Document:

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                                                                   EXHIBIT 10(C)

DISNEY SEVERANCE PAY PLAN

SECTION 1. - INTRODUCTION

      The Walt Disney Company ("Disney") has adopted this Disney Severance Pay
Plan (hereinafter "Plan") effective as of May 15, 2001. The Plan provides
severance benefits under the circumstances described below to eligible employees
(referred to as "Eligible Employees") of Disney and certain of its subsidiaries
and Affiliates (collectively the "Company").

SECTION 2. - DEFINITIONS AND INTERPRETATIONS

      The following definitions and interpretations of important terms apply to
the Plan:

      (a) Affiliate. A company or business organization which is affiliated with
the Company as defined under Securities and Exchange Commission Rule 144(a)(1),
as amended from time to time.

      (b)   COBRA.  Continuation  health care coverage under the  Consolidated
Omnibus Budget Reconciliation Act of 1985.

      (c) Company. Disney and any subsidiary or other Controlled Group Member of
Disney that, with the approval of the Plan Administrator and subject to such
conditions as the Plan Administrator may impose, adopts the Plan. Any subsidiary
or other Controlled Group Member will be considered to have adopted the Plan
with the approval of the Plan Administrator if it takes significant action that
is consistent with the adoption of the Plan, Disney is aware of the action, and
neither objects in writing to the action. The Plan Administrator or a subsidiary
or Controlled Group Member may terminate the subsidiary or Controlled Group
Member's participation in the Plan by written notice to each other. An entity
will cease to be part of the Company, and will cease to participate in the Plan,
after the date on which it ceases to be a Controlled Group Member.

      (d) Controlled Group Member. A member of a controlled group of
corporations of which Disney is a member, or an unincorporated trade or business
that is under common control with Disney, all as determined under the Sections
414(b) and 414(c) of the Internal Revenue Code.

      (e)   Disney.  The Walt Disney Company.

      (f)   Effective Date.  May 15, 2001.

      (g)   Eligible Employee.  As of his or her Layoff Date, an Employee

            (i)   who is employed in a department or origin identified by the
                  Company as eligible for this Plan;

            (ii)  who does  not have a  personal  services  contract  with the
                  Company; and

            (iii) who has not previously agreed either orally or in writing to
                  waive eligibility for this Plan, as determined by the Plan
                  Administrator based on Company records.

      (h) Employee. Any person employed by the Company on or after the Effective
Date as a regular, full-time employee on a payroll maintained in the United
States but excluding any employee included in a unit of employees covered by a
collective bargaining agreement between the Company and employee representatives
unless such bargaining agreement provides for his or her inclusion hereunder. If
a collective bargaining agreement does provide for inclusion of a represented
employee, his or her participation hereunder will be subject to such

<PAGE>

modification in Plan terms as may be provided in the applicable collective
bargaining agreement.

      If a person is not treated by the Company as an employee, as conclusively
evidenced by failure to withhold taxes from payment made for services rendered,
then such person is not considered an Employee under this Plan even if the
person is determined to have been a common law employee of the Company by a
court of law, a governmental agency or by any other body or means.

      (i) Employment Position. The classification of an Employee by job
responsibility as either a Salaried or an Hourly Employee, a Manager or a
Director or Above. An Employee's Employment Position will be determined by the
Plan Administrator in its sole and absolute discretion, taking into
consideration the following definitions:

            Salaried  or  Hourly  Employee:  An  Employee  who  is  neither  a
            Director or Above or a Manager.

            Manager:  An  Employee  with a title of manager or with a title or
            job responsibility comparable to that of a manager.

            Director or Above: An Employee with a title of director or higher or
            with a title or job responsibility comparable to that of a director
            or higher position.

      (j)  ERISA.  The  Employee   Retirement  Income  Security  Act of 1974,
as amended from time to time.

      (k) Layoff. The involuntary termination of employment of an Eligible
Employee from the Company. In no event will an involuntary termination of
employment be considered a Layoff if the involuntary termination of employment
is due to Reason.

      (l)   Layoff Date.  An Eligible  Employee's  last day of  employment  on
account of his or her Layoff.

      (m) Participant. An Eligible Employee who meets the requirements for
benefits under the Plan, as set forth in Section 3 of the Plan (entitled "How Do
You Become Eligible for Benefits?") An individual will cease being a Participant
once payment of all severance pay and other benefits due to such individual
under the Plan has been completed and no person will have any further rights
under the Plan with respect to such former Participant.

      (n)   Plan  Administrator.  The Senior Vice President Human Resources of
Disney,  or any  successor  appointed  by the  President  or  chief  operating
officer of Disney.

      (o)   Reason.  Any one of the  following  reasons for the  discharge  or
other involuntary termination of an Employee from employment with the Company:

            (i)  any act or omission by the Employee  resulting or intended to
                 result in personal gain at the expense of the Company;

           (ii)  the  performance  by the Employee of his or her employment
                 duties in a manner   deemed   by  the   Company   to  be  in
                 any way unsatisfactory;

          (iii)  the improper  disclosure by the Employee of proprietary or
                 confidential information or trade secrets of the Company or any
                 Affiliate;

           (iv)  misconduct by the Employee, including, but not limited to
                 fraud, intentional violation of or negligent disregard for the

<PAGE>

                 rules and procedures of the Company (including a violation of
                 the Company's business code of conduct), dishonesty,
                 insubordination, theft or other illegal conduct, violent acts
                 or threats of violence, or possession of alcohol or controlled
                 substances on the property of the Company, or any other
                 terminable offense under the Company's policies and practices;

            (v)  the receipt of an offer of employment by the Employee from a
                 Successor Employer to commence promptly following his or her
                 termination of employment by the Company, whether the Eligible
                 Employee accepts the position or not;

           (vi)  any other involuntary termination of an Employee's employment
                 by the Company that does not constitute a Layoff, as
                 determined by the Company in its sole and absolute discretion.

            For purposes of the Plan, the determination of whether a discharge
      or other release from employment is for Reason will be made by the Plan
      Administrator, in its sole and absolute discretion, and such determination
      will be conclusive and binding on the affected Employee.

     (p)   Successor Employer.  Successor Employer means any entity that:

            (i)   assumes operations or functions formerly carried out by the
                  Company (such as the buyer of a facility or any entity to
                  which a Company operation or function has been outsourced);

           (ii)   is an Affiliate of Disney; or

          (iii)   makes a job offer at the request of the Company (such as a
                  joint venture of which Disney or an Affiliate is a member).

      (q)   WARN Act.  Worker Adjustment and Retraining Notification Act.

      (r) Weekly Base Pay. An Eligible Employee's weekly rate of salary or wages
as of his or her Layoff Date, as reflected in the records maintained by the
Company's payroll department, and will (i) include any salary reduction
contributions made on his or her behalf to any plan of the Company, or pursuant
to a collective bargaining agreement, under Section 125 or 401(k) of the
Internal Revenue Code of 1986, and (ii) exclude bonuses, overtime pay, temporary
assignment shift differentials, incentive compensation, Company contributions to
or benefits paid from any employee retirement or welfare plan (other than salary
reduction contributions to such a plan), and other additional compensation or
benefits provided by the Company and, except as provided below, commissions.

           If a significant portion of an Eligible Employee's compensation is
sales-based commissions, as determined by the Plan Administrator in its sole and
absolute discretion, then the Employee's Weekly Base Pay will include any
commissions actually paid (and not merely accrued) to him or her by the Company
during the last 24 full calendar month period of his or her last continuous
period of employment with the Company prior to his or her Layoff Date, divided
by 104. If an Eligible Employee's last continuous period of employment with the
Company is less than 24 full calendar months, then the amount to be included in
his or her Weekly Base Pay is the amount of sales-based commissions actually
paid (and not merely accrued) to him or her by the Company during the number of
full calendar months of his or her last continuous period of employment with the
Company prior to his or her Layoff Date, divided by the number of weeks within
those full calendar months.

      (s) Year of Service. The number of consecutive full 12 month periods of an
Eligible Employee's employment with the Company and any Controlled Group Member
since his or her most recent hire date in which the Eligible Employee is paid by
the Company or a Controlled Group Member for the performance of full-time

<PAGE>

services. Years of Service will be measured in full years and partial Years of
Service will be disregarded. If the Company has a bridging of service policy,
any prior employment recognized for the Eligible Employee under that policy will
be recognized under this Plan and added to the Eligible Employee's most recent
period of employment to determine Years of Service except that Years of Service
for which the Eligible Employee previously received severance pay from the
Company or any Controlled Group Member pursuant to this Plan or any other
severance or separation program shall be disregarded.

SECTION 3. - HOW DO YOU BECOME ELIGIBLE FOR BENEFITS?

      (a)   Eligibility.  You  become  eligible  for  benefits  under the Plan
(i.e.,  you become a "Participant")  if you are an Eligible  Employee and your
employment termination is a Layoff.

      (b) Changed Decisions. The Company has the right to cancel a Layoff or
reschedule a Layoff Date at any time before your employment terminates. You will
not become eligible for benefits under this Plan if your Layoff Date is
cancelled or if you voluntarily terminate employment before the Layoff Date
specified by the Company.

SECTION 4. - WHAT ARE YOUR BENEFITS UNDER THE PLAN?

      If you are eligible for benefits under the Plan (i.e., you become a
Participant), your benefits under the Plan will be as follows:

      (a) Severance Pay.You will be entitled to receive severance pay under the
Plan based on your Employment Position and Years of Service as of your Layoff
Date, and which will be equal to the number of weeks determined in accordance
with whichever of the following schedules is applicable to you, multiplied by
your Weekly Base Pay:
<TABLE>
<CAPTION>
<S>   <C>                              <C>

Salaried or Hourly Employee

      -------------------------------------------------------------------
      Years of Service                  Severance Pay

      -------------------------------------------------------------------
      -------------------------------------------------------------------
      Less than 1 year                  2 weeks

      -------------------------------------------------------------------
      -------------------------------------------------------------------
      1 - 4 years                       4 weeks

      -------------------------------------------------------------------
      -------------------------------------------------------------------
      5 or more years                   1  week   for   each   Year   of
                                        Service,  to  a  maximum  of  52
                                        weeks
      -------------------------------------------------------------------

Manager

      -------------------------------------------------------------------
      Years of Service                  Severance Pay

      -------------------------------------------------------------------
      -------------------------------------------------------------------
      Less than 1 year                  2 weeks
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>   <C>                              <C>
      -------------------------------------------------------------------
      -------------------------------------------------------------------
      1 - 2 years                       4 weeks

      -------------------------------------------------------------------
      -------------------------------------------------------------------
      3- 4 years                        6 weeks

      -------------------------------------------------------------------
      -------------------------------------------------------------------
      5 or more years                   4  weeks  plus 1 week  for  each
                                        Year of  Service,  to a  maximum
                                        of 52 weeks
      -------------------------------------------------------------------

Director or Above

      -------------------------------------------------------------------
      Years of Service                  Severance Pay

      -------------------------------------------------------------------
      -------------------------------------------------------------------
      Less than 2 years                 4 weeks

      -------------------------------------------------------------------
      -------------------------------------------------------------------
      2 - 3 years                       8 weeks

      -------------------------------------------------------------------
      -------------------------------------------------------------------
      4 or more years                   4 weeks  plus 2 weeks  for  each
                                        Year of  Service,  to a  maximum
                                        of 52 weeks
      -------------------------------------------------------------------
</TABLE>

      (b) Paid Leave in Lieu of Notice. If you become entitled to severance pay
under Section 4(a) on account of Layoff subject to WARN, then, to the extent you
have been given less than the WARN-required advance notice of the date your
active services will actually terminate, you will be given a Paid Leave in Lieu
of Notice for the balance of the WARN-required advance notice period, as
follows:

          (i)     During your Paid Leave in Lieu of Notice, you will be an
                  inactive employee but you will be entitled to the same benefit
                  plan benefits and participation rights to which you would have
                  been entitled had your active employment continued, except
                  that you will not accrue any paid leave, paid vacation days or
                  additional severance benefits under this Plan.

         (ii)     If you die during a Paid Leave in Lieu of Notice, your paid
                  leave will end and the full and partial weeks of Weekly Base
                  Pay that you would have received during the balance of the
                  paid leave will be paid to your estate in a lump sum. All
                  other Paid Leave in Lieu of Notice benefits will stop on the
                  day you die and your estate will not be entitled to any
                  additional severance pay under this Plan.

        (iii)     When your Paid Leave in Lieu of Notice ends, you will then be
                  entitled to Severance Pay under Section 4(a), but the amount
                  of Severance Pay otherwise payable will be reduced by the cash
                  wages you received for your paid leave.

<PAGE>

The WARN-required advance notice period is generally 60 days, but under certain
unusual circumstances, may be less.

      (c)   Outplacement  Support  Benefits.  The  Company  in  its  sole  and
absolute discretion may arrange to provide you with, and you may elect to
utilize, outplacement counseling services from an outplacement firm selected by
the Company. You must complete any outplacement program provided to you within
one year after your Layoff Date. The Company will pay the full cost of any such
outplacement services provided to you.

      (d)   Stay  Bonus.  In  certain  cases,  you may be  asked  to stay  with
the Company for an extended period prior to your Layoff Date. In such case, the
Company may elect, in its sole discretion, to offer you a stay bonus to induce
you to remain at work until your Layoff Date. Any such offer by the Company will
be made by means of a written stay bonus offer and may contain such
contingencies or variations in Plan terms as the Company may determine. For
example, a stay bonus may include increased severance pay or may be contingent
upon your execution of an agreement releasing the Company from liability for any
and all claims specified in the agreement.

      (e)   Other Benefits.

           (i)    Educational Reimbursement. Your Layoff will not affect your
                  eligibility for tuition reimbursement under the Company's
                  Educational Reimbursement Program with respect to any class
                  that you successfully complete and that you began attending
                  with Company approval before your Layoff Date.

          (ii)    Relocation. You will not have to repay any relocation costs
                  you may have otherwise owed the Company on account of
                  premature termination of employment under a relocation
                  agreement previously entered into between you and the Company.

      (f) Integration With Other Payments. If you are a Participant (that is,
you receive benefits under the Plan), you will not be entitled to receive any
other severance, separation, notice or termination payments on account of your
employment with the Company or any other Controlled Group Member. In addition,
benefits under this Plan are not intended to duplicate such benefits as workers'
compensation wage replacement benefits, disability benefits,
pay-in-lieu-of-notice, severance pay, or similar benefits under other benefit
plans, severance programs, employment contracts, or applicable laws, such as the
WARN Act and the Paid Leave In Lieu of Notice provisions of Section 4(b). Should
such other benefits be payable, benefits payable to a Participant under this
Plan will be offset or, alternatively, benefits previously paid under this Plan
will be treated as having been paid to satisfy such other benefit obligations.
In either case, the Plan Administrator, in its sole discretion, will determine
how to apply this provision and may override other provisions in this Plan in
doing so.

      (g) Taxes. Employment and income taxes will be deducted or withheld from
benefits under the Plan to the extent required by law, as determined by the
Company.

SECTION 5. - HOW AND WHEN WILL AMOUNTS BE PAID?

      Any severance pay payable under Section 4(a) above will be paid to you in
a single lump sum payment as soon as practicable following your Layoff Date.

      If you received your severance pay under Section 4(a) and you are rehired
by the Company or any Controlled Group Member prior to the expiration of your
Severance Period, you will be required to repay to the Company a portion of your
severance pay. The portion of your severance pay that you will be required to

<PAGE>

repay will be equal to your Weekly Base Pay multiplied by the number of weeks
remaining in your Severance Period from and after your date of rehire by the
Company or any Controlled Group Member. Your "Severance Period" is the number of
weeks used to calculate your severance pay, as specified in the schedule
applicable to you under Section 4(a) above.

      Any other benefits provided to you under Section 4(c) through 4(e) will be
provided to you at the time and by the means specified in such Sections. If you
are rehired by the Company or any Controlled Group Member, you will not be
required to repay any benefits you received under Sections 4(c) through 4(e),
but any provisions of a relocation agreement entered into between you and the
Company which are still applicable will continue to apply during the period of
your rehire and at your later termination of employment.

SECTION 6. - AMENDMENT AND TERMINATION

      Disney, acting through its President in its nonfiduciary capacity as
settlor of the Plan, reserves the right, in its sole and absolute discretion, to
terminate, amend or modify the Plan, in whole or in part, at any time and for
any reason, prospectively or retroactively and with or without advance notice.
If the Plan is terminated, amended or modified, your right to participate in, or
receive benefits under, the Plan may be changed or eliminated.

      Neither the establishment of the Plan, nor any modification thereof, nor
the payment of any benefits hereunder, will be construed as giving to any
Participant, Employee (or any beneficiary of either), or other person any legal
or equitable right against the Company or any officer, director or employee
thereof, and in no event will the terms and conditions of employment by the
Company of any Employee be modified or in any way affected by the Plan. This
Plan does not give any Employee any vested right to Plan benefits.

      No individual may become entitled to additional benefits or other rights
under the Plan after the Plan is terminated.

SECTION 7. - MISCELLANEOUS PROVISIONS

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

      (b) Governing Law. This Plan is an employee welfare benefit plan that is
regulated by ERISA, a federal law. To the extent, if any, that state laws apply
to the Plan, California law shall apply (except to the extent it would require
use of another state's law).

      (c) Severability. Should any provisions of the Plan be deemed or held to
be unlawful or invalid for any reason, the balance of the Plan shall remain in
effect, unless it is amended or terminated as provided in Section 6.

      (d) Incompetency. If the Plan Administrator finds that a Participant is
unable to care for his or her affairs because of illness or accident, then
benefits payable hereunder, unless claim has been made therefor by a duly
appointed guardian, committee, or other legal representative, may be paid in
such manner as the Plan Administrator will determine, and will constitute a
complete discharge of all liability for any payments or benefits to which such
Participant was or would have been otherwise entitled under the Plan.

      (e) Assignment and Alienation. Except as required by law, the benefits
payable under this Plan will not be subject to alienation, transfer, assignment,
garnishment, execution or levy of any kind, and any attempt to cause any
benefits to be so subjected will not be recognized.

      (f) Plan Not a Contract of Employment. Nothing contained in the Plan will

<PAGE>

be held or construed to create any liability upon the Company to retain any
Employee in its service. All Employees will remain subject to discharge or
discipline to the same extent as if the Plan had not been put into effect.
Nothing in this Plan shall preclude the Company from terminating an Employee for
any reason or no reason or preclude a person from being or continuing to be an
at-will employee.

      (g) Overpayments. If any overpayment is made under the Plan for any
reason, the Plan Administrator will have the right to recover the overpayment.
The Participant shall cooperate fully with the Plan and return any overpayment.

SECTION 8. - WHAT ELSE DO YOU NEED TO KNOW ABOUT THE PLAN?

(a)   Claim Procedure

      If you are a Participant in the Plan, you will automatically receive any
benefits set forth under Section 4 of the Plan for which you are entitled. If
you feel you have not been provided with all benefits to which you are entitled
under the Plan, you may file a written claim with the Plan Administrator with
respect to your rights to receive benefits from the Plan. You will be informed
of the Plan Administrator's decision with respect to your claim within 90 days
after it is filed. Under special circumstances, the Plan Administrator may
require an additional period of not more than 90 days to review your claim. If
this occurs, you will be notified in writing as to the length of the extension,
the reason for the extension, and any other information needed in order to
process your claim.

