or review of any federal, state or local regulatory authority as
any such investigation or review relates to events or occurrences that
transpired while the Executive was employed by the Companies. The Companies
shall reimburse the Executive for any reasonable out-of-pocket expenses incurred
in connection with the Executive's performance of obligations pursuant to this
Section 7(g).

         (h) Performance Record. The Executive understands, acknowledges and
agrees that the investment performance record (including without limitation
performance ratings or rankings provided by any rating or ranking service) of
any fund(s) or accounts of Customers with which he is associated while employed
at the Companies is attributable to a team of professionals of the Companies and
not solely the efforts of any single individual and that, therefore, the
performance records of the fund(s) or accounts managed by the Companies are and
shall be the exclusive property of the Companies.

         (i) Nondisparagement. During and after the Executive's employment,
notwithstanding the cause of termination, Executive and the Company each agrees
not to, and the Company shall cause its officers and directors not to, take any
action or make any statement, written or oral, to any current or former employee
of the Companies or to any other person which disparages Executive or the
Companies, their management, directors or shareholders, as applicable, or their
practices or which disrupts or impairs their normal operations, including
actions or statements (i) that would harm the reputation of Executive or the
Companies, as applicable, with their clients, suppliers, employees or the
public, or (ii) that would interfere with existing or prospective contractual or
employment relationships with clients, suppliers or individuals.

         (j) Remedies. The Company's obligation to make payments or provide any
benefits under this Agreement (except to the extent previously vested) shall
cease upon any violation of the provisions of this Section 7. In addition, in
the event of a violation by the Executive of the provisions of this Section 7,
the Company shall be entitled, if it shall so elect, to institute legal

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proceedings to obtain damages for any such breach, or to enforce the specific
performance by the Executive of this Section 7 and to enjoin the Executive from
any further violation, and may exercise such remedies cumulatively or in
conjunction with such other remedies as may be available to the Companies at law
or in equity. The Executive agrees that it would be difficult to measure any
damages to the Companies which might result from any breach by the Executive of
the promises set forth in this Section 7, and that in any event money damages
would be an inadequate remedy for any such breach. Accordingly, the Executive
agrees that if the Executive breaches any provision of this Agreement, the
Companies shall be entitled, in addition to all other remedies that they may
have, to an injunction or other appropriate equitable relief to restrain any
such breach, without showing or proving any actual damage to the Companies. In
the event the Company withholds any payment based upon a claimed violation of
this Section 7 and it is finally determined by a court that Executive is
entitled to such payment, the Company shall pay Executive interest on such
payment from the date originally due until the date paid at the rate applicable
to judgments under 28 U.S.C. Section 1961.

         (k) Survival; Authorization to Modify Restrictions. The Executive
acknowledges and agrees that the covenants of the Executive and the restrictions
contained in this Section 7 are intended to protect the Companies' interest in
its Confidential Information and its commercial relationships and goodwill with
its customers, prospective customers, vendors, suppliers, consultants and
employees. The Executive further acknowledges and agrees that the covenants of
the Executive and the restrictions contained in this Section 7 shall survive the
termination of this Agreement and any termination of the Executive's employment,
regardless of reason, for the periods stated herein and shall continue in full
force and effect regardless of any change in the Executive's title, duties,
responsibility, compensation or benefits while he remains employed by the
Companies; provided, however, that the covenants contained in Sections 7(d) and
7(e) shall not survive any termination of employment (i) for which a Notice of
Termination is given during the Termination Period following a Change in
Control, each as defined in the Prior Agreement or (ii) which is a termination
of employment described in the second sentence of Section 1(j) of the Prior
Agreement.

         The Executive represents that he has read and understands the
provisions of this Agreement, including this Section 7, that he has had the
opportunity to consult with counsel concerning such provisions, and that he
understands the effect of such provisions on his ability to earn his livelihood
upon any termination of his employment with the Company. The Executive
acknowledges that it would cause the Companies serious and irreparable injury
and cost if Executive were to use his ability and knowledge in competition with
the Companies or to otherwise breach the obligations contained in this Section 7
and, in view of the nature and level of his responsibilities and the level of
his compensation, agrees that the provisions of this Section 7 are reasonable.
Accordingly, it is the intention of the parties that the provisions of this
Section 7 shall be enforceable to the fullest extent permissible under
applicable law, but that if any portion or provision of this Agreement shall to
any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then (A) the court may amend such portion or provision so as to
comply with law in a manner consistent with the intention of this Agreement, (B)
the remainder of this Agreement, or the application of such illegal or
unenforceable portion or provision in circumstances other than those as to which
it is so declared illegal or unenforceable, shall not be affected thereby and
(C) each portion or provision of this Agreement shall be valid and enforceable
to the fullest extent permitted by law.

                                      -11-
<PAGE>
         (l) Jurisdiction and Venue. The parties agree that any action by the
Company to enforce the covenants and restrictions contained in this Section 7 or
any action by either party to obtain a judgment on an arbitrator's award
referred to in Section 9 may be instituted and maintained in the state or
federal courts in Pittsburgh, Pennsylvania or Boston, Massachusetts or in any
other court having jurisdiction. Subject to the first sentence of Section 9
hereof, the parties hereby irrevocably submit to the jurisdiction of the state
and federal courts in Pittsburgh, Pennsylvania and Boston, Massachusetts in any
suit, action or proceeding arising under or relating to this Agreement and
hereby irrevocably waive any objections to the venue of any of such courts in
any such suit, action or proceeding, including any claim that any other court
constitutes a more appropriate or convenient forum.

         8. Proprietary Developments. Any and all inventions, products,
discoveries, improvements, processes, methods, computer software programs,
models, techniques, formulae, trade secrets, service marks, trademarks and
works of authorship (collectively, hereinafter referred to as "Intellectual
Property"), made, developed or created by the Executive (alone or in conjunction
with others, during regular hours of work or otherwise) during the Executive's
employment by the Companies, which may be directly or indirectly useful in, or
relate to, business conducted or to be conducted by the Companies shall be the
Companies' exclusive property and will be promptly disclosed by the Executive to
the Companies. The term "Intellectual Property" shall not be deemed to include
inventions, products, discoveries, improvements, processes, methods, computer
software programs, models, techniques, formulae, trade secrets, service marks,
trademarks or works of authorship which were in the possession of the Executive
prior to the Executive's employment by the Companies and which were not obtained
from or through the Companies. To the fullest extent permitted by law, such
Intellectual Property shall be deemed works made for hire. Executive hereby
transfers and assigns to the Company or its designated affiliate any proprietary
rights which Executive may have or acquire in any such Intellectual Property,
and Executive waives any license or other special right which Executive may have
or accrue therein. Executive agrees to execute any documents and to take any
actions that may be required, as reasonably determined by the Company's counsel,
to effect and confirm such transfer, assignment and waiver.

         The Executive will, upon the Company's request, execute any documents
necessary or advisable in the opinion of the Company's counsel to direct the
issuance of patents, trademarks or copyrights to the Company or its designated
affiliate with respect to such Intellectual Property as are to be the Companies'
exclusive property under this Section 8 or to vest in the Company or such
affiliate title to such Intellectual Property, the expense of securing any
patent, trademark or copyright, however, to be borne by the Company or such
affiliate. The Executive will keep confidential and will hold for sole benefit
of the Companies any Intellectual Property which is to be their exclusive
property under this Section 8 for which no patent, trademark or copyright is
issued.

         The Executive agrees that non-public terms of Intellectual Property
shall constitute Confidential Information within the meaning of Section 7(a).

         The foregoing provisions of this Section 8 shall be binding upon the
Executive's heirs and legal representatives. The agreements of the Executive in
this Section shall be enforceable by injunction and shall survive the
termination of this Agreement.

                                      -12-
<PAGE>

         9. Resolution of Disputes. Except as otherwise provided in Section
7(j), any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration in Boston, Massachusetts,
by three arbitrators in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrators' award in
any court having jurisdiction.

