Document:

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                                                                   EXHIBIT 10.34

                      EXECUTIVE CHANGE OF CONTROL AGREEMENT

     This EXECUTIVE CHANGE OF CONTROL AGREEMENT ("Agreement") is made as of the
7th day of December, 2001, between CIRCOR, Inc., a Massachusetts corporation
(the "Company"), and Barry L. Taylor, Sr. ("Executive").

     WHEREAS, the Company presently employs the Executive in which capacity the
Executive serves as an officer of the Company and its Parent (as defined below);
and

     WHEREAS, the Board of Directors of the Parent (the "Board") recognizes the
valuable services rendered to the Company, the Parent and their respective
affiliates by the Executive; and

     WHEREAS, the Board has determined that it is in the best interests of the
Company, the Parent and their affiliates to encourage in advance the continued
loyalty of the Executive as well as the Executive's continued attention to his
assigned duties and objectivity in the event of a threatened or possible change
in control of the Parent;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:

     1. Definitions. For purposes of this Agreement, the following terms shall
have the following meanings:

     "Cause" shall mean: (a) conduct by Executive constituting a material act of
willful misconduct in connection with the performance of his duties, including,
without limitation, misappropriation of funds or property of the Company or any
of its affiliates other than the occasional, customary and de minimis use of
Company property for personal purposes; (b) criminal or civil conviction of
Executive, a plea of novo contendere by Executive or conduct by Executive that
would reasonably be expected to result in material injury to the reputation of
the Company if he were retained in his position with the Company, including,
without limitation, conviction of a felony involving moral turpitude; (c)
continued, willful and deliberate non-performance by Executive of his duties
hereunder (other than by reason of Executive's physical or mental illness,
incapacity or disability) which has continued for more than thirty (30) days
following written notice of such non-performance from the Chief Executive
Officer; or (d) a violation by Executive of the Company's employment policies
which has continued following written notice of such violation from the Chief
Executive Officer.

     "Change in Control" shall mean any of the following:

          (a) Any "person," as such term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the "Act") (other than the
Parent, any of its subsidiaries, any member of the Home Family Group (as defined
herein) or any trustee, fiduciary or other person or entity holding securities
udder any employee benefit plan or trust of the Parent or any of its
subsidiaries), together with all "affiliates" and "associates" (as such terms
are defined in Rule 12b-2 under the Act) of such person, shall become the
"beneficial owner" (as such term is defined in Rule 13d-3 under the Act),
directly or indirectly, of securities of the Parent representing twenty-five
percent (25%) or more of either (A) the combined voting power of the Parent's
then outstanding securities having the right to voice in an election of the
Parent's Board ("Voting Securities") or (B) the then outstanding shares of
Parent's common stock, par value $0.01 per share ("Common Stock") (other than as
a result of an acquisition of securities directly from the Parent); or

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          (b) Incumbent Directors (as defined below) cease for any reason,
including, without limitation, as a result of a tender offer, proxy contest,
merger or similar transaction, to constitute at least a majority of the Board;
or

          (c) The stockholders of the Parent shall approve (A) any consolidation
or merger of the Parent where the stockholders of the Parent, immediately prior
to the consolidation or merger, would not, immediately after the consolidation
or merger, beneficially own (as such term is defined in Rule 13d-3 under the
Act), directly or indirectly, shares representing in the aggregate fifty percent
(50%) or more of the voting shares of the Parent or other party issuing cash or
securities in the consolidation or merger (or of its ultimate parent
corporation, if any), (B) any sale, lease, exchange or other transfer (in one
transaction or a series of transactions contemplated or arranged by any party as
a single plan) of all or substantially all of the assets of the Parent or (C)
any plan or proposal for the liquidation or dissolution of the Parent.

     Notwithstanding the foregoing, a "Change of Control" shall not be deemed to
have occurred for purposes of the foregoing clause (a) solely as the result of
an acquisition of securities by the Parent which, by reducing the number of
shares of Common Stock or other Voting Securities outstanding, increases the
proportionate number of shares beneficially owned by any person to twenty-five
percent (25%) or more of either (A) the combined voting power of all of the then
outstanding Voting Securities or (B) Common Stock; provided, however, that if
any person referred to in this sentence shall thereafter become the beneficial
owner of any additional shares of Voting Securities or Common Stock (other than
pursuant to a stock split, stock dividend, or similar transaction or as a result
of an acquisition of securities directly from the Parent) and immediately
thereafter beneficially owns twenty-five percent (25%) or more of either (A) the
combined voting power of all of the then outstanding Voting Securities or (B)
Common Stock, then a "Change of Control" shall be deemed to have occurred for
purposes of the foregoing clause (a).

     "Good Reason" shall mean that Executive has complied with the "Good Reason
Process" (hereinafter defined) following the occurrence of any of the following
events: (a) a substantial diminution or other substantive adverse change, not
consented to by Executive, in the nature or scope of Executive's
responsibilities, authorities, powers, functions or duties; (b) any removal,
during the term of this Agreement from Executive of his titles as an officer of
the Parent; (c) an involuntary reduction in Executive's Base Salary except for
across-the-board reductions similarly affecting all or substantially all
management employees; (d) a breach by the Company of any of its other material
obligations under this Agreement and the failure of the Company to cure such
breach within thirty (30) days after written notice thereof by Executive; (e)
the involuntary relocation of the Company's offices at which Executive is
principally employed or the involuntary relocation of the offices of Executive's
primary workgroup to a location more than thirty (30) miles from such offices,
or the requirement by the Company that Executive be based anywhere other than
the Company's offices at such location on an extended basis, except for required
travel on the Company's business to an extent substantially consistent with
Executive's business travel obligations; or (f) a reduction in Executive's
opportunity for annual incentive compensation below the annual incentive
opportunity most recently in effect under the Company's Executive Bonus
Incentive Plan prior to the Change in Control. "Good Reason Process" shall mean
that (i) Executive reasonably determines in good faith that a "Good Reason"
event has occurred; (ii) Executive notifies the Company in writing of the
occurrence of the Good Reason event; (iii) Executive cooperates in good faith
with the Company's efforts, for a period not less than ninety (90) days
following such notice, to modify Executive's employment situation in a manner
acceptable to Executive and Company; and (iv) notwithstanding such efforts, one
or more of the Good Reason events continues to exist and has not been modified
in a manner acceptable to Executive. If the Company cures the Good Reason event
in a manner acceptable to Executive during the ninety (90) day period, Good
Reason shall be deemed not to have occurred.