      If your claim is denied, in whole or in part, you will be notified in
writing of the specific reason for the denial, the exact Plan provision on which
the decision was based, what additional material or information is relevant to
your claim, and what procedure you should follow to get your claim reviewed
again. If you are not notified within the 90-day (or 180-day, if so extended)
period, you may consider your claim to be denied. In either case, you then have
60 days to appeal the decision to the Plan Administrator.

      Your appeal must be submitted in writing. You may submit a written
statement of issues and comments.

      A decision as to your appeal will be made within 60 days after the appeal
is received. Under special circumstances, the Plan Administrator may require an
additional period of not more than 60 days to review your appeal. If this
occurs, you will be notified in writing as to the length of the extension, not
to exceed 120 days from the day on which your appeal was received.

      If your appeal is denied, in whole or in part, you will be notified in
writing of the specific reason for the denial and the exact Plan provision on
which the decision was based. The decision on your appeal will be final and
binding on all parties and persons affected thereby. If you are not notified
within the 60-day (or 120-day, if extended) period you may consider your appeal
as denied.

(b)  Plan Interpretation and Benefit Determination

      The Plan is administered and operated by the Plan Administrator, who has
complete authority, in such person's sole and absolute discretion, to construe
the terms of the Plan (and any related or underlying documents or policies), to
interpret applicable law, to make findings of fact and to determine the
eligibility for, and amount of, benefits due under the Plan to Participants or
any persons claiming benefits derivatively through them. All such
interpretations and determinations of the Plan Administrator (whether of fact or
law) will be final and binding upon all parties and persons affected thereby. If
challenged in a legal proceeding, the Plan Administrator's interpretations and
determinations will be reviewed under the most deferential abuse of discretion

<PAGE>

standard of review.

      If, due to errors in drafting, any Plan provision does not accurately
reflect its intended meaning, as demonstrated by consistent interpretations or
other evidence of intent, or as determined by the Plan Administrator in its sole
and absolute discretion, the provision shall be considered ambiguous and shall
be interpreted by the Plan Administrator in a fashion consistent with its
intent, as determined in the sole and absolute discretion of the Plan
Administrator.

      This Section 8(b) may not be invoked by you or any person to require the
Plan to be interpreted in a manner inconsistent with its interpretation by the
Plan Administrator.

      (c)   Your Rights Under ERISA

      As a Participant in the Plan, you are entitled to certain rights and
protections under ERISA. ERISA provides that all Plan Participants will be
entitled to:

      (i)   examine, without charge, at the Plan  Administrator's office, and at
            other specified locations, all Plan documents; and

     (ii)   obtain copies of all Plan documents upon written request to the Plan
            Administrator, who may make a reasonable charge for the copies.

      In addition to creating rights for Plan Participants, ERISA imposes duties
upon the people who are responsible for the operation of an employee benefit
plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a
duty to do so prudently and in the interest of you and other Plan Participants
and beneficiaries. No one, including your Company or other person, may fire you
or otherwise discriminate against you in any way to prevent you from obtaining a
benefit under this Plan or exercising your rights under ERISA. If your claim for
a welfare benefit is denied in whole or in part, you must receive a written
explanation of the reason for the denial. Within certain time limits specified
under Section 8(a) (Claim Procedure), you have the right to have the Plan review
and reconsider your claim. Under ERISA, there are steps you can take to enforce
the above rights.

      For instance, if you request materials from the Plan and do not receive
them within 30 days, you may file suit in a federal court. In such a case, the
court may require the Plan Administrator to provide the materials and pay you up
to $110 a day until you receive the materials, unless the materials were not
sent because of reasons beyond the control of the Plan Administrator.

      If you have a claim for benefits hereunder which is denied or ignored, in
whole or in part, you may file suit in a state or federal court. If it should
happen that Plan fiduciaries misuse the Plan's money, or if you are
discriminated against for asserting your rights, you may seek assistance from
the U.S. Department of Labor, or you may file a suit in a federal court. The
court will decide who should pay court costs and legal fees. If you are
successful, the court may order the person you have sued to pay these costs and
fees. If you lose, the court may order you to pay these costs and fees, for
example, if it finds your claim is frivolous.

      If you have any questions about the Plan, you should contact the Plan
Administrator. If you have any questions about this statement or about your
rights under ERISA, you should contact the nearest office of the Pension and
Welfare Benefits Administrator, U.S. Department of Labor, listed in the
telephone directory or the Division of Technical Assistance and Inquiries,
Pension and Welfare Benefits Administration, U.S. Department of Labor, 200
Constitution Avenue, N.W., Washington, D.C. 20210. You may also obtain certain
publications about your rights and responsibilities under ERISA by calling the

<PAGE>

publications hotline of the Pension and Welfare Benefits Administration.

<TABLE>
<CAPTION>
<S>                                <C>

(d)   Other Important Facts

OFFICIAL NAME OF THE PLAN:          Disney Severance Pay Plan
SPONSOR:                            The Walt Disney Company
                                    500 South Buena Vista Street
                                    Burbank, CA  91521
EMPLOYER IDENTIFICATION
NUMBER (EIN):                       95-4545390
PLAN NUMBER:                        513
TYPE OF PLAN:                       Employee Welfare Severance Benefit Plan
END OF PLAN YEAR:                   December 31
TYPE OF ADMINISTRATION:             Employer Administered
PLAN ADMINISTRATOR:                 Senior Vice President Human Resources
                                    The Walt Disney Company
                                    500 South Buena Vista Street
                                    Burbank, CA  91521
                                    (818) 560-1000
EFFECTIVE DATE:                     May 15, 2001
</TABLE>

      The Plan Administrator keeps records of the Plan and is responsible for
the administration of the Plan. The Plan Administrator will also answer any
questions you may have about the Plan.

      Service of legal process may be made upon the General Counsel of The Walt
Disney Company at the address specified above.

      All benefits under the Plan are paid out of the general assets of the
Company. The Plan is not funded and has no assets.<PAGE>

                                                                   EXHIBIT 10(d)

                     ABC, INC. SAVINGS & INVESTMENT PLAN
                         (September 1, 2001 Restatement)

                                    PREAMBLE

            This document amends and restates in its entirety the ABC, Inc.
Savings & Investment Plan (the "Plan"), effective as of September 1, 2001. The
most recent previous restatement of the Plan was effective as of April 1, 1998.

            The purposes of the Plan are to provide eligible employees with
opportunities for (i) convenient and regular personal savings; (ii) sharing in
contributions by the Company; and (iii) receiving benefits from the Fund, based
on the contributions by the Company and the Member and the performance of the
Fund's investments.

            Except as otherwise specifically provided herein, this restatement
shall apply only to contributions to the Plan, and the operation of the Plan,
from and after September 1, 2001. The operation of the Plan before September 1,
2001, shall be determined under the applicable instruments then in effect,
except as otherwise provided herein.

            In general, the Plan as in effect before the effective date of any
amendment shall continue to apply to those who terminated employment before such
date. In no event shall any amendment (including any amendment made by this
restatement) cause a Member's accrued benefit under the Plan to be less on the
date the amendment was adopted (the "Amendment Date") than it was immediately
before the Amendment Date.

            The provisions of Articles I through XVII of the Plan are modified
by the provisions of the Schedules attached to the Plan. To the extent that the
provisions of the Schedules are inconsistent with the provisions of Articles I
through XVII of the Plan, the provisions of the Schedules shall supersede the
conflicting provisions in Articles I through XVII.

            Effective September 1, 2001 (except to the extent that a particular
provision of the Plan or the Schedule of Effective Dates specifies a different
effective date), the Plan is hereby amended and restated to read in its entirety
as follows:

ARTICLE I:  DEFINITIONS AND CONSTRUCTION

1.01 Definitions. For purposes of the Plan, unless a different meaning is
plainly required by the context or is expressly provided, the following words
and phrases, when used in capitalized form in the Plan, shall be defined as
follows:

       (a) "Account" - a Member's After-Tax Contribution Account, Pre-Tax
Contribution Account, Company Matching Account, and, if applicable, Old Company
Matching Account, maintained in accordance with Section 7.07.

       (b)  "Affiliate" -

            (1)   a member of a controlled  group of corporations of which the
Company is a member, as determined under Section 414(b) of the Code;

            (2) an unincorporated trade or business that is under common control
with the Company, as determined under Section 414(c) of the Code;

            (3)   a member of any  affiliated  service group that includes the
Company, as determined under Section 414(m) of the Code;

<PAGE>

            (4) except to the extent otherwise provided in Treasury Regulations,
a leasing organization with respect to the periods of service performed by an
individual who is a leased employee, within the meaning Section 414(n) of the
Code, with respect to the Company or an Affiliate (determined without regard to
this paragraph (4)); and

            (5) any entity that is required to be aggregated with the Company
pursuant to Treasury Regulations under Section 414(o) of the Code;

provided that an entity described in this Section shall not be considered an
Affiliate during the period preceding the date on which it becomes, or after the
date on which it ceases to be, an Affiliate within the meaning of this Section.

       (c) "After-Tax Contributions" - Member contributions made in accordance
with Section 5.02 (or any predecessor thereof).

       (d) "After-Tax Contribution Account" - the bookkeeping account,
maintained in accordance with Section 7.07, that reflects the current value of
the Member's After-Tax Contributions.

       (e) "Alternate Payee" - an alternate payee within the meaning of Section
414(p)(8) of the Code and Section 206(d)(3)(K) of ERISA.

       (f) "Beneficiary" - a person to whom a death benefit is payable in
accordance with Article XII.

       (g) "Board of Directors" or "Board" - the Board of Directors of the
Corporation (or the Executive Committee of the Board of Directors) as
constituted from time to time.

       (h) "Break in Service" - in the case of a Full-Time Employee, the period
following a Severance from Service and preceding reemployment by the Company or
an Affiliate; and in the case of a Part-Time Employee, any Computation Period
during which a Part-Time Employee does not complete at least 501 Hours of
Service.

       (i) "Code" - the Internal Revenue Code of 1986, as from time to time
amended.

       (j)  "Committee"  - the  Employee  Benefits  Committee  provided for in
Section 13.01.

       (k)  "Common Stock" - the common stock of Disney.

       (l) "Company" - the Corporation and any subsidiary or affiliate of the
Corporation that, with the approval of the Board of Directors and subject to
such conditions as the Board of Directors may impose, adopts the Plan; provided
that an entity shall cease to be part of the Company, and shall cease to
participate in the Plan, after the date on which it ceases to be a member of the
controlled group of corporations that includes the Corporation, as determined
under Section 414(b) of the Code. An entity will be considered to have adopted
the Plan with the approval of the Board of Directors if it takes significant
action that is consistent with the adoption of the Plan, the Board or Committee
is aware of the action, and neither objects to the action.

       (m) "Company Matching Account" - the bookkeeping account, maintained in
accordance with Section 7.07, that reflects the current value of the Company
Matching Contributions made with respect to the Member on or after the Merger
Date.

       (n) "Company Matching Contribution" - contributions made to the Plan by

<PAGE>

the Company pursuant to Section 5.04 (or any predecessor thereof).

       (o) "Compensation" - the amount paid by the Company to a Member who is an
Eligible Employee, determined in accordance with Article III.

       (p) "Computation Period" - the Plan Year. Notwithstanding the foregoing,
solely for purposes of Section 2.01, the Computation Period shall be, initially,
the 12-consecutive-month period beginning on the first day for which the
Employee is entitled to be credited with an Hour of Service described in Section
1.01(cc)(1)(i) (the "Employment Commencement Date"), and thereafter shall be the
Plan Year (beginning with the Plan Year that includes the first anniversary of
his Employment Commencement Date); provided that, solely for purposes of Section
2.01, an Employee who is credited with 1,000 Hours of Service in both the
initial Computation Period and in the Plan Year that includes the first
anniversary of his Employment Commencement Date shall be credited with two years
of Service.

       (q)  "Corporation" - ABC, Inc., and any successor thereto.

       (r) "Deferred Retirement Date" - in the case of a Member who is employed
by the Company or an Affiliate after his Normal Retirement Date, the first day
of the month coincident with or next following his Severance from Service.

       (s) "Disabled" - the Member's continuous inability, because of sickness
or accident, to engage in any and every duty of his occupation.

       (t)  "Disney" - The Walt Disney Company, a Delaware Corporation.

       (u)  "Distribution  Date"  - the  date  as of  which  a  withdrawal  or
distribution is made hereunder.

       (v) "Eligible Employee" - an Employee who is a regular Full-Time Employee
of the Company or a regular Part-Time Employee of the Company and who is
remunerated in U.S. currency, except that an individual described by any of the
following paragraphs shall not be an Eligible Employee:

            (1) an Employee of the Company who is represented by a union unless
the union and the Employer have entered into a collective bargaining or other
agreement that provides that the Employee shall participate in the Plan; or

            (2) an Employee of the Company if at the time of the adoption of the
Plan by the Employer, or thereafter, the Employer elects to exclude some or all
employees described in Section 410(b)(3)(C) of the Code and the Employee is
excluded from the Plan by reason of such election; or

            (3)   a casual employee; or

            (4) an individual who is hired for what is intended by the Company
to be a temporary period for a position in connection with a special event, such
as Olympics coverage or Presidential election coverage; or

            (5) an individual who is hired in a position for a specific prime
time program or series produced by the Entertainment Division of the ABC
Television Network; or

            (6) an individual who is employed by the Company pursuant to an
agreement that provides that the individual shall not be eligible to participate
in the Plan; or

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

<PAGE>

            (8)   an Employee  who is an  Employee by reason of being  treated
as a "leased  employee"  of the Company  pursuant to Section  414(n) or (o) of
the Code; or

            (9) an Employee whose basic compensation for services on behalf of
the Company is not paid directly by the Company.

Notwithstanding the provisions of paragraphs (4) and (5) of this Section
1.01(v), an Employee described in either of said paragraphs shall be treated as
an Eligible Employee to the extent that the terms of a collective bargaining
agreement to which the Company is a party require the Employee to be treated as
an Eligible Employee. Expiration of a collective bargaining agreement shall not
by itself affect an Employee's status as an Eligible Employee pending execution
of a new collective bargaining agreement.

       (w) "Employee" - a person who is an employee of the Company or an
Affiliate, including a "leased employee" (within the meaning of Section 414(n)
or (o) of the Code).

       (x)  "Employer" - the  Corporation  or a subsidiary or affiliate of the
Corporation that is part of the Company.

       (y) "ERISA" - the Employee Retirement Income Security Act of 1974, as
from time to time amended.

       (z) "Full-Time Employee" - an Employee who is designated as full-time by
the Employer or Affiliate that employs him under standards uniformly applicable
to similarly situated Employees.

       (aa) "Fund" - the assets of the Plan held by the Trustee.

       (bb) "Highly Compensated Employee" - an Employee who is a highly
compensated active employee within the meaning of Section 414(q) of the Code and
the Treasury Regulation thereunder, the provisions of which are hereby
incorporated herein by this reference, and any former Employee who had a
separation year before the determination year and who was an active Highly
Compensated Employee for either such former Employee's separation year or any
determination year ending on or after the Employee's 55th birthday. For purposes
of determining who is a Highly Compensated Employee under the Plan in accordance
with Section 414(q) of the Code and this Section 1.01(bb), the following
definitions and rules shall apply:

            (1) "compensation" means compensation within the meaning of Treasury
Regulation Section 1.415-2(d)(2) and (3), including all elective or
salary-reduction contributions to a cafeteria plan or a cash or deferred
arrangement;

            (2)   "determination  year"  means the Plan  Year for  which  such
determination is made; and

            (3) "separation year" means the determination year in which the
Employee Severs from Service.

       (cc) "Hour of Service" -

            (1) each hour for which an Employee is directly or indirectly paid
or entitled to payment by the Company or an Affiliate (i) for the performance of
duties or (ii) for reasons other than the performance of duties (irrespective of
whether the employment relationship has terminated) due to vacation, holiday,
illness, incapacity (including disability), layoff, jury duty, military duty, or
leave of absence;

<PAGE>

            (2) each hour for which back pay, irrespective of mitigation of
damages, is either awarded or agreed to by the Company or an Affiliate,
excluding any hours credited under paragraph (1), above; and

            (3) solely for the purpose of determining whether a Break in Service
has occurred, hours, not in excess of 501, that would have been credited
normally (or, if undeterminable, at the rate of eight hours per work day) but
for an Employee's absence from work by reason of (i) the Employee's pregnancy,
(ii) the birth of the Employee's child, (iii) the placement of a child with the
Employee in connection with the Employee's adoption of the child, or (iv) the
Employee's caring for such a child immediately following such birth or
placement. Hours of Service described in this paragraph (3) shall be credited to
the Computation Period in which the absence begins, if necessary to avoid a
Break in Service, or if not so necessary, to the immediately following
Computation Period. Hours of Service under this paragraph (3) shall be credited
only if the Employee timely furnishes to the Employee's Employer (or the
appropriate Affiliate if the Employee is employed by an Affiliate) such
information as it requires to establish the reason for and the length of the
absence.

            Notwithstanding the foregoing, no more than 501 Hours of Service
shall be credited under paragraph (1)(ii) of this Section 1.01(cc) to an
Employee on account of any single continuous period during which the Employee
performs no duties (whether or not that period occurs in a single Computation
Period); an hour for which an Employee is directly or indirectly paid, or
entitled to payment, on account of a period during which no duties are performed
is not required to be credited to the Employee if the payment is made or due
under a plan maintained solely for the purpose of complying with applicable
workers' compensation or unemployment compensation or disability insurance laws;
and Hours of Service shall not be credited for a payment that solely reimburses
an Employee for medical or medically related expenses incurred by the Employee.

            An individual who is a "leased employee" (within the meaning of
Section 414(n) or (o) of the Code) of the Company or an Affiliate shall be
credited with Hours of Service to the same extent as if he had been employed and
paid by the Company or the Affiliate for which he performs services; provided
that a leased employee shall not be credited with Hours of Service for any
period during which the safe harbor requirement of Section 414(n)(5) of the Code
is satisfied with respect to such leased employee.

            The provisions of Labor Regulation Section 2530.200b-2(b) and (c)
are incorporated herein by this reference.

            Notwithstanding anything in this Section 1.01(cc) to the contrary,
and except as otherwise required by Labor Regulation Section 2530.200b-3(e), an
Employee's Hours of Service before September 1, 2001, shall be determined
exclusively by crediting the Employee with 10 Hours of Service for each day in
which the Employee completes at least one Hour of Service and without regard to
whether the Employee actually completes more (or less) than 10 Hours of Service
on that day; provided that if an Employee has completed at least three years of
Service on September 1, 2001, whether the Employee completes five years of
Service for purposes of Section 9.02(c) shall be determined in accordance with
the provisions of this Section 1.01(cc) or the provisions of Section 1.01(cc) in
effect on August 31, 2001, which produces the greater number of years of Service
for the Employee.

       (dd) "Investment Committee" - the Investment and Administrative Committee
of The Walt Disney Company Sponsored Qualified Benefit Plans and Key Employees
Deferred Compensation and Retirement Plan.

       (ee) "Investment Fund" - an investment fund maintained pursuant to
Section 7.03.

