Document:

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                                                                   EXHIBIT 10.55

                          REGISTRATION RIGHTS AGREEMENT

         Registration Rights Agreement, dated as of March 8, 2002, among
INTERLIANT, INC., a Delaware corporation (the "Company") and the INVESTORS (as
hereinafter defined).

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS, the Company and the Investors have entered into a Securities
Purchase Agreement (the "Purchase Agreement"), dated as of March 8, 2002,
                         ------------------
pursuant to which the Company will issue and sell to the Investors, and the
Investors will purchase from the Company, Convertible Notes (as such term is
defined in the Purchase Agreement) in the aggregate principal amount of
$10,000,000 and warrants (the "Warrants") to purchase shares of the Company's
                               --------
Common Stock, par value $.01 per share (the "Common Stock"); and
                                             ------------

         WHEREAS, in order to induce the Investors to enter into the Purchase
Agreement (and to purchase such Convertible Notes and Warrants) the Company has
agreed to provide certain registration rights with respect thereto;

         NOW, THEREFORE, in consideration of the foregoing, the mutual covenants
and agreements contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, it is agreed as
follows:

         1. Definitions. The following terms shall have (unless other wise
            -----------
provided elsewhere in this Registration Rights Agreement) the following
respective meanings (such meanings being equally applicable to both the singular
and plural form of the terms defined):

         "Agreement" means this Registration Rights Agreement, including all
amendments, modifications and supplements and any exhibits or schedules to any
of the foregoing, and shall refer to the Agreement as the same may be in effect
at the time such reference becomes operative.

         "Charter Investors" means Charterhouse Equity Partners III, L.P. and
          -----------------
Chef Nominees Limited.

         "Charter Registration Request" has the meaning given to it in Section
          ----------------------------
2(a).

         "Commission" means the United States Securities and Exchange
          ----------
Commission.

         "Common Stock" has the meaning given to it in the recitals hereto.
          ------------

         "Convertible Notes" has the meaning given to it in the Purchase
          -----------------
Agreement.

         "Demand Investor" has the meaning given in Section 3(c)(i).
          ---------------

         "Investors" means the Charter Investors and the Mobius Investors.
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         "Maximum Offering Size" has the meaning given to it in Section 2(d).
          ---------------------

         "Mobius Investors" means the entities set forth on the signature page
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hereto under the caption "Mobius Investors".

         "Mobius Registration Request" has the meaning given to it in Section
          ---------------------------
2(a).

         "NASD" means the National Association of Securities Dealers, Inc., or
          ----
any successor corporation thereto.

         "Parity Piggyback Registration Securities" means those securities of
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the Company that have "Piggyback Registration Rights" pursuant to the
Registration Rights Agreement dated as of January 27, 2000 among the Company and
the other parties thereto.

         "PIK Notes" means the additional Convertible Notes issueable in lieu of
          ---------
cash interest payments on the Convertible Notes.

         "Purchase Agreement" has the meaning given to it in the recitals
          ------------------
hereto.

         "Registering Security Holder" has the meaning given to it in Section 3.
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         "Registrable Securities" means, collectively, (i) the shares of Common
          ----------------------
Stock issuable upon conversion of the Convertible Notes or the PIK Notes, (ii)
any shares of Common Stock issuable upon exercise of Warrants, (iii) any shares
of Common Stock hereafter acquired by the Investors (excluding any shares of
Common Stock acquired by any Investor prior to the date hereof) or (iv) any
shares of Common Stock hereafter distributed to the Investors by the Company as
a stock dividend, stock split, recapitalization, reclassification or otherwise
with respect to the Convertible Notes, the PIK Notes, the Warrants or the shares
of Common Stock covered by clauses (i) (ii) or (iii) above; provided, however,
that any such securities shall cease to be Registrable Securities when (i) such
securities shall have been registered under the Securities Act, the registration
statement with respect to the sale of such securities shall have become
effective under the Securities Act and such securities shall have been disposed
of pursuant to such effective registration statement, (ii) such securities shall
have been otherwise transferred, if new certificates or other evidences of
ownership for them not bearing a legend restricting further transfer and not
subject to any stop transfer order or other restrictions on transfer shall have
been delivered by the Company and subsequent disposition of such securities
shall not require registration or qualification of such securities under the
Securities Act or any state securities law then in force, (iii) such securities
shall cease to be outstanding or (iv) such securities shall be eligible for sale
pursuant to Rule 144(k) under the Securities Act or any successor rule which
permits resale of such securities without restriction.

         "Securities Act" has the meaning given to it in Section 2(a).
          --------------

         "Warrants" has the meaning given to it in the recitals hereto.
          --------

         2. Required Registration. (a.) Upon receipt of a written request (x)
            ---------------------
from the Charter Investors (a "Charter Registration Request") or (y) from the
Mobius Investors (a "Mobius Registration Request" and, collectively with a
Charter Registration Request, a "Registration

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Request"), requesting that the Company effect the registration of Registrable
Securities under the Securities Act of 1933, as amended (the "Securities Act"),
the Company shall, as expeditiously as is possible, use its best efforts to
effect the registration under the Securities Act of all shares of Registrable
Securities which the Company has been so requested to register by the Charter
Investors or the Mobius Investors, as applicable; provided, however, that,
subject to the provisions of the immediately following sentence, the Company
shall not be required to effect more than four registrations of Registrable
Securities on Form S-1 or Form S-2 pursuant to this Section 2 for the Charter
Investors or more than four registrations of Registrable Securities on Form S-1
or Form S-2 pursuant to this Section 2 for the Mobius Investors. The Company
shall be obligated to file an unlimited number of registration statements on
Form S-3 (or any successor form) pursuant to any request therefor received from
a Charter Investor or a Mobius Investor so long as the Company is eligible to
use such form of registration statement. In order to count as an "effected"
registration statement, such registration statement shall not have been
withdrawn and all Registrable Securities registered pursuant to it (excluding
any overallotment shares) shall have been sold. The Company shall have the right
to defer the filing of any registration statement requested pursuant to this
Section 2 for a period not to exceed ninety (90) days if in the good faith
determination of the Board of Directors of the Company the filing of such
registration statement would be seriously detrimental to the Company.

         (b) If the Charter Investors or the Mobius Investors, as applicable,
shall have delivered a Registration Request to the Company, the Company shall
give written notice thereof to the Charter Investors (in the case of a Mobius
Registration Request) and the Mobius Investors (in the case of a Charter
Registration Request) at least 20 days before the initial filing with the
Commission of the Registration Statement relating thereto, which notice shall
set forth the intended method of disposition of the securities proposed to be
registered by the Company. The notice shall offer to include in such filing the
aggregate number of shares of Registrable Securities as the Charter Investors
(in the case of a Mobius Registration Request) or the Mobius Investors (in the
case of a Charter Registration Request) may request. If the Charter Investors
(in the case of a Mobius Registration Request) or the Mobius Investors (in the
case of a Charter Registration Request) shall desire to have Registrable
Securities registered under this Section 2(b), they shall advise the Company in
writing within 10 days after the date of receipt of such offer from the Company,
setting forth the amount of such Registrable Securities for which registration
is requested. The Company shall thereupon include in such filing the number of
shares of Registrable Securities for which registration is so requested, subject
to Section 2(d)(i), and shall use its best efforts to effect registration under
the Securities Act of such shares.

         (c) Underwriters. The managing underwriter or underwriters of any
public offering effected pursuant to this Section 2 shall be reasonably
acceptable to the Charter Investors (in the case of a Charter Registration
Request) or the Mobius Investors (in the case of a Mobius Registration Request)
and the Company.

         (d) Priority in Requested Registration. If the managing underwriter of
a registration pursuant to this Section 2 shall advise the Company in writing
that, in its view, the number or proposed mix of securities requested to be
included in such registration (including securities which the Company requests
to be included ) exceeds the largest number of securities which can be sold
without having a material adverse effect on such offering (the "Maximum Offering

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Size"), including the price at which such securities can be sold, the Company
will include in such registration:

                           (i) first, the Registrable Securities requested to be
                  included in such registration by the Charter Investors or by
                  the Mobius Investors, as applicable, pursuant to Section 2(a),
                  and the Registrable Securities requested to be included in
                  such registration by the Charter Investors (in the case of a
                  Mobius Registration Request) or the Mobius Investors (in the
                  case of a Charter Registration Request) pursuant to Section
                  2(b), allocated (if necessary) pro rata among the Charter
                  Investors and the Mobius Investors on the basis of the
                  relative number of Registrable Securities each of the Charter
                  Investors and the Mobius Investors, as applicable, has
                  requested to be included in such registration;

                           (ii) second, securities of the Company to be sold for
                  the account of the Company; and

                           (iii) third, securities of the Company to be sold for
                  the account of other persons, with such priorities among them
                  as the Company shall determine.

         3.       Incidental Registration.
                  -----------------------

         (a) If the Company at any time proposes to file on its behalf and/or on
behalf of any of its security holders (the "Registering Security Holders") a
Registration Statement under the Securities Act on any form (other than a
Registration Statement on Form S-4 or S-8 or any successor form for securities
to be offered in a transaction of the type referred to in Rule 145 under the
Securities Act or to employees of the Company pursuant to any employee benefit
plan, respectively) for the registration of shares of Common Stock of the
Company, it will give written notice to all holders of Registrable Securities at
least 30 days before the initial filing with the Commission of such Registration
Statement, which notice shall set forth the intended method of disposition of
the securities proposed to be registered by the Company. The notice shall offer
to include in such filing the aggregate number of shares of Registrable
Securities as such holders may request.

         (b) Each holder of any such Registrable Securities desiring to have
Registrable Securities registered under this Section 3 shall advise the Company
in writing within 20 days after the date of receipt of such offer from the
Company, setting forth the amount of such Registrable Securities for which
registration is requested. The Company shall thereupon include in such filing
the number of shares of Registrable Securities for which registration is so
requested, subject to Section 3(c), and shall use its best efforts to effect
registration under the Securities Act of such shares.

         (c) Priority In Incidental Registrations. If the managing underwriter
of a registration pursuant to this Section 3 shall advise the Company in writing
that, in its view, the number or mix of securities (including all Registrable
Securities) which the Company, the Charter Investors, the Mobius Investors and
any other persons intend to include in such registration exceeds the Maximum
Offering Size:

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                           (i) If such registration was initiated by the
                  Company, and not by any other shareholder holding demand
                  registration rights (a "Demand Investor"), then the Company
                  will include in such registration, in the priority listed
                  below, securities up to the Maximum Offering Size:

                                    (A) first, securities of the Company to be
sold for the account of the Company;

                                    (B) second, (x) the Registrable Securities
requested to be included in such registration pursuant to Section 3 hereof by
any Charter Investor or Mobius Investor holding such Registrable Securities and
(y) the securities requested to be included in such registration by any holder
of Parity Piggyback Registration Securities and by any Demand Investor,
allocated (if necessary) pro rata among such Charter Investors, Mobius
Investors, holders of Parity Piggyback Registration Securities and Demand
Investors on the basis of the relative number of (I) Registrable Securities
which the Charter Investors and the Mobius Investors have requested to be
included in such registration, and (II) Parity Piggyback Registration Securities
which the holders of Parity Piggyback Registration Securities have requested to
be included in such registration; and

                                    (C) third, securities of the Company to be
sold for the account of other persons, with such priorities among them as the
Company shall determine.

or

                          (ii) If such registration was initiated by a Demand
                  Investor, then the Company will include in such registration,
                  in the priority listed below, securities up to the Maximum
                  Offering Size:

                               (A)     first, the securities requested to be
registered by such Demand Investor;

                               (B)     second, the Registrable Securities
requested to be included in such registration by the Charter Investors, the
Mobius Investors and the holders of Parity Piggyback Registration Securities
pursuant to Section 3 hereof, allocated (if necessary) pro rata among all of
such Charter Investors, Mobius Investors and holders of Parity Piggyback
Registration Securities on the basis of the relative number of securities of the
Company each such Charter Investor, Mobius Investor or holder of Piggyback
Registration Securities has requested to be included in such registration;

                               (C)     third, securities of the Company to be
sold for the account of the Company; and

                               (D)     fourth, securities of the Company to be
sold for the account of other persons, with such priorities among them as the
Company shall determine.

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         4. Registration Procedures. If the Company is required by the
            -----------------------
provisions of Section 2 or 3 to use its best efforts to effect the registration
of any of its securities under the Securities Act, the Company will, as
expeditiously as possible:

         (a) prepare and file with the Commission a Registration Statement with
respect to such securities and use its best efforts to cause such Registration
Statement to become and remain effective for a period of time required for the
disposition of such securities by the holders thereof, but not to exceed 180
days;

         (b) prepare and file with the Commission such amendments and
supplements to such Registration Statement and the prospectus used in connection
therewith as may be necessary to keep such Registration Statement effective and
to comply with the provisions of the Securities Act with respect to the sale or
other disposition of all securities covered by such Registration Statement until
the earlier of such time as all of such securities have been disposed of in a
public offering or the expiration of 180 days;

         (c) furnish to the Investors such number of copies of a summary
prospectus or other prospectus, including a preliminary prospectus, in
conformity with the requirements of the Securities Act, and such other
documents, as such selling security holders may reasonably request;

         (d) use its best efforts to register or qualify the securities covered
by such Registration Statement under such other securities or blue sky laws of
such jurisdictions within the United States and Puerto Rico as each holder of
such securities shall request (provided, however, that the Company shall not be
obligated to qualify as a foreign corporation to do business under the laws of
any jurisdiction in which it is not then qualified or to file any general
consent to service of process), and do such other reasonable acts and things as
may be required of it to enable such holder to consummate the disposition in
such jurisdiction of the securities covered by such Registration Statement;

         (e) furnish, in connection with any registration of Registrable
Securities, on the date that such shares of Registrable Securities are delivered
to the underwriters for sale pursuant to such registration or, if such
Registrable Securities are not being sold through underwriters, on the date that
the Registration Statement with respect to such shares of Registrable Securities
becomes effective, (1) an opinion, dated such date, of the counsel representing
the Company for the purposes of such registration, addressed to the
underwriters, if any, and if such Registrable Securities are not being sold
through underwriters, then to the Investors, in customary form and covering
matters of the type customarily covered in such legal opinions; and (2) a
comfort letter dated such date, from the independent certified public
accountants of the Company, addressed to the underwriters, if any, and if such
Registrable Securities are not being sold through underwriters, then to the
Investors and, if such accountants refuse to deliver such letter to the
Investors, then to the Company in a customary form and covering matters of the
type customarily covered by such comfort letters and as the underwriters or such
holder(s) shall reasonably request;

         (f) enter into customary agreements (including an underwriting
agreement in customary form with customary indemnification provisions) and take
such other actions as are

<PAGE>

reasonably required in order to expedite or facilitate the disposition of such
Registrable Securities; and

         (g) otherwise use its best efforts to comply with all applicable rules
and regulations of the Commission, and make available to its security holders,
as soon as reasonably practicable, but not later than 18 months after the
effective date of the Registration Statement, an earnings statement covering the
period of at least 12 months beginning with the first full month after the
effective date of such Registration Statement, which earnings statements shall
satisfy the provisions of Section 11(a) of the Securities Act.

It shall be a condition precedent to the obligation of the Company to take any
action pursuant to this Agreement in respect of the securities which are to be
registered at the request of the Investors that (i) the Investors shall furnish
to the Company such information regarding the securities held by the Investors
and the intended method of disposition thereof as the Company shall reasonably
request and as shall be required under the Securities Act in connection with the
action taken by the Company and (ii) that the Investors shall deliver and
perform under such underwriting agreement as may be reasonably requested by the
underwriters.

         5. Expenses. All expenses incurred in complying with this Agreement,
            --------
including, without limitation, all registration and filing fees (including all
expenses incident to filing with the NASD), printing expenses, fees and
disbursements of counsel for the Company and counsel for the Investors, expenses
of any special audits incident to or required by any such registration and
expenses of complying with the securities or blue sky laws of any jurisdictions
pursuant to Section 4(d), shall be paid by the Company, except that the Company
shall not be liable for any fees, discounts or commissions to any underwriter in
respect of the securities sold by the Investors.

         6. Indemnification and Contribution. (a) In the event of any
            --------------------------------
registration of any Registrable Securities under the Securities Act pursuant to
this Agreement, the Company shall indemnify and hold harmless each Investor, its
directors and officers, and each other Person (including each underwriter) who
participated in the offering of such Registrable Securities and each other
Person, if any, who controls the Investor or such participating Person within
the meaning of the Securities Act, against any losses, claims, damages or
liabilities, joint or several, the Investor or any such director or officer or
participating Person or controlling Person may become subject under the
Securities Act, the Securities Exchange Act, state securities or blue sky laws
or any other statute or at common law, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
(i) any untrue or alleged untrue statement of any material fact contained in any
Registration Statement under which such securities were registered under the
Securities Act, any preliminary prospectus or final prospectus contained
therein, or any amendment or supplement thereto, (ii) any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading or (iii) any violation
or alleged violation by the Company of the Securities Act, the Securities
Exchange Act, state securities or blue sky laws, any other statute or common
law; and the Company shall reimburse the Investor or such director, officer or
participating Person or controlling Person for any legal or any other expenses
reasonably incurred by the Investor or such director, officer or participating
Person or controlling Person in connection with investigating or defending any
such loss, claim, damage, liability or action;

<PAGE>

provided, however, that the Company shall not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based
upon any untrue statement or omission made in such Registration Statement,
preliminary prospectus, prospectus or amendment or supplement in reliance upon
and in conformity with written information furnished to the Company by the
Investor specifically for use therein. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of the Investor
or such director, officer or participating Person or controlling Person, and
shall survive the transfer of such securities by the Investor.

         (b) In the event of any registration of any Registrable Securities
under the Securities Act pursuant to this Agreement, each Investor shall
indemnify and hold harmless the Company, its directors and officers, and each
other Person (including each underwriter) who participated in the offering of
such Registrable Securities and each other Person, if any, who controls the
Company or such participating Person within the meaning of the Securities Act,
against any losses, claims, dam ages or liabilities, joint or several, to which
the Company or any such director or officer or participating Person or con
trolling Person may become subject under the Securities Act, the Securities
Exchange Act, state securities or blue sky laws or any other statute or at
common law, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon any untrue or alleged untrue
statement of any material fact contained in any Registration Statement under
which such securities were registered under the Securities Act, any preliminary
prospectus or final prospectus contained therein, or any amendment or supplement
thereto, or arise out of or are based upon any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, in each case where such statement or
omission is in conformity with written information provided by the Investor
expressly for use therein, and shall reimburse the Company or such director,
officer or participating Person or controlling Person for any legal or any other
expenses reasonably incurred by the Company or such director, officer or
participating Person or controlling Person in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Investor shall not be liable for any amounts in excess of the net
proceeds received by it for the sale of its shares. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of
the Company or such director, officer or participating Person or controlling
Person, and shall survive the transfer of such securities by the Investor.

         (c) Each party entitled to indemnification under this Section 6 shall
give notice to the party required to provide indemnification promptly after such
indemnified party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the indemnifying party to assume the defense of any
such claim or any litigation resulting therefrom; provided, that counsel for the
indemnifying party, who shall conduct the defense of such claim or litigation,
shall be approved by the indemnified party (whose approval shall not be
unreasonably withheld); and, provided, further, that the failure of any
indemnified party to give notice as provided herein shall not relieve the
indemnifying party of its obligations under this Section 6. The indemnified
party may participate in such defense at such party's expense; provided,
however, that the indemnifying party shall pay such expense if representation of
such indemnified party by the counsel retained by the indemnifying party would
be inappropriate due to actual or potential differing interests between the
indemnified party and any other party represented by such counsel in such
proceeding. No indemnifying party, in the defense of any

<PAGE>

such claim or litigation shall, except with the consent of each indemnified
party, consent to entry of any judgment or enter into any settlement which does
not include as an unconditional term thereof the giving by the claimant or
plaintiff to such indemnified party of a release from all liability in respect
of such claim or litigation, and no indemnified party shall consent to entry of
any judgment or settle such claim or litigation without the prior written
consent of the indemnifying party.

