Document:

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                                                                 EXHIBIT 10(A)

                         DISNEY SALARIED RETIREMENT PLAN

                   As Amended and Restated (February 2002)

                            Effective January 1, 1997

                                    ARTICLE 1

                                 PURPOSE OF PLAN

1.01        Type of Benefits

            The purpose of the Disney Salaried Retirement Plan is to provide
            retirement, health and welfare benefits for retired Participants and
            disability benefits for disabled Participants.

1.02        Restatement Date and Effective Date

            At the Restatement Date of January 1, 1988, the Plan amended,
            restated and merged the Predecessor Plans, and benefits payable
            under the Predecessor Plans are payable under the Plan, provided
            that persons who retired, died or terminated employment with an
            Employer prior to January l, 1988, shall receive benefits under the
            terms and conditions of the Predecessor Plans. The Plan is amended
            and restated herein effective as of January 1, 1997. The benefit
            payable to or on behalf of a Participant included under the Plan in
            accordance with the following provisions shall not be affected by
            the terms of any amendment to the Plan adopted after such
            Participant's employment terminates, unless the amendment expressly
            provides otherwise.

                                    ARTICLE 2

                                   DEFINITIONS
2.01        "Accrued Pension" means, as of any Determination Date, the normal
            retirement Pension, payable commencing on the Participant's Normal
            Retirement Date or immediately if the Participant has already
            attained his Normal Retirement Age, computed under Section 5.02 on
            the basis of the Participant's Past Service Months, Past Service
            Average Monthly Compensation, Average Monthly Compensation, Years of
            Benefit Service, Credited Years of Service and Credited Hours of
            Service to the Determination Date.

2.02        "Actuarial Equivalent", effective as of January 1, 1999, means the
            equivalent, payable in an alternate form, of a benefit payable in a
            normal form under the Plan as described in Section 5.02. Such
            equivalent shall be calculated as follows:

            (a)   For the purpose of  determining  alternate  forms of benefit
                  in  accordance  with  Sections  6.01,  6.02 and  7.01,  such
                  equivalent   shall  be  determined  using  (i)  the  Pension
                  Benefit    Guaranty    Corporation's    (PBGC's)    interest
                  assumptions  under Appendix B to 29 C.F.R. Part 2619 for the

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                  December 1  immediately  preceding the  Determination  Date,
                  and  (ii)  the  PBGC's  mortality  assumptions  for  healthy
                  participants  under Appendix A to 29 C.F.R.  Part 2619 using
                  a unisex  approach with a blend of 50% of the male mortality
                  rates and 50% of the female mortality rates.

            (b)   For  the  purpose  of  determining   lump  sum  payments  in
                  accordance  with Sections  6.01(c),  6.02(b) and 7.01,  such
                  equivalent  shall be  determined  using (i) an interest rate
                  equal to the annual  rate of  interest  on 30-year  Treasury
                  securities  for the month of September of the Plan Year (the
                  "Lookback  Month")  preceding  the Plan  Year in  which  the
                  Determination  Date for the benefit  occurs (the  "Stability
                  Period"),  or if the Determination  Date occurs in 1999, the
                  annual rate of interest on 30-year  Treasury  securities for
                  December  1998 if the  December  1998 rate  would  produce a
                  larger   distribution,   and   (ii)  the   mortality   table
                  prescribed by the Internal  Revenue  Service for purposes of
                  Code  Sections  415(b)(2)  and  417(e)(3) in Revenue  Ruling
                  95-6 or any successor thereto.

            (c)   For the purpose of  adjustments  to Code Section 415 benefit
                  limitations   in   accordance   with  Section   5.06,   such
                  equivalent  shall be determined using (i) if a Participant's
                  Pension  begins  before  age 62,  an  interest  rate of five
                  percent  (5%) per year,  else the annual rate of interest on
                  30-year  Treasury  securities  for the Lookback Month of the
                  Stability  Period,  and (ii) the mortality table  prescribed
                  by  the  Internal  Revenue  Service  for  purposes  of  Code
                  Sections  415(b)(2) and 417(e)(3) in Revenue  Ruling 95-6 or
                  any successor thereto.

            (d)   For periods prior to January 1, 1999, the following shall
                  apply as the definition of "Actuarial Equivalent":

                  "Actuarial Equivalent" means the equivalent, payable in an
                  alternate form, of a benefit payable in a normal form under
                  the Plan as described in Section 5.02. Such equivalent shall
                  generally be calculated based on the Pension Benefit Guaranty
                  Corporation's (PBGC's) interest assumptions under Appendix B
                  to 29 C.F.R. Part 2619 for the December 1 immediately
                  preceding the Determination Date (the assumptions shown in the
                  table in effect prior to November 1, 1993, and the assumptions
                  listed in Table I ("Lump Sum Valuations") for periods
                  beginning on and after November 1, 1993) and (a) prior to June
                  25, 1992, the PBGC's mortality assumptions for healthy
                  participants under Appendix A to 29 C.F.R., Part 2619 assuming
                  that all Participants are female and all Contingent Annuitants
                  and Beneficiaries are male and (b) on and after June 25, 1992,
                  the PBGC's mortality assumptions for healthy participants
                  under Appendix A to 29 C.F.R. Part 2619 using a unisex
                  approach with a blend of 50% of the male mortality rates and
                  50% of the female mortality rates. The Actuarial Equivalent as
                  of the Determination Date of a Participant's Accrued Pension
                  shall be equal to the greatest of:

                  (i)   In the event  the  Participant  has a Year of  Benefit
                        Service   prior  to  June  25,  1992,   the  Actuarial
                        Equivalent as of the  Determination  Date,  calculated
                        using  the  mortality  assumptions  described  in  (a)
                        above and the interest assumptions  described above as

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                        of  the   December   1   immediately   preceding   the
                        Determination  Date,  of  the  Participant's   Accrued
                        Pension as of June 24,  1992 (or date of  termination,
                        if earlier); or

                  (ii)  The Actuarial Equivalent as of the Determination Date
                        calculated using the mortality assumptions described in
                        (b) above and the interest assumptions described above
                        as of the December 1 immediately preceding the
                        Determination Date, of the Participant's Accrued Pension
                        as of the Determination Date (or date of termination, if
                        earlier).

                  Notwithstanding the foregoing, effective January 1, 1987, the
                  phrase "the first day of the Plan Year in which the
                  distribution occurs" shall be substituted for "the December 1
                  immediately preceding the Determination Date" with respect to
                  the calculation of a lump sum payment.

2.03        "Adjustment Factor" means the cost of living adjustment factors
            prescribed by the Secretary of the Treasury under Sections
            401(a)(17) and 415(d) of the Code applied to such items and in such
            manner as the Secretary shall provide.

2.04        "Affiliated Employer" means any company not participating in the
            Plan which is a member of a controlled group of corporations
            (determined under Section 1563(a) of the Code without regard to
            Section 1563(a)(4) and (e)(3)(C)) with The Walt Disney Company or
            any trade or business under common control (as defined in Section
            414(c) of the Code) with The Walt Disney Company, or a member of an
            affiliated service group (as defined in Section 414(m) of the Code)
            which includes The Walt Disney Company.

2.05        "Annuity Starting Date" means, with respect to a Participant,  the
            applicable of:

            (a)   The  first day of the  first  period  for which an amount is
                  payable as an annuity under the Plan, or

            (b)   Where the benefit is not payable in the form of an annuity,
                  the first day on which all events have occurred which entitle
                  the Participant to his benefit under the Plan.

2.06        "Associated Plans" means the Walt Disney Productions and Associated
            Companies' Retirement Plan, the Disneyland and Associated Companies'
            Retirement Plan, and the Walt Disney World Co. and Associated
            Companies' Retirement Plan. Prior to January 1, 1991, "Associated
            Plans" also includes the MAPO Retirement Plan as it existed prior to
            its January 1, 1991 merger with the Walt Disney Productions and
            Associated Companies' Retirement Plan.

2.07        "Average Monthly Compensation" means one-sixtieth of the sum of a
            Participant's Compensation over sixty consecutive calendar months
            within the one-hundred-twenty-month period preceding the month in
            which occurs the earliest of:

            (i)   he ceases being a Covered Employee; or

            (ii)  for a Participant whose benefits are determined because of
                  Breaks in Service before Normal Retirement Date, the month in
                  which his Break in Service begins.

            The sixty consecutive full calendar months selected must be those

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            that produce the highest average. If a Participant is an Employee
            for fewer than one-hundred twenty months, his sixty-month period for
            this subsection is determined within the period in which he was an
            Employee. If a Participant is an Employee for fewer than sixty
            consecutive full calendar months, his Average Monthly Compensation
            is his actual Compensation during a period of his completed full
            consecutive calendar months as an Employee, divided by the number of
            those consecutive months.

            A Participant's Average Monthly Compensation cannot exceed
            one-sixtieth of the average of his Compensation over sixty
            consecutive calendar months within the one-hundred-twenty-month
            period preceding the month in which he ceases being a Covered
            Employee or, for a Participant whose benefits are determined because
            of a Break in Service, preceding the month in which his Break in
            Service begins.

2.08        "Beneficiary" means any person, persons or entity, other than a
            Contingent Annuitant named by a Participant by written designation
            filed with the Company to receive benefits payable in the event of
            the Participant's death, provided that if the Participant is married
            and he designates other than his spouse as the Beneficiary, he
            obtains Spousal Consent. If any Participant fails to designate a
            Beneficiary, or if the Beneficiary designated by a deceased
            Participant died before him, then the Beneficiary shall be deemed to
            be the Participant's surviving spouse, or if none then the benefits
            will be paid in accordance with the following order of priority:

            (a)   the Participant's children (equally), or if none;

            (b)   the Participant's parents (equally), or if none;

            (c)   the  Participant's  brothers and sisters,  (equally),  or if
                  none;

            (d)   the Participant's estate.

2.09        "Board of  Directors"  means the  Board of  Directors  of The Walt
            Disney Company.

2.10        "Break in Service" means a Plan Year or other Eligibility
            Computation Period during which an Employee has been credited with
            less than 501 Hours of Service. Solely for the purpose of
            determining whether an Employee has incurred a Break in Service,
            Hours of Service shall also include hours granted, on the basis of
            forty-five (45) hours per week, for periods during which an Employee
            is on an approved Leave of Absence.

            If an Employee is absent from work because of such Employee's
            pregnancy, the birth of a child, placement of an adopted child, or
            caring for an adopted or natural child following birth or placement,
            the individual shall not be treated as having incurred a Break in
            Service in the Plan Year in which the absence begins or, if the
            individual would not otherwise have suffered a Break in Service
            during that Plan Year, in the next following Plan Year. The
            Committee may require that a Employee file a written request to
            receive Hours of Service credit under this paragraph. Unless
            otherwise determined by the Committee or an Employer's personnel
            practices, an Employee who is absent from work for the reasons
            described in this paragraph shall be deemed to have terminated
            employment for all purposes of this Plan other than the special
            Break in Service rule in this paragraph.

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2.11        "Code"  means  the  Internal  Revenue  Code of 1986,  as it may be
            amended from time to time.

2.12        "Committee" means the Committee appointed by the Board of Directors
            to administer the Plan in accordance with Article 8, and to have
            such additional powers as provided elsewhere in the Plan.

2.13        "Company" means The Walt Disney Company.

2.14        "Compensation" means an Employee's base pay (excluding overtime,
            bonuses, commissions, relocation reimbursement, stock options, or
            other extraordinary payments as determined by the Committee) paid
            during the calendar year by the Employer in return for the
            Employee's services. Compensation does not include:

            (a)   Employer contributions to any pension plan other than
                  contributions caused by an Employee's salary deferral
                  reduction pursuant to Section 401(k) of the Code;

            (b)   Employer  contributions  to this Plan or any  other  plan of
                  deferred compensation maintained by an Employer;

            (c)   Fringe benefits not taxable to the Employee;

            (d)   Payments  to or on  behalf of an  individual  after he is no
                  longer an Employee;

            (e)   Salary deferral  reductions pursuant to a Cafeteria Plan as
                  described in Section 125 of the Code;

            (f)   Imputed  life  insurance  and all  other  forms  of  imputed
                  income;

            (g)   For purposes of determining an Employee's benefits for service
                  after 1983, Earnings after the Employee ceased being a Covered
                  Employee for the last time and if he does not return to
                  Covered Employee status; and

            (h)   Any Compensation in lieu of unused vacation and/or sick pay.

            Compensation shall not, for Plan purposes, exceed the Maximum
            Compensation Limitation, or include amounts paid by an Employer
            prior to its acquisition by the Company.

2.15        "Contingent Annuitant" means a Participant's spouse, or other person
            designated in writing by a Participant, with Spousal Consent if
            necessary, to receive benefits under the Plan upon the death of the
            Participant where such benefit is payable in the form of an annuity
            with a remainder interest payable for the life of a Contingent
            Annuitant.

2.16        "Covered Employee" means an Employee who:

            (a)   Is  employed by an  Employer  in a  position,  division,  or
                  department  for which the Employer  provides  coverage under
                  the Plan;

            (b)   Receives Compensation in the form of a salary (as
                  distinguished from hourly-paid Employees), whether or not such
                  Employee is exempt for wage-and-hour-law purposes;

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            (c)   Is not a member of a collective-bargaining unit that has a
                  collective bargaining agent, unless the Board of Directors
                  specifically waives this requirement;

            (d)   Is not a Leased Employee;

            (e)   Is not a non-resident  alien with no U.S.  source income with
                  respect to the United States; and

            (f)   Is not covered by any agreement that precludes participation
                  in this Plan.

2.17        "Determination  Date"  means  the  date  as of  which  an  Accrued
            Pension or other benefit is calculated.

2.18        "Early Retirement Date" means the first day of the calendar month on
            or immediately after the later of the Participant's 55th birthday or
            his completion of five Years of Vesting Service.

2.19        "Effective  Date" means the January 1, 1997 effective date of this
            amended and restated Plan.

2.20        "Eligibility Computation Period," subject to the provisions of
            Appendices A and C, means, with respect to an Employee, the
            applicable of (a) or (b) as follows:

            (a)   A 12-consecutive-month period commencing on the Employee's
                  Employment Commencement Date in which he has been credited
                  with at least 1,000 Hours of Service; or

            (b)   In the case of an Employee who is not credited with at least
                  1,000 Hours of Service in the 12-month period described in
                  Section 2.20(a) above, a Plan Year, commencing with the Plan
                  Year beginning immediately following the Employee's Employment
                  Commencement Date, in which he has been credited with at least
                  1,000 Hours of Service.

2.21        "Eligible Employee" means a Covered Employee who has completed one
            Eligibility Computation Period. If a Covered Employee was hired
            after age sixty (60) but before January l, 1988, such individual is
            an Eligible Employee on the later of (i) January l, 1988, or (ii)
            when the individual completed one Eligibility Computation Period. An
            Employee is an Eligible Employee on the day before he satisfies the
            requirements of Article 3 of the Plan.

2.22        "Employee" means any person receiving compensation for services
            rendered to an Employer or an Affiliated Employer, whose
            compensation is subject to withholding of income tax and/or for whom
            Social Security contributions are made by an Employer or an
            Affiliated Employer, including any Leased Employee but excluding any
            person who serves solely as a director or independent contractor. In
            determining whether an individual is an Employee for purposes of the
            Plan, the individual shall only be classified as an Employee with
            respect to a period of time only if the Employer treated the
            individual as a common law employee for payroll tax purposes for
            such period of time, regardless of any later determination that such
            individual was or may have been a common law employee during such
            period. Notwithstanding the foregoing, a Leased Employee, although
            not treated as a common law employee for payroll tax purposes by an
            Employer, shall be considered an Employee under the Plan.

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            Employee excludes the following:

            (a)   an   individual   who  serves   solely  as  a  director   or
                  independent  contractor or an  individual  whom the Employer
                  regards to be an independent contractor;

            (b)   an individual who is not classified as an Employee by an
                  Employer, but who is treated as an Employee by reason of being
                  treated as a "common law" employee of the Employer pursuant to
                  the standards prescribed by Internal Revenue Service Ruling
                  87-41 or any successor thereto;

            (c)   an  individual  whose  basic  Compensation  for  services on
                  behalf of an Employer is not paid  directly by an  Employer;
                  and

            (d)   an individual working for a company providing goods or
                  services (including temporary employee services) to an
                  Employer whom the Employer does not regard to be a common law
                  employee of the Employer.

2.23        "Employer" means the Company and any subsidiary or affiliated
            company which, with the approval of the Company, adopts this Plan as
            described in Section 11.03.

2.24        "Employment Commencement Date" means the first date as of which an
            Employee is credited with an Hour of Service for an Employer or an
            Affiliated Employer, or (a) if earlier, the Employment Commencement
            Date effective date shown in Appendix A applicable to a Predecessor
            Employer provided the Employee's employment with such Predecessor
            Employer immediately preceded employment with an Employer or an
            Affiliated Employer, or (b) if later, the Employment Commencement
            Date effective date shown in Appendix A with respect to an
            Employee's period of employment prior to his Employer's adoption of
            this Plan.

2.25        "ERISA" means the Employee Retirement Income Security Act of 1974,
            as amended from time to time.

2.26        "Flat  Benefit"  means the Accrued  Pension  element  described in
            Section 5.02(b).

2.27        "Formula  Benefit" means the Accrued Pension element  described in
            Section 5.02(c).

2.28        "Hour  of  Service"   means,   with  respect  to  any   applicable
            computation period:

            (a)   Each hour for which an Employee is paid or is entitled to
                  payment for the performance of duties for an Employer or an
                  Affiliated Employer during the applicable computation period.

            (b)   Each hour for which an Employee  is paid,  or is entitled to
                  payment,  by  an  Employer  or  an  Affiliated  Employer  on
                  account of a period  during  which no duties  are  performed
                  (regardless  of  whether  the  employment  relationship  has
                  terminated)   because   of   vacation,   holiday,   illness,
                  incapacity  (including   disability),   layoff,  jury  duty,
                  uniformed  service  duty,  (as  required by federal or state
                  law), or leave of absence, but:

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                  (i)   no more than 501 Hours of Service are to be credited
                        under this subsection (b) to an individual for any
                        single continuous period during which he performs no
                        duties (whether or not the period occurs in a single
                        computation period);

                  (ii)  an hour is not credited where an individual is directly
                        or indirectly paid or is entitled to payment because of
                        a period during which no duties are performed if that
                        payment is made or is due under a plan maintained solely
                        for the purpose of complying with applicable worker's
                        compensation or unemployment compensation or disability
                        insurance laws; and

                  (iii) Hours of Service will not be credited for a payment that
                        solely reimburses an individual for medical or medically
                        related expenses incurred.

                  For purposes of this subsection (b), a payment is deemed to be
                  made by or be due from an Employer or an Affiliated Employer
                  regardless of whether it is made by or due from that entity
                  directly or indirectly through a trust fund or insurers (among
                  others) to which that entity contributes or pays premiums and
                  regardless of whether contributions made or due to the trust
                  fund or insurer or other funding vehicle are for the benefit
                  of particular individuals or are on behalf of a group of
                  individuals in the aggregate.

            (c)   An  Hour of  Service  is  each  hour  for  which  back  pay,
                  irrespective of mitigation of damages,  is either awarded or
                  agreed to by an Employer or  Affiliated  Employer.  The same
                  Hours of Service must not be credited both under  subsection
                  (a) or (b) and also under this  subsection  (c).  Thus,  for
                  example,   if  an  individual   receives  a  back-pay  award
                  following  a  determination  that he was paid at an unlawful
                  rate for Hours of  Service  previously  credited,  he is not
                  entitled  to  additional   credit  for  the  same  Hours  of
                  Service.   Crediting  of  Hours  of  Service  for  back  pay
                  awarded or agreed to with  respect to periods  described  in
                  subsection  (b) is subject to the  limitations  set forth in
                  that  subsection.  For  example,  no more  than 501 Hours of
                  Service are  required to be  credited  for  payments of back
                  pay,  to the  extent  that the back pay is awarded or agreed
                  to for a period of time during which an  individual  did not
                  or would not have performed duties.

            (d)   For  purposes  of  determining  Hours of Service for reasons
                  other than the  performance  of  duties,  the  special  rule
                  provided   in   29   C.F.R.   Section    2530.200b-2(b)   is
                  incorporated  by  reference.  That rule  provides that Hours
                  of Service are  credited on the basis of the number of hours
                  in the  individual's  regular work  schedule or, in the case
                  of a payment not  calculated  by units or time,  by dividing
                  the  payment in  question  by the  individual's  most recent
                  hourly rate of pay.

            (e)   For purposes of crediting Hours of Service to computation
                  periods, the special rule provided in 29 C.F.R. Section
                  2530.200b-2(c) is incorporated by reference. That rule
                  provides that Hours of Service are credited to an individual
                  in the computation periods covered by the individual's regular
                  work schedule during the period of nonperformance.

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            (f)   The determination of Hours of Service must be made from
                  records of hours worked and hours for which payment is made or
                  due.

            (g)   For purposes of determining Hours of Service credited each
                  Employee must be credited with at least forty-five Hours of
                  Service for each week for which he would be required to be
                  credited with at least one Hour of Service under Section
                  2.28(a).

            (h)   An Employee who has Leave of Absence due to uniformed service
                  duty shall receive Hours of Service credit in accordance with
                  applicable federal veteran's laws.

            (i)   Notwithstanding  the  foregoing,  to the extent  required by
                  federal or state law, an Employee  will  receive  credit for
                  each hour for which the Employee  would normally be credited
                  an Hour of Service  under the Plan but for a period of leave
                  for the birth,  adoption,  or placement of a child,  to care
                  for a  spouse  or  other  immediate  family  member  with  a
                  serious illness,  or for the Employee's own illness pursuant
                  to the  Family  and  Medical  Leave  Act  of  1993  and  its
                  regulations thereunder.

2.29        "Key Plan" means the Walt Disney Productions and Associated
            Companies' Key Employees Deferred Compensation and Retirement Plan,
            as amended from time to time.

2.30        "Leased Employee" means any person (other than a person treated as a
            common law employee by the Company, an Employer or an Affiliated
            Employer) who, pursuant to an agreement between the Company, an
            Employer or an Affiliated Employer and any other person ("leasing
            organization"), performed services for the Company, an Employer, an
            Affiliated Employer or any related persons determined in accordance
            with Section 414(n)(6) of the Code on a substantially full-time
            basis for a period of at least one year and such services are
            performed under the primary direction or control of the Company, an
            Employer or an Affiliated Employer.

            In the case of any person who is a Leased Employee before or after a
            period of service as a Covered Employee, the entire period during
            which he performed services as a Leased Employee shall be counted as
            service as a Covered Employee for all purposes of the Plan, except
            that he shall not, by reason of being a Leased Employee, become a
            Participant of the Plan.

2.31        "Leave of Absence" means an absence authorized by an Employer or an
            Affiliated Employer under its standard personnel practices as
            applied in a uniform and nondiscriminatory manner to all persons
            similarly situated, provided that the Employee resumes employment
            with the Employer or an Affiliated Employer within the period
            specified in the authorization of the Leave of Absence. An absence
            due to service in the uniformed services of the United States shall
            be considered an authorized Leave of Absence provided that the
            Employee complies with all of the requirements of federal law in
            order to be entitled to reemployment and provided further that the
            Employee returns to employment with an Employer or an Affiliated
            Employer within the period provided by such law. Notwithstanding the
            foregoing, Leave of Absence shall include any authorized leave

<PAGE>

            pursuant to the Family and Medical Leave Act of 1993 and the
            regulations thereunder.

2.32        "Maximum Compensation Limitation" means, effective on or after
            January 1, 1989, and before January 1, 1994, $200,000 per year. As
            of January 1 of each calendar year on and after January 1, 1990, and
            before January 1, 1994, the Maximum Compensation Limitation as
            determined by the Commissioner of Internal Revenue for the calendar
            year shall become effective as the Maximum Compensation Limitation
            taken into account for Plan purposes for the Plan Year beginning
            within that calendar year in lieu of the $200,000 limitation set
            forth above.

            Commencing January 1, 1994, the Maximum Compensation Limitation
            means $150,000 per year. If for any calendar year after 1994, the
            cost-of-living adjustment described in the following sentence is
            equal to or greater than $10,000, then the Maximum Compensation
            Limitation (as previously adjusted hereunder) for any Plan Year
            beginning in any subsequent calendar year shall be increased by the
            amount of such cost-of-living adjustment, rounded to the next lowest
            multiple of $10,000. The cost-of-living adjustment shall equal the
            excess of (i) $150,000 increased by the adjustment made under
            Section 415(d) of the Code for the calendar year, except that the
            base period for purposes of Section 415(d)(1)(A) of the Code shall
            be the calendar quarter beginning October 1, 1993, over (ii) the
            Maximum Compensation Limitation in effect for the Plan Year
            beginning in the calendar year.

2.33        "Motion  Picture Plan" means the Motion Picture  Industry  Pension
            Plan.

2.34        "Normal Retirement Age" means an Employee's 65th birthday.

2.35        "Normal Retirement Date" means the first day of the calendar month
            on or immediately after an Employee's Normal Retirement Age.

2.36        "Participant" means any person included for participation in the
            Plan as provided in Article 3 and who continues to be entitled to
            benefits under the Plan.

2.37        "Past Service Average Monthly Compensation" means one-sixtieth of
            the sum of a Participant's Compensation over sixty consecutive
            calendar months within the one-hundred-twenty-month period preceding
            May l, 1984. The sixty consecutive months selected must be those
            that produce the highest average. For purposes of this subsection,
            if a Participant is an Employee for fewer than one hundred twenty
            months before May l, 1984, his sixty-month period for this
            subsection is determined within the period before May l, 1984, in
            which he was an Employee. If a Participant is an Employee for fewer
            than sixty consecutive months before May l, 1984, his Past Service
            Average Monthly Compensation is his actual Compensation before May
            1, 1984, during his completed full consecutive calendar months as an
            Employee immediately before May l, 1984, divided by the number of
            those consecutive months.

2.38        "Past Service Month" means each month before May 1, 1984, for which
            an Employee who became a Participant on May l, 1984 is credited with
            any Hours of Service during a period uninterrupted by a separation
            from service and in which he was a Covered Employee, except that:

            (a)   A Participant who was eligible to participate in the Key Plan
                  and as of December 31, 1984, or earlier declined or is deemed
                  to have declined to participate in the Key Plan is not

<PAGE>

                  credited with Past Service Months;

            (b)   A Participant who was not eligible to participate in the Key
                  Plan but was eligible to participate in an Associated Plan and
                  declined or is deemed to have declined to participate in the
                  Associated Plans is not credited with Past Service Months for
                  periods before May l, 1984, in which he was not a participant
                  in the Motion Picture Plan; or

            (c)   A Participant who was eligible to participate in the Motion
                  Picture Plan, but not the Key Plan or an Associated Plan, and
                  declined the Motion Picture Plan, is not credited with Past
                  Service Months.

            (d)   Service after attainment of age 65 is disregarded. However,
                  effective January 1, 1988, for an Employee over age 65 and
                  still actively employed on January 1, 1988, service after age
                  65 shall be taken into account.

2.39        "Pension" means a Participant's  benefit under the Plan, generally
            payable in the form of an annuity.

2.40        "Plan" means the Disney Salaried Retirement Plan as set forth in
            this document, or as amended from time to time.

2.41        "Plan Year" means the calendar year.

2.42        "Postponed or Late Retirement Date" means the first day of the
            calendar month on or immediately after the date that a Participant
            terminates his employment with an Employer or an Affiliated Employer
            after his Normal Retirement Date.

2.43        "Predecessor Employer" means a company merged into, consolidated
            with or absorbed by an Employer, or where substantially all of the
            assets or business have been acquired by an Employer.

2.44        "Predecessor Plans" means the Disney Salaried Service Pension Plan
            and the Disney Salaried Supplemental Pension Plan, as they existed
            prior to January 1, 1988.

2.45        "Pre-May 1984 Service  Benefit" means the Accrued  Pension element
            described in Section 5.02(d).

2.46        "Post-April  1984  Service  Benefit"  means  the  Accrued  Pension
            element described in Section 5.02(e).

2.47        "Reemployment Commencement Date" means the date an Employee first is
            credited with an Hour of Service following a prior Break in Service.

2.48        "Restatement Date" means the effective date of the merger of the two
            Predecessor Plans, January l, 1988. The Predecessor Plans were
            originally effective as of May 1, 1984.

2.49        "Retirement  Date" means a Participant's  Normal  Retirement Date,
            Early Retirement Date or Late Retirement Date.

2.50        "Rule of Parity" means a rule pursuant to which a Participant who
            incurs a Break in Service shall have his Eligibility Computation
            Periods, Years of Vesting Service and Years of Benefit Service,

<PAGE>

            which occur prior to such Break in Service ignored or restored. If
            an Employee or Participant incurs a Break in Service and if he has
            no non-forfeitable Accrued Pension at the time of his Break in
            Service, his Eligibility Computation Periods prior to such Break in
            Service shall not be taken into account if the number of consecutive
            one year Breaks in Service equals or exceeds the greater of the
            Employee's or Participant's Eligibility Computation Periods
            completed prior to the first such Break in Service or five. If the
            preceding sentence would cause any Eligibility Computation Periods
            to be disregarded as of December 31, 1984 if that sentence's
            reference to five were ignored, such Eligibility Computation Periods
            shall also then be disregarded hereunder. Eligibility Computation
            Periods previously eliminated by a prior application of this
            paragraph shall not be counted for purposes of the preceding
            sentences. For purposes of computing Years of Vesting Service, the
            Rule of Parity shall be applied under the preceding sentences by
            substituting "Years of Vesting Service" for "Eligibility Computation
            Period" in each place it appears. For purposes of computing Years of
            Benefit Service, the Rule of Parity shall be applied under the
            preceding sentences by substituting "Years of Benefit Service" for
            "Eligibility Computation Periods" in each place it appears.

2.51        "Savings  Plan" means the Disney  Salaried  Savings and Investment
            Plan.

2.52        "Social Security Base" means the annual amount of wages specified as
            the maximum amount to be included in the determination of Employer
            contributions for old age, survivors and disability insurance under
            the provisions of the Federal Insurance Contributions Act at the
            time in effect.

2.53        "Social Security Retirement Age" means age 65 with respect to a
            Participant who was born before January 1, 1938; age 66 with respect
            to a Participant who was born after December 31, 1937 and before
            January 1, 1955; and age 67 with respect to a Participant who was
            born after December 31, 1954.

2.54        "Spousal Consent" means written consent given by a Participant's
            spouse to an election made by the Participant of a specified form of
            benefit or a designation by the Participant of a specified
            Contingent Annuitant or Beneficiary other than the spouse. The
            specified form or specified beneficiary, or Contingent Annuitant
            shall not be changed unless further Spousal Consent is given, unless
            the Spouse expressly waives the right to consent to any future
            changes. Spousal Consent shall be duly witnessed by a Plan
            representative or notary public and shall acknowledge the effect on
            the spouse of the Participant's election. The requirement for
            Spousal Consent may be waived by the Committee if it is established
            to its satisfaction that there is no spouse, or that the spouse
            cannot be located, or because of such other circumstances as may be
            established by applicable law. Spousal Consent shall be applicable
            only to the particular spouse who provides such consent.

2.55        "Transitional Participant" means an Employee who is a Participant in
            this Plan for part of this Plan's Plan Year and who is a participant
            in the Associated Plans or the Disney Associated Companies
            Retirement Plan for part of that same Plan Year, who is credited
            with 1,000 Hours of Service during that Plan Year, but who is not
            credited with a Year of Benefit Service for that Plan Year because
            of the exclusion in Section 2.59(b).

<PAGE>

2.56        "Trust Agreement" means the trust agreement or agreements that may
            be established from time to time hereunder and as the same may from
            time to time be amended and/or restated; provided that, to the
            extent the assets of this Plan are held pursuant to an annuity
            contract or other contract issued by an insurance company as
            provided in Section 401(f) of the Code, then the term "Trust
            Agreement" shall include such annuity contract or other contract.

2.57        "Trust Fund" means all money or other property which is held by the
            Trustee, pursuant to the terms of the Trust Agreement.

2.58        "Trustee" means the trustee acting under the Trust Agreement, or any
            other Trustee or Trustees designated in any trust agreement or
            agreements which may be established to carry out the purposes of
            this Plan, including any insurance company which is the issuer of an
            annuity or other contract qualifying as a Trust Agreement as defined
            in Section 2.56.

2.59        "Year of Benefit Service," subject to the provisions of Appendices A
            and C, means each Plan Year after December 31, 1983 for which a
            Participant is credited with at least 1,000 Hours of Service. In
            determining a Participant's Years of Benefit Service, the following
            are disregarded:

            (a)   service before 1984;

            (b)   service other than as a Covered Employee;

            (c)   service  prior to a  Participant's  Year of Benefit  Service
                  effective date, as shown in Appendices A and C;

            (d)   Years of Benefit  Service  ignored under the Rule of Parity;
                  and

            (e)   for purposes of determining a Participant's Flat Benefit only,
                  service during any period in which the Participant's
                  participation in the Motion Picture Plan or other
                  entertainment industry plan requires a contribution from the
                  Employers to that Plan.

            If a Participant was vested in his Accrued Pension when his Break in
            Service begins, his Years of Benefit Service before his Break in
            Service must be restored when he is reemployed by an Employer. A
            Participant who separates from service and returns without a Break
            in Service loses no Years of Benefit Services credited before his
            separation from service occurred. If a Participant who is not vested
            in his Accrued Pension separates from service and returns after a
            Break in Service, and if the Rule of Parity does not apply, his
            Credited Years of Benefit Service at the time he separated from
            service must be restored when he is reemployed by an Employer.

            Notwithstanding the foregoing, Years of Benefit Service shall
            include, to the extent required by law, any period of absence from
            service with the Employer due to a period of service in the
            uniformed services of the United States which is counted as years of
            Vesting Service as provided in Section 2.60(d) and which occurs
            after the date the Participant meets the eligibility requirements

<PAGE>

            for participation in the Plan. The Participant shall be deemed to
            have received Compensation during the period of absence at the rate
            he would have received had he remained employed as an Employee for
            that period or, if such rate is not reasonably certain, on the basis
            of the Participant's rate of earnings during the 12-month period
            immediately preceding such period of absence (or, if shorter, the
            period of employment immediately preceding such period).

2.60        "Year of Vesting Service," subject to the provisions of Appendices A
            and C, means, with respect to any Employee, a Plan Year (including
            calendar years prior to the Effective Date) in which the Employee
            has been credited with 1,000 or more Hours of Service, subject to
            the following:

            (a)   If his employment is terminated  and he is later  reemployed
                  by an  Employer  or an  Affiliated  Employer  after  he  has
                  incurred  one or  more  Breaks  in  Service,  his  Years  of
                  Vesting Service after  reemployment shall be aggregated with
                  his  prior  Years of  Vesting  Service  provided  (i) he was
                  previously  vested in his Accrued Pension,  or (ii) the Rule
                  of Parity does not apply,  and he is credited  with at least
                  one Year of Vesting  Service  after his return to employment
                  with an Employer or Affiliated Employer;

            (b)   Service with a Predecessor Employer shall count as Years of
                  Vesting Service only to the following extent:

                  (i)   If an Employer  continues to maintain a qualified plan
                        sponsored by such Predecessor Employer; or

                  (ii)  If, and to the extent, employment with the Predecessor
                        Employer is required to be treated as Years of Vesting
                        Service under applicable law; or

                  (iii) If, and to the extent, granted by the Board of Directors
                        and/or to the extent service with the Predecessor
                        coincides with or postdates the Year of Vesting Service
                        effective date applicable to the Participant and as
                        shown in Appendix A.

