Document:

Exhibit 10.22

                         CALIFORNIA WATER SERVICE GROUP
                           DEFERRED COMPENSATION PLAN

                             As Amended and Restated
                            Effective January 1, 2001

                                                                               2

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California Water Service Company
Supplemental Executive Retirement Plan
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PURPOSE       .................................................................1

ARTICLE 1     DEFINITIONS......................................................1
   1.1            "Account Balance"............................................1
   1.2            "Annual Base Salary".........................................1
   1.3            "Annual Company Matching Amount".............................1
   1.4            "Annual Deferral Amount".....................................1
   1.5            "Annual Installment Method"..................................2
   1.6            "Beneficiary"................................................2
   1.7            "Beneficiary Designation Form" ..............................2
   1.8            "Board" .....................................................2
   1.9            "Change in Control"..........................................2
   1.10           "Claimant" ..................................................3
   1.11           "Code" ......................................................3
   1.12           "Committee" .................................................3
   1.13           "Company" ...................................................3
   1.14           "Company Contribution Account"...............................3
   1.15           "Company Contribution Amount"................................3
   1.16           "Company Matching Account" ..................................3
   1.17           "Deduction Limitation" ......................................3
   1.18           "Deferral Account" ..........................................4
   1.19           "Director" ..................................................4
   1.20           "Directors Fees" ............................................4
   1.21           "Disability" or "Disabled"...................................4
   1.22           "Disability Benefit".........................................4
   1.23           "Election Form"..............................................4
   1.24           "Employee"...................................................4
   1.25           "Employer(s)"................................................5
   1.26           "ERISA"......................................................5
   1.27           "401(k) Plan"................................................5
   1.28           "Maximum 401(k) Amount"......................................5
   1.29           "Meeting Fees"...............................................5
   1.30           "Participant"................................................5
   1.31           "Plan".......................................................5
   1.32           "Plan Agreement".............................................5
   1.33           "Plan Year"..................................................6
   1.34           "Pre-Retirement Survivor Benefit"............................6
   1.35           "Retirement," "Retire(s)" or "Retired".......................6
   1.36           "Retirement Benefit".........................................6
   1.37           "Short-Term Payout"..........................................6
   1.38           "Termination Benefit"........................................6
   1.39           "Termination of Employment"..................................6
   1.40           "Trust"......................................................6
________________________________________________________________________________

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   1.41           "Unforeseeable Financial Emergency"..........................6
   1.42           "Valuation Date".............................................7
   1.43           "Withdrawal Amount"..........................................7
   1.44           "Years of Service"...........................................7

ARTICLE 2     SELECTION, ENROLLMENT, ELIGIBILITY...............................7
   2.1            Selection by Committee.......................................7
   2.2            Enrollment Requirements......................................7
   2.3            Eligibility; Commencement of Participation...................7
   2.4            Termination of Participation and/or Deferrals................8

ARTICLE 3     DEFERRAL COMMITMENTS/COMPANY MATCHING/CREDITING/TAXES............8
   3.1            Minimum and Maximum Deferrals................................8
   3.2            Election to Defer; Effect of Election Form...................9
   3.3            Withholding of Annual Deferral Amounts.......................9
   3.4            Other Annual Deferral Amounts................................9
   3.5            Annual Company Matching Amount...............................9
   3.6            Company Contribution Amount.................................10
   3.7            Investment of Trust Assets..................................10
   3.8            Vesting.....................................................10
   3.9            Crediting/Debiting of Account Balances......................11
   3.10           FICA and Other Taxes........................................12
   3.11           Forfeiture for Criminal Acts................................13

ARTICLE 4     SHORT-TERM PAYOUT; UNFORESEEABLE FINANCIAL
              EMERGENCIES; WITHDRAWAL ELECTION................................13
   4.1            Short-Term Payout...........................................13
   4.2            Other Benefits Take Precedence Over Short-Term..............14
   4.3            Withdrawal Payout/Suspensions for Unforeseeable Financial
                  Emergencies.................................................14
   4.4            Withdrawal Election.........................................14

ARTICLE 5     RETIREMENT BENEFIT..............................................14
   5.1            Retirement Benefit..........................................14
   5.2            Payment of Retirement Benefit...............................15
   5.3            Death Prior to Completion of Retirement Benefit.............15

ARTICLE 6     PRE-RETIREMENT SURVIVOR BENEFIT.................................15
   6.1            Pre-Retirement Survivor Benefit.............................15

ARTICLE 7     TERMINATION BENEFIT.............................................15
   7.1            Termination Benefit.........................................15

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ARTICLE 8     DISABILITY DEFERRALS, WAIVER AND BENEFIT........................16
   8.1            Disability..................................................16
   8.2            Continued Eligibility; Disability Benefit...................16

ARTICLE 9     BENEFICIARY DESIGNATION.........................................17
   9.1            Beneficiary.................................................17
   9.2            Beneficiary Designation; Change; Spousal Consent............17
   9.3            Acknowledgment..............................................17
   9.4            No Beneficiary Designation..................................17
   9.5            Doubt as to Beneficiary.....................................17
   9.6            Discharge of Obligations....................................18

ARTICLE 10    LEAVE OF ABSENCE................................................18
   10.1           Paid Leave of Absence.......................................18
   10.2           Unpaid Leave of Absence.....................................18

ARTICLE 11    TERMINATION, AMENDMENT OR MODIFICATION..........................18
   11.1           Termination.................................................18
   11.2           Amendment...................................................19
   11.3           Plan Agreement..............................................19
   11.4           Effect of Payment...........................................19

ARTICLE 12    ADMINISTRATION..................................................20
   12.1           Committee Duties............................................20
   12.2           Administration Upon Change In Control.......................20
   12.3           Agents......................................................20
   12.4           Binding Effect of Decisions.................................21
   12.5           Indemnity of Committee......................................21
   12.6           Employer Information........................................21

ARTICLE 13    OTHER BENEFITS AND AGREEMENTS...................................21
   13.1           Coordination with Other Benefits............................21

ARTICLE 14    CLAIMS PROCEDURES...............................................21
   14.1           Presentation of Claim.......................................21
   14.2           Notification of Decision....................................22
   14.3           Review of a Denied Claim....................................22
   14.4           Decision on Review..........................................22
   14.5           Legal Action................................................23

ARTICLE 15    TRUST...........................................................23
   15.1           Establishment of the Trust..................................23
   15.2           Interrelationship of the Plan and the Trust.................23
   15.3           Distributions From the Trust................................23

ARTICLE 16    MISCELLANEOUS...................................................23

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   16.1           Status of Plan..............................................23
   16.2           Unsecured General Creditor..................................23
   16.3           Employer's Liability........................................24
   16.4           Nonassignability............................................24
   16.5           Not a Contract of Employment................................24
   16.6           Furnishing Information......................................24
   16.7           Terms.......................................................24
   16.8           Captions....................................................24
   16.9           Governing Law...............................................25
   16.10          Notice......................................................25
   16.11          Successors..................................................25
   16.12          Spouse's Interest...........................................25
   16.13          Incompetent.................................................25
   16.14          Court Order.................................................25
   16.15          Distribution in the Event of Taxation.......................26
   16.16          Insurance...................................................26
   16.17          Legal Fees To Enforce Rights After Change in Control........26

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                                     Purpose

         The purpose of this Plan is to provide  specified  benefits to a select
group  of  management  and  highly  compensated   Employees  and  Directors  who
contribute  materially to the continued growth,  development and future business
success of California  Water Service  Group, a California  corporation,  and its
subsidiaries and affiliates,  if any, that sponsor this Plan. This Plan shall be
unfunded for tax  purposes  and for  purposes of Title I of ERISA.  The Plan was
first  effective  January  1, 1998 and is amended  effective  January 1, 2001 as
restated in this document.

                                   ARTICLE 1
                                   Definitions

         For purposes of this Plan,  unless otherwise  clearly apparent from the
context,  the  following  phrases or terms  shall have the  following  indicated
meanings:

                  "Account Balance" shall mean, with respect to a Participant, a
                                     credit on the records of the Employer equal
                                     to  the  sum of (i)  the  Deferral  Account
                                     balance,  (ii) the vested Company  Matching
                                     Account   balance   and  (iii)  the  vested
                                     Company  Contribution  Account balance. The
                                     Account  Balance,  and each other specified
                                     account  balance,  shall  be a  bookkeeping
                                     entry only and shall be utilized  solely as
                                     a   device   for   the    measurement   and
                                     determination  of the amounts to be paid to
                                     a  Participant,  or his  or her  designated
                                     Beneficiary, pursuant to this Plan.

                  "Annual  Base Salary" shall mean the annual cash  compensation
                                     relating to services  performed  during any
                                     calendar  year as listed  on an  Employer's
                                     payroll  records.  Annual Base Salary shall
                                     be   calculated    before   reduction   for
                                     compensation    voluntarily   deferred   or
                                     contributed by the Participant  pursuant to
                                     all qualified or non-qualified plans of any
                                     Employer and shall be calculated to include
                                     amounts  not  otherwise   included  in  the
                                     Participant's   gross   income  under  Code
                                     Sections 125 or 402(e)(3) pursuant to plans
                                     established  by  any  Employer;   provided,
                                     however,  that  all  such  amounts  will be
                                     included in

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                                     compensation  only to the extent that,  had
                                     there  been no such plan the  amount  would
                                     have   been   payable   in   cash   tot  he
                                     Participant.

                  "Annual  Company  Matching Amount" for any one Plan Year shall
                                     be the amount determined in accordance with
                                     Section 3.5.

                  "Annual  Deferral   Amount"  shall  mean  that  portion  of  a
                                     Participant's   Annual   Base   Salary  and
                                     Directors Fees that a Participant elects to
                                     have, and is deferred,  in accordance  with
                                     Article  3, for any one Plan  Year.  In the
                                     event   of  a   Participant's   Retirement,
                                     Disability    (if   deferrals    cease   in
                                     accordance  with Section  8.1),  death or a
                                     Termination of Employment  prior to the end
                                     of a Plan Year, such year's Annual Deferral
                                     Amount shall be the actual amount  withheld
                                     prior to such event.

                  "Annual  Installment  Method"  shall be an annual  installment
                                     payment  over the number of years  selected
                                     by  the   Participant  in  accordance  with
                                     section  5.2 of this  Plan,  calculated  as
                                     follows:   The   Account   Balance  of  the
                                     Participant  shall be calculated  not later
                                     than  the  close  of  business  on the last
                                     business  day of the  year,  or  sooner  if
                                     approved  by  the  Committee.   The  annual
                                     installment    shall   be   calculated   by
                                     multiplying this balance by a fraction, the
                                     numerator   of  which   is  one,   and  the
                                     denominator   of  which  is  the  remaining
                                     number   of   annual   payments   due   the
                                     Participant.  By  way  of  example,  if the
                                     Participant   elects  the   5-year   Annual
                                     Installment Method, the first payment shall
                                     be one-fifth (1/5) of the Account  Balance,
                                     calculated as described in this definition.
                                     The  following  year,  the payment shall be
                                     one-fourth  (1/4) of the  Account  Balance,
                                     calculated as described in this definition.

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                  "Beneficiary" shall mean one or more persons,  trusts, estates
                                     or other entities, designated in accordance
                                     with   Article  9,  that  are  entitled  to
                                     receive  benefits  under this Plan upon the
                                     death of a Participant.

                  "Beneficiary Designation Form" shall mean the form established
                                     from time to time by the  Committee  that a
                                     Participant completes, signs and returns to
                                     the  Committee  to  designate  one or  more
                                     Beneficiaries.

                  "Board"  shall mean the board of directors  of the  California
                                     Water Service Group.

                  "Change  in  Control"  shall be  deemed  to take  place on the
                                     occurrence of any of the following events:

         (a)      Any merger or  consolidation  of the California  Water Service
                  Group or California  Water Service Company  ("Target  Entity")
                  after   which  such  Target   Entity  is  not  the   surviving
                  organization,  a majority of the capital stock of which is not
                  owned by the  shareholders  of the Target  Entity  immediately
                  prior to such merger or consolidation;

         (b)      A transfer  of all or  substantially  all of the assets of the
                  Target Entity;

         (c)      Any other corporate  reorganization in which there is a change
                  in ownership of the  outstanding  shares of the Target  Entity
                  wherein thirty percent (30%) or more of the outstanding shares
                  of the Target Entity are transferred to any person;

         (d)      The  acquisition  by or  transfer to a person  (including  all
                  affiliates  or  associates  of  such  person)  of  "beneficial
                  ownership"  (as that term is defined  in Rule 13d-3  under the
                  Securities  Exchange  Act of 1934) of capital  stock of Target
                  Entity if after such  acquisition or transfer such person (and
                  their affiliates or associates) is entitled to exercise thirty
                  percent (30%) or more of the  outstanding  voting power of all
                  capital stock of Target  Entity  entitled to vote in elections
                  of directors;

         (e)      The  election to the Board of Directors  of  California  Water
                  Service  Group of  candidates  who were  not  recommended  for
                  election by the Board of Directors of California Water Service
                  Group in office  immediately  prior to the  election,  if such
                  candidates  constitute  a  majority  of those  elected in that
                  particular election; or

         (f)      Any other corporate  reorganization,  merger or  consolidation
                  immediately  after which thirty  percent  (30%) or more of the
                  stock ownership of the surviving company's  outstanding shares
                  is owned by a person (or their  affiliates and associates) who
                  did not own shares of the Target Entity immediately before the
                  transaction.

                  "Claimant" shall have the meaning set forth in Section 14.1.

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

                  "Committee" shall mean the committee described in Article 12.

                  "Company"shall  mean   California   Water  Service   Group,  a
                                     California  corporation,  and any successor
                                     to   all  or   substantially   all  of  the
                                     Company's assets or business.

1.2      "Company   Contribution   Account"  shall  mean  (i)  the  sum  of  the
         Participant's  Company Contribution Amounts, plus (ii) amounts credited
         in accordance with all the applicable crediting provisions of this Plan
         that relate to the Participant's  Company  Contribution  Account,  less
         (iii)  all  distributions  made  to  the  Participant  or  his  or  her
         Beneficiary  pursuant  to this  Plan that  relate to the  Participant's
         Company Contribution Account.

1.3      "Company Contribution Amount" shall mean, for any Plan Year, any amount
         determined in accordance with Section 3.6.

                  "Company Matching  Account" shall mean (i) the sum of all of a
                                     Participant's   Annual   Company   Matching
                                     Amounts,  plus  (ii)  amounts  credited  in
                                     accordance    with   all   the   applicable
                                     crediting  provisions  of  this  Plan  that
                                     relate   to   the   Participant's   Company
                                     Matching    Account,    less    (iii)   all
                                     distributions  made to the  Participant  or
                                     his or her  Beneficiary  pursuant  to  this
                                     Plan  that  relate  to  the   Participant's
                                     Company Matching Account.