         (d) If the indemnification provided for in this Section 6 is
unavailable to an indemnified party hereunder in respect of any losses, claims,
damages, liabilities or expenses referred to therein, then the indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or expenses in such proportion as is appropriate to
reflect the relative fault of the indemnifying party and indemnified parties in
connection with the actions which resulted in such losses, claims, damages,
liabilities or expenses, as well as any other relevant equitable considerations;
provided that in the case of the Investor, such contribution shall not exceed
any amounts in excess of the net proceeds received by the Investor for the sale
of its shares. The relative fault of such indemnifying party and indemnified
parties shall be determined by reference to, among other things, whether any
action in question, including any untrue or alleged untrue statement of a
material fact or omission or alleged omis sion to state a material fact, has
been made by, or relates to information supplied by, such indemnifying party or
indemnified parties, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such action. The amount paid
or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include any legal or other
fees or expenses reason ably incurred by such party in connection with any
investigation or proceeding.

         The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 6(d) were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding paragraph.
No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not also guilty of such fraudulent misrepresentation.

         (e) The obligations of the Company and the Investors under this Section
6 shall survive the completion of any offering of Registrable Shares in a
registration statement under Sections 2 and 3, and otherwise.

<PAGE>

         7. Market Stand-Off Agreement. If requested by an underwriter of
            --------------------------
securities of the Company the Investors shall not sell or otherwise transfer or
dispose of any securities held by them during the one hundred twenty (120) day
period following the effective date of a Registration Statement; provided, that
all officers and directors of the Company, as well as all beneficial owners of
greater than 10% of the Company's Common Stock, enter into similar agreements.

         8. Miscellaneous.
            -------------

         (a) Remedies. The Investors, in addition to being entitled to exercise
all rights granted by law, including recovery of damages, will be entitled to
specific performance of their rights under this Agreement. The Company agrees
that monetary damages would not be adequate compensation for any loss incurred
by reason of a breach by it of the provisions of this Agreement and hereby
agrees to waive the defense in any action for specific performance that a remedy
at law would be adequate.

         (b) Amendments and Waivers. Except as otherwise provided herein, the
provisions of this Agreement may not be amended, modified or supplemented, and
waivers or consents to departure from the provisions hereof may not be given
unless the Company and the Investors have approved the same in writing.

         (c) Notices. Any notice, demand, request, con sent, approval,
declaration, delivery or other communication hereunder to be made pursuant to
the provisions of this Agreement shall be sufficiently given or made if in
writing and (i) delivered in person with receipt acknowledged, (ii) sent by
registered or certified mail, return receipt requested, postage prepaid, (iii)
sent by overnight courier with guaranteed next-day delivery, or (iv) sent by
telex or telecopier, in each case addressed as follows:

                   i. If to the Charter Investors, to them at:

                                   c/o Charterhouse Group International, Inc.
                                   535 Madison Avenue
                                   New York, New York 10022-4299
                                   Attention:  Thomas C. Dircks
                                   Fax: (212) 750-9704

                   ii. If to the Mobius Investors, to them at:

                                   c/o Mobius Venture Capital
                                   200 West Evelyn Avenue, Suite 200
                                   Mountain View, California 94043
                                   Attention: General Counsel

                   iii. If to the Company, to it at:

                                   Interliant, Inc.
                                   Two Manhattanville Road
                                   Purchase, New York  10577

<PAGE>

                                   Attention:  General Counsel

or at such other address as may be substituted by notice given as herein
provided. The giving of any notice required hereunder may be waived in writing
by the party entitled to receive such notice. Every notice, demand, request,
consent, approval, declaration, delivery or other communication hereunder shall
be deemed to have been duly given or served on the date on which personally
delivered, with receipt acknowledged, or three (3) Business Days after the same
shall have been deposited in the United States mail, one business day after sent
by overnight courier or on the day telexed or telecopied.

         (d) Successors and Assigns. This Agreement shall inure to the benefit
of and be binding upon (i) the successors of each of the parties hereto and (ii)
the assigns of each of the Investors, including any Person to whom Registrable
Securities are transferred if the transferee or assignee acquires at least
twenty- five percent (25%) of the then outstanding Registrable Securities held
by such Investor or if the transferee or assignee of Registrable Securities is a
member, general partner, limited partner, retired partner or other affiliate of
any Investor; provided that any such transferee or assignee shall execute a
counterpart of, or shall otherwise become bound in writing by the requirements
of, this Agreement and be considered an "Investor" for purposes of this
Agreement.

         (e) Mergers, Etc. The Company shall not, directly or indirectly, enter
into any merger, consolidation or reorganization in which the Company shall not
be the surviving corporation unless the proposed surviving corporation shall,
prior to such merger, consolidation or reorganization, agree in writing to
assume the obligations of the Company under this Agreement, and for that purpose
references hereunder to "Registrable Securities" shall be deemed to be
references to the securities which holders of then Registrable Securities would
be entitled to receive in exchange for Registrable Securities under any such
merger, consolidation or reorganization; provided, however, that the provisions
of this Section 8(f) shall not apply in the event of any merger, consolidation
or reorganization in which the Company is not the surviving corporation if all
holders of then Registrable Shares are entitled to receive in exchange for such
Registrable Securities consideration consisting solely of (i) cash, (ii)
securities of the acquiring corporation which may be immediately sold to the
public without registration under the Securities Act, or (iii) securities of the
acquiring corporation which the acquiring corporation has agreed to register
within 90 days of completion of the transaction for resale to the public
pursuant to the Securities Act.

         (f) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or other wise affect the meaning hereof.

         (g) Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of New York (i.e., without regard
to its conflicts of law rules).

         (h) Severability. Wherever possible, each pro vision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by
or invalid under applicable law, such provision shall be

<PAGE>

ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

                                  [END OF TEXT]

<PAGE>

IN WITNESS WHEREOF, the Company and the Purchaser have executed this
Registration Rights Agreement as of the day and year first above written.

                                 INTERLIANT, INC.

                                 By:  /s/ Francis J. Alfano
                                      ---------------------
                                      Name:  Francis J. Alfano
                                      Title: Chief Executive Officer

                                 CHARTERHOUSE EQUITY PARTNERS III, L.P.

                                 By:  CHUSA EQUITY INVESTORS III, L.P.,
                                          General Partner

                                          By:  CHARTERHOUSE EQUITY III, L.P.,
                                                   General Partner

                                                By:  /s/ Jay M. Gates
                                                     ----------------
                                                     Name:  Jay M. Gates
                                                     Title:

Mobius Investors:                MOBIUS TECHNOLOGY VENTURES VI L.P.

                                         By:  Mobius VI LLC, General Partner

                                                 By:  /s/ Bradley A. Feld
                                                      -------------------
                                                   Name:  Bradley A. Feld
                                                   Title:

                                 SOFTBANK U.S. VENTURES FUND VI L.P.

                                 By:  Mobius VI LLC, General Partner

                                         By:  /s/ Bradley A. Feld
                                              -------------------
                                           Name:  Bradley A. Feld
                                           Title:

<PAGE>

                                 MOBIUS TECHNOLOGY VENTURES
                                          ADVISORS FUND VI L.P.

                                 By:  Mobius VI LLC, General Partner

                                         By:  /s/ Bradley A. Feld
                                              --------------------
                                           Name:  Bradley A. Feld
                                           Title:

                                 MOBIUS TECHNOLOGY VENTURES
                                          SIDE FUND VI L.P.

                                 By:  Mobius VI LLC, General Partner

                                         By:  /s/ Bradley A. Feld
                                              -------------------
                                           Name:  Bradley A. Feld
                                           Title:<PAGE>

                                                                  EXHIBIT 10(ii)

Northern Trust
Employee Stock Ownership Plan
(As Amended and Restated Effective January 1, 2002)

<PAGE>

Northern Trust
Employee Stock Ownership Plan
(As Amended and Restated Effective January 1, 2002)

Contents

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Section                                                                    Page
<S>                                                                        <C>
ARTICLE I.    NATURE OF THE PLAN...........................................  1

1.1  Establishment and Amendment of the Plan...............................  1
1.2  Purpose of the Plan...................................................  1
1.3  Legal Qualification...................................................  1
1.4  Applicability of the Plan.............................................  1

ARTICLE II.   DEFINITIONS..................................................  2

2.1  Definitions...........................................................  2

ARTICLE III.  PARTICIPATION AND SERVICE....................................  9

3.1  Participation.........................................................  9
3.2  Duration of Participation.............................................  9
3.3  Transferred or Rehired................................................  9
3.4  Vesting Service....................................................... 10
3.5  Break in Service...................................................... 11
3.6  One-Year Break in Service............................................. 11

ARTICLE IV.   EMPLOYER CONTRIBUTIONS....................................... 13

4.1  Contributions......................................................... 13
4.2  Medium of Payment..................................................... 13
4.3  Allocation of Employer Contributions.................................. 13
4.4  No Participant Contributions.......................................... 13
4.5  Uniformed Services Employment and Reemployment Rights Act............. 13

ARTICLE V.    INVESTMENT OF TRUST ASSETS................................... 14

5.1  Investments........................................................... 14
5.2  Valuation of Company Stock............................................ 14
5.3  Crediting of Stock.................................................... 14
5.4  Sales and Resales of Company Stock.................................... 14

ARTICLE VI.   EXEMPT LOANS................................................. 15

6.1  Requirements.......................................................... 15
6.2  Payments on Loans..................................................... 16
6.3  Crediting of Released Stock........................................... 16
6.4  Payments of Principal and Interest.................................... 16
6.5  Puts, Calls, and Other Options........................................ 16
</TABLE>

                                                                               i

<PAGE>

Northern Trust
Employee Stock Ownership Plan
(As Amended and Restated Effective January 1, 2002)

Contents

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------

Section                                                                    Page
<S>                                                                        <C>
ARTICLE VII.  ALLOCATIONS TO PARTICIPANTS' ACCOUNTS.......................  17

7.1   Participants Entitled to Allocations................................  17
7.2   Allocations to Company Stock Accounts...............................  17
7.3   Allocations to Other Investments Accounts...........................  17
7.4   Allocations of Employer Contributions, Company Stock Acquired
      With a Loan and Forfeitures.........................................  17
7.5   Maximum Allocation..................................................  19
7.6   Vesting.............................................................  21
7.7   Net Income or Loss of the Trust.....................................  22
7.8   Accounting for Allocations..........................................  22
7.9   Diversification of Investments......................................  22

ARTICLE VIII. VOTING AND TENDER OF COMPANY STOCK..........................  24

8.1   Voting Rights; Tender Offers........................................  24

ARTICLE IX.   BENEFITS....................................................  26

9.1   Payments on Retirement..............................................  26
9.2   Payments on Death...................................................  26
9.3   Payments on Disability..............................................  27
9.4   Payments on Termination for Other Reasons...........................  27
9.5   Deemed Cashout......................................................  28
9.6   Property Distributed................................................  28
9.7   Methods of Payment..................................................  28
9.8   Direct Rollover of Eligible Rollover Distributions..................  31
9.9   Payment of Small Amounts............................................  32

ARTICLE X.    RIGHTS AND OPTIONS ON DISTRIBUTED SHARES OF COMPANY
              STOCK.......................................................  33

10.1  Right of First Refusal..............................................  33
10.2  Put Option..........................................................  33

ARTICLE XI.   IN-SERVICE DISTRIBUTIONS AND DIVIDENDS......................  35

11.1  In-Service Distributions............................................  35
11.2  Dividends...........................................................  35
</TABLE>

                                                                              ii

<PAGE>

Northern Trust
Employee Stock Ownership Plan
(As Amended and Restated Effective January 1, 2002)

Contents

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------

Section                                                                    Page
<S>                                                                        <C>
ARTICLE XII.  PLAN ADMINISTRATION.........................................  36

12.1  Powers..............................................................  36
12.2  Directions to Trustee...............................................  36
12.3  Uniform.............................................................  36
12.4  Reports.............................................................  36
12.5  Members; Compensation...............................................  36
12.6  Claims Procedure....................................................  36
12.7  Indemnity for Liability.............................................  37

ARTICLE XIII. AMENDMENT AND TERMINATION...................................  38

13.1  Amendment...........................................................  38
13.2  Termination.........................................................  38
13.3  Merger and Consolidation............................................  38
13.4  Distribution Upon Termination.......................................  39

ARTICLE XIV.  EXTENSION OF PLAN TO AFFILIATES.............................  40

14.1  Participation in the Plan...........................................  40
14.2  Withdrawal from the Plan............................................  40

ARTICLE XV.   TOP-HEAVY PROVISIONS........................................  41

ARTICLE XVI.  MISCELLANEOUS PROVISIONS....................................  42

16.1  Spendthrift Provisions..............................................  42
16.2  Incompetency........................................................  42
16.3  Unclaimed Funds.....................................................  43
16.4  Rights Against the Company..........................................  43
16.5  Illegality of Particular Provision..................................  43
16.6  Effect of Mistake...................................................  43
16.7  Compliance with Federal and State Securities Laws...................  43
16.8  No Discrimination...................................................  44
16.9  Exclusive Benefit of Members........................................  44
16.10 Governing Law.......................................................  44
16.11 Change in Control...................................................  44
</TABLE>

                                                                             iii

<PAGE>

Northern Trust
Employee Stock Ownership Plan
(As Amended and Restated Effective January 1, 2002)

Contents

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------

Section                                                                    Page
<S>                                                                        <C>
SUPPLEMENT #1 .............................................................  48

SUPPLEMENT #2 .............................................................  51

SUPPLEMENT #3 .............................................................  52

SCHEDULE A ................................................................  53
</TABLE>

                                                                              iv

<PAGE>

Article I.  Nature of the Plan

1.1  Establishment and Amendment of the Plan

Effective January 1, 1989, The Northern Trust Company (the "Company")
established the Northern Trust Employee Stock Ownership Plan (the "Plan"). The
Plan was subsequently amended and restated effective January 1, 1989, in order
to incorporate the requirements of the Tax Reform Act of 1986 and subsequent
legislation. The Plan is hereby amended and restated effective January 1, 2002,
except as otherwise specifically stated herein.

1.2  Purpose of the Plan

The purpose of the Plan is to enable Members and their Beneficiaries to share in
the growth and prosperity of the Company and its Affiliates, to provide Members
with an opportunity to accumulate capital for their future economic security,
and to furnish additional security to Members who become permanently disabled.
The primary purpose of the Plan is to enable Members to acquire ownership
interests in Company Stock. Consequently, the Plan will be invested primarily in
Company Stock.

1.3  Legal Qualification

It is intended that the Plan continue to qualify as an employee stock ownership
plan under section 4975(e)(7) of the Code and section 407(d)(6) of ERISA, and as
a stock bonus plan qualified under section 401(a) of the Code.

1.4  Applicability of the Plan

The provisions of the Plan as set forth herein apply only to Members (or
Beneficiaries of Members) who are eligible to participate in the Plan on or
after January 1, 2002. Except as so provided herein, the rights and benefits, if
any, of Members who ceased accruing Vesting Service prior to January 1, 2002,
shall be determined in accordance with the provisions of the Plan in effect on
the date his or her Vesting Service terminated.

                                                                               1

<PAGE>

Article II.  Definitions

2.1  Definitions

The following capitalized terms shall have the meanings stated below wherever
they appear in the text unless the context otherwise requires.

(a)  "Account" means the separate accounts maintained for each Member (or a
     deceased Member's Beneficiary) which represents his or her total
     proportionate interest in the Trust as of any Valuation Date.

(b)  "Affiliate" means any corporation which is a member of the same controlled
     group of corporations (within the meaning of Code section 414(b)) as the
     Company, or an unincorporated trade or business which is under common
     control with the Company (within the meaning of Code section 414(c)), any
     organization which is a member of an affiliated service group (within the
     meaning of Code section 414(m)) of which the Company is also a member, and
     any other entity required to be aggregated under Code section 414(o). For
     purposes of section 2.1(nn), this section 2.1(b) shall be as modified as
     provided in section 415(h) of the Code.

(c)  "Anniversary Date" means December 31 of each Plan Year.

(d)  "Annual Additions" means the total of: (1) Company or Participating
     Employer contributions allocated to a Participant's Account under this Plan
     and any Related Plan during any Limitation Year; (2) the amount of employee
     contributions (within the meaning of Code section 415(c)(2)) made by the
     Participant under any Related Plan; and (3) Forfeitures allocated to a
     Participant's Account under this Plan and any Related Plan.

(e)  "Beneficiary" means the person or persons designated as such by the Member
     on a form supplied by the Committee, provided that, a married Member may
     designate a Beneficiary other than the Member's Spouse only if the
     requirements of section 9.2 are met. If the Member does not designate a
     Beneficiary, or if the designation is for any reason ineffective, as
     determined by the Committee, the Member's Beneficiary shall be:

     (i)   the Member's Spouse or, if none,

     (ii)  the Member's children (in equal amounts) or, if none,

     (iii) the Member's parents (in equal amounts) or, if none,

     (iv)  the Member's brothers and sisters (in equal amounts) or, if none,

     (v)   the Member's estate.

     Any designation of the Member's Spouse as Beneficiary under the Plan shall
     become null and void on the date a judicial order or decree is entered
     dissolving the marriage of the Member and Spouse, except as otherwise
     provided in a qualified domestic relations order within the meaning of Code
     section 414(p). If a designated Beneficiary shall die before the Member,
     his or her interest shall terminate and, unless otherwise provided in the
     Member's designation, if the

                                                                               2

<PAGE>

     designation included more than one Beneficiary, such interest shall be paid
     in equal shares to those Beneficiaries, if any, who survive the Member.

(f)  "Board of Directors" or "Board" means the Board of Directors of the
     Company.

(g)  "Break in Service" means the event described in section 3.5.

(h)  "Code" means the Internal Revenue Code of 1986, as amended.

(i)  "Committee" means the Employee Benefit Administrative Committee of the
     Company, as constituted from time to time, which has the responsibility for
     administering the Plan and which shall be deemed to be the plan
     administrator and the named fiduciary for the purposes of ERISA.

(j)  "Company" means The Northern Trust Company, an Illinois state bank, and its
     successors and assigns.

(k)  "Company Stock" means any qualifying employer security within the meaning
     of section 4975(e)(8) of the Code and 407(d)(1) of ERISA and regulations
     thereunder.

(l)  "Company Stock Account" means an account of a Member that is credited with
     the Member's allocable shares of Company Stock purchased and paid for by
     the Trust or contributed to the Trust.

(m)  "Compensation" means the base salary paid by the Company or a Participating
     Employer to a Participant, plus any amounts paid as shift differential, but
     exclusive of severance pay or other types of compensation. Base salary
     includes amounts which the Participant elects to have contributed to the
     Participant's before-tax deposit account under The Northern Trust Company
     Thrift-Incentive Plan, any amounts contributed by or on behalf of the
     Participant to a cafeteria plan established by the Company, and, effective
     July 1, 2001, any pre-tax qualified transportation fringe benefit plan
     provided pursuant to Code section 132(f).

     In addition to other applicable limitations set forth in the Plan, and
     notwithstanding any other provision of the Plan to the contrary, the
     Compensation of each Participant taken into account under the Plan shall
     not exceed the annual compensation limit under section 401(a)(17) of the
     Code, as adjusted by the Commissioner of the Internal Revenue Service for
     increases in cost of living in accordance with Code section 401(a)(17). The
     cost-of-living adjustment in effect for a calendar year applies to any
     period, not exceeding 12 months, over which Compensation is determined (the
     "determination period") beginning in that calendar year. If a determination
     period consists of fewer than 12 months, the annual compensation limit will
     be multiplied by a fraction, the numerator of which is the number of months
     in the determination period and the denominator of which is 12.

     For Plan Years prior to January 1, 1997, in determining the Compensation of
     a Participant for purposes of this limitation, the rules of Code section
     414(q)(6) (as in effect immediately prior to January 1, 1997) shall apply,
     except that, in applying such rules, the term "family" shall include only
     the Spouse of the Participant and any lineal descendants of the Participant
     who have not attained age 19 before the close of the Plan Year. If, as a
     result of the application of these rules, the adjusted dollar limitation of
     Code section 401(a)(17) applicable to family members is exceeded, then the
     dollar limitation shall be prorated among the affected individuals in
     proportion

                                                                               3

<PAGE>

     to each such individual's Compensation as determined under this section
     2.1(m) before applying the limitation.