<PAGE>

       (ff) "Investment Manager" - a Plan fiduciary (other than the Trustee)
that (i) has the power to manage, acquire, or dispose of any asset of the Plan;
(ii) has acknowledged in writing that it is a fiduciary with respect to the
Plan; and (iii) is registered as an investment adviser under the Investment
Advisers Act of 1940, is a bank as defined in that Act, or is an insurance
company qualified to perform services described in clause (i) of this Section
1.01(ff) under the laws of more than one State.

       (gg) "Labor Regulation" - a regulation issued by the Secretary of Labor
under ERISA.

       (hh) "Leave of Absence" - a temporary period of absence (of up to two
years) from employment with the Company and the Affiliates that is approved by
the Employer or an Affiliate in accordance with rules that shall be applied
uniformly, so that all Employees in similar circumstances are treated alike. Any
Employee who leaves the Company and the Affiliates directly to perform service
in the armed forces of the United States under conditions entitling him to
reemployment rights under the laws of the United States shall be regarded as
being on a Leave of Absence during his absence from the Company and the
Affiliates; provided that if the Employee fails to make application for
reemployment with the Company or an Affiliate within the period specified by
such laws for the preservation of reemployment rights, the Employee shall be
regarded as having Separated from Service on the date the Leave of Absence
began.

       (ii) "Limitation Year" - the calendar year.

       (jj) "Loan" - a loan by the Plan to a Member in accordance with Article
X.

       (kk) "Lump-Sum Distribution" - a Voluntary Lump-Sum Distribution or a
Mandatory Lump-Sum Distribution.

       (ll) "Mandatory Lump-Sum Distribution" - a single payment made in
accordance with Section 12.05 or 12.07.

       (mm) "Member" - an Eligible Employee who becomes a Member pursuant to
Article II, or a former Eligible Employee who previously became a Member
pursuant to Article II, but only for so long as such Eligible Employee or former
Eligible Employee is considered a Member in accordance with Section 2.02.

       (nn) "Merger" - the merger of the Corporation  with DCB Merger Corp., a
Delaware corporation.

       (oo) "Merger Date" - the effective date of the Merger.

       (pp) "Normal Retirement Age" - age 65.

       (qq) "Normal Retirement Date" - the first day of the month coincident
with or next following the attainment of Normal Retirement Age.

       (rr) "Old Company Matching Account" - the bookkeeping account, maintained
in accordance with Section 7.07, that reflects the current value of the Company
Matching Contributions made with respect to the Member before the Merger Date.

       (ss) "Optional Form of Payment" - a form of payment described in Section
12.04.

       (tt) "Part-Time  Employee"  -  an  Employee  who  is  not  a  Full-Time
Employee.

       (uu) "Plan" - the ABC, Inc.  Savings & Investment Plan, as the same may
be amended from time to time.

<PAGE>

       (vv) "Plan Administrator" - the Corporation when acting in its capacity
as the "administrator" of the Plan pursuant to Section 13.11.

       (ww) "Plan Year" - the calendar year.

       (xx) "Pre-Tax Contributions" - contributions made to the Plan by the
Company at the election of the Member pursuant to Section 5.01 (or any
predecessor thereof).

       (yy) "Pre-Tax Contribution Account" - the bookkeeping account, maintained
in accordance with Section 7.07, that reflects the current value of the Pre-Tax
Contributions made with respect to a Member.

       (zz) "Predecessor Company" - an entity or predecessor thereof, prior, in
either case, to its becoming, or to its becoming part of, the Company or an
Affiliate, as determined by the Board of Directors.

       (aaa)"Qualified Domestic Relations Order" - a qualified domestic
relations order within the meaning of Section 206(d)(3) of ERISA and Section
414(p) of the Code.

       (bbb)"Retirement" - the Member's retirement under the terms of a defined
benefit Tax-Qualified Plan maintained, or contributed to, by the Company or an
Affiliate.

       (ccc)"Rollover Contributions" - contributions to the Plan pursuant to
Section 5.06 (or any predecessor thereof).

       (ddd)"Section" - a section of the Plan, except that where, in context,
the term "Section" plainly refers to a statutory or regulatory provision,
"Section" shall refer to a section of the pertinent statute or regulation (e.g.,
Section 401(a) of the Code or Section 3(16)(A) of ERISA).

       (eee)"Service" - a Member's service with the Company or an Affiliate,
computed in accordance with Article IV and used to determine vesting or
eligibility for membership under the Plan.

       (fff)"Sever from Service" - incur a Severance from Service.

       (ggg)"Severance from Service" - the earlier of (1) the date an Employee
terminates employment with the Company and the Affiliates by reason of a quit,
discharge, retirement, or death and (2) the first anniversary of the date the
Employee is first absent (but not on a Leave of Absence) from employment by the
Company and the Affiliates for any other reason.

       (hhh)"Schedule" - a schedule appearing at the end of the Plan.

       (iii)"Successor Company" - a former part of the Company, a former
Affiliate, or a former part of an Affiliate, after the date on which it ceases
to be a part of the Company, an Affiliate, or a part of an Affiliate.

       (jjj)"Surviving Spouse" - the individual to whom a Member is married on
the date of the Member's death.

       (kkk)"Tax-Qualified Plan" - a plan that is, or that has been determined
by the Internal Revenue Service to be, qualified under Section 401(a) or 403(a)
of the Code.

       (lll)"Treasury Regulation" - a regulation issued by the Secretary of the
Treasury under the Code.

       (mmm) "Trust" - any trust that holds all or part of the Fund. Any such

<PAGE>

trust may also hold the assets of plans other than this Plan.

       (nnn)"Trust Agreement" - the agreement or agreements entered into by the
Corporation evidencing the Trust, as the same may be amended from time to time.

       (ooo)"Trustee" - the trustee or trustees acting under the Trust
Agreement.

       (ppp)"Valuation Date" - the last business day of each calendar month and
any other date or dates designated by the Committee for the valuation of
Accounts.

       (qqq)"Value" - the value of an Account, determined in accordance with
Section 7.07.

       (rrr)"Voluntary Lump-Sum Distribution" - a single payment made in
accordance with Article XII (other than a Mandatory Lump-Sum Distribution or a
distribution made in accordance with Section 12.04).

1.02 Construction. Unless the contrary is plainly required by the context,
wherever any words are used herein in the masculine gender, they shall be
construed as though they were also used in the feminine gender, and vice versa,
and wherever any words are used herein in the singular form, they shall be
construed as though they were also used in the plural form, and vice versa.

ARTICLE II:  MEMBERSHIP

2.01 Membership. An individual who was a Member on August 31, 2001, shall be a
Member on September 1, 2001. Every other Employee shall be eligible to become a
Member as of the first day of the month that coincides with or next follows his
completion of one year of Service, but only if he is an Eligible Employee on
that date. If he is not an Eligible Employee on that date, he shall be eligible
to become a Member on the first day of the first calendar month thereafter on
which he is an Eligible Employee.

2.02 Duration of Membership. Once an Eligible Employee has become a Member, he
shall continue to be a Member until his entire nonforfeitable accrued benefit
under the Plan has been distributed or his death, whichever occurs first. Once
his entire nonforfeitable accrued benefit under the Plan has been distributed or
his death occurs, a Member shall cease to be a Member.

2.03 Reemployment. If a current or former Member is no longer an Eligible
Employee, he shall cease to be eligible to participate actively in the Plan, but
if he is reemployed by the Company as an Eligible Employee, he shall be eligible
to participate actively in the Plan on the first day of the first calendar month
occurring on or after the date on which he again performs an Hour of Service
(within the meaning of Section 1.01(cc)(1)(i)) for the Company as an Eligible
Employee.

2.04 Enrollment. An Eligible Employee who is eligible to become a Member in
accordance with the preceding provisions of this Article II may become a Member
by enrolling in the Plan in such manner and form, and at such time, as the
Committee shall prescribe. Similarly, a Member who has ceased to participate
actively in the Plan, but who is eligible to resume active participation, may
resume active participation in the Plan by re-enrolling in the Plan in such
manner and form, and at such time, as the Committee shall prescribe.

2.05 Veterans' Benefits. Notwithstanding any provision of this Plan to the
contrary, in the case of reemployments initiated on or after December 12, 1994,
contributions, benefits and service credit with respect to qualified military
service shall be provided in accordance with Section 414(u) of the Code.

ARTICLE III :  COMPENSATION

<PAGE>

3.01  Compensation.

       (a) Except as provided in Section 3.01(b), "Compensation" means amounts
paid by the Company to a Member who is an Eligible Employee as basic salary and
as commissions and sales bonuses, if any, and amounts contributed on behalf of
the Member to a cafeteria plan or a cash or deferred arrangement and not
included in the Member's gross income for federal income tax purposes under
Section 125 or 402(e)(3) of the Code, but excluding bonuses (other than sales
bonuses), incentive compensation, profit participation, and compensation for
overtime or extended work week and any other items of remuneration.

       (b) In the case of a Member who is represented by a union, "Compensation"
means the amount of covered compensation prescribed by the collective bargaining
agreement with the Employer pursuant to which he is treated as an Eligible
Employee.

3.02 Compensation Limit. In addition to other applicable limitations that may be
set forth in the Plan, and notwithstanding any other contrary provision of the
Plan, annual Compensation taken into account under the Plan for the purpose of
calculating the contributions to the Plan by or in respect of a Member for any
Plan Year shall not exceed the applicable compensation limit under Section
401(a)(17) of the Code and the Treasury Regulation interpreting that Section,
adjusted for changes in the cost of living as provided in that Section and the
applicable Treasury Regulation. Effective January 1, 1989, the annual
compensation used in determining contributions for periods beginning on or after
that date was $200,000 (indexed). Effective January 1, 1994, the annual
compensation used in determining contributions for periods beginning on or after
that date is $150,000 (indexed).

ARTICLE IV:  SERVICE

4.01 Service. Except as otherwise provided in this Article IV, a Full-Time
Employee's Service shall be the sum of the years and fractions of a year of
service credited as follows:

       (a) The Employee's service through December 31, 1983, if any, as
determined under the Plan as in effect on December 31, 1983, or under the Plan
as in effect on January 1, 1984, whichever results in the greater number of
years of Service; plus

       (b) The Employee's years and fractions of a year in completed months as
an Employee of the Company or an Affiliate (but only from the date it became an
Affiliate) after December 31, 1983, until he Severs from Service (provided that
if an Employee completes an Hour of Service, within the meaning of Section
1.01(cc)(1)(i), before the first anniversary of his Severance from Service, the
Severance from Service shall be deemed not to have occurred for purposes of this
Section 4.01(b)).

4.02 Service of Part-Time Employees. Except as otherwise provided in this
Article IV, a Part-Time Employee's Service shall be determined as follows and
without regard to the provisions of Section 4.01:

       (a) A year of Service shall include any Computation Period beginning
before January 1, 1976, if such period qualified as a year of Service under the
Plan as in effect on either December 31, 1975, or January 1, 1976.

       (b) A year of Service shall include any Computation Period beginning
after December 31, 1975, in which the Employee completes 1,000 or more Hours of
Service with the Company and the Affiliates.

4.03  Other Service-Crediting Provisions.

<PAGE>

       (a) To the extent determined by the Board of Directors, the Member's
Service shall include his service as an employee of a Predecessor Company if the
Member was an employee of the Predecessor Company when it became, or became a
part of, the Company and the Affiliates.

       (b) An individual who is a "leased employee" (within the meaning of
Section 414(n) or (o) of the Code) of the Company or an Affiliate shall be
credited with Service to the same extent as if he had been employed and paid by
the Company or Affiliate for which he performs services; provided that a leased
employee shall not be credited with Service for any period during which the safe
harbor requirement of Section 414(n)(5) of the Code is satisfied with respect to
the leased employee.

4.04  Interruption of Service.

       (a) Employment before January 1, 1976, shall be disregarded in
determining Service if such employment would have been disregarded under the
rules of the Plan with regard to breaks in service as such rules were in effect
on December 31, 1975.

       (b) If a Full-Time Employee Severs from Service before having acquired a
nonforfeitable interest in the Value of his Company Matching Account, and if he
thereafter returns to employment with the Company or an Affiliate at a time when
his Break in Service equals or exceeds the greater of (i) five years and (ii)
his years of Service, upon his subsequent return to employment with the Company
or an Affiliate, his prior Service shall be disregarded for all purposes.

       (c) If a Full-Time Employee Severs from Service and returns to employment
with the Company or an Affiliate as an Employee, and Section 4.04(b) does not
apply, all of his Service shall be added together except for such Service as is
disregarded pursuant to the other provisions of this Section 4.04 (by reason of
prior or subsequent breaks in service) or Section 4.08; provided that for
purposes of determining a Member's nonforfeitable interest in his Company
Matching Account, periods of Service shall not be added together pursuant to
this Section before the Employee completes one year of Service following his
resumption of employment.

       (d) If a Part-Time Employee incurs a Break in Service before having
acquired a nonforfeitable interest in the Value of his Company Matching Account,
and if he thereafter returns to employment with the Company or an Affiliate at a
time when his Break in Service equals or exceeds the greater of (i) five years
and (ii) his years of Service, upon his subsequent return to employment with the
Company or an Affiliate, his prior Service shall be disregarded for all
purposes.

       (e) If a Part-Time Employee incurs a Break in Service and returns to
employment with the Company or an Affiliate as an Employee, and Section 4.04(d)
does not apply, all of his Service shall be added together except for such
Service as is disregarded pursuant to the other provisions of this Section 4.04
(by reason of prior or subsequent breaks in service) or Section 4.08; provided
that for purposes of determining a Member's nonforfeitable interest in his
Company Matching Account, periods of Service shall not be added together
pursuant to this Section before the Employee completes one year of Service
following his resumption of employment.

       (f) For purposes of this Section 4.04, all references to the Member's
Company Matching Account shall be deemed to refer both to the Member's Company
Matching Account and to the Member's Old Company Matching Account, if any.

4.05  Leaves of Absence.

       (a) The period of a Leave of Absence shall be included in determining an
Employee's Service. An Employee shall be deemed to remain an Employee during any

<PAGE>

Leave of Absence, provided that he returns to employment as an Employee on or
before the expiration of the Leave or any extension thereof or shall die during
such Leave.

       (b) If a period of family or medical leave is not otherwise treated as a
Leave of Absence pursuant to this Section 4.05, the Employee shall be credited
with Service during such period, and shall participate in any Plan changes that
become effective during such period, but only to the extent required by the
Family and Medical Leave Act of 1993.

       (c) If a Full-Time Employee is absent from employment with the Company
and the Affiliates by reason of (i) the Employee's pregnancy, (ii) the birth of
the Employee's child, (iii) the placement of a child with the Employee in
connection with the Employee's adoption of the child, or (iv) the Employee's
caring for such a child immediately following such birth or placement, the
period between the first and second anniversaries of his period of absence shall
be treated neither as a period of Service (unless the Employee is otherwise on a
Leave of Absence during such period) nor as a Break in Service; provided that
this Section 4.05(c) shall apply only if the Employee timely furnishes to the
Employee's Employer (or the appropriate Affiliate if the Employee is employed by
an Affiliate) such information as it requires to establish the reason for and
the length of the absence.

4.06  Employment With a Successor Company.

       (a) Except as provided in Section 4.06(b), a Member's Service shall not
include the Member's years and fractions of a year in completed months as an
employee of a Successor Company.

       (b) The Board of Directors may adopt an amendment to the Plan pursuant to
which Members shall continue to accrue Service, to the extent specified in the
amendment, for employment with a particular Successor Company identified in the
amendment.

       (c) For purposes of any provision of the Plan that permits a Member to
receive a distribution on or after his Severance from Service, the Member shall
not be entitled to receive such a distribution during either of the following
periods:

            (1) Any period during which the Member continues to accrue Service
with a Successor Company pursuant to a written amendment described in Section
4.06(b).

            (2) With respect to the Member's Pre-Tax Account, any period during
which the Member remains employed by a Successor Company or by a member of the
Successor Company's controlled group (within the meaning of Section 414(b), (c),
(m), or (o) of the Code) except to the extent that a distribution is permitted
by Section 401(k)(2)(B)(i)(II) of the Code and the Treasury Regulation
thereunder.

4.07 Fractional Months of Service. Fractional years and months of Service (and
fractional years and months of a Break in Service) completed by a Full-Time
Employee shall be aggregated. For this purpose, 12 months shall be deemed to
equal one year, and 30 days shall be deemed to equal one month.

4.08 Non-duplication. Notwithstanding anything to the contrary in this Article
IV, a Member shall not receive credit under the Plan for a single period of
service more than once for computing Service.

ARTICLE V:  CONTRIBUTIONS

5.01  Pre-Tax Contributions.

<PAGE>

       (a) A contribution made pursuant to this Section 5.01 shall be known as a
"Pre-Tax Contribution." Subject to the limitations imposed by this Article V and
Article VI, each Member may elect that his Employer shall contribute monthly to
the Plan a whole percentage of his Compensation (designated by the Member) equal
to not less than 1 percent nor more than 10 percent of his Compensation for the
Plan Year; provided that such elected whole percentage (of not less than 1
percent nor more than 10 percent) shall be applied separately to the Member's
Compensation in each payroll period; and provided further that combined Pre-Tax
and After-Tax Contributions on a Member's behalf for any payroll period may not
exceed 10 percent of the Member's Compensation in that payroll period.

       (b) Contributions pursuant to this Section 5.01 shall be made only with
respect to amounts that the Member could otherwise elect to receive in cash and
that are not currently available to the Employee as of the date of his election.

       (c) The Pre-Tax Contributions for a calendar month shall be transmitted
to the Trustee as soon as practicable after the end of that month, and the
Member's Compensation shall be reduced by the amount of the Pre-Tax
Contributions made on his behalf. Pre-Tax Contributions made on behalf of a
Member shall be credited to his Pre-Tax Contribution Account as soon as
practicable after the Pre-Tax Contributions are received by the Trustee.

       (d) If the limitation imposed by Section 6.01 prevents the Employer from
making a Pre-Tax Contribution on behalf of a Member, the Member shall
automatically be deemed to have elected to make an After-Tax Contribution equal
to the amount of the Pre-Tax Contribution that the Employer was prevented from
making except to the extent that the Committee determines that such After-Tax
Contributions would cause the Plan to exceed (or to continue to exceed) the
actual percentage contribution test imposed by Section 6.03 or to violate (or to
continue to violate) the prohibition against multiple use imposed by Section
6.04.

5.02  After-Tax Contributions.

       (a) A contribution made pursuant to this Section 5.02 shall be known as
an "After-Tax Contribution." Subject to the limitations imposed by this Article
V and Article VI, each Member may elect to contribute to the Plan a whole
percentage of his Compensation (designated by the Member) equal to not less than
1 percent nor more than 10 percent of the Member's Compensation for the Plan
Year; provided that such elected whole percentage (of not less than 1 percent
nor more than 10 percent) shall be applied separately to the Member's
Compensation in each payroll period; and provided further that combined Pre-Tax
and After-Tax Contributions on a Member's behalf for any payroll period may not
exceed 10 percent of the Member's Compensation in that payroll period.

       (b) After-Tax Contributions shall be made exclusively by payroll
deduction in a manner to be determined by the Committee.

       (c) The After-Tax Contributions for a calendar month shall be paid to the
Trustee as soon as practicable after the end of that month. After-Tax
Contributions shall be credited to the Member's After-Tax Contribution Account
as soon as practicable after the After-Tax Contributions are received by the
Trustee.