                  "Deduction  Limitation"  shall  mean the  following  described
                                     limitation  on a benefit that may otherwise
                                     be distributable pursuant to the provisions
                                     of this Plan. Except as otherwise provided,
                                     this  limitation  shall be  applied  to all
                                     distributions  that  are  "subject  to  the
                                     Deduction  Limitation"  under this Plan. If
                                     an Employer  determines in good faith prior
                                     to a  Change  in  Control  that  there is a
                                     reasonable likelihood that any compensation
                                     paid to a Participant for a taxable year of
                                     the Employer would not be deductible by the
                                     Employer by reason of the limitation  under
                                     Code  Section  162(m) or 280G,  then to the
                                     extent deemed  necessary by the

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                                     Employer to ensure  that the entire  amount
                                     of  any  distribution  to  the  Participant
                                     pursuant  to this Plan  prior to the Change
                                     in Control is deductible,  the Employer may
                                     defer all or any portion of a  distribution
                                     under  this  Plan.  Any  amounts   deferred
                                     pursuant to this limitation  shall continue
                                     to  be  credited/debited   with  additional
                                     amounts  in  accordance  with  Section  3.9
                                     below,  even if such  amount is being  paid
                                     out  in   installments.   The   amounts  so
                                     deferred and amounts credited thereon shall
                                     be distributed to the Participant or his or
                                     her   Beneficiary  (in  the  event  of  the
                                     Participant's   death)   at  the   earliest
                                     possible   date,   as   determined  by  the
                                     Employer  in  good  faith,   on  which  the
                                     deductibility   of  compensation   paid  or
                                     payable to the  Participant for the taxable
                                     year  of  the  Employer  during  which  the
                                     distribution is made will not be limited by
                                     Section  162(m)  or  Section  280G,  or  if
                                     earlier,  the effective date of a Change in
                                     Control.  Notwithstanding  anything  to the
                                     contrary  in  this  Plan,   the   Deduction
                                     Limitation   shall   not   apply   to   any
                                     distributions   made   after  a  Change  in
                                     Control.

                  "Deferral Account" shall  mean  (i)  the  sum  of  all  of  a
                                     Participant's Annual Deferral Amounts, plus
                                     (ii) amounts  credited in  accordance  with
                                     all the applicable  crediting provisions of
                                     this Plan that relate to the  Participant's
                                     Deferral    Account,    less    (iii)   all
                                     distributions  made to the  Participant  or
                                     his or her  Beneficiary  pursuant  to  this
                                     Plan  that  relate  to his or her  Deferral
                                     Account.

                  "Director" shall mean any member of the board of  directors of
                                     any Employer.

                  "Directors Fees"  shall  mean  the fees  paid by any  Employer
                                     during a Plan Year, including retainer fees
                                     and special  awards,  as  compensation  for
                                     serving on the board of directors.

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                  "Disability" or  "Disabled"  shall mean a period of disability
                                     during which a  Participant  qualifies  for
                                     permanent  disability  benefits  under  the
                                     Participant's      Employer's     long-term
                                     disability  plan, or, if a Participant does
                                     not participate in such a plan, a period of
                                     disability  during  which  the  Participant
                                     would   have    qualified   for   permanent
                                     disability  benefits  under such a plan had
                                     the Participant  been a participant in such
                                     a  plan,   as   determined   in  the   sole
                                     discretion   of  the   Committee.   If  the
                                     Participant's  Employer  does  not  sponsor
                                     such a plan,  or  discontinues  to  sponsor
                                     such a plan, Disability shall be determined
                                     by the Committee in its sole discretion.

                  "Disability  Benefit"  shall  mean the  benefit  set  forth in
                                     Article 8.

                  "ElectionForm"  shall mean the form  established  from time to
                                     time by the  Committee  that a  Participant
                                     completes,   signs  and   returns   to  the
                                     Committee  to make an  election  under  the
                                     Plan.

                  "Employee"  shall  mean a  person  who is an  employee  of any
                                     Employer.

                  "Employer(s)" shall  mean the  Company,  including  any of its
                                     subsidiaries    or   affiliates   (now   in
                                     existence or hereafter  formed or acquired)
                                     that have been  designated  by the Board to
                                     participate in the Plan.

                  "ERISA"  shall mean the Employee  Retirement  Income  Security
                                     Act of 1974, as it may be amended from time
                                     to time.

                  "401(k)  Plan" shall be the California  Water Service  Company
                                     Savings Plan and Trust  Agreement,  as most
                                     recently  amended or restated by California
                                     Water Service Company.

                  "Maximum 401(k) Amount" with respect to a  Participant,  shall
                                     be   the   maximum   amount   of   elective
                                     contributions  that  can be  made  by  such
                                     Participant,  consistent  with Code Section
                                     402(g) and the  limitations of Code Section

<PAGE>

                                     401(k)(3),  for a given plan year under the
                                     401(k) Plan.

                  "Meeting Fees"  shall mean the fees paid to a  Director  by an
                                     Employer  for  attending  meetings  of  the
                                     board or  committees  of the  board of such
                                     Employer or the Company.

                  "Participant" shall mean any  Employee or Director  (i) who is
                                     selected to participate  in the Plan,  (ii)
                                     who  elects  to  participate  in the  Plan,
                                     (iii)  who  signs  a  Plan  Agreement,   an
                                     Election Form and a Beneficiary Designation
                                     Form,  (iv) whose  signed  Plan  Agreement,
                                     Election Form and  Beneficiary  Designation
                                     Form are accepted by the Committee, (v) who
                                     commences  participation  in the Plan,  and
                                     (vi)   whose   Plan   Agreement   has   not
                                     terminated.  A spouse or former spouse of a
                                     Participant  shall  not  be  treated  as  a
                                     Participant  in the Plan or have an account
                                     balance  under the Plan,  even if he or she
                                     has  an  interest   in  the   Participant's
                                     benefits  under  the  Plan as a  result  of
                                     applicable  law  or  property   settlements
                                     resulting from legal separation or divorce.

                  "Plan"   shall mean the Company's Deferred  Compensation Plan,
                                     which shall be evidenced by this instrument
                                     and by each Plan Agreement,  as they may be
                                     amended from time to time.

                  "Plan    Agreement" shall mean a written agreement,  as may be
                                     amended from time to time, which is entered
                                     into  by  and  between  an  Employer  and a
                                     Participant.  Each Plan Agreement  executed
                                     by  a  Participant  and  the  Participant's
                                     Employer  shall provide for the deferral of
                                     Annual Base  Salary,  at the  Participant's
                                     election   entire  benefit  to  which  such
                                     Participant  is  entitled  under  the Plan;
                                     should   there   be  more   than  one  Plan
                                     Agreement,  the Plan Agreement  bearing the
                                     latest date of  acceptance  by the Employer
                                     shall    supersede    all   previous   Plan
                                     Agreements  in  their

<PAGE>

                                     entirety and shall govern such entitlement.
                                     The  terms  of any  Plan  Agreement  may be
                                     different for any Participant, and any Plan
                                     Agreement may provide  additional  benefits
                                     not set  forth  in the  Plan or  limit  the
                                     benefits otherwise provided under the Plan;
                                     provided, however, that any such additional
                                     benefits  or  benefit  limitations  must be
                                     agreed  to by  both  the  Employer  and the
                                     Participant.

                  "Plan    Year" shall,  except for the First Plan Year,  mean a
                                     period  beginning  on  January  1  of  each
                                     calendar   year  and   continuing   through
                                     December 31 of such calendar year.

                  "Pre-Retirement  Survivor  Benefit" shall mean the benefit set
                                     forth in Article 6.

                  "Retirement,"   "Retire(s)"  or  "Retired"  shall  mean,  with
                                     respect  to  an  Employee,  severance  from
                                     employment   from  all  Employers  for  any
                                     reason other than a leave of absence, death
                                     or Disability on or after the date at which
                                     the age plus Years of Service total 60; and
                                     shall mean with  respect to a Director  who
                                     is not an Employee, severance of his or her
                                     directorships  with  all  Employers  on  or
                                     after  the later of (y) the  attainment  of
                                     age seventy-five  (75), or age seventy (70)
                                     if the Director is also an Employee, or (z)
                                     in the sole discretion of the Committee, an
                                     age later than age  seventy-five  (75),  or
                                     age seventy (70) if the Director is also an
                                     Employee.  If  a  Participant  is  both  an
                                     Employee and a Director,  Retirement  shall
                                     not occur  until he or she  Retires as both
                                     an   Employee   and   a   Director,   which
                                     Retirement   shall  be   deemed   to  be  a
                                     Retirement   as   a   Director;   provided,
                                     however, that such a Participant may elect,
                                     at least three  years  prior to  Retirement
                                     and in  accordance  with the  policies  and
                                     procedures established by the Committee, to
                                     Retire  for  purposes  of this  Plan at the
                                     time  he or  she  Retires

<PAGE>

                                     as an Employee,  which  Retirement shall be
                                     deemed to be a Retirement as an Employee.

                  "Retirement  Benefit"  shall  mean the  benefit  set  forth in
                                     Article 5.

                  "Short-Term Payout" shall mean the payout set forth in Section
                                     4.1.

                  "Termination  Benefit"  shall  mean the  benefit  set forth in
                                     Article 7.

                  "Termination  of  Employment"   shall  mean  the  severing  of
                                     employment  with all Employers,  or service
                                     as a Director of all Employers, voluntarily
                                     or involuntarily, for any reason other than
                                     Retirement,   Disability,   death   or   an
                                     authorized   leave   of   absence.   If   a
                                     Participant  is  both  an  Employee  and  a
                                     Director, a Termination of Employment shall
                                     occur only upon the termination of the last
                                     position held; provided, however, that such
                                     a  Participant  may elect,  at least  three
                                     years before  Termination of Employment and
                                     in   accordance   with  the   policies  and
                                     procedures established by the Committee, to
                                     be  treated  for  purposes  of this Plan as
                                     having   experienced   a   Termination   of
                                     Employment  at the  time  he or she  ceases
                                     employment with an Employer as an Employee.

                  "Trust"  shall mean one or more trusts established pursuant to
                                     that certain Master Trust Agreement,  dated
                                     as of January 1, 2001  between  the Company
                                     and the trustee named  therein,  as amended
                                     from time to time.

                  "Unforeseeable    Financial    Emergency"    shall   mean   an
                                     unanticipated  emergency  that is caused by
                                     an  event   beyond   the   control  of  the
                                     Participant  that  would  result  in severe
                                     financial   hardship  to  the   Participant
                                     resulting  from (i) a sudden and unexpected
                                     illness or accident of the Participant or a
                                     dependent of the  Participant,  (ii) a loss
                                     of  the   Participant's   property  due  to
                                     casualty, or (iii) such other extraordinary

<PAGE>

                                     and unforeseeable  circumstances arising as
                                     a result of events  beyond  the  control of
                                     the  Participant,  all as determined in the
                                     sole discretion of the Committee.

                  "Valuation Date"  shall  mean the  date,  no more than 30 days
                                     before a distribution, that a Participant's
                                     account  is  valued  for  the  purposes  of
                                     calculating  the amount of a  distribution,
                                     as determined by the Committee.

                  "Withdrawal  Amount"  shall  mean  the  amount  elected  by  a
                                     Participant as a  distribution  pursuant to
                                     Section  4.4  (net  of the  10%  withdrawal
                                     penalty).

                  "Years   of Service" shall mean the total number of full years
                                     in which a Participant has been employed by
                                     one or more Employers. For purposes of this
                                     definition, a year of employment shall be a
                                     365-day  period (or  366-day  period in the
                                     case of a leap  year)  that,  for the first
                                     year  of   employment,   commences  on  the
                                     Employee's date of hiring and that, for any
                                     subsequent    year,    commences    on   an
                                     anniversary   of  that  hiring  date.   Any
                                     partial  year of  employment  shall  not be
                                     counted.

                                   ARTICLE 2
                       Selection, Enrollment, Eligibility

2.1      Selection by Committee. Participation in the Plan shall be limited to a
         select  group  of  management  and  highly  compensated  Employees  and
         Directors of the Employers,  as determined by the Committee in its sole
         discretion.  From that group,  the Committee shall select,  in its sole
         discretion, Employees and Directors to participate in the Plan.

2.2      Enrollment Requirements. As a condition to participation, each selected
         Employee  or  Director  shall  complete,  execute  and  return  to  the
         Committee  a  Plan  Agreement,  an  Election  Form  and  a  Beneficiary
         Designation  Form,  all within 30 days after he or she is  selected  to
         participate  in the Plan. In addition,  the Committee  shall  establish
         from time to time such other  enrollment  requirements as it determines
         in its sole discretion are necessary.

2.3      Eligibility;  Commencement  of  Participation.  Provided an Employee or
         Director  selected to  participate  in the Plan has met all  enrollment
         requirements  set forth in this  Plan and  required  by the  Committee,
         including  returning all required documents to the Committee within the
         specified  time  period,  that  Employee  or  Director  shall  commence
         participation

<PAGE>
         in the Plan on the first day of the month  following the month in which
         the Employee or Director completes all enrollment  requirements.  If an
         Employee or a Director fails to meet all such  requirements  within the
         period  required,  in  accordance  with Section 2.2,  that  Employee or
         Director  shall not be  eligible to  participate  in the Plan until the
         first day of the Plan Year  following the delivery to and acceptance by
         the Committee of the required documents.

2.4      Termination  of  Participation  and/or  Deferrals.   If  the  Committee
         determines  in good faith that a Participant  no longer  qualifies as a
         member of a select group of management or highly compensated employees,
         as membership  in such group is determined in accordance  with Sections
         201(2),  301(a)(3) and 401(a)(1) of ERISA, the Committee shall have the
         right, in its sole discretion,  to (i) terminate any deferral  election
         the  Participant  has made for the  remainder of the Plan Year in which
         the  Participant's   membership   status  changes,   (ii)  prevent  the
         Participant   from  making  future  deferral   elections  and/or  (iii)
         immediately  distribute  the  Participant's  then Account  Balance as a
         Termination  Benefit and terminate the  Participant's  participation in
         the Plan.

                                   ARTICLE 3
              Deferral Commitments/Company Matching/Crediting/Taxes

3.1      Minimum and Maximum Deferrals.

         (a)      Annual Base Salary and Director's  Fees. For each Plan Year, a
                  Participant  may elect to defer, as his or her Annual Deferral
                  Amount,  Annual Base Salary and/or Director's Fees and Meeting
                  Fees  in  the  following   minimum   amounts  and   applicable
                  percentage for each deferral elected:

---------------------------------- ------------------- -------------------------

                Deferral              Minimum Amount      Maximum Percentage
---------------------------------- ------------------- -------------------------

    Annual Base Salary                    $5,000                   50%
---------------------------------- ------------------- -------------------------

    Directors Fees and Meeting            $5,000                  100%
    Fees (combined)
---------------------------------- ------------------- -------------------------

                  If an election is made for less than stated minimum amounts or
                  percentage,  or if no  election is made,  the amount  deferred
                  shall be zero.