     "Incumbent Directors" shall mean persons who, as of the Commencement Date,
constitute the Board; provided that any person becoming a director of the Parent
subsequent to the Commencement Date shall be considered an Incumbent Director if
such person's election was approved by or such person was nominated for election
by a vote of at least a majority of the Incumbent Directors; but provided
further, that any such person whose initial assumption of office is in
connection with an actual or threatened election contest relating to the
election of members of the Board or other actual or threatened solicitation of
proxies or consents by or on behalf of a person other than the Board, including
by reason of agreement intended to avoid or settle any such actual or threatened
contest or solicitation, shall not be considered an Incumbent Director.

                                       2

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     "Parent" shall mean CIRCOR International, Inc., a Delaware corporation as
well as its successors by merger or otherwise.

     "Horne Family Group" shall mean Timothy P. Home and the George B. Home
Voting Trust.

     2. Term. The term of this Agreement shall extend from the date hereof (the
"Commencement Date") until the first anniversary of the Commencement Date;
provided, however, that the term of this Agreement shall automatically be
extended for one additional year on the first anniversary of the Commencement
Date and each anniversary thereafter unless, not less than 90 days prior to each
such date, either party shall have given notice to the other that it does not
wish to extend this Agreement; provided, further, that if a Change in Control
occurs during the original or extended term of this Agreement, the term of this
Agreement shall continue in effect for a period of not less than twelve (12)
months beyond the month in which the Change in Control occurred.

     3. Change in Control Payment. The provisions of this Paragraph 3 set forth
certain terms of an agreement reached between Executive and the Company
regarding Executive's rights and obligations upon the occurrence of a Change in
Control of the Parent. These provisions are intended to assure and encourage in
advance Executive's continued attention and dedication to his assigned duties
and his objectivity during the pendency and after the occurrence of any such
event. These provisions shall terminate and be of no further force or effect
beginning twelve (12) months after the occurrence of a Change of Control.

               (a) Change in Control.

                    (i) If within twelve (12) months after the occurrence of the
          first event constituting a Change in Control, Executive's employment
          is terminated by the Company without Cause as defined in Section 1 or
          Executive terminates his employment for Good Reason as provided in
          Section 1, then the Company shall pay Executive a lump sum in cash in
          an amount equal to one (1) times the sum of (A) Executive's current
          Base Salary plus (B) Executive's highest annual incentive compensation
          under the Company's Executive Bonus Incentive Plan in the three (3)
          immediately preceding fiscal years, excluding any sign-on bonus,
          retention bonus or any other special bonus. Such lump sum cash payment
          shall be paid to Executive within thirty (30) days following the Date
          of Termination; and

                    (ii) Notwithstanding anything to the contrary in any
          applicable option agreement or stock-based award agreement, upon a
          Change in Control, all stock options and other stock-based awards
          granted to Executive by the Parent shall immediately accelerate and
          become exercisable or non-forfeitable as of the effective date of such
          Change in Control. In addition, all restricted stock units held by the
          Executive pursuant to the Management Stock Purchase Plan shall become
          fully vested upon a Change of Control and the Executive shall be
          entitled to receive the shares of stock represented by such restricted
          stock units. Executive shall also be entitled to any other rights and
          benefits with respect to stock-related awards, to the extent and upon
          the terms, provided in the employee stock option or incentive plan or
          any agreement or other instrument attendant thereto pursuant to which
          such options or awards were granted; and

                    (iii) If the Executive is otherwise eligible for
          participation in the Company's Supplemental Executive Retirement Plan
          ("SERP"), the Executive shall be fully vested in his accrued benefit
          under the SERP as of the Date of Termination; and

                    (iv) The Company shall, for a period of one (1) year
          commencing on the Date of Termination, pay such health insurance
          premiums as may be necessary to allow Executive, Executive's spouse
          and dependents to continue to receive health insurance coverage
          substantially similar to the coverage they received prior to the Date
          of Termination.

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               (b) Additional Limitation.

                    (i) Anything in this Agreement to the contrary
          notwithstanding, in the event that any compensation, payment or
          distribution by the Company to or for the benefit of Executive,
          whether paid or payable or distributed or distributable pursuant to
          the terms of this Agreement or otherwise (the "Severance Payments"),
          would be subject to the excise tax imposed by Section 4999 of the
          Internal Revenue Code of 1986, as amended (the "Code"), the following
          provisions shall apply:

                              (A) If the Severance Payments, reduced by the sum
                    of (1) the Excise Tax and (2) the total of the Federal,
                    state and local income and employment taxes payable by
                    Executive on the amount of the Severance Payments which are
                    in excess of the Threshold Amount, are greater than or equal
                    to the Threshold Amount, Executive shall be entitled to the
                    full benefits payable under this Agreement.

                              (B) If the Threshold Amount is less than (x) the
                    Severance Payments, but greater than (y) the Severance
                    Payments reduced by the sum of (1) the Excise Tax and (2)
                    the total of the Federal, state, and local income and
                    employment taxes on the amount of the Severance Payments
                    which are in excess of the Threshold Amount, then the
                    benefits payable under this Agreement shall be reduced (but
                    not below zero) to the extent necessary so that the maximum
                    Severance Payments shall not exceed the Threshold Amount. To
                    the extent that there is more than one method of reducing
                    the payments to bring them within the Threshold Amount,
                    Executive shall determine which method shall be followed;
                    provided that if Executive fails to make such determination
                    within 45 days after the Company has sent Executive written
                    notice of the need for such reduction, the Company may
                    determine the amount of such reduction in its sole
                    discretion.

                              For the purposes of this Paragraph 3, "Threshold
                    Amount" shall mean three times Executive's "base amount"
                    within the meaning of Section 280G(b)(3) of the Code and the
                    regulations promulgated thereunder less one dollar ($1.00);
                    and "Excise Tax" shall mean the excise tax imposed by
                    Section 4999 of the Code, and any interest or penalties
                    incurred by Executive with respect to such excise tax.