         10. Full Settlement; No Mitigation: Non-Exclusivity of Benefits. Except
as provided in Section 6(f), the Company's obligation to make any payment
provided for in this Agreement and otherwise to perform its obligations
hereunder shall be in lieu and in full settlement of all other severance
payments to the Executive under any other severance plan, arrangement or
agreement of the Company and its affiliates, including but not limited to the
Mellon Financial Corporation Displacement Program, and in full settlement of any
and all claims or rights of the Executive for severance, separation and/or
salary continuation payments resulting from the termination of his employment.
In no event shall the Executive be obligated to seek other employment or to take
other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement, and except as specifically provided
herein, such amounts shall not be reduced whether or not the Executive obtains
other employment. Except as provided above in this Section 10, nothing in this
Agreement shall prevent or limit the Executive's continuing or future
participation in any plan, program, policy or practice provided by the Company
or any of its affiliates for which the Executive may qualify, nor, except as
otherwise specifically provided in this Agreement, shall anything herein limit
or otherwise affect such rights as the Executive may have under any contract or
agreement with the Company or any of its affiliates, including without
limitation any stock option or restricted stock agreement. Amounts or benefits
which are vested benefits or which the Executive is otherwise entitled to
receive under any such plan, program, policy, practice, contract or agreement
prior to, at or subsequent to any Date of Termination or Date of Disability
shall be paid or provided in accordance with the terms of such plan, program,
policy, practice, contract or agreement except as explicitly modified by this
Agreement.

         11. Employment and Payments by Affiliates. Except as herein otherwise
specifically provided, references in this Agreement to employment by the Company
shall include employment by affiliates of the Company, and the obligation of the
Company to make any payment or provide any benefit to the Executive hereunder
shall be deemed satisfied to the extent that such payment is made or such
benefit is provided by any affiliate of the Company.

         12. Withholding Taxes. The Companies may directly or indirectly
withhold from any payments made under this Agreement all Federal, state, city or
other taxes as shall be required pursuant to any law or governmental regulation
or ruling.

         13. Consolidation, Merger, or Sale of Assets. Nothing in this Agreement
shall preclude the Company from consolidating or merging into or with, or
transferring all or substantially all of its assets to, another corporation or
entity which assumes this Agreement and all obligations and undertakings of the
Company hereunder. Upon such a consolidation, merger or transfer of assets and
assumption, the term "Company" as used herein shall mean such other corporation
or entity, and this Agreement shall continue in full force and effect.

                                      -13-
<PAGE>

         14. Notices.

         (a) General. All notices, requests, demands and other communications
required or permitted hereunder shall be given in writing and shall be deemed to
have been duly given when delivered or 5 days after being deposited in the
United States mail, certified and return receipt requested, postage prepaid,
addressed as follows:

                  (i)      To the Company:

                           Manager-Human Resources Department
                           Mellon Bank, N.A.
                           One Mellon Bank Center
                           Pittsburgh, Pennsylvania  15258

                  (ii)     To the Executive:

                           Ronald P. O'Hanley
                           208 Argilla Road
                           Ipswitch, MA  01938

                           with a copy to:

                           Beth J. Felder, Esquire
                           Epstein Becker & Green, P.C.
                           75 State Street
                           Boston, MA  02109

or to such other address as the addressee party shall have previously specified
in writing to the other.

         (b) Notice of Termination. Except in the case of death of the
Executive, any termination of the Executive's employment hereunder, whether
by the Executive or the Company, shall be effected only by a written notice
given to the other party in accordance with this Section 14 (a "Notice of
Termination"). Any Notice of Termination shall (i) indicate the specific
termination provision in Section 6 relied upon, (ii) in the case of a
termination for Cause or a Constructive Discharge, set forth in reasonable
detail the facts and circumstances claimed to provide a basis for such
termination and (iii) specify the effective date of such termination of
employment (the "Date of Termination"), which shall not be less than 15 days nor
more than 60 days after such notice is given. The failure of the Executive or
the Company to set forth in any Notice of Termination any fact or circumstance
which contributes to a showing of Cause or Constructive Discharge shall not
waive any right of the Executive or the Company hereunder or preclude the
Executive or the Company from asserting such fact or circumstance in enforcing
the Executive's or the Company's rights hereunder.

         (c) Notice of Disability. Any finding of Disability by the Company
shall be effected only by a written notice given to the Executive in accordance
with this Section 14 (a "Notice of Disability"). Any Notice of Disability shall
(i) set forth in reasonable detail the facts and circumstances claimed to
provide a basis for such finding of Disability and (ii) specify an

                                      -14-
<PAGE>

effective date (the "Date of Disability"), which shall not be less than 10 days
after such notice is given. The failure of the Company to set forth in any
Notice of Disability any fact or circumstance which contributes to a showing of
Disability shall not waive any right of the Company hereunder or preclude the
Company from asserting such fact or circumstance in enforcing the Company's
rights hereunder.

         15. No Attachment. Except as required by law, no right to receive
payments under this Agreement shall be subject to anticipation, commutation,
alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation or
to execution, attachment, levy or similar process or assignment by operation of
law, and any attempt, voluntary or involuntary, to effect any such action shall
be null, void and of no effect; provided, however, that nothing in this Section
15 shall preclude the assumption of such rights by executors, administrators, or
other legal representatives of the Executive or his estate or their assigning
any rights hereunder to the person or persons entitled thereto.

         16. Binding Agreement. This Agreement shall be binding upon, and shall
inure to the benefit of, the Executive and the Company and, as permitted by this
Agreement, their respective successors, assigns, heirs, beneficiaries and
representatives.

         17. Governing Law. The validity, interpretation, performance and
enforcement of this Agreement shall be governed exclusively by the laws of the
Commonwealth of Pennsylvania, without regard to principles of conflicts of laws
thereof.

         18. Counterparts; Headings; Interpretation. This Agreement may be
executed in counterparts, each of which, when executed, shall be deemed to be an
original and all of which together shall be deemed to be one and the same
instrument. The underlined Section headings contained in this Agreement are for
convenience of reference only and shall not affect the interpretation or
construction of any provision hereof. This Agreement is the result of
negotiation and compromise between the parties hereto, each represented by
counsel. The fact that either party, in the course of negotiations, agreed to an
addition, deletion or change requested by the other party in the language of
this Agreement shall not be deemed an admission of fact by the party agreeing to
such change.

         19. Entire Agreement; Amendments. This Agreement constitutes the entire
agreement of the parties with respect to the subject matter hereof and
supercedes all prior agreements or understandings with regard to the terms and
conditions of the Executive's employment other than those contained in plans,
policies and practices of general applicability to members of the Company's
senior management. No amendment or waiver of this Agreement or any provision
hereof shall be effective unless contained in a writing executed by the party
against whom such amendment or waiver is asserted, and in the case of the
Company, by its duly authorized officer.

                                      -15-
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed and its seal to be affixed hereunto by its officers thereunto duly
authorized, and the Executive has signed this Agreement, all as of the first
date above written.

[CORPORATE SEAL]                            MELLON FINANCIAL CORPORATION

Attest: /s/ CARL KRASIK                     By: /s/ MARTIN G.MCGUINN
       ----------------------------             -------------------------------
               Secretary                        Title: Chairman and
                                                       Chief Executive Officer

                                                /s/ RONALD P. O'HANLEY
                                                --------------------------------
                                                      RONALD P. O'HANLEY

                                      -16-<PAGE>

                                                                   Exhibit 10.1

                         1999 EQUITABLE RESOURCES, INC.

                            LONG-TERM INCENTIVE PLAN

                     (As amended and restated May 17, 2001)

SECTION 1.  PURPOSES

         1.01 The purpose of the 1999 Equitable Resources, Inc. Long-Term
Incentive Plan (the "Plan") is to assist the Company in attracting, retaining
and motivating employees of outstanding ability and to align their interests
with those of the shareholders of the Company.