            (c)   Service with any other Predecessor Employer or an Affiliated
                  Employer shall not count unless required by law or unless
                  determined by the Board of Directors;

            (d)   If the Employee shall have been absent from the service of an
                  Employer or an Affiliated Employer because of service in the
                  uniform services of the United States and if he shall have
                  returned to the service of an Employer or Affiliated Employer
                  having applied to return while his reemployment rights were
                  protected by law, that absence shall be included in his Years
                  of Vesting Service;

            (e)   If the Employee is on a Leave of Absence, the Company in a
                  uniform and non-discriminatory manner may authorize the
                  inclusion in his Years of Vesting Service of any portion of
                  that period of leave which is not included in his Years of
                  Vesting Service under (d) above;

            (f)   For purposes of determining a Participant's  vested interest
                  in his Accrued  Pension  attributable  to his service before

<PAGE>

                  May 1, 1984,  each  Participant's  Years of Vesting  Service
                  shall not be less than one Year of Vesting  Service for each
                  twelve  months  during the  period  ending on May 1, 1984 in
                  which he was a Covered  Employee  without a separation  from
                  service,  nor are  they  less  than  his  years  of  vesting
                  service  under  the  Associated  Plans  (as  defined  in the
                  Associated  Plans)  nor are  they  less  than  his  years of
                  vesting  service  under the Motion  Picture Plan (as defined
                  in the Motion Picture Plan),  provided he was an Employee of
                  an Employer during such period;

            (g)   Notwithstanding any other provision to the contrary, this Plan
                  will not recognize Hours of Service accrued while the Employee
                  is a participant of another plan of the Employer, if the
                  Participant failed to make the required contributions under
                  the terms of that Plan; and

            (h)   Service with an Employer prior to the Employer's adoption of
                  this Plan shall be considered as Vesting Service to the extent
                  provided in Appendix A and to the extent such service
                  coincides with or postdates the Year of Vesting Service
                  effective date applicable to the Participant and as shown in
                  Appendix A.

                                    ARTICLE 3

                          ELIGIBILITY AND PARTICIPATION

3.01        Eligibility

            Only Eligible Employees may participate in this Plan.

3.02        Participation and Participation in a Qualified Pension Plan

            An Employee who was a Participant prior to the Restatement Date
            shall remain a Participant thereafter provided that he remains an
            Eligible Employee. An Employee who becomes an Eligible Employee in
            accordance with Section 2.21 of the Plan shall become a Participant
            as of the first day of the month after he meets such eligibility
            requirements. Notwithstanding the foregoing, no Employee who is an
            active participant in any Qualified Pension Plan shall be eligible
            to participate in this Plan. If any Participant of this Plan who
            remains an Eligible Employee hereunder also becomes eligible to
            participate in a Qualified Pension Plan, he shall elect either to
            remain in the Plan and not participate in such Qualified Pension
            Plan or to participate therein and terminate his active
            participation hereunder. Unless an Employee affirmatively elects to
            actively continue to participate in the Plan, he will be deemed to
            have elected to participate in the Qualified Pension Plan. If such
            Employee terminates active participation hereunder, he shall be
            treated as a transferred Participant under the provisions of Section
            3.04. For purposes of this Section 3.02, "Qualified Pension Plan"
            means any Associated Plan and any other defined benefit plan other
            than the Plan which is designed to qualify under Section 401 of the
            Code or any successor provision to such section pursuant to which
            the Company, an Employer or an Affiliated Employer makes
            contributions.

3.03        Reemployment of Former Employees and Former Participants

<PAGE>

            Any person reemployed by an Employer as an Eligible Employee who was
            previously a Participant shall be immediately eligible to become a
            Participant in the Plan, if previously vested under the provisions
            of Section 5.05. If such Employee was not vested under the
            provisions of Section 5.05 and is rehired within five (5) years,
            such Employee shall immediately become a Participant on his
            Reemployment Commencement Date.

3.04        Transferred Participants

            A Participant who remains in the employ of an Employer or an
            Affiliated Employer, but ceases to be an Eligible Employee, shall
            continue to be a Participant in the Plan, but shall not accrue
            benefits under the Plan while his employment status is other than as
            an Eligible Employee. Pension benefits under this Plan are frozen as
            of the date of transfer and consider only Years of Benefit Service
            while an Eligible Employee under this Plan. Pensions earned under
            other Company sponsored defined benefit plans will be paid under the
            terms of those plans. Vesting Years of Service will continue to
            accumulate under this Plan if the Participant remains in the employ
            of the Company, an Employer or an Affiliated Employer, but only if
            the Participant makes required contributions under any other
            qualified plan under which he may become covered on account of
            employment with any such employer.

3.05        Termination of Employment and Termination of Participation

            Under this Plan, termination of employment occurs on the date an
            Employee is no longer employed with an Employer or an Affiliated
            Employer. An Eligible Employee's participation in the Plan shall
            terminate on the date he terminates employment, unless the
            Participant is entitled to benefits under the Plan, in which event
            his participation shall terminate when those benefits have been
            distributed to him.
                                    ARTICLE 4

                                  CONTRIBUTIONS

4.01        Employer Contributions

            Each Employer shall, make such contributions to the Plan which are
            sufficient, on an actuarial basis approved by the Committee, to fund
            the cost of the benefits provided hereunder for the Participants.

4.02        Return of Contributions

            (a)   If all or part of an  Employer's  deductions  under  Section
                  404  of  the  Code  for   contributions   to  the  Plan  are
                  disallowed by the Internal Revenue  Service,  the portion of
                  the contributions to which that  disallowance  applies shall
                  be returned to the applicable  Employer(s)  without interest
                  but reduced by any  investment  loss  attributable  to those
                  contributions.  The  return  shall be made  within  one year
                  after the disallowance of deduction.

            (b)   An Employer may recover without interest the amount of its
                  contributions to the Plan made on account of a mistake of
                  fact, reduced by any investment loss attributable to those
                  contributions, if recovery is made within one year after the

<PAGE>

                  date of those contributions.

4.03        No Participant Contributions

            Except for contributions made under the Predecessor Plans,
            Participants are not required or permitted to make contributions to
            this Plan.

4.04        No Rollover Contributions

            A Participant shall not be permitted to transfer or roll over to the
            Trust Fund any portion of his distribution from any other qualified
            plan, non-qualified plan, or individual retirement annuity or
            account.

                                    ARTICLE 5

                               RETIREMENT BENEFITS

5.01        Accrued Pension

            (a)   A Participant's  Accrued Pension is a benefit that begins at
                  his Normal  Retirement Date and is payable over the lifetime
                  of the  Participant.  It  includes  benefits  accrued  under
                  this Plan  attributable  to Employer  contributions  to this
                  Plan (and certain  Employee  Contribution  Accrued  Benefits
                  attributable  to buy-backs as described in Section  5.02(g))
                  and  benefits   accrued  before  May  1,  1984,   under  the
                  Associated Plans attributable to Employer  contributions and
                  Employee  contributions   transferred  to  this  Plan  under
                  Section 7.03(b) of the Predecessor Plans.

            (b)   The value of a Participant's Accrued Pension is based on his
                  normal retirement Pension as defined in Section 5.02(a)
                  computed as accrued under the appropriate accrual rule, as
                  determined by the Committee, under Section 411(b)(1) of the
                  Code.

            (c)   A Participant's Accrued Pension (computed as if payable
                  annually or computed on a twelve-month basis) never exceeds
                  the greatest amount allowable under the limitations described
                  in Section 5.06.

            (d)   The right of a Participant to his Normal Retirement Benefit
                  shall be fully vested and non-forfeitable as of his Normal
                  Retirement Age provided the Participant is actually employed
                  by an Employer or an Affiliated Employer on such date.

5.02        Normal Retirement Pension

            (a)   Subject to the provisions of Appendix D, a Participant's
                  normal retirement Pension is his Accrued Pension determined as
                  of his Normal Retirement Age as a monthly income for the
                  Participant's life equal to the sum of:

                  (i)   the Flat Benefit element described in Section 5.02(b),
                        which element is subject to the special make-whole rules
                        in Section 5.02(f) and the special withdrawal and
                        buy-back rules in Section 5.02(g);

                  (ii)  the  Formula  Benefit  element  described  in  Section
                        5.02(c);

<PAGE>

                  (iii) the Pre-May  1984  Service  Benefit  element  (accrued
                        before May l, 1984) described in Section 5.02(d); and

                  (iv)  the Post-April 1984 Service Benefit element (accrued
                        after April 30, 1984) described in Section 5.02(e).

                  Prior to January l, 1988 a Participant's Normal Retirement
                  Pension could not exceed the Accrued Pension that would be
                  provided for him if he separated from service at Normal
                  Retirement Age.

            (b)   The Flat Benefit element is the monthly benefit corresponding
                  to his Credited Hours of Service and Credited Years of Service
                  according to the following table:
<TABLE>
<CAPTION>
      <S>                    <C>                          <C>

      Credited                    Credited                  Monthly
      Years of                    Hours of                  Benefit
      Service                     Service                   Amount

        1                      1,500 - 2,250                 $20.00
        1                      2,251 or more                  30.00
        2                      3,000 - 3,750                  40.00
        2                      3,751 or more                  50.00
        3                      4,500 - 5,250                  60.00
        3                      5,251 or more                  70.00
        4                      6,000 - 6,750                  80.00
        4                      6,751 or more                  90.00
        5                      7,500 - 8,250                 100.00
        5                      8,251 or more                 110.00
        6                      9,000 -  9,750                120.00
        6                      9,751 or more                 130.00
        7                     10,500 - 11,250                140.00
        7                     11,251 or more                 150.00
        8                     12,000 - 12,750                160.00
        8                     12,751 or more                 170.00
        9                     13,500 - 14,250                180.00
        9                     14,251 or more                 190.00
       10                     15,000 - 15,749                200.00
       10                     15,750 or more                 210.75
       11                     16,500 - 17,240                221.50
       11                     17,250 or more                 232.25
       12                     18,000    - 18,749             243.00
       12                     18,750  or more                253.75
       13                     19,500 - 20,249                264.50
       13                     20,250  or more                275.25
       14                     21,000 - 21,749                286.00
       14                     21,750 or more                 296.75
       15                     22,500 - 23,249                307.50
       15                     23,250 or more                 318.25
       16                     24,000 - 24,749                329.00
       16                     24,750 or more                 339.75
       17                     25,500 - 26,249                350.50
       17                     26,250 or more                 361.25
       18                     27,000 - 27,749                372.00
       18                     27,750 or more                 382.75
       19                     28,500 - 29,249                393.50
       19                     29,250 or more                 404.25
       20                     30,000 - 30,749                415.00
       20                     30,750 or more                 426.75
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
      <S>                    <C>                          <C>
       21                     31,500 - 32,249                438.50
       21                     32,250 or more                 450.25
       22                     33,000 - 33,749                462.00
       22                     33,750 or more                 473.75
       23                     34,500 - 35,249                485.50
       23                     35,250 or more                 497.25
       24                     36,000 - 36,749                509.00
       24                     36,750 or more                 520.75
       25                     37,500 - 38,249                532.50
       25                     38,250 or more                 544.25
       26                     39,000 - 39,749                556.00
       26                     39,750 or more                 567.75
       27                     40,500 - 41,249                579.50
       27                     41,250 or more                 591.25
       28                     42,000 - 42,749                603.00
       28                     42,750 or more                 614.75
       29                     43,500 - 44,249                626.50
       29                     44,250 or more                 638.25
       30 or more             45,000 or more                 650.00

</TABLE>
                  (i)   For purposes of this Section 5.02(b),  a Participant's
                        Credited  Hours  of  Service  and  Credited  Years  of
                        Service  are  equal  to the  sum of (A)  his  Credited
                        Hours of Service and Credited  Years of Service before
                        May 1, 1984,  under the Associated Plans and (B) after
                        1983, a Credited  Year of Service is granted for every
                        year in which he is  credited  with a Year of  Benefit
                        Service,  and his Credited  Hours of Service equal his
                        Hours of Service in such Years of Benefit Service.

                  (ii)  For purposes of this Section 5.02(b) only, if a
                        Transitional Participant does not earn a Year of Benefit
                        Service under this Plan for any Plan Year after 1983 in
                        which he is a Transitional Participant and does not earn
                        a year of benefit service for such year under any other
                        Company sponsored qualified defined benefit plan to
                        which he may be transferred, then he may be deemed to
                        have completed a Year of Benefit Service under this Plan
                        for the year of transfer in accordance with uniform
                        rules adopted by the Committee.

                  (iii) A Participant is not entitled to a Flat Benefit under
                        this Plan if such Flat Benefit duplicates a benefit to
                        which he is entitled under the Associated Plans, the
                        Disney Associated Companies Retirement Plan, the Motion
                        Picture Plan or any entertainment industry plan to which
                        the Employers have made contributions.

                  (iv)  A Participant is not entitled to a Flat Benefit under
                        this subsection to the extent that it duplicates his
                        make-whole benefit described in Section 5.02(f).

                  (v)   If a  Participant  has less than the lowest  number of
                        Credited  Hours of  Service  set  forth  opposite  his
                        number  of  Credited  Years of  Service  in the  above
                        table,  his Flat Benefit is equal to the lower benefit
                        set  forth  opposite  his  Credited  Years of  Service
                        times  a  fraction,  the  numerator  of  which  is the
                        Participant's   Credited  Hours  of  Service  and  the
                        denominator   of  which  is  that  lowest   number  of
                        Credited  Hours of  Service  set  forth  opposite  the
                        Participant's number of Credited Years of Service.

<PAGE>

            (c)   The Formula Benefit element is a monthly benefit calculated by
                  adding the products of the following formulas:

                  (i)   the Participant's Past Service Months multiplied by
                        one-twelfth of the value resulting from adding
                        sixty-five hundredths percent (0.65%) of his Average
                        Monthly Compensation to twenty-five thousandths percent
                        (0.025%) of his Average Monthly Compensation that is
                        greater than $2,500; plus

                  (ii)  the Participant's Years of Benefit Service multiplied by
                        the value resulting from adding fifty-five hundredths
                        percent (0.55%) of his Average Monthly Compensation to
                        twenty-five thousandths percent (0.025%) of his Average
                        Monthly Compensation that is greater than $2,500.

                  A Participant's Formula Benefit cannot be greater than the
                  amount that would yield the maximum percentage in the Special
                  Limitation Table below, corresponding to twelve times his
                  Average Monthly Compensation if his Formula Benefit was added
                  to his accrued benefits under the Associated Plans, the Disney
                  Associated Companies' Retirement Plan, Sections 5.02(d) and
                  5.02(e) of the Plan, the Motion Picture Plan and this Plan's
                  Flat Benefit, and related to twelve times his Average Monthly
                  Compensation. A Participant's Formula Benefit is zero if his
                  accrued benefits under the Associated Plans, the Disney
                  Associated Companies' Retirement Plan, the Plan's Sections
                  5.02(d) and 5.02(e), the Motion Picture Plan, and this Plan's
                  Flat Benefit equal or exceed his maximum percentage in the
                  following Special Limitation Table:
<TABLE>
<CAPTION>
       <S>                                        <C>

                            SPECIAL LIMITATION TABLE

        Twelve Times Average                       Maximum
        Monthly Compensation                      Percentage

           Less than $21,000.00                       60%
         21,000    -  21,999.99                       61
         22,000    -  22,999.99                       62
         23,000    -  23,999.99                       63
         24,000    -  24,999.99                       64
         25,000    -  25,999.99                       65
         26,000    -  26,999.99                       66
         27,000    -  27,999.99                       67
         28,000    -  28,999.99                       68
         29,000    -  29,999.99                       69
         30,000    -  30,999.99                       70
         31,000    -  31,999.99                       71
         32,000    -  32,999.99                       72
         33,000    -  33,999.99                       73
         34,000    -  34,999.99                       74
         35,000    -  35,999.99                       75
         36,000    -  36,999.99                       76
         37,000    -  37,999.99                       77
         38,000    -  38,999.99                       78
         39,000    -  39,999.99                       79
         40,000    -  40,999.99                       80
         41,000    -  41,999.99                       81
         42,000    -  42,999.99                       82
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
       <S>                                        <C>
         43,000    -  43,999.99                       83
         44,000    -  44,999.99                       84
         45,000      and over                         85
</TABLE>

            (d)   The Pre-May 1984 Service Benefits element is the Participant's
                  Past Service Months multiplied by one-twelfth of the value
                  resulting from adding one and fifteen hundredths percent
                  (1.15%) of his Past Service Average Monthly Compensation to
                  thirty-five hundredths percent (0.35%) of his Past Service
                  Average Monthly Compensation that is greater than $2,500.

            (e)   The Post-April 1984 Service Benefits element is the
                  Participant's Years of Benefit Service multiplied by the value
                  resulting from adding one percent of his Average Monthly
                  Compensation to thirty-five hundredths percent (0.35%) of his
                  Average Monthly Compensation that is greater than $2,500.

            (f)   This Section 5.02(f) defines a make-whole benefit considered
                  to be part of a Participant's Flat Benefit if it results in a
                  payment from this Plan.

                  (i)   If an Employee's  transfer has the effect of requiring
                        him to  become a  participant  in the  Motion  Picture
                        Plan and ceasing to be a Participant  in this Plan for
                        purposes  of  accruing  his  Flat  Benefit  or has the
                        effect of his becoming a Participant  in this Plan and
                        ceasing  to be a  participant  in the  Motion  Picture
                        Plan,   his  total   benefits  under  this  Plan,  the
                        Associated  Plans,  the  Disney  Associated  Companies
                        Retirement  Plan and the Motion  Picture Plan must not
                        be less than those that he would have  received  under
                        this Plan,  the Motion  Picture Plan,  the  Associated
                        Plans,  the  Disney  Associated  Companies  Retirement
                        Plan  had  he  not  been  so   required  to  become  a
                        participant   in  the   Motion   Picture   Plan  or  a
                        Participant  in this Plan,  as the case may be. If the
                        total benefits  otherwise payable under such plans are
                        less  than  those  that  the  Participant  would  have
                        received  had  he  not  been   required  to  become  a
                        participant  in the  Motion  Picture  Plan  or that he
                        would  have  received  had he  not  been  required  to
                        become a  Participant  in this Plan,  his Flat Benefit
                        under  this  Plan  is  the  excess  of  (A) a  benefit
                        calculated  under  this  Plan as  though  all Hours of
                        Service as an Employee  while he was a participant  in
                        the  Motion   Picture  Plan  were  Credited  Hours  of
                        Service,  over (B) the  portion of the  benefit  under
                        the Motion Picture Plan,  other  Associated  Plans and
                        the  Disney  Associated   Companies'  Retirement  Plan
                        attributable   to  service  as  an   Employee.   If  a
                        Participant  otherwise  entitled  to the  benefits  of
                        this  Plan   Section   5.02(f)   either   refuses   to
                        participate  in the  Motion  Picture  Plan or,  having
                        become  a   participant   in  that  plan   voluntarily
                        withdraws  from  that  plan  at a time  when  he has a
                        vested  interest in that plan,  he forfeits his rights
                        under this Section.

                  (ii)  If a Participant in this Plan has transferred from the
                        Motion Picture Plan pursuant to an open enrollment for
                        that purpose: (A) solely for the purpose of applying the

<PAGE>

                        rule in Section 5.02(b)(l), he is credited with a
                        Credited Year of Service for each of the Associated
                        Plans' Plan Years during which he completed at least 750
                        Hours of Service for that year as an Employee while he
                        was a Participant in the Motion Picture Plan; (B) he is
                        credited with a Vesting Credit for each vesting
                        computation period during which he completed Hours of
                        Service as an Employee while he was a Participant in the
                        Motion Picture Plan; and (C) solely for the purpose of
                        determining his eligibility for the benefits described
                        in Section 5.04 and Sections 7.03 and 7.04, his Hours of
                        Service as an Employee under the Motion Picture Plan are
                        deemed to be Credited Hours of Service.

            (g)   A  Participant  who ceases to be a Covered  Employee and who
                  does not become a  Participant  in the  Associated  Plans or
                  the Disney Associated  Companies'  Retirement Plan may elect
                  to  receive  a  lump-sum   payment  that  is  equal  to  his
                  accumulated  contributions  as  defined  in  the  Associated
                  Plans or the Disney Associated  Companies'  Retirement Plan.
                  That payment must be made to the  Participant  within ninety
                  days  after   receipt  of  his   election  in   writing.   A
                  Participant's  benefits  distributed  from  this  Plan  must
                  always be at least  equal to his  accumulated  contributions
                  as defined in the Associated Plans or the Disney  Associated
                  Companies' Retirement Plan and, if necessary,  the Committee
                  must  direct  a  distribution   in   satisfaction   of  that
                  liability.  If a  Participant  does not have  nonforfeitable
                  accumulated  contributions  as  defined  in  the  Associated
                  Plans or the Disney  Associated  Companies'  Retirement Plan
                  and  he  does  not   elect  to   receive   his   accumulated
                  contributions  as  defined  in the  Associated  Plans or the
                  Disney Associated  Companies' Retirement Plan, the Committee
                  must  direct that he be paid his  accumulated  contributions
                  as defined in the Associated Plans or the Disney  Associated
                  Companies'  Retirement Plan following his fifth  consecutive
                  one-year  Break in Service.  The  benefits of a  Participant
                  who receives a distribution  under this subsection are based
                  on the  Plan  as in  effect  on the  date  as of  which  the
                  distribution  is made to him.  A  Participant  may  elect to
                  receive  his  accumulated  contributions  as  defined in the
                  Associated  Plans  or  the  Disney   Associated   Companies'
                  Retirement  Plan  and  payment  must be  made to him  within
                  ninety  days  after  receipt  of  his  written  election.  A
                  Participant's   election   to   withdraw   his   accumulated
                  contributions  as  defined  in the  Associated  Plans or the
                  Disney  Associated  Companies'  Retirement  Plan pursuant to
                  this   subsection   does  not  affect  his  Accrued  Pension
                  attributable to employer contributions.  Notwithstanding the
                  above,  for  Employees  with an Hour of  Service on or after
                  August 23, 1984,  the payment of  accumulated  contributions
                  must be in the  form  provided  in  Section  6.01  unless  a
                  Spousal  Consent  authorizing  a lump sum is filed  with the
                  Committee.  For  purposes  of this  subsection,  accumulated
                  contributions  shall  be  defined  in  accordance  with  the
                  Associated  Plans  or  the  Disney   Associated   Companies'
                  Retirement Plan.

            (h)   Notwithstanding the preceding provisions of this Section 5.02,
                  a Participant's normal retirement Pension shall not be less
                  than the sum of:

<PAGE>

                  (i)   His OBRA 1993 Accrued Pension; and

                  (ii)  His Accrued Pension determined as of his Normal
                        Retirement Date using Years of Benefit Service and
                        Compensation earned on and after January 1, 1994. For
                        purposes of this subparagraph (2), the Participant's
                        Compensation in each of the relevant years shall not
                        exceed the $150,000 Maximum Compensation Limitation (as
                        adjusted in accordance with Section 2.32) in effect on
                        and after January 1, 1994.

                  (iii) The following definitions apply to the terms used in
                        this Section 5.02(h).

                        (A)   "OBRA 1988 Accrued Pension" means the
                              Participant's Accrued Pension determined as if the
                              Participant terminated employment on December 31,
                              1988 (or date of termination, if earlier).

                        (B) "OBRA 1993 Accrued Pension" means the greater of:

                              (1)   The Participant's Accrued Pension,
                                    determined using all Years of Benefit
                                    Service and Compensation earned prior to
                                    December 31, 1993, multiplied by the OBRA
                                    1993 Fraction. For purposes of this
                                    subparagraph (A), the Participant's
                                    Compensation in each of the relevant years
                                    shall not exceed the $200,000 Maximum
                                    Compensation Limitation (as adjusted in
                                    accordance with Section 2.32) in effect
                                    prior to January 1, 1994; or

                              (2)   The sum of (I) and (II) below:

                                    (I)   The Participant's  OBRA 1988 Accrued
                                          Pension  multiplied by the OBRA 1988
                                          Fraction;

                                    (II)  The Participant's Accrued Pension,
                                          determined using Years of Benefit
                                          Service and Compensation earned after
                                          December 31, 1988, and prior to
                                          December 31, 1993, multiplied by the
                                          OBRA 1993 Fraction. For purposes of
                                          this subparagraph (B)(II), the
                                          Participant's Compensation in each of
                                          the relevant years shall not exceed
                                          the $200,000 Maximum Compensation
                                          Limitation (as adjusted in accordance
                                          with Section 2.32) in effect prior to
                                          January 1, 1994.

                        (C)   "OBRA 1988 Fraction" means a fraction,  not less
                              than  1,   the   numerator   of   which  is  the
                              Participant's  Average  Monthly  Compensation as
                              of  his  Normal  Retirement  Date,  taking  into
                              account  the   $150,000   Maximum   Compensation
                              Limitation  (as  adjusted  in  accordance   with
                              Section  2.32) in effect on and after January 1,
                              1994,  and  the  denominator  of  which  is  the

<PAGE>

                              Participant's  Average  Monthly  Compensation as
                              of  December  31,  1988,  determined  as if  the
                              Participant   had   terminated   employment   on
                              December   31,  1988  (or  his  actual  date  of
                              termination,  if earlier), and without regard to
                              the Maximum Compensation Limitation.

                        (D)   "OBRA 1993 Fraction" means a fraction,  not less
                              than   1,   the    numerator    of   which   the
                              Participant's  Average  Monthly  Compensation as
                              of  his  Normal  Retirement  Date,  taking  into
                              account  the   $150,000   Maximum   Compensation
                              Limitation  (as  adjusted  in  accordance   with
                              Section  2.32) in effect on and after January 1,
                              1994,  and  the  denominator  of  which  is  the
                              Participant's  Average  Monthly  Compensation as
                              of  December  31,  1993,  determined  as if  the
                              Participant   had   terminated   employment   on
                              December   31,  1993  (or  his  actual  date  of
                              termination,  if  earlier),  taking into account
                              the  $200,000  Maximum  Compensation  Limitation
                              (as adjusted in  accordance  with Section  2.32)
                              in effect prior to January 1, 1994.

5.03        Early or Late Retirement

            (a)   A Participant who has not reached his Normal Retirement Date
                  but who has reached an Early Retirement Date may retire from
                  service on an Early Retirement Date and commence to receive an
                  early retirement Pension as of the first day of the calendar
                  month after he submits to the Committee a written application
                  for retirement benefits and after he separates from service.

            (b)   Unless  the   Participant   otherwise   elects,   the  early
                  retirement  Pension shall be a deferred Pension beginning on
                  the  Participant's  Normal  Retirement Date and,  subject to
                  the  provisions  of  Section  6.01,  shall  be  equal to his
                  Accrued  Pension.  However,  the  Participant  may  elect to
                  receive an early retirement  Pension  beginning on the first
                  day of any calendar  month on or after his Early  Retirement
                  Date but before his Normal  Retirement  Date.  In that case,
                  the  Participant's  Pension  shall be equal to the  deferred
                  Pension  reduced by 1/180th  for each of the first 60 months
                  and  1/360th  for each of the next 60  months  by which  the
                  date  the  Participant's  early  retirement  Pension  begins
                  precedes his Normal Retirement Date.

                  Notwithstanding the foregoing, the Pension payable under this
                  Section 5.03(b) for any Participant who retires from service
                  after completing twenty-five Years of Vesting Service (but
                  only considering Vesting Service accumulated while in an
                  employment classification providing eligibility for
                  participation in this Plan or any of the Associated Plans)
                  shall not be less than his Accrued Pension as of February 28,
                  1994, reduced by 5% for each year by which the date the
                  Participant's early retirement Pension begins precedes the
                  first day of the calendar month coincident with or next
                  following the Participant's sixty-second birthday, with a
                  pro-rata reduction for any portion of a year.

            (c)   If a Participant retires on a Late Retirement Date or
                  otherwise postpones his retirement Pension, he shall commence
                  to receive a late retirement Pension as of the earlier of the
                  first day of the calendar month after his actual Retirement
                  Date or the date that he is required by law to commence

<PAGE>

                  receiving payment of his benefit as provided in Section
                  6.04(b).

            (d)   A  late  retirement  Pension  which  commences  following  a
                  Participant's  actual Retirement Date shall,  subject to the
                  provisions   of  Section   6.01,  be  equal  to  the  amount
                  determined in  accordance  with Section  5.02(a) but,  where
                  applicable,   based  on  the   Participant's   Compensation,
                  Average Monthly  Compensation,  Past Service Average Monthly
                  Compensation,  Credited Years of Service,  Credited Hours of
                  Service,  Years of Benefit Service,  and Past Service Months
                  through his Late Retirement Date.

            (e)   A  late  retirement  Pension  which  commences  prior  to  a
                  Participant's   Retirement   Date  in  accordance  with  the
                  requirements  of  Section  6.04(b)  shall be  calculated  in
                  accordance  with  Section  5.03(d)  above,  except  that the
                  benefit  shall  be  calculated  based  on the  Participant's
                  Compensation,  Average  Monthly  Compensation,  Past Service
                  Average  Monthly  Compensation,  Credited  Years of Service,
                  Credited Hours of Service,  Years of Benefit  Service,  Past
                  Service  Months  through  the  last  day  of the  Plan  Year
                  preceding  the date that benefits are to commence to be paid
                  or adjusted rather than as of his Late  Retirement  Date. In
                  addition,  the amount of Pension to which a  Participant  is
                  entitled  under  the Plan  shall be  recalculated  annually,
                  during the period that the  Participant is still employed by
                  an  Employer  or an  Affiliated  Employer,  as of the end of
                  each  Plan  Year  with the  amount  of  benefit  being  paid
                  adjusted as of the first day of the following Plan Year.

                  Notwithstanding the foregoing, the Pension payable under this
                  Section 5.03(b) for any Participant who retires from service
                  after completing twenty-five Years of Vesting Service (but
                  only considering Vesting Service accumulated while in an
                  employment classification providing eligibility for
                  participation in this Plan or any of the Associated Plans)
                  shall not be less than his Accrued Pension as of February 28,
                  1994 reduced by 5% for each year by which the date the
                  Participant's early retirement pension begins precedes the
                  first day of the calendar month coincidental with or next
                  following the Participant's sixty-second birthday, with a
                  pro-rata reduction for any portion of a year.

                  If a Participant retires on a Late Retirement Date or
                  otherwise postpones his retirement Pension, he shall commence
                  to receive a late retirement Pension as of the earlier of the
                  first day of the calendar month after his actual Retirement
                  Date or the date that he is required by law to commence
                  receiving payment of his benefit as provided in Section
                  6.04(b).

5.04        Disability

            (a)   An Eligible Disabled Participant is a Participant who has at
                  least ten Years of Vesting Service when he terminates
                  employment on or after having attained age fifty-five but
                  prior to age sixty-five and at such time is determined to have
                  a Disability. An Eligible Disabled Participant's Disability
                  Date is the day on which his disability is deemed to have
                  started.

<PAGE>

            (b)   Disability means a total and permanent physical or mental
                  incapacity by bodily injury or disease that prevents an
                  Employee from engaging in any occupation or employment for
                  remuneration or profit, except for purposes of rehabilitation
                  as determined by the Committee, and entitles the Employee to a
                  disability benefit under the provisions of the Social Security
                  Act.

            (c)   A Participant who no longer satisfies each requirement in
                  Section 5.04(b) is no longer an Eligible Disabled Participant.

            (d)   An Eligible Disabled Participant is deemed to receive
                  Compensation at the same base rate he received for the
                  calendar month immediately before his Disability Date, and
                  that amount is credited from his Disability Date to the
                  earliest of: (i) his death; (ii) the date his Disability
                  ceases; or (iii) his Early or Normal Retirement Date.

            (e)   For purposes of determining his Years of Benefit Service, an
                  Eligible Disabled Participant is credited with Hours of
                  Service at the rate of forty-five hours for any week during
                  which he is an Eligible Disabled Participant.

5.05        Termination With Vesting

            (a)   A  Participant  shall be 100  percent  vested in, and have a
                  non-forfeitable   right  to,  his   Accrued   Pension   upon
                  attainment   of  Normal   Retirement   Age   (provided   the
                  Participant  is  actually  employed  by  an  Employer  or an
                  Affiliated  Employer  on such  date) or upon  completion  of
                  five  Years  of  Vesting  Service.   If  the   Participant's
                  employment  with an  Employer or an  Affiliated  Employer is
                  terminated  after he is 100  percent  vested in his  Accrued
                  Pension  for  reasons  other than  retirement  or death,  he
                  shall  be  eligible  for  a  deferred   vested   Pension  to
                  commence,  as of a date described in Section  5.05(b) below,
                  after the Participant has provided  written  notification to
                  the  Committee of his  intention to commence  receiving  his
                  Pension benefits.

            (b)   The deferred vested Pension shall  generally  commence to be
                  paid as of the  Participant's  Normal  Retirement  Date and,
                  subject to the  provisions of Section  6.01,  shall be equal
                  to his Accrued  Pension.  However,  if he had completed five
                  Years of  Vesting  Service  on the date of his  termination,
                  the  Participant  may  elect  to  have  his  vested  Pension
                  commence  as of the first day of any  calendar  month  after
                  his 55th  birthday  or his  termination  date if later,  and
                  before  his  Normal  Retirement  Date.  In  that  case,  the
                  Participant's  Pension shall be equal to the vested  Pension
                  otherwise  payable at his Normal  Retirement Date reduced as
                  provided  for  Early  Retirement  in  Section  5.03,  or  in
                  Section 5.08, if  applicable,  with respect to a Participant
                  who  terminates   service  prior  to  March  1,  1994  after
                  completing 25 years of Vesting Service.

5.06        Maximum Benefit Limitation

            The Plan Year shall be considered a "limitation year" for purposes
            of this Section 5.05 and Code Section 415.

<PAGE>

            (a)   (i)   "Section 415  Compensation"  means for the  purpose of
                        this  Section   5.06,   wages,   salaries,   fees  for
                        professional  services,  and  other  amounts  received
                        (without  regard to  whether  or not an amount is paid
                        in cash) for personal  services  actually  rendered in
                        the  course  of  employment  with  the  Company  or an
                        Affiliated  Employer  to the extent  that the  amounts
                        are  includible  in gross income  (including,  but not
                        limited    to,    commissions    paid    salespersons,
                        compensation   for   services   on  the   basis  of  a
                        percentage  of  profits,   commissions   on  insurance
                        premiums,     tips,    bonuses,    fringe    benefits,
                        reimbursements,  and expense  allowances) plus amounts
                        which are not  includible  in the gross  income of the
                        Employee   under   Code   Sections   125,   132(f)(4),
                        402(g)(3) or 457, but excluding:

                        (A)   Contributions made by the Company or an Affiliated
                              Employer on behalf of the Participant to the Plan
                              or any other plan of deferred compensation
                              maintained by the Company or an Affiliated
                              Employer;

                        (B)   Amounts   realized   from  the   exercise  of  a
                              non-qualified stock option;

                        (C)   Amounts   realized  when  restricted stock is no
                              longer subject to substantial risk of forfeiture;

                        (D)   Amounts realized from the disposition  of stock
                              acquired under a qualified stock option; and

                        (E) Other amounts that receive special tax benefits.

                        Notwithstanding the foregoing, for Plan Years beginning
                        prior to January 1, 1998, Section 415 Compensation shall
                        not include amounts not includable in the gross income
                        of the Employee under Code Sections 125, 402(g)(3) or
                        457 and for limitation years prior to January 1, 2001
                        shall not include elective reductions under Code Section
                        132(f)(4).

                  (ii)  "IRS Interest Rate" means the annual rate of interest on
                        30-year Treasury Securities as specified by the
                        Commissioner of Internal Revenue for the September (the
                        "look-back month") preceding the stability period.

                  (iii) "IRS Mortality Table" means the mortality table
                        prescribed by the Secretary of the Treasury under Code
                        Section 417(e)(3)(A)(ii)(I) as in effect on the first
                        day of the applicable stability period.

            (b)   Notwithstanding any other provisions of the Plan but subject
                  to the other provisions of this Section 5.06, the maximum
                  annual annuity payments under the Plan (exclusive of any
                  benefits which are not directly related to retirement income
                  benefits) shall not exceed the lesser of:

<PAGE>

                   (i)  $90,000; or

                  (ii)  100% of the Participant's Section 415 Compensation
                        during the three consecutive calendar years of service
                        during which his compensation was highest.

                  (iii) Less than 10 Years of Participation. If the Participant
                        has not been a Participant in the Plan for at least 10
                        years, the maximum annual benefit limitation in Section
                        5.06(b)(i) shall be multiplied by the ratio that the
                        Participant's number of years of participation in the
                        Plan bears to 10.