                    (ii) The determination as to which of the alternative
          provisions of Paragraph 3(b)(i) shall apply to Executive shall be made
          by KPMG LLP or any other nationally recognized accounting firm
          selected by the Company (the "Accounting Firm"), which shall provide
          detailed supporting calculations both to the Company and Executive
          within 15 business days of the Date of Termination, if applicable, or
          at such earlier time as is reasonably requested by the Company or
          Executive. For purposes of determining which of the alternative
          provisions of Paragraph 3(b)(i) shall apply, Executive shall be deemed
          to pay federal income taxes at the highest marginal rate of federal
          income taxation applicable to individuals for the calendar year in
          which the determination is to be made, and state and local income
          taxes at the highest marginal rates of individual taxation in the
          state and locality of Executive's residence on the Date of
          Termination, net of the maximum reduction in federal income taxes
          which could be obtained from deduction of such state and local taxes.
          Any determination by the Accounting Firm shall be binding upon the
          Company and Executive.

     4. Unauthorized Disclosures. Executive acknowledges that in the course of
his employment with the Company (and, if applicable, its predecessors), he has
been allowed to become, and will continue to be allowed to become, acquainted
with the Company's and the Parent's business affairs, information, trade
secrets, and other matters which are of a proprietary or confidential nature,
including but not limited to the Company's, the Parent's and their affiliates'
and predecessors' operations, business opportunities, price and cost
information, finance, customer information, business plans, various sales
techniques, manuals, letters, notebooks, procedures, reports, products,
processes, services, and other confidential information and knowledge
(collectively the "Confidential Information") concerning the Company's, the
Parent's and their affiliates' and predecessors' business. The Company agrees to
provide on an ongoing basis such Confidential Information as the Company deems
necessary or desirable to aid Executive in the performance of his duties.
Executive understands and acknowledges that such

                                       4

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Confidential Information is confidential, and he agrees not to disclose such
Confidential Information to anyone outside the Company or the Parent except to
the extent that (i) Executive deems such disclosure or use reasonably necessary
or appropriate in connection with performing his duties on behalf of the Company
and the Parent, (ii) Executive is required by order of a court of competent
jurisdiction (by subpoena or similar process) to disclose or discuss any
Confidential Information, provided that in such case, Executive shall promptly
inform the Company or the Parent, as appropriate, of such event, shall cooperate
with the Company or the Parent, as appropriate, in attempting to obtain a
protective order or to otherwise restrict such disclosure, and shall only
disclose Confidential Information to the minimum extent necessary to comply with
any such court order; (iii) such Confidential Information becomes generally
known to and available for use in the Company's industry (the "Fluid-Control
Industry"), other than as a result of any action or inaction by Executive; or
(iv) such information has been rightfully received by a member of the
Fluid-Control Industry or has been published in a form generally available to
the Fluid-Control Industry prior to the date Executive proposes to disclose or
use such information. Executive further agrees that he will not during
employment and/or at any time thereafter use such Confidential Information in
competing, directly or indirectly, with the Company or the Parent. At such time
as Executive shall cease to be employed by the Company, he will immediately turn
over to the Company or the Parent, as appropriate, all Confidential Information,
including papers, documents, writings, electronically stored information, other
property, and all copies of them provided to or created by him during the course
of his employment with the Company. The provisions of this Paragraph 4 shall
survive termination of this Agreement for any reason.

     5. Covenant Not to CompeteIn consideration of the benefits afforded the
Executive under the terms provided in this Agreement and as a means to aid in
the performance and enforcement of the terms of the provisions of Paragraph 4,
Executive agrees that

          (a) during the term of Executive's employment with the Company and for
a period of twelve (12) months thereafter, regardless of the reason for
termination of employment, Executive will not, directly or indirectly, as an
owner, director, principal, agent, officer, employee, partner, consultant,
servant, or otherwise, carry on, operate, manage, control, or become involved in
any manner with any business, operation, corporation, partnership, association,
agency, or other person or entity which is engaged in a business that is
competitive with any of the Company's or the Parent's products which are
produced by the Company or the Parent or any affiliate of either entity as of
the date of Executive's termination of employment with the Company, in any area
or territory in which the Company or the Parent or any affiliate of either
entity conducts operations; provided, however, that the foregoing shall not
prohibit Executive from owning up to one percent (1%) of the outstanding stock
of a publicly held company engaged in the Fluid-Control Industry; and

          (b) during the term of Executive's employment with the Company and for
a period of twelve (12) months thereafter, regardless of the reason for
termination of employment, Executive will not directly or indirectly solicit or
induce any present or future employee of the Company or the Parent or any
affiliate of either entity to accept employment with Executive or with any
business, operation, corporation, partnership, association; agency, or other
person or entity with which Executive may be associated, and Executive will not
employ or cause any business, operation, corporation, partnership, association,
agency, or other person or entity with which Executive maybe associated to
employ any present or future employee of the Company or the Parent without
providing the Company or the Parent, as appropriate, with ten (10) days' prior
written notice of such proposed employment.

     Should Executive violate any of the provisions of this Paragraph, then in
addition to all other rights and remedies available to the Company at law or in
equity, the duration of this covenant shall automatically be extended for the
period of time from which Executive began such violation until he permanently
ceases such violation.

     6. NOTICE For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
certified mail, return receipt requested, postage prepaid, addressed as follows:

      If to the Executive:

                    At his home address as shown
                    in the Company's personnel records;

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      If to the Company:
                    CIRCOR, Inc.
                    35 Corporate Drive
                    Burlington, MA  01803
                    Attention:  Board of Directors of CIRCOR International, Inc.

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

     7. Not an Employment Contract. This Agreement is intended only to provide
those benefits for the Executive as set forth in Paragraph 3 in connection with
a Change of Control. As such, this Agreement is not intended to and does not in
any way constitute an employment agreement or other contract which would cause
the employee to be considered anything other than an employee at will or to in
any way be entitled to any specific payments or benefits from the Company in the
event of a termination of employment not subject to Paragraph 3 of this
Agreement.

     8. Miscellaneous. No provisions of this Agreement may be modified, waived,
or discharged unless such waiver, modification, or discharge is agreed to in
writing and signed by Executive and such officer of the Company as may be
specifically designated by the Board. No waiver by either party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. No agreements or
representations, oral or otherwise, express or implied, unless specifically
referred to herein, with respect to the subject matter hereof have been made by
either party which are not set forth expressly in this Agreement. The validity,
interpretation, construction, and performance of this Agreement shall be
governed by the laws of the Commonwealth of Massachusetts (without regard to
principles of conflicts of laws).

     9. Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect. The invalid portion of this Agreement, if any, shall be modified by any
court having jurisdiction to the extent necessary to render such portion
enforceable.