SECTION 2.  DEFINITIONS; CONSTRUCTION

         2.01 DEFINITIONS. In addition to the terms defined elsewhere in the
Plan, the following terms as used in the Plan shall have the following meanings
when used with initial capital letters:

                  2.01.1 "Award" means any Option, Restricted Stock, Performance
         Award or Other Stock-Based Award, or any other right or interest
         relating to Shares or cash granted under the Plan.

                  2.01.2 "Award Agreement" means any written agreement, contract
         or other instrument or document evidencing an Award.

                  2.01.3  "Board" means the Company's Board of Directors.

                  2.02.4 "Cause," when used with respect to the termination of
         employment of a Participant, means:

                           (a) the willful and continued failure by the
                  Participant to substantially perform his duties with the
                  Company or a Subsidiary (other than any such failure resulting
                  from the Participant's disability), after a written demand for
                  substantial performance is delivered to the Participant by the
                  Board which specifically identifies the manner in which the
                  Board believes that the Participant has not substantially
                  performed his duties, and which failure has not been cured
                  within 30 days after such written demand; or

                           (b) the willful and continued engaging by the
                  Participant in conduct which is demonstrably and materially
                  injurious to the Company or a Subsidiary, monetarily or
                  otherwise, or

                           (c) the breach by the Participant of any obligation
                  of confidentiality owed to the Company or a Subsidiary.

                  For purposes of this Section 2.02.4, no act, or failure to
         act, on the Participant's part shall be considered "willful" unless
         done, or omitted to be done, by the Participant in bad faith and
         without reasonable belief that such action or omission was in the best
         interest of the Company. Notwithstanding the foregoing, the Participant
         shall not be deemed to have been terminated for Cause unless and until
         there shall have been delivered to him a copy of a resolution duly
         adopted by the affirmative vote of not less than three-quarters of the
         entire membership of the Board at a meeting of the Board called and
         held for that purpose (after reasonable notice to the Participant and
         an opportunity for the Participant, together with his counsel, to be
         heard before the Board) finding that in the good faith opinion of the
         Board the Participant is guilty of the conduct set forth
<PAGE>

         above in clauses (a), (b) or (c) of this Section 2.02.4 and specifying
         the particulars thereof in detail.

                  2.01.5 "Code" means the Internal Revenue Code of 1986, as
         amended from time to time, together with rules, regulations and
         interpretations promulgated thereunder. References to particular
         sections of the Code shall include any successor provisions.

                  2.01.6 "Change of Control" has the meaning provided in Section
         9.03.

                  2.01.7 "Committee" means the Compensation Committee or such
         other Committee of the Board as may be designated by the Board to
         administer the Plan, as referred to in Section 3.01 hereof; provided
         however, that any member of the Committee participating in the taking
         of any action under the Plan shall qualify as a "non-employee director"
         as then defined under Rule 16b-3 and an "outside director" as then
         defined under Section 162(m) of the Code.

                  2.01.8 "Common Stock" means shares of the common stock,
         without par value, and such other securities of the Company as may be
         substituted for Shares pursuant to Section 8.01 hereof.

                  2.01.9 "Covered Employee" shall have the meaning provided in
         Section 162(m)(3) of the Code.

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

                  2.01.11 "Fair Market Value" of shares of any stock, including
         but not limited to Common Stock, or units of any other securities
         (herein "shares"), shall be the closing price for the date as of which
         Fair Market Value is to be determined in the principal market in which
         such shares are traded, as quoted in The Wall Street Journal (or in
         such other reliable publication as the Committee, in its discretion,
         may determine to rely upon). If the Fair Market Value of shares on any
         date cannot be determined on the basis set forth in the preceding
         sentence, or if a determination is required as to the Fair Market Value
         on any date of property other than shares, the Committee shall in good
         faith determine the Fair Market Value of such shares or other property
         on such date. Fair Market Value shall be determined without regard to
         any restriction other than a restriction which, by its terms, will
         never lapse.

                  2.01.12 "Incentive Stock Option" means an Option that is
         intended to meet the requirements of Section 422 of the Code and is
         designated as such in the Award Agreement relating thereto.

                  2.01.13 "Option" means a right, granted under Section 6.02
         hereof, to purchase Shares at a specified price during specified time
         periods. An Option may be either an Incentive Stock Option or a
         nonstatutory stock option, which is an Option not intended to be an
         Incentive Stock Option.

                  2.01.14 "Other Stock-Based Award" means an Award, granted
         under Section 6.05 hereof, that is denominated or payable in, valued in
         whole or in part by reference to, or otherwise based on, or related to,
         Shares.

                  2.01.15 "Participant" means an employee of the Company or any
         Subsidiary, including, but not limited to, Covered Employees, who is
         granted an Award under the Plan.

                  2.01.16 "Performance Award," "Performance Goal" and
         "Performance Period" shall have the meanings provided in Section 6.04.

<PAGE>

                  2.01.17 "Reload Option Rights" and "Reload Option" have the
         meanings provided in Section 6.02(v).

                  2.01.18 "Restricted Stock" means Shares, granted under Section
         6.03 hereof, that are subject to certain restrictions.

                  2.01.19 "Rule 16b-3" means Rule 16b-3 under the Exchange Act,
         as amended from time to time, or any successor to such Rule promulgated
         by the Securities and Exchange Commission under Section 16 of the
         Exchange Act.

                  2.01.20 "Shares" means the common stock of the Company,
         without par value, and such other securities of the Company as may be
         substituted for Shares pursuant to Section 8.01 hereof.

                  2.01.21 "Subsidiary" means any corporation in an unbroken
         chain of corporations beginning with the Company, if each of the
         corporations other than the last corporation in the chain owns stock
         possessing at least 50% of the total combined voting power of all
         classes of stock in one of the other corporations in the chain.

         2.02  CONSTRUCTION.  For purposes of the Plan, the following rules of
         construction shall apply:

                  2.02.1 The word "or" is disjunctive but not necessarily
         exclusive.

                  2.02.2 Words in the singular include the plural; words in the
         plural include the singular; words in the neuter gender include the
         masculine and feminine genders, and words in the masculine or feminine
         gender include the other and neuter genders.

SECTION 3. ADMINISTRATION

         3.01 The Plan shall be administered by the Committee. The Committee
shall have full and final authority to take the following actions, in each case
subject to and consistent with the provisions of the Plan:

                  (i)  to designate Participants;

                  (ii) to determine the type or types of Awards to be granted to
         each Participant;

                  (iii) to determine the number of Awards to be granted, the
         number of Shares or amount of cash or other property to which an Award
         will relate, the terms and conditions of any Award (including, but not
         limited to, any exercise price, grant price or purchase price, any
         limitation or restriction, any schedule for lapse of limitations,
         forfeiture restrictions or restrictions on exercisability or
         transferability, and accelerations or waivers thereof, based in each
         case on such considerations as the Committee shall determine), and all
         other matters to be determined in connection with an Award;

                  (iv) to determine whether, to what extent and under what
         circumstances an Award may be settled in, or the exercise price of an
         Award may be paid in cash, Shares, other Awards or other property, or
         an Award may be accelerated, vested, canceled, forfeited, exchanged or
         surrendered;

                  (v) to determine whether, to what extent and under what
         circumstances cash, Shares, other Awards, other property and other
         amounts payable with respect to an Award shall be

<PAGE>

         deferred, whether automatically or at the election of the Committee or
         at the election of the Participant;

                  (vi) to interpret and administer the Plan and any instrument
         or agreement relating to, or Award made under, the Plan;

                  (vii) to prescribe the form of each Award Agreement, which
         need not be identical for each Participant;

                  (viii) to adopt, amend, suspend, waive and rescind such rules
         and regulations as the Committee may deem necessary or advisable to
         administer the Plan;

                  (ix) to correct any defect or supply any omission or reconcile
         any inconsistency, and to construe and interpret the Plan, the rules
         and regulations, any Award Agreement or other instrument entered into
         or Award made under the Plan;

                  (x) to make all other decisions and determinations as may be
         required under the terms of the Plan or as the Committee may deem
         necessary or advisable for the administration of the Plan; and

                  (xi) to make such filings and take such actions as may be
         required from time to time by appropriate state, regulatory and
         governmental agencies.