                  (iv)  Less than 10 Years of Vesting Service. If the
                        Participant has not completed 10 Years of Vesting
                        Service, the maximum annual benefit limitation in
                        Section 5.06(b)(ii) shall be multiplied by the ratio
                        that the Participant's number of Years of Vesting
                        Service bears to 10.

                  (v)   Payment Before Age 62. If the benefit begins before the
                        Participant attains age 62, the maximum annual benefit
                        limitation in Section 5.06(b)(i) shall be equal to the
                        lesser of the Actuarial Equivalent of the maximum annual
                        benefit limitation at age 62 (as determined in
                        accordance with Section 5.06(b)(vi) below) calculated
                        using:

                        (A)   The early retirement reduction factors prescribed
                              in the Plan (or in the absence of prescribed
                              factors, the mortality table and interest rate
                              prescribed in the definition of Actuarial
                              Equivalent); or

                        (B)   The IRS Mortality Table and an interest rate equal
                              to 5%. Notwithstanding the foregoing, the
                              mortality decrement shall be applied only on a
                              post-retirement basis where the Plan benefits are
                              not subject to forfeiture upon the Participant's
                              death prior to his Annuity Starting Date.

                  (vi)  Payment on or After Age 62 And Before Social Security
                        Retirement Age. If the benefit begins before the
                        Participant's Social Security Retirement Age but on or
                        after the date he attains age 62, the maximum annual
                        benefit limitation in Section 5.06(b)(i) shall be
                        reduced by 5/9 of one percent for each of the first 36
                        months plus 5/12 of one percent for each additional
                        month (up to 24) by which the Participant is younger
                        than his Social Security Retirement Age at the date his
                        benefit begins.

                  (vii) Payment After Social Security Retirement Age. If the
                        benefit begins after the Participant's Social Security
                        Retirement Age, the maximum annual benefit limitation in
                        Section 5.06(b)(i) shall be equal to the lesser of the
                        Actuarial Equivalent of the maximum annual benefit
                        limitation at the Participant's Social Security
                        Retirement Age calculated using:

                        (A)   The deferred retirement factors prescribed in the
                              Plan (or in the absence of prescribed factors, the
                              mortality table and interest rate prescribed in

<PAGE>

                              the definition of Actuarial Equivalent); or

                        (B)   The IRS Mortality Table and an interest rate equal
                              to 5%. Notwithstanding the foregoing, the
                              mortality decrement shall be applied only on a
                              post-retirement basis where the Plan benefits are
                              not subject to forfeiture upon the Participant's
                              death prior to his Annuity Starting Date.

                  (viii) Cost-of-Living Adjustments. As of January 1 of each
                        calendar year, the dollar limitation as determined by
                        the Commissioner of the Internal Revenue Service for
                        that calendar year shall become effective as the maximum
                        annual benefit limitation in Section 5.06(b)(i) during
                        the limitation year ending within that calendar year.

            (c)   A Participant's benefit shall be subject to the following
                  adjustments before the application of the maximum annual
                  benefit limitation in Section 5.06(b) and, as so modified,
                  shall be subject to such limitation:

                  (i)   If the Participant's benefit is payable as a joint and
                        survivor annuity with the Participant's spouse as the
                        Beneficiary, the modification of the Participant's
                        benefit for that form of payment shall be made before
                        the application of the maximum annual benefit limitation
                        in Section 5.06(b) and, as so modified, shall be subject
                        to such limitation.

                  (ii)  If the Participant's benefit is payable in a form that
                        is neither described in Section 5.06(c)(i) nor a
                        straight life annuity, the Participant's benefit shall
                        be converted to a straight life benefit before the
                        application of the maximum annual benefit limitation in
                        Section 5.06(b)(i) and, as so modified, shall be subject
                        to such limitation. For purposes of this Section
                        5.06(c)(ii), the straight life benefit shall be equal to
                        the greater of the Actuarial Equivalent of the benefit
                        otherwise payable to the Participant calculated using:

                        (A)   The optional benefit factors prescribed in the
                              Plan (or in the absence of prescribed factors, the
                              mortality table and interest rate prescribed in
                              the definition of Actuarial Equivalent); or

                        (B)   The IRS Mortality Table and an interest rate equal
                              to 5% or, if the form of benefit is subject to
                              Section Code 417(e)(3), an interest rate equal to
                              the IRS Interest Rate.

            (d)   The limitations in Section 5.06(b) shall not apply to any
                  Participant who has not at any time participated in any
                  defined contribution plan maintained by the Company or an
                  Affiliated Employer if the Participant's total annual
                  retirement benefit payable under the Plan and all other
                  defined benefit plans maintained by the Company or an
                  Affiliated Employer does not exceed $10,000.

            (e)   For limitation  years  commencing  prior to January 1, 2000,
                  if a Participant is a participant  in any qualified  defined
                  contribution  plan  required  to be taken into  account  for
                  purposes  of  applying   the   combined   plan   limitations
                  contained in Code Section 415(e),  then for any year the sum

<PAGE>

                  of  the  defined  benefit  plan  fraction  and  the  defined
                  contribution  plan  fraction,  as such terms are  defined in
                  said Section  415(e),  shall not exceed 1.0. If for any year
                  the foregoing  combined plan  limitation  would be exceeded,
                  the  benefit  provided  under  this Plan shall be reduced to
                  the extent necessary to meet that limitation.

            The purpose of this Section 5.06 is to comply with the provisions of
            Code Section 415 and any transitional provisions of statutes
            establishing or amending such Section 415 to the extent not
            incorporated or reflected in such Section 415, and all terms and
            provisions of this Section 5.06 shall be interpreted and construed
            consistent with Section 415 and such other statutory provisions.

5.07        Suspension of Benefits

            (a)   If a Participant in receipt of a Pension is restored to or in
                  service with an Employer as an Eligible Employee on or after
                  January 1, 1992, and he works more than 5 weeks in a calendar
                  quarter, the following shall apply:

                  (i)   Subject to administrative procedures, he shall not
                        receive one month's Pension payment which is otherwise
                        due in the immediately following calendar quarter.

                  (ii)  Any Years of Vesting Service, Years of Benefit Service,
                        Credited Years of Service and Credited Hours of Service
                        to which he was entitled when he retired or terminated
                        service shall be restored to him, except that benefits
                        for a Participant who does not complete at least 1,000
                        Hours of Service following his reemployment shall be
                        determined (A) as to his Credited Years of Service,
                        Credited Hours of Service, and Years of Benefit Service
                        accumulated prior to his reemployment date, based on the
                        terms of the Plan and the benefit formulas in effect at
                        his prior termination of employment and (B) as to his
                        Credited Years of Service, Credited Hours of Service and
                        Years of Benefit Service accumulated following his
                        reemployment, based on the terms of the Plan and the
                        benefit formulas in effect at his later termination of
                        employment. Notwithstanding, the preceding provisions of
                        this Section 5.07, the exception of this Section
                        5.07(a)(ii) shall apply upon reemployment of any
                        Eligible Employee regardless if he is in receipt of a
                        Pension at the time of his reemployment and without
                        regard to the 5 week work criterion.

                  (iii) Subject to the provisions of Section 5.07(a)(ii), upon
                        later retirement or termination of employment, his
                        Pension shall be calculated under the benefit formula in
                        effect upon his latest Retirement Date, based on his
                        Credited Hours of Service, Credited Years of Service and
                        Years of Benefit Service before and after the period
                        when he was not in the service of an Employer, reduced
                        if applicable, in accordance with Section 5.03(b).

                  (iv)  The portion of the Participant's Pension upon later
                        retirement payable with respect to Credited Hours of
                        Service, Credited Years of Service and Years of Benefit

<PAGE>

                        Service rendered before his previous retirement or
                        termination of service shall never be less than the
                        amount of his previous Pension modified to reflect any
                        option in effect on his later retirement.

                  (v)   If a  Participant  in receipt of a Pension is restored
                        to  service   with  an  Employer   or  an   Affiliated
                        Employer,  prior  to  January  1,  1992,  his  Pension
                        payments  will be  suspended  or any  month  prior  to
                        January 1, 1992 in which he is regularly  scheduled to
                        work at  least  80 hours  per  month in any one  month
                        period.  Upon later  retirement or  termination  prior
                        to January 1, 1992,  his Pension  shall be  calculated
                        in accordance  with the  preceding  provisions of this
                        Section  except  that if such an  Eligible  Employee's
                        reemployment   occurred   on  or  after   his   Normal
                        Retirement   Date,   then  his   Pension   upon  later
                        termination  or  retirement  shall  be  equal  to  the
                        greater of the  benefit  calculated  as  described  in
                        Section  5.07(a)(iii)(A)  above  or  the  benefit  the
                        Participant  was  receiving  as  of  his  rehire  date
                        adjusted to be an Actuarial  Equivalent for each month
                        subsequent  to his rehire date during which he did not
                        receive  payment of the  benefit  and during  which he
                        was not regularly scheduled to work at least 80 hours.

                  (vi)  The Committee will establish procedures consistent with
                        Department of Labor Regulations Section 2530.203-3
                        regarding the suspension of benefits under this Section
                        5.07 including but not limited to, procedures for
                        resumption of benefits, offsetting benefit payments and
                        notice regarding suspension of benefits, and such
                        provisions shall control in the event of conflict
                        between them and the proceeding provisions of this
                        Section.

5.08        Special Early Retirement

            (a)   In lieu of, and notwithstanding the provisions of, Section
                  5.03, the provisions of this Section 5.08 shall apply in the
                  case of a Participant who:

                  (i)   has reached an Early Retirement Date,

                  (ii)  retires from service on or after  September  15, 1986,
                        and prior to March 1, 1994

                  (iii) retires  from service  prior to his Normal  Retirement
                        Date, and

                  (iv)  has completed at least 25 Years of Vesting Service, but
                        only considering Vesting Service accumulated while in an
                        employment classification providing eligibility for
                        participation in this Plan or any of the Associated
                        Plans.

            (b)   A  Participant  who retires from service on or after October
                  1,  1988 and  prior to  March  1,  1994 but on or after  his
                  sixty-second  birthday  shall  commence  to receive an early
                  retirement  Pension  as of the  first  day  of the  calendar
                  month   coincidental  with  or  immediately   following  his
                  retirement  from  service.  Subject  to  the  provisions  of
                  Section  6.01,  the amount of such Pension shall be equal to

<PAGE>

                  the Participant's Accrued Pension.

            (c)   A  Participant  who retires from service on or after October
                  1,   1988   prior  to  March  1,   1994  and  prior  to  his
                  sixty-second  birthday  shall  commence  to receive an early
                  retirement  Pension  as of the  first  day  of the  calendar
                  month   after  he  submits  to  the   Committee   a  written
                  application  for retirement  benefits and after he separates
                  from service.  Unless the Participant  otherwise elects, the
                  early  retirement   Pension  shall  be  a  deferred  Pension
                  beginning  on the first day of the month  coincidental  with
                  or  immediately  following  his  sixty-second  birthday and,
                  subject to the  provisions of Section  6.01,  shall be equal
                  to his Accrued Pension.  However,  the Participant may elect
                  to  receive an early  retirement  Pension  beginning  on the
                  first  day of any  calendar  month  on or  after  his  early
                  Retirement  Date but before his  sixty-second  birthday.  In
                  that case, the  Participant's  Pension shall be equal to the
                  deferred  Pension  reduced  by 5% for each year by which the
                  date  the  Participant's  early  retirement  Pension  begins
                  precedes  the first day of the calendar  month  coincidental
                  with  or  next  following  the  Participant's   sixty-second
                  birthday, with a pro-rata reduction for any portion of year.

            (d)   A Participant who retired from service on or after September
                  15, 1986 but prior to October 1, 1988 under the conditions
                  specified in Section 5.08(a) above shall have his future
                  Pension payments increased effective with the Pension payment
                  payable as of October 1, 1988.

                  Such increase shall be equal to the additional amount of
                  Pension the Participant would have received at his original
                  Pension commencement date had the provisions of Section
                  5.08(b) or 5.08(c), whichever is applicable, been in effect on
                  such date.

            If a Participant covered by this Section 5.08(d) had not yet
            commenced to receive Pension payments as of October 1, 1988, then
            the Pension subsequently payable to him from or after October 1,
            1988 shall be determined under the provisions of Section 5.08(c).

                                    ARTICLE 6

                       FORM OF PAYMENT OF PENSION BENEFITS

6.01        Automatic Form of Payment

            (a)   If the Participant is not married on the date his Pension
                  begins, his Pension shall be payable in monthly installments
                  ending with the last monthly payment before death, unless the
                  Participant has elected an optional form of benefit as
                  described in Section 6.02.

            (b)   If the  Participant  is  married  on the  date  his  Pension
                  begins,  and if he has  not  elected  an  optional  form  of
                  benefit as described in Section  6.02,  the Pension  payable
                  shall  be  a  joint  and  survivor   Pension  which  is  the
                  Actuarial  Equivalent  of  the  Pension  otherwise  payable,
                  providing for a reduced  Pension  payable to the Participant
                  during  his life and after  his death a Pension  at the rate
                  of one-half  the Pension  paid to the  Participant,  payable
                  during  the  life  of,  and  to,  the  spouse  to whom he is
                  married at the date his  Pension  begins.  Once the  payment

<PAGE>

                  of  Participant's  Pension has begun, no adjustment shall be
                  made for any subsequent  change in marital status or health,
                  or for any other reason.

            (c)   In any case, an Actuarial  Equivalent lump sum payment shall
                  be made in lieu of all benefits if the present  value of any
                  Pension  is less than  $3,500  (effective  January  1, 1998,
                  $5,000) or if the monthly  Pension payable over the lifetime
                  of the  recipient is less than $50.00.  The lump sum payment
                  may  be  made  at  any  time  on  or  after   the  date  the
                  Participant  terminates  employment.  In addition, if a lump
                  sum  payment is greater  than $3,500  (effective  January 1,
                  1998,  $5,000), or if a lump sum payment is to be made after
                  a Participant's  Annuity Starting Date, the Participant must
                  consent in writing to such form of  distribution  and, if he
                  is married, Spousal Consent must also be obtained.

6.02        Options

            (a)   A  Participant  may,  subject to the  provisions  of Section
                  6.03, elect to convert the Pension  otherwise payable to him
                  into  one of the  Actuarial  Equivalent  optional  forms  of
                  benefit   described  below.   However,   if  the  Contingent
                  Annuitant or Beneficiary  selected is not the  Participant's
                  spouse,  the  present  value of the  Pension  payable to the
                  Participant  under the option  shall  always be more than 50
                  per cent of the present value of the benefits  payable under
                  the option to the Participant  and his Contingent  Annuitant
                  or Beneficiary.

                  Option 1.   A Pension payable  for  the  life  of  the
                              Participant only;

                  Option 2.   A modified Pension payable during the
                              Participant's life, and after his death payable at
                              50% or 100% of the rate of his modified Pension
                              during the life of, and to, the Contingent
                              Annuitant named by him when he elected the option.

                  Option 3.   A   modified    Pension   payable   during   the
                              Participant's  life,  guaranteed  for a 10  year
                              period  after the date the  Pension  begins.  If
                              the  Participant   dies  during  the  designated
                              period,  the modified  Pension  shall be payable
                              for  the   balance   of  that   period   to  the
                              Beneficiary  named  by him when he  elected  the
                              option;   provided   that,   if   there   is  no
                              designated  Beneficiary or the Beneficiary  then
                              does  not  survive  the  10  year   period,   an
                              Actuarial  Equivalent  lump sum  payment  of the
                              remaining   payments   shall   be  paid  to  the
                              alternate   Beneficiary  or,  if  none,  to  the
                              estate of the Beneficiary.

            (b)   The following special options and payment apply with respect
                  to the Actuarial Equivalent lump sum value of a Participant's
                  Accrued Benefit attributable to his Past Service Months under
                  Section 5.02(d) (the "Special Lump Sum Payment").

                  (i)   Upon termination of employment, the Participant, with
                        Spousal Consent, may elect to receive the Special Lump
                        Sum Payment. The election must be made within 90 days

<PAGE>

                        after employment is terminated for any reason. The
                        election is effective on the date of termination of
                        employment.

                  (ii)  If a Participant dies while employed, or after
                        termination of employment but while he is considered an
                        Eligible Disabled Employee pursuant to Section 5.04(a),
                        his spouse, if any, may elect to receive the Special
                        Lump Sum Payment. The election must be made by the
                        spouse within 90 days after the Participant's death. The
                        Special Lump Sum Death Benefit may only be elected by a
                        deceased Participant's spouse, if any, and may not be
                        elected by any other Beneficiary, whether the
                        Participant is or is not married at the date of his
                        death.

6.03        Election of Options

            (a)   A married Participant's election of any option which does not
                  provide for monthly payments to his spouse for life after the
                  Participant's death in an equal amount equal to at least 50%
                  but not more than 100% of the monthly amount payable under the
                  option to the Participant shall be effective only if Spousal
                  Consent to the election is received by the Committee.

            (b)   The Committee shall furnish to each married  Participant not
                  less  than  30  days  or  more  than  90  days,  before  his
                  projected  Annuity  Starting Date, a written  explanation in
                  nontechnical  language  of the terms and  conditions  of the
                  joint and survivor  Pension  provided under Section 6.01(b),
                  the  financial  effect  upon the  Participant's  Pension  of
                  making an election  under  Section 6.02 in lieu of the joint
                  and survivor  Pension,  the  requirement for Spousal Consent
                  as provided  in  paragraph  (a) above,  and the right of the
                  Participant to make and to revoke  elections.  under Section
                  6.02.  An  election  under  Section  6.02 shall be made on a
                  form provided by the  Committee,  and may be made after that
                  information is furnished to the  Participant  and during the
                  90-day election period preceding the  Participant's  Annuity
                  Starting  Date.  However,  a  married  Participant  may file
                  with  the   Committee  a  written   request   for   detailed
                  information  as to the amount of his  Pension on a joint and
                  survivor  basis under Section  6.01(b) and under Option l of
                  Section 6.02.  If he makes that  request,  the period during
                  which  an  election  of  Option  1  may  be  made  shall  be
                  extended,  if  necessary,  to include the 60 days  following
                  receipt by the Participant of that information.

            (c)   An election of an option  under  Section 6.02 may be revoked
                  on  a  form  provided  by  the  Committee,   and  subsequent
                  elections and  revocations  may be made at any time and from
                  time to time  during  the  applicable  election  period.  An
                  election of an optional  benefit  shall be  effective on the
                  date the  Participant's  Pension begins. A revocation of any
                  election  shall  be  effective  when the  completed  form is
                  filed with the Committee.  If a Participant  who has elected
                  an optional  benefit  dies  before the date the  election of
                  the  option  becomes   effective,   the  election  shall  be
                  revoked.   If  the   Contingent   Annuitant  or  Beneficiary
                  designated   under  an  option  dies  before  the  date  the
                  election  of the  option  becomes  effective,  the  election
                  shall be revoked.

<PAGE>

            (d)   Notwithstanding the provisions set forth above, a Participant
                  may, after having received the notice, affirmatively elect to
                  have his benefit commence sooner than 30 days following his
                  receipt of the notice, provided all of the following
                  requirements are met:

                  (i)   the Committee clearly informs the Participant that he
                        has a period of at least 30 days after receiving the
                        notice to decide when to have his benefits begin and, if
                        applicable, to choose a particular optional form of
                        payment;

                  (ii)  the Participant affirmatively elects a date for his
                        benefits to begin and, if applicable, an optional form
                        of payment, after receiving the notice;

                  (iii) the Participant is permitted to revoke his election
                        until the later of his Annuity Starting Date or seven
                        days following the day he received the notice;

                  (iv)  payment  does  not  commence   less  than  seven  days
                        following  the day after the notice is received by the
                        Participant; and

                  (v)   the  Participant's  Annuity Starting Date is after the
                        date the notice is provided.

6.04        Commencement of Payments

            (a)   Except as otherwise provided in this Article 6, payment of a
                  Participant's Pension shall begin as soon as administratively
                  practicable following the latest of:

                  (i)   The Participant's 65th birthday;

                  (ii)  The fifth  anniversary  of the date on which he became

                        a Participant; or

                  (iii) The date he terminates service with an Employer or
                        Affiliated Employer (but not more than 60 days after the
                        close of the Plan Year in which the latest of (i), (ii)
                        or (iii) occurs).

            (b)   Notwithstanding the preceding paragraph, the Participant's
                  Pension shall begin not later than April 1 after the
                  applicable of the following dates:

                  (i)   Prior to January 1, 1989:

                        (A)   For an Employee who owns a five percent (5%) or
                              more interest in an Employer or an Affiliated
                              Employer (as defined in Section 416(i) of the
                              Code), the last day of the calendar year in which
                              he attains age seventy and one-half (70-1/2); or

                        (B) For any other Employee, the later of:

                              (1)   The  last  day of  the  calendar  year  in

<PAGE>

                                    which he  terminates  from an  Employer or
                                    an Affiliated Employer; or

                              (2)   The last day of the calendar year in which
                                    he attains age seventy and one-half
                                    (70-1/2).

                  (ii)  After December 31, 1988:

                        Participants who continue to work past age 70 1/2 shall
                        begin to receive their benefit distributions as of April
                        1 of the year following the calendar year in which they
                        reach age 70 1/2.

            (c)   In addition to the foregoing, to commence benefits under this
                  Plan, the Participant must comply with the administrative
                  procedures established by the Committee.

6.05        Method of Payment for Eligible Rollover Distributions

            (a)   Notwithstanding any provision of the Plan to the contrary, if
                  a Distributee is entitled to receive an Eligible Rollover
                  Distribution which exceeds $200, the Distributee may elect, at
                  the time and in the manner prescribed by Committee, and in
                  accordance with this Section 6.05, to have his Eligible
                  Rollover Distribution paid in accordance with one of the
                  following methods:

                  (i)   All of the  Eligible  Rollover  Distribution  shall be
                        paid directly to the Distributee;

                  (ii)  All of the Eligible Rollover Distribution shall be paid
                        as a Direct Rollover to the Eligible Retirement Plan
                        designated by the Distributee; or

                  (iii) The portion of the Eligible Rollover as designated by
                        the Participant, which portion shall be at least $500 or
                        such lesser amount as the Committee shall determine,
                        shall be paid as a Direct Rollover to the Eligible
                        Retirement Plan designated by the Distributee and the
                        balance of the Eligible Rollover Distribution shall be
                        paid directly to the Distributee.

            (b)   No less than 30 days and no more  than 90 days  prior to the
                  Distributee's  Annuity  Starting Date,  the Committee  shall
                  provide the  Distributee  with an election form and a notice
                  that satisfies the  requirements  of Section  1.411(a)-11(c)
                  of the  Income Tax  Regulations  and  Section  402(f) of the
                  Code.  In the  event the  Distributee  does not  return  the
                  signed election form by his Annuity  Starting Date, he shall
                  be deemed to have  elected  the method of payment  described
                  in Section 6.05(a)(i).

            (c)   Notwithstanding the provisions of Section 6.05(b) above,
                  distributions paid in accordance with Section 6.05(a) may
                  commence less than 30 days after the material described in
                  Section 6.05(b) is given to the Distributee, provided that:

                  (i)   If the Distributee is the Participant, the Actuarial
                        Equivalent of the Participant's Accrued Pension does not
                        exceed $3,500 (effective January 1, 1998, $5,000);

<PAGE>

                  (ii)  If the Distributee is the Participant's Spouse, the
                        Actuarial Equivalent of the Spouse's Pension does not
                        exceed $3,500 (effective January 1, 1998, $5,000);

                  (iii) The Distributee is notified that he has the right to a
                        period of at least 30 days after receipt of the material
                        to consider whether or not to elect a distribution; and

                  (iv)  After receipt of such  notification,  he affirmatively
                        elects to receive a distribution.

            (d)   The  following  definitions  apply to the terms used in this
                        Section 6.05:

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

                        (A)   Any  distribution  that is one of a series  of a
                              substantially  equal periodic payments (not less
                              frequent  than  annually)  made for the life (or
                              life  expectancy)  of  the  Distributee  or  the
                              joint lives (or joint life  expectancies) of the
                              Distributee  and  the  Distributee's  designated
                              beneficiary,  or for a  specified  period of ten
                              years or more;

                        (B)   Any    distribution    to   the   extent    such
                              distribution    is   required    under   Section
                              401(a)(9) of the Code;

                        (C)   The portion of any distribution that is not
                              includable in gross income (determined without
                              regard to the exclusion for net unrealized
                              appreciation with respect to employer securities);
                              and

                        (D)   Any other type of distribution that the Internal
                              Revenue Service announces (pursuant to regulation,
                              notice or otherwise) is not an Eligible Rollover
                              Distribution pursuant to Section 402(c) of the
                              Code.

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

                  (iii) "Distributee" includes an Employee or former Employee.
                        In addition, the Employee's or former Employee's
                        surviving spouse and the Employee's or former Employee's
                        spouse or former spouse who is the alternate payee
                        pursuant to a qualified domestic relations order, as
                        defined in Section 414(p) of the Code, are Distributees

<PAGE>

                        with regard to the interest of the Spouse or former
                        Spouse.

                  (iv)  "Direct Rollover" means a payment by the Plan to the
                        Eligible Retirement Plan specified by the Distributee.

                                    ARTICLE 7

                           DEATH AND WELFARE BENEFITS

7.01        Spouse's Pension

            (a)   If a  married  Participant  dies  in  active  service  after
                  having  met the  requirements  for  any  Pension,  or  after
                  having   terminated   from  an  Employer  or  an  Affiliated
                  Employer after having become  entitled to a vested  Pension,
                  a spouse's  Pension shall be payable to his surviving spouse
                  for life.  Such  spouse  may also be  eligible  to elect the
                  Special  Lump Sum  Payment of  Section  6.02(b) in lieu of a
                  portion of the  spouse's  Pension  payable  pursuant  to the
                  provisions of this Article 7.

            (b)   The spouse's Pension shall commence to be paid, unless the
                  spouse makes written election to defer commencement to no
                  later than the date the Participant would have attained age
                  65, as of the first day of the calendar month following the
                  later of the Participant's date of death or what would have
                  been the Participant's 55th birthday. It shall be equal to:

                  (i)   In the case of a  Participant  who  dies  after he has
                        completed  the  requirements  for a  normal  or  early
                        retirement  Pension,  the Pension that would have been
                        payable to the spouse if the  Participant  had retired
                        under Section 5.01 or 5.03,  whichever is  applicable,
                        and his Pension had  commenced  as of the first day of
                        the month in which his death  occurred  or such  later
                        date as is selected; or

                  (ii)  In the case of any other Participant, the Pension that
                        would have been payable to the spouse, based on his
                        Accrued Pension at date of death, if he had elected to
                        have his vested Pension begin upon his attainment of age
                        55 or such later date as is selected (or his date of
                        death, if later) and then had died immediately
                        thereafter.

7.02        Latest Date of Distribution of Spouse's Pension

            The following rules apply with respect to the latest allowable
            distribution of death benefits on a Participant's behalf under the
            Plan in accordance with Section 401(a)(9) of the Code:

            (a)   If the Beneficiary is other than the Participant's spouse,
                  distribution to such Beneficiary shall generally be made or
                  commence within one (l) year of the Participant's date of
                  death; or

            (b)   If the Beneficiary is the Participant's spouse, distribution
                  to such Beneficiary shall generally be made or commence by the
                  date on which the Participant would have attained age seventy
                  and one-half (70-1/2).

7.03        Other Welfare  Benefits for  Participants  Terminating  Employment

<PAGE>

            After December 31, 1993:

            (a)   A Participant who:

                  (i)   has an Employment Commencement Date (determined without
                        regard to paragraph (a) of Section 2.24 and subject to
                        the provision described in Appendix C, C.3) prior to
                        January 1, 1994 and, except as provided in Sections
                        7.03(b) and 7.03(e), has no rehire dates with an
                        Employer or an Affiliated Employer after December 31,
                        1993;

                  (ii)  has attained age 65;

                  (iii) has at least 30,000 Credited Hours of Service including
                        Credited Hours of Service as defined in Section 5.02(b)
                        plus credited hours under any of the Associated Plans
                        after April 30, 1984;

                  (iv)  has at least twenty years of Vesting Service, but only
                        considering Vesting Service accumulated while in an
                        employment classification providing eligibility for
                        participation in this Plan or any of the Associated
                        Plans;

                  (v)   has  separated  from service on account of  Disability
                        as  defined  in  Section  5.04(b),   or  on  or  after
                        attainment of age 55 in any other case; and

                  (vi)  has begun receiving retirement benefits under the Plan
                        (or, effective April 2, 2001, is eligible to commence
                        receiving retirement benefits);

                  is entitled to this Section's welfare benefits, provided the
                  Participant is not "in competition" with an Employer, or any
                  Affiliated Employer. For purposes of this Section, no
                  Participant shall be considered "in competition" with an
                  Employer, or any Affiliated Employer, unless the Participant
                  had been a Senior Vice President of an Employer (or any
                  Affiliated Employer) for at least five years during his career
                  with an Employer or any Affiliated Employer, and the
                  Participant either becomes a 5% or greater percentage owner of
                  a competing business or is employed by a competing business in
                  a classification of Vice President or higher. Considering the
                  preceding, the determination of competition with an Employer
                  or with any Affiliated Employer shall be made under Committee
                  rules of uniform application.

            (b)   In addition to the provisions of Section 7.03(a) above, a
                  Participant who meets the following requirements shall also be
                  entitled to this Section's welfare benefits:

                  (i)   has attained age 62;

                  (ii)  has begun receiving early retirement benefits (or,
                        effective April 2, 2001, is eligible to begin receiving
                        early retirement benefits); and

                  (iii) has either (A) separated from service prior to July 1,
                        1994 and, prior to March 1, 1994, completed at least
                        30,000 Credited Hours of Service including Credited

<PAGE>

                        Hours of Service as defined in Section 5.02(b) plus
                        credited hours under any of the Associated Plans after
                        April 30, 1984, and completed at least twenty years of
                        Vesting Service, but only considering Vesting Service
                        accumulated while in an employment classification
                        providing eligibility for participation in this Plan or
                        any of the Associated Plans or (B) attained age 60 prior
                        to March 1, 1994, and separates from service after
                        completion of at least 30,000 Credited Hours of Service,
                        including Credited Hours of Service as defined in
                        Section 5.02(b) plus credited hours under any of the
                        Associated Plans after April 30, 1984, and completion of
                        at least twenty years of Vesting Service, but only
                        considering Vesting Service accumulated while in an
                        employment classification providing eligibility for
                        participation in this Plan or any of the Associated
                        Plans.

                  If a Participant who meets the requirements of this Section
                  7.03(b) is rehired by an Employer or an Affiliated Employer
                  subsequent to June 30, 1994 and prior to his attainment of age
                  55, he will not be entitled to this Section's welfare benefits
                  pursuant to the provisions of this Section 7.03(b). Subsequent
                  eligibility, if any, for this Section's welfare benefits shall
                  be dependent upon fulfillment of the requirements of Section
                  7.03(a), considering the provisions of Section 7.03(e).

                  If a Participant who meets the requirements of this Section
                  7.03(b) is rehired by an Employer or an Affiliated Employer on
                  or after his attainment of age 55, he will remain entitled to
                  this Section's welfare benefits pursuant to the provisions of
                  this Section 7.03(b) upon his subsequent retirement.

            (c)   Before  his  death,  a  Participant   described  in  Section
                  7.03(a)   or  7.03(b)  is   entitled   to  health   benefits
                  (including   dental  or  vision  benefits,   if  applicable)
                  according to the standards (or insurance  contracts) adopted
                  and  announced  by the  Committee  from  time to  time.  Any
                  Participant   eligible  to  receive  a  benefit   under  the
                  provisions  of this Section may be required to contribute to
                  the cost of such benefit in the  discretion of the Committee
                  and in an  amount as  determined  in the  discretion  of the
                  Committee.   If  a  Participant   shall  fail  to  make  the
                  required  contribution,  if any, such Participant's coverage
                  for the  benefit  under this  Section  will  terminate.  The
                  benefits in this Section need not be insured.

            (d)   The spouse and  eligible  children of a  Participant  who is
                  eligible  under  Section  7.03(a) or 7.03(b) for the welfare
                  benefits  described in Section 7.03(c) are also eligible for
                  those  benefits  until the spouse  remarries  or dies before
                  remarriage.  If  a  Participant  dies  as  an  Employee  and
                  satisfies the conditions of Section 7.03(a)(1),  (3) and (4)
                  and  has  satisfied  the  conditions  to  receive  an  early
                  retirement  pension  under  Section  2.18,  his  spouse  and
                  eligible children are entitled to the benefits  described in
                  this Section,  beginning on the Participant's date of death,
                  or if later the date that would have been the  Participant's
                  sixty-fifth   birthday   (sixty-second   birthday   if   the
                  Participant  is eligible  under Section  7.03(b)  above) and
                  ending  at  the   spouse's   remarriage   or  death   before
                  remarriage.

<PAGE>

            (e)   In   general,   a   Participant   who   has  an   Employment
                  Commencement  Date or any rehire date with an Employer or an
                  Affiliated  Employer  that is after  December 31, 1993 shall
                  not be entitled to the welfare  benefits of this  Section or
                  Section 7.04.  However, a Participant's  rehire date with an
                  Employer  or  an  Affiliated  Employer  which  occurs  after
                  December  31, 1993 shall be ignored for purposes of Sections
                  7.03(a)(1)  and  7.04(a) if the  Participant  satisfies  the
                  requirements  of  subsection  (1)  and the  requirements  of
                  either subsection (2) or subsection (3) below:

                  (i)   Prior  to the  rehire  date,  the  Participant  has at
                        least  30,000  Credited  Hours  of  Service  including
                        Credited  Hours  of  Service  as  defined  in  Section
                        5.02(b)   plus   credited   hours  under  any  of  the
                        Associated  Plans  after  April  30,  1984  and has at
                        least  twenty  years  of  Vesting   Service  but  only
                        considering  Vesting Service  accumulated  while in an
                        employment  classification  providing  eligibility for
                        participation  in this  Plan or any of the  Associated
                        Plans; and

                  (ii)  The   Participant   attained   age  55   prior  to  or
                        coincidental with his rehire date; or

                  (iii) The   Participant   fulfilled  all  of  the  following
                        conditions:

                        (A)   The Participant has only one rehire date which
                              occurs after December 31, 1993 and prior to
                              attainment of age 55;

                        (B)   The Participant's period of termination of service
                              immediately prior to the rehire date is less than
                              366 days; and

                        (C)   The Participant's period of reemployment following
                              his rehire date is at least 365 days during which
                              he is credited with at least 1,000 Hours of
                              Service.

                  For purposes of this Section 7.03(e), a Participant shall not
                  be deemed to have a separation from service and shall not be
                  deemed to have a rehire date that occurs subsequent to
                  December 31, 1993 if the Participant's termination of service
                  is on account of Disability as defined in Section 5.04(b) and
                  the Participant returns to service upon recovery from
                  Disability or if the Participant is laid off and recalled
                  within 12 months of the layoff. In such cases and for the
                  purposes of this Section, such Participant shall be treated as
                  if there was no interruption in the continuity of his service.
                  However, a layoff in excess of 12 months is deemed a
                  separation from service as of the first day of layoff.

                  Further, a Participant who has a rehire date due to the
                  acquisition of his employer by an Employer or an Affiliated
                  Employer shall be deemed not to have a rehire date provided
                  his employment terminates within the three-month period
                  commencing on the date of acquisition of his employer.

            (f)   This Section 7.03 and Section 7.04 are intended to comply with
                  Section 401(h) of the Code and must be construed accordingly.

<PAGE>

            (g)   As to each Employee who is a  five-percent  owner as defined
                  in  Section  416(i)(1)(B)  of the Code  during any Plan Year
                  for which  contributions  are made under this  Section's  or
                  Section  7.04's welfare  benefits,  the Committee must cause
                  the  appropriate  Trustees and  co-Trustees to establish and
                  maintain a separate  subaccount  under the separate  account
                  of   Section   9.04(b).   Each  such   Employee's   separate
                  subaccount  must hold the assets used to fund this Section's
                  or Section 7.04's  benefits for that Employee and his spouse
                  and  dependents.  Benefits  under  this  Section  or Section
                  7.04 for an Employee  described  in this  subsection  or for
                  his  spouse  and  dependents  may  be  paid  only  from  the
                  separate subaccount maintained for him.