(n)  "Effective Date" means January 1, 2002.

(o)  "Eligible Employee" means any Employee of the Company or a Participating
     Employer, other than:

     (1)  An Employee employed by any office or branch of the Company or a
          Participating Employer located in a foreign country who, as to the
          United States, is a nonresident alien; and

     (2)  An Employee who: (A) as to the United States, is a foreign national,
          (B) is working for the Company or a Participating Employer at a
          location in the United States, and (C) is covered by a retirement plan
          sponsored by a non-U.S. Affiliate in the county in which an Affiliate
          is located.

     Any other provision of the Plan to the contrary notwithstanding, no
     individual will be considered an Eligible Employee nor will such individual
     be otherwise eligible to participate in or receive benefits under the Plan
     during any period in which such individual is providing services to the
     Company or a Participating Employer under a contract, arrangement or
     understanding with either such individual or with an agency or leasing
     organization that treats the individual as either an independent contractor
     or an employee of such agency or leasing organization, even if such
     individual is later determined (by judicial action or otherwise) to have
     been a common law employee of the Company or a Participating Employer
     rather than an independent contractor or an employee of such agency or
     leasing organization.

(p)  "Employee" means an individual employed by the Company or an Affiliate. A
     person who is considered a "leased employee" (as defined below) of the
     Company or an Affiliate shall not be considered an Employee for purposes of
     the Plan. If such a person subsequently becomes an Employee, and thereafter
     participates in the Plan, that person shall receive Vesting Service for
     employment as a leased employee except to the extent that the requirements
     of section 414(n)(5) of the Code were satisfied with respect to such
     Employee while he or she was a leased employee. For purposes of the Plan, a
     leased employee is a person who is not employed by the Company or an
     Affiliate but who performs services for the Company or an Affiliate
     pursuant to an agreement between the Company or Affiliate and a leasing
     organization, other than a person described in Code section 414(n)(5), if
     such person performed the services for a year and, effective as of January
     1, 1997, the services are performed under the primary direction or control
     of the Company or an Affiliate.

(q)  "Employer Contributions" means payments made to the Trust by the Company or
     a Participating Employer.

(r)  "Entry Date" shall mean the first day of each calendar month.

(s)  "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended.

(t)  "Forfeiture" means the Unvested Portion of a Participant's Account that
     becomes forfeited pursuant to section 9.4.

                                                                               4

<PAGE>

(u)  "Former Participant" means a person who has been a Participant, but who has
     incurred a Break in Service.

(v)  "Highly Compensated Participant" means, effective as of January 1, 1997, an
     Eligible Employee who, (1) during the current Plan Year or the preceding
     Plan Year was at any time a five-percent owner of the Company, or (2)
     during the preceding Plan Year received compensation (as defined in section
     7.5(i)) from the Company and its Affiliates in excess of $80,000 (or such
     greater amount as provided by the Secretary of the Treasury pursuant to
     section 414(q) of the Code) and was in the top paid group of Employees for
     such Plan Year. The provisions of section 414(q) of the Code shall apply in
     determining whether an Eligible Employee is a Highly Compensated
     Participant.

(w)  "Hour of Service" means each hour for which an Employee is paid or entitled
     to payment for the performance of duties for the Company or an Affiliate.

(x)  "Inactive Participant" means a person who was a Participant who is
     transferred to and is in a position of employment either--

     (1)  as an Employee where he or she is not an Eligible Employee; or

     (2)  as an Employee of an Affiliate which has not adopted this Plan.

(y)  "Limitation Year" means the 12-consecutive-month period to be used in
     determining the Plan's compliance with section 415 of the Code and the
     regulations thereunder. The Limitation Year shall be the calendar year
     unless the Company elects to use another 12-month period.

(z)  "Loan" means any loan to the Trustee made or guaranteed by a disqualified
     person (within the meaning of section 4975(e)(2) of the Code) including,
     but not limited to, a direct loan of cash, a purchase money transaction, an
     assumption of an obligation of the Trustee, an unsecured guarantee, or the
     use of assets of a disqualified person (within the meaning of section
     4975(e)(2) of the Code) as collateral for a loan.

(aa) "Member" means a Participant, Inactive Participant, or a Former
     Participant.

(bb) "Normal Retirement Date" means the later of (1) the date on which a
     Participant attains 65 years of age, or (2) the fifth anniversary of the
     date the Participant commenced participation in the Plan.

(cc) "One-Year Break in Service" means a period of time described in section
     3.6.

(dd) "Other Investments Account" means an Account of a Member that is credited
     with the Member's share of the net income or loss of the Trust and Employer
     Contributions and Forfeitures in other than Company Stock, and that is
     debited with payments made to pay for Company Stock.

(ee) "Parental Leave" shall mean an absence from employment with the Company or
     an Affiliate because of (1) the Employee's pregnancy, (2) the birth of the
     Employee's child, (3) the placement of a child with the Employee in
     connection with the Employee's adoption of the child,

                                                                               5

<PAGE>

     or (4) caring for such child immediately following such birth or placement,
     provided that, the Employee furnishes to the Company or Affiliate such
     timely information that the Company or Affiliate may reasonably require to
     establish (A) that the absence from work is for one of the reasons
     specified and (B) the number of days for which there was such an absence.

(ff) "Participant" means an Eligible Employee who meets the requirements of
     section 3.1 and who is participating in the Plan.

(gg) "Participating Employer" means any Affiliate, which has adopted the Plan in
     accordance with Article XIV.

(hh) "Pension Plan" means The Northern Trust Company Pension Plan.

(ii) "Permanent Disability" means any physical or mental injury, illness or
     incapacity which, in the sole judgment of the Committee based on the
     medical reports of a physician selected by the Committee and other evidence
     satisfactory to the Committee, currently and permanently prevents an
     Employee from satisfactorily performing the Employee's usual duties for the
     Company or an Affiliate or the duties of such other position or job which
     the Company or an Affiliate makes available to the Employee and for which
     such Employee is qualified by reason of training, education or experience;
     provided, however, to the extent that a disability case manager determines
     whether an Employee is permanently disabled under the Company's short or
     long-term disability plan, such determination shall be binding with respect
     to the question of whether the Employee has incurred a Permanent Disability
     hereunder.

(jj) "Plan" means the Northern Trust Employee Stock Ownership Plan, as amended.

(kk) "Plan Year" means the calendar year.

(ll) "Qualified Election Period" means-

     (1)  prior to the date that section 2.1(mm)(2) becomes operative, the
          period beginning with the Plan Year in which the Member first has
          attained age 55 and is 100 percent vested under section 7.6 and ending
          with the earliest of (A) the fourth succeeding Plan Year thereafter;
          (B) the Plan Year preceding the Plan Year during which the Member
          ceases being an Employee; or (C) the Plan Year preceding the Plan Year
          during which the Member becomes a Qualified Participant under section
          2.1(mm)(2), or

     (2)  on and after January 1, 1999 or such earlier date that any Member
          satisfies the requirements of section 401(a)(28)(B)(iii) of the Code,
          the six-Plan Year period beginning with the Plan Year in which the
          Member first becomes a Qualified Participant under section 2.1(mm)(1)
          or (2), provided, that, the Qualified Election Period of a Member who
          would have been a Qualified Participant in any year prior to 1989
          shall begin January 1, 1989.

(mm) "Qualified Participant" means-

     (1)  prior to the date that paragraph (2) below becomes operative, any
          Participant who is age 55 or older and is 100 percent vested under
          section 7.6; and

                                                                               6

<PAGE>

     (2)  on and after January 1, 1999 or such earlier date that any Member
          satisfies the requirements of section 401(a)(28)(B)(iii) of the Code,
          any Member who has attained age 55 and has been a Participant in the
          Plan for at least ten years, or has otherwise satisfied such
          requirements.

(nn) "Related Plan" means any other defined contribution plan (as defined in
     section 415(k) of the Code) maintained by the Company or an Affiliate.

(oo) "Severance Eligible Participant" means a Participant whose employment has
     terminated in a manner entitling such Participant to severance pay under
     any formal severance plan maintained by The Northern Trust Company
     providing severance benefits to certain employees as a result of job
     elimination or termination of employment due to the acquisition or
     disposition of a business entity.

(pp) "Spouse" means the person to whom a Member is married or, in the case of a
     deceased Member, the person to whom a Member was married on the date of
     such Member's death.

(qq) "Suspense Account" means an account to which securities purchased with any
     Loans are allocated pending their release and allocation to Accounts as the
     Loan is repaid.

(rr) "Trust" means all money, securities, and other property held in trust for
     purposes of the Plan. The Trust forms a part of the Plan and shall be
     evidenced by an agreement between the Company and the Trustee specifying
     the duties of the Trustee.

(ss) "Trust Assets" means the assets held in the Trust for the exclusive benefit
     of Members, Beneficiaries, and Spouses.

(tt) "Trustee" means the entity named by the Company to act as trustee of the
     Trust pursuant to the Trust Agreement.

(uu) "Unvested Portion" means the remaining Account balance after subtracting
     the Vested Portion.

(vv) "Valuation Date" means the last business day of each calendar month.

(ww) "Vested Portion" means that percentage of a Member's Account constituting
     the Member's irrevocable right to such Account, as indicated in the
     following vesting schedule:

     Member's Years
     of Vesting Service
     with the Company                            Vested
     and Affiliates                              Percentage

     Less than 1 year                              0%
     1 year but less than 2                       20%
     2 years but less than 3                      40%
     3 years but less than 4                      60%
     4 years but less than 5                      80%
     5 or more years                             100%

                                                                               7

<PAGE>

          A Member shall always have a fully vested interest in the portion of
          his or her Account attributable to dividends on shares of Company
          Stock allocated to such Account.

     (xx) "Vesting Service" means the period of employment credited under
          section 3.4.

                                                                               8

<PAGE>

Article III.  Participation and Service

3.1  Participation

Each Eligible Employee shall become a Participant in the Plan on the Entry Date
following the date the Eligible Employee completes six (6) months of Vesting
Service; provided, that he or she is an Eligible Employee on such date.

3.2  Duration of Participation

An Eligible Employee who becomes a Participant shall continue to be a
Participant or Inactive Participant until he or she incurs a Break in Service,
and also shall continue to be a Member thereafter for as long as he or she is
entitled to receive any benefits hereunder. After receiving all benefits to
which he or she is entitled hereunder, he or she shall cease to be a Member
unless and until he or she thereafter becomes eligible to again become a
Participant.

3.3  Transferred or Rehired

The following rules shall be applicable to Employees who (a) become Eligible
Employees because of transfer to a status qualifying for coverage under the
Plan, (b) become Inactive Participants, (c) transfer to a status not qualifying
for coverage after meeting the requirements of section 3.1 but before becoming
Participants, or (d) are rehired by the Company or an Affiliate:

(a)  An Employee who shall be transferred into employment where he or she
     becomes an Eligible Employee hereunder shall be credited with Vesting
     Service computed for all his or her employment with the Company and any
     Affiliate, before and after such transfer.

(b)  Any Participant who shall be transferred into employment as an Employee
     where he or she becomes an Inactive Participant shall continue to receive
     credit for Vesting Service under this Plan during the period he or she is
     an Inactive Participant.

(c)  Any Eligible Employee who shall meet the requirements of section 3.1 but is
     transferred into employment as an Employee but not as an Eligible Employee,
     before becoming a Participant, shall no longer be eligible to have
     contributions made on his or her behalf hereunder. Any such Employee shall
     continue to accrue Vesting Service during the period computed for all of
     the Employee's employment with the Company and any Affiliate.

(d)  An Employee who has a Break in Service and is subsequently reemployed by
     the Company or an Affiliate shall be considered a new Employee for purposes
     of section 3.1, unless he or she was credited with at least six months of
     Vesting Service prior to his or her Break in Service. In such case, the
     Employee shall become eligible to participate in the Plan upon
     reemployment, provided he or she is then an Eligible Employee.

     (1)  By written notice to the Committee after his or her reemployment, an
          Employee who has not had five consecutive One-Year Breaks in Service
          may deposit with the Trustee an amount which shall be equal to the
          aggregate value of the distributions from his or her Account at the
          time of his or her previous Break in Service. All deposits must be
          made in cash and in a single lump sum. The deposits must be made
          within five years after the Employee is reemployed. Effective January
          1, 2002, any such deposit shall be reinvested in Company Stock in
          accordance with administrative procedures established by the
          Committee.

                                                                               9

<PAGE>

     (2)  In the case of a reemployed Employee who does not have five
          consecutive One-Year Breaks in Service, the Company shall contribute
          to the Account of such Employee the amount, if any, forfeited at the
          time of the Employee's termination of service, if and only if the
          Employee makes the deposits permitted under paragraph (1) above or the
          Employee did not receive a distribution at or after the time of his or
          her previous termination of service. The Company's contribution shall
          be made concurrently with the Employee's repayment if applicable,
          otherwise as soon as administratively practicable after the date of
          his or her reemployment.

          For each other reemployed Employee, his or her beginning balance in
          his or her Account shall be zero, and his or her previous Forfeiture,
          if any, shall not be restored.

3.4  Vesting Service

An Employee shall receive credit for Vesting Service for the period commencing
with the Employee's date of hire with the Company or an Affiliate and ending on
the date the Employee incurs a Break in Service. Vesting Service shall be
calculated in accordance with reasonable and uniform standards and policies
adopted by the Company from time to time, which standards and policies shall be
consistently observed subject, however, to the following:

(a)  Vesting Service shall be computed on the following bases: (i) prior to July
     1, 1993, an Employee shall receive credit for each calendar quarter during
     which the Employee earned at least one (1) Hour of Service or otherwise
     would receive credit for Vesting Service pursuant to subsection (b) below;
     and (ii) from and after July 1, 1993, an Employee shall receive credit for
     each calendar month during which the Employee earned at least one (1) Hour
     of Service or otherwise would receive credit for Vesting Service pursuant
     to subsection (b) below.

(b)  An Employee shall earn Vesting Service for all periods of active employment
     with the Company or an Affiliate, and for the following periods that are
     not active employment but that immediately precede a Break in Service:

     (1)  an approved absence of up to 12 consecutive months from the Company or
          an Affiliate (e.g. vacation, paid holiday, sick, short term
          disability, long term disability, leave under the Family and Medical
          Leave Act of 1993, unpaid leave of absence) that is granted according
          to uniform and nondiscriminatory standards;

     (2)  a period of up to one (1) year during which an Employee is on Parental
          Leave, and

     (3)  an absence from work with the Company or an Affiliate on account of
          qualified military service (within the meaning of Code section
          414(u)), but only if the Employee reports for work within the period
          required under Code section 414(u).

(c)  If an Employee incurs a Break in Service, but returns to employment with
     the Company or an Affiliate prior to incurring a One-Year Break in Service
     (as defined in section 3.6), the period commencing on the date the Break in
     Service began and ending on the date such Employee is reemployed shall be
     counted as Vesting Service. Notwithstanding the preceding sentence, if the
     Break in Service occurs during a period of absence from active employment,
     the Employee shall not receive Vesting Service under the preceding sentence
     unless such Employee returns to employment before the first (1st)
     anniversary of the first day of such absence. If an Employee

                                                                              10

<PAGE>

     suffers a One-Year Break in Service and the Employee is thereafter
     reemployed by the Company or an Affiliate, such Employee's Vesting Service
     before such One-Year Break in Service shall be added to the Employee's
     Vesting Service after reemployment.

(d)  A Participant's Vesting Service shall not include periods of service with
     an entity that is not an Affiliate, or service prior to the date an entity
     becomes an Affiliate, except as provided in Schedule A hereto.

(e)  A Severance Eligible Participant shall receive credit for one (1) year of
     Vesting Service beyond that earned pursuant to the foregoing.

(f)  All periods of Vesting Service shall be aggregated; provided, however, that
     a Participant shall not receive multiple credit for Vesting Service with
     respect to any single period.

3.5  Break in Service

(a)  A "Break in Service" shall occur on earlier of:

     (1)  the date the Employee separates from service due to a voluntary
          termination of employment, discharge, retirement, or death; or

     (2)  the first anniversary of the date the Employee separates from service
          with the Company or an Affiliate for any reason other than the reasons
          set forth in paragraph (1) above, such as vacation, holiday, sickness,
          disability, leave of absence or layoff.

(b)  Effective December 12, 1994, the fact that an Employee separates from
     service with the Company or an Affiliate on account of qualified military
     service (within the meaning of Code section 414(u)) shall not constitute a
     Break in Service unless the Employee fails to report to work within the
     period required under Code section 414(u), in which case the Break in
     Service shall occur on the earlier of (1) the expiration of the period by
     which such Employee was required by law to report back to work or (2) the
     first anniversary of the date the Employee separated from service.

(c)  A Break in Service shall end on the date on which an Employee again
     performs an Hour of Service for the Company or an Affiliate.

(d)  The fact that an Employee who is a Participant becomes an Inactive
     Participant shall not constitute a Break in Service, but the foregoing
     rules shall continue to apply to such an Employee during the period he or
     she is an Inactive Participant.

(e)  Effective August 5, 1993, the fact that an Employee is absent from work
     under the Family and Medical Leave Act of 1993 shall not constitute a Break
     in Service if the Employee returns to work with the Company or an Affiliate
     after such period of absence.

3.6  One-Year Break in Service

(a)  The term "One-Year Break in Service" means each 12-consecutive-month period
     beginning on the date an Employee incurs a Break in Service under section
     3.5 and ending on each anniversary of such date, provided that such
     Employee does not perform an Hour of Service for the Company or any
     Affiliate during such period.

                                                                              11

<PAGE>

(b)  Solely for purposes of determining whether a One-Year Break in Service has
     occurred, but not for purposes of determining Vesting Service, in the case
     of an Employee who is on Parental Leave, the Employee's Break In Service
     shall be deemed to occur on the second (2nd) anniversary of the first day
     of such absence, provided the Employee does not perform an Hour of Service
     for the Company or any Affiliate during such period of absence. The period
     of time between the first (1st) and second (2nd) anniversaries of a
     Parental Leave shall not be counted as a Break in Service or Vesting
     Service.

                                                                              12

<PAGE>

Article IV. Employer Contributions

4.1  Contributions

Subject to section 4.2, for each Plan Year, Employer Contributions under the
Plan will be paid to the Trust in an amount equal to 2% of each Participant's
Compensation for such Plan Year. Additional Employer Contributions under the
Plan may be paid in an amount up to 3% of each Participant's Compensation for
such Plan Year if certain corporate performance goals established by the Board,
with respect to this Plan, are met. The Board has the sole discretion to
establish and change such performance goals on an annual basis and to determine
whether such goals have been met. Notwithstanding any provision in the Plan or
any law to the contrary, the Company and Participating Employers shall also make
Employer Contributions to the extent necessary to satisfy the provisions of
section 4.5. Effective January 1, 2002, Forfeitures under the Plan shall be
applied to offset the Company's and Participating Employers' Employer
Contribution obligation for the next succeeding year or years.

Employer Contributions for a Plan Year may be paid during or at the end of the
Plan Year and must be paid no later than the due date for filing the Company's
federal income tax return for that year, including any extensions of the due
date. Employer Contributions for any Plan Year shall not be paid to the Trust in
amounts that would exceed the limitations of section 404 of the Code.
Notwithstanding the provisions of this section, no Employer Contributions in any
Limitation Year shall be in an amount that would cause the Annual Additions to
the Accounts of any Participant to exceed the Maximum Permissible Amount (as
defined in section 7.5) for such Participant for that Limitation Year.

4.2  Medium of Payment

Employer Contributions may be paid to the Trust in cash or in shares of Company
Stock, as determined by the Board. Employer Contributions, however, shall be
paid in cash in such amounts (subject to the limitations described in section
7.5), and at such times as needed to provide the Trust with funds sufficient to
pay in full when due any principal and interest payments required by a Loan
incurred, pursuant to Committee direction, by the Trustee to finance
acquisitions of Company Stock, except to the extent such principal and interest
payments have been satisfied by the Trustee from cash dividends paid to it with
respect to Company Stock.

4.3  Allocation of Employer Contributions

All Employer Contributions for a Plan Year shall be allocated to Participants'
Accounts as provided in Article VII.