         Any action of the Committee with respect to the Plan shall be final,
conclusive and binding on all Persons, including the Company, Subsidiaries,
Participants, any Person claiming any rights under the Plan from or through any
Participant, employees and shareholders. The express grant of any specific power
to the Committee, and the taking of any action by the Committee, shall not be
construed as limiting any power or authority of the Committee. The Committee may
delegate to officers or managers of the Company or any Subsidiary the authority,
subject to such terms as the Committee shall determine, to perform
administrative functions under the Plan and, with respect to Participants who
are not subject to Section 16 of the Exchange Act, to take such actions and
perform such functions under the Plan as the Committee may specify. Each member
of the Committee shall be entitled to, in good faith, rely or act upon any
report or other information furnished to him by an officer, manager or other
employee of the Company or a Subsidiary, the Company's independent certified
public accountants, or any executive compensation consultant or other
professional retained by the Company to assist in the administration of the
Plan.

SECTION 4.  SHARES SUBJECT TO THE PLAN

         4.01 The maximum net number of Shares which may be issued and in
respect of which Awards may be granted under the Plan shall be limited to (i)
6,000,000 shares (3,000,000 shares prior to the June 11, 2001 stock split) of
Common Stock, subject to adjustment as provided in Section 8.01, which may be
used for all forms of Awards, and (ii) 5,000,000 shares (2,500,000 shares prior
to the June 11, 2001 stock split) of Common Stock, subject to adjustment as
provided in Section 8.01, which may be used for all forms of Awards excluding
Incentive Stock Options. For purposes of determining the number of Shares
available under either of the foregoing categories, Shares issued with respect
to Awards granted on or after May 17, 2001, the amendment date, shall be deemed
to have been issued from category (ii) of the foregoing sentence unless such
Award is an Incentive Stock Option or as otherwise determined by the Committee.

<PAGE>

         For purposes of this Section 4.01, the number of Shares to which an
Award relates shall be counted against the number of Shares available under the
Plan at the time of grant of the Award, unless such number of Shares cannot be
determined at that time, in which case the number of Shares actually distributed
pursuant to the Award shall be counted against the number of Shares available
under the Plan at the time of distribution; provided, however, that Awards
related to or retroactively added to, or granted in tandem with, substituted for
or converted into, other Awards shall be counted or not counted against the
number of Shares reserved and available under the Plan in accordance with
procedures adopted by the Committee so as to ensure appropriate counting but
avoid double counting.

         If any Shares to which an Award relates are forfeited, or payment is
made to the Participant in the form of cash, cash equivalents or other property
other than Shares, or the Award otherwise terminates without payment being made
to the Participant in the form of Shares, any Shares counted against the number
of Shares available under the Plan with respect to such Award shall, to the
extent of any such forfeiture, alternative payment or termination, again be
available for Awards under the Plan. If the exercise price of an Award is paid
by delivering to the Company Shares previously owned by the Participant, the
Shares covered by the Award equal to the number of Shares so delivered shall
again be available for Awards under the Plan. Any Shares distributed pursuant to
an Award, if granted pursuant to category (i) of the first sentence of this
Section, may consist, in whole or part, of authorized and unissued Shares or of
treasury Shares, including Shares repurchased by the Company for purposes of the
Plan and, if granted pursuant to category (ii) of the first sentence of this
Section, shall consist of treasury Shares.

SECTION 5.  ELIGIBILITY
         5.01 Awards may be granted only to individuals who are full-time
employees (including, without limitation, employees who also are directors or
officers and Covered Employees) of the Company or any Subsidiary; provided,
however, that no Award shall be granted to any member of the Committee.

SECTION 6.  SPECIFIC TERMS OF AWARDS

         6.01 GENERAL. Subject to the terms of the Plan and any applicable Award
Agreement, Awards may be granted as set forth in this Section 6. In addition,
the Committee may impose on any Award or the exercise thereof, at the date of
grant or thereafter (subject to the terms of Section 10.01), such additional
terms and conditions, not inconsistent with the provisions of the Plan, as the
Committee shall determine, including separate escrow provisions and terms
requiring forfeiture of Awards in the event of termination of employment by the
Participant. Except as provided in Section 7.01, or as required by applicable
law, Awards may be granted for no consideration other than prior and/or future
services.

         6.02 OPTIONS. The Committee is authorized to grant Options to
Participants on the following terms and conditions:

                  (i) Exercise Price. The exercise price per Share of an Option
         shall not be less than 100% of the Fair Market Value of a Share on the
         date of grant of such Option, except as otherwise provided in Section
         7.01.

                  (ii) Option Term. The term of each Option shall be determined
         by the Committee, except that no Incentive Stock Option shall be
         exercisable after the expiration of ten years from the date of grant.

                  (iii) Times and Methods of Exercise. The Committee shall
         determine the time or times at which an Option may be exercised in
         whole or in part, the methods by which the exercise price
<PAGE>
         may be paid or deemed to be paid, and the form of such payment,
         including, without limitation, cash (including notes or other
         contractual obligations of Participants to make payment on a deferred
         basis, to the extent permitted by law), Shares, other outstanding
         Awards or other property or any combination thereof, having a Fair
         Market Value on the date of exercise equal to the exercise price,
         provided, however, that (1) in the case of a Participant who is at the
         time of exercise subject to Section 16 of the Exchange Act, any portion
         of the exercise price representing a fraction of a Share shall in any
         event be paid in cash or in property other than any equity security (as
         defined by the Exchange Act) of the Company and (2) except as otherwise
         determined by the Committee, in its discretion, at the time the Option
         is granted, no shares which have been held for less than six months may
         be delivered in payment of the exercise price of an Option.

         Delivery of Shares in payment of the exercise price of an Option, if
         authorized by the Committee, may be accomplished through the effective
         transfer to the Company of Shares held by a broker or other agent.
         Unless otherwise determined by the Committee, the Company will also
         cooperate with any person exercising an Option who participates in a
         cashless exercise program of a broker or other agent under which all or
         part of the Shares received upon exercise of the Option are sold
         through the broker or other agent, or under which the broker or other
         agent makes a loan to such person, for the purpose of paying the
         exercise price of an Option. Notwithstanding the preceding sentence,
         unless the Committee, in its discretion, shall otherwise determine, the
         exercise of the Option shall not be deemed to occur, and no Shares will
         be issued by the Company upon exercise of an Option, until the Company
         has received payment in full of the exercise price.

         Notwithstanding any other provision contained in the Plan or in any
         Award Agreement, but subject to the possible exercise of the
         Committee's discretion contemplated in the last sentence of this
         Section 6.02(iii), the aggregate Fair Market Value, determined as of
         the date of grant, of the Shares with respect to which Incentive Stock
         Options are exercisable for the first time by a Participant during any
         calendar year under all plans of the corporation employing such
         employee, any parent or subsidiary corporation of such corporation and
         any predecessor corporation of any such corporation shall not exceed
         $100,000. If the date on which one or more of such Incentive Stock
         Options could first be exercised would be accelerated pursuant to any
         provision of the Plan or any Award Agreement, and the acceleration of
         such exercise date would result in a violation of the restriction set
         forth in the preceding sentence, then, notwithstanding any such
         provision, but subject to the provisions of the next succeeding
         sentence, the exercise dates of such Incentive Stock Options shall be
         accelerated only to the date or dates, if any, that do not result in a
         violation of such restriction and, in such event, the exercise dates of
         the Incentive Stock Options with the lowest option prices shall be
         accelerated to the earliest such dates. The Committee may, in its
         discretion, authorize the acceleration of the exercise date of one or
         more Incentive Stock Options even if such acceleration would violate
         the $100,000 restriction set forth in the first sentence of this
         paragraph and even if such Incentive Stock Options are thereby
         converted in whole or in part to nonstatutory stock options.