7.04        Other Welfare  Benefits for  Participants  Terminating  Employment
            Prior to
            January 1, 1994

            (a)   A Participant who:

                  (i)   has attained age sixty-two;

                  (ii)  has at least 30,000 Credited Hours of Service for
                        purposes of Section 5.02(b) plus credited hours under
                        any of the Associated Plans after April 30, 1984;

                  (iii) has at least twenty Years of Vesting Service, but only
                        considering Vesting Service accumulated while in an
                        employment classification providing eligibility for
                        participation in this Plan or any of the Associated
                        Plans;

                  (iv)  has separated from service prior to January 1, 1994 and
                        has no rehire dates with an Employer or an Affiliated
                        Employer after December 31, 1993 except as provided in
                        Section 7.03(e); and

                  (v)   has begun receiving early retirement benefits

                  is entitled to this Section's welfare benefits.

            (b)   Before  his  death,  a  Participant   described  in  Section
                  7.04(a) is entitled to medical  benefits  (including  dental
                  benefits,  if  applicable)  according to the  standards  (or
                  insurance   contracts)   adopted   and   announced   by  the
                  Committee.  Any  Participant  eligible  to receive a benefit
                  under the  provisions  of this  Section  may be  required to
                  contribute to the cost of such benefit in the  discretion of
                  the  Committee  and  in  an  amount  as  determined  in  the
                  discretion of the  Committee.  If a  Participant  shall fail
                  to  make   the   required   contribution,   if   any,   such
                  Participant's  coverage  for the benefit  under this Section
                  will  terminate.  The  benefits in this  Section need not be
                  insured.

            (c)   The spouse and  eligible  children of a  Participant  who is
                  eligible  for the  welfare  benefits  described  in  Section
                  7.04(a)  are also  eligible  for  those  benefits  until the
                  spouse   remarries   or  dies   before   remarriage.   If  a
                  Participant  dies as an  Employee  prior to  January 1, 1994
                  and satisfies the  conditions of Section  7.04(a)(2) and (3)
                  and  has   satisfied   the   conditions   to  receive  early
                  retirement  Pension  under  Section  2.18,  his  spouse  and

<PAGE>

                  eligible children are entitled to the benefits  described in
                  this  Section,  beginning  on the date that  would have been
                  the  Participant's   sixty-second  birthday  (or  his  later
                  death)  and  ending  at the  spouse's  remarriage  or  death
                  before remarriage.

7.05        Other Welfare Benefits and Transfer of Employment

            Notwithstanding any other provision to the contrary, effective
            January 1, 2000, Participants in the Plan who cease to be Eligible
            Employees under the Plan because of a transfer to an employment
            classification providing eligibility for participation in the ABC,
            Inc. Retirement Plan or the Disney Associated Companies' Retirement
            Plan will, subject to the provisions of this Plan, continue to earn
            service credit toward eligibility for welfare benefits described in
            Section 7.03 while so employed.

                                    ARTICLE 8

                             ADMINISTRATION OF PLAN

8.01        Appointment of Plan Committee

            The general administration of the Plan and the responsibility for
            carrying out the provisions of the Plan shall be placed with a
            Committee, consisting of not less than three (3) persons, appointed
            by the Board of Directors to serve at the pleasure of such Board.
            Any member of the Committee may resign by delivering his written
            resignation to the Board of Directors.

8.02        Duties of Committee

            The members of the Committee shall elect a chairman from their
            number and a secretary who may be but need not be one of the members
            of the Committee; may appoint from their number such subcommittees
            with such powers as they shall determine; and may authorize one or
            more of their number or any agent to execute or deliver any
            instrument or make any payment on their behalf. In addition, the
            Committee may retain counsel, employ agents, and provide for such
            clerical, accounting, actuarial and consulting services as it may
            require in carrying out the terms of the Plan; and may allocate
            among its members or delegate all or such portion of the duties
            under the Plan, other than those granted to the Trustee under the
            trust agreement adopted for use in implementing the Plan, as it, in
            its sole discretion, shall decide.

8.03        Meetings

            The Committee shall hold meetings upon such notice, at such place or
            places, and at such time or times as it may from time to time
            determine.

8.04        Quorum

            Any act which the Plan authorizes or requires the Committee to do
            may be done by a majority of a quorum of members. A quorum is 50% of
            all members of the Committee then in office. The action of that
            majority expressed from time to time by a vote at a meeting or in
            writing without a meeting shall constitute the action of the
            Committee and shall have the same effect for all purposes as if
            assented to by all members of the Committee at the time in office.

<PAGE>

8.05        Compensation and Bonding

            No member of the Committee shall receive any compensation from the
            Plan for his services as such. Except as may otherwise be required
            by law, no bond or other security need be required of any member in
            that capacity in any jurisdiction.

8.06        Establishment of Rules and Interpretation of Plan

            Subject to the limitations of the Plan, the Committee from time to
            time shall establish rules for the administration of the Plan and
            the transaction of its business as it deems necessary or
            appropriate. The Committee shall have the power and full discretion
            to construe and interpret the Plan, decide all questions of
            eligibility, and determine the amount, manner and time of payment of
            any benefits hereunder. The determination of the Committee as to any
            disputed question shall be conclusive and binding on all persons.

8.07        Prudent Conduct

            The Committee shall use that degree of care, skill, prudence and
            diligence that a prudent man acting in a like capacity and familiar
            with such matters would use in his conduct of a similar situation.

8.08        Service in More Than One Fiduciary Capacity

            Any individual, entity, or group of persons may serve in more than
            one fiduciary capacity with respect to the Plan and/or the funds of
            the Plan.

8.09        Limitation of Liability

            The Board of Directors, the Committee, the Employees and any
            officer, employee or agent of an Employer or an Affiliated Employer
            shall not incur any liability individually or on behalf of any other
            individuals or on behalf of an Employer or an Affiliated Employer
            for any act or failure to act, made in good faith in relation to the
            Plan or the funds of the Plan. However, this limitation shall not
            act to relieve any such individual, an Employer or an Affiliated
            Employer from responsibility or liability for any fiduciary
            responsibility, obligation or duty under Part 4, Title 1 of ERISA.

8. 10       Indemnification

            The Committee, the Board of Directors, and the officers, employees
            and agents of an Employer or an Affiliated Employer shall be
            indemnified against any and all liabilities arising by reason of any
            act, or failure to act, in relation to the Plan or the funds of the
            Plan, including, without limitation, expenses reasonably incurred in
            the defense of any claim relating to the Plan or the funds of the
            Plan, and amounts paid in any compromise or settlement relating to
            the Plan or the funds of the Plan, except for actions or failures to
            act made in bad faith. The foregoing indemnification shall be from
            the funds of the Plan to the extent of those funds and to the extent
            permitted under applicable law; otherwise from the assets of the
            Employers.

8.11        Expenses of Administration

            All expenses incurred prior to the termination of the Plan which

<PAGE>

            shall arise in connection with the administration of the Plan,
            including but not limited to the compensation of the Trustee,
            administrative expenses and proper charges and disbursements of the
            Trustee and compensation and other expenses and charges of any
            Enrolled Actuary, counsel, accountant, specialist, or other person
            who shall be employed by the Committee in connection with the
            administration thereof, shall be paid from the Trust Fund to the
            extent not paid by the Employers.

8.12        Claims Procedures

            The Committee will ordinarily instruct the Trustee to pay benefits
            when benefits become available without the necessity of a claim by
            Participants, Contingent Annuitants or Beneficiaries. If any
            Participant, Contingent Annuitant or Beneficiary makes a written
            claim for benefits under the Plan and such claim is denied, the
            Committee, within 90 days of the date the claim is filed (or, if
            special circumstances require an extension of time for processing
            the claim and written notice is given to the claimant of such
            extension, up to 180 days after the original claim is filed), shall
            give the claimant notice in writing of the denial of claimed
            benefits, setting forth specific reasons for the denial, references
            to pertinent Plan provisions, the reason for and description of any
            additional material or information needed to perfect the claim, and
            an explanation of the review procedure. If no notice is given within
            the 90-day (or extended 180-day) period, the claim shall be
            considered denied. The decision of the Committee shall be final
            unless the claimant, within 60 days after receipt of notice of the
            decision of the Committee, makes a written request for review of the
            decision. The claimant or his authorized representative shall have
            30 days after submitting a written request for a review, during
            which time Plan documents may be reviewed and written issues and
            comments may be submitted. Within 60 days after receipt of the
            written request for review, the Committee shall issue a written
            decision including reasons for the decision and references to
            controlling Plan provisions, which decision shall be final.

8.13        Records

            The records of the Employers with respect to length of employment,
            employment history, base pay, absences, and all other relevant
            matters may be conclusively relied on by the Plan Administrator.

                                    ARTICLE 9

                               MANAGEMENT OF FUNDS

9.01        Trust Agreement

            All the funds of the Plan shall be held by a Trustee appointed from
            time to time by the Board of Directors under a Trust Agreement
            adopted, or as amended, by the Board of Directors for use in
            providing the benefits of the Plan and paying its expenses not paid
            directly by the Employers. The Employers shall have no liability for
            the payment of benefits under the Plan or for the administration of
            the funds paid over to the Trustee.

9.02        Exclusive Benefit Rule

            Except as otherwise provided in the Plan, no part of the corpus or
            income of the funds of the Plan shall be used for, or diverted to,

<PAGE>

            purposes other than the exclusive benefit of Participants and other
            persons entitled to benefits under the Plan before satisfaction of
            all liabilities with respect to them. No person shall have any
            interest in or right to any part of the earnings of the funds of the
            Plan, or any right in, or to, any part of the assets held under the
            Plan, except as to and to the extent expressly provided in the Plan.

9.03        Committee Power and Duties

            (a)   The Committee may, in its discretion, appoint one or more
                  investment managers (within the meaning of Section 3(38) of
                  ERISA) to manage (including the power to acquire and dispose
                  of) all or part of the assets of the Plan. In that event,
                  authority over and responsibility for the management of the
                  assets so designated shall be the sole responsibility of that
                  investment manager.

            (b)   The Committee  shall have the duty to advise any  investment
                  adviser or person (including any investment  manager) having
                  discretionary  investment authority over all or a portion of
                  the Plan's  Trust Fund of the  investment  objectives  which
                  such person should observe.  Such advice should,  looking at
                  the  assets of the Plan as a whole,  take into  account  the
                  short-term  cash  needs for  benefit  payment as well as the
                  long-term    growth   needed   to   discharge   the   Plan's
                  liabilities.  The  Committee  shall review and report to the
                  Board  of  Directors   concerning  the  performance  of  all
                  investment   advisers   and   persons   with   discretionary
                  investment   authority   and  make  such   changes   in  the
                  appointment  of such persons as it deems  advisable,  except
                  that any  replacement of the Trustee may be made only by the
                  Board  of   Directors   upon  the   recommendation   of  the
                  Committee.  The  Committee  shall  also  have the  power and
                  authority  specified in any  agreements  with the Trustee or
                  any investment adviser or investment manager.

            (c)   At the option of the Committee, any or all of the retirement
                  income benefits payable under the Plan may be provided through
                  the purchase of insured guaranteed annuities.

            (d)   At the option of the Committee, any or all of the health and
                  welfare benefits payable under the Plan may be provided
                  through either the Plan's Trust Fund or the purchase of
                  insurance policies.

            (e)   With the approval of the Committee, a portion of the Plan's
                  Trust Fund may be invested in the Trustee's certificates of
                  deposit, or in the Trustee's pooled or commingled qualified
                  trust funds.

            (f)   The Committee shall prepare not less than once per year a
                  report of its actions, recommendations and investments and
                  shall deliver a copy of such report to the Board of Directors.

9.04        Separate Accounts

            Within the Plan's Trust Fund separate accounts shall be maintained
            for:

            (a)   That portion of the Plan's Trust Fund arising out of
                  contributions made by the Employers and Employees for the
                  purposes of funding the retirement income benefits described
                  in Articles 5 and 6 and Section 7.01 hereof; and

<PAGE>

            (b)   That portion of the Plan's Trust Fund arising out of
                  contributions made by the Employers alone for the purposes of
                  funding and health and welfare benefits provided in Sections
                  7.03 and 7.04 hereof.

            The portion of the contributions, excluding contributions made to
            fund past service credits, which is allocable to providing health
            and welfare benefits available under Sections 7.03 and 7.04,
            including life insurance benefits, if any, shall not exceed 25% of
            the aggregate contributions to the Plan excluding contributions made
            to fund past service credits.

            Each Employer shall designate the portion of its contributions, at
            the time of such contribution, which is allocable to the funding of
            health and welfare benefits provided under the Plan.

                                   ARTICLE 10

                               GENERAL PROVISIONS

10.01       Nonalienation

            Except as required by any applicable law, no benefit under the Plan
            shall in any manner be anticipated, assigned or alienated, and any
            attempt to do so shall be void. However, payment shall be made in
            accordance with the provisions of any judgment, decree, or order
            which:

            (a)   Creates for, or assigns to, a spouse, former spouse, child or
                  other dependent of a Participant the right to receive all or a
                  portion of the Participant's benefits under the Plan for the
                  purpose of providing child support, alimony payments or
                  marital property rights to that spouse, child or dependent;

            (b)   Is made pursuant to a state domestic relations law;

            (c)   Does not  require  the Plan to provide  any type of benefit,
                  or any option, not otherwise provided under the Plan; and

            (d)   Otherwise meets the requirements of Section 206(d) of ERISA,
                  as amended, as a "Qualified Domestic Relations Order," as
                  determined by the Committee.

10.02       No Contract of Employment

            The Plan shall not be deemed to constitute a contract between any
            Employer and any person or to be considered an inducement for the
            employment of any person by any Employer. Nothing contained in the
            Plan shall be deemed:

            (a)   To give any person the right to be  retained  in the service
                  of an Employer; or

            (b)   To interfere with the right of any Employer to discharge any
                  person at any time without regard to the effect which such
                  discharge shall have upon his rights or potential rights, if
                  any, under the Plan.

10.03       Facility of Payment

            If the Committee shall find that a Participant or other person
            entitled to a benefit is unable to care for his affairs because of

<PAGE>

            illness or accident or is a minor, the Committee may direct that any
            benefit due him, unless claim shall have been made for the benefit
            by a duly appointed legal representative, be paid to his spouse, a
            child, a parent or other blood relative, or to a person with whom he
            resides. Any payment so made shall be a complete discharge of the
            liabilities of the Plan for that benefit.

10.04       Information

            Each Participant, Contingent Annuitant, Beneficiary or other person
            entitled to a benefit, before any benefit shall be payable to him or
            on his account under the Plan, shall file with the Committee the
            information that it shall require to establish his rights and
            benefits under the Plan.

10.05       Construction

            (a)   Governing  Laws.  Except  as  otherwise  provided  by ERISA,
                  this Plan and all provisions  thereof shall be construed and
                  administered   according   to  the  laws  of  the  State  of
                  California.

            (b)   Title and Headings Not to Control. The titles to the Articles
                  and the headings of Sections in the Plan are placed herein for
                  convenience of reference only and, in the case of any
                  conflict, the text of this instrument rather than such titles
                  or headings shall control.

            (c)   Gender and Person. The masculine pronoun shall include the
                  feminine, the feminine pronoun shall include the masculine and
                  the singular shall include the plural wherever the context so
                  requires.

10.06       Non-Duplication of Benefits

            Any Pension payable under the Plan shall be reduced by any pension
            paid to a Participant under the terms of any defined benefit pension
            plan to which an Employer or an Affiliated Employer contributes,
            directly or indirectly, other than by payment of taxes, to the
            extent that such pension is based on a period of employment with an
            Employer or an Affiliated Employer for which a Participant receives
            credit for Pension benefits under this Plan.

10.07       Proof of Death and Right of Beneficiary or Other Person

            The Committee may require and rely upon such proof of death and such
            evidence of the right of any Contingent Annuitant or Beneficiary or
            other person to receive the value of the Plan benefits of a deceased
            Participant as the Committee may deem proper, and its determination
            of death and of the right of that Contingent Annuitant or
            Beneficiary or other person to receive payment shall be conclusive.

10.08       Failure to Locate Recipient

            In the event that the Committee is unable to locate a Participant,
            Contingent Annuitant, or Beneficiary who is entitled to payment
            under the Plan within 5 years from the date such payment was to have
            been made, the amount to which such Participant, Contingent
            Annuitant or Beneficiary was entitled shall be declared a forfeiture
            and shall be used to reduce future Employer contributions to the
            Plan. If the Participant, Contingent Annuitant or Beneficiary is
            later located, the benefit which was previously forfeited hereunder
            shall be restored by means of additional Employer contributions to

<PAGE>

            the Plan.

                                   ARTICLE 11

                        AMENDMENT, MERGER AND TERMINATION

11.01       Amendment of Plan

            The Company, acting through the Board of Directors reserves the
            right at any time, and from time to time, and retroactively if
            deemed necessary or appropriate, to amend in whole or in part any or
            all of the provisions of the Plan.

            Effective as of November 21, 1994 through January 25, 1998, the
            Committee or its delegate may also amend the Plan provided that any
            amendment adopted by the Committee may not have an impact on the
            Company's annual expense of more than five million dollars, except
            that such five million dollar limit shall not apply to amendments
            necessary to comply with laws or regulations.

            Effective January 26, 1998, the Committee, or its delegate, shall
            have the power to amend the Plan to:

            (i)   comply with laws and  regulations,  or as  otherwise  may be
                  desirable  when  prompted by a change in law or  regulation;
                  and

            (ii)  make any other change that may be necessary or desirable
                  provided any amendment adopted pursuant to this Section 11.01
                  shall not increase the Company's annual expense by more than
                  five (5) million dollars.

            However, no amendment shall make it possible for any part of the
            funds of the Plan to be used for, or diverted to, purposes other
            than the exclusive benefit of persons entitled to benefits under the
            Plan before the satisfaction of all liabilities with respect to
            them. No amendment shall be made which has the effect of decreasing
            the Accrued Pension of any Participant or of reducing the
            nonforfeitable percentage of the Accrued Pension of a Participant
            below the nonforfeitable percentage computed under the Plan as in
            effect on the date on which the amendment is adopted or, if later,
            the date on which the amendment becomes effective. In addition, if
            the Plan is amended to change the vesting requirements of Section
            5.05, any Participant with at least three Years of Vesting Service
            may elect to have his vested percentage computed under the Plan
            without regard to the amendment. Any action required or permitted to
            be taken by the Board of Directors or the Committee under the Plan
            shall be by resolution adopted by the Board of Directors or the
            Committee at a meeting held either in person or by telephone or
            other electronic means, or by unanimous written consent in lieu of a
            meeting.

11.02       Merger or Consolidation

            The Plan may not be merged or consolidated with, and its assets or
            liabilities may not be transferred to, any other plan unless each
            person entitled to benefits under the Plan would, if the resulting
            plan were then terminated, receive a benefit immediately after the
            merger, consolidation, or transfer which is equal to or greater than
            the benefit he would have been entitled to receive immediately
            before the merger, consolidation, or transfer if the Plan had then

<PAGE>

            terminated.

11.03       Additional Participating Employers

            (a)   With the consent of the  Company,  any  Affiliated  Employer
                  may adopt the Plan for its Eligible  Employees.  An Employer
                  adopting the Plan shall  compile and submit all  information
                  required by the  Committee  with  reference  to its Eligible
                  Employees.  An entity  will be  considered  to have  adopted
                  the  Plan  with  the  consent  of the  Company  if it  takes
                  significant  action that is consistent  with the adoption of
                  the Plan,  the Board of  Directors  or Committee is aware of
                  the action, and neither objects to the action.

            (b)   If an entity  adopts  the Plan in  accordance  with  Section
                  11.03(a),   or  if  any  persons  become   Employees  of  an
                  Employer as the result of merger or  consolidation or as the
                  result  of  acquisition  of all or  part  of the  assets  or
                  business of another company,  the Company shall determine to
                  what extent,  if any,  previous  service with the Affiliated
                  Employer shall be recognized  under the Plan, but subject to
                  the  continued  qualification  of the  trust for the Plan as
                  tax-exempt under the Code.

            (c)   Any Employer may withdraw its  participation  in the Plan on
                  appropriate  action by it. In that  event the  assets of the
                  Plan held on account of  Participants  in the employ of that
                  Employer,   and  any   unpaid   Accrued   Pensions   of  all
                  Participants  who have  separated  from the  employ  of that
                  Employer shall be determined by the Committee.  Those assets
                  shall be  distributed  as provided  in Section  11.05 if the
                  Plan is  terminated  or partially  terminated as a result of
                  the  withdrawal  of  such  Employer.   Otherwise,   Pensions
                  payable to Employees  employed by the  withdrawing  Employer
                  shall be payable to such  Employees when due under the Plan,
                  but  such  Employees   shall  not  be  considered   Eligible
                  Employees  from and  after the date of  withdrawal  by their
                  Employer.

11.04       Termination of Plan

            The Company may terminate the Plan for any reason at any time.

11.05       Distribution of Assets  Attributable to Retirement Income Benefits
            on Plan Termination

            In case of termination of the Plan, the rights of Participants to
            the benefits accrued under Articles 5 and 6 and Section 7.01 to the
            date of termination, to the extent then funded or guaranteed by the
            Pension Benefit Guaranty Corporation, if greater, shall be
            nonforfeitable. The portion of the funds of the Plan described in
            Section 9.04(a) shall be used for the exclusive benefit of persons
            entitled to benefits under the Plan as of the date of termination,
            except as provided in Section 4.03. However, any funds not required
            to satisfy all liabilities of the Plan for benefits shall be
            returned to the Employers. The Committee shall determine on the
            basis of actuarial valuation the share of the funds of the Plan
            allocable to each person entitled to benefits under the Plan in

<PAGE>

            accordance with Section 4044 of ERISA, or corresponding provision of
            any applicable law in effect at the time. In the event of a partial
            termination of the Plan, the provisions of this Section shall be
            applicable to the Participants affected by the partial termination.

11.06       Distribution   of  Assets   Attributable  to  Health  and  Welfare
            Benefits on Plan Termination

            In the event of termination of the Plan or of the provisions of
            Sections 7.03 and 7.04, that portion of the assets of the Plan
            allocable to the separate account referred to in Section 9.04(b) and
            attributable to contributions of Employer as to which the Plan (or
            Section 7.03 or 7.04) is terminating, after provision for such
            expenses as may be incurred, shall be applied toward making
            provision for the payment of health and welfare benefits in
            accordance with the benefit schedule in effect as of the date of
            termination, under the terms and conditions of Sections 7.03 and
            7.04.

            Upon the satisfaction of all liabilities under the Plan to provide
            such health and welfare benefits, any amount remaining in such
            separate account shall be returned to the appropriate Employers.

11.07       Notification of Termination

            Upon a termination of the Plan in accordance with this Article, the
            Committee shall notify the Employers, the Trustee, the Participants
            and all other necessary parties. The Committee shall thereafter
            continue the administration of the Plan for the purpose of winding
            up its affairs and may take all action reasonably required to
            accomplish such purpose.

11.08       Limitations  Concerning  Highly  Compensated  Employees  or Former
            Highly Compensated Employees

            (a)   Beginning  January 1, 1994,  the provisions of Section 11.09
                  shall apply (i) in the event the Plan is terminated,  to any
                  Participant who is a Highly  Compensated  Employee or former
                  Highly   Compensated   Employee  of  the   Employers  or  an
                  Affiliated  Company,  and (ii) in any  other  event,  to any
                  Participant  who  is  one  of  the  25  highest  compensated
                  employees  or former  highest  compensated  employees of the
                  Employers  or  an  Affiliated   Company  with  the  greatest
                  compensation in any Plan Year.

            (b)   For the period prior to January 1, 1994,  the  provisions of
                  Section 11.10 shall apply to any  Participant  who is one of
                  the  25  highest  paid  Employees  of  the  Employers  or an
                  Affiliated  Company  on any  "Commencement  Date"  and whose
                  anticipated  annual  Pension  provided  under  the  Plan  at
                  Normal Retirement Date exceeds $1,500.  "Commencement Date,"
                  for purposes of this Section,  means the  Effective  Date of
                  the Plan or the effective  date of any amendment to the Plan
                  that increases benefits.

11.09       Limitations Effective January 1, 1994

            (a)   Beginning  January 1, 1994,  the  provisions of this Section
                  11.09 shall  apply (a) in the event the Plan is  terminated,
                  to any Participant who is a Highly  Compensated  Employee or
                  former  Highly  Compensated  Employee of the Employers or an
                  Affiliated  Company,  and  (b) in any  other  event,  to any

<PAGE>

                  Participant  who  is  one  of  the  25  highest  compensated
                  employees of the Employer or an Affiliated  Company with the
                  greatest compensation in any Plan Year.

            (b)   The amount of the annual payments to any one of the
                  Participants to whom this Section applies shall not be greater
                  than the sum of:

                  (i)   An amount equal to the payments that would be made on
                        behalf of the Participant under a single life annuity
                        that is the Actuarial Equivalent of the sum of the
                        Participant's Accrued Pension and other benefits under
                        the Plan (other than a social security supplement); and

                  (ii)  The amount of the payments the Participant is entitled
                        to receive, if any, under a social security supplement.

            (c)   If, after payment of benefits to any one of the Participants
                  to whom this Section applies, the value of Plan assets equals
                  or exceeds 110% of the value of current liabilities (as that
                  term is defined in Section 412(1)(7) of the Code) of the Plan,
                  the provisions of this Section shall not be applicable to the
                  payment of benefits to such Participant.

            (d)   If the value of the Accrued Pension and other benefits of any
                  one of the Participants to whom this Section applies is less
                  than 1% of the value of current liabilities (as that term is
                  defined in Section 412(1)(7) of the Code) of the Plan, the
                  provisions of this Section shall not be applicable to the
                  payment of benefits to such Participant.

            (e)   If the Actuarial Equivalent of the Accrued Pension and other
                  benefits of any one of the Participants to whom this Section
                  applies does not exceed $3,500 (effective January 1, 1998,
                  $5,000), the provisions of this Section shall not be
                  applicable to the payment of benefits to such Participant.

            (f)   To  the  extent  permitted  by  law  and  the  Plan,  if any
                  Participant  to whom this Section  applies elects to receive
                  a  lump  sum   payment  in  lieu  of  his  benefit  and  the
                  provisions  of this Section are not met with respect to such
                  Participant,  the  Participant  shall be entitled to receive
                  his  benefit in full  provided he (i) agrees to repay to the
                  Plan any  portion  of the lump sum  payment  which  would be
                  restricted  by operation of the  provisions  of this Section
                  and  (ii)  provides  adequate  security  to  guarantee  that
                  repayment  in  accordance  with  rules  established  by  the
                  Internal Revenue Service.

            (g)   In the event the Plan is terminated, the restrictions of this
                  Section shall not be applicable if the benefits payable to any
                  highly compensated employee and any former highly compensated
                  employee are limited to an amount that is nondiscriminatory
                  under Section 401(a)(4) of the Code.

            (h)   If it is subsequently determined by statute, court decision
                  acquiesced in by the Commissioner of Internal Revenue Service,
                  or ruling by the Commissioner of Internal Revenue that the
                  provisions of this Section are no longer necessary to qualify
                  the Plan under the Code, this Section shall be ineffective
                  without the necessity of further amendment to the Plan.

11.10       Limitations Prior to January 1, 1994

<PAGE>

            (a)   For the period prior to January 1, 1994,  the  provisions of
                  this  Section  11.10 shall apply to any  Participant  who is
                  one of the 25 highest  paid  Employees  of the  Employers or
                  any Affiliated  Company on any  Commencement  Date and whose
                  anticipated  annual  Pension  provided  under  the  Plan  at
                  Normal Retirement Date exceeds $1,500.  "Commencement  Date"
                  means the Effective  Date of the Plan or the effective  date
                  of any amendment to the Plan that increases the benefits.

            (b)   If the Plan is terminated during the first 10 years after a
                  Commencement Date, the amount of the Pension provided under
                  the Plan for any one of the Participants to whom this Section
                  applies shall not be greater than the amount of Pension that
                  can be provided by the largest of the following amounts:

                  (i)   The Employer's contributions (or funds attributable to
                        those contributions) which would have been applied to
                        provide the Pension if the Plan as in effect on the date
                        before that Commencement Date had been continued without
                        change;

                  (ii)  $20,000;

                  (iii) The sum of (a) the Employer's contributions (or funds
                        attributable to those contributions) which would have
                        been applied to provide benefits for the Employee if the
                        Plan had been terminated on the day before that
                        Commencement Date, plus (b) an amount computed by
                        multiplying the smaller of $10,000 or 20 percent of the
                        average annual remuneration of that Employee during the
                        last five years of service by the number of years since
                        that Commencement Date; or

                  (iv)  The present value of the maximum benefit guaranteed by
                        the Pension Benefit Guaranty Corporation (PBGC), as
                        described in Section 4022(b)(3)(B) of ERISA, determined
                        on the basis of the actuarial assumptions promulgated by
                        the PBGC applicable as of the date of termination of the
                        Plan or the date Pension payments commence, whichever is
                        earlier.

            (c)   Any  excess   reserves   arising  by   application   of  the
                  provisions  of paragraph (b) above shall be used and applied
                  as  provided  in the  Plan  for  the  benefit  of the  other
                  persons  entitled to benefits  under the Plan.  However,  if
                  sufficient  funds are  available  to provide in full for the
                  Pensions  accrued for all other persons entitled to benefits
                  under  the  Plan to the  date of  termination  of the  Plan,
                  those  excess  reserves  shall  first be used and applied to
                  provide  the  accrued  Pensions  of the  Participants  whose
                  Pensions   have  been   restricted   by   operation  of  the
                  provisions of this Section 11.10.

                                   ARTICLE 12

                              TOP-HEAVY PROVISIONS

12.01       Top-Heavy Determination

            For purposes of this Section, the Plan shall be "top-heavy" with
            respect to any Plan Year if, as of the applicable determination
            date, the top-heavy ratio exceeds 60 per cent. The top-heavy ratio

<PAGE>

            shall be determined as of the applicable valuation date in
            accordance with Section 416(g)(3) and (4) of the Code utilizing the
            Plan actuarial assumptions (other than those used to calculate a
            lump sum) contained in the definition of "Actuarial Equivalent". For
            purposes of determining whether the Plan is top-heavy, the present
            value of Accrued Pensions under the Plan will be combined with the
            present value of accrued benefits or account balances under each
            other plan in the required aggregation group, and, in the Company's
            discretion, may be combined with the present value of accrued
            benefits or account balances under any other qualified plan in the
            permissive aggregation group.

            For purposes of determining the top-heavy ratio the present of
            Accrued Pensions under the Plan shall be combined with the present
            value of accrued pensions or account balances under each other
            qualified plan in the required aggregation group and, in the
            discretion of the Committee, may be combined with the present value
            of accrued pensions or account balances under any other qualified
            plan in the permissive aggregation group. Further, the present value
            of accrued pensions or account balances of all non-key employees who
            were key employees during any prior Plan Year shall not be taken
            into account and any distributions made during the five-year period
            ending on the Applicable Determination Date shall be taken into
            account. Also, the present value of accrued pension or account
            balances of Participants who have not performed services for an
            Employer or an Affiliated Employer during the five-year period
            ending on the applicable determination date shall not be taken into
            account.

12.02       Top-Heavy Minimum Benefits and Vesting

            The following provisions shall be applicable to Participants for any
            Plan Year with respect to which the Plan is top-heavy:

            (a)   The  Accrued  Pension  of a  Participant  who  is a  non-key
                  employee   shall  not  be  less  than  2%  of  his   average
                  Remuneration  multiplied  by  the  number  of his  Years  of
                  Vesting Service,  not in excess of 10, during the Plan Years
                  for  which  the  Plan is  top-heavy.  That  minimum  benefit
                  shall  be  payable  at  a  Participant's  Normal  Retirement
                  Date.  If  payments  commence  at  a  time  other  than  the
                  Participant's  Normal  Retirement  Date, the minimum Accrued
                  Pension  shall  be of  Actuarial  Equivalent  value  to that
                  minimum  benefit.   No  minimum  Accrued  Pension  shall  be
                  forfeitable   because   of  the   withdrawal   of   employee
                  contributions  under the Associated Plans or the Predecessor
                  Plans.

            (b)   A Participant shall vest in his Accrued Pension in accordance
                  with the following schedule in lieu of the provisions of
                  Section 5.05(a):
<TABLE>
<CAPTION>
                 <S>                      <C>

                  Years of Vesting Service
                  Less than 2                0%
                  2 but less than 3         20%
                  3 but less than 4         40%
                  4 but less than 5         60%
                  5 or more                100%
</TABLE>

<PAGE>

            (c)   The 1.25 multiplier in the definitions of "Defined Benefit
                  Plan Fraction" and "Defined Contribution Plan Fraction" in
                  Section 5.06 shall be reduced to 1.0, and the $51,875 dollar
                  amount in the definition of "Defined Contribution Plan
                  Fraction" in Section 5.06 shall be reduced to $41,500.

12.03       Top-Heavy Definitions

            The following definitions apply to the terms used in this Section:

            (a)   "applicable  determination  date"  means the last day of the
                  preceding Plan Year;

            (b)   "top-heavy ratio" means the ratio of:

                  (i)   The  present  value of the Accrued  Pension  under the
                        Plan for key employees to

                  (ii)  The present value of the Accrued Pension under the Plan
                        for all key employees and non-key employees.

            (c)   "key  employee"  means an  Employee  who is in a category of
                  employees  determined in accordance  with the  provisions of
                  Section  416(i)(l)  and (5) of the Code and any  regulations
                  thereunder  and,  where  applicable,  on  the  basis  of the
                  Employee's  Remuneration  from an Employer or an  Affiliated
                  Employer   as   defined   in  Section   5.06   except   that
                  Remuneration  for purposes of this Article  shall not exceed
                  the Maximum Compensation Limitation for any Plan Year;

            (d)   "non-key  employee"  means  any  Employee  who  is not a key
                  employee;

            (e)   "applicable valuation date" means the valuation date
                  coincident with or immediately preceding the last day of the
                  first Plan Year or the preceding Plan Year, whichever is
                  applicable;

            (f)   "average remuneration" means the average annual Remuneration
                  of a Participant for the five consecutive Years of Vesting
                  Service after December 31, 1983 during which he received the
                  greatest aggregate Remuneration from an Employer or an
                  Affiliated Employer, excluding any Remuneration for service
                  after the last Plan Year with respect to which the Plan is
                  top-heavy;

            (g)   "required aggregation group" means any other qualified plan(s)
                  of an Employer or an Affiliated Employer in which there are
                  participants who are key employees or which enable(s) the Plan
                  to meet the requirements of Section 401(a)(4) or 410 of the
                  Code; and

            (h)   "permissive aggregation group" means each plan in the required
                  aggregation group and any other qualified plan(s) of an
                  Employer or an Affiliated Employer in which all participants
                  are non-key employees, if the resulting aggregation group
                  continues to meet the requirements of Section 401(a)(4) and
                  410 of the Code.

12.04       Non-Top-Heavy Years

            If the Plan is top-heavy with respect to a Plan Year and ceases to
            be top-heavy for a subsequent Plan Year, the following provisions

<PAGE>

            shall be applicable:

            (a)      The Accrued Pension in any such subsequent Plan Year shall
                     not be less than the minimum Accrued Pension provided in
                     Section 12.02(a) computed as of the end of the most recent
                     Plan Year for which the Plan was top-heavy.

            (b)      If a Participant has completed three Years of Vesting
                     Service on or before the last day of the most recent Plan
                     Year for which the Plan was top-heavy, the vesting schedule
                     set forth in Section 12.02(b) shall continue to be
                     applicable.