5.03  Change in Contribution Rate.

       (a) Subject to Sections 5.01 and 5.02, a Member may change the rate at
which future Pre-Tax Contributions and/or After-Tax Contributions are made on
the Member's behalf by notifying the Company in such manner and form, and at
such time, as the Company shall require. The change shall become effective as
soon as administratively possible after such notice is received.

       (b) This Section 5.03 also applies to a Member who wishes to elect to

<PAGE>

suspend future Pre-Tax Contributions and/or After-Tax Contributions and to an
Eligible Employee who wishes to commence Pre-Tax Contributions and/or After-Tax
Contributions. A Member who has elected to suspend Pre-Tax Contributions and/or
After-Tax Contributions may elect to resume making such contributions in
accordance with the preceding provisions of this Section 5.03.

5.04  Company Matching Contributions.

       (a) A contribution made pursuant to this Section 5.04 shall be known as a
"Company Matching Contribution." Subject to the limitations imposed by Article
VI, each Member's Employer shall make Company Matching Contributions to the Plan
in an amount equal to 50 percent of so much of the combined Pre-Tax
Contributions and After-Tax Contributions on behalf of the Member as do not
exceed five percent of the Member's Compensation.

       (b) The Company Matching Contributions for a Plan Year shall be made by
the Company to the Trustee by the due date for the filing of the Company's
federal income tax return for the Plan Year (including any extensions thereof)
or at such earlier date or dates as the Company may determine in its sole
discretion. Company Matching Contributions made on behalf of a Member shall be
credited to his Old Company Contribution Account (for Company Matching
Contributions made before the Merger Date) or to his Company Matching Account
(for Company Matching Contributions made on or after the Merger Date) as soon as
practicable after the Company Matching Contributions are received by the
Trustee.

5.05 Contributions Contingent on Deductibility. Each Pre-Tax Contribution and
each Company Matching Contribution shall be made on the condition that it is
deductible under Section 404 of the Code in the taxable year of the Employer
with respect to which the contribution is made.

5.06  Rollover Contributions.

       (a) A contribution made pursuant to this Section 5.06 shall be known as a
"Rollover Contribution." At the discretion of the Committee, an individual who
becomes an Eligible Employee as the direct result of the acquisition of a
Predecessor Company by the Company may elect to contribute or to transfer to the
Fund, in cash, all or part of his account balance under a Tax-Qualified Plan
maintained by the Predecessor Company, but only if the contribution or transfer
meets such conditions as the Committee may establish and only if the Committee
determines that, in the case of a contribution, the amount to be contributed
qualifies as an "eligible rollover distribution" within the meaning of Section
402(c)(4) of the Code, or, in the case of a transfer, that the transfer will not
cause the Plan to become subject, in whole or in part, to the joint and survivor
annuity and qualified preretirement survivor annuity requirements imposed by
Sections 401(a)(11)(A) and 417 of the Code, unless otherwise authorized by the
Committee.

       (b) A Member's Rollover Contribution shall be allocated among the
segments of the Member's Account as determined by the Committee in its sole
discretion.

       (c)  Company Matching  Contributions  shall not be made with respect to
Rollover Contributions.

5.07 Return of Employer Contributions. If a Pre-Tax Contribution or a Company
Matching Contribution was made (i) by reason of a mistake of fact, or (ii) on
the condition that it was currently deductible as provided in Section 5.05 and
such amount is subsequently determined not to be currently deductible as
provided in Section 5.05, the contribution (adjusted for any investment losses
allocable thereto, but not for any investment gains allocable thereto) shall be
refunded to the Company; provided that in the case of a contribution described
in clause (i), the refund may be made only within one year after the payment of

<PAGE>

the contribution; and provided further that in the case of a contribution
described in clause (ii), the refund may be made only within one year after the
disallowance of the deduction and may be made only to the extent that the
deduction was disallowed.

5.08 Two Separate Contracts. Contributions to the Plan shall be made pursuant to
two separate contracts for purposes of Section 72(e) of the Code. After-Tax
Contributions made after December 31, 1986, plus any gains and minus any losses
thereon, shall be allocated to one contract (the "first contract"), and all
other contributions to the Plan, plus any gains and minus any losses thereon,
shall be allocated to the other contract (the "second contract"). If a Member
withdraws After-Tax Contributions from the Plan pursuant to Article XI, the
withdrawal shall be made first from the second contract (until all of the
Member's After-Tax Contributions thereunder have been withdrawn) and then from
the first contract.

ARTICLE VI :  LIMITATIONS ON CONTRIBUTIONS

6.01 Limit on Pre-Tax Contributions. For Plan Years beginning on or after
January 1, 1987, the aggregate elective deferrals (as defined in Section
402(g)(3) of the Code) made on behalf of each Member under the Plan shall not
exceed:

       (a) $7,000 (as adjusted by the Secretary of the Treasury or his delegate
for increases in the cost of living pursuant to Section 402(g) of the Code,
provided that no such adjustment shall be taken into account hereunder before
the Plan Year in which it becomes effective), reduced by

       (b) the sum of any of the following amounts that were contributed on
behalf of the Member for the Plan Year under a plan, contract, or arrangement
other than this Plan:

            (1) any employer contribution under a qualified cash or deferred
arrangement (as defined in Section 401(k) of the Code) to the extent not
includable in the Member's gross income for the taxable year under Section
402(a)(8) of the Code (determined without regard to Section 402(g) of the Code);

            (2) any employer contribution to the extent not includable in the
Member's gross income for the taxable year under Section 402(h)(1)(B) of the
Code (determined without regard to Section 402(g) of the Code); and

            (3) any employer contribution to purchase an annuity contract under
Section 403(b) of the Code under a salary reduction agreement (within the
meaning of Section 3121(a)(5)(D) of the Code);

provided that no contribution described in this subsection (b) shall be taken
into account for the purpose of reducing the dollar limit in subsection (a),
above, if the plan, contract, or arrangement is not maintained by the Company or
an Affiliate unless the Member has filed a notice with the Committee, in such
manner and former, at such time, and containing such information concerning the
contribution as the Committee shall require.

6.02 Actual Deferral Percentage Test. For Plan Years beginning after December
31, 1986, the Plan shall satisfy the actual deferral percentage test set forth
in Section 401(k)(3) of the Code and Treasury Regulation Section 1.401(k)-1(b),
the provisions of which are hereby incorporated herein by this reference. For
Plan Years beginning after December 31, 1996, the actual deferral percentage
test shall be applied using the prior year testing method set forth in Section
401(k)(3) of the Code and the Treasury Regulations and other guidance issued
thereunder.

6.03 Actual Contribution Percentage Test. For Plan Years beginning after
December 31, 1986, the Plan shall satisfy the actual contribution percentage

<PAGE>

test set forth in Section 401(m)(2) of the Code and Treasury Regulation Section
1.401(m)-1(b), the provisions of which are hereby incorporated herein by this
reference. For Plan Years beginning after December 31, 1996, the actual
contribution percentage test shall be applied using the prior year testing
method set forth in Section 401(m)(2) of the Code and the Treasury Regulations
and other guidance issued thereunder.

6.04 Prohibition on Multiple Use. For Plan Years beginning after December 31,
1988, the Plan shall not violate the prohibition against multiple use of the
alternative methods of compliance with Section 401(k) and (m) of the Code. The
prohibition is set forth in Section 401(m)(9) of the Code and Treasury
Regulation Section 1.401(m)-2, the provisions of which are hereby incorporated
herein by this reference.

6.05  Maximum Contributions.

       (a) In addition to any other limitation set forth in the Plan and
notwithstanding any other provision of the Plan, in no event shall the annual
additions to a Member's Account under the Plan, together with the aggregate
annual additions to the Member's accounts under all other defined contribution
plans required to be aggregated with the Plan under the provisions of Section
415 of the Code, increase to an amount that exceeds the maximum amount permitted
under Section 415 of the Code, the provisions of which are incorporated herein
by this reference.

       (b) For Plan Years beginning before January 1, 2000, if the sum of the
Member's defined benefit plan fraction and defined contribution plan fraction
(as defined in Section 415(e) of the Code) exceeds 1.0 for a Limitation Year
(except to the extent permitted under any transition rule described in Section
1106(i) of the Tax Reform Act of 1986 (and any other transition rules that
preserved the Member's existing accrued benefit upon the adoption of Section 415
of the Code or upon any subsequent amendment to Section 415), or under Treasury
Regulations or other guidance under Section 415), the Company shall cause the
annual additions to the Member's Account under the Plan to be reduced to the
extent necessary to comply with the limitation imposed by Section 415(e).

       (c) If the limitations imposed by this Section 6.05 apply to a Member who
is entitled to benefits and/or annual additions under one or more tax-qualified
plans with which the Plan is aggregated for purposes of Section 415 of the Code,
the benefits and/or annual additions under the Plan and such other plan or plans
shall be reduced in the following order, to the extent necessary to prevent the
Member's benefits and/or annual additions from exceeding the limitations imposed
by this Section (after the application of Section 6.07(a)):

            (1) Benefits under all defined benefit plans in which the Member
participated and with which the Plan is aggregated for purposes of Section 415
of the Code, in an order based on the chronology of the accrual of the benefits,
beginning with the benefit that accrued last and ending with the benefit that
accrued first; and

            (2) Annual additions under the Plan and all defined contribution
plans in which the Member participated and with which the Plan is aggregated for
purposes of Section 415 of the Code, in an order based on the chronology of the
annual additions to the plans, beginning with the last annual addition and
ending with the first annual addition.

6.06 Imposition of Limitations. The Committee may limit the amount of a Member's
Pre-Tax Contributions and After-Tax Contributions during a Plan Year to the
extent that the Committee determines that the imposition of such a limit is
necessary or appropriate to ensure that the Plan will satisfy the requirements
of this Article. Any such limitation may be imposed either at the beginning of
the Plan Year, during the Plan Year, or both, as determined by the Committee in
its discretion.

<PAGE>

6.07  Return of Excess Deferrals and Excess Contributions.

       (a) If a Member's Pre-Tax Contributions or After-Tax Contributions cause
the annual additions to a Member's Account to exceed the limit imposed by
Section 6.05, such excess contributions (plus or minus any gains or losses
thereon) shall be returned to the Member (with priority being given first to the
Pre-Tax Contributions and After-Tax Contributions for which no Company Matching
Contributions were made and then to After-Tax Contributions rather than to
Pre-Tax Contributions). Contributions returned pursuant to this subsection (a)
shall be disregarded in applying the limits imposed by Sections 6.01 through
6.04.

       (b) After any excess annual additions (plus or minus any gains or losses
thereon) with respect to a Plan Year have been distributed as provided in
subsection (a), above, if a Member's elective deferrals (as defined in Section
402(g)(3) of the Code) with respect to a Plan Year exceed the limit imposed by
Section 402(g) of the Code (as incorporated in Section 6.01), the following
rules shall apply to such excess (the Member's "excess deferrals"):

            (1) Not later than the first January 31 following the close of the
Plan Year, the Member may allocate to the Plan all or any portion of the
Member's excess deferrals for the Plan Year (provided that the amount of the
excess deferrals allocated to the Plan shall not exceed the amount of the
Member's Pre-Tax Contributions to the Plan for the Plan Year that have not been
withdrawn or distributed) and may notify the Employer, in writing, of the amount
allocated to the Plan.
            (2) If excess deferrals have been made to the Plan on behalf of a
Member for a Plan Year, the Member shall be deemed to have allocated such excess
deferrals to the Plan pursuant to subsection (b)(1), above, and the Plan shall
distribute such excess deferrals pursuant to subsection (b)(3), below.

            (3) As soon as practicable, but in no event later than the first
April 15th following the close of the Plan Year, the Plan shall distribute to
the Member the amount allocated or deemed allocated to the Plan under subsection
(b)(1) or (b)(2), above (plus or minus any gains or losses thereon). The
distribution described in this subsection (b)(3) shall be made notwithstanding
any other provision of the Plan.

       (c) After any excess annual additions (plus or minus any gains or losses
thereon) with respect to a Plan Year have been distributed as provided in
subsection (a), above, after any excess deferrals (plus or minus any gains or
losses thereon) with respect to a Plan Year have been distributed as provided in
subsection (b), above, and after any action pursuant to Section 6.06 with
respect to the Plan Year has been taken, if the actual deferral percentage for
the Plan Year of those Members who are Highly Compensated Employees exceeds the
limit imposed by Section 6.02, the following rules apply:

            (1) The amount of the excess contributions for the Plan Year
(determined in accordance with paragraph (3), below), plus or minus any gains or
losses thereon, shall be distributed to Members who are Highly Compensated
Employees on the basis of the portion of the excess contributions attributable
to each such Member (determined in accordance with paragraph (4), below). This
distribution shall be made as soon as practicable, but in no event later than
the close of the Plan Year following the close of the Plan Year with respect to
which the excess contributions were made. The gains or losses on excess
contributions shall be determined by multiplying the total annual earnings
(positive or negative) for the Plan Year in the Member's Pre-Tax Contribution
Account by a fraction, the numerator of which is the amount of the excess
contributions and the denominator of which is the value of the Member's Pre-Tax
Contribution Account as of the last day of the Plan Year, reduced by any
positive earnings (or increased by any negative earnings) credited to the
Member's Pre-Tax Contribution Account for the Plan Year.

<PAGE>

            (2) In accordance with Treasury Regulations, and subject to such
other rules as the Committee shall prescribe, a Member who is a Highly
Compensated Employee may elect, in such manner and at such time as the Committee
shall prescribe, to treat as an After-Tax Contribution the portion of the excess
contributions attributable to him (determined in accordance with paragraph (4),
below), except to the extent that such After-Tax Contribution would cause the
Plan to exceed (or to continue to exceed) the contribution percentage limit
imposed by Section 6.03 or to violate (or to continue to violate) the
prohibition against multiple use imposed by Section 6.04.

            (3) The amount of the excess contributions for a Plan Year is the
total of the amounts (if any) by which the Pre-Tax Contributions of each Highly
Compensated Employee for the Plan Year would have to be reduced in order that
each Highly Compensated Employee's actual deferral ratio not exceed the highest
permitted actual deferral ratio under the Plan. To calculate the highest
permitted actual deferral ratio under the Plan, the actual deferral ratio of the
Highly Compensated Employee with the highest actual deferral ratio is reduced by
the amount required to cause his actual deferral ratio to equal the actual
deferral ratio of the Highly Compensated Employee with the next highest actual
deferral ratio. If a lesser reduction would enable the Plan to satisfy the
actual deferral percentage test (determined in accordance with Section 6.02) if
only the actual deferral ratio as so reduced were taken into account, only the
lesser reduction may be made. This process shall be repeated until the Plan
would satisfy the actual deferral percentage test if only the actual deferral
ratios as so reduced were taken into account. The highest actual deferral ratio
remaining under the Plan after the foregoing leveling process has been completed
shall be the highest permitted actual deferral ratio.

            (4) The portion of the excess contributions for a Plan Year
(determined in accordance with paragraph (3), above) that is attributable to a
Highly Compensated Employee is determined by (i) reducing the amount of the
Pre-Tax Contributions of the Highly Compensated Employee with the largest amount
of Pre-Tax Contributions for the Plan Year by the amount required to cause the
amount of his Pre-Tax Contributions to equal the amount of the Pre-Tax
Contributions of the Highly Compensated Employee with the next largest amount of
Pre-Tax Contributions for the Plan Year, (ii) treating the amount of the
reduction as the portion of the excess contributions that is attributable to the
first Highly Compensated Employee, and (iii) continuing in the same manner until
all excess contributions for the Plan Year have been attributed to a Highly
Compensated Employee.

The distribution described in paragraph (1), above, shall be made
notwithstanding any other provision of the Plan. The distribution described in
paragraph (1), above, or recharacterized under paragraph (2), above, for a Plan
Year with respect to a Member shall be reduced by any excess deferral previously
distributed from the Plan to such Member for the Member's taxable year ending
with or within such Plan Year. Paragraphs (3) and (4) shall be interpreted and
applied in accordance with Section 401(k)(3) of the Code and the Treasury
Regulations and other guidance issued thereunder.

       (d) If a Member's Pre-Tax Contributions or After-Tax Contributions (plus
or minus any gains or losses thereon) are returned to him pursuant to the
provisions of this Section 6.07, any Company Matching Contributions (plus or
minus any gains or losses thereon) with respect to such returned Pre-Tax
Contributions or After-Tax Contributions shall be immediately forfeited. Any
such forfeitures shall be applied to reduce the Company's obligation to make
Company Matching Contributions pursuant to Article V.

       (e) After any excess deferrals (plus or minus any gains or losses
thereon), and any excess contributions (plus or minus any gains or losses
thereon), with respect to a Plan Year have been distributed and/or
recharacterized, in accordance with subsections (a), (b), (c), and (d), above,

<PAGE>

and after any action pursuant to Section 6.06 with respect to the Plan Year has
been taken, if the contribution percentage for the Plan Year of those Members
who are Highly Compensated Employees exceeds the actual contribution percentage
limit imposed by Section 6.03, the following rules shall apply:

            (1) The amount of the excess aggregate contributions for the Plan
Year (determined in accordance with paragraph (3), below), plus or minus any
gains or losses thereon, shall be distributed (or, if forfeitable, shall be
forfeited) as soon as practicable and in any event before the close of the Plan
Year following the close of the Plan Year with respect to which the excess
aggregate contributions were made. The gains or losses on excess aggregate
contributions shall be determined by multiplying the total annual earnings
(positive or negative) for the Plan Year in the Member's After-Tax Contribution
and Company Matching Accounts by a fraction, the numerator of which is the
amount of the excess aggregate contributions and the denominator of which is the
value of the Member's After-Tax Contribution and Company Matching Accounts as of
the last day of the Plan Year, reduced by any positive earnings (or increased by
any negative earnings) credited to the Member's After-Tax Contribution and
Matching Contribution Accounts for the Plan Year.

            (2) Any distribution in accordance with paragraph (2), above, shall
be made to Members who are Highly Compensated Employees on the basis of the
portion of the excess aggregate contributions attributable to each such Member
(determined in accordance with paragraph (4), below). Such distributions shall
be made notwithstanding any other provision of the Plan.

            (3) The amount of the excess aggregate contributions for a Plan Year
is the total of the amounts (if any) by which the After-Tax and Company Matching
Contributions of each Highly Compensated Employee for the Plan Year would have
to be reduced in order that each Highly Compensated Employee's actual
contribution ratio not exceed the highest permitted actual contribution ratio
under the Plan. To calculate the highest permitted actual contribution ratio
under the Plan, the actual contribution ratio of the Highly Compensated Employee
with the highest actual contribution ratio is reduced by the amount required to
cause his actual contribution ratio to equal the actual contribution ratio of
the Highly Compensated Employee with the next highest actual contribution ratio.
If a lesser reduction would enable the Plan to satisfy the actual contribution
percentage test (determined in accordance with Section 6.03) if only the actual
contribution ratio as so reduced were taken into account, only the lesser
reduction may be made. This process shall be repeated until the Plan would
satisfy the actual contribution percentage test if only the actual contribution
ratios as so reduced were taken into account. The highest actual contribution
ratio remaining under the Plan after the foregoing leveling process has been
completed shall be the highest permitted actual contribution ratio.