                  (iv) Termination of Employment. Unless otherwise determined by
         the Committee and reflected in the Award Agreement:

                              (A) if a Participant shall die while employed by
                        the Company or a Subsidiary or during a period following
                        termination of employment during which an Option
                        otherwise remains exercisable under this Section
                        6.02(iv), Options granted to the Participant, to the
                        extent exercisable at the time of the Participant's
                        death, may be exercised within one year after the date
                        of the Participant's death, but not later than the
                        expiration date of the Option, by the executor or
                        administrator of the Participant's estate or by the
                        Person or
<PAGE>

                        Persons to whom the Participant shall have transferred
                        such right by will, by the laws of descent and
                        distribution or, if permitted by the Committee, by inter
                        vivos transfer.

                              (B) if the employment of a Participant with the
                        Company or a Subsidiary shall be involuntarily
                        terminated under circumstances which would qualify the
                        Participant for benefits under the Company's Separation
                        Allowance Plan, or if a Participant shall retire under
                        the terms of any retirement plan of the Company or a
                        Subsidiary or shall terminate his or her employment with
                        the written consent of the Company or a Subsidiary
                        specifically permitting such exercise, Options granted
                        to the Participant, to the extent exercisable at the
                        date of the Participant's termination of employment, may
                        be exercised within 90 days after the date of
                        termination of employment, but not later than the
                        expiration date of the Option.

                              (C) except to the extent an Option remains
                        exercisable under paragraph (A) or (B) above or under
                        Section 9.02, any Option granted to a Participant shall
                        terminate immediately upon the termination of all
                        employment of the Participant with the Company or a
                        Subsidiary.

                        (v) Reload Option Rights. Reload Option Rights if
                  awarded with respect to an Option shall entitle the holder of
                  the Option, upon exercise of the Option or any portion thereof
                  through delivery of previously owned Shares, to automatically
                  be granted on the date of such exercise a new nonstatutory
                  stock option (a "Reload Option") (1) for a number of Shares
                  not exceeding the number of full Shares delivered in payment
                  of the option price of the original Option and any withholding
                  taxes related thereto, (2) having an option price not less
                  than 100% of the Fair Market Value per Share of the Common
                  Stock on such date of grant, (3) having an expiration date not
                  later than the expiration date of the original Option so
                  exercised and (4) otherwise having terms permissible for the
                  grant of an Option under the Plan. Subject to the preceding
                  sentence and the other provisions of the Plan, Reload Option
                  Rights and Reload Options shall have such terms and be subject
                  to such restrictions and conditions, if any, as shall be
                  determined, in its discretion, by the Committee. In granting
                  Reload Option Rights, the Committee, may, in its discretion,
                  provide for successive Reload Option grants upon the exercise
                  of Reload Options granted thereunder. Unless otherwise
                  determined, in its discretion, by the Committee, Reload Option
                  Rights shall entitle the holder of an Option to be granted a
                  Reload Option only if the underlying Option to which they
                  relate is exercised during employment with the Company or a
                  Subsidiary of the original grantee of the underlying Option.
                  Except as otherwise specifically provided herein or required
                  by the context, the term Option as used in this Plan shall
                  include Reload Options granted hereunder.

                        (vi) Individual Option Limit. The aggregate number of
                  Shares for which Options may be granted under the Plan to any
                  single Participant shall not exceed 750,000 Shares. The
                  limitation in the preceding sentence shall be interpreted and
                  applied in a manner consistent with Section 162(m) of the Code
                  and, to the extent consistent with Section 162(m) of the Code,
                  in accordance with Section 4.01 hereof. To the extent
                  consistent with Section 162(m) of the Code, in applying this
                  limitation a Reload Option shall not be deemed to increase the
                  number of Shares covered by the original underlying Option
                  grant.

         6.03  RESTRICTED  STOCK.  The Committee is authorized to grant
Restricted Stock to Participants on the following terms and conditions:

                        (i) Issuance and Restrictions. Restricted Stock shall be
                  subject to such restrictions on transferability and other
                  restrictions as the Committee may impose (including, without
                  limitation, limitations on the right to vote Restricted Stock
                  or the right to receive dividends thereon), which
<PAGE>

                  restrictions may lapse separately or in combination at such
                  times, under such circumstances, in such installments or
                  otherwise, as the Committee shall determine at the time of
                  grant or thereafter.

                        (ii) Forfeiture. Except as otherwise determined by the
                  Committee at the time of grant or thereafter, upon termination
                  of employment (as determined under criteria established by the
                  Committee) during the applicable restriction period,
                  Restricted Stock that is at that time subject to restrictions
                  shall be forfeited and reacquired by the Company; provided,
                  however, that the Committee may provide, by rule or regulation
                  or in any Award Agreement, that restrictions on Restricted
                  Stock shall be waived in whole or in part in the event of
                  terminations resulting from specified causes, and the
                  Committee may in other cases waive in whole or in part
                  restrictions on Restricted Stock.

                        (iii) Certificates for Shares. Restricted Stock granted
                  under the Plan may be evidenced in such manner as the
                  Committee shall determine, including, without limitation,
                  issuance of certificates representing Shares. Certificates
                  representing Shares of Restricted Stock shall be registered in
                  the name of the Participant and shall bear an appropriate
                  legend referring to the terms, conditions and restrictions
                  applicable to such Restricted Stock.

         6.04  PERFORMANCE AWARDS.  The Committee is authorized to grant
Performance Awards to Participants on the following terms and conditions:

                        (i) Right to Payment. A Performance Award shall
                  represent a right to receive Shares, cash, other property or
                  any combination thereof based on the achievement, or the level
                  of achievement, during a specified Performance Period of one
                  or more Performance Goals established by the Committee at the
                  time of the Award.

                        (ii) Terms of Performance Awards. At the time a
                  Performance Award is granted, the Committee shall cause to be
                  set forth in the Award Agreement or otherwise in writing (1)
                  the Performance Goals applicable to the Award and the
                  Performance Period during which the achievement of the
                  Performance Goals shall be measured, (2) the amount which may
                  be earned by the Participant based on the achievement, or the
                  level of achievement, of the Performance Goals or the formula
                  by which such amount shall be determined and (3) such other
                  terms and conditions applicable to the Award as the Committee
                  may, in its discretion, determine to include therein. The
                  terms so established by the Committee shall be objective such
                  that a third party having knowledge of the relevant facts
                  could determine whether or not any Performance Goal has been
                  achieved, or the extent of such achievement, and the amount,
                  if any, which has been earned by the Participant based on such
                  performance. The Committee may retain the discretion to reduce
                  (but not to increase) the amount of a Performance Award which
                  will be earned based on the achievement of Performance Goals.

                        (iii) Performance Goals. "Performance Goals" shall mean
                  one or more preestablished, objective measures of performance
                  during a specified Performance Period by the Company, a
                  Subsidiary or Subsidiaries, any branch, department or other
                  portion thereof or the Participant individually, selected by
                  the Committee in its discretion to determine whether
                  Performance Award has been earned in whole or in part.
                  Performance Goals may be based on earnings per share, net
                  income, revenue growth, revenues, expenses, return on equity,
                  return on total capital or return on assets. Performance Goals
                  based on such performance measures may be based either on the
                  performance of the Company, Subsidiary or portion thereof
                  under such measure for the Performance Period and/or upon a
                  comparison of such performance with the performance of a peer
                  group of corporations selected or defined by the Committee at
                  the time of making a Performance Award. The Committee may in
                  its discretion also determine to use other objective
                  performance measures as Performance Goals.
<PAGE>

                        (iv) Committee Certification. Following completion of
                  the applicable Performance Period, and prior to any payment of
                  a Performance Award to the Participant, the Committee shall
                  determine in accordance with the terms of the Performance
                  Award and shall certify in writing whether the applicable
                  Performance Goal or Goals were achieved, or the level of such
                  achievement, and the amount, if any, earned by the Participant
                  based upon such performance. For this purpose, approved
                  minutes of the meeting of the Committee at which certification
                  is made shall be sufficient to satisfy the requirement of a
                  written certification.