            (c)      If a  Participant  has  completed  at least two, but less
                     than  three,  Years of  Vesting  Service on or before the
                     last day of the most  recent Plan Year for which the Plan
                     was  top-heavy,  the vesting  provisions  of Section 5.05
                     shall again be applicable;  provided however,  that in no
                     event  shall the  vested  percentage  of a  Participant's
                     Accrued  pension be less than the  percentage  determined
                     under  Section  12.02(b)  as of the  last day of the most
                     recent Plan Year for which the Plan was top-heavy.
<TABLE>
<CAPTION>
<S>                       <C>                <C>               <C>

                                   APPENDIX A

      Recognition of Service with Acquisitions or Predecessor Employers

                               Employment          *Years of          Years of
Participating Employer or Commencement Date   Vesting Service   Benefit Service
 Predecessor Employer      Effective Date      Effective Date    Effective Date

KHJ-TV, Inc. (prior to   Later of date of    Date of hire with  Later of date of
acquisition by K-CAL-TV, hire or January 1,  KHJ-TV, Inc.       hire or January
Inc.)                    1989                                   1, 1989

Vista Federal Credit     Later of date of    Date of hire with  Later of date of
Union (with respect to   hire or January 1,  Vista Federal      hire or January
Vista Federal Credit     1990                Credit Union       1, 1990
Union employees hired by
The Walt Disney Company
on January 1, 1990)

Associates and Ferren    Date of hire with   Date of hire with  Later of date of
(prior to acquisition by  Associates and      Associates and     hire or
Walt Disney Imagineering) Ferren              Ferren             March 19,1993

Marriott, Inc. (with     Date of hire with   Date of hire with  Later of date of
respect to cafeteria      Marriott, Inc.      Marriott, Inc.     hire with
employees working for                                           Marriott, Inc.or
Marriott, Inc. prior to                                          June 1, 1992
their hire by by Walt
Disney Imagineering on
June 1, 1992)

Anaheim Property,         Later of date       Later of date      Later of date
Inc. (d.b.a. Pan          of hire with        of hire with       of hire with
Pacific Hotel,            Anaheim             Anaheim            Anaheim
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>                       <C>                <C>               <C>
Anaheim (prior to         Property, Inc.      Property,          Property,
acquisition on            or  December        Inc. or            Inc. or
December 11, 1995)        11, 1994            December 11,       December 11,
                                              1994               1995

Dream Quest Images        Date of hire        Date of hire       Later of
prior to acquisition      by Dream Quest      by Dream           date of hire
on April 18, 1996         Images              Quest Images       by Dream Quest
                                                             Images or April
                                                                        18, 1996

Jumbo Pictures, Inc.      Date of hire        Date of hire       Later of date
(prior to                 by Jumbo            by Jumbo           of hire by
acquisition on            Pictures, Inc.      Pictures,          Jumbo
February 29, 1996)                            Inc.               Pictures, Inc.
                                                                    or September
                                                                        23, 1996

Golden West Baseball      Date of hire        Date of hire       Later of date
Company                   by Golden West      by Golden          of hire by
                          Baseball            West Baseball      Disney
                          Company and         Company and        Baseball
                          Anaheim             Anaheim            Enterprises,
                          Angels, LP,         Angels, LP,        Inc. or May
                          and                 and                16, 1996
                          recognition of      recognition
                          all Baseball        of all
                          Service             Baseball
                          (Baseball           Service
                          Service is as       (Baseball
                          defined in the      Service is as
                          Major League        defined in
                          Baseball            the Major
                          California          League
                          Angels'             Baseball
                          Pension Plan        California
                          For                 Angels'
                          Non-Uniformed       Pension Plan
                          Personnel)          For Non-Uniformed
                                              Personnel)

City of Anaheim           Date of hire        Date of hire       Later of date
(with respect to          by City of          by City of         of hire or
City of Anaheim           Anaheim             Anaheim            October 1,
employees hired on                                               1996
October 1, 1996 by
Disney Baseball
Enterprises, Inc.
for stadium
operations

Carlson Travel (with      Later of date       Date of hire       Later of date
respect to Carlson        of hire by          by Carlson         of hire by
Travel employees          Carlson Travel      Travel             Carlson
hired on July 24,         or July 24,                            Travel or
1995 by The Walt          1994                                   July 24, 1994
Disney Company)

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>                       <C>                <C>               <C>
                               Employment          *Years of          Years of
Participating Employer or Commencement Date   Vesting Service    Benefit Service
   Predecessor Employer    Effective Date      Effective Date     Effective Date
ABC, Inc. and its          Date of hire        From date of       As provided
subsidiaries               with ABC, Inc.      hire with          in Appendix C
                           and                 ABC, Inc. and
                           subsidiaries        subsidiaries

</TABLE>

*  Vesting Service recognized while an Employee of a Predecessor Employer (prior
   to employment with an Employer or an Affiliated Employer) or while an
   Employee of an Employer prior to the Employer's adoption of this Plan is
   recognized solely for the purposes of Section 5.05.

                                   APPENDIX B

                Year of Benefit Service for 2001 Plan Year

Any Participant in the Plan who also participated in and terminated his
employment in 2001 under:

(i)   The Walt Disney Company 2001 Voluntary  Separation  Plan - Directors and
      Above; or

(ii)  The Walt Disney Company 2001 Voluntary Separation Plan - Managers; or

(iii) The Walt Disney  Company 2001 Voluntary  Separation  Plan - Salaried and
      Hourly Employees (collectively "Separation Plans")

is deemed to have one "Year of Benefit Service" under the Plan for the 2001 Plan
Year if such Participant had not already earned one Year of Benefit Service for
the 2001 Plan Year.

                                   APPENDIX C

                        Transfer of Participants from the
                      ABC, Inc. Retirement Plan to the Plan

This Appendix C provides special provisions for Eligible Employees who transfer
to an employment classification on or after February 9, 1996, providing
eligibility in this Plan from an employment classification providing eligibility
for participation in the ABC, Inc. Retirement Plan ("Transferred ABC
Participants").

C.1   Eligibility and Vesting Service Credit. Each Transferred ABC Participant
      who becomes a Participant in the Plan shall, for eligibility to
      participate and Years of Vesting Service purposes under the Plan, be
      credited with all service credited to such Transferred ABC Participants
      for eligibility and vesting purposes under the ABC, Inc. Retirement Plan
      immediately prior to transfer to this Plan.

C.2   Benefit  Calculation.  The  Accrued  Pension  of  each  Transferred  ABC
      --------------------
      Participant shall be the greater of:
                               -------

<PAGE>

      (1)   The Accrued Pension under the Plan using all years of accrual
            service under the ABC, Inc. Retirement Plan prior to transfer to
            this Plan as Years of Benefit Service under this Plan, but offset by
            the Transferred ABC  Participant's  accrued benefit under the ABC,
            Inc. Retirement Plan; or
      (2)   The Accrued Pension calculated under the Plan using only Years of
            Benefit Service while an Eligible Employee under the Plan.

C.3   Other Welfare Benefits. For purposes of Section 7.03, a Transferred ABC
      Participant's service for vesting purposes and employment commencement
      date under the ABC, Inc. Retirement Plan shall be considered in
      determining eligibility for the other welfare benefits under such Section
      7.03.

                                   APPENDIX D

          Sale of Vista United Telecommunications and K-CAL-TV, Inc.
          ----------------------------------------------------------

(a)   Vista United Telecommunications

      Certain Employees employed by Vista United Telecommunications terminated
      employment under the Plan as a consequence of the sale of Vista United
      Telecommunications on February 28, 2001. Any such Employee entitled to
      benefits under the terms of the Plan as of the date of such termination of
      employment remains entitled to receive such benefits under the terms of
      the Plan.

(b)   K-CAL-TV, Inc.
      -------------
      All Employees employed by K-CAL-TV, Inc. terminated employment under the
      Plan as a consequence of the sale of K-CAL-TV, Inc. on November 23, 1996.
      Any such Employee entitled to benefits under the terms of the Plan as of
      the date of such termination of employment remains entitled to receive
      such benefits under the terms of the Plan.<PAGE>

                                                                 EXHIBIT 10(b)

                 DISNEY SALARIED SAVINGS AND INVESTMENT PLAN

                  As Amended and Restated (December 1, 2001)

                            Effective January 1, 1997

                                    PREAMBLE

The Disney Salaried Savings and Investment Plan (the "Plan") was originally
adopted, effective May 1, 1984, by The Walt Disney Company ("Company") by
authorization of the Board of its predecessor, Walt Disney Productions, to
provide a retirement savings vehicle for certain salaried employees of the
Company and such other participating companies as approved by the Company as
described in Section 12.03. The Plan was amended thereafter from time to time.

The Plan, as set forth herein and as amended and restated effective January 1,
1997, is intended to qualify as a profit sharing plan with a cash or deferred
arrangement under Sections 401(a) and 401(k) of the Internal Revenue Code
("Code"). Although the Plan is intended to qualify as a profit sharing plan,
employer contributions hereunder may be made without regard to profits.

Pursuant to Article 12, the Company shall have the right to amend or terminate
the Plan at any time without notice to the Participants or Beneficiaries if the
Company so decides in its sole and absolute discretion.

The provisions of this Plan shall apply only to an employee who terminates
employment with the employers on or after the Effective Date. A former
employee's eligibility for benefits and the amount of benefits, if any, payable
to or on behalf of a former employee shall be determined in accordance with the
provisions of the Plan in effect on the date his employment terminated. The
benefit payable to or on behalf of a Participant included under the Plan in
accordance with the following provisions shall not be affected by the terms of
any amendment to the Plan adopted after such Participant's employment
terminates, unless the amendment expressly provides otherwise.

                                    ARTICLE 1
                                   Definitions

1.01  "Adjustment Factor" means any of the cost of living adjustment factors
      prescribed by the Secretary of the Treasury under Section 415(d) of the
      Code applied to such items and in such manner as the Secretary shall
      provide.

1.02  "Affiliated  Employer" means any company not  participating  in the Plan
      that is:

      (a)   a member of a controlled group of corporations as defined in Section
            414(b) of the Code (determined under Code Section 1563(a) without
            regard to Code Sections 1563(a)(4) and (e)(3)(C)) with the Company;
            or

      (b)   any trade or  business  under  common  control (as defined in Code
            Section 414(c)) with the Company; or

      (c)   a member  of an  affiliated  service  group  (as  defined  in Code
            Section 414(m)) that includes the Company; or

<PAGE>

      (d)   any other entity required to be aggregated with the Company pursuant
            to regulations under Code Section 414(o).

      Notwithstanding the foregoing, for purposes of Sections 1.29 and 14.06,
      the definitions in Sections 414(b) and (c) of the Code shall be modified
      by substituting the phrase "more than 50 percent" for the phrase "at least
      80 percent" each place it appears in Section 1563(a)(1) of the Code.

1.03  "After-Tax Account" means the account maintained for a Participant to
      record his after-tax contributions made to the Plan prior to January 1,
      1987 and adjustments relating thereto.

1.04  "Aggregate Account" or "Account" means the records, including subaccounts,
      maintained by the Committee in the manner provided hereunder to determine
      the interest of each Participant in the assets of the Plan and may refer
      to any or all of the accounts that a Participant may have under this Plan,
      namely a Tax-Deferred Account, a Matching Account, a Rollover Account, a
      Special Account or an After-Tax Account.

1.05  "Alternate Payee" means any spouse, former spouse, child or other
      dependent of a Participant who is recognized by a qualified domestic
      relations order as having a right to receive all, or a portion, of the
      benefits payable under the Plan with respect to a Participant.

1.06  "Authorized Leave of Absence" means an absence authorized by an Employer
      or an Affiliated Employer under its standard personnel practices as
      applied in a uniform and nondiscriminatory manner to all persons similarly
      situated, provided that the Employee resumes employment with the Employer
      or an Affiliated Employer or retires within the period specified in the
      Authorized Leave of Absence. An Employer or an Affiliated Employer is not
      required to authorize any absence due to a strike, a walkout or a lockout
      as an Authorized Leave of Absence. An absence due to service in the
      Uniformed Services of the United States shall be considered an Authorized
      Leave of Absence provided that the Employee complies with all of the
      requirements of federal law in order to be entitled to reemployment and
      provided further that the Employee returns to employment with an Employer
      or an Affiliated Employer within the period provided by such law.

1.07  "Beneficiary" means any person, persons or entity named by a Participant
      by written designation filed with the Committee to receive benefits
      payable in the event of the Participant's death, provided that if the
      Participant is married and he designates someone other than his spouse as
      the Beneficiary, the Participant must file a Spousal Consent with the
      Committee. If any Participant fails to designate a Beneficiary, or if the
      Beneficiary designated by a deceased Participant dies before the
      Participant, then the Beneficiary shall be deemed to be the Participant's
      surviving spouse or, if none, then the benefits shall be paid in
      accordance with the following order of priority:

      (a) the Participant's children (equally), or if none (b) the Participant's
      parents (equally), or if none (c) the Participant's brothers and sisters
      (equally), or if none (d) the Participant's estate.

1.08  "Board"  or "Board of  Directors"  means the Board of  Directors  of The
      Walt Disney Company.

1.09  "Break in Service" means an Eligibility Computation Period during which an
      Employee is credited with less than 501 Hours of Service. Solely for the
      purpose of determining if an Employee incurred a Break in Service, Hours

<PAGE>

      of Service shall also include hours granted, on the basis of forty-five
      (45) hours per week, for periods during which an Employee is on an
      Authorized Leave of Absence.

      If an Employee is absent from work because of such Employee's pregnancy,
      the birth of a child, placement of an adopted child, or caring for an
      adopted or natural child following birth or placement, the Employee shall
      not be treated as having incurred a Break in Service in the Eligibility
      Computation Period in which the absence begins or, if the Employee would
      not otherwise have suffered a Break in Service during that Eligibility
      Computation Period, in the next following Eligibility Computation Period.
      The Committee may require that an Employee file a written request to
      receive Hours of Service credit under this paragraph. Unless otherwise
      determined by the Committee or an Employer's personnel practices, an
      Employee who is absent from work for the reasons described in this
      paragraph shall be deemed to have terminated employment for all purposes
      of this Plan other than the special Break in Service rule in this
      paragraph.

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

1.11  "Committee" means the Investment and Administrative Committee of The Walt
      Disney Company Sponsored Qualified Benefit Plans and Key Employees
      Deferred Compensation and Retirement Plan.

1.12  "Company" means The Walt Disney Company and its successors.

1.13  "Company Stock" means common stock of the Company.

1.14  "Company Stock Fund" means the Investment Fund established pursuant to
      Sections 6.01(a) and 6.01(c).

1.15  "Compensation" means an Employee's base pay (excluding overtime, bonuses,
      relocation reimbursement, stock options, or other extraordinary payments,
      as determined by the Committee) paid during the calendar year by the
      Employer in return for the Employee's services. Compensation does not
      include:

      (a)   Employer contributions to any pension plan other than contributions
            caused by an Employee's salary deferral reduction pursuant to
            Section 401(k) of the Code;

      (b)   Employer contributions to this Plan or any other plan of deferred
            compensation maintained by an Employer other than Tax-Deferred
            Contributions;

      (c)   Fringe benefits not taxable to the Employee;

      (d)   Payments  to or on behalf of an  individual  after he is no longer
            an Employee;

      (e)   Salary  deferral  reductions  pursuant  to  a  cafeteria  plan  as
            described in Section 125 of the Code;

      (f)   Imputed life insurance and all other forms of imputed income.

      Compensation shall not, for Plan purposes, exceed the Maximum Compensation
      Limitation.

1.16  "Covered Employee" means an Employee who receives Compensation in the form
      of a salary (as distinguished from hourly-paid Employees), whether or not

<PAGE>

      such Employee is exempt for wage-and-hour-law purposes.

      (a)   Notwithstanding the above, an Employee as described in any of the
            following paragraphs shall not be a Covered Employee, except to the
            extent the Company elects, by written notice, to extend Plan
            participation to such Employee:

           (i)    an Employee who is represented by a union unless the union and
                  the Employer entered into a collective bargaining or other
                  agreement that provides that the individual may participate in
                  the Plan;

          (ii)    an Employee who is employed by an Employer pursuant to an oral
                  or written agreement that provides that the individual shall
                  not be eligible to participate in the Plan;

         (iii)    an Employee who is a "Leased Employee";

          (iv)    an Employee who is a non-resident alien with no United States
                  source income; and

           (v)    an Employee designated by an Employer as employed in a
                  division or group, or at a site that the Employer determined,
                  on a nondiscriminatory basis, shall not be eligible to
                  participate in the Plan.

      (b)   For  purposes  of  this  definition  of  "Covered  Employee,"  and
            notwithstanding  any other provisions of the Plan to the contrary,
            individuals  who  are  not  classified  by  the  Company,  in  its
            discretion,  as employees  under Code Section  3121(d)  (including
            but not  limited  to,  individuals  classified  by the  Company as
            independent   contractors  and   non-employee   consultants)   and
            individuals who are classified by the Company,  in its discretion,
            as   employees  of  any  entity  other  than  the  Company  or  an
            Affiliated   Employer  do  not  meet  the  definition  of  Covered
            Employee and are ineligible  for benefits under the Plan,  even if
            the  classification  by the Company is determined to be erroneous,
            or is retroactively  revised.  In the event the  classification of
            an  individual  who is  excluded  from the  definition  of Covered
            Employee  under  the  preceding   sentence  is  determined  to  be
            erroneous  or  is  retroactively  revised,  the  individual  shall
            nonetheless  continue  to  be  excluded  from  the  definition  of
            Covered  Employee  and shall be  ineligible  for  benefits for all
            periods   prior   to  the   date  the   Company   determines   its
            classification  of  the  individual  is  erroneous  or  should  be
            revised.   The  foregoing  sets  forth  a  clarification   of  the
            intention of the Company  regarding  participation in the Plan for
            any Plan Year,  including  Plan Years  prior to the  amendment  of
            this definition of "Covered Employee."

1.17  "Effective Date" means January 1, 1997, the date this amended and restated
      Plan becomes effective. The Plan was originally effective May 1, 1984.

1.18  "Eligibility Computation Period" means, with respect to an Employee, the
      applicable of (a) or (b) as follows:

      (a)   the 12-consecutive-month period commencing on the Employee's
            Employment Commencement Date in which he is credited with at least
            1,000 Hours of Service; or

<PAGE>

      (b)   the Plan Year:

      In the case of an Employee who is not credited with at least 1,000 Hours
      of Service in the 12-month period described in Section 1.18(a) above, a
      Plan Year, commencing with the Plan Year beginning immediately following
      the Employee's Employment Commencement Date, in which he has been credited
      with at least 1,000 Hours of Service.

      An Employee's Eligibility Computation Periods are subject to and may be
      ignored pursuant to the Rule of Parity.

      Notwithstanding the foregoing, individuals who (i) became Employees as a
      result of the acquisition of Anaheim Property, Inc. (d.b.a.) as Pan
      Pacific Hotel Anaheim or the entity commonly know as the California
      Angeles, or (ii) were employees of Carlson Travel dedicated to the Disney
      account who became Employees as a result of an immediate transfer from
      Carlson Travel shall be deemed to have completed one Eligibility
      Computation Period on their Employment Commencement Date, provided that
      they had completed a least one year of prior service with their relevant
      employers on such date.

1.19  "Eligible Employee" means a Covered Employee who attained age eighteen
      (18) and completed one Eligibility Computation Period.

1.20  "Employee" means any person receiving Compensation for services rendered
      to an Employer or an Affiliated Employer, whose Compensation is subject to
      withholding of United States federal income tax and/or for whom Social
      Security contributions are made by an Employer, including any Leased
      Employee but excluding any person who serves solely as a director or
      independent contractor. In determining whether an individual is an
      Employee for purposes of the Plan, the individual shall only be classified
      as an Employee with respect to a period of time only if the Employer
      treated the individual as a common law employee for payroll tax purposes
      for such period of time, regardless of any later determination that such
      individual was or may have been a common law employee during such period.
      Notwithstanding the foregoing, a Leased Employee, although not treated as
      a common law employee for payroll tax purposes by an Employer, shall be
      considered an Employee under the Plan.

      Employee excludes the following:

      (a)   an individual who serves solely as a director or independent
            contractor or an individual whom the Employer regards to be an
            independent contractor;

      (b)   an individual who is not classified as an Employee by an Employer,
            but who is treated as an Employee by reason of being treated as a
            "common law" employee of the Employer pursuant to the standards
            prescribed by Internal Revenue Service Ruling 87-41 or any successor
            thereto;

      (c)   an  individual  whose basic  Compensation  for  services on behalf
            of an Employer is not paid directly by an Employer; and

      (d)   an individual working for a company providing goods or services
            (including temporary employee services) to an Employer whom the

<PAGE>

            Employer does not regard to be a common law employee of the
            Employer.

1.21  "Employer" means the Company and any subsidiary or affiliate of the
      Company that adopts this Plan in accordance with Section 12.03.

1.22  "Employment Commencement Date" means the first date as of which an
      Employee is credited with an Hour of Service for an Employer or an
      Affiliated Employer.

1.23  "Enrollment Date" means the first day of the first payroll period after an
      Employee becomes an Eligible Employee, or the beginning of any payroll
      period thereafter, as of which the Eligible Employee elects to commence
      participation in the Plan in accordance with Section 2.02.

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

1.25  "Highly Compensated Employee" means for a Plan Year commencing on or after
      January 1, 1997, any Employee of the Employer or an Affiliated Employer
      (whether or not eligible for participation in the Plan) who:

      (a)   was a 5 percent owner (as defined in Section 414(q)(2) and Section
            416(i) of the Code) for such Plan Year or the prior Plan Year, or

      (b)   for the preceding  Plan Year received  Statutory  Compensation  in
            excess  of  $80,000,  and was  among  the  highest  20 percent  of
            employees  for the  preceding  Plan Year when ranked by  Statutory
            Compensation  paid for  that  year,  excluding,  for  purposes  of
            determining  the number of such  employees,  such Employees as the
            Committee  may  determine  on  a  consistent   basis  pursuant  to
            Section 414(q)  of the  Code.  The  $80,000  dollar  amount in the
            preceding  sentence  shall be  adjusted  from time to time for the
            cost of living in accordance with Section 414(q) of the Code.

      Notwithstanding the foregoing, Employees who are nonresident aliens and
      who receive no earned income from the Employer or an Affiliated Employer
      that constitutes income from sources within the United States shall be
      disregarded for all purposes of this Section.

      The Employer's top-paid group election as described above shall be used
      consistently in determining Highly Compensated Employees for determination
      years of all employee benefit plans of the Employer and Affiliated
      Employers to which Section 414(q) of the Code applies (other than a
      multiemployer plan) that begin with or within the same calendar year,
      until such election is changed by Plan amendment in accordance with IRS
      requirements. Notwithstanding the foregoing, the consistency provision in
      the preceding sentence shall not apply to the Plan Year beginning in 1997
      and, for Plan Years beginning in 1998 and 1999, shall apply only with
      respect to all qualified retirement plans (other than a multiemployer
      plan) of the Employer and Affiliated Employers. The provisions of this
      Section shall be further subject to such additional requirements as shall
      be described in Section 414(q) of the Code and its applicable regulations,
      which shall override any aspects of this Section inconsistent therewith.

1.26  "Hour of Service"  means,  with  respect to any  applicable  computation
      period:

      (a)   each hour for which an Employee is paid or is entitled to payment
            for the performance of duties for an Employer or an Affiliated
            Employer during the applicable computation period;

      (b)   each hour for which an Employee is paid, or is entitled to payment,

<PAGE>

            by an Employer or an Affiliated Employer on account of a period
            during which no duties are performed (regardless of whether the
            employment relationship has terminated) because of vacation,
            holiday, illness, incapacity (including disability), layoff, jury
            duty, military duty, or leave of absence, but:

            (i)   no more than 501 Hours of Service are to be credited under
                  this subsection (b) to an Employee for any single continuous
                  period during which he performs no duties (whether or not the
                  period occurs in a single computation period);

            (ii)  an hour is not credited where an individual directly or
                  indirectly is paid or is entitled to payment because of a
                  period during which no duties are performed if that payment is
                  made or is due under a plan maintained solely for the purpose
                  of complying with applicable workers' compensation or
                  unemployment compensation or disability insurance laws; and

            (iii) Hours of Service will not be credited for a payment that
                  solely reimburses an Employee for medical or medically related
                  expenses incurred. For purposes of his subsection (b), a
                  payment is deemed to be made by or be due from an Employer or
                  an Affiliated Employer regardless of whether it is made by or
                  due from that entity directly or indirectly through a trust
                  fund or insurers (among others) to which that entity
                  contributes or pays premiums and regardless of whether
                  contributions made or due to the trust fund or insurer or
                  other funding vehicle are for the benefit of particular
                  individuals or are on behalf of a group of individuals in the
                  aggregate.

      (c)   each  hour for which  back  pay,  irrespective  of  mitigation  of
            damages,  is  either  awarded  or  agreed  to  by an  Employer  or
            Affiliated  Employer.  The  same  Hours  of  Service  must  not be
            credited  both  under  subsection  (a) or (b) and also  under this
            subsection  (c).  Thus,  for  example,  if an Employee  receives a
            back-pay award  following a  determination  that he was paid at an
            unlawful rate for Hours of Service previously credited,  he is not
            entitled  to  additional  credit  for the same  Hours of  Service.
            Crediting  of Hours of Service  for back pay  awarded or agreed to
            with respect to periods  described in subsection (b) is subject to
            the  limitations  set forth in that  subsection.  For example,  no
            more than 501 Hours of Service are  required  to be  credited  for
            payment of back pay,  to the  extent  that the back pay is awarded
            or agreed to for a period of time  during  which an  Employee  did
            not or would not have performed duties.

      (d)   For  determining  Hours of  Service  for  reasons  other  than the
            performance  of duties,  the  special  rule  provided in 29 C.F.R.
            Section  2530.200b-2(b)  is incorporated  by reference.  That rule
            provides  that Hours of Service  are  credited on the basis of the
            number of hours in the  Employee's  regular  work  schedule or, in
            the  case of a  payment  not  calculated  in  units  or  time,  by
            dividing  the payment in question  by the  Employee's  most recent
            hourly rate of pay.

      (e)   For purposes of crediting Hours of Service to computation periods,
            the special rule provided in 29 C.F.R. Section 2530.200b-2(c) is
            incorporated by reference. That rule provides that Hours of Service
            are credited to an Employee in the computation periods covered by
            the Employee's regular work schedule during the period of

<PAGE>

            nonperformance.

      (f)   The determination of Hours of Service must be made from records of
            hours worked and hours for which payment is made or due.

      (g)   For purpose of determining Hours of Service credited each Employee
            must be credited with at least forty-five (45) Hours of Service for
            each week for which he would be required to be credited with at
            least one Hour of Service under subsection (a).

      (h)   An Employee who has an Authorized Leave of Absence due to military
            service shall receive Hours of Service credit in accordance with
            applicable federal veteran's laws.

1.27  "Income" means the net gain or loss of the Trust Fund from investments, as
      reflected by interest payments, dividends, realized and unrealized gains
      and losses on securities, other investment transactions and expenses paid
      from the Trust Fund. In determining the Income of the Trust Fund as of any
      date, assets shall be valued on the basis of their then fair market value.

1.28  "Investment Fund" means the one or more investment funds provided pursuant
      to Section 6.01(a) hereof.

1.29  "Leased Employee" means any person (other than a person treated as a
      common law employee of the Employer) who, pursuant to an agreement between
      the Employer and any other person ("leasing organization"), performed
      services for the Employer or any related persons determined in accordance
      with Section 414(n)(6) of the Code on a substantially full-time basis for
      a period of at least one year and such services are performed under the
      primary direction of or control by the Employer. In the case of any person
      who is a Leased Employee before or after a period of service as an
      Employee, the entire period during which he performed services as a Leased
      Employee shall be counted as service as an Employee for all purposes of
      the Plan, except that he shall not, by reason of that status, become a
      Participant of the Plan.

1.30  "Matching Account" means the account maintained for a Participant to
      record Matching Contributions made on his behalf pursuant to Section 3.02
      and adjustments relating thereto.

1.31  "Matching Contribution" means the Employer Matching Contribution made to
      the Plan on behalf of a Participant pursuant to Section 3.02.

1.32  "Maximum Compensation Limitation" means, commencing January 1, 1994,
      $150,000 per year, adjusted from time to time for the cost of living in
      accordance with Code Section 401(a)(17)(B). If for any calendar year after
      1994, the cost-of-living adjustment described in the following sentence is
      equal to or greater than $10,000, then the Maximum Compensation Limitation
      (as previously adjusted hereunder) for any Plan Year beginning in any
      subsequent calendar year shall be increased by the amount of such
      cost-of-living adjustment, rounded to the next-lowest multiple of $10,000.
      The cost-of-living adjustment shall equal the excess of (i) $150,000
      increased by the adjustment made under Section 415(d) of the Code for the
      calendar year, except that the base period for purposes of Section
      415(d)(1)(A) of the Code shall be the calendar quarter beginning October
      1, 1993, over (ii) the Maximum Compensation Limitation in effect for the
      Plan Year beginning in the calendar year.

1.33  "Participant" means any individual on whose behalf any Accounts are
      maintained under the Plan, the balance of which has not been distributed
      in full to him or his Beneficiary.

<PAGE>

1.34  "Plan" means the Disney Salaried Savings and Investment Plan as set forth
      in this document, and as it may be amended from time to time.

1.35  "Plan Year" means the calendar year, except for the short year from May 1,
      1984 through December 31, 1984, which was the first year of the Plan.

1.36  "Qualified Domestic Relations Order" means a domestic relations order that
      creates or recognizes the existence of an Alternate Payee's right to, or
      assigns to an Alternate Payee the right to, receive all or portion of the
      benefits payable with respect to a Participant. The order must (a) be a
      judgment, decree or order (including the approval of a property settlement
      agreement) that is made pursuant to a state domestic relations law, (b)
      relate to the provision of child support, alimony payments or marital
      property rights for the benefit of a spouse, former spouse, child, or
      other dependent of the Participant, and (c) otherwise meets the
      requirements of Section 206(d)(3) of ERISA and Section 414(p) of the Code,
      as determined by the Committee.

1.37  "Reemployment Commencement Date" means the date an Employee first is
      credited with an Hour of Service following a prior Break in Service.

1.38  "Rollover Account" means the account maintained for a Participant to
      record his Rollover Contributions to the Trust Fund pursuant to Section
      3.05 and adjustments relating thereto.

1.39  "Rollover Contribution" means a Rollover Contribution made to the Plan by
      a Participant pursuant to Section 3.05.

1.40  "Rule of Parity" means a rule pursuant to which an Employee who incurs a
      Break in Service shall have his Eligibility Computation Periods that occur
      prior to such Break in Service ignored or restored. If an Employee incurs
      a Break in Service prior to becoming eligible to participate hereunder,
      his Eligibility Computation Periods prior to such Break in Service shall
      not be taken into account if the number of consecutive one-year Breaks in
      Service equals or exceeds the greater of the Employee's Eligibility
      Computation Periods completed prior to the first such Break in Service or
      five. Eligibility Computation Periods previously eliminated by a prior
      application of this paragraph shall not be counted for purposes of the
      this subsection.

1.41  "Section 402(g) Limit" means $7,000 (subject to adjustment in accordance
      with Code Section 402(g)(5) each calendar year) for any taxable year of a
      Participant.

1.42  "Special Account" means the account maintained for a Participant to record
      Special Contributions made on his behalf pursuant to Section 3.03, and
      adjustments relating thereto.

1.43  "Special Contribution" means the Employer Special Contribution made to the
      Plan on behalf of a Participant pursuant to Section 3.03.

1.44  "Spousal Consent" means written consent given by a Participant's spouse to
      an election made by the Participant of a specified form of benefit or a
      designation by the Participant of a specified Beneficiary other than the
      spouse. The specified form or specified beneficiary shall not be changed
      unless further Spousal Consent is given, unless the Spouse expressly
      waives the right to consent to any future changes. Spousal Consent shall
      be duly witnessed by a Plan representative or notary public and shall
      acknowledge the effect on the spouse of the Participant's election. The
      requirement for Spousal Consent may be waived by the Committee if it is

<PAGE>

      established to its satisfaction that there is no spouse, or that the
      spouse cannot be located, or because of such other circumstances as may be
      established by applicable law. Spousal Consent shall be applicable only to
      the particular spouse who provides such consent.

1.45  "Statutory Compensation" means the wages, salaries, and other amounts paid
      in respect of an Employee for services actually rendered to an Employer or
      an Affiliated Employer, including by way of example overtime, bonuses, and
      commissions, but excluding deferred compensation, stock options, and other
      distributions that receive special tax benefits under the Code. For
      purposes of determining Highly Compensated Employees under Section 1.25
      and key employees under Article 13, Statutory Compensation shall include
      amounts contributed by the Employer pursuant to a salary reduction
      agreement that are not includable in the gross income of the Employee
      under Section 125, (effective January 1, 2001, 132(f)), 402(e)(3), 402(h),
      or 403(b) of the Code. For all other purposes, Statutory Compensation also
      shall include the amounts referred to in the preceding sentence, unless
      the Committee directs otherwise for a particular Plan Year. Statutory
      Compensation for a Plan Year shall not exceed the Maximum Compensation
      Limitation, provided that such Limitation shall not be applied in
      determining Highly Compensated Employees under Section 1.25.

1.46  "Tax-Deferred Account" means the account maintained for a Participant to
      record contributions made on his behalf by an Employer pursuant to a
      Tax-Deferred Contribution agreement described in Section 3.01 and
      adjustments relating thereto.

1.47  "Tax-Deferred Contributions" means an Employer's contribution made to the
      Plan on behalf of a Participant pursuant to a Tax-Deferred Contribution
      agreement described in Section 3.01.

1.48  "Trust Agreement" means the trust agreement or agreements that may be
      established from time to time hereunder and as the same may from time to
      time be amended and/or restated.

1.49  "Trust Fund" means all money or other property that is held by the
      Trustee, pursuant to the terms of the Trust Agreement.

1.50  "Trustee" means the entity or its successor acting as the trustee under
      the Trust Agreement, or any other trustee or trustees designated in any
      trust agreement or agreements that may be established to carry out the
      purposes of this Plan.

1.51  "Valuation Date" means the date as of which the Trustee shall determine
      the value of the assets in the Trust Fund for purposes of enabling the
      Committee or its delegate to determine the value of the Aggregate
      Accounts.

                                    ARTICLE 2
                          Eligibility and Participation

2.01  Eligibility

      Only Eligible Employees may participate in this Plan.

2.02  Participation

      Any individual who was a Participant in the Plan immediately preceding the
      Effective Date shall be considered a Participant on the Effective Date.
      Thereafter, an Eligible Employee shall become a Participant as of the
      first Enrollment Date after he:

<PAGE>

      (a)   authorizes  his  Tax-Deferred  Contributions  in  accordance  with
            Section 3.01;
      (b)   names a Beneficiary; and
      (c)   selects investment fund(s) pursuant to Article 6.

      The Company may, in its sole and absolute discretion, waive any or all of
      the participation requirements set forth above for the Employees of any
      Employer.

2.03  Reemployment of Former Employees and Former Participants

      Any person employed by an Employer as an Eligible Employee who was
      previously a Participant shall be immediately eligible to become a
      Participant in the Plan. Any other person reemployed by an Employer may
      participate in the Plan on meeting the requirements of Section 2.02.

2.04  Reemployment After Military Leave

       (a)  Notwithstanding any provision of this Plan to the contrary,
            contributions, benefits, and service credit with respect to
            qualified uniformed service duty will be provided in accordance with
            Section 414(u) of the Code. In such a case, without regard to any
            limitations on contributions set forth, a Participant who is
            reemployed on or after August 1, 1990 because of a period of service
            in the Uniformed Services of the United States may elect to
            contribute to the Plan the Tax-Deferred Contributions that could
            have been contributed to the Plan in accordance with the provisions
            of the Plan had he remained continuously employed by the Employer
            throughout such period of absence ("make-up contributions"). The
            amount of make-up contributions shall be determined on the basis of
            the Participant's Compensation in effect immediately prior to the
            period of absence and the terms of the Plan at such time. Any
            Tax-Deferred Contributions so determined shall be limited as
            provided in Articles 3, 4 and 14 with respect to the Plan Year or
            Years to which such contributions relate rather than to the Plan
            Year in which payment is made. Any payment to the Plan described in
            this paragraph shall be made during the applicable repayment period.
            The repayment period shall equal three times the period of absence,
            but not longer than five years, and shall begin on the latest of:
            (i) the Participant's date of reemployment, (ii) October 13, 1996,
            or (iii) the date the Employer notifies the Employee of his rights
            under this Section. Earnings (or losses) on make-up contributions
            shall be credited commencing with the date the make-up contribution
            is made in accordance with the provisions of Article 6.