         (b)      Short  Plan  Year.   Notwithstanding   the  foregoing,   if  a
                  Participant first becomes a Participant after the first day of
                  a Plan Year, the minimum Annual Base Salary  deferral shall be
                  an amount equal to the minimum set forth above,  multiplied by
                  a fraction,  the  numerator of which is the number of complete
                  months remaining in the Plan Year and the denominator of which
                  is 12.  Notwithstanding the foregoing,  if a Participant first
                  becomes a Participant  after the first day of a Plan

<PAGE>

                  Year,  the maximum  Annual  Deferral  Amount,  with respect to
                  Annual Base Salary,  Directors Fees and Meeting Fees, shall be
                  limited  to the amount of  compensation  not yet earned by the
                  Participant  as of the date  the  Participant  submits  a Plan
                  Agreement and Election Form to the Committee for acceptance.

3.2      Election to Defer; Effect of Election Form.

         (a)      First  Plan  Year.   In   connection   with  a   Participant's
                  commencement  of  participation  in the Plan, the  Participant
                  shall make an irrevocable  deferral election for the Plan Year
                  in which the Participant commences  participation in the Plan,
                  along  with  such  other  elections  as  the  Committee  deems
                  necessary or desirable  under the Plan. For these elections to
                  be valid,  the Election  Form must be completed  and signed by
                  the  Participant,   timely  delivered  to  the  Committee  (in
                  accordance  with  Section  2.2  above)  and  accepted  by  the
                  Committee.

         (b)      Subsequent  Plan  Years.  For each  succeeding  Plan Year,  an
                  irrevocable  deferral  election  for that Plan Year,  and such
                  other  elections as the Committee deems necessary or desirable
                  under the  Plan,  shall be made by  timely  delivering  to the
                  Committee, in accordance with its rules and procedures, before
                  the end of the Plan Year preceding the Plan Year for which the
                  election is made, a new  Election  Form.  If no such  Election
                  Form is timely  delivered for a Plan Year, the Annual Deferral
                  Amount shall be zero for that Plan Year.

3.3      Withholding of Annual Deferral Amounts.  For each Plan Year, the Annual
         Base Salary  portion of the Annual  Deferral  Amount  shall be withheld
         from each  regularly  scheduled  Annual  Base  Salary  payroll in equal
         amounts,  as adjusted  from time to time for increases and decreases in
         Annual Base Salary.  The Directors  Fees or Meeting Fees portion of the
         Annual  Deferral  Amount  shall be withheld at the time the fees are or
         otherwise would be paid to the Participant,  whether or not this occurs
         during the Plan Year itself.

3.4      Other Annual Deferral  Amounts.  Any portion of a Participant's  Annual
         Base Salary that is determined in good faith by the Employer as subject
         to a  reasonable  likelihood  of not being  deductible  by the Employer
         solely by reason of sections 162(m) or 280G of the Code,  shall, at the
         discretion of the Committee,  be treated as an Annual Deferral  Amount.
         Such  amount  shall be deemed to be an  Annual  Deferral  Amount in the
         taxable  year of the Employer  during  which a loss of deduction  would
         occur.

3.5      Annual Company Matching Amount. A Participant's Annual Company Matching
         Amount for any Plan Year shall be made by a Participant's  Employer and
         shall be equal to 50% of the  Participant's  Annual Deferral Amount for
         such  Plan  Year,  up to an  amount  that  does  not  exceed  4% of the
         Participant's Annual Base Salary, reduced by the amount of any matching
         contributions made to the 401(k) Plan on his or her behalf for the plan
         year of the  401(k)  Plan  that  corresponds  to the  Plan  Year.  If a
         Participant is not employed by an Employer,  or is no longer  providing
         services as a Director, as of the last day of a Plan Year other than by
         reason of his or her Retirement or death,  the Annual Company  Matching
         Amount for such Plan Year shall be zero.  In the event of Retirement or
         death,

<PAGE>

         a Participant shall be credited with the Annual Company Matching Amount
         for the Plan Year in which he or she Retires or dies.

3.6      Company  Contribution  Amount.  For each Plan Year,  an Employer in its
         sole  discretion  may,  but is not  required  to,  credit any amount it
         desires to any Participant's  Company  Contribution  Account under this
         Plan,   which  amount  shall  be  for  that   Participant  the  Company
         Contribution  Amount for that Plan Year.  The amount so  credited  to a
         Participant  may be smaller or larger  than the amount  credited to any
         other  Participant,  and the amount  credited to any  Participant for a
         Plan  Year may be zero,  even  though  one or more  other  Participants
         receive a Company  Contribution  Amount for that Plan Year. The Company
         Contribution  Amount,  if any, shall be credited no later than the last
         day of the Plan Year. If a  Participant  is not employed by an Employer
         no later  than the last day of a Plan Year  other than by reason of his
         or her  Retirement or death while  employed,  the Company  Contribution
         Amount for that Plan Year shall be zero.

3.7      Investment  of  Trust  Assets.  The  Trustee  of  the  Trust  shall  be
         authorized,  upon written  instructions  received from the Committee or
         investment  manager appointed by the Committee,  to invest and reinvest
         the  assets  of the  Trust  in  accordance  with the  applicable  Trust
         Agreement,  including the disposition of stock and  reinvestment of the
         proceeds  in  one  or  more  investment   vehicles  designated  by  the
         Committee.

3.8      Vesting.

         (a)      Subject to section 3.11, a  Participant  shall at all times be
                  100%  vested  in his  or  her  Deferral  Account  and  Company
                  Matching Account.

         (b)      Subject to Section 3.11, a Participant shall be 100% vested in
                  his or her Company Contribution Account upon death, disability
                  or Retirement.  Prior to death,  Disability or  Retirement,  a
                  Participant shall be vested in his or her Company Contribution
                  Account  in  accordance  with  the  vesting  of  each  Company
                  Contribution  Amount,  as  directed  by  the  Employer  in its
                  discretion,  at the time such  contribution is credited to the
                  Company Contribution  Account. If the Employer fails to direct
                  the  vesting,  the  Committee  shall direct the vesting of any
                  Company Contribution Amount.

         (c)      Notwithstanding  anything to the  contrary  contained  in this
                  Section  3.8,  in  the  event  of  a  Change  in  Control,   a
                  Participant's  Company  Contribution Account shall immediately
                  become 100% vested (if it is not already  vested in accordance
                  with the above vesting schedules).

         (d)      Notwithstanding subsection (c), at the Committee's discretion,
                  the vesting  schedule  for a  Participant's  Company  Matching
                  Account  may  not  be  accelerated  to  the  extent  that  the
                  Committee  determines that such  acceleration  would cause the
                  deduction  limitations  of Section  280G of the Code to become
                  effective.  In the event that all of a  Participant's  Company
                  Contribution  Account and/or Company  Matching  Account is not
                  vested pursuant to such a  determination,  the Participant may
                  request   independent    verification   of   the   Committee's
                  calculations  with respect

<PAGE>

                  to  the  application  of  Section  280G.  In  such  case,  the
                  Committee must provide to the  Participant  within 45 business
                  days of such a request an opinion from a nationally recognized
                  accounting firm selected by the Participant  (the  "Accounting
                  Firm").  The opinion shall state the Accounting Firm's opinion
                  that any  limitation  in the vested  percentage  hereunder  is
                  necessary  to avoid the  limits of  Section  280G and  contain
                  supporting  calculations.  The cost of such  opinion  shall be
                  paid for by the Company.

3.9      Crediting/Debiting of Account Balances. In accordance with, and subject
         to, the rules and procedures that are established  from time to time by
         the  Committee,  in its sole  discretion,  amounts shall be credited or
         debited  to a  Participant's  Account  Balance in  accordance  with the
         following rules:

         (a)      Election of Measurement  Funds.  A Participant,  in connection
                  with his or her initial  deferral  election in accordance with
                  Section 3.2(a) above,  shall elect,  on the Election Form, one
                  or more  Measurement  Fund(s) (as described in Section  3.9(c)
                  below) to be used to determine  the  additional  amounts to be
                  credited to his or her Account  Balance  each  business day on
                  which the Participant participates in the Plan, unless changed
                  in accordance with the next sentence. The Participant may (but
                  is not required to) elect,  by  submitting an Election Form to
                  the Committee that is accepted by the Committee, to change the
                  portion  of his or  her  Account  Balance  allocated  to  each
                  previously or newly elected Measurement Fund and such election
                  shall be effective as soon as practicable.

         (b)      Proportionate  Allocation. In making any election described in
                  Section  3.9(a) above,  the  Participant  shall specify on the
                  Election  Form,  in increments  of one (1)  percentage  points
                  (1%),  the  percentage  of his or her  Account  Balance  to be
                  allocated to a  Measurement  Fund (as if the  Participant  was
                  making  an  investment  in that  Measurement  Fund  with  that
                  portion of his or her Account Balance).

         (c)      Measurement  Funds.  The  Participant may elect one or more of
                  the  measurement  funds,  based on certain  mutual  funds (the
                  "Measurement   Funds")   selected   by   the   Committee   and
                  communicated to the  Participants for the purpose of crediting
                  additional amounts to his or her Account Balance

                  As  necessary,  the  Committee  may,  in its sole  discretion,
                  discontinue,  substitute or add a Measurement Fund at anytime.
                  Each such  action will take effect no later than the first day
                  of the  calendar  quarter that follows by thirty (30) days the
                  day on which the Committee gives Participants  advance written
                  notice of such change.

         (d)      Crediting or Debiting Method.  The performance of each elected
                  Measurement   Fund  (either  positive  or  negative)  will  be
                  determined by the  Committee,  in its  reasonable  discretion,
                  based on the performance of the Measurement  Funds themselves.
                  A  Participant's  Account Balance shall be credited or debited
                  on a daily basis based on the performance of each  Measurement
                  Fund  selected  by  the  Participant,  as  determined  by  the
                  Committee   in  its  sole   discretion,   as   though   (i)  a
                  Participant's Account Balance were invested in the Measurement
                  Fund(s) selected

<PAGE>

                  by the  Participant,  in the  percentages  applicable  to such
                  Participant's  Account,  as of the close of  business  on each
                  business  day, at the closing  price on such date,  subject to
                  reasonable  delays  for  credits or debits  after the  Eastern
                  Standard Time close of the day's  markets for publicly  traded
                  funds; (ii) the portion of the Annual Deferral Amount that was
                  actually  deferred  during any calendar month were invested in
                  the Measurement  Fund(s) selected by the  Participant,  in the
                  percentages  applicable to such month, no later than the close
                  of business on the first  business  day after the day on which
                  such  amounts are  actually  deferred  from the  Participant's
                  Annual Base Salary  through  reductions in his or her payroll,
                  at the closing price on such date; and (iii) any  distribution
                  made  to  a  Participant  that  decreases  such  Participant's
                  Account  Balance  ceased  being  invested  in the  Measurement
                  Fund(s),  in the percentages  applicable to such Participant's
                  Account,  no earlier than the  Valuation  Date, at the closing
                  price on such date. The Participant's  Annual Company Matching
                  Amount  shall  be  credited  to his or  her  Company  Matching
                  Account for purposes of this Section  3.9(d) no later than the
                  close of business on the first business day in February of the
                  Plan Year following the Plan Year to which it relates.

         (e)      No Actual Investment.  Notwithstanding  any other provision of
                  this  Plan  that  may  be  interpreted  to the  contrary,  the
                  Measurement  Funds  are to be used  for  measurement  purposes
                  only,  and a  Participant's  election of any such  Measurement
                  Fund,  the allocation to his or her Account  Balance  thereto,
                  the  calculation  of  additional  amounts and the crediting or
                  debiting of amounts to a  Participant's  Account Balance shall
                  not be  considered  or  construed  in any  manner as an actual
                  investment  of  his  or  her  Account   Balance  in  any  such
                  Measurement Fund. In the event that the Company or the Trustee
                  (as that term is defined in the Trust), in its own discretion,
                  decides  to  invest  funds  in any  or all of the  Measurement
                  Funds,  no  Participant  shall  have any  rights in or to such
                  investments  themselves.  Without  limiting the  foregoing,  a
                  Participant's   Account  Balance  shall  at  all  times  be  a
                  bookkeeping  entry only and shall not represent any investment
                  made on his or her behalf by the  Company  or the  Trust;  the
                  Participant shall at all times remain an unsecured creditor of
                  the Company.

3.10     FICA and Other Taxes.

         (a)      Annual Deferral Amounts. For each Plan Year in which an Annual
                  Deferral  Amount is being  withheld  from a  Participant,  the
                  Participant's  Employer(s) shall withhold from that portion of
                  the  Participant's  Annual  Base  Salary  that  is  not  being
                  deferred,  in a  manner  determined  by the  Employer(s),  the
                  Participant's share of FICA and other employment taxes on such
                  Annual Deferral Amount. If necessary, the Committee may reduce
                  the  Annual  Deferral  Amount  in order to  comply  with  this
                  Section 3.10.

         (b)      Company Matching Amounts. When a participant becomes vested in
                  a  portion  of  his  or  her  Company  Matching  Account,  the
                  Participant's    Employer(s)    shall    withhold   from   the
                  Participant's  Annual Base Salary that is not  deferred,  in a
                  manner determined by the Employer(s),  the Participant's share
                  of  FICA  and  other

<PAGE>

                  employment  taxes. If necessary,  the Committee may reduce the
                  vested portion of the  Participant's  Company Matching Account
                  in order to comply with this Section 3.10.

         (c)      Distributions.  The Participant's Employer(s),  or the trustee
                  of the  Trust,  shall  withhold  from any  payments  made to a
                  Participant  under  this  Plan all  federal,  state  and local
                  income,  employment and other taxes required to be withheld by
                  the  Employer(s),  or the trustee of the Trust,  in connection
                  with  such  payments,  in  amounts  and  in  a  manner  to  be
                  determined in the sole  discretion of the  Employer(s) and the
                  trustee of the Trust.

3.11     Forfeiture for Criminal Acts. Any  Participant who admits or pleads "no
         contest" to, or is convicted  of, any criminal act against any Employer
         shall  forfeit  all rights and  benefits  under the Plan  (excluding  a
         Participant's aggregate Annual Deferral Amounts),  regardless of age or
         service.

                                   ARTICLE 4
             Short-Term Payout; Unforeseeable Financial Emergencies;
                               Withdrawal Election

4.1      Short-Term  Payout. In connection with each election to defer an Annual
         Deferral  Amount,  a  Participant  may  irrevocably  elect to receive a
         future  Short-Term  Payout  from the Plan with  respect to such  Annual
         Deferral Amount.  Subject to the Deduction  Limitation,  the Short-Term
         Payout  shall be a lump-sum  payment in an amount  that is equal to the
         Annual Deferral  Amount plus amounts  credited or debited in the manner
         provided  in  Section  3.9  above  on that  amount,  determined  at the
         Valuation Date  preceding the time that the  Short-Term  Payout becomes
         payable (rather than the date of a Termination of Employment).  Subject
         to the Deduction  Limitation and the other terms and conditions of this
         Plan, each Short-Term  Payout elected shall be paid out during a 60-day
         period  commencing  immediately  after  the last  day of any Plan  Year
         designated by the  Participant  that is at least three Plan Years after
         the Plan Year in which the Annual Deferral Amount is actually deferred.
         By way of example,  if a three-year,  Short-Term  Payout is elected for
         Annual  Deferral  Amounts that are deferred in the Plan Year commencing
         January 1, 2001, the three-year, Short-Term Payout would become payable
         during a 60-day period commencing January 1, 2005.