4.4  No Participant Contributions

No Participant shall be required or permitted to make contributions to the Plan
or Trust.

4.5  Uniformed Services Employment and Reemployment Rights Act

Effective December 12, 1994, the Plan shall be administered consistent with the
provisions of Uniformed Services Employment and Reemployment Rights Act of 1994,
P.L. 103-353 ("USERRA"). As such, the Company and any Participating Employer
shall make special Employer Contributions as necessary to comply with USERRA and
other applicable laws.

                                                                              13

<PAGE>

Article V. Investment of Trust Assets

5.1  Investments

Trust Assets under the Plan will be invested primarily in Company Stock.
Employer Contributions and other Trust assets may be used to acquire shares of
Company Stock from the stockholders (including Former Participants) or the
issuer thereof. The Trustee also may hold Trust assets in cash or invest them in
savings accounts, certificates of deposit, high grade short-term securities, any
kind of investment fund (open-end or otherwise), a common trust fund for the
investment of qualified employee benefit trusts, including any such fund
maintained by the Trustee, or in other investments desirable for the Trust.

5.2  Valuation of Company Stock

All purchases of Company Stock will be made at a price, or at prices, that do
not exceed the fair market value of such Company Stock. Except as otherwise
determined by the Trustee in accordance with ERISA, the fair market value of
Company Stock as of a given date shall be the closing price as of such date on
the NASDAQ Stock Market; provided, however, that before January 1, 1995, the
fair market value as of a given date shall be the median of the high and low
sale prices of Company Stock on the preceding trading day. If Company Stock is
not readily tradable on an established securities market, the determination of
the fair market value of Company Stock for all purposes of the Plan shall in all
cases be made by an independent appraiser appointed by the Committee. Any
independent appraiser appointed pursuant to this section shall meet the
requirements of section 401(a)(28)(C) of the Code.

5.3  Crediting of Stock

Company Stock purchased with the proceeds of a Loan shall be held in the
Suspense Account pending release and allocation to the Accounts of Participants
as the Loan is paid pursuant to section 7.4. Company Stock purchased with
amounts allocated to Participants' Other Investments Accounts shall immediately
upon purchase be credited pro rata to the corresponding Company Stock Accounts.
Company Stock contributed to the Plan pursuant to Article IV shall be allocated
to the Company Stock Accounts of Participants pursuant to section 7.4.

5.4  Sales and Resales of Company Stock

The Committee may direct the Trustee to sell or resell shares of Company Stock
to any person. All such sales to any disqualified person (within the meaning of
section 4975(e)(2) of the Code) must be made at no less than the fair market
value and no commission may be charged. Such sales shall comply with section
408(e) of ERISA. All sales of Company Stock (except Company Stock held in a
Suspense Account) by the Trustee will be charged pro rata to the Company Stock
Accounts of Participants. Sales of Company Stock pursuant to this section 5.4
may only be made to the extent not inconsistent with section 1.3 of the Plan.

                                                                              14

<PAGE>

Article VI. Exempt Loans

6.1  Requirements

(a)  The Committee may direct the Trustee to obtain Loans. Any such Loan will
     meet all requirements necessary to constitute an exempt loan within the
     meaning of section 4975(d)(3) of the Code and Treasury regulation section
     54.4975-7(b)(1)(iii) and shall be used primarily for the benefit of
     Participants, Beneficiaries, and Spouses. The proceeds of any such Loan
     shall be used, within a reasonable time after the Loan is obtained, only to
     purchase Company Stock, repay the Loan, or repay any prior Loan. Any such
     Loan shall provide for no more than a reasonable rate of interest (as
     determined under Treasury regulation section 54.4975-7(b)(7)) and must be
     without recourse against the Plan. The number of years to maturity under
     the Loan must be definitely ascertainable at all times. The only assets of
     the Plan that may be given as collateral on a Loan are shares of Company
     Stock acquired with the proceeds of the Loan and shares of Company Stock
     that were used as collateral on a prior Loan repaid with the proceeds of
     the current Loan. No person entitled to payment under a Loan shall have
     recourse against Trust Assets other than such collateral, Employer
     Contributions (other than contributions of Company Stock) that are
     available under the Plan to meet obligations under the Loan, and earnings
     attributable to such collateral and the investment of such Employer
     Contributions.

(b)  All Employer Contributions paid during the Plan Year in which a Loan is
     made (whether before or after the date the proceeds of the Loan are
     received), all Employer Contributions paid thereafter until the Loan has
     been repaid in full, and all earnings from investment of such Employer
     Contributions, shall be used to meet obligations under the Loan as such
     obligations accrue, or before such obligations accrue, unless otherwise
     designated by the Committee at the time any such Employer Contribution is
     made.

(c)  Any Company Stock acquired with the proceeds of a Loan shall be placed in a
     Suspense Account. The Company Stock in the Suspense Account must be
     released from the Suspense Account upon the payment of any portion of the
     Loan. The number of shares to be released from the Suspense Account for
     each Plan Year during the duration of the Loan shall equal the number of
     shares of Company Stock which serve as collateral for such Loan held
     immediately before release for the current Plan Year multiplied by a
     fraction. The numerator of the fraction is the sum of principal and
     interest paid in such Plan Year. The denominator of the fraction is the sum
     of the numerator and the principal and interest to be paid for all future
     years. Such years will be determined without taking into account any
     possible extension of renewal periods.

(d)  If the collateral in the Suspense Account includes more than one class of
     Company Stock, the number of shares of each class to be released from the
     Suspense Account for a Plan Year must be determined by applying the same
     fraction to each class. If interest on any Loan is variable, the interest
     to be paid in future years under the Loan shall be computed by using the
     interest rate applicable as of the end of the current Plan Year.

(e)  In the event of a default under the Loan, the value of Plan assets
     transferred in satisfaction of the Loan shall not exceed the amount of the
     default. If the lender is a disqualified person (as defined in section
     4975(e) of the Code) or a party in interest to the Plan (as defined in
     section 3(14) of ERISA), the Loan shall provide for the transfer of Plan
     assets upon default only upon and to the extent of the failure of the Plan
     to meet the payment schedule of the Loan.

                                                                              15

<PAGE>

6.2  Payments on Loans

Payments of principal and interest on any Loan during a Plan Year shall be made
by the Trustee (as directed by the Committee) only from (a) Employer
Contributions to the Trust made to meet the Plan's obligation under a Loan and
from any earnings (including dividends) attributable to such Employer
Contributions or to Company Stock held as collateral for a Loan (received either
during or prior to the Plan Year), less payment from such contributions and
earnings in prior Years; (b) the proceeds of a subsequent Loan made to repay a
prior Loan; and (c) the proceeds of the sale of any Company Stock held as
collateral for a Loan. Such Employer Contributions and earnings must be
accounted for separately by the Plan until the Loan is repaid.

6.3  Crediting of Released Stock

Company Stock released by reason of the payment of principal or interest on a
Loan from Employer Contributions shall, on the Anniversary Date, be allocated to
Participants as set forth in section 7.4.

6.4  Payments of Principal and Interest

(a)  The Company shall contribute to the Trust sufficient amounts to enable the
     Trust to pay principal and interest on any Loans as they are due. If the
     limitations of section 7.5 would result in Employer Contributions in an
     amount insufficient to enable the Trust to pay principal and interest on
     such Loan as it is due, then the Company may-

     (1)  make a Loan to the Trust (as described in Treasury regulation section
          54.4975-7(b)(4)(iii)), in sufficient amounts to meet such principal
          and interest payments. A new Loan must also meet all requirements of
          an exempt loan within the meaning of Treasury regulation section
          54.4975-7(b)(1)(iii) and shall be subordinated to the prior Loan.
          Company Stock released from the pledge of the prior Loan shall be
          pledged as collateral to secure the new Loan. Such Company Stock will
          be released from this new pledge and allocated to the Accounts of the
          Participants in accordance with applicable provisions of the Plan;

     (2)  purchase any Company Stock pledged as collateral in an amount
          necessary to provide the Trustee with sufficient funds to meet the
          principal and interest repayments. Any such sale by the Plan shall
          meet the requirements of section 408(e) of ERISA; or

     (3)  any combination of paragraphs (1) and (2).

(b)  Neither the Company nor any Affiliate, pursuant to this section, shall do,
     fail to do, or cause to be done any act that would result in a
     disqualification of the Plan as an employee stock ownership plan under the
     Code or ERISA.

6.5  Puts, Calls, and Other Options

Except as provided in Article X and notwithstanding any amendment to or
termination of the Plan that causes it to cease to qualify as an employee stock
ownership plan within the meaning of section 4975(e)(7) of the Code, no shares
of Company Stock acquired with the proceeds of a Loan obtained by the Trust to
purchase Company Stock may be subject to a put, call, or other option, or
buy-sell or similar arrangement while such shares are held by and when
distributed from the Plan.

                                                                              16

<PAGE>

Article VII.  Allocations to Participants' Accounts

7.1  Participants Entitled to Allocations

As of each Anniversary Date, a Participant is entitled to the allocations
provided in this Article VII. A Participant must be an active Eligible Employee
on the Anniversary Date in order to share in the allocations relating to that
Anniversary Date; provided, however, that each Participant who is on an
authorized leave of absence, whose employment terminates by reason of death or
early or normal retirement under the terms of the Pension Plan, who becomes
entitled to a disability distribution under section 9.3, or whose employment
terminates in circumstances under which he or she is a Severance Eligible
Participant, shall be entitled to share in the allocation of Employer
Contributions which have not been used to make payments on a Loan or Company
Stock released from the Suspense Account according to section 6.1(c), for any
Anniversary Date occurring with respect to the Plan Year in which the leave of
absence begins or employment terminates. If a Participant becomes an Inactive
Participant during a Plan Year, then such Inactive Participant shall be entitled
to an allocation of Employer Contributions for such Plan Year, provided he or
she is an Employee on the Anniversary Date for that Plan Year.

7.2  Allocations to Company Stock Accounts

A separate Company Stock Account will be established for each Participant. The
Company Stock Account will be credited with (a) a Participant's allocable share
(determined under section 7.4) of Company Stock (including fractional shares)
purchased and paid for by the Trust or contributed in kind to the Trust, (b) any
stock dividends on Company Stock allocated to a Member's or Beneficiary's
Company Stock Account as of the record date therefor and (c) Company Stock
acquired with cash dividends that a Member or Beneficiary elects to reinvest in
Company Stock in accordance with Section 11.2. Company Stock acquired by the
Trust with the proceeds of a Loan obtained pursuant to Article VI shall be
allocated to the Company Stock Accounts of Participants according to the method
set forth in section 7.4 at the time the Company Stock is released from Suspense
Accounts as provided in section 6.1(c).

7.3  Allocations to Other Investments Accounts

A separate Other Investments Account will be established for each Participant.
The Other Investments Account will be credited or debited with (a) each Member's
or Beneficiary's allocable share (as determined under section 7.7) of the net
income or loss of the Trust, (b) for Participants entitled to allocations under
section 7.1, Employer Contributions that have not been used to make principal
and interest payments on a Loan or to purchase Company Stock, and (c) prior to
January 1, 2002, for Participants entitled to allocations under section 7.1,
Forfeitures in other than Company Stock. Each Other Investments Account will be
debited for its share of any cash payments for the acquisition of Company Stock
for the benefit of Company Stock Accounts.

7.4  Allocations of Employer Contributions, Company Stock Acquired With a Loan
and Forfeitures

Subject to subsection (d) of this section and to sections 4.5 and 7.5, (i)
Employer Contributions which have not been used to make payments on a Loan, (ii)
Company Stock released from the Suspense Account according to section 6.1(c),
and (iii) prior to January 1, 2002, Forfeitures incurred since the prior
Anniversary Date, shall be allocated among Participants entitled to allocations
under section 7.1 as follows:

(a)  For the Anniversary Date on January 31, 1989, with respect to Employer
     Contributions which have been made pursuant to a loan described in section
     133(b)(1)(B) of the Code (as in effect on

                                                                              17

<PAGE>

     such date), in the proportion that each such Participant's Compensation for
     January 1989 bears to the total of such Compensation for all such
     Participants (considering in both cases, with respect to each Participant,
     only Compensation not in excess of $16,666.66);

(b)  For the Anniversary Date on December 31, 1989, with respect to Employer
     Contributions which have not been made to make payments on a Loan, Company
     Stock released from the Suspense Account according to section 6.1(c), and
     Forfeitures incurred on or before December 31, 1989, in accordance with the
     following procedure:

     (1)  the number of shares released from the Suspense Account for the Plan
          Year shall be added to the number of shares allocated on the January
          31, 1989 Anniversary Date; and

     (2)  to preliminarily determine the number of shares to be allocated to
          each Participant entitled to share in allocation under section 7.1,
          the number determined under paragraph (1) above shall be multiplied by
          a fraction, the numerator of which is the Participant's Compensation
          for the 1989 Plan Year, and the denominator of which is the aggregate
          Compensation for the 1989 Plan Year of all Participants entitled to
          share in the allocation.

     The product so determined for each such Participant shall be decreased by
     the number of shares of Company Stock allocated to the Participant on the
     January 31, 1989 Anniversary Date; provided that, for any Participant with
     respect to whom the product of subsection (b)(2) is less than the number of
     shares allocated on the January 31, 1989 Anniversary Date, no shares
     allocated on such Anniversary Date shall be subtracted from the
     Participant's Account. To accomplish the foregoing, (A) the Participants
     described in the foregoing proviso (the "Deficit Participants") will
     receive no allocation for the December 31, 1989 Anniversary Date and (B)
     for all other Participants entitled to share in such allocation, the
     preliminary determination described in subsection (b)(2) shall be adjusted
     by subtracting from the shares otherwise allocable to them a number of
     shares equal to the shares that would have been subtracted from the
     Accounts of the Deficit Participants if the foregoing proviso had not
     applied. Such adjustment shall be accomplished pro rata based on the
     relative Compensation of affected Participants as described in subsection
     (b)(2), except that, if such adjustment would result in the subtraction of
     shares allocated to any Participant on the January 31, 1989 Anniversary
     Date, then to the extent such subtraction would occur, the adjustment will
     not be made to such Participant's allocation and any additional adjustment
     shall be made pro rata (on the same basis) among the other affected
     Participants; and

(c)  For each Anniversary Date after December 31, 1989, with respect to Employer
     Contributions which have not been made to make payments on a Loan, Company
     Stock released from the Suspense Account according to section 6.1(c), and,
     prior to January 1, 2002, Forfeitures incurred since the prior Anniversary
     Date, in the proportion that such Participant's Compensation for the Plan
     Year (considering for this purpose only Compensation paid while a
     Participant is in the Plan) bears to the total Compensation of all such
     Participants; provided, however, that a special allocation may be made
     pursuant to section 4.5.

(d)  Notwithstanding subsections (b) and (c), if for any Limitation Year more
     than one-third of the Employer Contributions that are deductible as
     principal or interest payments on a Loan pursuant to the provisions of
     section 404(a)(9) of the Code would, but for the provisions of this
     subsection (e), be allocated to Highly Compensated Participants, then such
     Employer Contributions

                                                                              18

<PAGE>

     otherwise allocable to such Participants shall be reduced. The reduction
     shall be made among all Highly Compensated Participants in the same
     proportion as the amounts of such Employer Contributions otherwise
     allocable to them and shall be made only to the minimum extent necessary so
     that no further reduction would be required to satisfy the conditions of
     section 415(c)(6) of the Code.

(e)  Effective January 1, 2002, all Forfeitures under the Plan shall be used to
     reduce future Employer Contributions by the Company and Participating
     Employers under section 4.1 of the Plan.

The allocations made pursuant to subsections (b), (c) and (d) shall be
consistent with the provisions of sections 9.1, 9.2, 9.3, and 9.4.
Notwithstanding the preceding provisions of this section, and subject to
sections 4.5 and 7.4(d), no allocation shall be made to the Account of any
Participant in any Limitation Year that would cause (A) the Annual Additions of
the Participant to exceed the Maximum Permissible Amount (as defined under
section 7.5) for that year (except as permitted in section 7.5) or (B) for
Limitation Years beginning prior to January 1, 2000, the sum of the "defined
benefit plan fraction" and the "defined contribution plan fraction" (each as
defined in Code section 415(e) as in effect on December 31, 1999) to exceed one
for that Participant for that Limitation Year.

7.5  Maximum Allocation

(a)  Notwithstanding anything to the contrary contained elsewhere in the Plan,
     but subject to sections 4.5 and 7.4(d), for each Limitation Year, the
     allocations to the Account of any Participant shall be limited so that the
     Participant's Annual Additions for such Year do not exceed the Maximum
     Permissible Amount (as defined in subsection (i)(1) below).

(b)  If the foregoing limitation on allocations would be exceeded in any
     Limitation Year for any Participant as a result of the allocation of
     Forfeitures, reasonable error in estimating a Participant's Compensation,
     or under such other limited facts and circumstances as the Commissioner of
     Internal Revenue, pursuant to Treasury regulation section 1.415-6(b)(6),
     finds justify the availability of this subsection (b), the excess amount
     shall be placed, unallocated to any Participant, in a Limitation Account
     (as defined in subsection (i)(3) below). If a Limitation Account is in
     existence at any time during a particular Limitation Year, other than the
     Limitation Year described in the preceding sentence, all amounts in the
     Limitation Account must be allocated to Participants' Accounts (subject to
     the limits of this section 7.5) before any contributions that would
     constitute Annual Additions may be made to the Plan for that Limitation
     Year. The excess amounts allocated pursuant to this subsection (b) shall be
     used to reduce Employer Contributions for the next Limitation Year (and
     succeeding Limitation Years, as necessary) for all of the Participants in
     the Plan. Excess amounts held in a Limitation Account pursuant to this
     section 7.5 may not be distributed to Participants or former Participants.
     The Limitation Account will not share in the valuation of Participants'
     Accounts or in the allocation of earnings set forth in section 7.7 of the
     Plan, and the change in fair market value and allocation of earnings
     attributable to the Limitation Account shall be allocated to the remaining
     accounts hereunder as set forth in this section 7.5.

(c)  Upon termination of the Plan, any amounts in a Limitation Account at the
     time of such termination shall revert to the Company or Participating
     Employer that employs the Employees to whom such amounts are attributable.

(d)  For Limitation Years beginning prior to January 1, 2000, if any Participant
     under the Plan is also a Participant in a defined benefit plan (as defined
     in section 415(k) of the Code) maintained by

                                                                              19

<PAGE>

     the Company or an Affiliate, the sum of the "defined benefit plan fraction"
     and the "defined contribution plan fraction" (each as defined in Code
     section 415(e) as in effect on December 31, 1999) for any Limitation Year
     with respect to such Participant shall not exceed one. If a Participant is
     otherwise entitled to receive an allocation under this Plan and accrue a
     benefit under a defined benefit plan maintained by the Company or an
     Affiliate, and the combination thereof would cause the limitations of this
     section to be exceeded, the allocation under this Plan will only be reduced
     if the accrual under such defined benefit plan is not decreased as
     necessary to cause such limitations not to be exceeded. For any Limitation
     Year prior to January 1, 2000 in which the Plan is a top-heavy plan, the
     determination of the defined benefit fraction and the defined contribution
     fraction under this subsection (d) will be adjusted in accordance with the
     provisions of section 416(h) of the Code (as in effect on December 31,
     1999).

(e)  If a Participant is entitled to receive an allocation under this Plan and
     any Related Plan and, in the absence of the limitations contained in this
     section, the Company or a Participating Employer would contribute or
     allocate to the Account of that Participant an amount for a Limitation Year
     that would cause the Annual Additions to the Account of the Participant to
     exceed the annual Maximum Permissible Amount for such Limitation Year, then
     the contributions and allocations made with respect to the Participant
     under this Plan will only be reduced if the contributions or allocations to
     the Participant's accounts under the Related Plan are not decreased to the
     extent necessary so that the Participant's Annual Additions do not exceed
     the Maximum Permissible Amount.

(f)  In applying the limitations under this section 7.5, all Affiliates shall,
     together with the Company, be considered as a single employer. In addition,
     in applying these limitations, all defined contribution plans (whether or
     not terminated) of the Company and all Affiliates shall be treated as one
     defined contribution plan, and all defined benefit plans (whether or not
     terminated) of the Company and all Affiliates shall be treated as one
     defined benefit plan.