     10. Counterparts. This Agreement may be executed in several counterparts,
each of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

     11. Arbitration; Other Disputes. In the event of any dispute or controversy
arising under or in connection with this Agreement, the parties shall first
promptly try in good faith to settle such dispute or controversy by mediation
under the applicable rules of the American Arbitration Association before
resorting to arbitration. In the event such dispute or controversy remains
unresolved in whole or in part for a period of thirty (30) days after it arises,
the parties will settle any remaining dispute or controversy exclusively by
arbitration in Boston, Massachusetts, in accordance with the rules of the
American Arbitration Association then in effect. Judgment may be entered on the
arbitrator's award in any court having jurisdiction. Notwithstanding the above,
the Company shall be entitled to seek a restraining order or injunction in any
court of competent jurisdiction to prevent any continuation of any violation of
Paragraph 4 or 5 hereof.

     12. Litigation and Regulatory Cooperation. During and after Executive's
employment, Executive shall reasonably cooperate with the Company and the Parent
in the defense or prosecution of any claims or actions now in existence or which
may be brought in the future against or on behalf of the Company and/or the
Parent which relate to events or occurrences that transpired while Executive was
employed by the Company; provided, however, that such cooperation shall not
materially and adversely affect Executive or expose Executive to an increased
probability of civil or criminal litigation. Executive's cooperation in
connection with such claims or actions shall include, but not be limited to,
being available to meet with counsel to prepare for discovery or trial and to
act as a

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witness on behalf of the Company and/or the Parent at mutually convenient times.
During and after Executive's employment, Executive also shall cooperate fully
with the Company and the Parent in connection with any investigation or review
of any federal, state or local regulatory authority as any such investigation or
review relates to events or occurrences that transpired while Executive was
employed by the Company. The Company shall also provide Executive with
compensation on an hourly basis (to be derived from the sum of his Base
Compensation and Average Incentive Compensation) for requested litigation and
regulatory cooperation that occurs after his termination of employment, and
reimburse Executive for all costs and expenses incurred in connection with his
performance under this Paragraph 12, including, but not limited to, reasonable
attorneys' fees and costs.

     13. Gender Neutral. Wherever used herein, a pronoun in the masculine gender
shall be considered as including the feminine gender unless the context clearly
indicates otherwise.

                            [SIGNATURE PAGE FOLLOWS]

                                       7

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         IN WITNESS WHEREOF, the parties have executed this Agreement effective
on the date and year first above written.

                                           CIRCOR, INC.

                                           By:   /s/  David A. Bloss, Sr.
                                              ----------------------------------
                                               David A. Bloss, Sr.
                                               President

                                           EXECUTIVE

                                                 /s/  Barry L. Taylor, Sr.
                                              ----------------------------------
                                               Barry L. Taylor, Sr.<PAGE>

                                                                    EXHIBIT 10.9

                          MELLON FINANCIAL CORPORATION
                          ----------------------------

                    1990 ELECTIVE DEFERRED COMPENSATION PLAN
                    ----------------------------------------

                 FOR DIRECTORS AND MEMBERS OF THE ADVISORY BOARD
                 -----------------------------------------------

                   Amended and Restated as of January 1, 1997
                         Amended as of January 15, 1999
                          Amended as of January 1, 2002

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                                TABLE OF CONTENTS
                                -----------------

<TABLE>
<CAPTION>
                                                                          PAGE
                                                                          ----
<S>                                                                       <C>
PREAMBLE ................................................................   1

ARTICLE I ...............................................................   1

   DEFINITIONS ..........................................................   1

     1.1   Account ......................................................   1
     1.2   Beneficiary ..................................................   2
     1.3   Board ........................................................   2
     1.4   Committee ....................................................   2
     1.5   Company ......................................................   2
     1.6   Declared Rate ................................................   2
     1.7   Deferral Commitment ..........................................   2
     1.8   Deferral Election ............................................   2
     1.9   Early Distribution Account ...................................   2
     1.10  Effective Date ...............................................   2
     1.11  Elective Deferred Compensation ...............................   2
     1.12  Enrollment Period ............................................   2
     1.13  Financial Hardship ...........................................   2
     1.14  Normal Distribution Account ..................................   3
     1.15  Participant ..................................................   3
     1.16  Plan .........................................................   3
     1.17  Plan Year ....................................................   3
     1.18  Prior Account ................................................   3
     1.19  Prior Plan ...................................................   3
     1.20  Retirement ...................................................   3
     1.21  Service ......................................................   3
     1.22  Special Distribution Account .................................   3
     1.23  T-Note Rate ..................................................   3
     1.24  Valuation Date ...............................................   3
     1.25  Variable Fund Options ........................................   4
     1.26  Window Period ................................................   4

ARTICLE II ..............................................................   4

   ADMINISTRATION .......................................................   4

     2.1   Administrator ................................................   4
     2.2   Powers and Duties ............................................   4
</TABLE>

                                       (i)

<PAGE>

<TABLE>
<S>                                                                       <C>
     2.3   Procedures ...................................................  5
     2.4   Establishment of Rules .......................................  5
     2.5   Limitation of Liability ......................................  6
     2.6   Compensation and Insurance ...................................  6
     2.7   Removal and Resignation ......................................  6
     2.8   Claims Procedure .............................................  6

ARTICLE III .............................................................  6

   PARTICIPATION AND DEFERRAL COMMITMENTS ...............................  6

     3.1   Eligibility and Participation ................................  6
     3.2   Duration of Deferral Commitment ..............................  7
     3.3   Basic Forms of Deferral ......................................  7
     3.4   Limitations on Deferrals .....................................  8
     3.5   Modification of Deferral Commitments on
           Financial Hardship ...........................................  8
     3.6   Commencement of Deferral Commitment ..........................  8
     3.7   Roll-Over of Prior Accounts ..................................  8
     3.8   Termination of Plan Deferral Commitments .....................  8

ARTICLE IV ..............................................................  9

   DEFERRED COMPENSATION ACCOUNTS .......................................  9

     4.1   Accounts .....................................................  9
     4.2   Elective Deferred Compensation ...............................  9
     4.3   Crediting Rate ...............................................  9
     4.4   Valuation of Accounts ........................................ 10
     4.5   Vesting of Accounts .......................................... 10
     4.6   Statement of Accounts ........................................ 10

ARTICLE V ............................................................... 11

   PLAN BENEFITS ........................................................ 11

     5.1   Plan Benefit ................................................. 11
     5.2   Normal Distribution Account .................................. 12
     5.3   Survivor Benefits ............................................ 13
     5.4   Early Distribution Account ................................... 16
     5.5   Hardship Distributions ....................................... 16
     5.6   Valuation and Settlement ..................................... 17
</TABLE>