4.2      Other Benefits Take Precedence Over  Short-Term.  Should an event occur
         that triggers a benefit under Article 5, 6, 7 or 8, any Annual Deferral
         Amount, plus amounts credited or debited thereon,  that is subject to a
         Short-Term  Payout  election  under  Section  4.1  shall not be paid in
         accordance  with Section 4.1 but shall be paid in  accordance  with the
         other applicable Article.

4.3      Withdrawal  Payout/Suspensions for Unforeseeable Financial Emergencies.
         If the Participant  experiences an Unforeseeable  Financial  Emergency,
         the Participant may petition the Committee to (i) suspend any deferrals
         required to be made by a  Participant  and/or (ii) receive a partial or
         full  payout from the Plan.  The payout  shall not exceed the lesser of
         the  Participant's  Account Balance,  calculated as if such Participant
         were

<PAGE>

         receiving a Termination  Benefit,  or the amount  reasonably  needed to
         satisfy the Unforeseeable Financial Emergency.  If, subject to the sole
         discretion  of the  Committee,  the petition  for a  suspension  and/or
         payout is  approved,  suspension  shall  take  effect  upon the date of
         approval  and any  payout  shall be made  within 60 days of the date of
         approval. The payment of any amount under this Section 4.3 shall not be
         subject to the Deduction Limitation.

4.4      Withdrawal  Election.  A Participant (or, after a Participant's  death,
         his or her  Beneficiary) may elect, at any time, to withdraw all of his
         or  her  Account  Balance,  calculated  as  if  there  had  occurred  a
         Termination  of  Employment  as of  the  day of  the  election,  less a
         withdrawal  penalty  equal to 10% of such amount  resulting  in the net
         Withdrawal  Amount.  This  election can be made at any time,  before or
         after Retirement,  Disability,  death or Termination of Employment, and
         whether or not the  Participant  (or  Beneficiary) is in the process of
         being paid pursuant to an installment payment schedule.  If made before
         Retirement,  Disability or death,  a  Participant's  Withdrawal  Amount
         shall be his or her Account Balance calculated as if there had occurred
         a Termination  of Employment as of the day of the election.  No partial
         withdrawals of the Withdrawal Amount shall be allowed.  The Participant
         (or his or her  Beneficiary)  shall  make this  election  by giving the
         Committee  advance  written notice of the election in a form determined
         from  time to time by the  Committee.  The  Participant  (or his or her
         Beneficiary)  shall be paid the Withdrawal Amount within 60 days of his
         or her election.  Once the Withdrawal Amount is paid, the Participant's
         participation in the Plan shall terminate and the Participant shall not
         be  eligible  to  participate  in the Plan until the  beginning  of the
         second Plan Year following the year in which the withdrawal occurs. The
         payment of this Withdrawal Amount shall not be subject to the Deduction
         Limitation.

                                   ARTICLE 5
                               Retirement Benefit

5.1      Retirement Benefit.  Subject to the Deduction Limitation, a Participant
         who Retires shall receive, as a Retirement Benefit,  his or her Account
         Balance.

5.2      Payment of Retirement Benefit. A Participant, in connection with his or
         her  commencement  of  participation  in the  Plan,  shall  elect on an
         Election  Form to  receive  the  Retirement  Benefit  in a lump  sum or
         pursuant  to an Annual  Installment  Method of one (1) to fifteen  (15)
         years.  The  Participant  may annually change his or her election to an
         allowable  alternative  payout period by submitting a new Election Form
         to the Committee,  provided that any such Election Form is submitted at
         least one year prior to the Participant's Retirement and is accepted by
         the Committee in its sole  discretion.  The Election Form most recently
         accepted by the Committee at least one year prior to  retirement  shall
         govern the payout of the Retirement  Benefit. If a Participant does not
         make  any  election  with  respect  to the  payment  of the  Retirement
         Benefit, then such benefit shall be payable in a lump sum. The lump-sum
         payment in an amount  determined as the Valuation Date,  shall be made,
         or installment payments shall commence, no later than 60 days after the
         effective date of the Participant's  Retirement.  Installments  payable
         after  the  year  of  Retirement  shall  be  paid  by  March  1 of each
         subsequent year of such payments.  Any payment made shall be subject to
         the Deduction Limitation.

<PAGE>

5.3      Death Prior to Completion of Retirement  Benefit. If a Participant dies
         after Retirement but before the Retirement Benefit is paid in full, the
         Participant's  unpaid  Retirement  Benefit  payments shall continue and
         shall be paid to the  Participant's  Beneficiary (a) over the remaining
         number of years and in the same amounts as that benefit would have been
         paid to the Participant had the Participant  survived, or (b) in a lump
         sum, if requested by the Beneficiary and allowed in the sole discretion
         of the Committee,  that is equal to the Participant's  unpaid remaining
         Account Balance.

                                   ARTICLE 6
                         Pre-Retirement Survivor Benefit

6.1      Pre-Retirement  Survivor Benefit.  Subject to the Deduction Limitation,
         the Participant's  Beneficiary shall receive a Pre-Retirement  Survivor
         Benefit in a single lump sum equal to the Participant's Account Balance
         as of the  Valuation  Date,  if the  Participant  dies before he or she
         Retires,   experiences  a  Termination   of  Employment  or  suffers  a
         Disability.  The lump-sum  payment shall be made, no later than 60 days
         after the last day of the Plan Year in which the  Committee is provided
         with proof that is satisfactory  to the Committee of the  Participant's
         death. Any payment made shall be subject to the Deduction Limitation.

                                   ARTICLE 7
                               Termination Benefit

7.1      Termination  Benefit.   Subject  to  the  Deduction   Limitation,   the
         Participant  shall  receive a  Termination  Benefit,  which  shall be a
         lump-sum payment equal to the  Participant's  Account Balance as of the
         Valuation Date if a Participant experiences a Termination of Employment
         prior to his or her  Retirement,  death  or  Disability.  The  lump-sum
         payment  shall be made no later  than 60 days after the last day of the
         Plan Year in which  the  Participant  experiences  the  Termination  of
         Employment.  Any  payment  made  shall  be  subject  to  the  Deduction
         Limitation.

                                   ARTICLE 8
                    Disability Deferrals, Waiver and Benefit

8.1      Disability.

         (a)      Deferrals. A participant who is determined by the Committee to
                  be  Disabled  may  continue  to have the  Annual  Base  Salary
                  portion of the Annual  Deferral Amount withheld for any period
                  the Participant continues to receive 100% of his or her Annual
                  Base Salary that was in effect prior to his or her Disability.

         (b)      Waiver of Deferral.  A  Participant  who is  determined by the
                  Committee to be suffering  from a Disability  shall be excused
                  from  fulfilling  that portion of the Annual  Deferral  Amount
                  commitment  that would  otherwise  have been  withheld  from a
                  Participant's  Annual Base Salary or Directors Fees or Meeting
                  Fees for the Plan  Year  during  which the  Participant  first
                  suffers a  Disability  only if less  than 100% of Annual  Base
                  Salary. During the period of Disability, the Participant shall
                  not be allowed to make any additional deferral elections,  but
                  will  continue to be  considered a  Participant  for all other
                  purposes of this Plan.

<PAGE>

         (c)      Return to Work. If a  Participant  returns to  employment,  or
                  service as a Director,  with an  Employer,  after a Disability
                  ceases,  the Participant may elect to defer an Annual Deferral
                  Amount  for the  Plan  Year  following  his or her  return  to
                  employment or service and for every Plan Year thereafter while
                  a Participant  in the Plan;  provided such deferral  elections
                  are otherwise allowed and an Election Form is delivered to and
                  accepted by the Committee for each such election in accordance
                  with Section 3.2 above.

8.2      Continued  Eligibility;  Disability Benefit. A Participant  suffering a
         Disability shall, for benefit purposes under this Plan,  continue to be
         considered  to be  employed,  or in the  service  of an  Employer  as a
         Director,  and  shall be  eligible  for the  benefits  provided  for in
         Articles  4, 5, 6 or 7 in  accordance  with  the  provisions  of  those
         Articles. Notwithstanding the above, the Committee shall have the right
         to, in its sole and absolute  discretion  and for purposes of this Plan
         only, and must in the case of a Participant  who is otherwise  eligible
         to Retire,  deem the  Participant to have  experienced a Termination of
         Employment,  or in the case of a Participant who is eligible to Retire,
         to have Retired,  at any time (or in the case of a  Participant  who is
         eligible to Retire,  as soon as practicable)  after such Participant is
         determined to be suffering a Disability,  in which case the Participant
         shall receive a Disability  Benefit equal to his or her Account Balance
         at the time of the Committee's determination;  provided,  however, that
         should the  Participant  otherwise have been eligible to Retire,  he or
         she shall be paid in accordance with Article 5. The Disability  Benefit
         may be paid in a lump sum within 60 days of the Committee's exercise of
         such right.  In the event the Disability is determined by the Committee
         to be  permanent,  the  Participant  shall be deemed to be  eligible to
         Retire and receive  benefits in accordance  with Article 5. Any payment
         made shall be subject to the Deduction Limitation.

                                   ARTICLE 9
                             Beneficiary Designation

9.1      Beneficiary.  Each  Participant  shall have the right,  at any time, to
         designate  his  or  her  Beneficiary(ies)  (both  primary  as  well  as
         contingent)  to  receive  any  benefits  payable  under  the  Plan to a
         beneficiary upon the death of a Participant. The Beneficiary designated
         under this Plan may be the same as or  different  from the  Beneficiary
         designation   under  any  other  plan  of  an  Employer  in  which  the
         Participant participates.

9.2      Beneficiary  Designation;  Change; Spousal Consent. A Participant shall
         designate  his  or  her  Beneficiary  by  completing  and  signing  the
         Beneficiary  Designation Form, and returning it to the Committee or its
         designated  agent.  A  Participant  shall  have the  right to  change a
         Beneficiary  by  completing,  signing and otherwise  complying with the
         terms of the Beneficiary Designation Form and the Committee's rules and
         procedures,  as in effect from time to time. If the  Participant  names
         someone  other  than his or her  spouse  as a  Beneficiary,  a  spousal
         consent,  in the form  designated by the  Committee,  must be signed by
         that  Participant's  spouse and  returned  to the  Committee.  Upon the
         acceptance by the Committee of a new Beneficiary  Designation Form, all
         Beneficiary  designations  previously  filed  shall  be  canceled.  The
         Committee shall be entitled to rely on the last

<PAGE>

         Beneficiary  Designation  Form filed by the Participant and accepted by
         the Committee prior to his or her death.

9.3      Acknowledgment.   No   designation   or  change  in  designation  of  a
         Beneficiary  shall be  effective  until  received and  acknowledged  in
         writing by the Committee or its designated agent.

9.4      No  Beneficiary  Designation.  If a  Participant  fails to  designate a
         Beneficiary  as provided in Sections  9.1, 9.2 and 9.3 above or, if all
         designated  Beneficiaries  predecease  the  Participant or die prior to
         complete   distribution  of  the  Participant's   benefits,   then  the
         Participant's  designated  Beneficiary shall be deemed to be his or her
         surviving  spouse.  If the  Participant  has no surviving  spouse,  the
         benefits  remaining under the Plan to be paid to a Beneficiary shall be
         payable to the executor or personal representative of the Participant's
         estate.

9.5      Doubt  as to  Beneficiary.  If the  Committee  has any  doubt as to the
         proper  Beneficiary  to receive  payments  pursuant  to this Plan,  the
         Committee shall have the right, exercisable in its discretion, to cause
         the Participant's  Employer to withhold such payments until this matter
         is resolved to the Committee's satisfaction.

9.6      Discharge of  Obligations.  The payment of benefits under the Plan to a
         Beneficiary shall fully and completely  discharge all Employers and the
         Committee from all further  obligations under this Plan with respect to
         the Participant,  and that Participant's Plan Agreement shall terminate
         upon such full payment of benefits.

                                   ARTICLE 10
                                Leave of Absence

10.1     Paid  Leave  of  Absence.   If  a  Participant  is  authorized  by  the
         Participant's  Employer  for any reason to take a paid leave of absence
         from the employment of the Employer,  the Participant shall continue to
         be considered  employed by the Employer and the Annual  Deferral Amount
         shall  continue  to be  withheld  during  such paid leave of absence in
         accordance with Section 3.3.

10.2     Unpaid  Leave  of  Absence.  If a  Participant  is  authorized  by  the
         Participant's  Employer  for any  reason  to take an  unpaid  leave  of
         absence from the  employment of the  Employer,  the  Participant  shall
         continue to be considered  employed by the Employer and the Participant
         shall be excused  from making  deferrals  until the earlier of the date
         the leave of  absence  expires  or the  Participant  returns  to a paid
         employment  status.  Upon such  expiration or return,  deferrals  shall
         resume  for  the  remaining  portion  of the  Plan  Year in  which  the
         expiration or return occurs,  based on the deferral  election,  if any,
         made for that Plan Year. If no election was made for that Plan Year, no
         deferral shall be withheld.

                                   ARTICLE 11
                     Termination, Amendment or Modification

11.1     Termination.  Although each Employer  anticipates that it will continue
         the Plan for an indefinite  period of time,  there is no guarantee that
         any Employer  will  continue the Plan

<PAGE>

         or will not terminate the Plan at any time in the future.  Accordingly,
         each Employer  reserves the right to discontinue its sponsorship of the
         Plan and/or to  terminate  the Plan at any time with  respect to any or
         all of its  participating  Employees  and  Directors,  by action of its
         board of directors.  Upon the  termination  of the Plan with respect to
         any Employer,  the Plan Agreements of the affected Participants who are
         employed  by that  Employer,  or in the  service  of that  Employer  as
         Directors, shall terminate and their Account Balances, determined as if
         they had  experienced a  Termination  of Employment on the date of Plan
         termination or, if Plan termination  occurs after the date upon which a
         Participant  was  eligible  to  Retire,   then  with  respect  to  that
         Participant  as  if  he  or  she  had  Retired  on  the  date  of  Plan
         termination,  shall be paid to the Participants as follows:  Prior to a
         Change in Control, if the Plan is terminated with respect to all of its
         Participants, an Employer shall have the right, in its sole discretion,
         and notwithstanding any elections made by the Participant,  to pay such
         benefits in a lump sum or pursuant to an Annual  Installment  Method of
         up  to  15  years,   with  amounts  credited  and  debited  during  the
         installment  period as provided herein.  If the Plan is terminated with
         respect  to less than all of its  Participants,  an  Employer  shall be
         required to pay such benefits in a lump sum. After a Change in Control,
         the Employer  shall be required to pay such benefits in a lump sum. The
         termination of the Plan shall not adversely  affect any  Participant or
         Beneficiary  who has become  entitled  to the  payment of any  benefits
         under the Plan as of the date of termination;  provided  however,  that
         the Employer  shall have the right to accelerate  installment  payments
         without a premium or prepayment  penalty by paying the Account  Balance
         in a lump sum or pursuant to an Annual  Installment  Method using fewer
         years  (provided  that the present value of all payments that will have
         been  received  by a  Participant  at any given point of time under the
         different  payment  schedule shall equal or exceed the present value of
         all payments  that would have been received at that point in time under
         the original payment schedule).