(g)  Any reduction in the contributions and allocations under this Plan made
     with respect to a Participant's Account required pursuant to this section
     and section 415 of the Code shall be effected, to the minimum extent
     necessary, by reducing the Employer Contributions that would have been made
     by the Company or a Participating Employer for the applicable Plan Year
     with respect to such Participant.

(h)  The provisions of this section shall be interpreted by the Committee, in
     the administration of the Plan, to reduce contributions and allocations (as
     required by this section) only to the minimum extent necessary to reflect
     the requirements of section 415 of the Code, as amended and in force from
     time to time, and Treasury regulations promulgated pursuant to that
     section, which are incorporated by reference herein.

(i)  For purposes of this section 7.5-

     (1)  "Maximum Permissible Amount" shall mean:

          (A)  the lesser of-

               (i)  $40,000 (as adjusted for increases in the cost-of-living
                    under section 415(d) of the Code); or

                                                                              20

<PAGE>

               (ii)  100 percent of a Participant's compensation (as defined in
                     paragraph (2) hereof), for the Limitation Year.

          (B)  If no more than one-third of the Employer Contributions for a
               Limitation Year that are deductible as principal or interest
               payments on a Loan pursuant to the provisions of section
               404(a)(9) of the Code are allocated to Highly Compensated
               Participants, then the limitations imposed by paragraph (A),
               shall not apply to-

               (i)   Forfeitures of Company Stock if the Company Stock was
                     acquired with the proceeds of a Loan; or

               (ii)  Employer Contributions that are deductible as interest
                     payments on a Loan under section 404(a)(9)(B) of the Code
                     and charged against a Participant's Account.

     (2)  For purposes of this section, section 2.1(v) and Article XV,
          "compensation" shall mean wages, salaries, fees for professional
          services, and other amounts received for personal services actually
          rendered in the course of employment with the Company or an Affiliate
          (including, but not limited to, commissions paid salesmen,
          compensation for services on the basis of a percentage of profits,
          tips, and bonuses); shall include all compensation actually paid or
          made available to a Participant for an entire Limitation Year;
          effective as of January 1, 1998, shall include amounts which are not
          includible in the Participant's gross income by reason of sections
          125, 402(g)(3) and, effective July 1, 2001, 132(f)(4) of the Code; and
          shall not include any other items or amounts paid to or for the
          benefit of a Participant.

     (3)  "Limitation Account" shall mean a suspense account established in
          accordance with Treasury regulation section 1.415-6(b)(6) to hold
          excess Annual Additions with respect to one or more Participants prior
          to allocation of such excess Annual Additions to Participants'
          Accounts.

(j)  To the extent permitted, the limitations set forth in this section 7.5
     shall be adjusted in connection with contributions made pursuant to section
     7.4(d).

7.6  Vesting

(a)  Each Member shall have a vested interest in the adjusted balance of his or
     her Company Stock and Other Investments Accounts in accordance with the
     vesting schedule set forth in section 2.1(ww).

(b)  On reaching the Normal Retirement Date, a Member shall be 100 percent
     vested in the adjusted balance of his or her Company Stock and Other
     Investments Accounts if such Member is an Employee on his or her Normal
     Retirement Date.

(c)  In the event a Member dies or becomes entitled to a disability distribution
     under section 9.3, the Member shall be 100 percent vested in the adjusted
     balance of his or her Company Stock and Other Investments Accounts if such
     Member is an Employee on the date he or she dies or becomes entitled to
     such distribution.

                                                                              21

<PAGE>

7.7  Net Income or Loss of the Trust

(a)  Dividends on Company Stock. Any stock dividends received in respect of
     --------------------------
     Company Stock allocated to a Member's or Beneficiary's Company Stock
     Account as of the record date therefor shall be credited to the Member's or
     Beneficiary's Company Stock Account on the Valuation Date coincident with
     or succeeding the Trustee's receipt of such dividends. Any stock dividends
     received in respect of Company Stock held in the Suspense Account as of the
     record date shall be allocated to such Suspense Account and released
     pursuant to section 6.1(c). Any cash dividends received on Company Stock
     held in the Suspense Account pursuant to section 6.1(c), or any cash or
     stock dividends received on Company Stock that has been forfeited pursuant
     to section 9.4(b), but not yet used to offset Employer Contributions
     pursuant to section 4.1 or reallocated pursuant to section 7.4(c), as of
     the record date, may be used to meet obligations under the Loan, the
     proceeds of which were used to acquire such Company Stock.

(b)  Other Income or Loss. The net income or loss of the Trust shall be
     --------------------
     determined as of each Valuation Date. Each Member's and Beneficiary's share
     of the net income or loss will be allocated to the Member's or
     Beneficiary's Other Investments Accounts in the ratio that the balance of
     all his or her Account on the last Valuation Date, based on the fair market
     value thereof (reduced by the amount of any distribution from such Account,
     including a distribution or transfer pursuant to section 7.9, other than a
     distribution made in the calendar quarter that the Member ceases being an
     Employee), bears to the sum of such balances for all Members and
     Beneficiaries as of that date. The net income or loss of the Trust includes
     the increase or decrease in the fair market value of Trust Assets (other
     than Company Stock), interest income, dividends, and other income or loss
     attributable to Trust Assets (other than Company Stock, except as provided
     in subsection (a) above) since the last Valuation Date. Net income or loss
     shall not include Employer Contributions or Forfeitures. Any proceeds of
     sales of unallocated Company Stock shall, to the extent such amounts are
     not used to pay principal or interest on a Loan, be considered net income
     for the Trust. Net income or loss attributable to any Limitation Account
     established under section 7.5 shall be allocated to the Other Investments
     Accounts of Members and Beneficiaries in accordance with the ratio
     described in the second sentence of this subsection (b), and the Limitation
     Account shall not share in the allocation of net income or loss of the
     Trust under this section.

7.8  Accounting for Allocations

The Committee shall adopt accounting procedures for the purpose of making the
allocations, valuations, and adjustments to Members' and Beneficiaries' Accounts
provided for in this section. Except as provided in Treasury regulation section
54.4975-11, Company Stock acquired by the Plan shall be accounted for as
provided under Treasury regulation section 1.402(a)-l(b)(2)(ii); allocations of
Company Stock shall be made separately for each class of stock; and the
Committee shall maintain adequate records of the cost basis of all shares of
Company Stock allocated to each Member's and Beneficiary's Company Stock
Account. From time to time, the Committee may modify the accounting procedures
for the purpose of achieving equitable and nondiscriminatory allocations among
the Accounts of Members and Beneficiaries in accordance with the general
concepts of the Plan and the provisions of this section. Annual valuations of
Trust Assets shall be made at fair market value.

7.9  Diversification of Investments

(a)  Except as provided below, a Qualified Participant (pursuant to either
     section 2.1(mm)(1) or (2)) may elect, within 90 days after the close of
     each Plan Year in the Qualified Election Period described in 2.1(ll)(1) or
     (2), as applicable, one of the following:

                                                                              22

<PAGE>

     (1)  to have the Trustee dispose of a specified whole number of shares of
          Company Stock not in excess of the Qualified Participant's "Applicable
          Amount"(defined below) and transfer the proceeds thereof to The
          Northern Trust Company Thrift-Incentive Plan, or

     (2)  to receive a distribution of the Applicable Amount (calculated in the
          manner described below but considering only elections, if any, made
          during the Qualified Election Period described in Section 2.1(mm)(2)).
          Such a distribution shall not be subject to the requirements of
          section 10.2 of the Plan.

     A Qualified Participant's Applicable Amount for a Plan Year in the
     Qualified Election Period shall equal 25 percent of (1) the total number of
     shares of Company Stock ever acquired by or contributed to the Plan and
     allocated to the Qualified Participant's Account in the Plan as of the end
     of such Plan Year less (2) the number of shares to which a prior election
     under this subsection applied; provided that, if with respect to a
     Qualified Participant, such difference is not a whole number of shares of
     Company Stock, it shall be rounded to the nearest whole number of shares.
     In the case of the last year of a Qualified Election Period, the preceding
     sentence shall be applied by substituting "50 percent" for "25 percent."
     Qualified Participant elections under this subsection (a) shall be in such
     written, electronic, or other form as the Committee shall determine.

(b)  The provisions of this section shall apply notwithstanding any other
     provisions of the Plan.

(c)  If the Committee receives a Qualified Participant's election pursuant to
     subsection (a), it shall direct the Trustee (1) to sell the required number
     of shares of Company Stock (and, if the Committee desires, the manner in
     which such sale should be accomplished) as of the March 31 next succeeding
     the end of the Plan Year with respect to which the election is made and (2)
     to transfer to The Northern Trust Company Thrift-Incentive Plan or
     distribute to the Qualified Participant, as the case may be, an amount of
     cash equal to the proceeds of the sale of the subject shares. Any such
     transfer shall be made as of the next succeeding April 1, and any such
     distribution shall be made within 90 days after the last day of the period
     during which the election can be made. Notwithstanding any provision of the
     Plan to the contrary, if the Trustee is unable to sell the required shares
     as aforesaid in a timely manner, the Company shall buy such shares. If such
     shares are sold to the Company or an Affiliate, the price paid therefor
     shall be the greater of the fair market value of such shares as of March 31
     or the fair market value of such shares on the date the sale actually
     occurs; provided that, any amount the Plan receives in excess of the fair
     market value as of March 31 shall be considered earnings of the Plan and
     shall be allocated as provided in section 7.7(b).

(d)  Notwithstanding the foregoing, a Qualified Participant shall not be
     entitled to make an election hereunder for a Plan Year within a Qualified
     Election Period if the fair market value of the total number of shares of
     Company Stock ever acquired by or contributed to the Plan and allocated to
     the Qualified Participant's Account in the Plan as of the last day of such
     Plan Year is less than $500.

(e)  Notwithstanding the foregoing, a Qualified Participant who is not an
     Employee of the Company or an Affiliate at the time an election is made
     under this section 7.9, shall not be permitted to transfer amounts to The
     Northern Trust Thrift-Incentive Plan pursuant to subsection (a)(1) above,
     and shall only be entitled to the distribution right described in
     subsection (a)(2) above.

                                                                              23

<PAGE>

Article VIII. Voting and Tender of Company Stock

8.1  Voting Rights; Tender Offers

(a)  Each Member and Beneficiary shall have the right to direct the manner in
     which the Trustee shall vote shares of Company Stock allocated to such
     Member's or Beneficiary's Account.

(b)  In the event of a Tender Offer for Company Stock, each Member and
     Beneficiary shall have the right to direct whether the Trustee will (1)
     tender the Company Stock allocated to such Member's or Beneficiary's
     Account and (2) withdraw such Company Stock from the depository into which
     it is tendered pursuant to such direction.

(c)  Subject to sections 16.8 and 16.9 of the Plan and Part 4 of Title I of
     ERISA, the Trustee shall vote, tender, or withdraw from the depository into
     which tendered, Company Stock allocated to Members' and Beneficiaries'
     Accounts in accordance with directions received from such Members and
     Beneficiaries within the time periods set forth below and the Trustee shall
     have no discretion in such matter. Subject to subsection (e) below, the
     Trustee shall vote allocated shares for which it has not received timely
     directions from Members and Beneficiaries and unallocated shares of Company
     Stock in the same proportion as directed shares are voted and shall have no
     discretion in such matter except as otherwise provided in accordance with
     ERISA.

(d)  As soon as possible prior to each stockholders meeting of Northern Trust
     Corporation, the Trustee shall provide each Member and Beneficiary entitled
     under this section to direct the voting of Company Stock with notice of
     such meeting and of those matters which at the time of the mailing of such
     notice are expected to be presented at such meeting for action by holders
     of Company Stock. Such notice shall be accompanied by an appropriate form
     with which the Member or Beneficiary may direct the manner of voting on
     such matters, or instructions regarding electronic or telephonic voting of
     the Common Stock. If directions on such matters are received by the Trustee
     from any such Member or Beneficiary at least two days prior to such
     meeting, the Trustee shall vote the shares allocated to such Member's or
     Beneficiary's Account in accordance with the directions received from such
     Member or Beneficiary.

(e)  If any person makes a Tender Offer for shares of Company Stock which
     includes shares of Company Stock allocated to Members' and Beneficiaries'
     Accounts under the Plan, the Trustee shall promptly notify each such Member
     and Beneficiary: (1) that a Tender Offer for shares of Company Stock has
     been commenced, (2) of the identity of the tender offeror, (3) of such
     other information as the Trustee deems appropriate to enable the Member or
     Beneficiary to make an independent decision with respect to the tendering
     of such Company Stock, (4) that the Member or Beneficiary has the right to
     direct whether the shares of Company Stock allocated to his or her Account
     will be tendered, (5) that Company Stock allocated to the Member's or
     Beneficiary's Account will be tendered or not tendered in accordance with
     directions received by the Trustee from such Member or Beneficiary no later
     than the date two days before the deadline for tenders under such Tender
     Offer, and (6) that the Trustee shall not tender Company Stock allocated to
     Members' and Beneficiaries' Accounts for which timely directions are not
     received or Company Stock held by the Trustee that is not allocated to
     Accounts except as otherwise provided in accordance with ERISA. Such notice
     will be accompanied by an appropriate form with which the Member or
     Beneficiary may direct the Trustee whether to tender the shares allocated
     to his or her Account, or instructions regarding electronic or telephonic
     direction with respect to the tender of such shares. If such written,
     electronic or telephonic direction is received by the

                                                                              24

<PAGE>

     Trustee prior to such date, the Trustee shall tender, or not tender, the
     shares allocated to such Member's or Beneficiary's Account in accordance
     with such directions. The instructions received by the Trustee from Members
     and Beneficiaries shall be held by the Trustee in confidence and shall not
     be divulged or released to any person, including officers or employees of
     the Company or any Affiliate. A Member's or Beneficiary's direction to
     tender or not tender may be revoked by a subsequent direction received by
     the Trustee from such Member or Beneficiary on or before the date two days
     before the deadline for such tenders, but all directions shall become
     irrevocable on such date. After shares of Company Stock have been tendered
     pursuant to this subsection, the Trustee shall credit each Account for
     which a timely tender direction was received with the proceeds of the sale
     of Company Stock from such Account pursuant to the Tender Offer.

(f)  If shares of Company Stock have been tendered in a Tender Offer by the
     Trustee pursuant to the direction of a Member or Beneficiary, and if
     withdrawal rights arise pursuant to (1) the terms of such Tender Offer, (2)
     any statute or regulation promulgated thereunder, or (3) a court order, the
     Trustee shall promptly notify any Member or Beneficiary who made such a
     direction that he or she has the right to direct the withdrawal of the
     shares of Company Stock tendered pursuant to his or her direction from the
     depository into which such shares have been tendered. The Trustee will
     provide such Member or Beneficiary with an appropriate form with which he
     or she may direct the Trustee to withdraw such shares, or instructions
     regarding electronic or telephonic direction with respect to the withdrawal
     of such shares. In the event the Trustee receives any such written,
     electronic or telephonic direction within sufficient time to act, it shall
     withdraw such shares of Company Stock.

(g)  For purposes of this section 8.1, a "Tender Offer" is a tender offer for,
     or a request for or invitation for tenders of, stock within the meaning of
     section 14(d) of the Securities Exchange Act of 1934 and applicable rules,
     regulations, and case law thereunder.

                                                                              25

<PAGE>

Article IX.  Benefits

9.1      Payments on Retirement

A Member who attains his or her Normal Retirement Date or early retirement date
and continues to be an Employee shall continue to share in the allocation of
Employer Contributions and Forfeitures in other than Company Stock under the
Plan. Upon the retirement of a Member on or after his or her Normal Retirement
Date or early retirement date, the Committee shall notify the Trustee in writing
of the Member's retirement and shall direct the Trustee to make payment of the
adjusted balance of the Member's Accounts as of the Valuation Date coinciding
with or immediately preceding the date a distribution is made to the Member,
unless the Member agrees to a later date in a method provided in the Plan.
Notwithstanding the foregoing, if a Member retires on or after his or her Normal
Retirement Date or early retirement date and before the Anniversary Date next
following his or her retirement, he or she shall be entitled to share in the
allocation of Employer Contributions which have not been used to make payments
on a Loan, Company Stock released from the Suspense Account according to section
6.1(c), and Forfeitures in other than Company Stock, occurring on such
Anniversary Date. For purposes of this Article IX, a Member's "early retirement
date" means the date the Member could terminate employment with entitlement to
early retirement benefits under the Pension Plan.

9.2      Payments on Death

(a)      Upon the death of a Member, the Committee shall promptly notify the
         Trustee in writing of the Member's death and the name of the Member's
         Beneficiary (or Spouse if subsection (c) is applicable) and shall
         direct the Trustee to make payment of the adjusted balances of the
         Member's Account (or the Vested Portion thereof if section 7.6(c) is
         not applicable) as of the Valuation Date coinciding with or immediately
         preceding the date a distribution is made to the Member's Beneficiary,
         in a method provided in the Plan. Notwithstanding the foregoing, if
         such Member dies and the distribution of the Accounts of such Member is
         made before the Anniversary Date next following his or her death, his
         or her Beneficiary or Spouse, as the case may be, shall be entitled to
         share in the allocation of Employer Contributions which have not been
         used to make payments on a Loan, Company Stock released from the
         Suspense Account according to section 6.1(c), and Forfeitures in other
         than Company Stock, occurring on such Anniversary Date.

(b)      Each unmarried Member and each married Member whose surviving Spouse
         has consented to an alternate Beneficiary or an alternate method of
         payment as provided in subsection (c) shall have the right to
         designate, by giving a written designation to the Committee, a person
         or entity as Beneficiary to receive the death benefit provided under
         this section. Successive designations may be made, and the last
         designation received by the Committee prior to the death of the Member
         shall be effective and shall revoke all prior designations.

(c)      The Beneficiary of each Member who is married shall be the surviving
         Spouse of such Member and the death benefits of any Member who is
         married shall be paid in full to his or her surviving Spouse in a
         single payment. Notwithstanding the preceding sentence, the death
         benefits provided pursuant to subsection (a) shall be distributed to
         any other Beneficiary designated by a married Member as provided in
         subsection (b) of this section if the Member's surviving Spouse
         consented to such designation, prior to the date of the Member's death,
         in writing. Such a consent must acknowledge the effect of the election
         and designation and the identity of any nonsurviving Spouse
         Beneficiary, including any class of Beneficiaries or contingent
         Beneficiaries, and must be witnessed by a representative of the Plan or
         a notary public. Consent

                                                                              26

<PAGE>

         of a Member's surviving Spouse shall not be required if the Member
         establishes to the satisfaction of the Committee that consent may not
         be obtained because there is no surviving Spouse or the surviving
         Spouse cannot be located, or because of such other circumstances as the
         Secretary of the Treasury may prescribe by regulations. The Member may
         not subsequently change the designation of the Beneficiary unless his
         or her surviving Spouse consents to the new designation in accordance
         with the requirements set forth in the preceding sentence. Any such
         consent shall only be effective with respect to the specific Spouse. A
         surviving Spouse's consent shall be irrevocable. If a married Member
         dies, and there is a Beneficiary designation as to which the Member's
         surviving Spouse has not consented as provided above, then the
         distribution under this section 9.2 shall be made to the Member's
         surviving Spouse in a lump sum.

         Notwithstanding the foregoing, the consent of a Member's surviving
         Spouse shall not be required if the Member establishes to the
         satisfaction of the Committee that consent may not be obtained because
         there is no surviving Spouse, the surviving Spouse cannot be located,
         or because of such other circumstances as the Secretary of the Treasury
         may prescribe by regulations.

9.3      Payments on Disability

In the case of a Member who is absent from employment by reason of disability,
the Committee shall direct the Trustee to make payment of the adjusted balances
of the Member's Accounts upon the earliest to occur of the following:

(a)      The absence continues without interruption for a period of 12 months;

(b)      The Member is entitled to receive a benefit payable prior to death (a
         "living benefit") under the terms of the Company's Non-Contributory
         Life Insurance Plan (or would be entitled to a living benefit, as
         determined by the Committee, if the Member participated in such Life
         Insurance Plan); or

(c)      The Member has a Permanent Disability, provided that some portion of
         the Member's Account is attributable to participation in the Plan on or
         before August 1, 1998.