                                      (ii)

<PAGE>

<TABLE>
<S>                                                                       <C>
     5.7   Change in Control and Unscheduled Distributions ..............  17
     5.8   Distributions from General Assets ............................  19
     5.9   Withholding and Payroll Taxes ................................  19
     5.10  Payment to Guardian ..........................................  19
     5.11  Small Benefit ................................................  19
     5.12  Protective Provisions ........................................  19
     5.13  Notices and Elections ........................................  20
     5.14  Prior and Special Distribution Accounts ......................  20

ARTICLE VI ..............................................................  20

   DESIGNATION OF BENEFICIARY ...........................................  20

     6.1   Designation of Beneficiary ...................................  20
     6.2   Failure to Designate Beneficiary .............................  20

ARTICLE VII .............................................................  21

   FORFEITURES TO COMPANY ...............................................  21

     7.1   Distribution of Participant's Interest When Company
           is Unable to Locate Distributees .............................  21

ARTICLE VIII ............................................................  21

   MAINTENANCE OF ACCOUNTS ..............................................  21

ARTICLE IX ..............................................................  21

   AMENDMENT AND TERMINATION OF THE PLAN ................................  21

     9.1   Amendment ....................................................  21
     9.2   Company's Right to Terminate .................................  22

ARTICLE X ...............................................................  22

   SPENDTHRIFT PROVISIONS ...............................................  22
</TABLE>

                                      (iii)

<PAGE>

<TABLE>
<S>                                                                       <C>
ARTICLE XI ..............................................................  23

   MISCELLANEOUS ........................................................  23

     11.1  Right of Company to Replace Members of Board of
           Directors and Advisory Board; Obligations ....................  23
     11.2  Title to and Ownership of Assets
           Held for Accounts ............................................  23
     11.3  Nature of Liability to Participants ..........................  23
     11.4  Text of Plan to Control ......................................  23
     11.5  Law Governing and Severability ...............................  23
     11.6  Name .........................................................  24
     11.7  Gender .......................................................  24
     11.8  Trust Fund ...................................................  24
</TABLE>

                                      (iv)

<PAGE>

                          MELLON FINANCIAL CORPORATION
                    1990 ELECTIVE DEFERRED COMPENSATION PLAN
                 FOR DIRECTORS AND MEMBERS OF THE ADVISORY BOARD
                  (Amended and Restated as of January 1, 1997)

                                    PREAMBLE

The purpose of this 1990 Elective Deferred Compensation Plan for Directors and
Members of the Advisory Board (the "Plan") is to offer each non-employee member
of the Board of Directors and each member of the Advisory Board of Mellon
Financial Corporation (the "Company") the opportunity to defer receipt of
compensation to be earned for service in such capacity and to accumulate
supplemental funds for retirement, special needs prior to retirement, or death.
The Plan was originally effective as of January 1, 1990. This amended and
restated Plan shall only apply to Participants who serve as non-employee members
of the Board of Directors or the Advisory Board of the Company after January 1,
1997. The Plan as previously in effect shall apply to all Participants who
terminated their service with the Board of Directors and the Advisory Board of
the Company prior to January 1, 1997.

The Mellon Financial Corporation Deferred Compensation Plan for Directors and
Members of the Advisory Board which was originally adopted on July 14, 1980 (the
"Prior Plan") will continue in effect, but a Participant in this Plan will not
be eligible to make any new deferrals under the Prior Plan. A Participant may
elect to transfer account balances under the Prior Plan to this Plan whenever
the Committee that administers this Plan may permit. No Accounts held under this
Plan may be transferred to the Prior Plan.

The Corporate Benefits Committee ("Committee" or "CBC") of the Company shall be
the "administrator" responsible for administering the Plan in accordance with
its terms but such designation of the Committee shall not be construed, directly
or indirectly, as evidencing any intent on the part of the Company that the Plan
be governed by or enforceable under the Employee Retirement Income Security Act
of 1974, as amended ("ERISA"); it being the intent of the Company that such Plan
be governed by and enforceable under the laws of the Commonwealth of
Pennsylvania.

                                    ARTICLE I
                                   DEFINITIONS
                                   -----------

When used herein, the following words shall have the following meanings unless
the content clearly indicates otherwise:

1.1 Account. "Account" means the record-keeping device used by the Company to
    -------
measure and determine the amounts to be paid to a Participant under the Plan.
Separate Accounts will be established for each Participant and as may otherwise
be required.

                                       1

<PAGE>

1.2  Beneficiary. "Beneficiary" means the person who under this Plan becomes
     -----------
entitled to receive a Participant's interest in the event of his or her death.

1.3  Board. "Board" means the Board of Directors of the Company or any committee
     -----
thereof acting within the scope of its authority.

1.4  Committee. "Committee" means the Corporate Benefits Committee appointed to
     ---------
administer the Plan pursuant to Article II.

1.5  Company. "Company" means Mellon Financial Corporation, a Pennsylvania
     -------
corporation, and any successor in interest.

1.6  Declared Rate. "Declared Rate" means the greater of 7.5% or the T-Note Rate
     -------------
that is applicable to the Plan Year.

1.7  Deferral Commitment. "Deferral Commitment" means a commitment made by a
     -------------------
Participant pursuant to Article III for which a Deferral Election has been
submitted by the Participant to the Committee.

1.8  Deferral Election. "Deferral Election" means the written agreement to defer
     -----------------
receipt of compensation submitted by a Participant to the Committee or its
delegates prior to the commencement of the period in which the deferred
compensation is to be earned.

1.9  Early Distribution Account. "Early Distribution Account" means an account
     --------------------------
established pursuant to Section 5.4 that provides for distribution of a benefit
prior to a Participant's Retirement.

1.10 Effective Date. "Effective Date" of this amended and restated Plan means
     --------------
January 1, 1997. The Plan originally became effective on January 1, 1990.

1.11 Elective Deferred Compensation. "Elective Deferred Compensation" means the
     ------------------------------
amount of compensation that a Participant elects to defer pursuant to a Deferral
Commitment.

1.12 Enrollment Period. "Enrollment Period" means (a) the 30 days following the
     -----------------
effective date of an individual's first-time election or appointment to the
Board or when he or she otherwise becomes eligible to participate in the Plan
for the first time and (b) an annual fall enrollment period during which
eligible individuals may file new or amended Deferral Elections.