                        (v) Maximum Individual Performance Award Payments. With
                  respect to all Performance Periods ending in any one calendar
                  year, the maximum amount which may be earned by any single
                  Participant under all Performance Awards granted under the
                  Plan shall be limited to $1,000,000. In applying this limit,
                  the amount of any cash or the Fair Market Value of any Shares
                  or other property earned by a Participant shall be measured as
                  of the close of the applicable Performance Period, regardless
                  of the fact that certification by the Committee and actual
                  payment to the Participant may occur in a subsequent calendar
                  year or years.

         6.05 OTHER STOCK-BASED AWARDS. The Committee is authorized, subject to
limitations under applicable law, to grant to Participants such other Awards
that are denominated or payable in, valued in whole or in part by reference to,
or otherwise based on, or related to, Shares, as deemed by the Committee to be
consistent with the purposes of the Plan, including, without limitation,
purchase rights, Shares awarded which are not subject to any restrictions or
conditions, convertible securities, exchangeable securities or other rights
convertible or exchangeable into Shares, as the Committee in its discretion may
determine. In the discretion of the Committee, such Other Stock-Based Awards,
including Shares, or other types of Awards authorized under the Plan, may be
used in connection with, or to satisfy obligations of the Company or a
Subsidiary under, other compensation or incentive plans, programs or
arrangements of the Company or any Subsidiary for eligible Participants,
including without limitation the Short-Term Incentive Compensation Plan, the
Deferred Compensation Plan and executive contracts.

         The Committee shall determine the terms and conditions of Other
Stock-Based Awards. Except as provided in Section 7.01, Shares or securities
delivered pursuant to a purchase right granted under this Section 6.05 shall be
purchased for such consideration, paid for by such methods and in such forms,
including, without limitation, cash, Shares, outstanding Awards or other
property or any combination thereof, as the Committee shall determine, but the
value of such consideration shall not be less than the Fair Market Value of such
Shares or other securities on the date of grant of such purchase right. Delivery
of Shares or other securities in payment of a purchase right, if authorized by
the Committee, may be accomplished through the effective transfer to the Company
of Shares or other securities held by a broker or other agent. Unless otherwise
determined by the Committee, the Company will also cooperate with any person
exercising a purchase right who participates in a cashless exercise program of a
broker or other agent under which all or part of the Shares or securities
received upon exercise of a purchase right are sold through the broker or other
agent, or under which the broker or other agent makes a loan to such person, for
the purpose of paying the exercise price of a purchase right. Notwithstanding
the preceding sentence, unless the Committee, in its discretion, shall otherwise
determine, the exercise of the purchase right shall not be deemed to occur, and
no Shares or other securities will be issued by the Company upon exercise of a
purchase right, until the Company has received payment in full of the exercise
price.

         6.06 EXCHANGE PROVISIONS. The Committee may at any time offer to
exchange or buy out any previously granted Award for a payment in cash, Shares,
another Award or other property, based on such terms and conditions as the
Committee shall determine and communicate to the Participant at the time that
such offer is made.

<PAGE>

SECTION 7.  GENERAL TERMS OF AWARDS

         7.01 STAND-ALONE, TANDEM AND SUBSTITUTE AWARDS. Awards granted under
the Plan may, in the discretion of the Committee, be granted either alone or in
addition to, in tandem with or in substitution for, any other Award granted
under the Plan or any award granted under the Management Incentive Compensation
Plan, or any other plan, program or arrangement of the Company or any Subsidiary
(subject to the terms of Section 10.01) or any business entity acquired or to be
acquired by the Company or a Subsidiary, except that an Incentive Stock Option
may not be granted in tandem with other Awards or awards. If an Award is granted
in substitution for another Award or award, the Committee shall require the
surrender of such other Award or award in consideration for the grant of the new
Award. Awards granted in addition to or in tandem with other Awards or awards
may be granted either at the same time as or at a different time from the grant
of such other Awards or awards. The exercise price of any Option or the purchase
price of any other Award conferring a right to purchase Shares:

                  (i) granted in substitution for an outstanding Award or award
         shall be not less than the Fair Market Value of Shares at the date such
         substitute Award is granted; provided, however, that (1) except in the
         case of (a) an Incentive Stock Option or (b) an Option granted to a
         Covered Employee, the exercise, grant or purchase price per share of
         the substituted Award may be reduced to reflect the Fair Market Value
         of the Award or award required to be surrendered by the Participant as
         a condition to receipt of such substitute Award, and (2) in the case of
         any Participant, the Committee may, in lieu of such price reduction,
         make an additional Award or payment to the Participant reflecting the
         Fair Market Value of the Award or award required to be surrendered; or

                  (ii) retroactively granted in tandem with an outstanding Award
         or award shall be not less than the lesser of the Fair Market Value of
         Shares at the date of grant of the later Award or the Fair Market Value
         of Shares at the date of grant of the earlier Award.

         7.02 CERTAIN RESTRICTIONS UNDER RULE 16b-3. Upon the effectiveness of
any amendment to Rule 16b-3, this Plan and any Award Agreement for an
outstanding Award held by a Participant then subject to Section 16 of the
Exchange Act shall be deemed to be amended, without further action on the part
of the Committee, the Board or the Participant, to the extent necessary for
Awards under the Plan or such Award Agreement to qualify for the exemption
provided by Rule 16b-3, as so amended, except to the extent any such amendment
requires shareholder approval.

         7.03 DECISIONS REQUIRED TO BE MADE BY THE COMMITTEE. Other provisions
of the Plan and any Award Agreement notwithstanding, if any decision regarding
an Award or the exercise of any right by a Participant, at any time such
Participant is subject to Section 16 of the Exchange Act, is required to be made
or approved by the Committee in order that a transaction by such Participant
will be exempt under Rule 16b-3, then the Committee shall retain full and
exclusive power and authority to make such decision or to approve or disapprove
any such decision by the Participant.

         7.04 TERM OF AWARDS. The term of each Award shall be for such period as
may be determined by the Committee; provided, however, that in no event shall
the term of any Incentive Stock Option exceed a period of ten years from the
date of its grant.

         7.05 FORM OF PAYMENT OF AWARDS. Subject to the terms of the Plan and
any applicable Award Agreement, payments or substitutions to be made by the
Company upon the grant, exercise or other payment or distribution of an Award
may be made in such forms as the Committee shall determine at the time of grant
or thereafter (subject to the terms of Section 10.01), including, without
limitation, cash, Shares, other Awards or other property or any combination
thereof, and may be made in a single payment or substitution, in installments or
on a deferred basis, in each case in accordance with rules and
<PAGE>

procedures established, or as otherwise determined, by the Committee. Such rules
and procedures or determinations may include, without limitation, provisions for
the payment or crediting of reasonable interest on installment or deferred
payments or the grant or crediting of dividend equivalents in respect of
installment or deferred payments.

         7.06 LIMITS ON TRANSFER OF AWARDS; BENEFICIARIES. No right or interest
of a Participant in any Award shall be pledged, encumbered or hypothecated to or
in favor of any Person other than the Company, or shall be subject to any lien,
obligation or liability of such Participant to any Person other than the Company
or a Subsidiary. Except to the extent otherwise determined by the Committee, no
Award and no rights or interests therein shall be assignable or transferable by
a Participant otherwise than by will or the laws of descent and distribution,
and any Option or other right to purchase or acquire Shares granted to a
Participant under the Plan shall be exercisable during the Participant's
lifetime only by such Participant. A beneficiary, guardian, legal representative
or other Person claiming any rights under the Plan from or through any
Participant shall be subject to all the terms and conditions of the Plan and any
Award Agreement applicable to such Participant as well as any additional
restrictions or limitations deemed necessary or appropriate by the Committee.