       (b)  With respect to a Participant who makes the election described in
            paragraph (a)    above,   the   Employer   shall   make   Matching
            Contributions  and, if applicable,  Special  Contributions  on the
            make-up  contributions  in the amount  described in Articles 3, 4,
            and 14,  respectively,  as in  effect  for the Plan  Year to which
            such   make-up    contributions    relate.    Employer    Matching
            Contributions and if applicable,  Special Contributions under this
            paragraph   shall  be  made   during  the  period   described   in
            paragraph (a)   above.    Earnings   (or   losses)   on   Matching
            Contributions   and  Special   Contributions   shall  be  credited
            commencing with the date the  contributions are made in accordance
            with the  provisions of  Article 6.  Any  limitations  on Matching
            Contributions  described in Articles 3, 4, and 14 shall be applied
            with   respect   to  the  Plan   Year  or  Years  to  which   such
            contributions  relate  rather  than to the  Plan  Year or Years in
            which payment is made.

<PAGE>

       (c)  All contributions under this Section are considered "annual
            additions," as defined in Section 415(c)(2) of the Code, and shall
            be limited in accordance with the provisions thereof with respect to
            the Plan Year or Years to which such contributions relate rather
            than to the Plan Year in which payment is made.

2.05  Transferred Participants

      If a Participant remains in the employ of an Employer or an Affiliated
      Employer but ceases to be an Eligible Employee, his participation under
      the Plan shall be suspended, provided, however, that during the period of
      his employment in such ineligible position:

      (a)   he  shall   cease  to  have  any   right  to  elect   Tax-Deferred
            Contributions or make Rollover Contributions;

      (b)   he shall not  receive  allocations  of Matching  Contributions  or
            Special Contributions;

      (c)   he shall continue to participate  in income  allocations  pursuant
            to Section 4.02(a); and

      (d)   the provisions of Articles 6 and 8 shall continue to apply.

      If an Employee again becomes an Eligible Employee, his rights and
      privileges as an Eligible Employee under this Plan shall be restored.

2.06  Termination of Employment and Termination of Participation

      Under this Plan, termination of employment occurs on the date an Employee
      is no longer employed with an Employer or an Affiliated Employer. An
      Eligible Employee's participation in the Plan shall terminate on the date
      he terminates employment, unless the Participant is entitled to benefits
      under the Plan, in which event his participation shall terminate when
      those benefits are distributed to him.

                                    ARTICLE 3
                                  Contributions

3.01  Tax-Deferred Contributions

      (a)   A Tax-Deferred Contribution represents an agreement by an Eligible
            Employee with his Employer to accept a reduction in Compensation in
            consideration of a contribution to the Plan by the Employer on the
            Participant's behalf in the same amount.

      (b)   In accordance  with rules that the Committee  shall prescribe from
            time to time,  an  Eligible  Employee  may elect to enter  into an
            agreement  with his Employer as  described  in Section  3.01(a) by
            indicating the amount of Tax-Deferred  Contributions  he wishes to
            be contributed  by his Employer.  Tax-Deferred  Contributions  may
            be any whole  percentage of a Participant's  Compensation  between
            one (1) percent and ten (10) percent  (effective  January 1, 1998,
            such limit shall be raised to fifteen (15)  percent),  but may not
            exceed the  Section  402(g)  Limit in any Plan Year.  Tax-Deferred
            Contributions  shall be made by regular payroll deduction,  except
            that a  Participant  subject to the Section  402(g)  Limit may ask
            the Committee to calculate his Tax-Deferred  Contributions in such
            a  manner  that  his  regular  payroll  reductions  result  in the
            maximum   Matching   Contribution.    Tax-Deferred    Contribution
            elections are effective  following  the  Participant's  Enrollment
            Date or as soon as administratively feasible thereafter.

<PAGE>

      (c)   An election of  Tax-Deferred  Contributions  shall remain in force
            until changed in the form and manner  specified by the  Committee.
            A  Participant  may  elect to  cease  contributions  at any  time.
            Elections   to   increase,    decrease   or   cease   Tax-Deferred
            Contributions  are  effective  as  of  the  pay  period  following
            receipt  by the  Committee.  A  Participant  may  not  change  his
            election with respect to Tax-Deferred  Contributions  already made
            by  payroll  deduction.   Notwithstanding  the  foregoing,   if  a
            Participant  is  reclassified  or  transferred  to  an  employment
            category not included among Eligible  Employees,  deferrals  shall
            cease   as  of   the   first   payroll   period   in   which   the
            reclassification or transfer is effective.

      (d)   Tax-Deferred Contributions shall be transmitted to the Trustee as of
            the earliest date on which such contributions can reasonably be
            segregated from the Employer's general assets, but no later than the
            fifteenth business day of the month following the payroll month in
            which the Tax-Deferred Contribution was deducted from the
            Participant's Compensation.

      (e)   All Tax-Deferred Contributions are subject to the limitations of
            Article 14 and the further limitations of this Article.

3.02  Matching Contributions

      (a)   Each Employer will contribute, with respect to Participants employed
            by it, a Matching Contribution equal to 50% of the amounts elected
            as Tax-Deferred Contributions, but in no event shall Matching
            Contributions for any Plan Year for any Participant exceed 2% of the
            Participant's Compensation for the Plan Year. Notwithstanding the
            foregoing, Matching Contributions of the Employers are discretionary
            and are not required.

      (b)   All Matching Contributions shall be paid to the Trustee no later
            than the time prescribed by law for filing the federal income tax
            returns of the Employers, including any extensions granted for the
            filing of such tax returns.

      (c)   All Matching Contributions are subject to the limitations of Article
            14 and the further limitations of this Article.

3.03  Special Contributions

      (a)   Special  Contributions  are  not  required  and  are  made at each
            Employer's discretion.

      (b)   Special Contributions may be made to correct an Average Deferral
            Percentage test failure under Section 14.02, or to correct an
            Average Contribution test failure under Section 14.03, or to
            eliminate discrimination under any tax-qualified Plan of the
            Employers under Section 401(a)(4) or 410(b) of the Code, or as a
            result of the reallocation of excess annual additions under Section
            14.06.

      (c)   Special Contributions are made on behalf of Participants who are not
            Highly Compensated Employees and who are actively employed by the
            Employer on the last day of the pay period for which a Special
            Contribution is made.

      (d)   All Special Contributions shall be paid to the Trustee no later than
            the time prescribed by law for filing the federal income tax returns

<PAGE>

            of the Employers, including any extensions granted for the filing of
            such tax returns.

      (e)   All Special Contributions are subject to the limitations of Article
            14 and the further limitations of this Article.

3.04  Deductibility Limitations and Form of Contribution

      (a)   In no event shall the aggregate Tax-Deferred, Matching and Special
            Contributions of the Employers exceed the amount deductible by the
            Employers for such Plan Year for income tax purposes as a
            contribution to the Trust under the applicable provisions of the
            Code. All Participant Tax-Deferred Contribution elections, Matching
            Contributions and Special Contributions are specifically conditioned
            on such deductibility.

      (b)   All contributions of the Employers shall be in cash, except that
            Matching Contributions and Special Contributions may be made in the
            form of Company Stock.

3.05  Rollover Contributions

      (a)   Subject to Committee  procedures,  a Covered Employee,  regardless
            of whether he is an Eligible Employee,  may "roll over" in cash to
            the Trust Fund a distribution  or direct rollover that is from (a)
            another plan that meets the  requirements of Section 401(a) of the
            Code (the "Other Plan"), or (b) an individual  retirement  account
            that satisfies the  requirements for a "Conduit IRA" under Section
            408 of the Code  and to  which  the  Covered  Employee  previously
            deposited a distribution received from the Other Plan.

      (b)   The procedures approved by the Committee shall include rules
            providing that such rollover may be made only if the rollover occurs
            on or before the 60th day following the Covered Employee's receipt
            of the distribution from the Other Plan or the Conduit IRA. However,
            such requirement shall not apply with respect to a direct rollover
            from the Other Plan or Conduit IRA.

      (c)   The Committee shall develop such other procedures and may require
            such information from a Covered Employee desiring to make a rollover
            as it deems necessary or desirable to determine that the proposed
            rollover will meet the requirements of this Section and that the
            amount rolled over qualifies for rollover treatment pursuant to
            applicable provisions of the Code.

3.06  After Tax-Contributions

      Effective January 1, 1987, voluntary after-tax contributions are not
      permitted under this Plan. Voluntary after-tax contributions made by a
      Participant prior to January 1, 1987 are maintained in his After-Tax
      Account, which is 100% vested and nonforfeitable at all times.

                                    ARTICLE 4
                      Allocations to Participants' Accounts

4.01  Individual Accounts

      The Committee shall create and maintain adequate records to disclose the
      interest in the Trust Fund of each Participant and Beneficiary. Such
      records shall be in the form of individual accounts and credits and
      charges shall be made to such accounts in the manner herein described.
      When appropriate, a Participant shall have any or all of the following
      separate accounts: a Tax-Deferred Account, a Matching Account, a Special

<PAGE>

      Account, a Rollover Account and an After-Tax Account. The maintenance of
      individual accounts is only for accounting purposes, and a segregation of
      the assets of the Trust Fund to each account shall not be required.
      Distributions and withdrawals made from an account shall be charged to the
      account as of the date paid.

4.02  Account Allocations

      The Accounts of Participants and Beneficiaries shall be adjusted in
      accordance with the following:

      (a)   Income: As of each Valuation Date, each Investment Fund shall be
            revalued separately. Based on such revaluation of the Investment
            Funds, each Account shall be revalued as of the applicable Valuation
            Date to reflect its proportionate share of investment experience
            since the immediately preceding Valuation Date.

      (b)   Tax-Deferred Contributions: As of each Valuation Date, the
            Tax-Deferred Contributions received by the Trust Fund since the
            immediately preceding Valuation Date shall be allocated to the
            Tax-Deferred Accounts of the Participants on whose behalf such
            contributions were made.

      (c)   Matching Contributions: As of each Valuation Date, the Matching
            Contributions received by the Trust Fund since the immediately
            preceding Valuation Date shall be allocated to the Matching Account
            of the Participants on whose behalf such contributions were made.

      (d)   Special   Contributions:   As  of  each  Valuation  Date,  Special
            Contributions  received  by the Trust Fund  since the  immediately
            preceding  Valuation  Date  shall  be  allocated  to  the  Special
            Accounts of Participants who are not Highly Compensated  Employees
            and who were  actively  employed on the last day of the pay period
            for which the Special  Contribution  was made.  The allocation for
            each  Participant  eligible  to receive a share of the  allocation
            shall be equal to the  total  amount of the  Special  Contribution
            divided by the total  number of  Participants  eligible to receive
            an allocation of Special Contributions.  Therefore,  each eligible
            Participant  shall receive the same dollar amount of allocation of
            Special Contributions as each other eligible Participant.

      (e)   Rollover Contributions: As of each Valuation Date, the Rollover
            Contributions received by the Trust Fund since the immediately
            preceding Valuation Date on behalf of a Participant shall be
            allocated to such Participant's Rollover Account.

4.03  Limitation on Allocations

      Notwithstanding any of the foregoing, the amount of contributions that may
      be allocated to a Participant's Aggregate Account for a Plan Year shall be
      subject to the limitations under Sections 401(k), 401(m) and 415 of the
      Code as set forth in Article 14.

4.04  No Guarantee

      The Employers, the Committee, and the Trustee do not guarantee the
      Participants or their Beneficiaries against loss or depreciation or
      fluctuation of the value of the assets of the Trust Fund.

4.05  Annual Statement of Accounts

      The Committee will furnish each Participant and each Beneficiary of a
      deceased Participant, at least annually, a statement showing the value of

<PAGE>

      his Aggregate Account at the end of the Plan Year, and the allocations to
      and distributions from his Accounts during the Plan Year. No statement
      will be provided to a Participant or Beneficiary after the Participant's
      entire vested and nonforfeitable interest in his Accounts is distributed.

                                    ARTICLE 5
                                     Vesting

5.01  Nonforfeitability

      Except as provided in Sections 1.41 and 11.07 and Article 14, the interest
      of each Participant in his Aggregate Account shall be 100% vested and
      nonforfeitable at all times.

5.02  Suspension of Benefits

      The nonforfeitable Aggregate Account of a Participant who terminates
      employment is not forfeited if he later has a Reemployment Commencement
      Date. Payments to the Employee may be suspended, however, until his later
      termination of employment. If the Employee is not an Eligible Employee on
      his Reemployment Commencement Date, the provisions of Section 2.05 shall
      apply. To the extent required by law, the notice of suspension of benefits
      described in Department of Labor Regulation Section 2530.203-3(b)(4) shall
      be provided.

                                    ARTICLE 6
               Investment Elections and Voting of Company Stock

6.01  Investment Options

      (a)   The  Committee  shall have the  authority to direct the Trustee to
            maintain  the  assets of the  Trust  Fund in  multiple  Investment
            Funds so as to provide  alternative  investment  vehicles  for the
            assets of the Plan. The Committee,  in its sole discretion,  shall
            have the authority to add,  limit,  or eliminate the  availability
            of any  Investment  Fund  established  pursuant to this Article 6.
            Subject to the provisions of Section 6.01(e),  the Committee shall
            adopt  such  rules  and  procedures  as it  deems  advisable  with
            respect to all matters  relating to the  selection  and use of the
            Investment  Funds,  provided  that all  Participants  are  treated
            uniformly.  If there is an  inconsistency  between  such rules and
            the  provisions  of  Section  6.01,  the  Committee's   rules  and
            procedures shall govern.

      (b)   Except to the extent that a  Participant's  loan is  considered  a
            separate  investment  pursuant to Section 7.01,  each  Participant
            shall designate,  in any proportion,  the Investment Fund(s) under
            which his Tax-Deferred,  After-Tax, and Rollover Contributions are
            to be invested.  Such designation  shall be in the form and manner
            prescribed  by  the  Committee.  All  Matching  Contributions  and
            Special  Contributions  shall be  invested  in the  Company  Stock
            Fund.  Notwithstanding the foregoing,  effective December 10, 2001
            a  Participant  who has  attained  age 55  may,  by  submitting  a
            notification  to the  Committee  in such  manner and form,  and at
            such time, as the Committee shall prescribe,  direct that all or a
            part of the value of his Matching  Account and/or Special  Account
            attributable   to  the  Company  Stock  Fund  be  liquidated   and
            transferred to any of the other available Investment Funds.

      (c)   Investments  in the Company Stock Fund shall consist  primarily of
            shares  of  Company  Stock.   Effective  December  10,  2001  this
            Investment  Fund  shall  be an  "employee  stock  ownership  plan"

<PAGE>

            (herein  after  referred  to as  "ESOP")  within  the  meaning  of
            Section  4975(e)(7)  of the Code.  To  satisfy  daily  Participant
            requests for transfers  and payments,  the Company Stock Fund also
            shall include cash or short-term liquid  investments in accordance
            with this paragraph.  The Company shall,  after  consultation with
            the Trustee,  establish and  communicate to the Trustee in writing
            a  target  liquidity  percentage  and  drift  allowance  for  such
            short-term  liquid  investments.  The Trustee is  responsible  for
            ensuring  that the  actual  cash held in the  Company  Stock  Fund
            falls  within the agreed on range  over time.  Each  Participant's
            proportional  interest in the Company Stock Fund shall be measured
            in  units  of  participation  rather  than in  shares  of  Company
            Stock.  Such units  shall  represent a  proportionate  interest in
            all of the assets of the Company Stock Fund,  which include shares
            of  Company   Stock,   short-term   investments   and,  at  times,
            receivables  for dividends  and/or Company Stock sold and payables
            for Company  Stock  purchased.  A Net Asset Value ("NAV") per unit
            will be  determined  as of  each  Valuation  Date  for  each  unit
            outstanding  of the Company Stock Fund.  The NAV shall be adjusted
            by  gains  or  losses   realized   on  sales  of  Company   Stock,
            appreciation  or  depreciation in the market price of those shares
            owned, interest on the short-term  investments held by the Company
            Stock Fund,  expenses that pursuant to the Company's direction the
            Trustee  accrues from the Company Stock Fund,  and  commissions on
            purchases and sales of Company  Stock.  Dividends  received by the
            Company Stock Fund are reinvested in additional  shares of Company
            Stock (to the extent it is  unnecessary  to retain such  dividends
            as  cash  to  maintain  the  target   liquidity   percentage)  and
            Participants  will receive  additional  units.  Any and all rights
            to sell Company Stock shall be  administered  in  accordance  with
            the Company's insider trading policy.

            Notwithstanding the foregoing, effective October 1, 2002, except as
            otherwise provided by the subsequent provisions of this Section
            6.01(c), dividends received by this Investment Fund shall be
            reinvested in additional shares of Company Stock (to the extent it
            is unnecessary to retain such dividends as cash to maintain the
            target liquidity percentage), and Participants shall be credited
            with additional units of participation. Each Participant shall be
            entitled to elect, at such time and such manner as the Committee
            shall prescribe, to receive a distribution from the Plan of an
            amount in cash equal to the Participant's proportional interest in
            the dividends paid to the ESOP with respect to Company Stock on or
            after October 1, 2002; provided that a Participant may make such an
            election with respect to the dividends paid to the ESOP on any given
            date only if the value of the Participants proportional interest in
            the dividends paid on such date exceeds $10.

      (d)   A Participant may (i) change his election of Investment Funds with
            respect to his future contributions, or (ii) redesignate the
            proportions and/or the Investment Funds in which amounts already
            allocated to his Tax-Deferred, After-Tax and Rollover Accounts shall
            be invested. Elections made under this Section 6.01(d) shall be in
            the form and manner prescribed by the Committee.

      (e)   If a Participant dies, his Beneficiary has the same investment
            election rights as the Participant had prior to his death, until the
            Participant's Aggregate Account is distributed to the Beneficiary.

      (f)   The Plan is intended to constitute a plan described in Section
            404(c) of ERISA and Title 29 of the Code of Federal Regulations,
            Section 2550.404c-1. As such, the Plan's fiduciaries may be relieved

<PAGE>

            of liability for any losses that are the direct and necessary result
            of investment instructions given by a Participant or a Beneficiary.

      (g)   Each  Participant is solely  responsible  for the selection of his
            investment  options.  The Trustee,  the Committee,  the Employers,
            and  the  officers,   supervisors   and  other  employees  of  the
            Employers  are not  empowered  to advise a  Participant  as to the
            manner in which his accounts  shall be invested.  The fact that an
            Investment Fund is available to Participants  for investment under
            the  Plan  shall  not  be  construed  as  a   recommendation   for
            investment in that particular Investment Fund.

6.02  Voting of Company Stock

      (a)   Voting

            (i)   Shares   Credited   to    Participants'    Accounts.    Each
                  Participant  with an  interest  in the  Company  Stock  Fund
                  shall have the right to direct the  Trustee as to the manner
                  in which  the  Trustee  is to vote  (including  not to vote)
                  that  number of  shares of  Company  Stock  reflecting  such
                  Participant's  proportional  interest in the  Company  Stock
                  Fund.   Directions   from  a  Participant   to  the  Trustee
                  concerning   the   voting   of   Company   Stock   shall  be
                  communicated  in writing,  or by mailgram or similar  means.
                  These  directions shall be held in confidence by the Trustee
                  and shall not be divulged to the Company,  or any officer or
                  employee  thereof,  or any other  person.  On its receipt of
                  the  directions,  the  Trustee  shall  vote  the  shares  of
                  Company  Stock  reflecting  the  Participant's  proportional
                  interest  in the  Company  Stock  Fund  as  directed  by the
                  Participant.  The  Trustee  shall vote shares of the Company
                  Stock  reflecting the  Participant's  proportional  interest
                  for which it received no direction  from the  Participant in
                  the same  proportion one each issue as it votes those shares
                  credited  to  Participants'  Accounts  for which it received
                  voting directions from Participants.

            (ii)  Shares Not Credited to Participants' Account. The Trustee
                  shall vote the number of shares of Company Stock not credited
                  to Participants' Accounts in the same proportion on each issue
                  as it votes those shares credited to Participants' Accounts
                  for which it received voting directions from Participants.

      (b)   Tender Offers

            (i)   Shares   Credited   to    Participants'    Accounts.    Each
                  Participant  shall have the right to direct  the  Trustee to
                  tender  or not to  tender  some  or  all  of the  shares  of
                  Company Stock  reflecting  such  Participant's  proportional
                  interest  in  the  Company  Stock  Fund.  Directions  from a
                  Participant to the Trustee  concerning the tender of Company
                  Stock shall be  communicated  in writing,  or by mailgram or
                  such  similar  means.  These  directions  shall  be  held in
                  confidence  by the  Trustee and shall not be divulged to the
                  Company,  or any officer or employee  thereof,  or any other
                  person  except to the extent that the  consequences  of such
                  directions are reflected in reports  regularly  communicated
                  to  any  such  persons  in  the   ordinary   course  of  the
                  performance  of  the  Trustee's  services   hereunder.   The
                  Trustee  shall tender or not tender  shares of Company Stock
                  as  directed  by the  Participant.  The  Trustee  shall  not
                  tender  shares of Company Stock  reflecting a  Participant's

<PAGE>

                  proportional  interest in the  Company  Stock Fund for which
                  it received no direction from the Participant.

            (ii)  Shares Not Credited to Participants' Accounts. The Trustee
                  shall tender the number of shares of Company Stock not
                  credited to Participants' Accounts in the same proportion as
                  the total number of shares of Company Stock credited to
                  Participants' Accounts for which it received instructions from
                  Participants.

           (iii)  Withdrawal of Tender. A Participant who has directed the
                  Trustee to tender some or all of the shares of Company Stock
                  reflecting the Participant's proportional interest in the
                  Company Stock Fund may, at any time prior to the tender offer
                  withdrawal deadline, direct the Trustee to withdraw some or
                  all of the tendered shares reflecting the Participant's
                  proportional interest, and the Trustee shall withdraw the
                  directed number of shares from the tender offer prior to the
                  tender offer withdrawal deadline. Prior to the withdrawal
                  deadline, if any shares of Company Stock not credited to
                  Participants' Accounts have been tendered, the Trustee shall
                  redetermine the number of shares of Company Stock that would
                  be tendered under Section 6.02(b)(ii) if the date of the
                  foregoing withdrawal were the date of determination, and
                  withdraw from the tender offer the number of shares of Company
                  Stock not credited to Participants' Accounts necessary to
                  reduce the amount of tendered Company Stock not credited to
                  Participants' Accounts to the amount so redetermined. A
                  Participant shall not be limited as to the number of
                  directions to tender or withdraw that the Participant may give
                  to the Trustee.

            (iv)  A direction by a Participant to the Trustee to tender shares
                  of Company Stock reflecting the Participant's proportional
                  interest in the Stock Fund shall not be considered a written
                  election under the Plan by the Participant to withdraw, or
                  have distributed, any or all of his withdrawable shares. The
                  Trustee shall credit to each proportional interest of the
                  Participant from which the tendered shares were taken the
                  proceeds received by the Trustee in exchange for the shares of
                  Company Stock tendered from the interest.

      (c)   Whenever Participants' right to vote or a similar right (such as
            tender right) is at hand, the Committee must see that the
            Participants receive all notices, prospectuses, financial
            statements, proxies, and proxy solicitation materials relating to
            shares of Company Stock held for their Aggregate Accounts.

                                    ARTICLE 7
                                Participant Loans

7.01  Loans to Active Participants

      The Committee shall direct the Trustee to loan a Participant or Alternate
      Payee who is actively employed by an Employer an amount from his
      Tax-Deferred, After-Tax, Matching, Special and Rollover Accounts in
      accordance with the rules of this Section and the Plan's loan rules, which
      shall be considered to be a part of the Plan.

      (a)   A  Participant  or Alternate  Payee may have only one  outstanding
            loan at a time.

<PAGE>

      (b)   A Participant's  or Alternate  Payee's loan shall not be less than
            $1,000 and shall not exceed the lesser of (i) $50,000,  reduced to
            the  extent of the  Participant's  or  Alternate  Payee's  highest
            outstanding  loan balance  during the  immediately  prior 12-month
            period  (ending  the day before the new loan is  granted)  or (ii)
            50% of the total  dollar value of the  Participant's  or Alternate
            Payee's Tax-Deferred,  After-Tax,  Matching,  Special and Rollover
            Accounts as of the date the loan is made.

      (c)   All loans to Participants made prior to January 1, 2002 require
            Spousal Consent. From and after January 1, 2002, Spousal Consent for
            a loan will not be required.

      (d)   All loans shall be subject to the approval of the Committee and to
            such rules or regulations as the Committee shall adopt.

      (e)   An application for a loan by a Participant or Alternate Payee shall
            be made in accordance with the administrative procedures set forth
            by the Committee.

      (f)   Each loan shall be made at a reasonable rate of interest determined
            in accordance with the Plan's loan rules. The interest rate so
            determined with respect to a particular loan shall be fixed for the
            duration of such loan. Each loan shall be secured by the balance
            remaining in the borrower's Aggregate Account or by such other
            security as the Committee may deem to be adequate.

      (g)   Each loan shall be treated as a separate investment of the funds
            credited to a Participant's or Alternate Payee's Tax-Deferred,
            After-Tax, Matching, Special or Rollover Account.

      (h)   Loan proceeds shall be taken first from the Participant's or
            Alternate Payee's Rollover Account, if any, then his Tax-Deferred
            Account, After-Tax, then his Matching Account, and finally, his
            Special Account, if any. Effective for loans funded on or after
            September 28, 1998, loan proceeds shall be withdrawn from the
            Participant's or Alternate Payee's Aggregate Accounts in the
            following order:

            (i)   first, the Rollover Account;

            (ii)  second, the Matching Account;

            (iii) third, that portion of his Tax-Deferred Account attributable
                  to Tax-Deferred contributions in excess of four (4) percent of
                  the Participant's Compensation;

            (iv)  fourth, that portion of the Tax-Deferred Account attributable
                  to the first four (4) percent of the Participant's
                  Tax-Deferred Contributions; and

            (v)   lastly, the After-Tax Account.

      (i)   In accordance with Code Section 72(p)(3), the Committee shall notify
            the borrower that no interest deduction can be claimed with respect
            to any loan secured by the borrower's Tax-Deferred Account.

<PAGE>

      (j)   Loan documentation will be processed within the time periods
            established by the Committee in its administrative procedures.

7.02  Repayment of Loans

      (a)   The period of repayment for any loan shall be arrived at by
            agreement between the Committee and the borrower, but all loans
            shall become due and payable on termination of employment. The
            repayment period shall be in full year increments and shall not
            exceed four (4) years, except that a 10-year repayment period may
            apply to any loan used for the purpose of purchasing a home that is
            the Participant's or Alternate Payee's principal residence.

      (b)   Loans may be repaid in full at any  time.  Partial  prepayment  is
            not allowed.

      (c)   On the Participant's or Alternate Payee's termination of employment,
            the full amount of the loan becomes due and payable, regardless of
            whether a distribution is made pursuant to Section 8.03 at that
            time.

      (d)   Repayment of loans shall be by regular payroll deduction only, and
            all loans shall be contingent on the borrower's payroll deduction
            authorization. Loan payments shall be transmitted to the Trustee in
            accordance with the Committee's usual administrative practice.

      (e)   Loan defaults shall be treated as taxable distributions pursuant to
            Code requirements, but may not be applied to the borrower's
            collateral in his Tax-Deferred, Matching, or Special Account until
            such time as a distribution from such accounts could otherwise be
            made under the Plan.

      (f)   Notwithstanding  the foregoing,  in the event a Participant enters
            the   uniformed   services  of  the  United   States  and  retains
            reemployment  rights  under  the  law,  loan  repayments  shall be
            suspended  (and interest  shall cease to accrue) during the period
            of leave,  and the period of  repayment  shall be  extended by the
            number  of  months  of the  period  of  service  in the  uniformed
            services;   provided,   however,   if  the  Participant  incurs  a
            termination of employment and requests a distribution  pursuant to
            Article 8, the loan shall be canceled,  and the  outstanding  loan
            balance shall be distributed pursuant to Article 8.

                                    ARTICLE 8
               Distributions to Participants and Beneficiaries

8.01  Withdrawals from After-Tax Account

      A Participant may elect to withdraw amounts credited to his After-Tax
      Account. Such an election may be made only twice in each Plan Year and the
      minimum withdrawal amount is $500 or, if less, the total value of a
      Participant's After-Tax Account. Elections under this Section 8.01 shall
      be on forms approved by the Committee for that purpose.

8.02  Hardship Withdrawals

      (a)   A  Participant  who has not  terminated  employment  may request a
            distribution  in the  event  the  Participant  has a  hardship  as
            defined  in  subsections  (b) and (c).  Hardship  withdrawals  are

<PAGE>

            limited  to the  excess of the total  amount of the  Participant's
            Rollover Account,  the total amount of the Participant's  Matching
            Account,  the value of the  Participant's  Tax Deferred Account as
            of December 31,  1988,  plus the  principal  of the  Participant's
            Tax-Deferred  Contributions  made from and after  January  1, 1989
            over any outstanding  loan the Participant may have and the sum of
            any prior hardship withdrawal.

      (b)   A  distribution  will  be on  account  of  hardship  only  if  the
            distribution  is  necessary  to  satisfy  an  immediate  and heavy
            financial  need of the  Participant.  For purposes of this Plan, a
            distribution  is  made  on  account  of  an  immediate  and  heavy
            financial need of the Participant  only if the distribution is for
            (i) the payment of medical  expenses  described in Section  213(d)
            of the Code  incurred or to be incurred  by the  Participant,  the
            Participant's  spouse,  or any dependents of the  Participant  (as
            defined  in  Section   1520  of  the  Code),   (ii)  the  purchase
            (excluding  mortgage  payments) of a principal  residence  for the
            Participant,  (iii) the  payment of tuition,  related  educational
            fees,   room  and  board  for  the  next  twelve  (12)  months  of
            post-secondary  education for the Participant,  his or her spouse,
            children,  or  dependents,  (iv) the prevention of the eviction of
            the  Participant  from his principal  residence or  foreclosure on
            the mortgage of the Participant's  principal residence, or (v) the
            payment of funeral expenses for the Participant's  spouse,  child,
            parent,   mother-in-law,   father-in-law,   or  any  dependent  as
            provided  in  regulations  prescribed  by  the  Secretary  of  the
            Treasury for exemption purposes.

      (c)   A  distribution  will  be  considered   necessary  to  satisfy  an
            immediate and heavy financial need of the Participant  only if all
            three (3) of the following  requirements  are  satisfied:  (i) the
            distribution  is not in excess of the amount  required  to relieve
            the immediate and heavy financial need of the Participant  (taking
            into  account the taxable  nature of the  distribution);  (ii) the
            Participant  represents  in  writing,  on  forms  provided  by the
            Committee,  that the need cannot be relieved through reimbursement
            or   compensation   by  insurance  or  otherwise,   by  reasonable
            liquidation  of  the  Participant's  assets,  to the  extent  such
            liquidation   would  not  itself  cause  an  immediate  and  heavy
            financial need, by cessation of Tax-Deferred  Contributions  under
            the Plan, or by  withdrawals,  distributions  (other than hardship
            distributions)  or nontaxable loans (at the time of the loan) from
            this Plan or plans  maintained  by any Employer or any  Affiliated
            Employer  or  any  other  entity  by  which  the   Participant  is
            employed,  or by borrowing from  commercial  sources on reasonable
            commercial  terms; and (iii) the Committee  determines that it can
            reasonably rely on the Participant's written representation.

      (d)   Distributions pursuant to this Section will be made as soon as
            practicable following the Committee's approval of the Participant's
            written request for withdrawal and will be made in the form of a
            single lump sum payment. The Committee may request any documentation
            it may require from a Participant to make a determination that the
            Participant is eligible for a hardship withdrawal hereunder.

      (e)   On making a  hardship  withdrawal,  a  Participant's  Tax-Deferred
            Contributions  will  be  suspended  for 12  months  following  the
            hardship   distribution   and   may   only  be   resumed   on  the
            Participant's  submission  of an election to resume  contributions
            on  a  form   approved   by   the   Committee.   A   Participant's
            Tax-Deferred  Contributions,  if any, for the Plan Year  following

<PAGE>

            the hardship  withdrawal  may not exceed the Section  402(g) Limit
            minus the  amount  of  Tax-Deferred  Contributions  he made in the
            Plan Year of hardship withdrawal.

      (f)   All hardship withdrawal elections must be made on forms approved by
            the Committee for that purpose and prior to January 1, 2002 shall
            require Spousal Consent.

8.03  Distributions on Account of Termination of Employment

      (a)   Except as set forth in Section  8.03(c) below,  distribution  of a
            Participant's   Aggregate   Account  shall  commence  as  soon  as
            practicable after the Participant's  termination of employment.  A
            Participant's  distributable  Aggregate  Account  is  based on the
            value of that  Account  as of the  Valuation  Date  the  Aggregate
            Account is to be  distributed,  except that there will be added to
            the value of the  Participant's  Aggregate Account the fair market
            value of any amounts  allocated  to his  Aggregate  Account  under
            Article 4 after  that  Valuation  Date.  If a loan is  outstanding
            from  the  Trust   Fund  to  the   Participant   on  the  date  of
            distribution,  the  amount  distributed  will  be  reduced  by the
            outstanding  loan balance.  The  distribution  will be paid to the
            Participant's   Beneficiary   in  the  event   the   Participant's
            termination  of  employment  is caused by his death.  In all other
            cases, payment will be made to the Participant.

      (b)   Distributions will be in the form of a lump sum cash payment, except
            that any portion of a Participant's Aggregate Account that is
            invested in The Walt Disney Company Common Stock Fund will be
            distributed in shares of Company Stock, plus cash for any fractional
            shares. Notwithstanding the foregoing, the recipient may elect that
            the entire distribution be made in cash.

      (c)   If the  Participant's  termination of employment is due to reasons
            other than death and if the  amount of a  Participant's  Aggregate
            Account  exceeds $3,500  (effective  January 1, 1998,  $5,000) the
            Committee  will not  automatically  distribute  the  Participant's
            Aggregate  Account  prior to the  Participant's  attainment of age
            65. In lieu of  payment at age 65,  the  Participant  may elect at
            any  time  between   termination  of  employment  and  age  65  an
            immediate  lump sum  distribution,  payable  as soon as  practical
            after  receipt of the  Participant's  election  under this Section
            8.04(c) at any time  between  termination  of  employment  and age
            65. All  elections  made  pursuant to this Section shall be in the
            manner  approved  by the  Committee  and prior to  January 1, 2002
            shall be subject to Spousal Consent.

      (d)   If a Participant dies prior to receiving the lump sum distribution
            of his Aggregate Account under this Section, the distribution shall
            be paid to the Participant's Beneficiary as soon as practical after
            the Participant's death.

      (e)   It is possible for a Participant or Beneficiary to receive a
            distribution under this Section before all Matching and Special
            Contributions on behalf of the Participant are made to the Trust
            Fund. In such case, such additional amounts shall be paid to the
            Participant or Beneficiary as soon as practical after the Trust
            Fund's receipt thereof.

<PAGE>

      (f)   As provided in Section 5.02, if a Participant who terminated
            employment again becomes an Employee before receiving a distribution
            of his Aggregate Account, no distribution from the Trust Fund will
            be made while he is an Employee, and amounts distributable to him on
            account of his prior termination will be held in the Trust Fund
            until he is again entitled to a distribution under the Plan.

      (g)   Effective January 1, 1998, notwithstanding any provision of the Plan
            to the contrary, a lump sum payment shall be made in lieu of all
            vested benefits if the value of the vested portion of the
            Participant's Aggregate Accounts as of his termination of employment
            amounts to $5,000 or less [$3,500 or less if the date of termination
            is prior to January 1, 1998].