1.13 Financial Hardship. "Financial Hardship" means an immediate and substantial
     ------------------
financial need of the Participant or Beneficiary, determined by the Committee on
the basis of written information supplied by the Participant in accordance with
such standards as are, from time to time, established by the Committee.

                                        2

<PAGE>

1.14 Normal Distribution Account. "Normal Distribution Account" means an Account
     ---------------------------
established pursuant to Section 5.2 that provides for distribution of a benefit
following Retirement.

1.15 Participant.  "Participant" means any individual who is participating in
     -----------
this Plan as provided in Article III.

1.16 Plan. "Plan" means this "1990 Elective Deferred Compensation Plan for
     ----
Directors and Members of the Advisory Board" as set forth in this document and
as the same may be amended, administered or interpreted from time to time.

1.17 Plan Year. "Plan Year" means each calendar year beginning on January 1 and
     ---------
ending on December 31.

1.18 Prior Account. "Prior Account" means an account originally established for
     -------------
a Participant under the Prior Plan that is transferred to this Plan.

1.19 Prior Plan. "Prior Plan" means the Mellon Financial Corporation Deferred
     ----------
Compensation Plan for Directors and Members of the Advisory Board that was
originally adopted on July 14, 1980, as amended from time to time.

1.20 Retirement. "Retirement" means that a Participant no longer serves on
     ----------
either the Board of Directors or the Advisory Board of the Company, for any
reason other than death.

1.21 Service. "Service" means service on the Board of Directors or Advisory
     -------
Board of the Company.

1.22 Special Distribution Account. "Special Distribution Account" means an
     ----------------------------
Account established for any Elective Deferred Compensation (plus earnings
thereon) earned prior to January 1, 1997, which the Participant elected to have
distributed while serving as a non-employee member of the Board of Directors or
the Advisory Board; provided, however, such term shall not include amounts held
for a Participant in a Prior Account.

1.23 T-Note Rate. "T-Note Rate" means for each Plan Year the interest rate that
     -----------
is equivalent to an effective annual yield equal to the 120 month rolling
average rate of ten-year United States Treasury Notes as of the July 31
preceding the applicable Plan Year. This rate will be determined once each year
by an outside source selected by the Company.

1.24 Valuation Date. "Valuation Date" means the last day of each month, or such
     --------------
other dates as the Committee may determine in its discretion, which may be
either more or less frequent, for the valuation of Participants' Accounts.

                                       3

<PAGE>

1.25 Variable Fund Options. "Variable Fund Options" means the variable rate
     ---------------------
investment fund alternatives approved by the Committee and offered to
Participants for that Plan Year.

1.26 Window Period. "Window Period" means a period of thirty calendar days which
     -------------
begins on the third business day following the date of release of annual or
quarterly earnings of the Company, or such other period as the Committee may
determine in its discretion.

                                   ARTICLE II
                                 ADMINISTRATION
                                 --------------

2.1 Administrator. Except as hereinafter provided, the Committee shall be the
    -------------
administrator of the Plan and shall be responsible for administering the Plan in
accordance with its terms and for the administrative responsibilities
hereinafter described with respect to the Plan. Whenever any action is required
or permitted to be taken in the administration of the Plan, the Committee shall
take such action unless the Committee's power is expressly limited herein or by
operation of law. The Committee may delegate its duties and responsibilities as
it, in its sole discretion, deems necessary or appropriate to the execution of
such duties and responsibilities. The Committee as a whole or any of its members
may serve in more than one capacity with respect to the Plan.

2.2 Powers and Duties. The Committee, or its delegates, shall maintain and keep
    -----------------
(or cause to be maintained and kept) such records as are necessary for the
efficient operation of the Plan or as may be required by any applicable law,
regulation, or ruling and shall provide for the preparation and filing of such
forms, reports, information, and documents as may be required to be filed with
any governmental agency or department and with the Plan's Participants and/or
other Beneficiaries.

Except to the extent expressly reserved to the Company or the Board, the
Committee shall have all powers necessary to carry out the administrative
provisions of the Plan and to satisfy the requirements of any applicable law or
laws. These powers shall include, by way of illustration and not limitation, the
exclusive powers and discretionary authority necessary to:

     (a) construe and interpret the Plan; decide all questions of eligibility;
     decide all questions of fact relating to claims for benefits; and determine
     the amount, time, manner, method, and mode of payment of any benefits
     hereunder;

     (b) direct the Company, and/or the trustee of any trust established at the
     discretion of the Company to provide for the payment of benefits under the
     Plan, concerning the amount, time, manner, method, and mode of payment of
     any benefits hereunder;

                                       4

<PAGE>

     (c) prescribe procedures to be followed and forms to be used by
     Participants and/or other persons in filing applications or elections;

     (d) prepare and distribute, in such manner as may be required by law or as
     the Committee deems appropriate, information explaining the Plan; provided,
     however, that no such explanation shall contravene the terms of this Plan
     or increase the rights of any Participant or Beneficiary or the liabilities
     of the Company;

     (e) require from the Company and Participants such information as shall be
     necessary for the proper administration of the Plan;

     (f) appoint and retain individuals to assist in the administration and
     construction of the Plan, including such legal, clerical, accounting, and
     actuarial services as it may require or as may be required by any
     applicable law or laws;

     (g) approve the funds that will be offered as the Variable Fund Options for
     any Plan Year; and

     (h) perform all other administrative functions which are not expressly
     reserved to the Company or the Board, including, but not limited to, those
     supplemental duties and responsibilities described in the "Mellon Financial
     Corporation Corporate Benefits Committee Charter and Summary of Operations"
     approved by the Board on September 17, 1991 (the "CBC Charter") which are
     not inconsistent with the Board's intent that the Plan not be construed as
     governed by or subject to ERISA.

Without intending to limit the generality of the foregoing, the Committee shall
have the power to amend the Plan, in whole or in part, in order to comply with
applicable law; provided, however, that no such amendment may increase the
duties and obligations of the Company without the consent of the Company. Except
as provided in the preceding sentence or unless directed by the Board or the
Human Resources Committee of the Board or otherwise required by law, the
Committee shall have no power to adopt, amend, or terminate the Plan, said
powers being exclusively reserve to the Board or the Human Resources Committee
of the Board.

2.3 Procedures. The Committee shall be organized and conduct its business with
    ----------
respect to the Plan in accordance with the organizational and procedural rules
set forth in the CBC Charter.