         7.07 REGISTRATION AND LISTING COMPLIANCE. No Award shall be paid and no
Shares or other securities shall be distributed with respect to any Award in a
transaction subject to the registration requirements of the Securities Act of
1933, as amended, or any state securities law or subject to a listing
requirement under any listing agreement between the Company and any national
securities exchange, and no Award shall confer upon any Participant rights to
such payment or distribution until such laws and contractual obligations of the
Company have been complied with in all material respects. Except to the extent
required by the terms of an Award Agreement or another contract between the
Company and the Participant, neither the grant of any Award nor anything else
contained herein shall obligate the Company to take any action to comply with
any requirements of any such securities laws or contractual obligations relating
to the registration (or exemption therefrom) or listing of any Shares or other
securities, whether or not necessary in order to permit any such payment or
distribution.

         7.08 STOCK CERTIFICATES. All certificates for Shares delivered under
the terms of the Plan shall be subject to such stop-transfer orders and other
restrictions as the Committee may deem advisable under federal or state
securities laws, rules and regulations thereunder, and the rules of any national
securities exchange or automated quotation system on which Shares are listed or
quoted. The Committee may cause a legend or legends to be placed on any such
certificates to make appropriate reference to such restrictions or any other
restrictions or limitations that may be applicable to Shares. In addition,
during any period in which Awards or Shares are subject to restrictions or
limitations under the terms of the Plan or any Award Agreement, or during any
period during which delivery or receipt of an Award or Shares has been deferred
by the Committee or a Participant, the Committee may require any Participant to
enter into an agreement providing that certificates representing Shares issuable
or issued pursuant to an Award shall remain in the physical custody of the
Company or such other Person as the Committee may designate.

SECTION 8.  ADJUSTMENT PROVISIONS

         8.01 In the event that the Committee shall determine that any dividend
or other distribution (whether in the form of cash, Shares, other securities or
other property), recapitalization, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, exchange of Shares or other securities of the Company, or other
similar corporate transaction or event affects the Shares such that an
adjustment is determined by the Committee to be appropriate in order to prevent
dilution or enlargement of Participants' rights under the Plan, then the
Committee shall, in such manner as it may deem equitable, adjust any or all of
(i) the number and kind of Shares which may thereafter be issued in connection
with Awards; (ii) the number and kind of Shares issued or issuable in
<PAGE>

respect of outstanding Awards; and (iii) the exercise price, grant price or
purchase price relating to any Award or, if deemed appropriate, make provision
for a cash payment with respect to any outstanding Award; provided, however, in
each case, that (1) with respect to Incentive Stock Options, no such adjustment
shall be authorized to the extent that such authority would cause the Plan to
violate Section 422(b)(1) of the Code and (2) with respect to Options or
Performance Awards held by a Covered Employee, no such adjustment shall be
authorized to the extent that such authority would cause such Awards to fail to
qualify as "performance-based compensation" under Section 162(m)(4)(C) of the
Code. In addition, the Committee is authorized to make adjustments in the terms
and conditions of, and the criteria of, Awards in recognition of unusual or
nonrecurring events (including, without limitation, events described in the
preceding sentence) affecting the Company or the financial statements of the
Company, or in response to changes in applicable laws, regulations or accounting
principles; provided, however, that (1) with respect to Incentive Stock Options,
no such adjustment shall be authorized to the extent that such authority would
cause the Plan to violate Section 422(b)(1) of the Code and (2) with respect to
Options or Performance Awards held by a Covered Employee, no such adjustment
shall be authorized to the extent that such authority would cause such Awards to
fail to qualify as "performance-based compensation" under Section 162(m)(4)(C)
of the Code.

SECTION 9.  CHANGE OF CONTROL PROVISIONS

         9.01 ACCELERATION OF EXERCISABILITY AND LAPSE OF RESTRICTIONS. Unless
otherwise determined by the Committee at the time of grant of an Award or unless
otherwise provided in the applicable Award Agreement, if the shareholders of the
Company shall approve a transaction which upon consummation would constitute a
Change of Control of the Company, or if any Change of Control of the Company not
subject to shareholder approval shall occur:

                  (i) all outstanding Awards pursuant to which the Participant
         may have rights, the exercise of which is restricted or limited, shall
         become fully exercisable;

                  (ii) all restrictions or limitations (including risks of
         forfeiture and deferrals) on outstanding Awards subject to restrictions
         or limitations under the Plan shall lapse unless prior to such lapse
         the right to lapse of restrictions or limitations is waived or deferred
         by the Participant; and

                  (iii) all performance criteria and other conditions to payment
         of Awards under which payments of cash, Shares or other property are
         subject to conditions shall be deemed to be achieved or fulfilled and
         shall be waived by the Company.

         9.02 TERMINATION OF EMPLOYMENT FOLLOWING CHANGE OF CONTROL. If within
three years following the date of any Change of Control the employment of a
Participant shall be terminated voluntarily or involuntarily for any reason
other than for Cause, then unless otherwise provided in the applicable Award
Agreement, and in addition to any other rights of post-termination exercise
which the Participant (or other holder of the Award) may have under the Plan or
the applicable Award Agreement, any Option or other Award granted to the
Participant and outstanding on the date of the Change of Control, the payment or
receipt of which is dependent upon exercise by the Participant (or other holder
of the Award) shall be exercisable for a period of 90 days following the date of
such termination of employment but not later than the expiration date of the
Award.

         9.03 DEFINITION OF CHANGE OF CONTROL. For purposes of this Section 9, a
"Change of Control" of the Company shall mean any of the following events:

                  (a) The sale or other disposition by the Company of all or
         substantially all of its assets to a single purchaser or to a group of
         purchasers, other than to a corporation with respect to which,

<PAGE>

         following such sale or disposition, more than eighty percent of,
         respectively, the then outstanding shares of Common Stock and the
         combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of the Board is then owned
         beneficially, directly or indirectly, by all or substantially all of
         the individuals and entities who were the beneficial owners,
         respectively of the outstanding Common Stock and the combined voting
         power of the then outstanding voting securities immediately prior to
         such sale or disposition in substantially the same proportion as their
         ownership of the outstanding Common Stock and voting power immediately
         prior to such sale or disposition;

                  (b) The acquisition in one or more transactions by any person
         or group, directly or indirectly, of beneficial ownership of twenty
         percent or more of the outstanding shares of Common Stock or the
         combined voting power of the then outstanding voting securities of the
         Company entitled to vote generally in the election of the Board;
         provided, however, that any acquisition by (x) the Company or any of
         its Subsidiaries, or any employee benefit plan (or related trust)
         sponsored or maintained by the Company or any of its Subsidiaries or
         (y) any person that is eligible, pursuant to Rule 13d-1(b) under the
         Exchange Act (as in effect on the effective date of the Plan) to file a
         statement on Schedule 13G with respect to its beneficial ownership of
         Common Stock and other voting securities, whether or not such person
         shall have filed a statement on Schedule 13G, unless such person shall
         have filed a statement on Schedule 13D with respect to beneficial
         ownership of fifteen percent or more of the Company's voting
         securities, shall not constitute a Change of Control;

                  (c) The Company's termination of its business and liquidation
         of its assets;

                  (d) There is consummated a merger, consolidation,
         reorganization, share exchange, or similar transaction involving the
         Company (including a triangular merger), in any case, unless
         immediately following such transaction: (i) all or substantially all of
         the persons who were the beneficial owners of the outstanding Commons
         Stock and outstanding voting securities of the Company immediately
         prior to the transaction beneficially own, directly or indirectly, more
         than 60% of the outstanding shares of Commons Stock and the combined
         voting power of the then outstanding voting securities entitled to vote
         generally in the election of directors of the corporation resulting
         from such transaction (including a corporation or other person which as
         a result of such transaction owns the Company or all or substantially
         all of the Company's assets through one or more subsidiaries (a "Parent
         Company")) in substantially the same proportion as their ownership of
         the Common Stock and other voting securities of the Company immediately
         prior to the consummation of the transaction, (ii) no person (other
         than the Company, any employee benefit plan sponsored or maintained by
         the Company or, if reference was made to equity ownership of any Parent
         Company for purposes of determining whether clause (i) above is
         satisfied in connection with the transaction, such Parent Company)
         beneficially owns, directly or indirectly, 20% or more of the
         outstanding shares of Common Stock or the combined voting power of the
         voting securities entitled to vote generally in the election of
         directors of the corporation resulting from such transaction and (iii)
         individuals who were members of the Board immediately prior to the
         consummation of the transaction constitute at least a majority of the
         members of the board of directors resulting from such transaction (or,
         if reference was made to equity ownership of any Parent Company for
         purposes of determining whether clause (i) above is satisfied in
         connection with the transaction, such Parent Company); or