            (4) The portion of the excess aggregate contributions for a Plan
Year (determined in accordance with paragraph (3), above) that is attributable
to a Highly Compensated Employee is determined by (i) reducing the amount of the
After-Tax and Company Matching Contributions of the Highly Compensated Employee
with the largest amount of After-Tax and Company Matching Contributions for the
Plan Year by the amount required to cause the amount of his After-Tax and
Company Matching Contributions to equal the amount of the After-Tax and Company
Matching Contributions of the Highly Compensated Employee with the next largest
amount of After-Tax and Company Matching Contributions for the Plan Year, (ii)
treating the amount of the reduction as the portion of the excess aggregate
contributions that is attributable to the first Highly Compensated Employee, and
(iii) continuing in the same manner until all excess aggregate contributions for
the Plan Year have been attributed to a Highly Compensated Employee.

The determination of the excess aggregate contributions under this subsection
for any Plan Year shall be made after taking the measures called for by the
preceding subsections of this Section 6.07. Paragraphs (3) and (4) shall be
interpreted and applied in accordance with Section 401(m)(2) of the Code and the

<PAGE>

Treasury Regulations and other guidance issued thereunder.

       (f) If, after all the actions required or permitted by Section 6.06 and
the preceding provisions of this Section 6.07 have been taken, the Pre-Tax
Contributions, After-Tax Contributions, and Company Matching Contributions of
those Members who are Highly Compensated Employees cause the Plan to violate the
prohibition against multiple use imposed by Section 6.04, the contribution
percentage of those Members shall be reduced to the extent necessary to cause
the Plan to comply with that prohibition, and the excess aggregate contributions
shall be distributed (or, if forfeitable, shall be forfeited) in the manner
described in subsection (e), above.

ARTICLE VII:  INVESTMENTS AND ACCOUNTS

7.01 Trust and Trustee. The Corporation has entered into a Trust Agreement with
the Trustee, in such form and containing such provisions as the Corporation
deems appropriate. The Trust Agreement shall be deemed to form a part of the
Plan, and any and all rights or benefits that may accrue to any person under the
Plan shall be subject to all of the provisions of the Trust Agreement.

7.02  The Fund.  All  contributions  under the Plan  shall be made to the Fund
held by the Trustee.

7.03  Investment Funds.

       (a) The Investment Committee shall have the authority to direct the
Trustee to maintain the assets of the Fund in multiple Investment Funds so as to
provide alternative investment vehicles for the assets of the Plan. Such
separate funds shall include, but are not limited to, the Investment Funds
described below. Additional funds may be established by the Investment
Committee, which shall have sole discretion to determine the number and
character of such additional Investment Funds. The Investment Committee, in its
sole discretion, shall have the authority to limit or eliminate the availability
of any of the Investment Funds established pursuant to this Article VII,
including but not limited to the Investment Funds described below.

            (1) The Walt Disney Company Common Stock Fund - This Investment Fund
shall be invested, without distinction between principal and income, principally
in The Walt Disney Company Common Stock ("Walt Disney Stock"). Portions of this
Investment Fund may be invested by the Trustee in high-grade short-term
obligations and money market instruments for purposes of liquidity to meet
exchange and distribution requirements. The Trustee shall regularly purchase, or
cause to be purchased, Common Stock in the open market in accordance with a
non-discretionary purchasing program. Each Member's proportional interest in
this Investment Fund shall be measured n units of participation, rather than
shares of Walt Disney Stock. Such units shall represent a proportionate interest
in all of the assets of this Investment Fund, which includes shares of Walt
Disney Stock, short-term investments and at all times, receivables for dividends
and/or Walt Disney Stock sold and payables for Walt Disney Stock purchased. A
Net Asset Value ("NAV") per unit will be determined as of each Valuation Date
for each unit outstanding in this Investment Fund. The NAV shall be adjusted by
gains or losses realized on sales of this Investment Fund, appreciation or
depreciation in the market price of those shares owned, interest on the
short-term investments held by this Investment Fund, expenses that pursuant to
the Investment Committee's direction the Trustee accrues from this Investment
Fund, and commissions on purchases and sales of Walt Disney Stock. Dividends
received by this Investment Fund are reinvested in additional shares of Walt
Disney Stock (to the extent it is unnecessary to retain such dividends as cash
to maintain the target liquidity percentage) and Members will receive additional
units.

            (2) Loan Fund - The Loan Fund shall consist principally of cash or

<PAGE>

cash equivalents and promissory notes received in connection with loans made
pursuant to Article X. The Loan Fund shall not be available to receive
contributions and transfers of funds at the direction of a Member, but shall be
administered solely in connection with loans to Members pursuant to Article X.

       (b) Notwithstanding anything in the Plan to the contrary, the Trustee
may, in its discretion, and in accordance with the provisions of the Trust
Agreement, hold all or part of the assets allocated to one or more of the
Investment Funds in cash or cash equivalents.

       (c) Dividends, interest, and other distributions with respect to assets
allocated to an Investment Fund shall be allocated to, and reinvested in, that
Investment Fund. Expenses incurred by the Trustee with respect to an Investment
Fund shall be allocated to that Investment Fund.

7.04  Allocation of Contributions.

       (a) All Pre-Tax, After-Tax, and Rollover Contributions shall be allocated
by the Member among the Investment Funds (other than the Loan Fund) in writing
at the time and in the manner prescribed by the Committee. A Member may elect to
have his Pre-Tax, After-Tax, and Rollover Contributions allocated in any
proportion to any one or more of the Investment Funds (other than the Loan
Fund). Except as provided in Section 12.04(g), all Company Matching
Contributions shall be allocated to The Walt Disney Company Common Stock Fund.

       (b) If a Member fails to make an allocation in accordance with this
Section 7.04 with respect to any portion of the Member's Pre-Tax, After-Tax, and
Rollover Contributions, but has made an allocation election with respect to any
other portion of his contributions, the unallocated portion of the Member's
contributions shall be allocated by the Committee in the same manner as the
Member's most recent allocation election with respect to the allocated portions
of the Member's contributions.

       (c) If a Member fails to make any allocation in accordance with this
Section 7.04 with respect to his Pre-Tax, After-Tax, and Rollover Contributions,
such unallocated funds shall be allocated by the Committee to such Investment
Fund as the Committee may prescribe in its discretion.

       (d) The Committee shall implement (or cause to be implemented) a Member's
investment directions in accordance with the terms of this Article VII and such
procedures as are prescribed by the Committee.

7.05  Change in Allocation.

       (a) A Member may change a direction previously given pursuant to Section
7.04 by submitting a notification to the Committee, in such manner and form, and
at such time, as the Committee shall prescribe, directing such a change.

       (b) By submitting a notification to the Committee in such manner and
form, and at such time, as the Committee shall prescribe, a Member may direct
that all or part of the Value of the Member's Account attributable to a
particular Investment Fund be liquidated and transferred to any of the other
available Investment Funds (other than the Loan Fund); provided that, except as
provided in Section 12.04(g), the Member's Company Matching Account shall be
invested at all times entirely in The Walt Disney Company Common Stock Fund.

       (c) If distribution of the Value of a Member's Account is deferred
pursuant to Article XII past the Valuation Date coincident with or next
following the date on which he terminates employment with the Company and the
Affiliates, the Member may continue to direct the investment of his Account in
accordance with subsection (b), above.

       (d) If all or part of a Member's Account is reallocated in accordance

<PAGE>

with subsection (b) or (c), above, the Member's Account shall be debited and
credited with the appropriate amounts in a manner consistent with Section 7.07
in order to reflect the reallocation.

7.06  Valuation.

       (a) As of each Valuation Date, the Trustee shall determine the fair
market value of the assets in each Investment Fund.

       (b) The Trustee shall make the valuations called for by subsection (a),
above, in accordance with sound and accepted banking and trust accounting
practices. Such valuations shall reflect the current fair market value of the
assets in each Investment Fund (as determined by the Trustee), the Pre-Tax
Contributions, After-Tax Contributions, Rollover Contributions, and Company
Matching Contributions received by the Trustee with respect to each Member since
the most recent Valuation Date, and the withdrawals and distributions with
respect to each Member since the most recent Valuation Date.

7.07  Accounts.

       (a) A Pre-Tax Contribution Account, an After-Tax Contribution Account,
and a Company Matching Account shall be established for each Member. In
addition, an Old Company Matching Account shall be established for each Member
or Beneficiary for whom, immediately before the Merger Date, there was in effect
a Company Matching Account (as that term was defined by the Plan immediately
before the Merger Date). The Member's interest in each Investment Fund that is
allocable to the Pre-Tax Contributions made on behalf of the Member shall be
credited to his Pre-Tax Contribution Account. The Member's interest in each
Investment Fund that is allocable to the Member's After-Tax Contributions shall
be credited to his After-Tax Contribution Account. The Member's interest in each
Investment Fund that is allocable to Company Matching Contributions made before
the Merger Date shall be credited to his Old Company Matching Account. The
Member's interest in The Walt Disney Company Common Stock Fund that is allocable
to Company Matching Contributions with respect to the Member made on or after
the Merger Date shall be credited to his Company Matching Account. The Member's
interest in each Investment Fund that is allocable to any Rollover Contribution
with respect to the Member shall be credited to the Member's Pre-Tax
Contribution Account, After-Tax Contribution Account, Old Company Matching
Account, and/or Company Matching Account, as determined by the Committee in its
discretion.

       (b) The Value of each Member's Account shall reflect the current fair
market value and the gains, losses, income, and expenses of the Investment Funds
to which the Account is allocated and the amount of any withdrawals,
distributions, and loans (including loan repayments) with respect to the Member.

7.08 Risk of Loss. The Plan and the Company do not guarantee that the fair
market value of the Investment Funds, or of any particular Investment Fund, will
be equal to or greater than the amounts allocated thereto. The Plan and the
Company do not guarantee that the Value of the Accounts will be equal to or
greater than the contributions credited thereto. The Members assume all risk of
any decrease in the value of the Investment Funds and the Accounts.

7.09 Interests in the Funds. No Member, Surviving Spouse, or Beneficiary shall
have any claim, right, title, or interest in or to any specific assets of any
Investment Fund or of the Fund until distribution of such assets is made to the
Member, Surviving Spouse, or Beneficiary. No Member, Surviving Spouse, or
Beneficiary shall have any claim, right, title, or interest in or to the Fund,
except as and to the extent expressly provided herein.

7.10 Sole Source of Benefits. Members, Surviving Spouses, and Beneficiaries
shall look only to the Trust for the payment of benefits under the Plan, and
except as otherwise required by law, the Company assumes no responsibility or

<PAGE>

liability therefor.

ARTICLE VIII:  VOTING OF AND TENDER OR EXCHANGE OFFERS FOR COMMON STOCK

8.01  Voting.

       (a) Each Member with an interest in The Walt Disney Company Common Stock
Fund shall have the right to direct the Trustee as to the manner in which the
Trustee is to vote (including not to vote) that number of shares of Common Stock
reflecting the Member's proportional interest in The Walt Disney Company Common
Stock Fund (both vested and unvested). Directions from a Member to the Trustee
concerning the voting of Common Stock shall be communicated in writing, or by
mailgram or similar means. These directions shall be held in confidence by the
Trustee and shall not be divulged to the Corporation, or any officer or employee
thereof, or any other person. Upon its receipt of the directions, the Trustee
shall vote the shares of Common Stock reflecting the Member's proportional
interest in The Walt Disney Company Common Stock Fund as directed by the Member.
With respect to the shares of Common Stock reflecting a Member's proportional
interest in The Walt Disney Company Common Stock Fund for which it has received
no directions from the Member, the Trustee shall vote such shares in the same
proportion (for, against and abstention) on each issue as it votes those shares
reflecting Members' proportional interests in The Walt Disney Company Common
Stock Fund for which the Trustee received voting directions from Members.
Notwithstanding the above, with respect to such shares for which the Trustee has
received no voting directions, in the event of a tender offer, the Trustee shall
vote such shares in accordance with voting directions received from the
Corporation.

       (b) The Trustee shall vote that number of shares of Common Stock that are
not reflected in the Members' proportional interests in The Walt Disney Company
Common Stock Fund in the same ratio (for, against and abstention) on each issue
as it votes those shares reflecting Members' proportional voting interests in
The Walt Disney Company Common Stock Fund for which it receives voting
directions from Members. Notwithstanding the above, in the event of a tender
offer, the Trustee shall vote such unallocated shares in accordance with voting
directions received from the Corporation.

8.02  Tender and Exchange Offers.

       (a) Upon the commencement of a tender offer for Common Stock, the
Corporation shall notify each Member with an interest in The Walt Disney Company
Common Stock Fund of the tender offer and utilize its best efforts to timely
distribute or cause to be distributed to the Member the same information that is
distributed to shareholders of the Corporation in connection with the tender
offer, and, after consulting with the Trustee shall provide and pay for a means
by which the Member may direct the Trustee whether or not to tender the Company
Stock reflecting the Member's proportional interest in The Walt Disney Company
Common Stock Fund (both vested and nonvested). The Trustee shall certify to the
Corporation that the materials have been mailed or otherwise sent to such
Members.

       (b) Each Member shall have the right to direct the Trustee to tender or
not to tender some or all of the shares of Common Stock reflecting the Member's
proportional interest in The Walt Disney Company Common Stock Fund (both vested
and nonvested). Directions from a Member to the Trustee concerning the tender of
Common Stock shall be communicated in writing, or by mailgram or such similar
means as is agreed upon by the Trustee and the Corporation under subsection (a),
above. These directions shall be held in confidence by the Trustee and shall not
be divulged to the Corporation, or any officer or employee thereof, or any other
person except to the extent that the consequences of such directions are
reflected in reports regularly communicated to any such persons in the ordinary
course of the performance of the Trustee's services hereunder. The Trustee shall
tender or not tender shares of Common Stock as directed by the Member. The

<PAGE>

Trustee shall not tender shares of Common Stock reflecting a Member's
proportional interest in The Walt Disney Company Common Stock Fund for which it
has received no direction from the Member.

       (c) The Trustee shall tender that number of shares of Common Stock that
are not reflected in the Members' proportional interests in The Walt Disney
Company Common Stock Fund which is determined by multiplying the total number of
such shares by a fraction of which the numerator is the number of shares of
Common Stock reflecting such Members' proportional interests in The Walt Disney
Company Common Stock Fund credited to Members' Accounts for which the Trustee
received directions from Members to tender (and which have not been withdrawn as
of the date of this determination) and of which the denominator is the total
number of shares of Common Stock reflected in the proportional interests of all
Members under the Plan.

       (d) A Member who has directed the Trustee to tender some or all of the
shares of Common Stock reflecting the Member's proportional interest in The Walt
Disney Company Common Stock Fund may, at any time before the tender offer
withdrawal date, direct the Trustee to withdraw some or all of the tendered
shares reflecting the Member's proportional interest, and the Trustee shall
withdraw the directed number of shares from the tender offer before the tender
offer withdrawal deadline. Before the withdrawal deadline, if any shares of
Common Stock not reflected in the Members' proportional interests in The Walt
Disney Company Common Stock Fund have been tendered, the Trustee shall
redetermine the number of shares of Common Stock that would have been tendered
under subsection (c), above, if the date of the foregoing withdrawal were the
date of determination, and withdraw from the tender offer the number of shares
of Common Stock not reflected in the Members' proportional interests in The Walt
Disney Company Common Stock Fund necessary to reduce the amount of tendered
Common Stock not reflected in the Members' proportional interests in The Walt
Disney Company Common Stock Fund to the amount so redetermined. A Member shall
not be limited as to the number of directions to tender or withdraw that the
Member may give to the Trustee.

       (e) A direction by a Member to the Trustee to tender shares of Common
Stock reflecting the Member's proportional interest in The Walt Disney Company
Common Stock Fund shall not be considered an election under the Plan by the
Member to withdraw, or to have distributed, any or all of his withdrawable
interest in the Plan. The Trustee shall credit to each proportional interest of
the Member from which the tendered shares were taken the proceeds received by
the Trustee in exchange for the shares of Common Stock tendered from that
interest. Pending receipt of directions from the Member or the Committee, in
accordance with the Plan, as to which of the remaining Investment Funds the
proceeds should be invested in, the Trustee shall invest the proceeds in the
Fidelity Retirement Money Market Fund described in Section 7.03(a)(2) of the
Plan (as in effect before April 1, 1998) or such other Investment Fund as the
Committee may prescribe in its discretion.

       (f) For purposes of this Section, the number of shares of Common Stock
deemed "credited" to or "reflected" in a Member's proportional interest shall be
determined as of the last preceding Valuation Date. The trade date is the date
the transaction is valued.

       (g) With respect to all rights other than the right to vote, the right to
tender, and the right to withdraw shares previously tendered, in the case of
Common Stock credited to a Member's proportional interest in The Walt Disney
Company Common Stock Fund, the Trustee shall follow the directions of the Member
and if no such directions are received, the directions of the Committee. The
Trustee shall have no duty to solicit directions from Members. With respect to
all rights other than the right to vote and the right to tender, in the case of
Common Stock not reflected in Members' proportional interests in The Walt Disney
Company Common Stock Fund, the Trustee shall follow the directions of the
Committee.

<PAGE>

       (h) All of the provisions of this Section 8.02 shall apply to exchange
offers as well as to tender offers.

8.03 Conversions. All of the provisions of this Article VIII shall apply to
securities received as a result of a conversion of Common Stock.

ARTICLE IX: VESTING

9.01  Immediately  Vested  Accounts.  A  Member  shall  have  at all  times  a
nonforfeitable  interest in the Value of his Pre-Tax  Contribution Account and
in the Value of his After-Tax Contribution Account.

9.02  Company Matching Account.

       (a) Before January 1, 1995, one-third of the Value of a Member's Company
Matching Account attributable to Company Matching Contributions allocated to his
Company Matching Account for a particular Plan Year (the "Contribution Year")
shall be nonforfeitable at the end of the Contribution Year if the Member is an
active Employee on the last day of the Contribution Year. Two-thirds of the
Value of the Member's Company Matching Account attributable to the Company
Matching Contributions allocated to his Company Matching Account for the
Contribution Year shall be nonforfeitable at the end of the Plan Year
immediately following the Contribution Year if the Member is an active Employee
on the last day of that Plan Year. The entire Value of the Member's Company
Matching Account attributable to Company Matching Contributions allocated to his
Company Matching Account for the Contribution Year shall be nonforfeitable at
the end of the second Plan Year following the Contribution Year if the Member is
an active Employee on the last day of that Plan Year.

       (b) On and after January 1, 1995, one-half of the Value of a Member's
Company Matching Account attributable to Company Matching Contributions
allocated to his Company Matching Account for any Contribution Year shall be
nonforfeitable at the end of that Contribution Year if the Member is an active
Employee on the last day of the Contribution Year. The entire Value of the
Member's Company Matching Account attributable to Company Matching Contributions
allocated to his Company Matching Account for that Contribution Year shall be
nonforfeitable at the end of the Plan Year immediately following that
Contribution Year if the Member is an active Employee on the last day of that
Plan Year.

       (c) A Member shall have a nonforfeitable interest in the Value of his
Company Matching Account upon the first to occur of the following:

            (1)   his completion of five years of Service;

            (2)   his Retirement;

            (3)   his  attainment  of Normal  Retirement  Age before he Severs
from Service; or

            (4)   his Severance from Service by reason of death or Disability.

9.03  Forfeiture.

       (a) Notwithstanding any provision of Section 9.02 to the contrary, if any
portion of the Value of a Member's Company Matching Account is forfeitable when
the Member Severs from Service for a reason other than death, Disability, or
Retirement, such portion shall be forfeited immediately.