8.04  Restrictions and Requirements on Distributions

      (a)   Except  for  distributions  permitted  under  this  Article 8 with
            respect to  Participants  who suffer a hardship,  a  Participant's
            interest  in  the  Plan  will  not  be   distributed   before  the
            Participant's  termination of employment or death unless:  (i) the
            Plan is terminated  without the  establishment  or  maintenance by
            the Employers of another defined  contribution plan (other than an
            employee stock  ownership  plan as defined in Section  4975(e)(7))
            of the Code;  (ii) an Employer that is a  corporation  disposes of
            all or  substantially  all of the assets used by the Employer in a
            trade  or  business  to a  person  other  than an  Employer  or an
            Affiliated   Employer  but  only  if  the  Participant   continues
            employment with the acquiring employer;  or (iii) an Employer that
            is a  corporation  disposes of its interest in a  subsidiary  to a
            person other than an Employer or an  Affiliated  Employer but only
            if the Participant  continues  employment with the subsidiary.  An
            event  will not be  treated as  described  in (ii) or (iii)  above
            unless  the  Employer  continues  to  maintain  the Plan after the
            disposition.

      (b)   An event described in Section 8.04(a) that otherwise would permit
            distribution of a Participant's interest in the Plan will not be
            treated as described in Section 8.04(a) unless the Participant
            receives a lump sum distribution by reason of the event. A lump sum
            distribution for this purpose will be a distribution described in
            Section 402(e)(4)(D) of the Code.

      (c)   The provisions of this Section 8.04(c) will apply to restrict the
            Committee's ability to delay the commencement of distributions.
            Except as otherwise provided in this Article 8, distribution of the
            Participant's interest in his Aggregate Account shall begin no later
            than the 60th day after the close of the Plan Year in which occurs
            the latest of:

            (i)   The Participant's 65th birthday;
            (ii)  The  tenth  anniversary  of the date on  which  he  became a
                  Participant; or
            (iii) The  date  he   terminates   service  with  an  Employer  or
                  Affiliated Employer.

      (d)   The following provisions will apply to limit a Participant's ability
            to delay the distribution of benefits.

             (i)   Notwithstanding any provision of the Plan to the contrary, if
                   a Participant  is a five (5) percent  owner (as  defined  in
                   Section   416(i)  of  the   Code),   distribution   of  the

<PAGE>

                   Participant's  entire  Aggregate  Account  shall  begin  no
                   later  than the  April 1  following  the  calendar  year in
                   which  he  attains   age  70 1/2. No  minimum   distribution
                   payments   will  be  made  to  a   Participant   under  the
                   provisions  of  Section 401(a)(9)  of the  Code on or after
                   January 1,  1997  if the  Participant  is  not a  five  (5)
                   percent owner as defined above.

                  However, if a Participant who is not a five (5) percent owner
                  (as defined in Section 416(i) of the Code) remains in service
                  after the April 1 following the calendar year in which he
                  attains age 70 1/2, he may make a one-time election to have
                  the provisions of paragraph (ii) apply as if the Participant
                  was a five (5) percent owner. Such election shall be made in
                  accordance with such administrative procedures as the
                  Committee shall prescribe.

            (ii)  In the event a Participant is required to begin receiving
                  payments while in service under the provisions of paragraph
                  (i) above, the Participant shall receive payments, as follows:
                  (A) one lump sum payment on or before the Participant's
                  required beginning date equal to his entire Aggregate Account
                  balance, and (B) annual lump sum payments thereafter of
                  amounts accrued during each calendar year.

      (e)   In the event that any payments under this Plan are to be made to
            someone other than the Participant or jointly to the Participant and
            his spouse or other payee, such payments must conform to the
            "incidental benefit" rules of Code Section 401(a)(9)(G) and Treasury
            Regulation Section 1.401(a)(9)-2.

      (f)   On  the  death  of  a  Participant,   the  following  distribution
            provisions will apply to limit the Beneficiary's  ability to delay
            distributions.  If the Participant dies after  distribution of his
            benefit has begun, the remaining  portion of his benefit,  if any,
            will continue to be  distributed  at least as rapidly as under the
            method  of  distribution  being  used  prior to the  Participant's
            death;  but  if  he  dies  before   distribution  of  his  benefit
            commences,  his  entire  benefit  will be  distributed  as soon as
            practical  after his death but no later than five (5) years  after
            his death.

      (g)   Distributions under the Plan to Participants or Beneficiaries will
            be made in accordance with Treasury Regulations issued under Code
            Section 401(a)(9).

      (h)   The Committee or its delegate shall provide recipients of a benefit
            hereunder with appropriate claim forms, election forms, withholding
            forms and an officially approved notice supplied by the Secretary of
            the Treasury that specifies certain information regarding the
            federal income tax treatment of Plan benefits paid in the form of a
            lump sum.

8.05  Method of Payment for Eligible Rollover Distributions

      (a)   Notwithstanding any provision of the Plan to the contrary, effective
            January 1, 1993, if a Distributee is entitled to receive an Eligible
            Rollover Distribution that exceeds $200, the Distributee may elect,
            at the time and in the manner prescribed by Committee and in
            accordance with this Section 8.05, to have his Eligible Rollover
            Distribution paid in accordance with one of the following methods:

<PAGE>

            (i)   all of the  Eligible  Rollover  distribution  shall  be paid
                  directly to the Distributee;

            (ii)  all of the Eligible Rollover  Distribution  shall be paid as
                  a  Direct   Rollover  to  the   Eligible   Retirement   Plan
                  designated by the Distributee; or

            (iii) the portion of the Eligible Rollover as designated by the
                  Participant, which portion shall be at least $500 or such
                  lesser amount as the Committee shall determine, shall be paid
                  as a Direct Rollover to the Eligible Retirement Plan
                  designated by the Distributee and the balance of the Eligible
                  Rollover Distribution shall be paid directly to the
                  Distributee.

      (b)   No less than thirty (30) days and no more than ninety (90) days
            prior to the Distributee's payment date, the Committee shall provide
            the Distributee with an election form and a notice that satisfies
            the requirements of Section 1.411(a)-11(c) of the Income Tax
            Regulations and Section 402(f) of the Code.

      (c)   Notwithstanding the provisions of Section 8.05(b) above,
            distributions paid in accordance with Section 8.05(a) may commence
            less than 30 days after the material described in Section 8.05(b) is
            given to the Distributee provided that:

            (i)   If the Distributee is the Participant, the value of the
                  Participant's Aggregate Account does not exceed $3,500
                  (effective for plan years on or after January 1, 1998,
                  $5,000);

            (ii)  The Distributee is notified that he has the right to a period
                  of at least thirty (30) days after receipt of the material to
                  decide whether or not to elect a distribution; and

            (iii) After receipt of such notification, the Distributee
                  affirmatively elects to receive a distribution.

      (d)   The following definitions apply to the terms used in this Section
            8.05:

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

                  (A)   Any distribution that is one of a series of
                        substantially equal periodic payments (not less
                        frequently than annually) made for the life (or life
                        expectancy) of the Distributee or the joint lives (or
                        joint life expectancies) of the Distributee and the
                        Distributee's designated beneficiary, or for a specified
                        period of ten (10) years or more;

                  (B)   Any  distribution  to the extent such  distribution is
                        required under Section 401(a)(9) of the Code;

                  (C)   The portion of any distribution that is not includable
                        in gross income (determined without regard to the
                        exclusion for net unrealized appreciation with respect
                        to employer securities);

<PAGE>

                  (D)   Any other type of distribution that the Internal Revenue
                        Service announces (pursuant to regulation, notice or
                        otherwise) is not an Eligible Rollover Distribution
                        pursuant to Section 402(c) of the Code;

                  (E)   Effective January 1, 1999, any hardship distribution
                        described in Code Section 401(k)(2)(B)(i)(IV).

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

            (iii) "Distributee" includes an Employee, former Employee, Alternate
                  Payee or Beneficiary. In addition, the Employee's or former
                  Employee's surviving spouse and the Employee's or former
                  Employee's spouse or former spouse who is the Alternate Payee
                  pursuant to a qualified domestic relations order are
                  Distributees with respect to the interest of the spouse or
                  former spouse.

            (iv)  "Direct Rollover" means a payment by the Plan to the Eligible
                  Retirement Plan specified by the Distributee.

8.06  Recapture of Payments

      (a)   By error, it is possible that payments to a Participant or
            Beneficiary may exceed the amounts to which the recipient is
            entitled. When notified of the error, the recipient must return the
            excess to the Trust Fund. This requirement is limited where explicit
            statutory provisions require limitation.

      (b)   To prevent hardship, repayment under Section 8.06(a) may be made in
            installments, determined in the sole discretion of the Committee. A
            repayment arrangement, however, may not be contrary to law, and it
            may not be used as a disguised loan.

      (c)   If a Trustee is authorized by statute to recover some payments, no
            Plan provision may be construed to contravene the statute.

                                    ARTICLE 9
                             Administration of Plan

9.01  Appointment of Plan Committee

      The general administration of the Plan and the responsibility for carrying
      out the provisions of the Plan shall be placed with the Committee,
      consisting of not less than three (3) persons, appointed by the Board to
      serve at the pleasure of such Board. Any member of the Committee may
      resign by delivering his written resignation to the Board.

9.02  Duties of Committee

      The members of the Committee shall elect a chairman from their number and
      a secretary who may be but need not be one of the members of the
      Committee; may appoint from their number such subcommittees with such
      powers as they shall determine; and may authorize one or more of their

<PAGE>

      number or any agent to execute or deliver any instrument or make any
      payment on their behalf. In addition, the Committee may retain counsel,
      employ agents, and provide for such clerical, accounting, actuarial and
      consulting services as they may require in carrying out the provisions of
      the Plan; and may allocate among themselves or delegate all or such
      portion of the duties under the Plan, other than those granted to the
      Trustee under the trust agreement adopted for use in implementing the
      Plan, as they, in their sole discretion, shall decide.

9.03  Meetings

      The Committee shall hold meetings on such notice, at such place or places,
      and at such time or times as it may from time to time determine.

9.04  Quorum

      Any act that the Plan authorizes or requires the Committee to do may be
      done by a majority of a quorum of members. A quorum is 50% of all members
      of the Committee then in office. The action of that majority expressed
      from time to time by a vote at a meeting or in writing without a meeting
      shall constitute the action of the Committee and shall have the same
      effect for all purposes as if assented to by all members of the Committee
      at the time in office.

9.05  Compensation and Bonding

      No member of the Committee shall receive any compensation from the Plan
      for his services as such. Except as may otherwise be required by law, no
      bond or other security need be required of any member in that capacity in
      any jurisdiction.

9.06  Establishment of Rules and Interpretation of Plan

      Subject to the limitations of the Plan, the Committee from time to time
      shall establish rules for the administration of the Plan and the
      transaction of its business as it deems necessary or appropriate. The
      Committee shall have the power to construe and interpret the Plan, decide
      all questions of eligibility, and determine the amount, manner and time of
      payment of any benefits hereunder. The determination of the Committee as
      to any disputed question shall be conclusive.

9.07  Prudent Conduct

      The Committee shall use that degree of care, skill, prudence and diligence
      that a prudent man acting in a like capacity and familiar with such
      matters would use in his conduct of a similar situation.

9.08  Service in More Than One Fiduciary Capacity

      Any individual, entity, or group of persons may serve in more than one
      fiduciary capacity with respect to the Plan and/or the funds of the Plan.

9.09  Limitation of Liability

      The Board, the Committee, the Employees and any officer, employee or agent
      of an Employer or an Affiliated Employer shall not incur any liability
      individually or on behalf of any other individual or on behalf of an
      Employer or an Affiliated Employer for any act or failure to act, made in
      good faith in relation to the Plan or the funds of the Plan. However, this
      limitation shall not act to relieve any such individual, an Employer, or
      an Affiliated Employer from a responsibility or liability for any
      fiduciary responsibility, obligation, or duty under Part 4, Title I of
      ERISA.

<PAGE>

9.10  Indemnification

      The Committee, the Board, and the officers, employees and agents of the
      Employers or an Affiliated Employer shall be indemnified against any and
      all liabilities arising by reason of any act, or failure to act, in
      relation to the Plan or the funds of the Plan, including, without
      limitation, expenses reasonably incurred in the defense of any claim
      relating to the Plan or the funds of the Plan, and amounts paid in any
      compromise or settlement relating to the Plan or the funds of the Plan,
      except for actions or failures to act made in bad faith. The foregoing
      indemnification shall be from the funds of the Plan to the extent of those
      funds and to the extent permitted under applicable law; otherwise from the
      assets of the Employers.

9.11  Expenses of Administration

      All expenses incurred prior to the termination of the Plan that shall
      arise in connection with the administration of the Plan, including but not
      limited to the compensation of the Trustee, administrative expenses and
      proper charges and disbursements of the Trustee, and compensation and
      other expenses and charges of any Enrolled Actuary, counsel, accountant,
      specialist, or other person who shall be employed by the Committee in
      connection with the administration thereof, shall be paid from the Trust
      Fund to the extent not paid by the Employers.

9.12  Claims Procedures

      The Committee ordinarily will instruct the Trustee to pay benefits when
      benefits become available without the necessity of a claim by
      Participants, contingent annuitants, or Beneficiaries. If any Participant,
      contingent annuitant, or Beneficiary makes a written claim for benefits
      under the Plan and such benefits are denied, the Committee, within 60 days
      of the date the claim is filed (or, if special circumstances require an
      extension of time for processing the claim and written notice is given to
      the claimant of such extension, up to 120 days after the original claim is
      filed), shall give the claimant notice in writing of the denial of claimed
      benefits, setting forth specific reasons for the denial, references to
      pertinent Plan provisions, the reason for and description of any
      additional material or information needed to perfect the claim, and an
      explanation of the review procedure. The decision of the Committee shall
      be final unless the claimant, within 60 days after receipt of notice of
      the decision of the Committee, makes a written request for review of the
      decision. The claimant or his authorized representative shall have 30 days
      after submitting a written request for review during which Plan documents
      may be reviewed and written issues and comments may be submitted. Within
      60 days after receipt of the written request for review, the Committee
      shall issue a written decision including reasons for the decision and
      references to controlling Plan provisions, which decision shall be final.

                                   ARTICLE 10
                               Management of Funds

10.01 Trust Agreement

      All the funds of the Plan shall be held by a Trustee appointed from time
      to time by the Board or, effective as of January 26, 1998, by the
      Committee under a Trust Agreement adopted, or as amended, by the Board or,
      effective as of January 26, 1998, the Committee for use in providing the
      benefits of the Plan and paying its expenses not paid directly by the
      Employers. The Employers shall have no liability for the payment of
      benefits under the Plan or for the administration of the funds paid over

<PAGE>

      to the Trustee.

      Effective January 26, 1998, the Committee shall have the power to amend
      the Trust Agreement, and any other funding vehicle document, to:

      (a)   comply with laws and regulations, or as otherwise may be desirable
            when prompted by a change in law or regulation; and

      (b)   make any other change that may be necessary or desirable, provided
            that any amendment adopted pursuant to this subsection shall not
            increase the Company's annual expense by more than five (5) million
            dollars.

10.02 Exclusive Benefit Rule

      Except as otherwise provided in the Plan, no part of the corpus or income
      of the funds of the Plan shall be used for, or diverted to, purposes other
      than for the exclusive benefit of Participants and other persons entitled
      to benefits under the Plan before satisfaction of all liabilities with
      respect to them. No person shall have any interest in or right to any part
      of the earnings of the funds of the Plan, or any right in, or to, any part
      of the assets held under the Plan, except as and to the extent expressly
      provided in the Plan.

10.03 Committee Power and Duties

      (a)   The Committee may, in its discretion, appoint one or more investment
            managers (within the meaning of Section 3(38) of ERISA) to manage
            (including the power to acquire and dispose of) all or part of the
            assets of the Plan, as the Committee shall designate. In that event,
            authority over and responsibility for the management of the assets
            so designated shall be the sole responsibility of that investment
            manager.

      (b)   The  Committee  shall  have  the  duty to  advise  any  investment
            adviser  or  person   (including  any  investment   manager)  with
            discretionary  investment  authority  over all or a portion of the
            Plan's Trust Fund of the investment  objectives  which such person
            should observe.  Such advice should,  looking at the assets of the
            Plan as a whole,  take into account the short-term cash needed for
            benefit  payment  as  well  as  the  long-term  growth  needed  to
            discharge the Plan's  liabilities.  The Committee shall review and
            report to the Board  concerning the  performance of all investment
            advisers and persons with discretionary  investment  authority and
            make such changes in the  appointment  of such persons as it deems
            advisable.  The Committee  also shall have the power and authority
            specified  in any  agreements  with the Trustee or any  investment
            adviser or investment manager.

      (c)   With the approval of the Committee, a portion of the Plan's Trust
            Fund may be invested in the Trustee's certificates of deposit, or in
            the Trustee's pooled or commingled qualified trust funds.

      (d)   Notwithstanding the foregoing, the Trust Fund shall consist of
            separate Investment Funds as provided in Article 6, and to the
            extent required by Participant elections, may be fully invested in
            Company Stock.

      (e)   The  Committee  shall  periodically  report  to the  Board  on its
            actions, recommendations, and investments.

<PAGE>

                                   ARTICLE 11
                              Assignments and Liens

11.01 Nonalienation

      (a)   Except as required by any applicable law or by paragraph (c), no
            benefit under the Plan shall in any manner be anticipated, assigned,
            or alienated, and any attempt to do so shall be void. However,
            payment shall be made in accordance with the provisions of any
            judgment, decree, or order that:

            (i)   creates for, or assigns to, a spouse, former spouse, child, or
                  other dependent of a Participant the right to receive all or a
                  portion of the Participant's benefits under the Plan for the
                  purpose of providing child support, alimony payments, or
                  marital property rights to that spouse, child, or dependent;

            (ii)  is made pursuant to a state domestic relations law;

            (iii) does not  require  the Plan to provide  any type of benefit,
                  or any option, not otherwise provided under the Plan; and

            (iv)  otherwise meets the requirements of Section 206(d) of ERISA,
                  as amended, as a qualified domestic relations order.

      (b)   Notwithstanding anything herein to the contrary, if the amount
            payable to the Alternate Payee under the Qualified Domestic
            Relations Order is less than $5,000 ($3,500 if the date of
            determination is prior to January 1, 1998), such amount shall be
            paid in one lump sum as soon as practicable following the
            qualification of the order. Effective January 1, 1998, if the amount
            exceeds $5,000 ($3,500 if the date of determination is prior to
            January 1, 1998), it may be paid as soon as practicable following
            the qualification of the order if the Qualified Domestic Relations
            Order so provides and the Alternate Payee consents thereto;
            otherwise, it may not be payable before the earliest of (i) the
            Participant's termination of employment, (ii) the time such amount
            could be withdrawn while still employed, or (iii) the Participant's
            attainment of age 50.

      (c)   A Participant's benefit under the Plan shall be offset or reduced by
            the amount the Participant is required to pay to the Plan under the
            circumstances set forth in Section 401(a)(13)(C) of the Code.

11.02 Qualified Domestic Relations Orders

      Notwithstanding any provisions in this Plan to the contrary, the Committee
      shall comply with any judgment, decree, or order that the Committee
      determines to be a Qualified Domestic Relations Order.

      (a)   Establishment   of  Procedures.   The  Committee  shall  establish
            reasonable  written  procedures to determine the qualified  status
            of  domestic  relations  orders  and to  administer  distributions
            under  orders  determined  to  be  Qualified   Domestic  Relations
            Orders,  which  procedures may include,  without  limitation,  the
            adoption  of  one  or  more  model  Qualified  Domestic  Relations
            Orders.   Such   procedures   shall   be   consistent   with   the
            requirements  of Section  206(d) of ERISA and Sections  401(a)(13)
            and 414(p) of the Code. The Committee  shall  promptly  notify the
            affected  Participant and any other Alternate Payee of the receipt

<PAGE>

            of a domestic  relations  order and the procedures for determining
            the  qualified  status  of  domestic  relations  orders.  Within a
            reasonable  period after the receipt of such order,  the Committee
            shall  determine  whether  such  order  is  a  Qualified  Domestic
            Relations   Order  and  shall  notify  the  Participant  and  each
            Alternate Payee of such determination.

      (b)   Disposition of Benefits Pending  Determination.  During any period
            in which the  qualified  status of a domestic  relations  order is
            being  determined  (by the Committee,  by a court,  or otherwise),
            the Committee shall make  arrangements  to account  separately for
            the amounts that would have been payable to each  Alternate  Payee
            if the  order  had  been  determined  to be a  Qualified  Domestic
            Relations  Order.  If  within  18  months  of the  receipt  of the
            order, the order (or  modification  thereof) is determined to be a
            Qualified  Domestic  Relations  Order,  the  Plan  shall  pay  the
            amounts that have been  separately  accounted for to the person or
            persons  entitled  thereto.  If within 18 months of the receipt of
            the order it is  determined  that the order is not  qualified,  or
            the issue as to whether the order is  qualified is not resolved by
            the end of the  18-month  period,  then  the  Plan  shall  pay the
            amounts that have been  separately  accounted for to the person or
            persons,  if any, who would have been  entitled to payment of such
            amounts  if there had been no  order.  Any  determination  that an
            order is  qualified  that is made after the close of the  18-month
            period shall apply prospectively only.

11.03 Facility of Payment

      If the Committee shall find that a Participant or other person entitled to
      a benefit is unable to care for his affairs because of illness or accident
      or is a minor, the Committee may direct that any benefit due him, unless
      claim shall have been made for the benefit by a duly appointed legal
      representative, be paid to his spouse, a child, a parent or other blood
      relative, or to a person with whom he resides. Any payment so made shall
      be a complete discharge of the liabilities of the Plan for that benefit.

11.04 Information

      Each Participant, Beneficiary, or other person entitled to a benefit,
      before any benefit shall be payable to him or on his account under the
      Plan, shall file with the Committee the information that it shall require
      to establish his rights and benefits under the Plan.

11.05 Construction

      (a)   Governing Laws.  Except as otherwise  provided by ERISA, this Plan
            and all  provisions  thereof shall be construed  and  administered
            according to the laws of the State of California.

      (b)   Title and Headings Not to Control. The titles to the Articles and
            the headings of Sections in the Plan are placed herein for
            convenience of reference only and, in the case of any conflict, the
            text of this instrument rather than such titles or headings shall
            control.

      (c)   Gender and Person. The masculine pronoun shall include the feminine,
            the feminine pronoun shall include the masculine, and the singular
            shall include the plural wherever the context so requires.

11.06 Proof of Death and Right of Beneficiary or Other Person

      The Committee may require and rely on such proof of death and such

<PAGE>

      evidence of the right of any Beneficiary or other person to receive the
      value of the Plan benefits of a deceased Participant as the Committee may
      deem proper, and its determination of death and of the right of that
      Beneficiary or other person to receive payment shall be conclusive.

11.07 Failure to Locate Recipient

      In the event that the Committee is unable to locate a Participant or
      Beneficiary who is entitled to payment under the Plan within five (5)
      years from the date such payment was to have been made, the amount to
      which such Participant or Beneficiary was entitled shall be declared a
      forfeiture and shall be used to reduce future Matching Contributions to
      the Plan. If the Participant or Beneficiary later is located, the benefit
      that was previously forfeited hereunder shall be restored by means of
      additional Employer contributions to the Plan.

11.08 Electronic Transmission of Notices to Participants

        Notwithstanding any provision of the Plan to the contrary, any notice
        required to be distributed to Participants, Beneficiaries and Alternate
        Payees pursuant to the terms of the Plan may, at the direction of the
        Committee, be transmitted electronically to the extent permitted by, and
        in accordance with any procedures set forth in, applicable law and
        regulations.

                                   ARTICLE 12
                        Amendment, Merger and Termination

12.01 Amendment of Plan

      (a)   The Company,  acting through the Board,  reserves the right at any
            time and from time to time, and  retroactively if deemed necessary
            or  appropriate,  to  amend  in whole or in part any or all of the
            provisions  of the  Plan.  Effective  November  21,  1994  through
            January 25, 1998,  the Committee,  or its delegate,  may amend the
            Plan,  provided  that any  amendment  adopted by the Committee may
            not have an impact on the  Company's  annual  expense of more than
            five (5)  million  dollars,  except  that  such  five (5)  million
            dollar  limit shall not apply to  amendments  necessary  to comply
            with  laws  or  regulations.   Effective  January  26,  1998,  the
            Committee,  or its  delegate,  shall  have the  power to amend the
            Plan to:

            (i)   comply with laws and regulations,  or as otherwise may be
                  desirable when prompted by a change in law or regulation; and

            (ii)  make any other change that may be necessary or desirable
                  provided any amendment adopted pursuant to this Section 12
                  shall not increase the Company's annual expense by more than
                  five (5) million dollars.

      (b)   Any action required or permitted to be taken by the Board or the
            Committee under the Plan shall be by resolution adopted by the Board
            or the Committee at a meeting held either in person or by telephone
            or other electronic means, or by unanimous written consent in lieu
            of a meeting.

      (c)   No  amendment  shall make it possible for any part of the funds of

<PAGE>

            the Plan to be used for, or diverted to,  purposes  other than for
            the exclusive  benefit of persons  entitled to benefits  under the
            Plan.  No  amendment   shall  be  made  that  has  the  effect  of
            decreasing the accrued  benefits of any Participant or of reducing
            the  nonforfeitable  percentage  of  the  accrued  benefits  of  a
            Participant  below the  nonforfeitable  percentage  computed under
            the  Plan as in  effect  on the  date on which  the  amendment  is
            adopted  or, if later,  the date on which  the  amendment  becomes
            effective.

12.02 Merger or Consolidation

      The Plan may not be merged or consolidated with, and its assets or
      liabilities may not be transferred to, any other plan unless each person
      entitled to benefits under the Plan would, if the resulting plan were then
      terminated, receive a benefit immediately after the merger, consolidation,
      or transfer that is equal to or greater than the benefit he would have
      been entitled to receive immediately before the merger, consolidation, or
      transfer if the Plan had then terminated.

12.03 Additional Participating Employers

      (a)   With the consent of the  Company,  any  subsidiary  or  affiliated
            corporation  or  division of such  corporation  may adopt the Plan
            for its Eligible  Employees.  An Employer  adopting the Plan shall
            compile   and  submit  all   information   required  by  the  Plan
            Administrator  with  reference  to  its  Eligible  Employees.   An
            entity  will be  considered  to have  adopted  the  Plan  with the
            consent of the  Company  if it takes  significant  action  that is
            consistent  with the adoption of the Plan,  the Board or Committee
            is aware of the action, and neither objects to the action.

      (b)   If an entity adopts the Plan in accordance with Section  12.03(a),
            or if any persons  become  Employees  of an Employer as the result
            of merger or  consolidation or as the result of acquisition of all
            or part of the assets or business of another company,  the Company
            shall determine to what extent,  if any, previous service with the
            subsidiary  or associated  company  shall be recognized  under the
            Plan, but subject to the continued  qualification of the trust for
            the Plan as tax-exempt under the Code.

      (c)   With the approval of the  Company,  a  participating  Employer may
            terminate  its  participation  in the Plan after giving sixty (60)
            days' notice of its  intention  to the  Company,  unless a shorter
            notice  shall  be  agreed  to by  the  Company.  In  addition,  an
            Employer will cease to  participate in the Plan from and after the
            date it  ceases to be an  Affiliated  Employer.  In either  event,
            the  assets of the Plan held on  account  of  Participants  in the
            employ of that Employer,  and any unpaid Aggregate Accounts of all
            Participants  who have separated from the employ of that Employer,
            shall be determined by the  Committee.  Subject to the  provisions
            of Section 8.04,  those assets shall be distributed as provided in
            Section 12.05 if the Plan is  terminated  or partially  terminated
            as a  result  of  the  withdrawal  of  such  Employer.  Otherwise,
            benefits   payable  to  Employees   employed  by  the  withdrawing
            Employer  shall be  payable to such  Employees  when due under the
            Plan,  but  such  Employees  shall  not  be  considered   Eligible
            Employees from and after the date of withdrawal by their Employer.

12.04 Termination of Plan

<PAGE>

      The Company may terminate the Plan for any reason at any time.

12.05 Distribution of Assets on Plan Termination or a Complete  Discontinuance
      of Contributions

      (a)   Subject to the provisions of Section 8.04, in case of termination of
            the Plan or a complete discontinuance of contributions under the
            Plan, the rights of Participants to the benefits accrued under the
            Plan to date of termination or discontinuance of contributions shall
            remain fully vested and nonforfeitable.

      (b)   On Plan termination or discontinuance of contributions, the
            Committee shall instruct the Trustee to allocate any unallocated
            assets of the Trust Fund among the Aggregate Accounts of
            Participants and Beneficiaries in accordance with the provisions of
            Article 12.

      (c)   After  providing for payment of any expenses  properly  chargeable
            against the Trust Fund,  the  Committee  may direct the Trustee to
            distribute  assets  remaining  in the  Trust  Fund.  Assets in any
            Suspense  Account  must be  returned  to the  Employers  in  kind.
            Distributions to Participants or  Beneficiaries  may be in cash or
            in  kind  and  are  not  subject  to  the   regular   distribution
            provisions  of this Plan  except that  distributions  must be in a
            form  that  the  Committee   deems   consistent   with   statutory
            requirements.  Except as specifically  provided  otherwise by law,
            the Committee's determination is conclusive on all persons.

      (d)   In the event of a partial termination of the Plan, the provisions of
            this Section shall be applicable to the Participants affected by the
            partial termination.

12.05 Notification of Termination

      On a termination of the Plan in accordance with this Article, the
      Committee shall notify the Employers, the Trustee, the Participants, and
      all other necessary parties. The Committee shall thereafter continue the
      administration of the Plan for the purpose of winding up its affairs and
      may take all action reasonably required to accomplish such purpose.

                                   ARTICLE 13
                              Top-Heavy Provisions

13.01 Priority Over Other Plan Provisions

      If the Plan is or becomes a Top-Heavy Plan in any Plan Year, the
      provisions of this Article shall supersede any conflicting provisions of
      the Plan. However, the provisions of this Article shall not operate to
      increase the rights or benefits of Participants under the Plan except to
      the extent required by the Code Section 416 and other provisions of law
      applicable to Top-Heavy Plans.

13.02 Definitions Used in this Article

      The following words and phrases, when used with initial capital letters,
      will have the meanings set forth below.

      (a)   "Defined Benefit Dollar Limitation" means, for any Plan Year,
            $90,000 multiplied by the Adjustment Factor.

      (b)   "Defined Benefit Plan" means a qualified plan other than a Defined
            Contribution Plan.

<PAGE>

      (c)   "Defined  Contribution  Dollar  Limitation"  means,  for any  plan
            year,  $30,000 or, if greater,  25% of the Defined  Benefit Dollar
            Limitation  of the same Plan Year. If a short  limitation  year is
            created  because of a Plan  amendment  changing the Plan Year to a
            different  12-consecutive-month  period, the Defined  Contribution
            Dollar  Limitation  for the short  Plan Year will not  exceed  the
            amount  determined  in the  preceding  sentences  multiplied  by a
            fraction,  the  numerator  of which is the number of months in the
            short Plan Year and the denominator of which is 12.

      (d)   "Defined   Contribution   Plan"  means  the   tax-qualified   plan
            described in Code Section 414(i).

      (e)   "Determination Date" means, for the first Plan Year of the Plan, the
            last day of the Plan Year and, for any subsequent Plan Year, the
            last day of the preceding Plan Year.

      (f)   "Determination Period" means the Plan Year containing the
            Determination Date and the four preceding Plan Years.

      (g)   "Includable Compensation" means Statutory Compensation limited each
            year by the Maximum Compensation Limitation.

      (h)   "Key  Employee"  means any  Employee or former  Employee  (and the
            Beneficiary  of a deceased  Employee)  who at any time  during the
            Determination  Period  was (i) an  officer  of an  Employer  or an
            Affiliated Employer, if such individual's  Includable Compensation
            (modified as described  below) exceeds 50% of the Defined  Benefit
            Dollar  Limitation,  (ii) an  owner  (or one  considered  an owner
            under Code Section 318) of one of the ten largest  interests in an
            Employer  or  an  Affiliated   Employer,   if  such   individual's
            Includable  Compensation  exceeds the Defined  Contribution Dollar
            Limitation,  (iii) a five (5)  percent  owner of an Employer or an
            Affiliated  Employer,  or  (iv)  a one  (l)  percent  owner  of an
            Employer  or an  Affiliated  Employer  who has  annual  Includable
            Compensation of more than $150,000.  The  determination  of who is
            a Key  Employee  will be  made in  accordance  with  Code  Section
            416(i).

      (i)   "Minimum  Allocation" means the allocation  described in the first
            sentence of Section 13.03.

      (j)   "Permissive Aggregation Group" means the Required Aggregation Group
            of Qualified Plans plus any other qualified plan or qualified plans
            of an Employer or an Affiliated Employer that when considered as a
            group with the Required Aggregation Group, would continue to satisfy
            the requirements of Code Sections 401(a)(4) and 410 (including
            simplified employee pension plans).

      (k)   "Present Value" means present value based only on the interest and
            mortality rates specified in a Defined Benefit Plan.

      (l)   "Required Aggregation Group" means the group of plans consisting of
            each qualified plan (including simplified employee pension plans) of
            an Employer or an Affiliated Employer that enables a Qualified Plan
            to meet the requirements of Code Section 401(a)(4) or 410.

      (m)   "Top-Heavy  Plan" means the Plan for any Plan Year in which any of
            the following  conditions  exists: (i) the Top-Heavy Ratio for the
            Plan  exceeds  60%  and the  Plan  is not a part  of any  Required
            Aggregation  Group or  Permissive  Aggregation  Group of qualified
            plans;  (ii) the Plan is a part of a  Required  Aggregation  Group

<PAGE>

            but not part of a Permissive  Aggregation Group of qualified plans
            and  the  Top-Heavy  Ratio  for  the  Required  Aggregation  Group
            exceeds   60%;  or  (iii)  the  Plan  is  a  part  of  a  Required
            Aggregation  Group and part of a Permissive  Aggregation  Group of
            qualified  plans  and  the  Top-Heavy  Ratio  for  the  Permissive
            Aggregation Group exceeds 60%.

      (n)   "Top-Heavy Ratio" means a fraction,  the numerator of which is the
            sum of the  Present  Value of  accrued  benefits  and the  account
            balances (as required by Code Section  416)) of all Key  Employees
            with respect to such Qualified Plans as of the Determination  Date
            (including  any part of any  accrued  benefit or  account  balance
            distributed  during  the  five  (5)  year  period  ending  on  the
            Determination  Date)  and the  denominator  of which is the sum of
            the  Present  Value  of  the  accrued  benefits  and  the  Account
            balances  (including  any part of any  accrued  benefit or account
            balance   distributed  in  the  five-year  period  ending  on  the
            Determination   Date)  of  all  Employees  with  respect  to  such
            qualified  plans  as of  the  Determination  Date.  The  value  of
            account  balances and the Present  Value of accrued  benefits will
            be determined as of the most recent Top-Heavy  Valuation Date that
            falls  within  or ends  with the  12-month  period  ending  on the
            Determination  Date,  except as provided  in Code  Section 416 for
            the first and second  Plan Years of a Defined  Benefit  Plan.  The
            account  balances and accrued benefits of a Participant who is not
            a Key  Employee but who was a Key Employee in a prior year will be
            disregarded.  The  calculation  of the  Top-Heavy  Ratio,  and the
            extent  to  which   distributions,   rollovers,   transfers,   and
            contributions  unpaid as of the Determination  Date are taken into
            account,  will  be made  in  accordance  with  Code  Section  416.
            Employee  contributions  described in Code Section  219(e)(2) will
            not be taken into account for purposes of computing  the Top-Heavy
            Ratio.  When aggregating  plans, the value of account balances and
            accrued   benefits  will  be  calculated  with  reference  to  the
            Determination  Dates that fall within the same calendar  year. The
            accrued  benefit of any Employee other than a Key Employee will be
            determined  under the method,  if any, that uniformly  applies for
            accrual  purposes  under  all  Qualified  Plans  maintained  by an
            Employer  or an  Affiliated  Employer  and  included in a Required
            Aggregation  Group or a Permissive  Aggregation Group or, if there
            is no such  method,  as if the benefit  accrued  not more  rapidly
            than the  slowest  accrual  rate  permitted  under the  fractional
            accrual rate of Code  Section  411(b)(1)(C).  Notwithstanding  the
            foregoing,  the  account  balances  and  accrued  benefits  of any
            Employee   who  has  not   performed   services  for  an  Employer
            maintaining  any of the aggregated  plans during the five (5) year
            period  ending on the  Determination  Date will not be taken  into
            account for purposes of this subsection.