11.2     Amendment.  Any board  may,  at any time,  amend or modify  the Plan in
         whole or in part with  respect  to that  Employer  by the action of its
         board of  directors;  provided,  however,  that:  (i) no  amendment  or
         modification  shall be effective to decrease or restrict the value of a
         Participant's Account Balance in existence at the time the amendment or
         modification is made,  calculated as if the Participant had experienced
         a Termination  of Employment as of the effective  date of the amendment
         or modification  or, if the amendment or modification  occurs after the
         date upon which the Participant was eligible to Retire, the Participant
         had Retired as of the effective date of the amendment or  modification,
         and (ii) no amendment or  modification  of this Section 11.2 or Section
         12.2 of the Plan shall be effective.  The amendment or  modification of
         the Plan shall not affect any Participant or Beneficiary who has become
         entitled to the  payment of  benefits  under the Plan as of the date of
         the amendment or  modification;  provided,  however,  that the Employer
         shall have the right to accelerate  installment  payments by paying the
         Account  Balance  in a lump sum or  pursuant  to an Annual  Installment
         Method  using  fewer  years  (provided  that the  present  value of all
         payments  that will have been  received by a  Participant  at any given
         point of time  under the  different  payment  schedule  shall  equal or
         exceed the present  value of all payments that would have been received
         at that point in time under the original payment schedule).

<PAGE>

11.3     Plan Agreement. Despite the provisions of Sections 11.1 and 11.2 above,
         if a Participant's Plan Agreement contains benefits or limitations that
         are not in this Plan document, the Employer may only amend or terminate
         such provisions with the consent of the Participant.

11.4     Effect of Payment.  The full payment of the  applicable  benefit  under
         Articles  4, 5, 6, 7 or 8 of the Plan shall  completely  discharge  all
         obligations to a Participant  and his or her  designated  Beneficiaries
         under this Plan and the Participant's Plan Agreement shall terminate.

                                   ARTICLE 12
                                 Administration

12.1     Committee Duties. Except as otherwise provided in this Article 12, this
         Plan shall be  administered  by a Committee  which shall consist of the
         Board,  or such  committee as the Board shall  appoint.  Members of the
         Committee may be Participants under this Plan. The Committee shall also
         have the discretion and authority to (i) make,  amend,  interpret,  and
         enforce all appropriate rules and regulations for the administration of
         this Plan and (ii)  decide or resolve any and all  questions  including
         interpretations of this Plan, as may arise in connection with the Plan.
         Any individual  serving on the Committee who is a Participant shall not
         vote or act on any matter relating  solely to himself or herself.  When
         making a determination or calculation,  the Committee shall be entitled
         to rely on information furnished by a Participant or the Company.

12.2     Administration  Upon Change In Control.  For purposes of this Plan, the
         Company  shall  be  the  "Administrator"  at  all  times  prior  to the
         occurrence of a Change in Control.  Upon and after the  occurrence of a
         Change in Control,  the  "Administrator"  shall be an independent third
         party  selected  by the Trustee and  approved  by the  individual  who,
         immediately  prior to such event,  was the  Company's  Chief  Executive
         Officer or, if not so identified, the Company's Chief Financial Officer
         (and if no  Chief  Financial  Officer,  the  Vice  President  of  Human
         Resources)   (the   "Ex-CEO").   The   Administrator   shall  have  the
         discretionary  power to determine all  questions  arising in connection
         with the  administration of the Plan and the interpretation of the Plan
         and  Trust   including,   but  not   limited  to  benefit   entitlement
         determinations;  provided,  however, upon and after the occurrence of a
         Change in Control,  the Administrator shall have no power to direct the
         investment of Plan or Trust assets or select any investment  manager or
         custodial firm for the Plan or Trust.  Upon and after the occurrence of
         a  Change  in  Control,  the  Company  must:  (1)  pay  all  reasonable
         administrative  expenses and fees of the  Administrator;  (2) indemnify
         the   Administrator   against  any  costs,   expenses  and  liabilities
         including, without limitation,  attorney's fees and expenses arising in
         connection with the performance of the Administrator hereunder,  except
         with respect to matters  resulting from the gross negligence or willful
         misconduct of the  Administrator  or its  employees or agents;  and (3)
         supply full and timely  information to the Administrator or all matters
         relating  to  the  Plan,  the  Trust,   the   Participants   and  their
         Beneficiaries,  the Account Balances of the  Participants,  the date of
         circumstances  of the Retirement,  Disability,  death or Termination of
         Employment of the Participants, and such other pertinent information as
         the  Administrator may reasonably  require.  Upon and after a Change in
         Control,  the

<PAGE>

         Administrator  may be terminated  (and a replacement  appointed) by the
         Trustee only with the  approval of the Ex-CEO.  Upon and after a Change
         in Control, the Administrator may not be terminated by the Company.

12.3     Agents.  In the  administration  of this Plan,  the Committee may, from
         time to time,  employ  agents and delegate to them such  administrative
         duties  as it sees  fit  (including  acting  through  a duly  appointed
         representative)  and may from time to time consult with counsel who may
         be counsel to any Employer.

12.4     Binding   Effect  of   Decisions.   The   decision  or  action  of  the
         Administrator  with  respect  to  any  question  arising  out  of or in
         connection with the  administration,  interpretation and application of
         the Plan and the rules and regulations  promulgated  hereunder shall be
         final and  conclusive  and binding upon all persons having any interest
         in the Plan.

12.5     Indemnity of Committee. All Employers shall indemnify and hold harmless
         the members of the  Committee,  any  Employee to whom the duties of the
         Committee may be delegated,  and the Administrator  against any and all
         claims,  losses,  damages,  expenses or  liabilities  arising  from any
         action or failure to act with respect to this Plan,  except in the case
         of willful  misconduct by the Committee,  any of its members,  any such
         Employee or the Administrator.

12.6     Employer  Information.  To enable the Committee and/or Administrator to
         perform its functions,  the Company and each Employer shall supply full
         and timely  information to the Committee and/or  Administrator,  as the
         case  may  be,  on all  matters  relating  to the  compensation  of its
         Participants, the date and circumstances of the Retirement, Disability,
         death  or  circumstances  of  the  Retirement,   Disability,  death  or
         Termination of Employment of its Participants, and such other pertinent
         information as the Committee or Administrator may reasonably require.

                                   ARTICLE 13
                          Other Benefits and Agreements

13.1     Coordination   with  Other  Benefits.   The  benefits  provided  for  a
         Participant  and  Participant's  Beneficiary  under  the  Plan  are  in
         addition to any other benefits  available to such Participant under any
         other plan or program for employees of the Participant's  Employer. The
         Plan  shall  supplement  and shall not  supersede,  modify or amend any
         other  such  plan or  program  except  as may  otherwise  be  expressly
         provided.

                                   ARTICLE 14
                                Claims Procedures

14.1     Presentation  of Claim.  Any  Participant  or Beneficiary of a deceased
         Participant (such Participant or Beneficiary being referred to below as
         a  "Claimant")  may  deliver  to the  Committee  a written  claim for a
         determination  with  respect  to  the  amounts  distributable  to  such
         Claimant  from the Plan.  If such a claim  relates to the contents of a
         notice received by the Claimant,  the claim must be made within 60 days
         after such notice was received by the  Claimant.  All other claims must
         be made  within 180 days of the date on

<PAGE>

         which the event that caused the claim to arise occurred. The claim must
         state with particularity the determination desired by the Claimant.

14.2     Notification  of Decision.  The Committee  shall  consider a Claimant's
         claim  within a  reasonable  time,  and shall  notify the  Claimant  in
         writing:

         (a)      that the Claimant's requested determination has been made, and
                  that the claim has been allowed in full; or

         (b)      that the Committee has reached a conclusion contrary, in whole
                  or in part, to the  Claimant's  requested  determination,  and
                  such  notice  must  set  forth in a  manner  calculated  to be
                  understood by the Claimant:

                  (i)      the specific  reason(s)  for the denial of the claim,
                           or any part of it;

                           specific  reference(s) to pertinent provisions of the
                           Plan upon which such denial was based;

                           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

                           an  explanation  of the claim  review  procedure  set
                           forth in Section 14.3 below.

14.3     Review of a Denied Claim.  Within 60 days after receiving a notice from
         the  Committee  that a claim has been  denied,  in whole or in part,  a
         Claimant (or the Claimant's  duly authorized  representative)  may file
         with the Committee a written  request for a review of the denial of the
         claim.  Thereafter,  but  not  later  than  30 days  after  the  review
         procedure  began,  the  Claimant  (or the  Claimant's  duly  authorized
         representative):

         (a)      may review pertinent documents;

         (b)      may submit written comments or other documents; and/or

         (c)      may  request  a  hearing,  which  the  Committee,  in its sole
                  discretion, may grant.

14.4     Decision on Review.  The Committee  shall render its decision on review
         promptly,  and not later  than 60 days  after  the  filing of a written
         request  for  review of the  denial,  unless a hearing is held or other
         special  circumstances  require  additional  time,  in  which  case the
         Committee's  decision must be rendered within 120 days after such date.
         Such decision  must be written in a manner  calculated to be understood
         by the Claimant, and it must contain:

         (a)      specific reasons for the decision;

         (b)      specific  reference(s)  to the pertinent Plan  provisions upon
                  which the decision was based; and

<PAGE>

         (c)      such other matters as the Committee deems relevant.

14.5     Legal Action. A Claimant's  compliance with the foregoing provisions of
         this Article 14 is a mandatory  prerequisite  to a Claimant's  right to
         commence any legal action with respect to any claim for benefits  under
         this Plan.

                                   ARTICLE 15
                                      Trust

15.1     Establishment  of the Trust. The Company shall establish the Trust, and
         each Employer shall at least  annually  transfer over to the Trust such
         assets  as  the  Employer  determines,  in  its  sole  discretion,  are
         necessary  to provide,  on a present  value basis,  for its  respective
         future liabilities created with respect to the Annual Deferral Amounts,
         Company  Contribution  Amounts,  and Company  Matching Amounts for such
         Employer's  Participants for all periods prior to the transfer, as well
         as any debits and credits to the Participants' Account Balances for all
         periods prior to the transfer,  taking into  consideration the value of
         the assets in the trust at the time of the transfer.

15.2     Interrelationship of the Plan and the Trust. The provisions of the Plan
         and the Plan  Agreement  shall  govern the rights of a  Participant  to
         receive distributions pursuant to the Plan. The provisions of the Trust
         shall  govern  the  rights  of  the  Employers,  Participants  and  the
         creditors of the Employers to the assets transferred to the Trust. Each
         Employer shall at all times remain liable to carry out its  obligations
         under the Plan.

15.3     Distributions  From the Trust.  Each Employer's  obligations  under the
         Plan may be  satisfied  with Trust assets  distributed  pursuant to the
         terms  of the  Trust,  and  any  such  distribution  shall  reduce  the
         Employer's obligations under this Plan.

                                   ARTICLE 16
                                  Miscellaneous

16.1     Status of Plan. The Plan is intended to be a plan that is not qualified
         within the meaning of Code Section  401(a) and that "is unfunded and is
         maintained  by an  employer  primarily  for the  purpose  of  providing
         deferred  compensation  for a select  group  of  management  or  highly
         compensated  employee"  within the  meaning of ERISA  Sections  201(2),
         301(a)(3) and 401(a)(1). The Plan shall be administered and interpreted
         to the extent possible in a manner consistent with that intent.

16.2     Unsecured  General  Creditor.  Participants  and  their  Beneficiaries,
         heirs,  successors and assigns shall have no legal or equitable rights,
         interests  or claims in any  property  or  assets of an  Employer.  For
         purposes of the payment of benefits  under this Plan, any and all of an
         Employer's  assets  shall  be,  and  remain,  the  general,   unpledged
         unrestricted assets of the Employer. An Employer's obligation under the
         Plan shall be merely that of an unfunded and  unsecured  promise to pay
         money in the future.

16.3     Employer's  Liability.  An  Employer's  liability  for the  payment  of
         benefits shall be defined only by the Plan and the Plan  Agreement,  as
         entered into between the Employer

<PAGE>

         and  a  Participant.   An  Employer  shall  have  no  obligation  to  a
         Participant under the Plan except as expressly provided in the Plan and
         his or her Plan Agreement.

16.4     Nonassignability. Neither a Participant nor any other person shall have
         any right to  commute,  sell,  assign,  transfer,  pledge,  anticipate,
         mortgage or  otherwise  encumber,  transfer,  hypothecate,  alienate or
         convey in advance  of actual  receipt,  the  amounts,  if any,  payable
         hereunder,  or any part thereof, which are, and all rights to which are
         expressly declared to be, unassignable and non-transferable. No part of
         the  amounts  payable  shall,  prior to actual  payment,  be subject to
         seizure,  attachment,  garnishment or sequestration  for the payment of
         any  debts,  judgments,  alimony  or  separate  maintenance  owed  by a
         Participant or any other person, be transferable by operation of law in
         the  event of a  Participant's  or any  other  person's  bankruptcy  or
         insolvency  or be  transferable  to a spouse as a result of a  property
         settlement or otherwise.

16.5     Not a Contract of  Employment.  The terms and  conditions  of this Plan
         shall not be deemed to constitute a contract of employment  between any
         Employer and the Participant. Such employment is hereby acknowledged to
         be an "at will" employment  relationship  that can be terminated at any
         time for any reason,  or no reason,  with or without cause, and with or
         without  notice,  unless  expressly  provided  in a written  employment
         agreement.  Nothing in this Plan shall be deemed to give a  Participant
         the right to be retained in the service of any  Employer,  either as an
         Employee or a Director,  or to interfere with the right of any Employer
         to discipline or discharge the Participant at any time.

16.6     Furnishing  Information.  A Participant or his or her Beneficiary  will
         cooperate  with the  Committee by  furnishing  any and all  information
         requested  by the  Committee  and take  such  other  actions  as may be
         requested in order to facilitate the administration of the Plan and the
         payments of  benefits  hereunder,  including  but not limited to taking
         such physical examinations as the Committee may deem necessary.

16.7     Terms. Whenever any words are used herein in the masculine,  they shall
         be  construed  as though  they were in the  feminine in all cases where
         they  would so apply;  and  whenever  any words are used  herein in the
         singular or in the plural,  they shall be construed as though they were
         used in the  plural or the  singular,  as the case may be, in all cases
         where they would so apply.

16.8     Captions. The captions of the articles, sections and paragraphs of this
         Plan are for  convenience  only and shall  not  control  or affect  the
         meaning or construction of any of its provisions.

16.9     Governing Law.  Subject to ERISA,  the provisions of this Plan shall be
         construed and  interpreted  according to the internal laws of the State
         of California without regard to its conflicts of laws principles.