Such distribution shall be made as of the Valuation Date coinciding with or
immediately preceding the date a distribution is made to the Member. A Member
who receives a distribution under this section shall be entitled to share in the
allocation of Employer Contributions which have not been used to make payments
on a Loan, Company Stock released from the Suspense Account according to section
6.1(c), and Forfeitures in other than Company Stock for the Anniversary Date
occurring with respect to any Plan Year in which the Member continued to receive
Compensation, including the Plan Year in which such Member's employment
terminates.

9.4      Payments on Termination for Other Reasons

(a)      General. Upon the termination of a Member's employment with the Company
         -------
         and all Affiliates for any reason other than retirement under Section
         9.1, death, or, disability which entitles the Member to a distribution
         under section 9.3, the Committee shall notify the Trustee in writing of
         the termination and shall direct the Trustee to make payment of the
         Vested Portion of the adjusted balances of the Member's Accounts as of
         the Valuation Date coinciding with or next preceding the date a
         distribution is made to the Member. The Vested Portion of a Member's
         Accounts shall be determined in accordance with section 7.6 of the
         Plan.

                                                                              27

<PAGE>

(b)      Forfeiture. The Unvested Portion of the adjusted balance of the Account
         ----------
         of a Member who terminates employment with the Company and all
         Affiliates under this section shall be forfeited as of the first
         Valuation Date following the date the Member terminates employment with
         the Company and all Affiliates. The amount forfeited shall be the
         entire Unvested Portion. If a Member's Company Stock Account includes
         more than one class of Company Stock, the Forfeiture will consist of
         the same proportion of each class of stock.

(c)      Reinstatement.  If a Member is reemployed by the Company or an
         -------------
         Affiliate after incurring a Forfeiture, the Member shall be entitled to
         make repayment to the Plan of the aggregate amount distributed to him
         or her, at any time before the earlier of (1) five years after the
         Member is reemployed and (2) the end of five consecutive One-Year
         Breaks in Service incurred by the Member. Upon making repayment in a
         single cash sum of the fair market value (at the time of distribution)
         of the aggregate amount distributed to him or her, the amount repaid
         shall be credited to the Member's Account and invested by the Trustee
         in a cash equivalent short term investment fund. Notwithstanding the
         foregoing, effective January 1, 2002, the repayment will be reinvested
         in Company Stock in accordance with administrative procedures
         established by the Committee. Any amount which was forfeited (also
         based on the fair market value at the time of distribution) upon the
         Member's prior employment termination shall be reinstated to the
         Member's Account. The amount required to restore such Member's Account
         shall be made up from Forfeitures and, to the extent necessary,
         Employer Contributions prior to their allocation pursuant to section
         7.4.

9.5      Deemed Cashout

If a Member has no vested interest in his Account balance when his or her
employment with the Company and all Affiliates terminates, such Member will be
treated as having received a Deemed Cashout of the Member's Account balance as
of the last day of the Plan Year in which the Member's employment terminated and
the Member's Account balance will be treated as a Forfeiture on such date.
"Deemed Cashout" means a distribution of zero dollars representing the Member's
entire Account balance. If the Member is reemployed with the Company or any
Affiliate before such Member has incurred five (5) consecutive One-Year Breaks
in Service, the amount forfeited will be restored as the Member's Account
balance.

9.6      Property Distributed

Any distribution pursuant to section 9.1, 9.2, 9.3, or 9.4, from a Member's or
Beneficiary's Company Stock Account, shall be made in whole shares of Company
Stock, and the value of partial shares of Company Stock shall be paid in cash.
Distribution from a Member's or Beneficiary's Other Investments Account shall be
made in cash unless the Member or Beneficiary requests a distribution in stock
of the whole shares purchasable with such balance and the balance attributable
to fractional shares in the Member's or Beneficiary's Company Stock Account, in
which case the Trustee shall acquire the necessary shares for distribution. If
cash is to be distributed in connection with fractional shares, the Trustee
shall sell such shares as of the Valuation Date with respect to which the
distribution is being made and distribute the proceeds of sale to the affected
Member or Beneficiary. Any such sale shall be subject to the last two sentences
of section 7.9(c).

9.7      Methods of Payment

(a)      Whenever the Committee shall direct the Trustee to make payment to a
         Member upon termination of a Member's employment on or after the
         Member's Normal Retirement Date, the Committee shall direct the Trustee
         to pay the adjusted balances of the Member's Account to or

<PAGE>

         for the benefit of the Member in a single sum distribution. Whenever
         the Committee shall direct the Trustee to make payment to a Member, the
         Member's Spouse, or other Beneficiary upon or following termination of
         a Member's employment for any other reason, the Committee shall direct
         the Trustee to pay the Vested Portion of the adjusted balances of the
         Member's Accounts, if any, to or for the benefit of the Member, the
         Member's Spouse, or the Member's Beneficiary, in a single sum
         distribution.

(b)      Payment under this section shall be made as soon as reasonably
         practicable (and under ordinary circumstances no more than 60 days)
         after the Valuation Date coincident with or following the date the
         Member ceases being an Employee provided that (1) any Member or
         Beneficiary or Spouse described in section 9.1, 9.2, or 9.3 may elect
         to defer distribution to such Anniversary Date and (2) effective
         January 1, 1998, if the Vested Portion of a Member's Account exceeds
         $5,000, distribution shall not be made to the Member at any time prior
         to the earlier of the Member's Normal Retirement Date or death without
         the Member's written consent. A Member described in paragraph (2) may
         elect to receive distribution of the Member's Accounts as of any
         Valuation Date following the Valuation Date next succeeding the
         Member's termination by filing prescribed materials with the Trustee on
         or before such reasonable deadline as established by the Trustee.

         Distribution may commence less than thirty (30) days after the notice
         required under section 1.411(a)-11(c) of the Treasury regulations is
         given, provided that:

         (1)     the Committee clearly informs the Member that the Member has a
                 right to a period of at least thirty (30) days after receiving
                 the notice to consider the decision of whether to elect a
                 distribution, and

         (2)     the Member, after receiving the notice, affirmatively elects a
                 distribution.

(c)      Notwithstanding the provisions of subsection (b) above, distribution of
         each Member's Account must commence not later than 60 days after the
         last day of the Plan Year in which the last of the following events
         occurs:

         (1)     the Member reaches his or her Normal Retirement Date;

         (2)     the tenth anniversary of the date on which the Member commenced
                 participation in the Plan; or

         (3)     the Member's employment with the Company and all Affiliates
                 terminates.

(d)      Notwithstanding anything to the contrary contained elsewhere in the
         Plan--

         (1)      A Member's benefits under the Plan will-

                 (A) be distributed to him or her not later than the Required
                     Distribution Date (as defined in paragraph (3)), or

                 (B) be distributed commencing not later than the Required
                     Distribution Date in accordance with regulations prescribed
                     by the Secretary of the Treasury over a

                                                                              29

<PAGE>

                           period not extending beyond the life expectancy of
                           the Member or the life expectancy of the Member and
                           the Member's Beneficiary.

         (2)      Payments on death-

                  (A)      If the Member dies after distribution has commenced
                           pursuant to paragraph (1)(B) but before the Member's
                           entire interest in the Plan has been distributed to
                           him or her, then the remaining portion of that
                           interest will be distributed at least as rapidly as
                           under the method of distribution being used under
                           paragraph (1)(B) at the date of the Member's death.

                  (B)      If the Member dies before distribution has commenced
                           pursuant to paragraph (1)(B), then, except as
                           provided in paragraphs (2)(C) and (2)(D), the
                           Member's entire interest in the Plan will be
                           distributed within five years after the Member's
                           death.

                  (C)      Notwithstanding the provisions of paragraph (2)(B),
                           if the Member dies before distribution has commenced
                           pursuant to paragraph (1)(B) and if any portion of
                           the Member's interest in the Plan is payable (i) to
                           or for the benefit of a Beneficiary, (ii) in
                           accordance with regulations prescribed by the
                           Secretary of the Treasury over a period not extending
                           beyond the life expectancy of the Beneficiary, and
                           (iii) beginning not later than one year after the
                           date of the Member's death or such later date as the
                           Secretary of the Treasury may prescribe by
                           regulations, then the portion referred to in this
                           paragraph (2)(C) shall be treated as distributed on
                           the date on which such distribution begins.

                  (D)      Notwithstanding the provisions of paragraphs (2)(B)
                           and (2)(C), if the Beneficiary referred to in
                           paragraph (2)(C) is the Spouse of the Member, then-

                           (i)      the date on which the distributions are
                                    required to begin under paragraph
                                    (2)(C)(iii) of this section shall not be
                                    earlier than the date on which the Member
                                    would have attained age 70-1/2, and

                           (ii)     if the Spouse dies before the distributions
                                    to that Spouse begin, then this paragraph
                                    (2)(D) shall be applied as if the surviving
                                    Spouse were the Member.

         (3)      For purposes of subsection (d)(1), the Required Distribution
                  Date means April 1 of the calendar year in which occurs the
                  later of (A) the Member's attainment of age seventy and
                  one-half (70-1/2), or (B) the Member's retirement (within the
                  meaning of Code section 401(a)(9)), unless the Member is a
                  Five Percent Owner (as defined in section 416(i) of the Code)
                  with respect to the Plan Year during which the Member attains
                  age 70-1/2, in which case clause (B) shall not apply. Any
                  Member who attained age 70-1/2 on or before December 31, 1998
                  shall continue to receive distributions under the terms of the
                  Plan as in effect on December 30, 1998.

         (4)      For purposes of subsection (d), once distribution has
                  commenced hereunder, the life expectancy of a Member and the
                  Member's Spouse may not be redetermined.

                                                                              30

<PAGE>

     (5)  A Member may not elect a form of distribution pursuant to paragraph
          (1) providing payments to a Beneficiary who is other than the Member's
          Spouse unless the actuarial value of the payments expected to be paid
          to the Member is more than 50 percent of the actuarial value of the
          total payments expected to be paid under such form of distribution.

9.8  Direct Rollover of Eligible Rollover Distributions

(a)  Notwithstanding any provision of the Plan to the contrary that would
     otherwise limit a distributee's election under this section, a distributee
     may elect, at the time and in the manner prescribed by the Committee, to
     have any portion of an eligible rollover distribution paid directly to an
     eligible retirement plan specified by the distributee in a direct rollover.
     Any portion of an eligible rollover distribution that is not paid directly
     to an eligible retirement plan in a direct rollover may be subject to 20%
     Federal income tax withholding.

(b)  Definitions.

     (1)  Eligible Rollover Distribution. An eligible rollover distribution is
          ------------------------------
          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: 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 years or
          more; any distribution to the extent such distribution is required
          under section 401(a)(9) of the Code; effective as of January 1, 1999,
          any hardship distribution described in section 401(k)(2)(B)(i)(IV) of
          the Code; and any other distribution excluded under Code section
          402(c)(4). A distribution shall not fail to be an eligible rollover
          distribution merely because a portion of it consists of after tax
          deposits; provided such portion may be rolled over only to an
          individual retirement account or annuity described in section 408(a)
          or (b) of the Code, or to a qualified defined contribution plan
          described in section 401(a) or 403(a) of the Code that agrees to
          separately account for the amounts so transferred, including
          separately accounting for the portion of such distribution that is
          includible in gross income and the portion which is not so includible.

     (2)  Eligible Retirement Plan. An eligible retirement plan means (i) an
          ------------------------
          individual retirement account described in section 408(a) of the Code,
          (ii) an individual retirement annuity described in section 408(b) of
          the Code, (iii) a qualified trust described in section 401(a) of the
          Code, (iv) an annuity plan described in section 403(a) of the Code,
          (v) an eligible deferred compensation plan described in section 457(b)
          of the Code which is maintained by an eligible employer described in
          section 457(e)(1)(A) of the Code and that agrees to separately account
          for amounts transferred into such plan from this Plan, or (vi) an
          annuity contract described in section 403(b) of the Code, that accepts
          the distributee's rollover distribution. The definition of eligible
          retirement plan shall also apply in the case of a distribution to a
          surviving Spouse, or to a Spouse or former Spouse who is an alternate
          payee under a qualified domestic relation order, as defined in section
          414(p) of the Code.

     (3)  Distributee. A Member, the Member's surviving Spouse and the Member's
          -----------
          Spouse or former Spouse who is the alternate payee under a qualified
          domestic relations order, as defined in section 414(p) of the Code,
          are distributees with regard to the respective interest of such
          Member, Spouse or former Spouse.

                                                                              31

<PAGE>

     (4)  Direct Rollover.  A direct rollover is a payment by the Plan to the
          ---------------
          eligible retirement plan specified by the distributee.

9.9  Payment of Small Amounts

Effective January 1, 1998, if the value of a Member's vested Account is $5,000
or less, the Committee shall direct that such amount be paid to the Member or
his or her Beneficiary as soon as administratively feasible following the
Member's Break in Service.

                                                                              32

<PAGE>

Article X.   Rights and Options on Distributed Shares of Company Stock

10.1     Right of First Refusal

(a)      Shares of Company Stock distributed by the Trustee may be subject to a
         right of first refusal. Such a right shall provide that prior to any
         subsequent transfer, the shares must first be offered in writing to the
         Trust and then, if refused by the Trust, to the Company at a price
         equal to the greater of (1) the then fair market value of such shares
         of Company Stock as determined in good faith by the Committee, in
         accordance with Treasury regulation section 54.4975-11(d)(5) or (2) the
         purchase price offered by a buyer, other than the Company or Trustee,
         making an offer in good faith (as determined by the Committee) to
         purchase such shares of Company Stock.

(b)      The Trust or the Company, as the case may be, may accept the offer as
         to part or all of the Company Stock at any time during a period not
         exceeding 14 days after the Trust receives the offer, on terms and
         conditions no less favorable to the Trust than those offered by the
         independent third-party buyer. Any installment purchase shall be made
         pursuant to a note secured by the shares purchased and shall bear a
         reasonable rate of interest as determined by the Committee.

(c)      If the offer is not accepted by the Trust, the Company, or both, then
         the proposed transfer may be completed within a reasonable period
         following the end of the 14-day period but only upon terms and
         conditions no less favorable to the shareholder than the terms and
         conditions of the third-party buyer's prior offer.

(d)      Shares of Company Stock that are publicly traded within the meaning of
         Treasury regulation section 54.4975-7(b)(1)(iv) at the time such right
         may otherwise be exercised shall not be subject to this right of first
         refusal.

10.2     Put Option

(a)      Shares of Company Stock acquired by the Trust shall be subject to a put
         option at the time of distribution if at such time the shares are not
         readily tradable on an established market within the meaning of section
         409(h)(1)(B) of the Code. The put option shall be exercisable by the
         Member, Beneficiary, Spouse, their donees, or by a person (including an
         estate or its distributee) to whom the Company Stock passes by reason
         of the death of the Member, Beneficiary, or Spouse. The put option
         shall provide that for a period of at least 60 days following the date
         of distribution of the Company Stock, the holder of the option shall
         have the right to cause the Company, by notifying it in writing, to
         purchase such shares at their fair market value, as determined pursuant
         to section 5.2. If the put option is not exercised within such 60-day
         period, the option shall be exercisable for an additional period of 60
         days in the following Plan Year. The Committee may give the Trustee the
         option to assume the rights and obligations of the Company at the time
         the put option is exercised, insofar as the repurchase of Company Stock
         is concerned.

(b)      If the entire adjusted balance of the Account of a Member, Spouse,
         Beneficiary, or other person described in subsection 10.2(a) is
         distributed to such Member, Spouse, Beneficiary or other person within
         one taxable year, payment of the price of the Company Stock purchased
         pursuant to an exercised put option shall be made in no more than five
         substantially equal annual payments, and the first installment shall be
         paid not later than 30 days after such Member, Spouse, Beneficiary, or
         other person exercises the put option. The Plan shall provide adequate

                                                                              33

<PAGE>

         security and pay a reasonable rate of interest on amounts not paid
         after 30 days. If the entire adjusted balance of the Account of a
         Member, Spouse, Beneficiary or other person described in subsection
         10.2(a) is not distributed to him or her within one taxable year,
         payment of the price of the Company Stock purchased pursuant to an
         exercised put option shall be made in a single sum not later than 30
         days after such Member, Spouse, Beneficiary or other person exercises
         the put option.

                                                                              34

<PAGE>

Article XI.  In-Service Distributions and Dividends

11.1     In-Service Distributions

Except as provided in sections 7.9, 9.7(d) and 11.2, a Member is not entitled to
any payment, withdrawal, or distribution under the Plan while he or she is a
Participant or Inactive Participant.

11.2     Dividends

Effective January 1, 2002, in accordance with an election made by the Member,
Beneficiary or Spouse, any cash dividend received by the Trustee on Company
Stock allocated to the Account of such Member, Beneficiary, or Spouse as of the
record date shall be either paid to such Member, Beneficiary or Spouse in cash
or re-invested in Company Stock in accordance with Section 7.2. Such election
shall be in such written, electronic or other form, as the Committee shall
establish. Once a Member, Beneficiary or Spouse has made the election either to
receive a cash payment of the dividends or to have the dividends re-invested in
Company Stock, the election will remain in effect until it is subsequently
changed by the Member, Beneficiary or Spouse. A Member, Beneficiary or Spouse
may change the election at any time, and the election that is in effect on the
record date of the dividends will determine whether such dividends are paid in
cash to the Member, Beneficiary or Spouse or re-invested in Company Stock. If a
Member first becomes a Participant in the Plan on or after January 1, 2002 and
the Member or such Member's Beneficiary or Spouse does not make an election
pursuant to this Section 11.2, the dividends will automatically be reinvested in
Company Stock. If a Member first became a Participant in the Plan before January
1, 2002 and the Member or such Member's Beneficiary or Spouse does not make an
election pursuant to this Section 11.2, the dividends will automatically be paid
in cash to such Member, Beneficiary or Spouse.

If a Member, Beneficiary or Spouse has elected to receive a cash payment of the
dividends received by the Trustee on Company Stock allocated to his or her
Account, such payment must be made no later than 90 days after the end of the
Plan Year in which the dividend is received by the Trustee. Any such payment of
cash dividends on shares of Company Stock shall be accounted for as if the
Member, Beneficiary, or Spouse receiving such dividends were the direct owner of
such shares of Company Stock and such payment shall not be treated as a
distribution for purposes of Article X. Any dividends to be paid in cash that
are allocated to a Member's Account on the date of his or her death shall be
paid to the Member's Beneficiary.

If a Member, Beneficiary or Spouse has elected to have the dividends received by
the Trustee on Company Stock allocated to his or her Account re-invested in
Company Stock, such re-investment shall occur within a reasonable period after
the end of the calendar quarter in which such dividends were received by the
Trustee.

                                                                              35

<PAGE>

Article XII.  Plan Administration

12.1     Powers

The Committee shall have all powers necessary to discharge its duties in
administering the Plan including, but not by way of limitation, discretionary
authority with respect to the following powers:

(a)      to construe and interpret the Plan;

(b)      to determine all questions regarding the status and rights of Members
         and Beneficiaries, including questions relating to age, Vesting
         Service, eligibility, or Compensation;

(c)      to make and enforce such rules and regulations as it shall deem
         necessary or proper for efficient administration of the Plan; and

(d)      to retain counsel, employ agents, and actuaries and provide for such
         clerical, medical, accounting, auditing, and other services as it may
         require in carrying out the provisions of the Plan;

provided, however, that no member of the Committee shall participate in any
action on any matter involving solely his or her own rights or benefits or those
of his or her Spouse or other Beneficiaries, and such matters shall be
determined by the other members of the Committee. The Committee may delegate any
or all of its powers under this Article XII.

12.2     Directions to Trustee

The Committee shall direct the Trustee concerning all payments which shall be
made out of the Trust pursuant to the provisions of the Plan. Any direction to
the Trustee, shall be in writing, signed by the Secretary of the Committee or
its delegate, or given by electronic or telephonic media if acceptable to the
Committee or its delegate and the Trustee. The Trustee shall act in a manner
consistent with any such direction that is proper, made in accordance with the
Plan, and not contrary to ERISA.