                  (e) The following individuals cease for any reason to
         constitute a majority of the number of directors then serving:
         individuals who, on the date hereof, constitute the entire Board and
         any new director (other than a director whose initial assumption of
         office is in connection with an actual or threatened election contest,
         including but not limited to a consent solicitation, relating to the
         election of directors of the Company) whose appointment or election by
         the Board or
<PAGE>

         nomination for election by the Company's shareholders was approved by a
         vote of at least two-thirds (2/3) of the directors then still in office
         who either were directors on the effective date of the Plan or whose
         appointment, election or nomination for election was previously so
         approved.

SECTION 10.  AMENDMENTS TO AND TERMINATION OF THE PLAN

         10.01 The Board may amend, alter, suspend, discontinue or terminate the
Plan without the consent of shareholders or Participants, except that, without
the approval of the shareholders of the Company, no amendment, alteration,
suspension, discontinuation or termination shall be made if shareholder approval
is required by any federal or state law or regulation or by the rules of any
stock exchange on which the Shares may then be listed, or if the Board in its
discretion determines that obtaining such shareholder approval is for any reason
advisable; provided, however, that except as provided in Section 7.02, without
the consent of the Participant, no amendment, alteration, suspension,
discontinuation or termination of the Plan may materially and adversely affect
the rights of such Participant under any Award theretofore granted to him. The
Committee may waive any conditions or rights under, amend any terms of, or
amend, alter, suspend, discontinue or terminate, any Award theretofore granted,
prospectively or retrospectively; provided, however, that except as provided in
Section 7.02, without the consent of a Participant, no amendment, alteration,
suspension, discontinuation or termination of any Award may materially and
adversely affect the rights of such Participant under any Award theretofore
granted to him; and provided further that, except as provided in Section 8.01 of
the Plan, the exercise price of any outstanding Option may not be reduced,
whether through amendment, cancellation or replacement, unless such reduction is
approved by the shareholders of the Company.

SECTION 11.  GENERAL PROVISIONS

         11.01 NO RIGHT TO AWARDS; NO SHAREHOLDER RIGHTS. No Participant or
employee shall have any claim to be granted any Award under the Plan, and there
is no obligation for uniformity of treatment of Participants and employees,
except as provided in any other compensation arrangement. No Award shall confer
on any Participant any of the rights of a shareholder of the Company unless and
until Shares are in fact issued to such Participant in connection with such
Award.

         11.02 WITHHOLDING. To the extent required by applicable Federal, state,
local or foreign law, the Participant or his successor shall make arrangements
satisfactory to the Company, in its discretion, for the satisfaction of any
withholding tax obligations that arise in connection with an Award. The Company
shall not be required to issue any Shares or make any cash or other payment
under the Plan until such obligations are satisfied.

         The Company is authorized to withhold from any Award granted or any
payment due under the Plan, including from a distribution of Shares, amounts of
withholding taxes due with respect to an Award, its exercise or any payment
thereunder, and to take such other action as the Committee may deem necessary or
advisable to enable the Company and Participants to satisfy obligations for the
payment of such taxes. This authority shall include authority to withhold or
receive Shares, Awards or other property and to make cash payments in respect
thereof in satisfaction of such tax obligations.

         11.03 NO RIGHT TO EMPLOYMENT. Nothing contained in the Plan or any
Award Agreement shall confer, and no grant of an Award shall be construed as
conferring, upon any Participant any right to continue in the employ of the
Company or to interfere in any way with the right of the Company to terminate
his employment at any time or increase or decrease his compensation from the
rate in existence at the time of granting of an Award, except as provided in any
Award Agreement or other compensation arrangement.

<PAGE>

         11.04 UNFUNDED STATUS OF AWARDS; CREATION OF TRUSTS. The Plan is
intended to constitute an "unfunded" plan for incentive and deferred
compensation. With respect to any payments not yet made to a Participant
pursuant to an Award, nothing contained in the Plan or any Award Agreement shall
give any such Participant any rights that are greater than those of a general
unsecured creditor of the Company; provided, however, that the Committee may
authorize the creation of trusts or make other arrangements to meet the
Company's obligations under the Plan to deliver cash, Shares or other property
pursuant to any Award, which trusts or other arrangements shall be consistent
with the "unfunded" status of the Plan unless the Committee otherwise
determines.

         11.05 NO LIMIT ON OTHER COMPENSATORY ARRANGEMENTS. Nothing contained in
the Plan shall prevent the Company from adopting other or additional
compensation arrangements (which may include, without limitation, employment
agreements with executives and arrangements which relate to Awards under the
Plan), and such arrangements may be either generally applicable or applicable
only in specific cases. Notwithstanding anything in the Plan to the contrary,
the terms of each Award shall be construed so as to be consistent with such
other arrangements in effect at the time of the Award.

         11.06 NO FRACTIONAL SHARES. No fractional Shares shall be issued or
delivered pursuant to the Plan or any Award. The Committee shall determine
whether cash, other Awards or other property shall be issued or paid in lieu of
fractional Shares or whether such fractional Shares or any rights thereto shall
be forfeited or otherwise eliminated.

         11.07 GOVERNING LAW. The validity, interpretation, construction and
effect of the Plan and any rules and regulations relating to the Plan shall be
governed by the laws of the Commonwealth of Pennsylvania (without regard to the
conflicts of laws thereof), and applicable Federal law.

         11.08 SEVERABILITY. If any provision of the Plan or any Award is or
becomes or is deemed invalid, illegal or unenforceable in any jurisdiction, or
would disqualify the Plan or any Award under any law deemed applicable by the
Committee, such provision shall be construed or deemed amended to conform to
applicable laws or if it cannot be construed or deemed amended without, in the
determination of the Committee, materially altering the intent of the Plan or
Award, it shall be deleted and the remainder of the Plan or Award shall remain
in full force and effect; provided, however, that, unless otherwise determined
by the Committee, the provision shall not be construed or deemed amended or
deleted with respect to any Participant whose rights and obligations under the
Plan are not subject to the law of such jurisdiction or the law deemed
applicable by the Committee.

SECTION 12.  EFFECTIVE DATE AND TERM OF THE PLAN

         12.01 The effective date and date of adoption of the Plan shall be
March 17, 1999, the date of adoption of the Plan by the Board, provided that
such adoption of the Plan is approved by a majority of the votes cast at a duly
held meeting of shareholders held on or prior to March 16, 2000 at which a
quorum representing a majority of the outstanding voting stock of the Company
is, either in person or by proxy, present and voting. Notwithstanding anything
else contained in the Plan or in any Award Agreement, no Option or other
purchase right granted under the Plan may be exercised, and no Shares may be
distributed pursuant to any Award granted under the Plan, prior to such
shareholder approval or prior to any required approval or consent from those
governmental agencies having jurisdiction in these matters. In the event such
shareholder or regulatory approval is not obtained, all Awards granted under the
Plan shall automatically be deemed void and of no effect. Absent additional
shareholder approval, (1) no Performance Award may be granted under the Plan
subsequent to the Company's Annual Meeting of Shareholders in 2004, (2) no
Performance Period for any Performance Award granted under the Plan may end
later than December 31, 2007 and (3) no other Award may be granted under the
Plan subsequent to March 16, 2009, except that Reload Options may be granted
pursuant to Reload Option Rights then outstanding.

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