2.4 Establishment of Rules. The Committee shall have specific authority in its
    ----------------------
sole discretion to construe and interpret the terms of the Plan related to its
powers and duties, and to the extent that the terms of the Plan are incomplete,
the Committee shall have authority to establish such rules or regulations
related to its powers and duties as it may deem necessary and proper to carry
out the intent of the Company as to the purposes of the Plan.

                                       5

<PAGE>

2.5  Limitation of Liability. The Board, the members of the Committee, and any
     -----------------------
officer, employee, or agent of the Company shall not incur any liability
individually or on behalf of any other individuals or on behalf of the Company
for any act, or failure to act, made in good faith in relation to the Plan.

2.6  Compensation and Insurance. Members of the Committee shall serve without
     --------------------------
compensation for their services as such. Expenses incurred by members of the
Committee in the performance of their duties as herein provided, and the
compensation and expenses of persons retained or employed by the Committee for
services rendered in connection with the Plan shall, upon approval by the
Committee, be paid or reimbursed by the Company.

The Company shall indemnify and/or maintain and keep in force insurance in such
form and amount as may be necessary in order to protect the members of the
Committee, their delegates and appointees (other than persons who are
independent of the Company and are rendering services to the Committee or to or
with respect to the Plan) from any claim, loss, damage, liability, and expense
(including costs and attorneys' fees) arising from their acts or failures to act
with respect to the Plan, except where such actions or failures to act involve
willful misconduct or gross negligence.

2.7  Removal and Resignation. Any member of the Committee may resign and the
     -----------------------
Company may remove any member of the Committee in accordance with the procedures
established by the CBC Charter. The Committee shall remain fully operative
pending the filling of any vacancies, the remaining Committee members shaving
full authority to administer the Plan.

2.8  Claims Procedure. The right of any Participant or Beneficiary to receive a
     ----------------
benefit hereunder and the amount of such benefit shall be determined in
accordance with the procedures for determination of benefit claims established
and maintained by the Committee; which separate procedures, entitled Procedures
for Determination of Benefit Claims, are incorporated herein by this reference.

                                   ARTICLE III
                     PARTICIPATION AND DEFERRAL COMMITMENTS
                     --------------------------------------

3.1  Eligibility and Participation.
     -----------------------------

     (a)  Eligibility.  Eligibility to make a Deferral Commitment shall be
          -----------
     limited to non-employee members of the Board of Directors and members of
     the Advisory Board of the Company.

     (b)  Participation. An eligible individual may elect to participate in the
          -------------
     Plan by submitting a Deferral Election to the Committee or its delegates
     during the Enrollment Period preceding the period in which the deferred
     compensation is to be

                                       6

<PAGE>

     earned. The Deferral Election shall specify whether the deferred
     compensation shall be credited to a Normal Distribution Account or an Early
     Distribution Account for the Participant.

3.2  Duration of Deferral Commitment.
     -------------------------------

     (a)  A Deferral Commitment for a Normal Distribution Account or Early
     Distribution Account shall continue in effect until the Participant files a
     subsequent Deferral Election changing the amount of or stopping such
     Deferral Commitment.

     (b)  A Deferral Commitment for an Early Distribution Account shall
     terminate at the end of the Plan Year preceding the Plan Year that the
     Participant has selected for distribution of such Account.

     (c)  Except as provided in Sections 5.5 and 5.7 below, a subsequent
     Deferral Election shall become effective beginning with the next Plan Year
     following the date it is filed. A Subsequent Deferral Election shall not
     apply to any deferrals that represent payments for services performed prior
     to the beginning of the first Plan Year to which it applies, but otherwise
     shall apply to all future deferrals covered by the Deferral Commitment.

     (d)  A Participant's Deferral Commitments shall terminate upon the
     Participant's Retirement or death.

3.3  Basic Forms of Deferral. A Participant may file a Deferral Election to
     -----------------------
defer any payment by the Company or any affiliate of the Company for, or in lieu
of, services rendered to the Company or any affiliate of the Company. The amount
to be deferred shall be stated as a whole number percentage of the amount to be
paid to the Participant. Such payments may consist of, but shall not be limited
to, any or all of the following forms of compensation:

     (a)  Annual Retainer. The annual retainer paid for meetings of the Board of
          ---------------
     Directors or Advisory Board of the Company.

     (b)  Board Meeting Fees. The meeting fees paid for meetings of the Board of
          ------------------
     Directors or Advisory Board of the Company.

     (c)  Committee Meeting Fees. The meeting fees paid for meetings of
          ----------------------
     committees of the Board of Directors or Advisory Board of the Company.

     (d)  Special Deferrals. Fees paid for any other services rendered by the
          -----------------
     Participant to the Company or any affiliate of the Company.

                                       7

<PAGE>

3.4  Limitations on Deferrals.  The following limitations on deferrals shall
     ------------------------
apply:

     (a)  Minimum Deferrals. The minimum deferral amount for each of the basic
          -----------------
     forms of deferral in Section 3.3(a), (b) or (c) above is $2,000 for any
     Plan Year.

     (b)  Maximum Deferrals. A Participant shall not defer for any Plan Year
          -----------------
     more than one hundred percent (100%) of all payments made to the
     Participant for, or in lieu of, services rendered to the Company or
     affiliates of the Company.

     (c)  Prior Plan. A Participant may not defer under this Plan any
          ----------
     compensation that he elects to defer under the Prior Plan. In the event of
     any conflict between deferral elections under this Plan and the Prior Plan,
     the deferral election under this Plan shall take precedence and shall
     revoke any conflicting election under the Prior Plan.

     (d)  Waiver; Committee Discretion. The Committee may further limit the
          ----------------------------
     minimum or maximum amount deferred by any Participant or group of
     Participants, or waive the foregoing minimum and maximum limits for any
     Participant or group of Participants, for any reason.

3.5  Modification of Deferral Commitments on Financial Hardship. The Committee
     ----------------------------------------------------------
may permit a Participant to reduce the amount to be deferred, or waive the
remainder of the Deferral Commitment, upon a finding that the Participant has
suffered a Financial Hardship.

3.6  Commencement of Deferral Commitment. A Deferral Commitment shall be deemed
     -----------------------------------
to commence as of the first day of the Plan Year covered by the Deferral
Election for such Deferral Commitment. A Participant's Beneficiary will be
entitled to receive pre-retirement survivor benefits pursuant to Section 5.3(a)
with respect to the Deferral Commitment only in the event of the Participant's
death on or after such date while in Service on the Board of Directors or
Advisory Board of the Company.