12.3     Uniform

All rules adopted and all actions taken by the Committee shall be uniform in
nature as applied to all persons similarly situated and shall not discriminate
in favor of Employees who are officers, shareholders, or Highly Compensated
Participants.

12.4     Reports

The Committee shall keep on file, in such form as it shall deem convenient and
proper, such reports of the Trust received from the Trustee that relate to its
duties hereunder.

12.5     Members; Compensation

The Members of the Committee shall be appointed by the Chief Executive Officer
of the Company. Members of the Committee shall not receive compensation for
their services in connection with the Plan, but the Company shall reimburse them
for all necessary expenses incurred in the discharge of their duties.

12.6     Claims Procedure

(a)      Claims for benefits under the Plan shall be made in writing to the
         Committee or its duly authorized delegate. If the Committee or such
         delegate wholly or partially denies a claim for benefits, the Committee
         or, if applicable, its delegate shall, within a reasonable period of
         time, but no later than ninety (90) days after receipt of the claim,
         notify the claimant in writing or

                                                                              36

<PAGE>

         electronically of the adverse benefit determination. Notice of an
         adverse benefit determination shall be written in a manner calculated
         to be understood by the claimant and shall contain (1) the specific
         reason or reasons for the adverse benefit determination, (2) a specific
         reference to the pertinent Plan provisions upon which the adverse
         benefit determination is based, (3) a description of any additional
         material or information necessary for the claimant to perfect the
         claim, together with an explanation of why such material or information
         is necessary, and (4) an explanation of the Plan's review procedure and
         the time limits applicable to such procedure including a statement of
         the claimant's right to bring a civil action under section 502(a) of
         ERISA following an adverse benefit determination. If the Committee or
         its delegate determines that an extension of time is necessary for
         processing the claim, the Committee or its delegate shall notify the
         claimant in writing of such extension, the special circumstances
         requiring the extension and the date by which the Committee expects to
         render the benefit determination. In no event shall the extension
         exceed a period of ninety (90) days from the end of the initial ninety
         (90) day period. If notice of the denial of a claim is not furnished in
         accordance with this subsection (a) within ninety (90) days after the
         Committee or its duly authorized delegate receives it (or within one
         hundred and eighty (180) days after such receipt if the Committee or
         its delegate determines an extension is necessary), the claim shall be
         deemed denied and the claimant shall be permitted to proceed to the
         review stage described in subsection (b) below.

(b)      Within sixty (60) days after the claimant receives the written or
         electronic notice of an adverse benefit determination, or the date the
         claim is deemed denied pursuant to subsection (a) above, or such later
         time as shall be deemed reasonable in the sole discretion of the
         Committee taking into account the nature of the benefit subject to the
         claim and other attendant circumstances, the claimant may file a
         written request with the Committee that it conduct a full and fair
         review of the adverse benefit determination, including the holding of a
         hearing, if deemed necessary by the Committee. In connection with the
         claimant's appeal of the adverse benefit determination, the claimant
         may review pertinent documents and may submit issues and comments in
         writing. The Committee shall render a decision on the appeal promptly,
         but not later than sixty (60) days after the receipt of the claimant's
         request for review, unless special circumstances (such as the need to
         hold a hearing, if necessary) require an extension of time for
         processing, in which case the sixty (60) day period may be extended to
         one hundred and twenty (120) days. The Committee shall notify the
         claimant in writing of any such extension, the special circumstances
         requiring the extension, and the date by which the Committee expects to
         render the determination on review. The claimant shall be notified of
         the Committee's decision in writing or electronically. In the case of
         an adverse determination, such notice shall (1) include specific
         reasons for the adverse determination, (2) be written in a manner
         calculated to be understood by the claimant, (3) contain specific
         references to the pertinent Plan provisions upon which the benefit
         determination is based, (4) contain a statement that the claimant is
         entitled to receive upon request and free of charge, reasonable access
         to, and copies of, all documents, records, and other information
         relevant to the claimant's claim for benefits, and (5) contain a
         statement of the claimant's right to bring an action under section
         502(a) of ERISA.

12.7     Indemnity for Liability

The Company shall indemnify the Committee and each other fiduciary who is an
Employee of the Company or an Affiliate, against any and all claims, losses,
damages, expenses, including counsel fees, incurred by said fiduciaries, and any
liability, including any amounts paid in settlement with such a fiduciary's
approval, arising from the fiduciary's action or failure to act, except when the
same is judicially determined to be attributable to the gross negligence or
willful misconduct of such fiduciary.

                                                                              37

<PAGE>

Article XIII.  Amendment and Termination

13.1     Amendment

The Company reserves the right at any time and from time to time to amend the
Plan in whole or in part either retroactively or prospectively by action of the
Board of Directors or action of the Compensation and Benefits Committee of the
Board of Directors, but no such amendment shall authorize or permit any part of
the corpus or income of the Trust to be used for or diverted to purposes other
than for the exclusive benefit of Members or their Beneficiaries, or to deprive
any of them of any funds then held for his or her Account.

13.2     Termination

It is the intention of the Company to continue the Plan and to make
contributions thereto, but the Company reserves the right to terminate the Plan
in whole or in part as of any Valuation Date by action of the Board of Directors
or action of the Compensation and Benefits Committee of the Board of Directors
and for any reason satisfactory to the Board of Directors. The Company, however,
shall not terminate the Plan while any Loan remains outstanding and unpaid in
whole or in part, without the prior written consent to any such termination by
all holders and guarantors, if any, of the Plan's obligations under such Loan.
Where any holder or guarantor has a representative on the Compensation and
Benefits Committee, prior written consent will not be required if such
representative approves the amendment. Upon partial or full termination, all
affected Members shall become fully vested, and upon permanent discontinuance of
contributions by the Company and Participating Employers, all Members who are
then Employees or who have not previously forfeited their Unvested Portion shall
become fully vested.

13.3     Merger and Consolidation

In the event of any merger or consolidation of the Plan with, or transfer in
whole or in part of the assets and liabilities of the Trust to another trust
fund held under any other plan of deferred compensation maintained or to be
established for the benefit of all or some of the Members, the Plan shall be so
merged or consolidated, or the assets of the Trust applicable to such Members
shall be so transferred, only if--

(a)      each Member would (if either the Plan or the other plan then
         terminated) receive a benefit immediately after the merger,
         consolidation, or transfer which is equal to or greater than the
         benefit he or she would have been entitled to receive immediately
         before the merger, consolidation, or transfer (if the Plan had then
         terminated);

(b)      resolutions of the Board of Directors or of any new or successor
         employer of the affected Members, shall authorize such transfer of
         assets; and, in the case of the new or successor employer of the
         affected Members, its resolutions shall include an assumption of
         liabilities with respect to such Members' inclusion in the new
         employer's plan; and

(c)      such other plan and trust are qualified under section 401(a) and exempt
         under section 501(a) of the Code.

In the event a portion of the business of the Company or any Affiliate is sold
or discontinued, the Board of Directors in its discretion may direct that all
Members who are employed by the new owner of that portion of the business shall
become fully vested.

                                                                              38

<PAGE>

13.4     Distribution Upon Termination

In the event of the termination of the Plan, there shall be distributed to each
Member, or to his or her Beneficiary in the case of a deceased Member, a benefit
equal to the sum of the value of the Member's Account as of the Valuation Date
on which termination occurs. If such benefits shall not exhaust the assets of
the Trust, any remaining assets shall be allocated to the Accounts of the
Members as though they were additional Employer Contributions, and in no event
shall any such assets revert to the Company or any Affiliate.

                                                                              39

<PAGE>

Article XIV.  Extension of Plan to Affiliates

14.1     Participation in the Plan

Any Affiliate which desires to become a Participating Employer under the Plan
may elect, with the consent of the Board of Directors, to become a party to the
Plan and the related Trust by adopting the Plan for the benefit of its eligible
Employees, effective as of the date specified in such adoption. The adoption
resolution or decision may contain such specific changes and variations in Plan
or Trust Agreement terms and provisions applicable to such Participating
Employer and its Employees as may be acceptable to the Board and the Trustee.
However, the sole, exclusive right of any other amendment of whatever kind or
extent to the Plan is reserved to the Board of Directors. The Board of Directors
may amend specific changes and variations in the Plan or Trust terms and
provisions as adopted by the Participating Employer in its adoption resolution
without the consent of such Participating Employer. The adoption resolution or
decision shall become, as to such adopting organization and its employees, a
part of this Plan as then amended or thereafter amended and the related Trust.
It shall not be necessary for the adopting organization to sign or execute the
original or then amended Plan and Trust. The coverage date of the Plan for any
such adopting organization shall be that stated in the resolution or decision of
adoption, and from and after such effective date, such adopting organization
shall assume all the rights, obligations, and liabilities of an individual
employer entity hereunder and under the Trust. The administrative powers and
control of the Company, as provided in the Plan and Trust Agreement shall not be
diminished by reason of the participation of any such adopting organization in
the Plan and Trust Agreement.

14.2     Withdrawal from the Plan

Any Participating Employer may withdraw from the Plan and Trust after giving
notice to the Board of Directors, provided the Board of Directors consents to
such withdrawal. In the event of such withdrawal, the Committee shall cause a
valuation of the Trust to be made to ascertain the value of assets which are
attributable to Members who are Employees of the terminating Participating
Employer or their Beneficiaries in the case of deceased Members and shall direct
the Trustee to segregate assets which are deemed to be so attributable to such
Members from the Trust, and to make distribution to the Members or their
Beneficiaries as if the Plan had terminated with respect to the Members or their
Beneficiaries of such Participating Employer.

In the event such withdrawal constitutes a partial termination of this Plan,
only the affected Participants in that part of the Plan which is terminated
shall have fully vested and nonforfeitable rights in their benefits (unless they
were already fully vested prior to the partial termination). Distribution may be
implemented through continuation of the Trust, or transfer to another trust fund
exempt from tax under section 501 of the Code, or to a group annuity contract
qualified under Code section 401, or distribution may be made as an immediate
cash payment; provided, however, that no such action shall divert any part of
such fund to any purpose other than the exclusive benefit of the Participants of
such Participating Employer.

                                                                              40

<PAGE>

Article XV.  Top-Heavy Provisions

The following provisions shall become effective in any Plan Year in which the
Plan is determined to be a top-heavy plan.

(a)  Determination of Top-Heavy. The Plan will be considered a top-heavy
     --------------------------
     plan for the Plan Year if as of the last day of the preceding Plan Year (1)
     the account balances of Participants who are key employees (as defined in
     section 416(i) of the Code) exceed 60 percent of the account balances of
     all Participants (the "60 Percent Test") or (2) the Plan is part of a
     required aggregation group and the required aggregation group is top-heavy.
     However, and notwithstanding the results of the 60 Percent Test, the Plan
     shall not be considered a top-heavy plan for any Plan Year in which the
     Plan is a part of a required or permissive aggregation group which is not
     top-heavy. The top-heavy ratio shall be computed pursuant to section 416(g)
     of the Code and the regulations issued thereunder. A "required aggregation
     group" is each plan of the Company in which a key employee is a participant
     and each other plan of the Company, if any, which enables such plan to meet
     the requirements of Code section 401(a)(4) or 410. The Company may treat
     any plan not required to be included in an aggregation group as being part
     of a "permissive aggregation group" if such group would continue to meet
     the requirements of Code sections 401(a)(4) and 410 with such plan being
     taken into account.

(b)  Minimum Benefit. The Company's (or Participating Employer's) Employer
     ---------------
     Contribution to a Participant's Account under section 4.1 shall be
     increased as necessary so that it equals at least 3 percent of the
     Participant's compensation (as defined in section 7.5(i)(2)), except that
     this subsection (b) shall not apply if--

     (1)  the Participant is also a participant in the Pension Plan,

     (2)  the Pension Plan is a top-heavy plan, and

     (3)  the Participant receives from the Pension Plan the minimum defined
          benefit accrual required under section 416(c)(1) of the Code.

                                                                              41

<PAGE>

Article XVI.  Miscellaneous Provisions

16.1 Spendthrift Provisions

The interests of Members and their Beneficiaries in the Plan and the Trust shall
not be subject to the claims of any creditor, any Spouse for alimony or support,
or others, or to legal process, and may not be voluntarily or involuntarily
assigned, alienated or encumbered.

Notwithstanding the foregoing, the Plan shall make all payments required by a
qualified domestic relations order within the meaning of Code section 414(p).
The Committee shall establish a procedure to determine the qualified status of a
domestic relations order and to administer distributions under a qualified
order. If the qualified domestic relations order so provides, the Plan may make
a distribution to an alternate payee prior to the date that a Member attains
"earliest retirement age." For purposes of a qualified domestic relations order,
"earliest retirement age" means the earlier of--

(a)  the date the Member is entitled to a distribution under this Plan, or

(b)  the later of (i) the date the Member attains age 50, or (ii) the earliest
     date on which the Member could begin receiving benefits under this Plan if
     the Member separated from service.

An alternate payee under a qualified domestic relations order shall have the
right with respect to his or her interest under the Plan to (i) make dividend
elections under section 11.2, (ii) subject to section 9.5, to defer distribution
of such interest in accordance with section 9.7(b), and (iii) to designate a
Beneficiary with respect to such interest. A Member's alternate payee shall also
have the right to make an election under section 7.9(a)(2) with respect to such
alternate payee's interest under the Plan at the same time, if any, that such
Member has a right to make an election with respect to the Member's Account
under the Plan. For this purpose, the alternate payee's Applicable Amount shall
be calculated as if such alternate payee were a Qualified Participant.

Effective with respect to judgments, orders, decrees and settlement agreements
entered into on or after August 5, 1997, the first sentence of this Section 16.1
shall not apply with respect to any offset to a Member's benefits expressly
provided for in a judgment, order, decree or settlement agreement described in
Code section 401(a)(13)(C).

16.2 Incompetency

Every person receiving or claiming benefits under the Plan shall be presumed to
be mentally competent and of age until the Committee receives a written notice,
in a form and manner acceptable to it, that such person is incompetent or a
minor, and that a guardian, conservator, or other person legally vested with the
care of his estate has been appointed. In the event that the Committee finds
that any person to whom a benefit is payable under the Plan is unable to
properly care for his or her affairs, or is a minor, then any payment due
(unless a prior claim therefor shall have been made by a duly appointed legal
representative) may be paid to the Spouse, a child, a parent, or a brother or
sister, or to any person deemed by the Committee to be authorized to care for
such person otherwise entitled to payment.

In the event a guardian, executor, administrator, or conservator of the estate
of any person receiving or claiming benefits under the Plan shall be appointed
by a court of competent jurisdiction, payments shall be made to such guardian,
executor, administrator, or conservator provided that proper proof of
appointment is furnished in a form and manner suitable to the Committee. Any
payment made under the provisions of this section 16.2 shall be a complete
discharge of any liability therefor under the Plan.

                                                                              42

<PAGE>

16.3   Unclaimed Funds

Each Member shall keep the Committee informed of the Member's current address
and the current address of the Member's Spouse and Beneficiaries. Neither the
Company or any Affiliate, the Committee, nor the Trustee shall be obligated to
search for the whereabouts of any such person. If the then current location of a
Member is not made known to the Committee within three years after the date on
which the Committee directs the distribution to the Member of the Member's
Account, distribution may be made as though the Member had died at the end of
the three-year period. If, within one additional year after such three-year
period has elapsed, or within three years after the actual death of a Member,
the Committee is unable to locate any individual who would receive a
distribution upon the death of the Member pursuant to Article IX, the Member's
Account shall be deemed a Forfeiture; provided, however, that if the Member,
Beneficiary, or Spouse makes a claim for any amount that has been so forfeited,
the forfeited benefits shall be reinstated. The amount required to restore such
benefits shall be made up from Forfeitures and, to the extent necessary, from
Employer Contributions prior to their allocation pursuant to section 7.4 or from
a special Company or Participating Employer contribution.

16.4   Rights Against the Company

Neither the establishment of the Plan, nor of the Trust, nor any modification
thereof, nor any distributions hereunder shall be construed as giving to any
person whomsoever any legal or equitable rights against the Committee, the
Company or any Affiliate, or the officers, directors, or shareholders as such of
the Company or any Affiliate, or as giving any Employee or Member the right to
be retained in the employ of the Company. All benefits payable under the Plan
shall be paid or provided for solely from the Trust, and the Company and
Affiliates shall have no liability or responsibility for benefit distributions
other than to make contributions to the Trust as herein provided.

16.5   Illegality of Particular Provision

The illegality of any particular provision of this Plan shall not affect the
other provisions thereof, but the Plan shall be construed in all respects as if
such invalid provision were omitted.

16.6   Effect of Mistake

In the event of a mistake or misstatement as to the age, eligibility,
compensation, service or participation of a Member or Beneficiary or the amount
of distributions made or to be made to a Member or Beneficiary or other person,
the Committee shall, to the extent it deems possible, cause to be withheld or
accelerated, or otherwise make adjustment of, such amounts or distribution to
which he or she is properly entitled under the Plan. In the event of any
overpayment by the Plan, a Member or Beneficiary shall be obligated to repay
amounts on demand to the extent of such overpayment.

16.7   Compliance with Federal and State Securities Laws

(a)    With respect to Company Stock held in or distributed from the Trust, the
       Company will take all necessary steps to comply with any applicable
       registration or other requirements of federal or state securities laws
       from which no exemption is available.

(b)    Stock certificates distributed to Members, Beneficiaries, or Spouses may
       bear such legends concerning restrictions imposed by federal or state
       securities laws, and concerning other restrictions and rights under the
       Plan, as the Committee in its discretion may determine.

                                                                              43

<PAGE>

16.8   No Discrimination

Whenever in the administration of the Plan action by the Committee is required
with respect to eligibility or classification of Employees, contributions, or
benefits, such action shall be uniform in nature as applied to all persons
similarly situated, and no such action shall discriminate in favor of Employees
who are Highly Compensated Participants.

16.9   Exclusive Benefit of Members

(a)    All Employer Contributions made pursuant to the Plan shall be held by the
       Trustee in accordance with the terms of the Trust for the exclusive
       benefit of those Employees who are Members under the Plan, such Members'
       Beneficiaries and Spouses, and shall be applied to provide benefits under
       the Plan and to pay expenses of administration of the Plan and the Trust
       to the extent that such expenses are not otherwise paid. At no time prior
       to the satisfaction of all liabilities with respect to such Members,
       Beneficiaries and Spouses shall any part of the Trust (other than such
       part as may be required to pay administration expenses) be used for, or
       diverted to, purposes other than the exclusive benefit of such Members,
       Beneficiaries and Spouses.

(b)    Notwithstanding section 16.9(a)-

       (1)  if an Employer Contribution by the Company or a Participating
            Employer is conditioned upon the deductibility of such contribution
            under section 404 of the Code, then, to the extent the deduction is
            disallowed, the Trustee shall, upon written request of the Company
            or Participating Employer making the contribution, return the
            contribution to the extent disallowed to the Company or
            Participating Employer within one year after the date the deduction
            is disallowed;

       (2)  if an Employer Contribution or any portion thereof is made by the
            Company or a Participating Employer by a mistake of fact, the
            Trustee shall, upon written request of the Company or Participating
            Employer, return the contribution or the portion to the Company or
            Participating Employer within one year after the date of payment to
            the Trustee; and

       (3)  earnings attributable to amounts to be returned to the Company or
            Participating Employer pursuant to paragraph (1) or (2) shall not be
            returned to the Company or Participating Employer, and losses
            attributable to amounts to be returned pursuant to paragraph (1) or
            (2) shall reduce the amounts to be so returned.

16.10  Governing Law

The provisions of the Plan shall be construed, administered, and enforced in
accordance with the laws of Illinois, to the extent such laws are not superseded
by laws of the United States. All Employer Contributions by the Company and
Participating Employers to the Trust shall be deemed to be made in Illinois.