16.10    Notice.  Any notice or filing  required or permitted to be given to the
         Committee  under  this  Plan  shall be  sufficient  if in  writing  and
         hand-delivered, or sent by registered or certified mail, to the address
         below:

<PAGE>

                           Chief Financial Officer
                           California Water Service Company
                           1720 North First Street
                           San Jose, CA 95112

         Such notice  shall be deemed  given as of the date of  delivery  or, if
         delivery is made by mail,  as of the date shown on the  postmark on the
         receipt for registration or certification.

         Any notice or filing required or permitted to be given to a Participant
         under this Plan shall be sufficient  if in writing and  hand-delivered,
         or sent by mail, to the last known address of the Participant.

16.11    Successors.  The  provisions  of this Plan  shall bind and inure to the
         benefit of the  Participant's  Employer and its  successors and assigns
         and the Participant and the Participant's designated Beneficiaries.

16.12    Spouse's  Interest.  The interest in the benefits hereunder of a spouse
         of  a  Participant   who  has   predeceased   the   Participant   shall
         automatically  pass to the Participant and shall not be transferable by
         such spouse in any manner,  including  but not limited to such spouse's
         will,  nor  shall  such  interest  pass  under  the  laws of  intestate
         succession.

16.13    Incompetent.  If the  Committee  determines  in its  discretion  that a
         benefit  under  this Plan is to be paid to a minor,  a person  declared
         incompetent  or to a person  incapable of handling the  disposition  of
         that  person's  property,  the  Committee  may  direct  payment of such
         benefit to the guardian, legal representative or person having the care
         and  custody  of such  minor,  incompetent  or  incapable  person.  The
         Committee  may require proof of minority,  incompetence,  incapacity or
         guardianship,  as it may deem appropriate  prior to distribution of the
         benefit. Any payment of a benefit shall be a payment for the account of
         the Participant and the Participant's Beneficiary,  as the case may be,
         and shall be a complete  discharge of any liability  under the Plan for
         such payment amount.

16.14    Court Order. The Committee is authorized to make any payments  directed
         by court  order in any  action in which the Plan or the  Committee  has
         been named as a party. In addition, if a court determines that a spouse
         or former spouse of a Participant has an interest in the  Participant's
         benefits  under the Plan in  connection  with a property  settlement or
         otherwise, the Committee, in its sole discretion, shall have the right,
         notwithstanding  any election  made by a  Participant,  to  immediately
         distribute   the   spouse's   or  former   spouse's   interest  in  the
         Participant's benefits under the Plan to that spouse or former spouse.

16.15    Distribution in the Event of Taxation.

         (a)      In  General.  If,  for any  reason,  all or any  portion  of a
                  Participant's  benefits under this Plan becomes taxable to the
                  Participant  prior to receipt,  a Participant may petition the
                  Committee  before a Change in  Control,  or the trustee of the
                  Trust after a Change in Control,  for a  distribution  of that
                  portion of his or her benefit  that has become  taxable.  Upon
                  the  grant  of  such a  petition,  which  grant  shall  not

<PAGE>

                  be  unreasonably  withheld  (and,  after a Change in  Control,
                  shall be granted),  a Participant's  Employer shall distribute
                  to the  Participant  immediately  available funds in an amount
                  equal to the  taxable  portion  of his or her  benefit  (which
                  amount shall not exceed a Participant's unpaid Account Balance
                  under the Plan). If the petition is granted, the tax liability
                  distribution shall be made within 90 days of the date when the
                  Participant's  petition is granted.  Such a distribution shall
                  affect and reduce the benefits to be paid under this Plan.

         (b)      Trust.  If the Trust  terminates in accordance  with its terms
                  and benefits are  distributed  from the Trust to a Participant
                  in accordance therewith, the Participant's benefits under this
                  Plan shall be reduced to the extent of such distributions.

16.16    Insurance.  The  Employers,  on their  own  behalf  or on behalf of the
         trustee of the Trust, and, in their sole discretion,  may apply for and
         procure  insurance on the life of the Participant,  in such amounts and
         in such forms as the Trust may choose.  The Employers or the trustee of
         the Trust,  as the case may be, shall be the sole owner and beneficiary
         of  any  such  insurance.   The  Participant  shall  have  no  interest
         whatsoever  in any such policy or  policies,  and at the request of the
         Employers  shall  submit  to  medical   examinations  and  supply  such
         information  and  execute  such  documents  as may be  required  by the
         insurance  company or companies to whom the Employers  have applied for
         insurance.

16.17    Legal Fees To Enforce  Rights After Change in Control.  The Company and
         each Employer is aware that upon the occurrence of a Change in Control,
         the Board or the board of directors of a Participant's  Employer (which
         might then be composed of new members) or a shareholder  of the Company
         or the Participant's  Employer,  or of any successor  corporation might
         then cause or attempt to cause the Company, the Participant's  Employer
         or such  successor to refuse to comply with its  obligations  under the
         Plan  and  might   cause  or  attempt  to  cause  the  Company  or  the
         Participant's  Employer  to  institute,  or may  institute,  litigation
         seeking to deny  Participants the benefits  intended under the Plan. In
         these  circumstances,  the  purpose  of the Plan  could be  frustrated.
         Accordingly, if, following a Change in Control, it should appear to any
         Participant  that  the  Company,  the  Participant's  Employer  or  any
         successor  corporation has failed to comply with any of its obligations
         under the Plan or any  agreement  thereunder  or, if the Company,  such
         Employer or any other  person takes any action to declare the Plan void
         or  unenforceable  or institutes  any  litigation or other legal action
         designed  to deny,  diminish  or to recover  from any  Participant  the
         benefits   intended   to  be   provided,   then  the  Company  and  the
         Participant's Employer irrevocably authorize such Participant to retain
         counsel of his or her  choice at the  expense  of the  Company  and the
         Participant's  Employer (who shall be jointly and severally  liable) to
         represent such Participant in connection with the initiation or defense
         of any  litigation  or other  legal  action,  whether by or against the
         Company,   the  Participant's   Employer  or  any  director,   officer,
         shareholder  or  other  person   affiliated   with  the  Company,   the
         Participant's Employer or any successor thereto in any jurisdiction.

IN WITNESS  WHEREOF,  the Company has signed this Plan  document as of JANAUR 1,
2001.

<PAGE>

                    CALIFORNIA WATER SERVICE GROUP, a
                    California  corporation

                    By: Peter C Nelson
                                      -----------------------------------------

                    Title: President and Chief Executive Officer
                                                                ---------------Exhibit 10.23

                        CALIFORNIA WATER SERVICE COMPANY
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                             As Amended and Restated

                            Effective January 1, 2001

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

                                Table of Contents

                                                                            Page

PURPOSE      .................................................................1

ARTICLE 1    DEFINITIONS......................................................1

       1.1       "Actuarial Equivalent".......................................1
       1.2       "Administrative Committee" ..................................2
       1.3       "Average Annual Earnings" ...................................2
       1.4       "Basic Retirement Plan" .....................................2
       1.5       "Board" .....................................................2
       1.6       "Change in Control" .........................................2
       1.7       "Claimant" ..................................................4
       1.8       "Code" ......................................................4
       1.9       "Company" ...................................................4
       1.10      "Deferred Retirement" .......................................4
       1.11      "Early Retirement" ..........................................4
       1.12      "Earnings" ..................................................4
       1.13      "Employer(s)" ...............................................5
       1.14      "ERISA" .....................................................5
       1.15      "Normal Retirement" .........................................5
       1.16      "Participant" ...............................................5
       1.17      "Plan" ......................................................5
       1.18      "Plan Year" .................................................5
       1.19      "Pre-retirement Survivor Benefit" ...........................5
       1.20      "Retirement" or "Retires" ...................................6
       1.21      "Surviving Spouse" ..........................................6
       1.22      "SERP Benefit" ..............................................6
       1.23      "Termination of Employment" .................................6
       1.24      "Trust" .....................................................6
       1.25      "Vested" ....................................................6
       1.26      "Years of Service" ..........................................6

ARTICLE 2    ELIGIBILITY......................................................7

       2.1       Selection by Administrative Committee........................7
       2.2       Commencement of Participation................................7
       2.3       Termination of Participation.................................7
       2.4       Recommencement of Participation..............................8

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                                                                             -i-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

ARTICLE 3    VESTING..........................................................8

       3.1       Vesting in Benefits..........................................8

ARTICLE 4    RETIREMENT DATES.................................................8

       4.1       Normal Retirement............................................9
       4.2       Early Retirement.............................................9
       4.3       Deferred Retirement..........................................9

ARTICLE 5    BENEFITS.........................................................9

       5.1       Normal Retirement Benefits...................................9
       5.2       Early Retirement Benefits...................................11
       5.3       Deferred Retirement Benefit.................................11
       5.4       Change in Control...........................................12
       5.5       Form of Benefit.............................................12
       5.6       Application for Retirement..................................13
       5.7       Withdrawal Election.........................................13
       5.8       Pre-Retirement Death Benefit................................14
       5.9       Missing Person Forfeiture and Reinstatement.................15

ARTICLE 6    TERMINATION, AMENDMENT OR MODIFICATION OF THE PLAN..............16

       6.1       Termination.................................................16
       6.2       Amendment...................................................17

ARTICLE 7    OTHER BENEFITS AND AGREEMENTS...................................17

       7.1       Coordination with Other Benefits............................17

ARTICLE 8    ADMINISTRATION OF THE PLAN......................................17

       8.1       Administrative Committee Duties.............................18
       8.2       Agents......................................................18
       8.3       Binding Effect of Decisions.................................18
       8.4       Indemnity of Administrative Committee.......................18
       8.5       Employer Information........................................19

ARTICLE 9    CLAIMS PROCEDURES...............................................19

       9.1       Presentation of Claim.......................................19
       9.2       Notification of Decision....................................19
       9.3       Review of a Denied Claim....................................20
       9.4       Decision on Review..........................................21
       9.5       Legal Action................................................21

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                                                                            -ii-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

ARTICLE 10   FUNDING.........................................................21

       10.1      Establishment of the Trust..................................22
       10.2      Interrelationship of the Plan and the Trust.................22

ARTICLE 11   MISCELLANEOUS...................................................22

       11.1      Unsecured General Creditor..................................22
       11.2      Employer's Liability........................................22
       11.3      Nonassignability............................................23
       11.4      Not a Contract of Employment................................23
       11.5      Furnishing Information......................................24
       11.6      Terms.......................................................24
       11.7      Captions....................................................24
       11.8      Governing Law...............................................24
       11.9      Notice......................................................24
       11.10     Successors..................................................25
       11.11     Spouse's Interest...........................................25
       11.12     Incompetent.................................................26
       11.13     Court Order.................................................26
       11.14     Distribution in the Event of Taxation.......................27

--------------------------------------------------------------------------------
                                                                           -iii-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

                                     Purpose

The purpose of this Plan is to provide  specified  benefits to a select group of
management and highly compensated employees of California Water Service Company,
a California corporation, and its subsidiaries,  if any, that sponsor this Plan.
This Plan shall be  unfunded  for tax  purposes  and for  purposes of Title I of
ERISA. This Plan was originally effective January 1, 1992 and is restated as set
forth in this document effective January 1, 2001.

                                    ARTICLE 1
                                   Definitions

For purposes  hereof,  unless otherwise  clearly apparent from the context,  the
following phrases or terms shall have the following indicated meanings:

1.1      "Actuarial  Equivalent" shall mean an actuarial  equivalent value of an
         amount  payable in a different  form or at a different date computed on
         the basis of the following actuarial assumptions:

                  Mortality:      1983 Group Annuity Table

                  Interest        Rate: Rate on 30-year  treasury  securities as
                                  specified by the Commissioner for the month of
                                  November that first precedes the Plan Year.

--------------------------------------------------------------------------------
                                                                             -4-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

         As the Plan Administrator deems necessary, in its sole discretion,  the
         above  actuarial  assumptions may be adjusted from time to time, and no
         Participant  shall be deemed to have any  right,  vested or  nonvested,
         regarding  the  continued  use  of  any  previously  adopted  actuarial
         assumption.

1.2      "Administrative  Committee"  shall  mean the  committee  authorized  to
         administer the Plan pursuant to Article 8.

"Average  Annual  Earnings"  shall  have the same  meaning  as under  the  Basic
Retirement Plan.

         "Basic  Retirement  Plan" shall mean the  Restatement of the California
         Water Service Company Pension Plan, as amended from time to time.

"Board" shall mean the board of directors of the Company.

"Change in Control"  shall be deemed to take place on the  occurrence  of any of
the following events:

         (a)      Any merger or consolidation of the Company or California Water
                  Service Group ("Target  Entity") in which the Target Entity is
                  not the  surviving  organization,  a majority  of the  capital
                  stock of which is not owned by the  shareholders of the Target
                  Entity immediately prior to such merger or consolidation;

         (b)      A transfer  of all or  substantially  all of the assets of the
                  Target Entity;

         (c)      Any other corporate  reorganization in which there is a change
                  in ownership of the  outstanding  shares of the Target  Entity
                  wherein thirty percent (30%) or more of the outstanding shares
                  of the Target Entity are  transferred  to any "person" (as the
                  term is used in  Section  13 and  14(d)(2)  of the  Securities
                  Exchange Act of 1934);

--------------------------------------------------------------------------------
                                                                             -5-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

         (d)      The  acquisition  by or  transfer to a Person  (including  all
                  Affiliates  or  Associates  of  such  Person)  of  "beneficial
                  ownership"  (as that term is defined  in Rule 13d-3  under the
                  Securities  Exchange  Act of 1934) of capital  stock of Target
                  Entity if after such  acquisition or transfer such Person (and
                  their Affiliates or Associates) is entitled to exercise thirty
                  percent (30%) or more of the  outstanding  voting power of all
                  capital stock of Target  Entity  entitled to vote in elections
                  of directors;

         (e)      The  election to the Board of  Directors  of Target  Entity of
                  candidates who were not  recommended for election by the Board
                  of Directors of Target Entity in office  immediately  prior to
                  the  election,  if such  candidates  constitute  a majority of
                  those elected in that particular election; or

         (f)      Any other corporate  reorganization,  merger or  consolidation
                  immediately  after which thirty  percent  (30%) or more of the
                  stock ownership of the surviving company's  outstanding shares
                  is owned by a Person (or their  Affiliates and Associates) who
                  did not own shares of the Target Entity immediately before the
                  transaction.

"Claimant" shall have the meaning set forth in Section 8.1.

"Code"  shall mean the Internal  Revenue  Code of 1986,  as amended from time to
time.

"Company" shall mean California Water Service Company, a California corporation.

"Deferred Retirement" shall have the meaning set forth in Section 4.3.

"Early Retirement" shall have the meaning set forth in Section 4.2.