      (o)   "Top-Heavy Valuation Date" means the last day of each Plan Year.

13.03 Minimum Allocation

      (a)   For any Plan  Year in which  the Plan is a  Top-Heavy  Plan,  each
            Participant  who is not a Key Employee  will receive an allocation
            of  Employer  contributions  of not less than the  lesser of 3% of
            his Includable  Compensation  for such Plan Year or the percentage
            of Includable  Compensation that equals the largest  percentage of
            Participating  Employer contributions and forfeitures allocated to
            a Key  Employee.  The Minimum  Allocation  is  determined  without
            regard  to  any   Social   Security   contribution.   Tax-Deferred
            Contributions  made  on  behalf  of  Participants  who are not Key
            Employees  will  not be  treated  as  Employer  contributions  for

<PAGE>

            purposes of the Minimum  Allocation in Plan Years  beginning after
            December 31, 1988.  Matching  Contributions  that are allocated to
            Participants  who are not Key  Employees  and that are taken  into
            account in  determining  a  Participant's  Deferral  Percentage or
            Contribution  Percentage for a Plan Year beginning  after December
            31,  1988 will not be treated as Employer  contributions  for such
            Plan Year for  purposes  of the  Minimum  Allocation.  The Minimum
            Allocation  applies  even though under other Plan  provisions  the
            Participant   would  not  otherwise  be  entitled  to  receive  an
            allocation,  or would have  received a lesser  allocation  for the
            Plan  Year  because  (i)  the  non-Key   Employee  fails  to  make
            mandatory  contributions to the Plan, (ii) the non-Key  Employee's
            Includable  Compensation  is less than a stated  amount,  or (iii)
            the non-Key  Employee  fails to complete 1,000 Hours of Service in
            the Plan Year.

      (b)   No Minimum Allocation will be provided pursuant to subsection (a) to
            a Participant who is not employed by an Employer or an Affiliated
            Employer on the last day of the Plan Year.

      (c)   If an Employer or an  Affiliated  Employer  maintains  one or more
            other  Defined  Contribution  Plans  covering  Employees  who  are
            Participants  in  this  Plan,  the  Minimum   Allocation  will  be
            provided under this Plan,  unless such other Defined  Contribution
            Plans make  explicit  reference  to this Plan and provide that the
            Minimum  Allocation will not be provided under this Plan, in which
            case the  provisions  of  subsection  (a)  will  not  apply to any
            Participant  covered under such other Defined  Contribution Plans.
            If an Employer or an  Affiliated  Employer  maintains  one or more
            Defined Benefit Plans covering  Employees who are  Participants in
            this Plan and such Defined  Benefit Plans  provide that  Employees
            who are  Participants  therein  will  accrue the  minimum  benefit
            applicable  to top-heavy  Defined  Benefit  Plans  notwithstanding
            their   participation   in  this  Plan,  then  the  provisions  of
            subsection  (a) will not apply to any  Participant  covered  under
            such  Defined  Benefit  Plans.  If an  Employer  or an  Affiliated
            Employer  maintains  one or more Defined  Benefit  Plans  covering
            Employees who are  Participants  in this Plan,  and the provisions
            of the preceding  sentence do not apply, then each Participant who
            is not a Key Employee  and who is covered by such Defined  Benefit
            Plans will  receive a Minimum  Allocation  determined  by applying
            the provisions of subsection (a) with the  substitution of "5%" in
            each place that "3%" occurs therein.

      (d)   The Participant's Minimum Allocation, to the extent required to be
            nonforfeitable under Code Section 416(b) and the special vesting
            schedule provided in this Article, may not be forfeited under Code
            Section 411(a)(3)(B) (relating to suspension of benefits on
            reemployment) or 411(a)(3)(D) (relating to withdrawal of mandatory
            contributions).

13.04 Modification of Aggregate Benefit Limit

      (a)   Subject to the provisions of subsection (b), in any Plan Year in
            which the Top-Heavy Ratio exceeds 60%, the aggregate benefit limit
            described in Article 14 will be modified by substituting "100%" for
            "125%" in Sections 13.02(h) and (k).

      (b)   The  modification  of the  aggregate  benefit  limit  described in
            subsection  (a) will not be required if the  Top-Heavy  Ratio does
            not exceed 90% and one of the  following  conditions  is met:  (i)
            Employees who are not Key Employees do not  participate  in both a
            Defined Benefit Plan and a Defined  Contribution  Plan that are in

<PAGE>

            the  Required   Aggregation  Group,  and  the  Minimum  Allocation
            requirements  of Section  13.03(a) are met when such  requirements
            are  applied  with the  substitution  of "4%" for  "3%";  (ii) the
            Minimum  Allocation  requirements of Section 13.03(c) are met when
            such  requirements  are applied with the  substitution of "7-1/2%"
            for "5%"; or (iii)  Employees  who are not Key  Employees  have an
            accrued  benefit of not less than 3% of their  average  Includable
            Compensation  for the five  (5)  consecutive  Plan  Years in which
            they had the highest Includable  Compensation  multiplied by their
            Years of  Service  in which the Plan is a  Top-Heavy  Plan (not to
            exceed a total such  benefit of 30%)  expressed  as a life annuity
            commencing  at  the  Participant's  normal  retirement  age  in  a
            Defined Benefit Plan that is in the Required Aggregation Group.

13.05 Minimum Vesting

      The vesting provided in Article 5 exceeds the minimum vesting of Section
      416 of the Code and hence special minimum top-heavy vesting requirements
      are not required under this Plan.

                                   ARTICLE 14
    Limitations on Contributions and Allocations to Participants' Accounts

14.01 Definitions Used in This Article

      The following defined terms have the meanings set forth below:

      (a)  "Actual Deferral Percentage" means, with respect to a specified group
            of  Employees,  the average of the ratios,  calculated  separately
            for  each   Employee  in  that   group,   of  (a)  the  amount  of
            Tax-Deferred  Contributions  made pursuant to  Section 3.01  for a
            Plan Year  (including  Tax-Deferred  Contributions  returned  to a
            Highly   Compensated   Employee  and  Tax-Deferred   Contributions
            returned  to  any  Employee)  to  (b)  the  Employee's   Statutory
            Compensation  for that entire  Plan Year,  provided  that,  on the
            direction  of the  Committee,  Statutory  Compensation  for a Plan
            Year  shall be  counted  only if  received  during  the  period an
            Employee is, or is eligible to become,  a Participant.  The Actual
            Deferral  Percentage  for each group and the ratio  determined for
            each  Employee in the group shall be calculated to the nearest one
            one-hundredth of one (1) percent.  For purposes of determining the
            Actual   Deferral   Percentage  for  a  Plan  Year,   Tax-Deferred
            Contributions  may be taken into  account  for a Plan Year only if
            they:

            (i)   relate to Compensation that either would have been received by
                  the Employee in the Plan Year but for the deferral election or
                  are attributable to services performed by the Employee in the
                  Plan Year and would have been received by the Employee within
                  2-1/2 months after the close of the Plan Year but for the
                  deferral election;

            (ii)  are allocated to the Employee as of a date within that Plan
                  Year and the allocation is not contingent on the participation
                  or performance of service after such date; and

            (iii) are actually paid to the Trustee no later than twelve (12)
                  months after the end of the Plan Year to which the
                  contributions relate.

      (b)   "Contribution  Percentage"  means,  with  respect  to a  specified
            group  of  Employees,  the  average  of  the  ratios,   calculated
            separately for each Employee in that group,  of (a) the sum of the

<PAGE>

            Employee's  Matching  Contribution  and Special  Contribution  for
            that Plan Year  (excluding  any Matching  Contribution  or Special
            Contributions  forfeited under the provisions of Sections 3.01 and
            14.02) to (b) his  Statutory  Compensation  for that  entire  Plan
            Year provided that, on the direction of the  Committee,  Statutory
            Compensation  for a Plan Year  shall be counted  only if  received
            during the period an  Employee  is, or is  eligible  to become,  a
            Participant.  The  Contribution  Percentage for each group and the
            ratio   determined  for  each  Employee  in  the  group  shall  be
            calculated to the nearest one one-hundredth of one (1) percent.

      (c)   "Earnings"  means the  amount of  income to be  returned  with any
            excess  deferrals,  excess  contributions,   or  excess  aggregate
            contributions   under   Section 3.01,   14.02,  14.03,  or  14.04.
            Earnings on excess  deferrals  and excess  contributions  shall be
            determined by  multiplying  the income earned on the  Tax-Deferred
            Account for the Plan Year by a fraction,  the  numerator  of which
            is the excess deferrals or excess  contributions,  as the case may
            be,  for  the  Plan  Year  and the  denominator  of  which  is the
            Tax-Deferred  Account  balance  at  the  end  of  the  Plan  Year,
            disregarding  any income or loss  occurring  during the Plan Year.
            Earnings on excess aggregate  contributions shall be determined in
            a   similar   manner   by   substituting   the  sum  of   Matching
            Contributions  and  Special  Contributions  for  the  Tax-Deferred
            Account,  and the excess  aggregate  contributions  for the excess
            deferrals and excess contributions in the preceding sentence.

      (d)   "Nonhighly Compensated Employee" means for any Plan Year an Employee
            of the Employer or an affiliated Employer who is not a Highly
            Compensated Employee for that Plan Year.

14.02 Actual Deferral Percentage Test

      With respect to each Plan Year commencing on or after January 1, 1997, the
      Actual Deferral Percentage for that Plan Year for Highly Compensated
      Employees who are Participants or eligible to become Participants for that
      Plan Year shall not exceed the Actual Deferral Percentage for the
      preceding Plan Year for all Nonhighly Compensated Employees for the
      preceding Plan Year who were Participants or eligible to become
      Participants during the preceding Plan Year multiplied by 1.25. If the
      Actual Deferral Percentage for such Highly Compensated Employees does not
      meet the foregoing test, the Actual Deferral Percentage for such Highly
      Compensated Employees for that Plan Year may not exceed the Actual
      Deferral Percentage for the preceding Plan Year for all Nonhighly
      Compensated Employees for the preceding Plan Year who were Participants or
      eligible to become Participants during the preceding Plan Year by more
      than two (2) percentage points, and such Actual Deferral Percentage for
      such Highly Compensated Employees for the Plan Year may not be more than
      two (2) times the Actual Deferral Percentage for the preceding Plan Year
      for all Nonhighly Compensated Employees for the preceding Plan Year who
      were Participants or eligible to become Participants during the preceding
      Plan Year (or such lesser amount as the Committee shall determine to
      satisfy the provisions of Section 14.04). The Employer may elect to use
      the Actual Deferral Percentage for Nonhighly Compensated Employees for the
      Plan Year being tested rather than the preceding Plan Year provided that
      such election must be evidenced by a Plan amendment and once made may not
      be changed except as provided by the Secretary of the Treasury.
      Notwitstanding the foregoing, the actual deferral percentage test shall be
      applied separately to the ESOP and to the remainder of the Plan, as if
      each were a separate plan.

      Notwithstanding any preceding provision of the Plan to the contrary, for

<PAGE>

      Plan Years 1997, 1998, 1999, and 2000, the Actual Deferral Percentage Test
      was performed using the Actual Deferral Percentage for Nonhighly
      Compensated Employees for the Plan Year being tested in lieu of the
      preceding Plan Year.

      The Committee may implement rules limiting the Tax-Deferred Contributions
      that may be made on behalf of some or all Highly Compensated Employees so
      that this limitation is satisfied. If the Committee determines that the
      limitation under this Section has been exceeded in any Plan Year, the
      following provisions shall apply:

      (a)   The actual deferral ratio of the Highly Compensated Employee with
            the highest actual deferral ratio  shall be  reduced  to the extent
            necessary to meet the actual deferral  percentage test or to cause
            such  ratio to  equal  the  actual  deferral  ratio of the  Highly
            Compensated  Employee with the  next-highest  ratio.  This process
            will be  repeated  until the actual  deferral  percentage  test is
            passed.   Each  ratio   shall  be  rounded  to  the   nearest  one
            one-hundredth of  one (1) percent  of the Participant's  Statutory
            Compensation.  The amount of  Tax-Deferred  Contributions  made by
            each  Highly   Compensated   Employee  in  excess  of  the  amount
            permitted  under  his  revised   deferral  ratio  shall  be  added
            together.   This  total  dollar  amount  of  excess  contributions
            ("excess  contributions")  shall then be  allocated to some or all
            Highly Compensated  Employees in accordance with the provisions of
            paragraph (b) below.

      (b)   The Tax-Deferred  Contributions of the Highly Compensated  Employee
            with the highest dollar amount of Tax-Deferred Contributions shall
            be reduced by the lesser of (i) the amount  required  to cause that
            Employee's  Tax-Deferred  Contributions to equal the dollar amount
            of  the  Tax-Deferred  Contributions  of  the  Highly  Compensated
            Employee  with the  next-highest  dollar  amount  of  Tax-Deferred
            Contributions  or  (ii)  an  amount  equal  to  the  total  excess
            contributions.   This  procedure  is  repeated  until  all  excess
            contributions  are allocated.  The amount of excess  contributions
            allocated  to  a  Highly  Compensated   Employee,   together  with
            earnings  thereon,  shall be distributed to him in accordance with
            the provisions of paragraph (c).

      (c)   The excess contributions, together with earnings thereon, allocated
            to a Participant shall be paid to the Participant  before the close
            of the Plan  Year  following  the Plan  Year in which  the  excess
            contributions were made, and to the extent practicable, within 2 1/2
            months  of  the  close  of the  Plan  Year  in  which  the  excess
            contributions  were made.  However,  any excess  contributions for
            any Plan Year shall be reduced by any  Tax-Deferred  Contributions
            previously  returned to the  Participant  under  Section 3.01  for
            that  Plan  Year.  In the  event  any  Tax-Deferred  Contributions
            returned  under this Section were matched by Matching [or Special]
            Contributions,  such  corresponding  Matching [and, if applicable,
            Special] Contributions,  with earnings thereon, shall be forfeited
            and used to reduce Employer contributions.

      (d)   In the event any Matching (and Special) Contributions subject to
            forfeiture under this Section have been distributed to the
            Participant, the Employer shall make reasonable efforts to recover
            the contributions from the Participant.

14.03 Contribution Percentage Test

<PAGE>

      With respect to each Plan Year commencing on or after January 1, 1997, the
      Contribution Percentage for that Plan Year for Highly Compensated
      Employees who are Participants or eligible to become Participants for that
      Plan Year shall not exceed the Contribution Percentage for the preceding
      Plan Year for all Nonhighly Compensated Employees for the preceding Plan
      Year who were Participants or eligible to become Participants during the
      preceding Plan Year multiplied by 1.25. If the Contribution Percentage for
      such Plan Year for such Highly Compensated Employees does not meet the
      foregoing test, the Contribution Percentage for such Highly Compensated
      Employees for the Plan Year may not exceed the Contribution Percentage for
      the preceding Plan Year for all Nonhighly Compensated Employees for the
      preceding Plan Year who were Participants or eligible to become
      Participants during the preceding Plan Year by more than two (2)
      percentage points, and the Contribution Percentage for such Highly
      Compensated Employees for the Plan Year may not be more than two (2) times
      the Contribution Percentage for the preceding Plan Year for all Nonhighly
      Compensated Employees for the preceding Plan Year who were Participants or
      eligible to become Participants during the preceding Plan Year (or such
      lesser amount as the Committee shall determine to satisfy the provisions
      of Section 14.04). The Employer may elect to use the actual Contribution
      Percentage for Nonhighly Compensated Employees for the Plan Year being
      tested rather than the preceding Plan Year provided that such election
      must be evidenced by a Plan amendment and once made may not be changed
      except as provided by the Secretary of the Treasury. Notwitstanding the
      foregoing, the actual contribution percentage test shall be applied
      separately to the ESOP and to the remainder of the Plan, as if each were a
      separate plan.

      Notwithstanding any preceding provision of the Plan to the contrary, for
      Plan Years 1997, 1998, 1999, and 2000, the Contribution Percentage Test
      was performed using the Actual Contribution Percentage for Nonhighly
      Compensated Employees for the Plan Year being tested in lieu of the
      preceding Plan Year.

      If the Committee determines that the limit under this Section 14.03 has
      been exceeded in any Plan Year, the following provisions shall apply:

      (a)   The actual contribution ratio of the Highly Compensated Employee
            with the highest actual contribution ratio  shall be reduced to the
            extent  necessary to meet the test or to cause such ratio to equal
            the actual  contribution ratio of the Highly Compensated  Employee
            with the  next-highest  actual  contribution  ratio.  This process
            will be repeated until the actual contribution  percentage test is
            passed.   Each  ratio   shall  be  rounded  to  the   nearest  one
            one-hundredth  of  one (1) percent  of a  Participant's  Statutory
            Compensation.  The amount of  Matching  Contributions  and Special
            Contributions  made by or on  behalf  of each  Highly  Compensated
            Employee  in  excess of the  amount  permitted  under his  revised
            actual  contribution  ratio  shall be added  together.  This total
            dollar   amount  of  excess   contributions   ("excess   aggregate
            contributions")  shall  then be  allocated  to some or all  Highly
            Compensated   Employees  in  accordance  with  the  provisions  of
            paragraph (b) below.

      (b)   The Matching Contributions and Special Contributions of the Highly
            Compensated  Employee  with  the  highest  dollar  amount  of such
            contributions  shall be  reduced  by the  lesser of (i) the amount
            required  to cause  that  Employee's  Matching  Contributions  and
            Special   Contributions   to  equal  the  dollar  amount  of  such
            contributions  of  the  Highly   Compensated   Employee  with  the
            next-highest  dollar  amount  of  such  contributions,  or (ii) an
            amount equal to the total  excess  aggregate  contributions.  This

<PAGE>

            procedure  is repeated  until all excess  aggregate  contributions
            are  allocated.  The  amount  of  excess  aggregate  contributions
            allocated  to each  Highly  Compensated  Employee,  together  with
            earnings thereon,  shall be distributed or forfeited in accordance
            with the provisions of paragraph (c) below.

      (c)   If excess aggregate contributions are allocated to a Highly
            Compensated Employee under paragraph (b) above, so much of the
            Matching Contributions and Special Contributions, together with
            earnings, as shall be necessary to equal the balance of the excess
            aggregate contributions shall be forfeited and applied to reduce
            Employer contributions.

      (d)   Any  repayment or  forfeiture  of excess  aggregate  contributions
            shall be made  before  the  close of the Plan Year  following  the
            Plan Year for which the excess aggregate  contributions  were made
            and, to the extent practicable,  any repayment or forfeiture shall
            be made  within  2 1/2months of the close of the Plan Year in which
            the excess  aggregate  contributions  were made.  In the event any
            Matching (and Special)  Contributions  subject to forfeiture  have
            been  distributed  to the  Participant,  the  Employer  shall make
            reasonable   efforts  to  recover  the   contributions   from  the
            Participant.

14.04 Aggregate Contribution Limitation

      Notwithstanding the provisions of Sections 14.02 and 14.09, in no event
      shall the sum of the Actual Deferral Percentage of the group of eligible
      Highly Compensated Employees and the Contribution Percentage of such
      group, after applying the provisions of Sections 14.02 and 14.09, exceed
      the "aggregate limit" as provided in Section 401(m)(9) of the Code and the
      regulations issued thereunder. In the event the aggregate limit is
      exceeded for any Plan Year, the Contribution Percentages of the Highly
      Compensated Employees shall be reduced to the extent necessary to satisfy
      the aggregate limit in accordance with the procedure set forth in Section
      14.09.

14.05 Additional Discrimination Testing Provision

      (a)   If any Highly  Compensated  Employee is a  participant  of another
            qualified  plan of the Employer or an Affiliated  Employer,  other
            than   an   employee    stock    ownership   plan   described   in
            Section 4975(e)(7)  of the Code or any other  qualified  plan that
            must be  disaggregated  under  Section 410(b)  of the Code,  under
            which  tax-deferred  contributions or matching  contributions  are
            made on behalf of the Highly  Compensated  Employee or under which
            the Highly  Compensated  Employee makes  after-tax  contributions,
            the  Committee  shall  implement  rules,  which shall be uniformly
            applicable  to all  employees  similarly  situated,  to take  into
            account  all  such   contributions  for  the  Highly   Compensated
            Employee  under all such  plans in  applying  the  limitations  of
            Sections 14.02,  14.03,  and 14.04.  If any other  such  qualified
            plan  has a  plan  year  other  than  the  Plan  Year  defined  in
            Section 1.35,  the  contributions  to be  taken  into  account  in
            applying the limitations of Sections 14.02,  14.03, and 14.04 will
            be those  made in the plan  years  ending  with or within the same
            calendar year.

      (b)   In the event that this Plan is  aggregated  with one or more other
            plans  to  satisfy  the  requirements  of  Sections 401(a)(4)  and
            410(b)  of the  Code  (other  than  for  purposes  of the  average
            benefit  percentage  test)  or if  one  or  more  other  plans  is
            aggregated  with this Plan to  satisfy  the  requirements  of such

<PAGE>

            sections  of the  Code,  then the  provisions  of  Sections 14.02,
            14.03,  and 14.04  shall be  applied  by  determining  the  Actual
            Deferral  Percentage and  Contribution  Percentage of employees as
            if  all  such  plans  were  a  single   plan.   If  this  Plan  is
            permissively  aggregated with any other plan or plans for purposes
            of satisfying  the  provisions of  Section 401(k)(3)  of the Code,
            the   aggregated   plans  also  must  satisfy  the  provisions  of
            Sections 401(a)(4)  and  410(b) of the Code as though  they were a
            single plan. For Plan Years  beginning  after  December 31,  1989,
            plans may be  aggregated  under  this  paragraph (b)  only if they
            have the same plan year.

      (c)   The Employer may elect to use Tax-Deferred Contributions to pass the
            tests described in Sections 14.03, and 14.04, provided that the test
            described in Section 14.02 is passed prior to such election and
            continues to be passed following the Employer's election to shift
            the application of those Tax-Deferred Contributions from Section
            14.02 to Section 14.03.

      (d)   The Employer may  authorize  that special  "qualified  nonelective
            contributions"  shall  be made  for a Plan  Year,  which  shall be
            allocated  in such amounts and to such  Participants,  who are not
            Highly  Compensated  Employees,  as the Committee shall determine.
            The Committee  shall  establish  such separate  accounts as may be
            necessary.   Qualified  nonelective  contributions  shall  be  one
            hundred   (100) percent   nonforfeitable   when  made.   Qualified
            nonelective   contributions   made  before  January 1,   1989  and
            earnings  credited  thereon as of that date may only be  withdrawn
            by  a  Participant  while  in  service  under  the  provisions  of
            withdrawal  after  age  59 1/2hardship  withdrawal.  Any  qualified
            nonelective  contributions  made on or after  January 1,  1989 and
            any earnings credited on any qualified  nonelective  contributions
            after such date shall only be available for  withdrawal  under the
            provisions  of  withdrawal  after age 59 1/2. Qualified nonelective
            contributions  made for the Plan Year may be used to  satisfy  the
            tests  described  in   Sections 14.02,   14.03,  and  14.04  where
            necessary.

      (e)   Notwithstanding  any  provision  of the Plan to the  contrary,  if
            Employees  included in a unit of Employees covered by a collective
            bargaining  agreement are  participating  in the Plan and not more
            than two  (2) percent  of such  Employees  are Highly  Compensated
            Employees  and   professionals,   then  such  Employees  shall  be
            disregarded in applying the provisions of  Sections 14.02,  14.03,
            and 14.04.  However,  a separate actual  deferral  percentage test
            must  be  performed  for  the  group  of   collective   bargaining
            Employees  on and after  January 1,  1993 on the basis  that those
            Employees are included in a separate cash-or-deferred arrangement.

      (f)   For Plan Years  commencing  on and after  January 1,  1999, if the
            Employer  elects to apply the  provisions of  Section 410(b)(4)(B)
            to satisfy  the  requirements  of  Section 401(k)(3)(A)(i)  of the
            Code,  the Employer may apply the  provisions  of  Sections 14.02,
            14.03,  and 14.04 by  excluding  from  consideration  all eligible
            Employees (other than Highly  Compensated  Employees) who have not
            met   the    minimum    age   and    service    requirements    of
            Section 410(a)(1)(A) of the Code.

14.06 Maximum Annual Additions

      (a)   The annual addition to a Participant's Accounts  for any Plan Year,
            which shall be considered  the  "limitation  year" for purposes of
            Section 415 of the Code,  when added to the  Participant's  annual

<PAGE>

            addition  for that Plan Year  under  any other  qualified  defined
            contribution  plan  of the  Employer  or an  Affiliated  Employer,
            shall  not  exceed an  amount  that is equal to the  lesser of (i)
            twenty-five (25) percent   of  his  aggregate   remuneration   (as
            defined  below) for that Plan Year or (ii)  $30,000,  as  adjusted
            pursuant to Section 415(d) of the Code.

      (b)   For purposes of this Section, the "annual addition" to a
            Participant's Accounts under this Plan or any other qualified
            defined contribution plan (including a deemed qualified defined
            contribution plan under a qualified defined benefit plan) maintained
            by the Employer or an Affiliated Employer shall be the sum of:

            (i)   the total contributions, including Tax-Deferred Contributions,
                  made on the Participant's behalf by the Employer and all
                  Affiliated Employers;

            (ii)  all Participant contributions, exclusive of any Rollover
                  Contributions;

            (iii) forfeitures, if applicable, that have been allocated to the
                  Participant's Accounts under this Plan or his accounts under
                  any other such qualified defined contribution plan, and solely
                  for purposes of clause (i) of paragraph (a) above; and

            (iv)  amounts  described  in  Sections 415(1)(1)   and  419A(d)(2)
                  allocated to the Participant.

            For purposes of this paragraph (b), any Tax-Deferred Contributions
            distributed under Section 14.02 and any Matching Contributions or
            Special Contributions distributed or forfeited under the provisions
            of Section 3.01, 14.02, 14.03, and 14.04 shall be included in the
            annual addition for the year allocated. However, any loan repayments
            made under Article 7 and any excess deferrals timely distributed
            from the Plan under Section 3.01 shall be excluded from the
            definition of annual addition.

      (c)   For  purposes  of  this  Section,  the  term  "remuneration"  with
            respect to any Participant  means the wages,  salaries,  and other
            amounts paid in respect of such  Participant by the Employer or an
            Affiliated  Employer for personal services actually rendered,  and
            shall include  amounts  contributed by the Employer  pursuant to a
            salary  reduction  agreement  that are not includable in the gross
            income of the Employee  under  Section 125  (effective  January 1,
            2001,  -  132(f)),  402(g),  or 457 of the Code but shall  exclude
            deferred  compensation,  stock  options,  and other  distributions
            that receive special tax benefits under the Code.  Notwithstanding
            the  foregoing,   for  limitation   years   commencing   prior  to
            January 1,  1998,  remuneration shall exclude amounts  contributed
            by the  Employer or an  Affiliated  Employer  pursuant to a salary
            reduction  agreement  that are not  includable in the gross income
            of the Employee under Section 125, 402(g)(3), or 457 of the Code.

      (d)   If the annual addition to a Participant's Accounts for any Plan
            Year, prior to the application of  the  limitation  set  forth  in
            paragraph (a)  above,  exceeds that limitation due to a reasonable
            error in  estimating a  Participant's  annual  compensation  or in
            determining the amount of Tax-Deferred  Contributions  that may be
            made with respect to a Participant  under  Section 415 of the Code
            or as the result of the allocation of  forfeitures,  the amount of
            contributions  credited to the Participant's Accounts in that Plan

<PAGE>

            Year shall be adjusted  to the extent  necessary  to satisfy  that
            limitation in accordance with the following order of priority:

            (i)   The Participant's unmatched Tax-Deferred Contributions under
                  Section 3.01 shall be reduced to the extent necessary. The
                  amount of the reduction shall be returned to the Participant
                  together with any earnings on the contributions to be
                  returned.

            (ii)  The Participant's matched Tax-Deferred Contributions and
                  corresponding Matching Contributions and Special Contributions
                  shall be reduced to the extent necessary. The amount of the
                  reduction attributable to the Participant's matched
                  Tax-Deferred Contributions shall be returned to the
                  Participant together with any earnings on those contributions
                  to be returned, and the amount attributable to the Matching
                  Contributions and Special Contributions shall be forfeited and
                  used to reduce subsequent contributions payable by the
                  Employer.

            Any Tax-Deferred Contributions returned to a Participant under this
            paragraph (d) shall be disregarded in applying the dollar limitation
            on Tax-Deferred Contributions under Section 14.02.

      (e)   Notwithstanding  the  provisions  of  paragraph  (d)  above,  if a
            Participant  is   participating  in  another   qualified   defined
            contribution  plan  of  the  Employer  or an  Affiliated  Employer
            during a particular  limitation year, and the Participant's annual
            addition for such  limitation  year,  prior to the  application of
            the  limitation  set forth in  paragraph  (a) above,  exceeds that
            limitation,  the Committee, under uniform rules equally applicable
            to similarly situated  Participants,  shall determine how to apply
            the  provisions of paragraph (d) above to satisfy the  limitation.
            In making its decision,  the Committee shall take into account the
            applicable  provisions of the other qualified defined contribution
            plans.

      (f)   For  limitation  years  commencing  prior to January 1, 2000, if a
            Participant  has at any  time  participated  in  both a  qualified
            defined  benefit plan and a qualified  defined  contribution  plan
            maintained by the Company,  an Employer or an Affiliated  Employer
            for a Plan  Year,  the sum of the  Participant's  defined  benefit
            plan  fraction and defined  contribution  plan  fraction,  as such
            terms  are  defined  in  Section  415(e) of the Code for such Plan
            Year shall not exceed 1.0.

            In the event the sum of a Participant's defined benefit fraction and
            defined contribution fraction exceeds 1.0, his benefit under any
            qualified defined benefit plan maintained by the Company or an
            Employee shall be reduced until such sum equals 1.

14.07 Return of Contributions

      (a)   If all or part of the Employer's  deductions for  contributions to
            the Plan are  disallowed  by the  Internal  Revenue  Service,  the
            portion of the  contributions to which that  disallowance  applies
            shall be returned to the Employer  without interest but reduced by
            any investment loss attributable to those contributions,  provided
            that  the   portion  is   returned   within  one  year  after  the
            disallowance   of   the   deduction.   For   this   purpose,   all
            contributions  made by the Employer are  expressly  declared to be

<PAGE>

            conditioned on their deductibility under Section 404 of the Code.

      (b)   The Employer may recover, without interest, the amount of its
            contributions to the Plan made on account of a mistake of fact,
            reduced by any investment loss attributable to those contributions,
            if recovery is made within one (1) year after the date of those
            contributions.

      (c)   In  the  event   that   Tax-Deferred   Contributions   made  under
            Section 3.01  are returned to the Employer in accordance  with the
            provisions of this Section,  the elections to reduce  Compensation
            that   were   made  by   Participants   on  whose   behalf   those
            contributions   were  made  shall  be  void   retroactive  to  the
            beginning of the period for which those  contributions  were made.
            The  Tax-Deferred  Contributions  so returned shall be distributed
            in cash to those  Participants for whom those  contributions  were
            made,  provided,  however,  that if the contributions are returned
            under  the  provisions  of  paragraph (a)  above,  the  amount  of
            Tax-Deferred  Contributions  to  be  distributed  to  Participants
            shall be  adjusted  to  reflect  any  investment  gains or  losses
            attributable to those contributions.

14.08 Contributions in Excess of Section 402(g) Limit Return of Contributions

      In no event shall the Participant's Tax-Deferred Contributions and similar
      contributions made on his behalf by the Employer or an Affiliated Employer
      to all plans, contracts, or arrangements subject to the provisions of
      Section 401(a)(30) of the Code in any calendar year exceed $7,000, as
      adjusted from time to time for the cost of living pursuant to Section
      402(g)(5) of the Code. If a Participant's Tax-Deferred Contributions in a
      calendar year reach that dollar limit, his election of Tax-Deferred
      Contributions for the remainder of the calendar year will be canceled. As
      of the first pay period of the calendar year following such cancellation,
      the Participant's election of Tax-Deferred Contributions shall again
      become effective in accordance with his previous election, unless the
      Participant elects otherwise.

      In the event that the sum of the Tax-Deferred Contributions and similar
      contributions to any other qualified defined contribution plan maintained
      by the Employer or an Affiliated Employer exceeds the dollar limit set
      forth above for any calendar year, the Participant shall be deemed to have
      elected a return of Tax-Deferred Contributions in excess of such limit
      ("excess deferrals") from this Plan. The excess deferrals, together with
      earnings, shall be returned to the Participant no later than the April 15
      following the end of the calendar year in which the excess deferrals were
      made. The amount of excess deferrals to be returned for any calendar year
      shall be reduced by any Tax-Deferred Contributions previously returned to
      the Participant under Section 14.02 for that calendar year. In the event
      any Tax-Deferred Contributions returned under this paragraph were matched
      by Matching or Special Contributions under Section 3.02 or 3.03, those
      Matching and Special Contributions, together with earnings, shall be
      forfeited and used to reduce Employer contributions. In the event those
      Matching and Special Contributions subject to forfeiture have been
      distributed to the Participant, the Employer shall make reasonable efforts
      to recover the contributions from the Participant.

      If a Participant makes tax-deferred contributions under another qualified
      defined contribution plan maintained by an employer other than the
      Employer or an Affiliated Employer for any calendar year and those
      contributions when added to his Tax-Deferred Contributions exceed the
      dollar limit under Section 14.08 for that calendar year, the Participant
      may allocate all or a portion of such excess deferrals to this Plan. In
      that event, such excess deferrals, together with earnings, shall be

<PAGE>

      returned to the Participant no later than the April 15 following the end
      of the calendar year in which such excess deferrals were made. However,
      the Plan shall not be required to return excess deferrals unless the
      Participant notifies the Committee, in writing, by March 1 of that
      following calendar year of the amount of the excess deferrals allocated to
      this Plan. The amount of any such excess deferrals to be returned for any
      calendar year shall be reduced by any Tax-Deferred Contributions
      previously returned to the Participant under Section 14.02 for that
      calendar year. In the event any Tax-Deferred Contributions returned under
      this Section 14.08 were matched by Matching or Special Contributions under
      Section 3.02 or 3.03, those Matching and Special Contributions, together
      with earnings, shall be forfeited and used to reduce Employer
      contributions. In the event those Matching and Special Contributions
      subject to forfeiture have been distributed to the Participant, the
      Employer shall make reasonable efforts to recover the contributions from
      the Participant.

                                   ARTICLE 15
                               General Provisions

15.01 No Contract of Employment

      The Plan shall not be deemed to constitute a contract between any Employer
      and any person or to be considered an inducement for the employment of any
      person by any Employer. Nothing contained in the Plan shall be deemed:
      (a)   to give any person the right to be  retained  in the service of an
            Employer; or

      (b)   to interfere with the right of any Employer to discharge any person
            at any time without regard to the effect that such discharge shall
            have on his rights or potential rights, if any, under the Plan.

      (c)   preclude  any person from being or  continuing  to be an "at will"
                  employee.

15.02 Severability

      If any provision or any portion of any provision of this Plan shall be
      held invalid or unenforceable, the remaining portions of such provision
      and the remaining provisions of this Plan shall remain valid and
      enforceable, and the invalid or unenforceable portions or provisions shall
      remain valid and enforceable as to persons or circumstances unrelated to
      those as to which there was a holding of invalidity or unenforceability.

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