       (b) If all or part of the Value of a Member's Company Matching Account is
forfeited, and the Member is subsequently reemployed by the Company or an
Affiliate without incurring a Break in Service of five years or more, the

<PAGE>

forfeited portion of the Value of his Company Matching Account shall be restored
in full (but without adjustment for any subsequent gains or losses) if the
Member repays to the Plan, within five years from the date of such reemployment,
the full amount of any previous distributions to him from the Plan. Any amount
restored or repaid pursuant to this Section 9.03(b) shall be credited to the
Account to which such amount was credited when it was previously forfeited or
distributed, as the case may be.

       (c) Notwithstanding any provision of this Article IX, Company Matching
Contributions (plus or minus any gains or losses thereon) may be forfeited
pursuant to the provisions of Section 6.07.

       (d) Forfeitures shall be applied to reduce the Company's obligation to
make Company Matching Contributions pursuant to the provisions of Article V.

9.04 Old Company Matching Account. On and after the Merger Date, all references
in this Article IX to a Member's Company Matching Account shall be deemed to
refer both to the Member's Company Matching Account and to the Member's Old
Company Matching Account, if any.

ARTICLE X :  LOANS

10.01 Eligibility. A Member shall be eligible to borrow from the Plan in
accordance with this Article X if (i) the Member is actively employed by the
Company or an Affiliate when the Loan is made, (ii) the Member's Account does
not show that the Member has an outstanding Loan, and (iii) the Member will not
be in default on the Loan under Section 10.11(a)(6) or (7) immediately after the
Loan is made.

10.02 Application  Procedure.  A  Member  may  apply  for  a  Loan  by  making
application in accordance  with such procedures as the Committee may prescribe
from time to time.

10.03 Promissory  Note.  A Member  may  obtain a Loan  only if he  executes  a
promissory note in a form approved by the Committee.

10.04 Maximum  Amount.  The  maximum  amount a Member may borrow from the Plan
is the smallest of:
       (a) 50% of the Value of his nonforfeitable interest in his Account
(determined as of the date the Loan is made), disregarding any amount subject to
a Qualified Domestic Relations Order;

       (b)  (1)   $50,000 minus

            (2)   the sum of

                   (i)  the  outstanding  balance  of any loans from all other
                        Tax-Qualified  Plans maintained by the Company and the
                        Affiliates on the date the Loan is made, and

                   (ii) the excess of

                        (A)   the highest outstanding balance of all prior plan
                              loans (including both Loans and loans from any
                              other Tax-Qualified Plans maintained by the
                              Company and the Affiliates) during the one-year
                              period ending on the day before the date the
                              current Loan is made, over

                        (B)   the outstanding balance of all prior plan loans
                              from Tax-Qualified Plans maintained by the Company
                              and the Affiliates on the date the current Loan is
                              made; and

<PAGE>

       (c)  the sum of the Value of the Member's Pre-Tax  Contribution Account
and the Value of the Member's After-Tax  Contribution  Account, as of the date
the Loan is processed;

provided that in no event may a Loan be made in an amount that will require
payroll deductions to be made from the Member's compensation that exceeds the
amount of the Member's net cash pay from the Company or an Affiliate (after
taking into account all other payroll deductions and employment and withholding
taxes).

10.05 Minimum Amount.  A Loan must be in an amount of at least $1,000.

10.06 Term.  The term of a Loan may be for 12, 24,  36,  48, or 60 months,  as
elected by the Member.

10.07 Interest Rate. The interest rate for a Loan shall be fixed on the date the
Loan is approved and shall remain constant during the term of the Loan. The
Committee shall establish either the interest rate or the methodology for
determining the interest rate.

10.08 Repayment. A Loan must be repaid in level installments of principal and
interest by payroll deduction beginning with the Member's paycheck for the first
payroll period beginning at least 30 days after the date the Loan is processed.
If the Member is subsequently granted an unpaid leave of absence or is
transferred to an Affiliate or a position or location within the Company that is
not covered by the Plan (or ceases to have sufficient compensation from which
the Loan payment can be made), the Member must continue to make timely level
installment payments of principal and interest, by certified check, bank check,
or money order.

10.09 Prepayment. A Member may prepay a Loan, in full, at any time and without
penalty by certified check, bank check, or money order. Partial prepayment of a
Loan is not permitted.

10.10 Security. A Member's obligation to repay a Loan shall be secured by the
portion of the Value of his nonforfeitable Account equal to the principal amount
of the Loan. No other property shall be accepted as security for the Loan.

10.11 Default.

       (a)  A Member shall  default on a Loan if any of the  following  events
occurs:

            (1)   the   Member's   Severance   from  Service  for  any  reason
(including the Member's death);

            (2)   the  Member's  failure to make any payment of  principal  or
interest on the Loan on the date the payment is due;

            (3)   the  Member's  failure to perform or observe  any  covenant,
duty, or agreement under the promissory note evidencing the Loan;

            (4) receipt by the Plan of an opinion of counsel to the effect that
(i) the Plan will, or could, lose its status as a Tax-Qualified Plan unless the
Loan is repaid or (ii) the Loan violates, or might violate, any provision of
ERISA;

            (5) the occurrence of an event of default with respect to any other
loan to the Member under any other plan maintained by the Company or an
Affiliate;

            (6) any portion of the Member's Account that secures the Loan

<PAGE>

becomes payable to the Member, his Surviving Spouse or Beneficiary, an Alternate
Payee, or any other person;

            (7) the Member makes an assignment for the benefit of creditors,
files a petition in bankruptcy, is adjudicated insolvent or bankrupt, or becomes
a subject of any wage earner plan under federal or state bankruptcy or
insolvency law, or there is commenced against the Member any bankruptcy,
insolvency, or similar proceeding that remains undismissed for a period of 60
days (or the Member by an act indicates his consent to, approval of, or
acquiescence in any such proceeding); or

            (8)   the termination of the Plan.

       (b) If a default on a Loan occurs, the entire outstanding balance of the
Loan shall be immediately due and payable.

       (c) If a default on a Loan occurs, but the Member does not pay the entire
outstanding balance of the Loan (together with accrued and unpaid interest) by
the 60th day after the last day of the month in which the default occurs, the
Member's nonforfeitable interest in his Account shall be applied immediately, to
the extent lawful and to the extent the Member's Account is then available for
withdrawal or distribution in accordance with the applicable provisions of the
Plan, to pay the entire outstanding balance of the Loan (together with accrued
and unpaid interest); provided that in the case of a default described in
Section 10.11(a)(1), the Plan shall distribute the Member's promissory note to
the Member (or, if the Member has died, to the Member's Beneficiary) in full
satisfaction of the Plan's liability to the Member (or his Beneficiary) with
respect to that portion of the Member's nonforfeitable interest in his Account
equal to the outstanding balance of the Loan (including accrued and unpaid
interest). Notwithstanding the foregoing, no portion of the Member's Pre-Tax
Contribution Account shall be distributed or applied to pay an outstanding Loan
before the date on which it is otherwise distributable or withdrawable under the
Plan.

       (d) Any failure by the Committee to enforce the Plan's rights with
respect to a default on a Loan shall not constitute a waiver of such rights
either with respect to that default or any other default.

10.12 Treatment as Investment. A Loan shall be treated by the Plan as a separate
investment of a portion of the borrowing Member's Account. All interest received
by the Plan with respect to a Member's Loan shall be credited to the Member's
Account, and all losses and expenses incurred by the Plan with respect to the
Loan (including, without limitation, any collection expenses in the event of
default) shall be charged against the Member's Account.

10.13 Ordering Rules.

       (a) The funds used to finance a Loan shall be derived from the borrowing
Member's Account in the following sequence (to the extent necessary to obtain
the amount necessary to finance the Loan): (i) the Member's Pre-Tax Contribution
Account (to the extent attributable to Pre-Tax Contributions for which Company
Matching Contributions were not made), (ii) the Member's Pre-Tax Contribution
Account (to the extent attributable to Pre-Tax Contributions for which Company
Matching Contributions were made), (iii) the Member's After-Tax Contribution
Account (to the extent attributable to After-Tax Contributions for which Company
Matching Contributions were not made), and (iv) the Member's After-Tax
Contribution Account (to the extent attributable to After-Tax Contributions for
which Company Matching Contributions were made).

       (b) Each repayment of principal and interest shall be (i) credited to the
portion(s) of the Account from which the funds used to finance the Loan were
derived, in proportion to the ratio of the amount derived from that portion to
the total amount derived from the Member's Account to finance the Loan, and (ii)

<PAGE>

invested in the Investment Funds in accordance with the Member's directions
regarding the current Pre-Tax and After-Tax Contributions on his behalf to the
Plan (or, if Pre-Tax and After-Tax Contributions are not currently being made on
the Member's behalf, in accordance with the most recent directions given by the
Member with respect to the investment of Pre-Tax or After-Tax Contributions).

10.14 Fees. A Member who receives a Loan shall pay such fees as the Committee
may establish from time to time. The amount, nature and manner of payment of the
fees will be established from time to time by the Committee.

ARTICLE XI:  WITHDRAWALS

11.01 After-Tax Contribution Account. Subject to the restrictions imposed by
this Article XI, a Member who is employed by the Company or an Affiliate may
withdraw all or part of the Value of his After-Tax Contribution Account at any
time.

11.02 Pre-Tax Contribution Account. Subject to the restrictions imposed by this
Article XI, a Member who has attained age 59 1/2 and who is employed by the
Company or an Affiliate may withdraw all or part of the Value of his Pre-Tax
Contribution Account at any time.

11.03 Hardship Withdrawals.

       (a) Subject to the restrictions imposed by this Article XI, if a Member
satisfies the requirements of subsections (b) and (c), below, the Member may
withdraw all or part of the Value of his Pre-Tax Contribution Account (excluding
any gains on Pre-Tax Contributions other than gains credited to his Pre-Tax
Contribution Account as of December 31, 1988) and his nonforfeitable interest in
the Value of his Company Matching Account and his Old Company Matching Account,
if any.

       (b)  A Member may make a  withdrawal  pursuant  to this  Section  11.03
only if he requires the withdrawal for

            (1) costs directly related to the purchase of his principal
residence, or a major rehabilitation of the living quarters in his principal
residence, but excluding mortgage payments,

            (2) the payment of medical expenses described in Section 213(d) of
the Code previously incurred by the Member, the Member's spouse, or any
dependents of the Member (as defined in Section 152 of the Code), or expenses
necessary for these persons to obtain medical care described in Section 213(d)
of the Code,

            (3) the payment of tuition, related educational fees, and room and
board expenses for the next 12 months of post-secondary education for the
Member, or the Member's spouse, children, or dependents (as defined in Section
152 of the Code), or

            (4) payments necessary to prevent the eviction of the Member from
the Member's principal residence or foreclosure on the mortgage on that
residence.

       (c)  A Member may make a  withdrawal  pursuant  to this  Section  11.03
only if

            (1) the amount of the withdrawal does not exceed the amount required
to meet the need shown by the Member pursuant to Section 11.03(b),

            (2) the Member has obtained (or is concurrently obtaining) all
distributions, withdrawals, and loans available under the Plan and all other
plans maintained by the Company and the Affiliates, and

<PAGE>

            (3) the need shown by the Member pursuant to Section 11.03(b) cannot
be satisfied from other resources reasonably available to the Member (including
the resources of his spouse and minor children).

       (d) If a Member seeks to make a withdrawal pursuant to this Section, the
Committee shall require the Member to present such evidence and certifications
as the Committee considers necessary to determine whether the Member meets the
requirements of this Section.

11.04 Notice. The Committee shall provide each Member who, before attaining
Normal Retirement Age, applies for a withdrawal pursuant to this Article XI with
a written, nontechnical explanation of the Member's right to defer receipt of
the withdrawal until Normal Retirement Age. The notice shall be furnished no
less than 30 days and no more 90 days before the date as of which the withdrawal
is scheduled to be made; provided that the withdrawal may be made less than 30
days after the Member receives the notice if the notice informs the Member of
his right to a period of at least 30 days after receiving the notice to consider
whether to elect the withdrawal and if the Member, after being informed of this
right, affirmatively elects to make the withdrawal.

11.05 Dollar Limitations. A withdrawal pursuant to this Article may be made in
any whole dollar amount, except than a withdrawal may not be made for an amount
that is less than $250.

11.06 Priority of  Accounts.  Withdrawals  pursuant to this  Article  shall be
made in the following sequence:

       (a) first, from the Member's After-Tax Contribution Account pursuant to
Section 11.01, and after exhaustion of the After-Tax Contribution Account, and

       (b) then, from the Member's Pre-Tax Contribution Account pursuant to
Section 11.02 and Section 11.03 (to the extent then available), and after
exhaustion of the Pre-Tax Contribution Account (to the extent than available),
and

       (c) then, from the Member's Old Company Matching Account (to the extent
of the Member's nonforfeitable interest therein) pursuant to Section 11.03 (to
the extent then available), and

       (d) last, from the Member's Company Matching Account (to the extent of
the Member's nonforfeitable interest therein) pursuant to Section 11.03 (to the
extent then available).

11.07 Source of Funds.

       (a) A withdrawal pursuant to this Article shall be derived from the
Investment Funds in which the applicable portion of the Member's Account is
invested, in proportion to the percentage of the applicable portion of the
Account that is invested in each Investment Fund.

       (b) A withdrawal from any Investment Fund other than The Walt Disney
Company Common Stock Fund shall be paid in cash.

       (c) A withdrawal from The Walt Disney Company Common Stock Fund shall be
made in shares of Common Stock (except that the value of fractional shares shall
be distributed in cash); provided that a Member may elect to receive such a
withdrawal entirely in cash.

11.08 Valuation. For purposes of this Article XI, the Value of a Member's
Account shall be determined as of the Valuation Date determined in accordance
with the following rules:

<PAGE>

       (a) If the Member's request for a withdrawal is received by the time
prescribed by the Committee, the Valuation Date shall be the Valuation Date
coincident with or next following the date on which the request is received or
as soon thereafter as practicable; and

       (b) If the Member's request for a withdrawal is not received by the time
prescribed by the Committee, the Valuation Date shall be the Valuation Date that
next follows the date on which the request is received or as soon thereafter as
practicable;

provided that if the Member has not waived the 30-day waiting period in
accordance with Section 11.04, the Valuation Date shall be the Valuation Date
that coincides with or next follows the expiration of the 30-day waiting period
or as soon thereafter as practicable.

11.09 Outstanding Loan. Notwithstanding any other provision of this Article, if
a Member's Account shows that the Member has an outstanding balance under a
Loan, the Member shall not be permitted to make a withdrawal pursuant to this
Article of any portion of the Member's Account that secures the Loan.

11.10 Inactive Employees. An Employee who becomes a Member for the first time on
or after January 1, 1995, shall be entitled to make a withdrawal pursuant to
this Article XI only if he is actively employed by the Company or an Affiliate
on the date he applies for the withdrawal.

ARTICLE XII :  DISTRIBUTIONS

12.01 Severance from Service Required. Except to the extent otherwise required
by Section 12.11, a distribution shall not be made to a Member pursuant to this
Article XII before the Member Severs from Service.

12.02 Notice Regarding Form and Payment of Distributions.

       (a) Subject to the provisions of subsections (b) and (c), below, in the
case of a Member whose Distribution Date precedes his Normal Retirement Date,
the Committee shall provide the Member with a written, nontechnical explanation
of the items described in subparagraphs (i) and (ii), below, no more than 90
days, and no less than 30 days, before his Distribution Date:

            (i) In the case of a Member described in Section 12.04(a), the
material features of the Normal Form of Payment and the Optional Forms of
Payment to which the Member is entitled, or that he could elect to receive,
under the Plan; and

            (ii) The Member's right to defer commencement of such benefit until
as late as his Normal Retirement Date.

       (b) Notwithstanding subsection (a), above, the Distribution Date may
occur less than 30 days after the Member receives the notice required by
subsection (a) if the notice informs the Member of his right to a period of at
least 30 days after receiving the notice to consider whether to elect the
distribution and if the Member, after being informed of this right,
affirmatively consents to the distribution.

       (c) Notwithstanding the foregoing, no notice pursuant to this Section
12.02 shall be required in the case of a Member who is required to receive a
distribution in the form of a Mandatory Lump-Sum Distribution in accordance with
Section 12.05.

12.03 Normal Form of Payment. Except as otherwise provided in this Article XII
or in an applicable Schedule, the normal form of payment under the Plan shall be
a Voluntary Lump-Sum Distribution based on the Value of the Member's
nonforfeitable interest in his Account as of the Valuation Date determined in

<PAGE>

accordance with the following rules:

       (a) If the Member's request for a distribution is received by the time
prescribed by the Committee, the Valuation Date shall be the Valuation Date
coincident with or next following the date on which the request is received or
as soon thereafter as practicable; and

       (b) If the Member's request for a distribution is not received by the
time prescribed by the Committee, the Valuation Date shall be the Valuation Date
that next follows the date on which the request is received or as soon
thereafter as practicable;

provided that if the Member has not waived the 30-day waiting period in
accordance with Section 12.02, the Valuation Date shall be the Valuation Date
that coincides with or next follows the expiration of the 30-day waiting period
or as soon thereafter as practicable.

12.04 Optional Forms of Payment.

       (a) Subject to the provisions of Sections 12.05 and 12.11, a Member who
first became a Member before April 1, 1994, and who Severs from Service (i) by
reason of Retirement or Disability or (ii) at or after attaining Normal
Retirement Age may elect to receive the Value of his nonforfeitable interest in
his Account in a series of annual installments.

       (b) The period for which installments are paid pursuant to this Section
shall be any whole number of years from a minimum of one year to a maximum
period equal to the lesser of (i) the Member's life expectancy as determined
under Section 401(a)(9) of the Code and the Treasury Regulations thereunder and
(ii) ten years.

       (c) Subject to the provisions of Section 12.11, the date as of which
installment payments begin pursuant to this Section shall be any day selected by
the Member, beginning after the Member Severs from Service and no later than the
last day of the first Plan Year commencing after the later of (i) the date on
which the Member attains Normal Retirement Age and (ii) the date on which the
Member Severs from Service.

       (d) If annual installment payments are made to a Member pursuant to this
Section, the amount of each payment shall be equal to the Value of his Account,
as of the applicable Valuation Date, multiplied by a fraction, the numerator of
which is one and the denominator is the remaining number of installments
(including the installment then to be paid). The Valuation Date for the first
installment payment shall be determined in accordance with Section 12.03, and
the Valuation Date for each subsequent installment payment shall occur on an
anniversary thereof or as soon thereafter as practicable.

       (e) If a Member has elected to receive installment payments pursuant to
this Section, the election shall be irrevocable as of the Member's Distribution
Date; provided that a Member may elect to accelerate (and to receive in a lump
sum) the payment of all (but not less than all) remaining installments at any
time.

       (f) If a Member who elects to receive installment payments pursuant to
this Section dies after his initial Distribution Date but before the Value of
his nonforfeitable interest in his Account has been fully distributed, the
Member's Beneficiary shall be entitled to receive, at the Beneficiary's
election, either (i) the remaining installments on the dates they were
originally scheduled to be paid (or as soon thereafter as practicable) or (ii)
the Value of the Member's nonforfeitable interest in his Account (determined as
of the date of the distribution) in a lump-sum payment as of a Valuation Date
that occurs as soon as practicable following the Member's death and the
Committee's receipt of all information and documentation that it requires before

<PAGE>

making the distribution. The Beneficiary's election shall be made in such manner
and form, and at such time, as the Committee shall prescribe.