"Earnings" shall mean the actual annual compensation paid by the Employer to the
Participant,  determined  as of  December  31 of each  Plan Year as listed on an
Employer's  payroll  records.  Compensation  shall be included for any period of
Participation  if the  Participant  is in the Plan for a  portion  of any  year.
Earnings  shall be  calculated  before  reduction for  compensation  voluntarily
deferred  or  contributed  by  the  Participant  pursuant  to all  qualified  or
nonqualified  retirement

--------------------------------------------------------------------------------
                                                                             -6-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

plans of any  Employer  shall be  calculated  to include  amounts not  otherwise
included in the Participant's  gross income under Code sections 125 or 402(e)(3)
pursuant to plans established by any Employer;  provided, however, that all such
amounts will be included in earnings only to the extent,  that had there been no
such plan, the amount would have been payable in cash to the Participant. In the
event a Participant becomes totally and permanently disabled,  earnings shall be
deemed to  continue  for  purposes  of this Plan at the rate or amount in effect
immediately  prior to such disability,  as determined within the sole discretion
of the Employer.

"Employer(s)"  shall mean the Company and any  subsidiaries or affiliates of the
Company that have been selected by the Board to participate in the Plan.

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

"Normal Retirement" shall have the meaning set forth in Section 4.1.

"Participant"  shall mean any  employee  (i) who is elected as an officer by the
Board and (ii) designated as a "Participant" by the Board.

"Plan" shall mean the Company's  Supplemental  Executive  Retirement Plan, which
shall be evidenced by this  instrument  and by each Plan  Agreement,  as amended
from time to time.

"Plan Year" shall begin on January 1 of each year and continue  through December
31.

--------------------------------------------------------------------------------
                                                                             -7-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

"Pre-retirement Survivor Benefit" shall mean a benefit provided in Section 5.7.

"Retirement"  or "Retires"  shall mean, in each  instance,  Early  Retirement or
Normal Retirement, as the case may be.

"Surviving  Spouse" shall mean the legally married spouse of a Participant  upon
the Participant's death.

"SERP Benefit" shall mean the benefit provided in Article 5 of the Plan.

"Termination of Employment"  shall mean a Participant  ceasing to be an employee
of all Employers,  voluntarily or involuntarily,  but shall exclude cessation of
employment with all Employers as a result of Normal Retirement, Early Retirement
or death.

"Trust"  shall mean any trust  established  between  the Company and the trustee
named  therein,  as amended from time to time that may be used to fund  benefits
payable under the Plan.

"Vested"  shall  mean  that  a  Participant's   benefits  under  this  Plan  are
non-forfeitable as determined in accordance with Article 3 below.

"Years of Service" for  eligibility,  vesting and benefit accrual shall have the
same meaning as provided in the Basic  Retirement  Plan,  including  the maximum
number of Years of Service of 35; except that additional Years of Service may be
granted to a Participant for any purpose by written action of the Board.

--------------------------------------------------------------------------------
                                                                             -8-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

                                    ARTICLE 2
                                   Eligibility

Selection  by  Administrative  Committee.  Participation  in the  Plan  shall be
limited to officers of the Employers  who have been  designated as a Participant
by the Board.

2.1      Commencement   of   Participation.   A   Participant   shall   commence
         participation  in the Plan on the first day of the month  following the
         date such individual is designated by the Board as a Participant.

2.2      Termination of Participation.  A Participant shall cease  participation
         in  the  Plan  (i)  upon  termination  of  an  unvested   Participant's
         employment  for  any  reason  other  than  Normal   Retirement,   Early
         Retirement or Deferred Retirement (as provided in Article 4), (ii) upon
         action in writing by the Board prior to full vesting of a Participant's
         SERP  Benefit,  or (iii) upon  complete  distribution  of all  benefits
         payable to a  Participant  or his  Surviving  Spouse.  Pursuant to this
         Section 2.3,  the Board shall have the  authority to amend this Plan at
         any time to remove any Participant  from further  participation  in the
         Plan.  The Board shall provide notice to the  Administrative  Committee
         and any affected Participant of such action. If an unvested Participant
         is  removed,  no further  vesting  shall  occur and the  unvested  SERP
         Benefit shall be forfeited.  If a Vested  Participant is removed,  such
         Participant  shall have no  additional  Years of  Service  or  Earnings
         recognized under the Plan after the date of removal.

--------------------------------------------------------------------------------
                                                                             -9-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

2.3      Recommencement  of  Participation.  The  participation  of a terminated
         Participant  shall recommence in accordance with Section 2.2 upon being
         redesignated  by  the  Board  in  accordance  with  Section  2.1.  Upon
         recommencement of  participation,  Years of Service shall be counted to
         the extent counted under the Basic Retirement Plan.

                                    ARTICLE 3
                                     Vesting

3.1      Vesting in Benefits.

         (a)      General.   Except  as  provided  in  Sections   3.1(b),   each
                  Participant  shall  have a  non-forfeitable  right  or  Vested
                  interest  in his or her SERP  Benefit  after at least five (5)
                  Years of Service as defined  for  vesting  purposes  under the
                  Basic  Retirement  Plan and including any additional  Years of
                  Service   awarded  under  Section  1.26.  A  Participant   who
                  terminates  his  employment  with  less than five (5) Years of
                  Service shall forfeit his benefits under the Plan.

         (b)      Special.  Notwithstanding  Section 3.1(a) above, a Participant
                  shall have a  non-forfeitable  right or Vested interest in the
                  Participant's  SERP  Benefit  under  the Plan upon a Change in
                  Control.

--------------------------------------------------------------------------------
                                                                            -10-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

                                   ARTICLE 4
                                Retirement Dates

4.1      Normal  Retirement.  A  Participant  shall be eligible to retire on his
         normal  retirement date which is the first day of the month  coinciding
         with or next  following  his 65th  birthday.  The  amount of his normal
         retirement  benefit shall be determined in accordance  with the benefit
         formula in Section 5.1.

4.2      Early  Retirement.  A Participant  shall be eligible to retire early on
         his  early  retirement  date  which  is the  first  day  of  any  month
         subsequent to the date of termination after he has attained age 55, but
         before his normal retirement date.

         Upon  termination of employment  while  eligible for early  retirement,
         payment of benefits to the  Participant  shall commence  immediately on
         the first of the month following his date of termination of employment.
         In no event shall a terminated  Participant  defer  commencement of his
         early retirement benefits beyond his early retirement date.

         The  amount of his early  retirement  benefit  shall be  determined  in
         accordance with Section 5.2.

4.3      Deferred  Retirement.  A Participant shall be eligible to retire on his
         or her  Deferred  Retirement  date  which is the first day of any month
         subsequent  to the  date of  termination  of  employment  after  he has
         attained his Normal Retirement date described in Section 4.1.

--------------------------------------------------------------------------------
                                                                            -11-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

                                   ARTICLE 5
                                    Benefits

5.1      Normal Retirement Benefits.  Upon Normal Retirement pursuant to Section
         4.1, a Participant shall receive a monthly retirement  allowance in the
         form of an annuity equal to (a) minus (b) where:

         (a)      is  a   percentage   from  the   following   table  times  the
                  Participant's Average Annual Earnings divided by 12:

       Years of Service     Percentage          Years of Service      Percentage

            5                  10%                   20                  40%
            6                  12%                   21                  41
            7                  14%                   22                  42
            8                  16%                   23                  43
            9                  18%                   24                  44
            10                 20%                   25                  45
            11                 22                    26                  46
            12                 24                    27                  47
            13                 26                    28                  48
            14                 28                    29                  49
            15                 30                    30                  50
            16                 32                    31                  51
            17                 34                    32                  52
            18                 36                    33                  53
            19                 38                    34                  54
                                                  35 or more             55

                  Years of Service  are Years of  Service  for  benefit  accrual
                  purposes  under the Basic  Retirement  Plan, but not including
                  Years of Service  accrued  after the date of removal from Plan
                  coverage under Section 2.3 and including any additional  Years
                  of Service  awarded by the Board of  Directors  under  Section
                  1.14.

         (b)      is the Participant's accrued monthly life annuity benefit from
                  the Basic Retirement  Plan,  calculated in accordance with the
                  provisions  under such

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                                                                            -12-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

                  Plan  as of the  date  of  retirement  under  this  Plan.  Any
                  subsequent  increases to the benefit from the Basic Retirement
                  Plan,  which may become payable to the  Participant  after his
                  normal  retirement  date  described  in Section 4.1, his early
                  retirement  date  described  in Section  4.2, or his  deferred
                  retirement  date described in Section 4.3, which is applicable
                  to him, shall not reduce the Participant's  benefit under this
                  Plan.

5.2      Early Retirement Benefits.

         (a)      If a Participant retires early on or after age 55 and prior to
                  age 60, the monthly  benefit shall be calculated in accordance
                  with Section 5.1 and reduced to the following amounts:

                     Age at Retirement           Percentage of Monthly Benefits

                      60 and over                           100%
                          59                                 95%
                          58                                 90%
                          57                                 85%
                          56                                 80%
                          55                                 74%

                  Reductions  according to the above table shall be prorated for
                  months of age.

         (b)      If a  Participant  retires early after a Change in Control and
                  before age 55, the  percentage  of monthly  benefits  shall be
                  reduced from 74% by an  additional  5% for each year below age
                  55 until such reduction equals or exceeds 100%.

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                                                                            -13-

<PAGE>

California Water Service Company
Supplemental Executive Retirement Plan
================================================================================

5.3      Deferred  Retirement  Benefit. If a Participant retires on his Deferred
         Retirement  date described in Section 4.3, his monthly benefit shall be
         calculated  in  accordance  with  Section  5.1,  but  based on Years of
         Service not to exceed 35 and Average Annual Earnings as of his Deferred
         Retirement date.

5.4      Change in Control. In addition to 3.1(b), for purposes of calculating a
         SERP benefit under this Article 5,  immediately upon the date of Change
         in Control, each Participant shall be deemed to have the following:

         (a)      additional  years  added to his or her age such that he or she
                  shall be age 55 for  purposes  of the Plan other than  Section
                  5.2, and

         (b)      three  additional  Years  of  Service  for  purposes  of  SERP
                  Benefits under Article 5.

5.5      Form of Benefit.  The annuity benefit shall be paid as follows:

         (a)      Married  Participant.  The retirement benefit of a Participant
                  who is married shall be paid in the form of a 50% spouse joint
                  and survivor annuity benefit.  This form of benefit payment is
                  a monthly  amount  described  in Section  5.1,  5.2 or 5.3, as
                  applicable,  commencing on the  Participant's  retirement date
                  and  payable  during his  lifetime,  with 50% of such  monthly
                  amount to continue to his Surviving  Spouse from the first day
                  of the month  following  the date of his death.  The  payments
                  shall  end

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                  with the last  payment due on or before the  Participant's  or
                  his Surviving Spouse's date of death, whichever occurs later.

         (b)      Unmarried Participant. The retirement benefit of a Participant
                  who is unmarried  shall be a life annuity  benefit payable for
                  the life of the Participant. This form of benefit is a monthly
                  amount  described in Section  5.1, 5.2 or 5.3, as  applicable,
                  commencing on the  Participant's  retirement  date and payable
                  during his  lifetime,  ending with the last  payment due on or
                  before his date of death.

5.6      Application  for  Retirement.  To receive  benefits  under this Plan, a
         Participant  must  file a  written  response  with  the  Administrative
         Committee  no less than 30 days,  nor more  than 90 days,  prior to his
         Normal Retirement date (specified in Section 4.1), his Early Retirement
         date  (specified  in Section  4.2),  or his  deferred  retirement  date
         (specified in Section 4.3), whichever is applicable.

         If an  application  is not filed  prior to  retirement,  the  amount of
         payment  required to commence as above will not be ascertainable on the
         retirement date; and commencement of retirement  benefit payments shall
         be delayed until no more than 60 days after the  application  is filed,
         or the amount of such payment is  ascertained,  at which time a payment
         retroactive to the retirement date shall be made.

5.7      Withdrawal Election.

         (a)      Post Retirement. A Participant may elect, at any time after he
                  or she  commences  to receive  payments  under  this Plan,  to
                  receive those  payments in a lump sum,  based on the actuarial
                  equivalent of his or her

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                  remaining Vested SERP Benefit less a 10% penalty (as described
                  below). No election to partially  accelerate benefits shall be
                  allowed.  The  Participant  shall make this election by giving
                  the  Administrative  Committee  advance  written notice of the
                  election  in a  form  determined  from  time  to  time  by the
                  Administrative Committee. The penalty shall be equal to 10% of
                  the Participant's remaining Vested SERP Benefit, determined on
                  an actuarial  equivalent  basis. The Participant shall be paid
                  the net of penalty SERP Benefit  amount  within 60 days of his
                  or  her  election.   Once  the  SERP  Benefit  is  paid,   the
                  Participant's  participation  in the Plan shall  terminate and
                  the  Participant  shall not be eligible to  participate in the
                  Plan in the future.

         (b)      Post Change in Control.  A Participant  may elect, at any time
                  within  six  months  after a Change  in  Control,  to  receive
                  benefit  payments  under this Plan in a lump sum, based on the
                  actuarial  equivalent of his or her vested SERP Benefit less a
                  10% penalty (as  described  herein).  No election to partially
                  accelerate  benefits shall be allowed.  The Participant  shall
                  make this  election  by giving  the  Administrative  Committee
                  advance  written  notice of the election in a form approved by
                  the  Administrative  Committee.  The penalty shall be equal to
                  10% of the  Participant's  vested SERP Benefit  determined  on
                  actuarial  equivalent basis. The Participant shall be paid the
                  net  SERP  Benefit  amount  within  sixty  days  of his or her
                  election.  Once the SERP  Benefit is paid,  the  Participant's
                  participation  in

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                  the Plan  shall  terminate  and the  Participant  shall not be
                  eligible to participate in the Plan in the future.

5.8      Pre-Retirement  Death Benefit.  Upon the death of a Participant  who is
         Vested in  accordance  with Article 3 and who dies prior to his receipt
         of benefits under the Plan, the Participant's Surviving Spouse shall be
         eligible for a pre-retirement  death benefit.  For a Participant who is
         at  least  age  55  on  his  date  of  death,  the  Surviving  Spouse's
         pre-retirement  death  benefit  shall be equal to one-half  the benefit
         that would have been paid to the  Participant  if the  Participant  had
         retired as of the date of death.

         If the  Participant  is under age 55 at death,  his Surviving  Spouse's
         pre-retirement death benefit shall be equal to one-half the benefit the
         Participant  would have received if the  Participant had reached age 55
         and retired as of the date of death, based on his Earnings and Years of
         Service at death.

         The Surviving  Spouse's  benefit shall  commence  immediately  upon the
         death of the Participant  (or when the Participant  would have been age
         55,  if later)  and  shall be  payable  for the life of the  Spouse.  A
         Participant's  right to  benefits  under the Plan shall  cease upon the
         Participant's   death   except  as   provided  in  this   section.   No
         pre-retirement  death  benefit will be paid in respect to a Participant
         who dies without a Surviving Spouse.

5.9      Missing Person  Forfeiture and  Reinstatement.  A Participant's  Vested
         retirement benefit and the benefit payable to a Participant's Surviving
         Spouse  shall be  forfeited  if the benefit  cannot be paid because the
         identity or whereabouts of the person entitled to the payment cannot be
         ascertained.  The Administrative Committee's determination of when such
         payment cannot be made shall be final.