16.11  Change in Control

Notwithstanding any provision of the Plan to the contrary, if a Change in
Control (as defined below) occurs--

                                                                              44

<PAGE>

(a)  each Participant or Inactive Participant who is an Employee on the date the
     Change in Control occurs shall be 100 percent vested in the adjusted
     balance of the Participant's or Inactive Participant's Company Stock and
     Other Investments Accounts;

(b)  no merger, transfer of assets, or other similar transactions involving the
     Plan shall be permitted until all Loans outstanding at the time of the
     Change in Control have been repaid and all shares of Company Stock held in
     a Suspense Account in respect thereof have been released and allocated to
     the Company Stock Accounts of Participants employed by the Company or a
     Participating Employer as of the Change in Control date;

(c)  no other action may be taken pursuant to Article XIII that would have the
     effect of diverting shares of Company Stock held in a Suspense Account to
     the Company Stock Accounts of Participants who are not employees of the
     Company or a Participating Employer as of the Change in Control date;

(d)  if, in connection with the Change in Control, Company Stock held by the
     Plan has been sold for consideration other than securities constituting
     Company Stock, then the date that the Change in Control occurs shall be a
     special Valuation Date and each Member with an Account under the Plan as of
     the date the Change in Control occurs shall be entitled to share in the
     proceeds of such sale in the manner described in section 7.7(b); and

(e)  for the calendar year in which the Change in Control occurs, the Company
     shall make an Employer Contribution to the Account of each Participant who
     is eligible to receive an Employer Contribution pursuant to the terms of
     Section 7.1 (or who would be eligible to receive an Employer Contribution
     under Section 7.1 if the date of the Change in Control were substituted for
     the Anniversary Date under that section); provided, however, that (i) such
     Employer Contribution shall be equal to 2% of the Participant's
     Compensation paid prior to the date of the Change in Control, and (ii) the
     amount of an Employer Contribution to which the Participant becomes
     entitled pursuant to the provisions of Articles 4 and 7 for the calendar
     year in which the Change in Control occurs (without giving effect to this
     section 16.11(e)) shall be reduced by the amount of any Employer
     Contribution made pursuant to this section 16.11(e).

     For purposes of this section, a "Change in Control" shall be deemed to have
     occurred if the event set forth in any one of the following paragraphs
     shall have occurred:

     (1)  any Person is or becomes the Beneficial Owner, directly or indirectly,
          of securities of Northern Trust Corporation (the "Corporation") (not
          including in the securities beneficially owned by such Person any
          securities acquired directly from the Corporation or its affiliates)
          representing 20% or more of the combined voting power of the
          Corporation's then outstanding securities, excluding any Person who
          becomes such a Beneficial Owner in connection with a transaction
          described in clause (i) of paragraph (3) below; or

     (2)  The election to the Board of Directors of the Corporation, without the
          recommendation or approval of two thirds of the incumbent Board of
          Directors of the Corporation, of the lesser of: (A) three directors;
          or (B) directors constituting a majority of the number of directors of
          the Corporation then in office, provided, however, that directors
                                          --------  -------
          whose initial assumption of office is in connection with an actual or
          threatened election contest, including but not limited to a consent
          solicitation, relating to the election of directors of

                                                                              45

<PAGE>

     the Corporation will not be considered as incumbent members of the Board of
     Directors of the Corporation for purposes of this section; or

(3)  there is consummated a merger or consolidation of the Corporation or any
     direct or indirect subsidiary of the Corporation with any other company,
     other than (i) a merger or consolidation which would result in the voting
     securities of the Corporation outstanding immediately prior to such merger
     or consolidation continuing to represent (either by remaining outstanding
     or by being converted into voting securities of the surviving entity or any
     parent thereof), at least 60% of the combined voting power of the
     securities of the Corporation or such surviving entity or any parent
     thereof outstanding immediately after such merger or consolidation, or (ii)
     a merger or consolidation effected to implement a recapitalization of the
     Corporation (or similar transaction) in which no Person is or becomes the
     Beneficial Owner, directly or indirectly, of securities of the Corporation
     (not including in the securities Beneficially Owned by such Person any
     securities acquired directly from the Corporation or its Affiliates)
     representing 20% or more of the combined voting power of the Corporation's
     then outstanding securities; or

(4)  the stockholders of the Corporation approve a plan of complete liquidation
     or dissolution of the Corporation or there is consummated an agreement for
     the sale or disposition by the Corporation of all or substantially all of
     the Corporation's assets, other than a sale or disposition by the
     Corporation of all or substantially all of the Corporation's assets to an
     entity, at least 60% of the combined voting power of the voting securities
     of which are owned by stockholders of the Corporation in substantially the
     same proportions as their ownership of the Corporation immediately prior to
     such sale.

Notwithstanding the foregoing, a "Change in Control" shall not be deemed to have
occurred by virtue of the consummation of any transaction or series of
integrated transactions immediately following which the record holders of the
common stock of the Corporation immediately prior to such transaction or series
of transactions continue to have substantially the same proportionate ownership
in an entity which owns all or substantially all of the assets of the
Corporation immediately following such transaction or series of transactions.

For purposes of the foregoing the following definitions shall apply:

     "Affiliate" shall have the meaning set forth in Rule 12b-2 under Section 12
     of the Exchange Act; "Beneficial Owner" shall have the meaning set forth in
     Rule 13d-3 under the Exchange Act, except that a Person shall not be deemed
     to be the Beneficial Owner of any securities with respect to which such
     Person has properly filed a Form 13-G; "Exchange Act" shall mean the
     Securities Exchange Act of 1934, as amended from time to time; and "Person"
     shall have the meaning given in Section 3(a)(9) of the Exchange Act, as
     modified and used in Sections 13(d) and 14(d) thereof, except that such
     term shall not include (i) the Corporation or any of its Affiliates, (ii) a
     trustee or other fiduciary holding securities under an employee benefits
     plan of the Corporation or any of its subsidiaries, (iii) an underwriter
     temporarily holding securities pursuant to an offering of such securities
     or (iv) a corporation owned, directly or indirectly, by the stockholders of
     the Corporation in substantially the same proportions as their ownership of
     stock of the Corporation.

                                                                              46

<PAGE>

In Witness Whereof, the Company has caused the Northern Trust Employee Stock
Ownership Plan to be executed on its behalf by its duly authorized officer this
21st day of December, 2001.

                                         The Northern Trust Company

                                         By   /s/ Martin J. Joyce, Jr.
                                              ------------------------
                                                 Martin J. Joyce, Jr.
                                                 Senior Vice President

                                                                              47

<PAGE>

                                  Supplement #1

                       Extension of Plan to U.K. Employees

This Supplement #1 to the Plan is made a part of the Plan and supersedes any
provisions thereof to the extent that they are not consistent with this
Supplement. Unless the context clearly implies or indicates to the contrary, a
word, term or phrase used or defined in the Plan is similarly used or defined
for purposes of this Supplement #1.

1.   Purpose and Effect. Effective as of January 1, 1999 (the "U.K. Effective
     ------------------
     Date"), Employees of the Company or a Participating Employer who are
     residents of the United Kingdom ("U.K.") or who are employed under U.K.
     permanent contracts of employment shall be eligible to participate in the
     Plan, subject to the terms of the Plan as modified by this Supplement. Such
     employees are referred to herein as "U.K. Employees," and each U.K.
     Employee who becomes a Participant in the Plan pursuant to this Supplement
     is referred to herein as a "U.K. Participant." Effective for the Plan Year
     beginning January 1, 2002 and Plan Years thereafter, no new U.K. Employees
     shall become eligible to participate in the Plan.

2.   Service, Participation, and Compensation for U.K. Employees. U.K.
     -----------------------------------------------------------
     Employees' service with the Company or an Affiliate prior to the U.K.
     Effective Date shall be credited as Vesting Service pursuant to the
     provisions of section 3.4. U.K. Employees who had completed one year of
     Vesting Service as of the U.K. Effective Date shall become U.K.
     Participants in the Plan retroactive to the U.K. Effective Date (and
     Compensation (as defined below) paid to such U.K. Participants during 1999
     shall be recognized for purposes of making the allocations required under
     section 7.4(c)). For a U.K. Participant, "Compensation" shall mean the base
     salary, statutory sick pay, statutory maternity pay (higher and lower rate)
     and shift allowance paid to a U.K. Participant.

3.   Allocation in Year of Retirement. In addition to the circumstances
     --------------------------------
     described in section 7.1 of the Plan, a U.K. Participant whose employment
     terminates after attainment of age 50 with at least two years of Vesting
     Service and who is entitled to a benefit from one of the Company's U.K.
     tax-approved retirement schemes will share in the allocations described in
     section 7.1 for the Anniversary Date occurring with respect to the Plan
     Year in which employment terminates. Effective for the Plan Year beginning
     January 1, 2002 and Plan Years thereafter, U.K. Participants shall no
     longer be eligible to receive an allocation of Employer Contributions under
     the Plan.

4.   Code Limitations. The following special rules shall apply for U.K.
     ----------------
     Participants:

     (a)  U.K. Participants' compensation (as defined in paragraph (c) below)
          shall be recognized for purposes of section 4.1 of the Plan regarding
          the limit on the maximum deductible contribution under section 404 of
          the Code.

     (b)  U.K. Participants shall be included with all other Participants when
          determining the limit on allocations pursuant to section 7.4(e) of the
          Plan. If reductions in the allocations to Highly Compensated
          Participants are necessary to comply with such limit, then the
          allocations to U.K. Participants who are Highly Compensated
          Participants shall be reduced in the same manner as all other Highly
          Compensated Participants.

     (c)  Pursuant to Treasury regulation section 1.415-2(d)(11)(ii), wages and
          all other payments

                                                                              48

<PAGE>

          of compensation (within the meaning of section 3401(a) of the Code,
          but determined without regard to the location of the employment)
          received by U.K. Participants shall be recognized for all purposes of
          section 7.5(i)(2) of the Plan (i.e., sections 414(q), 415, and 416 of
          the Code).

5.   Cash Dividends Payable to U.K. Participants. Notwithstanding section 11.2
     -------------------------------------------
     of the Plan, cash dividends payable on the Company Stock allocated to a
     U.K. Participant's Company Stock Account initially shall be credited to his
     or her Other Investments Account. Thereafter, the amounts allocated to a
     U.K. Participant's Other Investments Account shall be used to purchase
     Company Stock pursuant to section 5.3 of the Plan.

6.   Diversification of Investments. Sections 2.1(ll)(1) and 2.1(mm)(1) shall
     ------------------------------
     not apply to U.K. Participants. As a result, any diversification elections
     for U.K. Participants shall be effected pursuant to section 7.9(a)(2) and
     no elections may be made pursuant to section 7.9(a)(1), regardless of the
     effective dates in such sections.

7.   Payment of Benefits. Pursuant to section 9.6 of the Plan, all payments of
     -------------------
     benefits under the Plan to or for the benefit of a U.K. Participant shall
     be made in shares of Company Stock, and the value of any partial shares
     shall be made in pounds sterling.

8.   Rollovers. Notwithstanding section 9.8 of the Plan:
     ---------

     (a)  U.K. Participants (and their Beneficiaries) who performed all of their
          service outside of the U.S. will not be eligible to make a direct
          rollover to an eligible retirement plan.

     (b)  U.K. Participants (and their Beneficiaries) who performed some service
          in the U.S. will be eligible to make a direct rollover to an eligible
          retirement plan of only that portion of a distribution which would be
          included in the U.K. Participant's U.S. gross income.

9.   Satisfaction of U.K. Income and Employment Tax Liabilities. If a U.K.
     ----------------------------------------------------------
     Participant receives a distribution from the Plan that, pursuant to U.K.
     law, subjects the Company to an obligation to account for tax under the
     U.K. Pay As You Earn ("PAYE") system, or to withhold or account for similar
     income, employment or other taxes or fees relating to the distribution, the
     Committee shall direct the Trustee to withhold from such distribution an
     amount sufficient to comply with such obligations. If a U.K. Participant
     receives his or her distribution in the form of both cash and Company Stock
     and the amount of cash distributed is not sufficient to allow the Trustee
     to withhold the amount sufficient to comply with such withholding
     obligations, the Trustee shall liquidate all or a portion of the Company
     Stock to be distributed as is necessary to satisfy such withholding
     obligations. To the extent the Committee deems it necessary or appropriate
     under U.K. law, it may require a U.K. Participant to consent to such
     withholding or liquidation of Company Stock prior to receiving a
     distribution, provided that it does so on a uniform and consistent basis.

10.  Conversion U.S. Dollars into U.K. Pounds Sterling. From time to time, it
     -------------------------------------------------
     will be necessary to convert U.S. dollars into U.K. pounds sterling or
     vice-versa to make allocations to U.K. Participants' Accounts, to make
     distributions from such Accounts, to apply certain Code limitations and to
     implement various other Plan provisions with respect to U.K. Participants.
     Such conversions shall take place at the time specified in the Plan for the
     relevant purpose, using the conversion rate specified for such date in the
     Wall Street Journal.

                                                                              49

<PAGE>

11.  No Mandatory Cash Out. Notwithstanding subsection 9.7(b) of the Plan, a
     ---------------------
     U.K. Participant shall not have any amount of the Vested Portion of his or
     her Account distributed to him or her at any time prior to the U.K.
     Participant's Normal Retirement Date or death without the U.K.
     Participant's written consent.

                                                                              50

<PAGE>

                                  Supplement #2

                        Special Rules for Fiserv Members

This Supplement #2 to the Plan is made a part of the Plan and supersedes any
provisions thereof to the extent that they are not consistent with this
Supplement. Unless the context clearly implies or indicates to the contrary, a
word, term or phrase used or defined in the Plan is similarly used or defined
for purposes of this Supplement #2.

1.   Effective Date. December 31, 1998.
     --------------

2.   Application.  This Supplement #2 shall apply to any Member identified in
     -----------
     Exhibits 16.1 and 16.2 of the Payment System Services Agreement dated
     October 20, 1998, between the Company and Fiserv Solutions, Inc. who is
     employed by the Company on December 31, 1998 (each a "Fiserv Member").

3.   Vesting. Each Fiserv Member shall become fully vested in his or her Account
     -------
     as of December 31, 1998.

                                                                              51

<PAGE>

                                  Supplement #3

       Special Rules for Fiserv Members Associated with 2001 Joint Venture

This Supplement #3 to the Plan is made a part of the Plan and supersedes any
provisions thereof to the extent that they are not consistent with this
Supplement. Unless the context clearly implies or indicates to the contrary, a
word, term or phrase used or defined in the Plan is similarly used or defined
for purposes of this Supplement #3.

1.   Effective Date.  July 31, 2001.
     --------------

2.   Application. This Supplement #3 shall apply to any Member identified in
     -----------
     Exhibit 2.02 of the Employee Agreement between the Company and Fiserv
     Solutions, Inc. ("Fiserv") dated June 15, 2001 who is a Participant in the
     Plan on July 31, 2001 and who has a termination date from the Company of
     July 31, 2001 (or who would have had a termination date of July 31, 2001
     had the Member not been on a disability leave on such date) (each a "Fiserv
     Member").

3.   Special Provisions.  The following special provisions shall apply to
     ------------------
     Fiserv Members:

     (a)   Vesting:  Each Fiserv Member shall become fully vested in his or her
           -------
           Account as of July 31, 2001.

     (b)   Employer Contributions: If a Fiserv Member is employed by the Company
           ----------------------
           on July 31, 2001 and remains continuously employed by Fiserv after
           that date through December 31, 2001, then the Fiserv Member shall be
           eligible to receive a prorated Employer Contribution for the 2001
           Plan Year.

                                                                              52

<PAGE>

                                   Schedule A

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------
     Affiliate Name & Acq. Code                    ESOP Earliest Vesting Date
--------------------------------------------------------------------------------------------------------
<S>                                                <C>
O'Hare                                       OH    N/A
Acquired: 05/17/82
Joined Benefits and Payroll: 01/01/88
Pension Merger: 01/01/86
--------------------------------------------------------------------------------------------------------
Woodfield                                    JB    N/A
Acquired: 07/26/82
Joined Benefits and Payroll: 01/01/88
Adopted NT Pension: 01/01/86
--------------------------------------------------------------------------------------------------------
Naperville                                   NP    N/A
Acquired: 10/01/82
Joined Benefits and Payroll: 01/01/88
Adopted NT Pension: 01/01/86
--------------------------------------------------------------------------------------------------------
Oak Brook                                    OB    N/A
Acquired: 06/01/83
Joined Benefits and Payroll: 01/01/88
Adopted NT Pension: 01/01/86
--------------------------------------------------------------------------------------------------------
Hickey/NT Brokerage                          TB    N/A
Acquired: 04/09/84
Joined Benefits and Payroll: 01/07/87
Adopted NT Pension: 01/01/86
--------------------------------------------------------------------------------------------------------
Phoenix National                             AR    N/A
Acquired: 06/06/86
Joined Benefits and Payroll: 01/01/87
--------------------------------------------------------------------------------------------------------
LakeForest                                   EB    N/A
Acquired: 12/31/86
Joined Benefits and Payroll: 01/01/88
Adopted NT Pension: 01/01/88
--------------------------------------------------------------------------------------------------------
Concorde Bank                                AQ    Later of:
Acquired: 06/18/89                                 06/18/89 or DOH
--------------------------------------------------------------------------------------------------------
Berry, Hartell, Evers & Osborne, Inc. (BHE)  AF    Later of:
Acquired: 11/30/89                                 11/30/89 or DOH
--------------------------------------------------------------------------------------------------------
Heritage Trust                               HT    As of 10/01/91:
Acquired: 09/28/90                                 DOH w/Heritage [before or after acquisition (Plan
                                                   Merger 10/01/91)]
--------------------------------------------------------------------------------------------------------
Tri Valley National Bank                     TV    Later of:
(CA) charter                                       06/27/91 or DOH
Acquired: 06/27/91
--------------------------------------------------------------------------------------------------------
Trust Services of America                    TS    Later of:
Acquired: 01/31/92                                 01/31/92 or DOH
Joined Benefits and Payroll: 02/1/92
--------------------------------------------------------------------------------------------------------
</TABLE>

                                                                              53

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------

       Affiliate Name & Acq. Code                             ESOP Earliest Vesting Date

--------------------------------------------------------------------------------------------------------
<S>                                                  <C>
Hazlehurst & Assoc.                          HA      DOH w/Hazlehurst (before or after acquisition)
Acquired: 04/15/94
Joined Benefits and Payroll: 01/01/96
--------------------------------------------------------------------------------------------------------
Vero Beach                                   VB      Later of:
Acquired: 03/31/95                                   03/31/95 or DOH
Joined Benefits and Payroll: 01/01/96
Pension Merger: 01/01/96
--------------------------------------------------------------------------------------------------------
Tanglewood Bank                              TW      DOH w/Tanglewood (before or after acquisition)
Acquired: 07/31/95
Joined Benefits and Payroll: 01/01/96
--------------------------------------------------------------------------------------------------------
Bent Tree National Bank                      BT      DOH w/Bent Tree (before or after acquisition)
Acquired: 11/15/96
Joined Benefits and Payroll: 01/01/97
--------------------------------------------------------------------------------------------------------
Trust Bank of Colorado                       DN      Later of:
Acquired: 5/15/98                                    5/15/98 or DOH
Joined Benefits and Payroll: 7/01/98
--------------------------------------------------------------------------------------------------------
Northern Trust Company of Connecticut/       RC      DOH w/NTCC
Northern Trust Global Advisors, Inc.                 (before or after acquisition)
Acquired:  10/31/95
Joined Benefits and Payroll:  04/01/00
--------------------------------------------------------------------------------------------------------
Carl Domino Associates L.P.                  CD      DOH w/Domino
Assets Acquired:  05/01/2000
Joined Benefits and Payroll:  07/01/2000
--------------------------------------------------------------------------------------------------------
Purchase of Master Trust Services            MT
Unit of FNBC:  01/04/85                              N/A
--------------------------------------------------------------------------------------------------------
FCNBD Agreement Dated 10/03/96:              FC      Service Date w/FCNBD
Applicable to FCNBD hires to Northern from
9/30/96 through 9/30/97
--------------------------------------------------------------------------------------------------------
ANB IMC                                      AI      First Chicago NBD Service Date
Acquired:  12/31/97                                  (before or after acquisition)
Joined Benefits and Payroll:  01/01/98
--------------------------------------------------------------------------------------------------------
</TABLE>

DOH = Date of Hire

                                                                              54

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