       (g) A Member who elects to receive installment payments pursuant to this
Section may, concurrently with such election, elect that all or part of the
Value of his Company Matching Account attributable to The Walt Disney Company
Common Stock Fund be liquidated and transferred to any of the other available
Investment Funds (other than the Loan Fund).

12.05 Mandatory Lump Sum. If, as of any date after a Member Severs from Service,
the Value of the Member's nonforfeitable interest in his Account does not exceed
$5,000, the Member shall receive an immediate Mandatory Lump-Sum Distribution
equal to such Value. For purposes of this Section 12.05, if the Value of the
Member's nonforfeitable interest in his Account at the time of any distribution
to the Member exceeds $5,000, the Value of the Member's nonforfeitable interest
in his Account at the time of any subsequent distribution to the Member also
shall be deemed to exceed $5,000. If a Mandatory Lump-Sum Distribution pursuant
to this Section 12.05 is delayed for administrative reasons, and the Member dies
on or after his Distribution Date, but before the Mandatory Lump-Sum
Distribution is paid to him, the Mandatory Lump-Sum Distribution shall be paid
to his personal representative.

12.06 Distribution Date.

       (a) Except as otherwise provided in this Section 12.06 or Section 12.04,
12.05, or 12.11, the Distribution Date of a Member who is entitled to a
distribution pursuant to this Article shall be his Normal Retirement Date.

       (b) (1) A Member who Severs from Service before his Normal Retirement
Date may designate any date thereafter and on or before his Normal Retirement
Date as his Distribution Date. A Member may make an election under this Section
12.06(b) only if the election meets the requirements imposed by paragraph (2),
below.

            (2) A Member may make an election under this Section, or revoke any
such election, before his Distribution Date, but only after the Member receives
the notice required by Section 12.02. Any such election, and any revocation of a
previous election, shall be made in a form satisfactory to the Committee and
delivered to the Committee within the period prescribed by the preceding
sentence.

            (3) A Member may not make an election under this Section, or revoke
an election previously made under this Section, on or after the Member's
Distribution Date.

       (c) Subject to the provisions of Sections 12.05 and 12.11, a Member who
Severs from Service by reason of Retirement or Disability or after attaining
Normal Retirement Age may elect that his Distribution Date shall be a date
(designated by the Member) that occurs in the Plan Year following the Plan Year
in which his Severance from Service occurs.

       (d) Subject to the provisions of Sections 12.06(c) and 12.11, the
Distribution Date of a Member who Severs from Service after his Normal
Retirement Date shall occur as soon as practicable after his Severance from
Service.

       (e) Unless the Member elects otherwise in writing, the Member's
Distribution Date shall not occur later than the 60th day after the close of the
Plan Year in which the latest of the following occurs: (i) the Member's
attainment of Normal Retirement Age, (ii) the tenth anniversary of the year in
which the Member commenced participation in the Plan, or (iii) the Member
terminates employment with the Company and the Affiliates. This subsection is
designed solely to comply with the provisions of Section 401(a)(14) of the Code

<PAGE>

and Section 206(a) of ERISA; this subsection does not give a Member the right to
postpone the Distribution Date beyond the date otherwise required by the terms
of the Plan.

       (f) Notwithstanding any other provision of the Plan, a payment shall not
be considered to be made after the Distribution Date merely because actual
payment is reasonably delayed for the calculation and/or distribution of the
benefit amount if all payments due are actually made.

       (g) If a Voluntary Lump-Sum Distribution pursuant to this Article XII is
delayed for administrative reasons, and the Member dies after his Distribution
Date, but before the Voluntary Lump-Sum Distribution is paid to him, the
Voluntary Lump-Sum Distribution shall be paid to his personal representative.

       (h) If a Pre-Tax Contribution, After-Tax Contribution, or Company
Matching Contribution is credited to a Member's Account after the Value of his
Account has been distributed in its entirety pursuant to this Article XII, the
Value of the Member's Account (reflecting such contribution) shall be
distributed in accordance with the generally applicable provisions of this
Article XII and without regard to any election made by the Member with respect
to the prior distribution.

12.07 Death. Except as otherwise provided in Sections 12.05 and 12.06(g), upon
the death of a Member, the Value of the Member's nonforfeitable interest in his
Account shall be distributed to his Beneficiary as of the Valuation Date
coincident with or next following the Member's Normal Retirement Date or as of
such earlier Valuation Date as the Beneficiary may elect (on or before such
Valuation Date) in such form and manner, and at such time, as the Committee
shall prescribe; provided that if, as of any date after the Member's death, the
Value of the Member's Account does not exceed $5,000, the Beneficiary shall
receive an immediate Mandatory Lump-Sum Distribution equal to such Value in
accordance with Section 12.05.

12.08 Designation of Beneficiary.

       (a) Subject to the remaining provisions of this Section, a Member may
designate a Beneficiary under the Plan at any time.

       (b) Subject to the remaining provisions of this Section, a Member may
revoke a prior designation of a Beneficiary at any time by filing a written
notice of revocation with the Committee and may designate a new Beneficiary by
filing a written designation with the Committee. No such revocation or
designation shall be effective unless and until it is received by the Committee
before the Member's death in a form and manner that is acceptable to the
Committee.

       (c) Subject to the remaining provisions of this Section, if a Member
designates his spouse as his Beneficiary, that designation shall not be revoked
or otherwise altered or affected by any

            (1)   change in the marital status of the Member and such spouse,

            (2)   agreement between the Member and such spouse, or

            (3) judicial decree (such as a divorce decree) affecting any rights
that the Member and such spouse might have as a result of their marriage,
separation, or divorce (except to the extent that a Qualified Domestic Relations
Order directs the designation of a Beneficiary),

until and unless the Member revokes his prior designation of Beneficiary and
designates a Beneficiary in accordance with this Section, it being the intent of
the Plan that any change in the designation of a Beneficiary hereunder may be
made by the Member only in accordance with the provisions of this Section or

<PAGE>

pursuant to a Qualified Domestic Relations Order.

       (d) Notwithstanding the preceding provisions of this Section, a Member's
designation of a Beneficiary other than his Surviving Spouse shall be effective
only with the written consent of such Surviving Spouse, witnessed by a
representative of the Plan or a notary public, unless the Committee determines
that spousal consent cannot be obtained because there is no Surviving Spouse,
because the Surviving Spouse cannot be located, or because of other
circumstances specified by the Secretary of the Treasury. The consent of a
spouse to a Member's designation of a Beneficiary shall be effective only with
respect to that spouse and shall not be effective with respect to any subsequent
spouse. In the absence of spousal consent in accordance with this Section, a
Member who is married on the date of his death shall be deemed to have
designated his Surviving Spouse as his Beneficiary unless and to the extent that
such designation is inconsistent with a Qualified Domestic Relations Order.

       (e) After a Member's death, the Member's Beneficiary shall have the same
rights and options under the Plan as a Member who is a former Employee of the
Company and the Affiliates, including the right to designate a Beneficiary. For
example, a Beneficiary shall not have the right to make contributions to the
Plan or to obtain a Loan from the Plan.

12.09 Payment Medium.

       (a) A distribution pursuant to this Article shall be derived from the
Investment Funds in which the applicable Account is invested, in proportion to
the percentage of the Account invested in each Investment Fund.

       (b) A distribution from any Investment Fund other than The Walt Disney
Company Common Stock Fund shall be paid in cash.

       (c) A distribution from The Walt Disney Company Common Stock Fund shall
be made in shares of Common Stock (except that the value of fractional shares
shall be distributed in cash); provided that the distributee may elect to
receive such a distribution entirely in cash.

12.10 Risk of Loss. The Value of a Member's nonforfeitable interest in his
Account shall continue to be adjusted to reflect the investment performance of
the Investment Fund(s) in which his Account is invested (and shall therefore
remain subject to the risk of loss) during the period between the Member's
Severance from Service and the date when the Member's nonforfeitable interest in
his Account has been distributed in full.

12.11 Minimum Required Distributions.

       (a) The Plan is designed to satisfy the requirements of Section 401(a)(9)
of the Code and the Treasury Regulations thereunder without regard to the
provisions of this Section 12.11. Nevertheless, to ensure that the Plan complies
with those requirements, this Section 12.11 has been added to the Plan. The sole
purpose of this Section 12.11 is to limit the manner in which benefits are paid
under the Plan to accord with the requirements of Section 401(a)(9) of the Code
and the Treasury Regulations thereunder. This Section 12.11 should be
interpreted in a manner consistent with that purpose. With respect to
distributions under the Plan made for calendar years beginning on or after
January 1, 2001, the Plan shall apply the minimum distribution requirements of
Section 401(a)(9) of the Code in accordance with the regulations under Section
401(a)(9) that were proposed on January 17, 2001, notwithstanding any provision
of the Plan to the contrary; this sentence shall continue in effect until the
end of the last calendar year beginning before the effective date of final
regulations under Section 401(a)(9) or such other date as may be specified in
guidance published by the Internal Revenue Service. The provisions of this
Section 12.11 shall override any distribution options under the Plan that are
inconsistent with the requirements of Section 401(a)(9) of the Code and the

<PAGE>

Treasury Regulations thereunder. This Section 12.11 does not confer any rights
or benefits upon any person.

       (b) Notwithstanding any other provision of the Plan, except as provided
in the following subsection (c) the distribution of the Value of a Member's
nonforfeitable interest in his Account shall commence not later than April 1 of
the calendar year following the later of (1) the calendar year in which he
attains age 70 1/2 and (2) the calendar year in which he retires from employment
with the employer maintaining the Plan.

       (c) Clause (2) of the preceding subsection (b) shall not apply to a
Member who is a 5% owner (as defined in Section 416(i)(1)(B) of the Code) with
respect to the Plan Year ending with or within the calendar year in which he
reaches age 70 1/2. In addition, a Member who became a Member before January 1,
1997, and attains age 70 1/2 before January 1, 1999, may irrevocably elect, at
the time and in the manner prescribed by the Committee, to disregard clause (2).
Members who were receiving distributions as of December 31, 1996, that were
required by this Section as in effect on that date shall not have any right
based on clause (2) to stop such distributions.

       (d) Unless the mode of distribution is a single payment, the Value of a
Member's nonforfeitable interest in his Account shall be paid over a period not
extending beyond the Member's life or life expectancy, or the joint lives or
joint life expectancies of the Member and his Spouse or joint annuitant. If the
Member's entire benefit is to be distributed over a period longer than one year,
then the amount to be distributed each year shall be no less than the amount
prescribed by the Treasury Regulations under Section 401(a)(9) of the Code.

       (e) If a Member dies before his Distribution Date, any benefit payable
after his death shall be distributed to his Surviving Spouse in accordance with
this Article XII and shall not begin later than the April 1 following the date
on which the Member would have attained age 70 1/2 (or, if later, the first day
of the month coincident with or next following the Member's death).

       (f) Payments shall not be made under the Plan pursuant to any payment
schedule authorized by the Plan unless the payment schedule satisfies the
incidental benefit requirement set forth in Section 401(a)(9)(G) of the Code and
the Treasury Regulation thereunder.

       (g) This Section 12.11 shall not apply to any method of distribution
designated in writing by a Member under the terms of the Plan (or any
predecessor thereof) before January 1, 1985, in accordance with Section
242(b)(2) of the Tax Equity and Fiscal Responsibility Act of 1982.

12.12 Direct Rollover. If a Member, a Surviving Spouse, or an Alternate Payee
named in a Qualified Domestic Relations Order is entitled to receive an
"eligible rollover distribution" (within the meaning of Section 402(c)(4) of the
Code) from the Plan on or after January 1, 1993, the Plan shall, at the election
of the recipient, make a direct rollover of the taxable portion of the
distribution to an eligible retirement plan. Notwithstanding the foregoing, the
recipient may not make a direct rollover if the Corporation reasonably expects
the total of such "eligible rollover distributions" from the Plan to the
recipient to be less than $200 in the Plan Year; and if a recipient elects to
have only a portion of an "eligible rollover distribution" paid to an eligible
retirement plan in a direct rollover, that portion must be at least $500. This
Section 12.12 is intended, and shall be construed, solely to satisfy the direct
rollover requirements of Section 401(a)(31) of the Code: it shall not confer any
rights other than those required under Section 401(a)(31) and the Treasury
Regulation thereunder.

ARTICLE XIII :  ADMINISTRATION

13.01 Employee Benefits Committee. The Employee Benefits Committee shall consist

<PAGE>

of not less than three persons who shall be appointed by the Board of Directors.
The members of the Committee may, but need not, be employees, officers, or
directors of the Company or an Affiliate. The number of members of the Committee
may be increased from time to time by the Board, and such new members shall be
appointed by the Board, provided that the total number of members shall at all
times be not less than three. Before becoming a member of the Committee, any
person appointed to the Committee must accept his appointment in writing. Any
member of the Committee may be removed by the Board at any time with or without
cause. Any member of the Committee may resign by submitting a written
resignation to the Board, and such resignation shall be effective on the date of
receipt or on any subsequent date specified therein. A vacancy on the Committee
shall be filled by the Board.

13.02 Chairman and Secretary. The Committee shall select a Chairman and may
select a Secretary (who may, but need not be, a member of the Committee) to keep
its records and to assist it in the performance of its duties.

13.03 Committee Meetings and Votes. The Committee shall hold meetings at such
time and place and upon such notice as the Committee may from time to time
determine. A majority of the members of the Committee at the time in office
shall constitute a quorum. All actions by the Committee shall be by majority
vote of the Committee members present at such a meeting, but the Committee may
also act without a meeting by consent of a majority of its members evidenced by
a resolution signed by a majority of the members then in office. No member of
the Committee shall have any right to vote or decide upon any matter relating
solely to himself or solely to his rights or benefits under the Plan.

13.04 Evidence of Action of the Committee. The Committee may authorize one or
more of its members to sign on its behalf any instructions, notices, or
certifications to the Trustee or to any other person.

13.05 Records and Reports. The Committee shall maintain records of its actions
and determinations in administering the Plan. All such records, together with
such other documents as may be necessary for the administration of the Plan,
shall be preserved by the Committee.

13.06 Powers and Duties of the Committee. The Committee shall be a named
fiduciary of the Plan and shall have the authority to control and manage the
operation and administration of the Plan. The Committee shall have such
discretionary power as may be necessary to carry out the provisions of the Plan
and to perform its duties hereunder, including, without limiting the generality
of the foregoing, the discretionary power to:

       (a)  promulgate  and  enforce  such rules and  regulations  as it shall
deem necessary or appropriate for the administration of the Plan;

       (b)  interpret  the Plan and decide  all  matters  arising  thereunder,
including  the  right to remedy  possible  ambiguities,  inconsistencies,  and
omissions;

       (c) resolve questions relating to individuals' eligibility for
participation in the Plan, vesting, forfeitures, the amounts and manner of
distribution, and the status of persons as Employees, Eligible Employees,
Members, spouses, Surviving Spouses, Beneficiaries, and Alternate Payees;

       (d) require any person to furnish such documentation, information, or
other matter as the Committee may require for the proper administration of the
Plan and as a prerequisite to any payment or distribution by the Plan;

       (e)  direct that the Fund be used to pay the reasonable  administration
expenses of the Plan;

       (f)  employ  or  retain  one or more  persons  to  render  advice  with

<PAGE>

respect to its responsibilities under the Plan;

       (g)  employ  or  retain   one  or  more   persons   to  assist  in  the
administration of the Plan; and

       (h) impose reasonable restrictions (including temporary prohibitions) on
Members' contribution elections, changes in contribution elections, investment
elections, changes in investment elections, loans, withdrawals, and
distributions to accommodate the administrative requirements of the Plan.

All decisions of the Committee relating to matters within its jurisdiction shall
be final.

13.07 Professional Assistance. The Committee may engage accountants, attorneys,
actuaries, physicians, and such other personnel as it deems necessary or
advisable for the proper administration of the Plan. The fees and costs of such
services shall be paid by the Company unless they are paid out of the Fund. The
Committee shall be entitled to obtain and act on the basis of all tables,
valuations, certificates, opinions, and reports furnished by any accountant,
attorney, actuary, physician, or other person so engaged.

13.08 Allocation and Delegation of Committee Responsibilities. The Committee may
allocate among any of the members of the Committee any of the responsibilities
of the Committee under the Plan or delegate to any person (including a
third-party administrator) not a member of the Committee authority to carry out
any of the responsibilities of the Committee under the Plan. Any such allocation
or delegation shall be made pursuant to a written instrument executed by each of
the members of the Committee then in office or pursuant to a contract between a
third-party administrator and the Corporation and approved by the Committee.
Unless such written instrument or contract specifies otherwise, the one or more
persons to whom responsibility is allocated or delegated pursuant to this
Section shall have the same discretionary powers in carrying out such
responsibility as the Committee itself would have had it carried out the
responsibility itself.

13.09 Compensation and Expenses. The members of the Committee shall serve
without compensation from the Plan, but the Fund shall reimburse the Committee
members for all reasonable expenses incurred in the administration of the Plan
except to the extent that the expenses are borne by the Company.

13.10 Investment    Responsibilities.    The   Committee    shall   have   the
discretionary authority and power to:

       (a)  manage  (including the power to acquire and dispose of) any assets
under the Plan;

       (b) appoint an Investment Manager or Managers to manage (including the
authority and power to acquire and dispose of) any assets of the Plan, including
the power to replace or terminate any such Investment Managers;

       (c) appoint or direct the appointment of one or more named fiduciaries
that do not qualify as Investment Managers to manage (including the power to
acquire and dispose of) any assets of the Plan, including the power to replace
or terminate any such named fiduciaries;

       (d) designate one or more investment companies, or other common,
collective, or mutual funds, as Investment Funds pursuant to Section 7.03,
including the power to replace or eliminate any such Investment Funds;

       (e) allocate investment responsibilities among the Trustee, the
Investment Managers, any named fiduciaries appointed pursuant to subsection (c)
of this Section 13.10, and the Investment Committee itself;

<PAGE>

       (f) periodically review and evaluate the performance of the Trustee, the
Investment Funds, the Investment Managers, and any named fiduciaries appointed
pursuant to subsection (c) of this Section 13.10; and

       (g) employ or retain one or more persons to render advice with respect to
its responsibilities under the Plan.

13.11 Plan  Administrator.  The Corporation  shall be the  "administrator"  of
the Plan for purposes of Section 3(16)(A) of ERISA.

13.12 Multiple  Fiduciary  Capacities.  Any  person  or group of  persons  may
serve in more than one fiduciary capacity under the Plan.

ARTICLE XIV:  BENEFIT CLAIMS PROCEDURE

14.01 Claims Procedure. A claim for benefits under the Plan by a Member,
Surviving Spouse, Beneficiary, Alternate Payee, or any other person shall be
filed by submitting to a person (the "claim administrator") designated by the
Committee a written application on a form designated by the Committee. The claim
administrator shall, within a reasonable time, consider the claim and shall
issue his determination in writing. If the claim is denied in whole or in part
by the claim administrator, the claim administrator shall, within a reasonable
time, provide the claimant with a written notice setting forth in a manner
calculated to be understood by the claimant:

       (a)  The specific reason or reasons for the denial of the claim;

       (b)  Specific  reference  to  pertinent  Plan  provisions  on which the
denial is based;

       (c) A description of any additional material or information necessary for
the claimant to perfect the claim and an explanation of why such material or
information is necessary; and

       (d)  An explanation of the Plan's claim review procedure.