         Notwithstanding  the  foregoing,  if at  any  time  subsequent  to  the
         forfeiture,  the person  entitled  makes a claim to the  Administrative
         Committee  for such  payment,

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         the amount of the  forfeiture  shall be reinstated and the payment made
         to such person retroactive to the date benefits would have begun.

                                   ARTICLE 6
               Termination, Amendment or Modification of the Plan

6.1      Termination.  Each Employer reserves the right to terminate the Plan at
         any time with respect to its participating  employees by the actions of
         its board of directors. The termination of the Plan shall not adversely
         affect any  Participant  or his or her Surviving  Spouse who has become
         entitled to the payment of any  benefits  under the Plan as of the date
         of  termination;  provided,  however,  that the Employer shall have the
         right to accelerate  payments by paying the actuarial  equivalent value
         of such payments.  For all other Participants,  upon the termination of
         the Plan,  the  actuarial  equivalent  of a  Participant's  vested SERP
         Benefit shall be paid out in a lump sum.

6.2      Amendment.  Any Employer may, at any time,  amend or modify the Plan in
         whole or in part with  respect to its  participating  employees  by the
         actions of its board of directors; provided, however, that no amendment
         or   modification   shall  be  effective  to  decrease  or  restrict  a
         Participant's  then vested SERP  Benefit,  determined  on an  actuarial
         equivalent  basis.  The amendment or modification of the Plan shall not
         affect any  Participant  or his or her Surviving  Spouse who has become
         entitled to the  payment of  benefits  under the Plan as of the date of
         the amendment or  modification;  provided,  however,  that the Employer
         shall have the right to accelerate  installment  payments by paying the
         actuarial  equivalent value

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         of such payments either in a lump sum or in some other accelerated form
         of payment. No amendment or modification of the Plan adopted within two
         months prior to or following a Change in Control  shall be effective to
         decrease a  Participant's  SERP  benefit or restrict  vesting in a SERP
         benefit as  compared  to the  Participant's  SERP  benefit  immediately
         following a Change in Control absent such amendment.

                                   ARTICLE 7
                          Other Benefits and Agreements

7.1      Coordination   with  Other  Benefits.   The  benefits  provided  for  a
         Participant  under  this Plan are in  addition  to any  other  benefits
         available  to such  Participant  under any other  plan or  program  for
         employees of the  Employers.  The Plan shall  supplement  and shall not
         supersede, modify or amend any other such plan or program except as may
         otherwise be expressly provided.

                                   ARTICLE 8
                           Administration of the Plan

8.1      Administrative  Committee Duties. This Plan shall be administered by an
         Administrative  Committee  which shall  consist of three members of the
         Board,  or such  committee as the Board shall  appoint.  Members of the
         Administrative  Committee  may be  Participants  under this  Plan.  The
         Administrative  Committee  shall  also  have  the sole  discretion  and
         authority to (i) make,  amend,  interpret  and enforce all  appropriate
         rules and regulations for the  administration of this Plan,

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         (ii) decide or resolve any and all questions including  interpretations
         of this Plan, as may arise in connection with the Plan, (iii) determine
         eligibility  of any employer or officer of the Company and to designate
         an officer as a  Participant,  (iv) to determine Year of Service of any
         Participant  and the amount of SERP Benefit payable under the Plan, and
         (v)  exercise  all other powers  necessary  to  administer  the Plan in
         accordance with its terms.

8.2      Agents.  In  the   administration  of  this  Plan,  the  Administrative
         Committee  may employ  agents and delegate to them such  administrative
         duties  as it sees fit,  (including  acting  through  a duly  appointed
         representative), and may from time to time consult with counsel who may
         be counsel to any Employer.

8.3      Binding   Effect  of   Decisions.   The   decision  or  action  of  the
         Administrative Committee with respect to any question arising out of or
         in connection with the  administration,  interpretation and application
         of the Plan and the rules and regulations  promulgated  hereunder shall
         be final  and  conclusive  and  binding  upon all  persons  having  any
         interest in the Plan.

8.4      Indemnity of  Administrative  Committee.  All Employers shall indemnify
         and hold harmless the members of the  Administrative  Committee against
         any and all claims,  losses,  damages,  expenses or liabilities arising
         from any action or failure to act with respect to this Plan,  except in
         the case of willful misconduct by the  Administrative  Committee or any
         of its members.

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8.5      Employer Information. To enable the Administrative Committee to perform
         its functions,  each Employer shall supply full and timely  information
         to  the  Administrative  Committee  on  all  matters  relating  to  the
         compensation of its  Participants,  the date and  circumstances  of the
         retirement,  disability,  death or  Termination  of  Employment  of its
         Participants,   and   such   other   pertinent   information   as   the
         Administrative Committee may reasonably require.

                                   ARTICLE 9
                                Claims Procedures

9.1      Presentation  of  Claim.  Any  Participant  or  Surviving  Spouse  of a
         deceased  Participant  (such  Participant  or  Surviving  Spouse  being
         referred to below as a  "Claimant")  may deliver to the  Administrative
         Committee  a written  claim for a  determination  with  respect  to the
         amounts  distributable  to such Claimant from the Plan. If such a claim
         relates to the contents of a notice received by the Claimant, the claim
         must be made  within 60 days after  such  notice  was  received  by the
         Claimant.  The claim must state with  particularity  the  determination
         desired by the Claimant.  All other claims must be made within 180 days
         of the date on which the event that caused the claim to arise occurred.
         The claim must state with  particularity the  determination  desired by
         the Claimant.

9.2      Notification of Decision. The Administrative Committee shall consider a
         Claimant's  claim  within a  reasonable  time,  and  shall  notify  the
         Claimant in writing:

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         (a)      that the Claimant's requested determination has been made, and
                  that the claim has been allowed in full; or

         (b)      that the  Administrative  Committee  has reached a  conclusion
                  contrary,  in whole or in part,  to the  Claimant's  requested
                  determination,  and such  notice  must  set  forth in a manner
                  calculated to be understood by the Claimant:

                  (i)      the specific  reason(s)  for the denial of the claim,
                           or any part of it;

                  (ii)     specific  reference(s) to pertinent provisions of the
                           Plan upon which such denial was based;

                  (iii)    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

                  (iv)     an  explanation  of the claim  review  procedure  set
                           forth in Section 9.3 below.

9.3      Review of a Denied Claim.  Within 60 days after receiving a notice from
         the Administrative  Committee that a claim has been denied, in whole or
         in part, a Claimant (or the Claimant's duly authorized  representative)
         may file with the  Administrative  Committee  a written  request  for a
         review of the  denial of the claim.  Thereafter,  but not later than 30
         days after the review  procedure began, the Claimant (or the Claimant's
         duly authorized representative):

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         (a)      may review pertinent documents;

         (b)      may submit written comments or other documents; and/or

         (c)      may request a hearing, which the Administrative  Committee, in
                  its sole discretion, may grant.

9.4      Decision  on Review.  The  Administrative  Committee  shall  render its
         decision  on  review  promptly,  and not later  than 60 days  after the
         filing of a written request for review of the denial,  unless a hearing
         is held or other  special  circumstances  require  additional  time, in
         which case the  Administrative  Committee's  decision  must be rendered
         within 120 days after such  date.  Such  decision  must be written in a
         manner  calculated  to be  understood  by the  Claimant,  and  it  must
         contain:

         (a)      specific  reasons for the decision;  specific  reference(s) to
                  the  pertinent  Plan  provisions  upon which the  decision was
                  based; and

         (b)      such  other  matters  as the  Administrative  Committee  deems
                  relevant.

9.5      Legal Action. A Claimant's  compliance with the foregoing provisions of
         this Article 9 is a mandatory  prerequisite  to a  Claimant's  right to
         commence any legal action with respect to any claim for benefits  under
         this Plan.

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                                   ARTICLE 10
                                     Funding

10.1     Establishment  of the Trust.  The Company may establish a Trust to fund
         benefit payments due under the Plan. Contributions shall be made at the
         discretion of the Employers  and the Employers  shall  transfer over to
         the Trust such assets,  if any, as the  Employers  determine,  in their
         sole  discretion.  Benefits  not paid by the  Trust  shall be paid from
         general assets of the Employers.

10.2     Interrelationship of the Plan and the Trust. The provisions of the Plan
         and the Plan  Agreement  shall  govern the rights of a  Participant  to
         receive distributions pursuant to the Plan. The provisions of any Trust
         shall  govern  the  rights  of  the  Employers,  Participants  and  the
         creditors of the Employers to the assets transferred to the Trust. Each
         Employer shall at all times remain liable to carry out its  obligations
         under  the  Plan.  Each  Employer's  obligations  under the Plan may be
         satisfied  with Trust assets  distributed  pursuant to the terms of the
         Trust,   and  any  such   distribution   shall  reduce  the  Employer's
         obligations under this Agreement.

                                   ARTICLE 11
                                  Miscellaneous

11.1     Unsecured  General  Creditor.  A  Participant  and a Surviving  Spouse,
         successors  and  assigns  shall  have no  legal  or  equitable  rights,
         interests or claims in any  property or assets of an Employer.  Any and
         all  of an  Employer's  assets  shall  be,

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         and remain, the general, unpledged unrestricted assets of the Employer.
         An  Employer's  obligation  under the Plan  shall be merely  that of an
         unfunded and unsecured promise to pay money in the future.

11.2     Employer's  Liability.  An  Employer's  liability  for the  payment  of
         benefits  shall be defined only by the Plan. An Employer  shall have no
         obligation to a Participant under the Plan except as expressly provided
         in the Plan.

11.3     Nonassignability. Neither a Participant nor any other person shall have
         any right to  commute,  sell,  assign,  transfer,  pledge,  anticipate,
         mortgage or  otherwise  encumber,  transfer,  hypothecate  or convey in
         advance of actual receipt,  the amounts, if any, payable hereunder,  or
         any part  thereof,  which are,  and all rights to which are,  expressly
         declared  to be,  unassignable  and  non-transferable.  No  part of the
         amounts payable shall,  prior to actual payment,  be subject to seizure
         or sequestration  for the payment of any debts,  judgments,  alimony or
         separate  maintenance owed by a Participant or any other person, nor be
         transferable by operation of law in the event of a Participant's or any
         other person's bankruptcy or insolvency.

11.4     Not a Contract of  Employment.  The terms and  conditions  of this Plan
         shall not be deemed to constitute a contract of employment  between any
         Employer and the Participant. Such employment is hereby acknowledged to
         be an "at will" employment  relationship  that can be terminated at any
         time for any reason,  with or without cause,  unless expressly provided
         in a written employment agreement.

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         Nothing in this Plan shall be deemed to give a Participant the right to
         be  retained in the service of any  Employer or to  interfere  with the
         right of any Employer to discipline or discharge the Participant at any
         time.

11.5     Furnishing  Information.  A Participant or his or her Surviving  Spouse
         will cooperate with the Administrative  Committee by furnishing any and
         all information requested by the Administrative Committee and take such
         other  actions  as  may  be  requested  in  order  to  facilitate   the
         administration  of the Plan and the  payments  of  benefits  hereunder,
         including but not limited to taking such physical  examinations  as the
         Administrative Committee may deem necessary.

11.6     Terms. Whenever any words are used herein in the masculine,  they shall
         be  construed  as though  they were in the  feminine in all cases where
         they  would so apply;  and  wherever  any words are used  herein in the
         singular or in the plural,  they shall be construed as though they were
         used in the  plural or the  singular,  as the case may be, in all cases
         where they would so apply.

11.7     Captions. The captions of the articles, sections and paragraphs of this
         Plan are for  convenience  only and shall  not  control  or affect  the
         meaning or construction of any of its provisions.

11.8     Governing Law.  Subject to ERISA,  the provisions of this Plan shall be
         construed and  interpreted  according to the internal laws of the State
         of California without regard to its conflict of laws principles.

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11.9     Notice.  Any notice or filing  required or permitted to be given to the
         Administrative  Committee  under  this Plan shall be  sufficient  if in
         writing and hand-delivered, or sent by registered or certified mail, to
         the address below:

                           Chief Financial Officer
                           California Water Service Company
                           1720 North First Street
                           San Jose, CA 95112

         Such notice  shall be deemed  given as of the date of  delivery  or, if
         delivery is made by mail,  as of the date shown on the  postmark on the
         receipt for registration or certification.

         Any notice or filing required or permitted to be given to a Participant
         under this Plan shall be sufficient  if in writing and  hand-delivered,
         or sent by mail, to the last known address of the Participant.

11.10    Successors.  The  provisions  of this Plan  shall bind and inure to the
         benefit of the  Participant's  Employer and its  successors and assigns
         and the Participant and the Participant's Surviving Spouse.

11.11    Spouse's  Interest.  The interest in the benefits hereunder of a spouse
         of  a  Participant   who  has   predeceased   the   Participant   shall
         automatically  pass to the Participant and shall not be transferable by
         such spouse in any manner,  including  but not limited to such spouse's
         will,  nor  shall  such  interest  pass  under  the  laws of  intestate
         succession.

11.12    Incompetent.   If  the  Administrative   Committee  determines  in  its
         discretion  that a benefit under this Plan is to be paid to a minor,  a
         person  declared  incompetent or

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         to a person  incapable of handling  the  disposition  of that  person's
         property,  the  Administrative  Committee  may  direct  payment of such
         benefit to the guardian, legal representative or person having the care
         and  custody  of such  minor,  incompetent  or  incapable  person.  The
         Administrative  Committee may require proof of minority,  incompetency,
         incapacity  or  guardianship,  as it  may  deem  appropriate  prior  to
         distribution  of the  benefit.  Any  payment  of a  benefit  shall be a
         payment  for the  account  of the  Participant  and  the  Participant's
         Beneficiary,  as the case may be, and shall be a complete  discharge of
         any liability under the Plan for such payment amount.

11.13    Court Order.  The  Administrative  Committee is  authorized to make any
         payments  directed  by court  order in any  action in which the Plan or
         Administrative Committee has been named as a party.

11.14    Distribution in the Event of Taxation.  If, for any reason,  all or any
         portion of a  Participant's  benefit under this Plan becomes taxable to
         the  Participant  prior to receipt,  a  Participant  may  petition  the
         Administrative  Committee for a distribution  of that portion of his or
         her benefit that has become taxable. Upon the grant of such a petition,
         which  grant  shall  not  be  unreasonably  withheld,  a  Participant's
         Employer  shall  distribute to the  Participant  immediately  available
         funds in an amount  equal to the taxable  portion of his or her benefit
         (which amount shall not exceed a  Participant's  unpaid Account Balance
         under  the  Plan).  If the  petition  is  granted,  the  tax  liability
         distribution  shall  be  made  within  90  days of the  date

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         when the Participant's  petition is granted.  Such a distribution shall
         affect and reduce the benefits to be paid under this Plan.

         IN WITNESS WHEREOF,  ____________________ has signed this Plan document
on __________________, 200_.

                                               CALIFORNIA WATER SERVICE
                                               COMPANY, a California corporation

                                               By: _____________________________

                                               Title: __________________________

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                                                                            -29-

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