14.02 Review Procedure. The Committee shall provide each claimant with a
reasonable opportunity to appeal a denial of the claim to the Committee for a
full and fair review. The claimant or his duly authorized representative shall
be permitted to request a review upon written application to the Committee to
review pertinent documents, and to submit issues and comments in writing. The
Committee may establish such time limits within which claimants may request
review of denied claims as are reasonable in relation to the nature of the
benefit that is the subject of the claim and to other attendant circumstances,
but which in no event shall be less than 60 days after receipt by the claimant
of written notice of denial of his claim. The decision by the Committee with
respect to the claim shall be made not later than 60 days after receipt of the
request for review, unless special circumstances require an extension of time
for processing, in which case a decision shall be rendered as soon as possible
but not later than 120 days after receipt of the request for review. The
decision on review shall be in writing, shall include specific reasons for the
decision and specific references to the pertinent Plan provisions on which the
decision is based, and shall be written in a manner calculated to be understood
by the claimant. To the extent permitted by law, the decision of the claim
administrator (if no review is properly requested) or the decision of the
Committee on review, as the case may be, shall be final and binding on all
parties if it is supported by the facts that were considered and is reasonably
based on the applicable provisions of law, the Plan, and the Trust Agreement.

14.03 Required Information. Any person eligible to receive benefits hereunder
shall furnish to the claim administrator or the Committee any information or
evidence requested by the claim administrator or the Committee and reasonably
required for the proper administration of the Plan. Failure on the part of any

<PAGE>

person to comply with any such request within a reasonable period of time shall
be sufficient grounds for delay in the payment of any benefits that may be due
under the Plan until such information or evidence is received by the claim
administrator or the Committee. The claim administrator or the Committee may
recoup from the payments to any person any amount previously paid to such person
to which he was not entitled under the provisions of the Plan.

ARTICLE XV: AMENDMENT, MERGER, AND TERMINATION OF THE PLAN

15.01 Amendment of the Plan. Either the Board of Directors, by duly adopted
written resolution, or the Corporation's chief human resource officer, by an
executed written instrument, may modify or amend the Plan in whole or in part,
prospectively or retroactively, at any time and from time to time; provided that
the Corporation's chief human resource officer may not adopt any such
modification or amendment unless he determines that the modification or
amendment will not have a material financial effect on the financial condition
of the Company. The officers of the Corporation may take all actions necessary
or appropriate to implement or effectuate any modification or amendment to the
Plan.

15.02 Merger or Consolidation of the Plan. To the extent that Section 414(l) of
the Code applies, the Plan may not be merged or consolidated with, and its
assets or liabilities may not be transferred to, any other plan unless each
Member would receive a benefit immediately after the merger, consolidation, or
transfer (if each plan then terminated) that is equal to or greater than the
benefit he would have been entitled to receive immediately before the merger,
consolidation, or transfer (if the Plan had then terminated); provided that the
foregoing provisions of this Section 15.02 shall not apply if such alternative
requirements as may be imposed by the Treasury Regulations under Section 414(l)
of the Code are satisfied.

15.03 Termination of the Plan.

      (a) Reservation of Right to Terminate. While the Plan was established as a
permanent program and the Company expects to continue the Plan indefinitely, the
Corporation reserves the right to terminate the Plan, partially or in its
entirety, at any time by a written resolution of the Board of Directors.

      (b) Date of Termination. If the Board of Directors adopts a resolution to
terminate the Plan, the Plan shall be terminated as of a date to be specified in
the resolution.

      (c) Rights of Affected Members. In the event of the termination or partial
termination of the Plan, or the discontinuance of contributions to the Plan, the
rights of all affected Members to benefits accrued to the date of such
termination, partial termination, or discontinuance, to the extent funded as of
such date, shall be nonforfeitable. The benefits accrued to the date of such a
termination, partial termination, or discontinuance shall be determined on the
basis of the assumption that the employment of every affected Member terminated
on such date (or, if earlier, on the date on which his employment actually
terminated). In the event of a termination of the Plan, the benefits accrued to
the date of the termination shall be funded only to the extent of the assets in
the Fund as of such date; and in the event of a partial termination of the Plan,
the benefits accrued by the affected Members shall be funded only to the extent
that they would have been funded in the event of a complete termination of the
Plan occurring on the date of the partial termination. For purposes of this
subsection (c), the Members affected by the termination or partial termination
of the Plan, or a discontinuance of contributions to the Plan, shall not include
any former Member who does not have a balance in his Account on the date of the
termination, partial termination, or discontinuance.

15.04 Design  Decisions.  Decisions  regarding the design of the Plan shall be
made  in a  settlor  capacity  and  shall  not be  governed  by the  fiduciary

<PAGE>

responsibility provisions of ERISA.

ARTICLE XVI:  MISCELLANEOUS

16.01 Employment Rights Not Affected by Plan. The adoption and maintenance of
the Plan shall not be deemed to constitute a contract between the Company and
any Employee. Nothing herein contained shall be deemed to give to any Employee
the right to be retained in the employ of the Company or to interfere with the
right of the Company to discharge any Employee at any time, nor shall it be
deemed to give the Company the right to require the Employee to remain in its
employ, nor shall it interfere with the Employee's right to terminate his
employment.

16.02 Booklets and Brochures Subject to Plan Provisions. The Company shall from
time to time issue to Members one or more booklets or brochures summarizing the
Plan. In the event of any conflict between the terms of the Plan document and
Trust Agreement and the terms of the booklets and brochures, the terms of the
Plan document and Trust Agreement shall control.

16.03 Doubt as to Identity.

       (a) If at any time any doubt exists as to the identity or whereabouts of
any person entitled to payment hereunder or the amount or time of such payment,
the Corporation may direct the Trustee either (i) to hold such sum in trust,
uninvested, and without interest, until distribution is ordered by a court of
competent jurisdiction, or (ii) to pay such sum into court in accordance with
appropriate rules of law.

       (b) If, after reasonable efforts, the Committee is unable to determine
the whereabouts of any person entitled to payment hereunder within three years
after such sum first becomes payable, the Account of such person shall be
forfeited and shall be treated as an actuarial gain that shall be used to reduce
Company Matching Contributions to the Plan in accordance with Article V. For
purposes of the preceding sentence, notice by registered mail sent to such
person's most recent address (as reflected in the Plan records) at least once in
each of three successive years shall constitute reasonable efforts to locate
such person. If, however, such person subsequently makes proper claim to the
Company for such sum, the forfeited benefit shall be reinstated, and shall be
distributed in accordance with the terms of the Plan.

16.04 Liability Limited. Except as and to the extent otherwise provided by
applicable law, no liability whatever shall attach to or be incurred by the
shareholders, directors, officers, or employees of the Company or any Affiliate
under or by reason of any of the terms and conditions contained in the Plan or
in any of the contracts procured pursuant thereto or implied therefrom.

16.05 Overpayments. If any overpayment of benefits is made under the Plan, the
amount of the overpayment may be set off against further amounts payable to or
on account of the person who received the overpayment until the overpayment has
been recovered. The foregoing remedy is not intended to be exclusive.

16.06 Incapacity. If any person is unable to care for his affairs because of
illness or accident, unless a duly qualified guardian or other legal
representative has been appointed, any payment due from the Plan to that person
may be paid, for the benefit of such person, to his spouse, parent, brother,
sister, or other person deemed by the Committee to have incurred expenses for
such person.

16.07 Assignment and Liens.

      (a) Nonalienability of Benefits. Subject to subsections (b) and (c),
below, the right of any person to any benefit or payment under the Plan shall
not be subject to alienation, transfer, assignment, or encumbrance, or otherwise

<PAGE>

subject to lien, and any such attempt to alienate, transfer, assign, or encumber
any benefit or payment under the Plan shall be null and void.

      (b) Exception for Qualified Domestic Relations Orders. Subsection (a),
above, shall not apply to payments made pursuant to a Qualified Domestic
Relations Order. The following rules shall apply with respect to Qualified
Domestic Relations Orders:

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

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

            (3) Multiple Spouses. If, as a result of a Qualified Domestic
Relations Order, a Member is treated as having more than one spouse, the amount
of benefits payable with respect to the Member under the Plan shall not exceed
the amount of benefits that would be payable if he had only one spouse.

            (4) Restrictions on Distributions. If a Qualified Domestic Relations
Order requires distribution to an Alternate Payee of all or a portion of the
Value of a Member's nonforfeitable interest in his Account, such distribution
shall be made without regard to the restriction set forth in Section 12.01.

      (c) General Limitation. This Section 16.07 is intended to satisfy the
requirements of Section 206(d) of ERISA and Sections 401(a)(13) and 414(p) of
the Code. This Section 16.07 shall not be construed in a manner that would
impose limitations that are more stringent than those required by Section 206(d)
of ERISA and Sections 401(a)(13) and 414(p) of the Code. Thus, this Section
16.07 shall not restrict the alienation, transfer, assignment, or encumbrance of
any benefit or payment under the Plan to the extent such alienation, transfer,
assignment, or encumbrance is permitted under Section 206(d) of ERISA and
Sections 401(a)(13) and 414(p) of the Code, and the regulations thereunder. If
Congress should provide by statute, or the United States Labor Department, the
United States Treasury Department, or the Internal Revenue Service should
provide by regulation, ruling, or other guidance of general applicability, that
any restriction set forth in this Section 16.07 is no longer necessary for the
Plan to meet the requirements of Section 206(d) of ERISA or Section 401(a) of

<PAGE>

the Code or any other applicable provision of ERISA or the Code then in effect,
such restriction shall become void and shall no longer apply, without the
necessity of further amendment to the Plan.

16.08 Withholding Taxes. The Committee may make any appropriate arrangements to
deduct from all amounts paid under the Plan any taxes reasonably determined to
be required to be withheld by any government or government agency. The Member,
Surviving Spouse, Beneficiary, or Alternate Payee, as the case may be, shall
bear all taxes on amounts paid under the Plan to the extent that no taxes are
withheld, irrespective of whether withholding is required.

16.09 Titles and Headings Not to Control. The titles to articles and the
headings of sections, subsections, paragraphs, and subparagraphs in the Plan are
placed herein for convenience of reference only, and in the event of any
conflict, the text of the Plan, rather than such titles or headings, shall
control.

16.10 Notice of Process. In any action or proceeding involving the Fund, or any
property constituting part or all thereof, or the administration thereof, the
Company, the Committee, and the Trustee shall be the only necessary parties, and
no Member, spouse, Surviving Spouse, Beneficiary, Alternate Payee, or other
person having or claiming to have an interest in the Fund or under the Plan
shall be entitled to any notice of process unless such notice is required by
federal law.

16.11 Nonreversion. Except as provided in Section 5.07, all Plan assets shall be
used for the exclusive benefit of Members, their Surviving Spouses,
Beneficiaries, and Alternate Payees and for the payment of the reasonable
expenses of administering the Plan and shall not revert to the Company.

16.12 Governing Law. The Plan shall be construed, administered and regulated in
accordance with the provisions of ERISA and, to the extent not preempted
thereby, in accordance with the laws of the State of New York (without regard to
the legislative or judicial conflict of laws rules of any state).

16.13 Interpretation of Plan and Trust. It is the Company's intention that the
Plan shall be a qualified profit-sharing plan under Section 401(a) of the Code,
that the Trust shall be exempt from federal income tax under Section 501(a) of
the Code, and that the Plan and the Trust Agreement shall satisfy the applicable
requirements of ERISA. The Plan and the Trust Agreement shall be construed to
effectuate the foregoing intention.

16.14 Severability. If any provision of the Plan should be held illegal or
invalid for any reason, such illegality or invalidity shall not affect the
remaining parts of the Plan, and the Plan shall be construed and enforced as if
such illegal or invalid provision had never been inserted herein.

16.15 Complete Statement of Plan. This document is a complete statement of the
Plan and, as of September 1, 2001, supersedes all prior plans. The Plan may be
amended, modified, or terminated only in writing and then only as provided in
Sections 15.01 and 15.03.

ARTICLE XVII:  TOP-HEAVY PLAN PROVISIONS

17.01 Application of Article XVII. This Article XVII shall apply only if the
Plan is Top-Heavy, as defined below. If, as of any Top-Heavy Determination Date,
as defined below, the Plan is Top-Heavy, the provisions of Section 17.04 shall
take effect as of the first day of the Plan Year next following the Top-Heavy
Determination Date and shall continue to be in effect until the first day of any
subsequent Plan Year following a Top-Heavy Determination Date as of which it is
determined that the Plan is no longer Top-Heavy.

<PAGE>

17.02 Definitions Concerning Top-Heavy Status. In addition to the definitions
set forth in Article I, the following definitions shall apply for purposes of
this Article XVII, and shall be interpreted in accordance with the provisions of
Section 416 of the Code and the Treasury Regulations thereunder:

      (a) Aggregation Group - a group of Company Plans consisting of each
Company Plan in the Required Aggregation Group and each other Company Plan
selected by the Corporation for inclusion in the Aggregation Group that would
not, by its inclusion, prevent the group of Company Plans included in the
Aggregation Group from continuing to meet the requirements of Sections 401(a)(4)
and 410 of the Code.

      (b) Annual Compensation - compensation for a calendar year within the
meaning of Treasury Regulation Section 1.415-2(d)(11)(ii) to the extent that
such compensation does not exceed the annual compensation limit in effect for
the calendar year under Section 401(a)(17) of the Code.

      (c)   Company Plan - any Tax-Qualified Plan of the Companies.

      (d) Key Employee - any employee of the Companies who satisfies the
criteria set forth in Section 416(i)(1) of the Code.

      (e) Required Aggregation Group - one or more Company Plans comprising each
Company Plan in which a Key Employee is a participant and each Company Plan that
enables any Company Plan in which a Key Employee is a participant to meet the
requirements of Section 401(a)(4) or 410 of the Code.

      (f) Top-Heavy - the Plan is included in an Aggregation Group under which,
as of the Top-Heavy Determination Date, the sum of the present value of the
cumulative accrued benefits of the Key Employees under all defined benefit plans
in the Aggregation Group and the aggregate value of the accounts of Key
Employees under all defined contribution plans in the Aggregation Group exceeds
60 percent of the analogous sum determined for all employees. The determination
of whether the Plan is Top-Heavy shall be made in accordance with Section
416(g)(2)(B) of the Code and the Treasury Regulations thereunder.

      (g) Top-Heavy Determination Date - the December 31 immediately preceding
the Plan Year for which the determination is made.

      (h) Top-Heavy Ratio - the percentage calculated in accordance with
paragraph (6), above, and Section 416(g)(2) of the Code and the Treasury
Regulations thereunder.

      (i)   Top-Heavy Year - a Plan Year for which the Plan is Top-Heavy.

17.03 Calculation of Top-Heavy Ratio. The Top-Heavy Ratio with respect to any
Plan Year shall be determined in accordance with the following rules:

      (a) Determination of Accrued Benefits. The accrued benefit of any current
Member shall be calculated, as of the most recent valuation date that is within
a 12-month period ending on the Top-Heavy Determination Date, as if the Member
had voluntarily terminated employment as of such valuation date. Such valuation
date shall be the same valuation date used for computing plan costs for purposes
of the minimum funding provisions of Section 412 of the Code. Unless, as of the
valuation date, the Plan provides for a nonproportional subsidy, the actuarial
present value of the accrued benefit shall reflect a retirement income
commencing at age 65 (or attained age, if later). If, as of the valuation date,
the plan provides for a nonproportional subsidy, the benefit shall be assumed to
commence at the age at which the benefit is most valuable.

      (b)   Aggregation.  The Plan shall be aggregated  with all Company Plans
included in the Aggregation Group.

<PAGE>

17.04 Effect of Top-Heavy Status.

      (a) Minimum Contribution. Notwithstanding Article V, as of the last day of
each Top-Heavy Year, the Company shall make, for each Member, (i) the Company
contributions it otherwise would have made under the Plan for such Top-Heavy
Year, or if greater, (ii) contributions for such Top-Heavy Year that, when added
to the contributions made by the Company for such Member (and any forfeitures
allocated to his accounts) for such Top-Heavy Year under all other defined
contribution plans of the Company, aggregate three percent of his Compensation;
provided that the Plan shall meet the requirements of this subsection (a) and
subsection (b), below, without taking into account Pre-Tax Contributions or
other employer contributions attributable to a salary reduction or similar
arrangement.
      (b) Accelerated Vesting. A Member who has completed at least three years
of Service and who is credited with an Hour of Service in a Top-Heavy Year shall
have a nonforfeitable interest in his Account. For purposes of determining
whether the Member's interest in his Account is nonforfeitable under the
preceding sentence, Section 411(a)(3)(B) and (a)(3)(D) of the Code (relating to
suspension of benefits and forfeitures upon withdrawal of mandatory
contributions, respectively) shall not apply.

      (c) Reduction in Section 415 Limits. For purposes of applying Section
6.05, the provisions of Section 415(e)(2)(B) and (e)(3)(B) of the Code shall be
applied by substituting "1.0" for "1.25" therein. If application of the
preceding sentence would otherwise cause a Member to exceed the limits imposed
by Section 6.05, then application of the preceding sentence shall be suspended
with respect to the Member until he no longer exceeds the limits of Section
6.05, as modified by the preceding sentence. In accordance with Section
416(h)(3) of the Code and the Treasury Regulation thereunder, during the period
of such suspension there shall be no Company contributions, forfeitures, or
voluntary nondeductible contributions allocated to the Member's accounts under
the Plan or any other defined contribution plan of the Companies and no accruals
for the Member under any defined benefit plan of the Companies. In addition,
during the period of such suspension, for purposes of applying Section 6.05 to
the Member, Section 415(e)(6)(B)(i) of the Code shall be applied as modified by
Section 416(h)(4) of the Code.

      (d) Inapplicability to Union Employees. The preceding provisions of this
Section 17.04 shall not apply with respect to any employee included in a unit of
employees covered by an agreement that the Secretary of Labor finds to be a
collective bargaining agreement between employee representatives and the
Company, if there is evidence that retirement benefits were the subject of good
faith bargaining between such employee representatives and the Company.

17.05 Effect of Discontinuance of Top-Heavy Status. If, for any Plan Year after
a Top-Heavy Year, the Plan is no longer Top-Heavy, the provisions of Section
17.04 shall not apply with respect to such Plan Year, except that:

            (1)   The  accrued  benefit of any Member  shall not be reduced on
account of the operation of this Section 17.05;

            (2) Each Member shall remain fully vested in any portion of the
Member's accrued benefit that was fully vested before the Plan ceased to be
Top-Heavy; and

            (3) Any Member who was a Member in a Top-Heavy Year and who has
completed at least three years of Service as of the first day of the Plan Year
in which the Plan is no longer Top-Heavy may elect to remain subject to the
provisions of Section 17.04(b).

17.06 Intent of Article XVII. This Article XVII is intended to satisfy the
requirements imposed by Section 416 of the Code and shall be construed in a
manner that will effectuate this intent. This Article XVII shall not be

<PAGE>

construed in a manner that would impose requirements on the Plan that are more
stringent than those imposed by Section 416 of the Code.

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