3.7  Roll-Over of Prior Accounts. A Participant may elect to transfer Prior
     ---------------------------
Accounts held under the Prior Plan to this Plan whenever the Committee may
permit in its discretion. Prior Accounts that are transferred to this Plan shall
be valued and credited with interest under this Plan commencing on the date that
the Committee shall determine. Prior Accounts shall be distributed as provided
in Section 5.14.

3.8  Termination of Plan Deferral Commitments. All Deferral Commitments
     ----------------------------------------
established under the terms of the Plan prior to its amendment and restatement
as of January 1, 1997, shall terminate on December 31, 1996.

                                       8

<PAGE>

                                   ARTICLE IV
                         DEFERRED COMPENSATION ACCOUNTS
                         ------------------------------

4.1  Accounts. For record-keeping purposes only, Normal Distribution, Early
     --------
Distribution, Special Distribution and Prior Accounts shall be maintained as
applicable for each Participant's Elective Deferred Compensation. Accounts shall
be deemed to be credited with notional gains or losses as provided in Section
4.3 from the date of deferral through the Valuation Date.

4.2  Elective Deferred Compensation. A Participant's Elective Deferred
     ------------------------------
Compensation shall be credited to the Participant's Account as of the date when
the corresponding non-deferred portion of the compensation is paid or would have
been paid but for the Deferral Commitment. Prior Accounts that are transferred
to this Plan shall be valued and credited with interest under this Plan
commencing on the date determined by the Committee. Any withholding of taxes or
other amounts with respect to deferred compensation that is required by federal,
state or local law shall be withheld from the Participant's non-deferred
compensation to the maximum extent possible with any excess being withheld from
the Participant's Deferral Commitment or Account(s).

4.3  Crediting Rate. Accounts shall be credited with earnings and losses as of
     --------------
each Valuation Date from the dates when deferred amounts are credited to
Accounts based on the balance of each Account. Earnings and losses credited to
each Account shall be based on the Participant's choices among the Declared Rate
and the Variable Fund Options, subject to the terms of this Section. On and
after January 1, 2002, Participants and Beneficiaries may elect to change
investment elections at least quarterly but Participants and Beneficiaries shall
not be permitted to reallocate amounts between the Declared Rate and Variable
Fund Options.

     (a)  Compensation Deferred Before January 1, 2002 (T-Note Rate or Declared
          ---------------------------------------------------------------------
      Rate).
      -----

          (i)  Earnings During Participant's Lifetime. During a Participant's
          lifetime, all payments deferred by the Participant before January 1,
          2002 will be credited with earnings on a monthly basis at the
          applicable T-Note Rate for periods prior to January 1, 2002 or the
          applicable Declared Rate for all periods after January 1, 2002,
          subject to increase pursuant to Section 5.1.

          (ii) Earnings After Participant's Death. Following a Participant's
          death, all payments deferred by the Participant before January 1, 2002
          will be credited with interest on a monthly basis during each Plan
          Year at one hundred percent (100%) of the applicable T-Note Rate for
          periods prior to January 1, 2002, or the applicable Declared Rate for
          periods after January 1, 2002. Notwithstanding the preceding sentence,
          no interest shall be credited on a Participant's Account following the
          Participant's death whenever the Participant's Beneficiary receives

                                       9

<PAGE>

          pursuant to Section 5.4(a) a pre-retirement survivor benefit greater
          than the Participant's Account balance annuitized over the Payout
          Period.

     (b)  Compensation Deferred On Or After January 1, 2002 (Declared Rate or
          -------------------------------------------------------------------
     Variable Fund Options.
     ---------------------

          (i)  Earnings or Losses During Participant's Lifetime. During a
          Participant's lifetime, all payments deferred by the Participant on or
          after January 1, 2002 will be credited as elected by the Participant
          with earnings or losses that may accrue at either (x) the Declared
          Rate applicable to that Plan Year subject to increase pursuant to
          Section 5.1 or (y) based on the performance of the Variable Fund
          Options.

          (ii) Earnings or Losses After Participant's Death. Following a
          Participant's death, all payments deferred by the Participant on or
          after January 1, 2002 will be credited with earnings or losses that
          may accrue at either (x) one hundred percent (100%) of the Declared
          Rate applicable to that Plan Year or (y) based on the performance of
          the Variable Return Options elected by the Participant's Beneficiary.
          Notwithstanding the preceding sentence, no interest shall be credited
          on a Participant's Account following the Participant's death whenever
          the Participant's Beneficiary receives pursuant to Section 5.4(a) a
          pre-retirement survivor benefit greater than the Participant's Account
          balance annuitized over the Payout Period.

4.4  Valuation of Accounts. A Participant's Account(s) as of each Valuation Date
     ---------------------
shall consist of the balance of the Participant's Account(s) as of the
immediately preceding Valuation Date, increased by the Participant's Elective
Deferred Compensation and earnings credited to such Account(s) and reduced by
losses sustained by any investment alternative selected by the Participant or by
distributions made from such Account(s) since the immediately preceding
Valuation Date.

4.5  Vesting of Accounts. Each Participant shall be one hundred percent (100%)
     -------------------
vested at all times in the amounts credited to such Participant's Accounts.

4.6  Statement of Accounts. The Company shall submit to each Participant
     ---------------------
periodic statements setting forth the balance to the credit of the Accounts
maintained for the Participant.

                                       10

<PAGE>

                                    ARTICLE V
                                  PLAN BENEFITS
                                  -------------

5.1  Plan Benefit.  The Company shall pay a Plan benefit for the Participant's
     ------------
Normal Distribution, Early Distribution, Special Distribution and Prior Plan
Accounts, as determined below:

     (a)  Fully Enhanced T-Note Rate or Declared Rate. Unpaid Account balances
          -------------------------------------------
     of Participants who terminate Service upon Retirement on or after age 68,
     death, or at any time after a Change in Control, shall be credited
     retroactively for each Plan Year on the Valuation Date immediately
     preceding commencement of payment of benefits with respect to such Account
     balances with one hundred thirty-five percent (135%) of (i) the T-Note
     Rate, for periods prior to January 1, 2002 or (ii) the Declared Rate, if
     and to the extent elected, for periods after January 1, 2002.

     (b)  Enhanced T-Note Rate or Declared Rate. Unpaid Account balances of
          -------------------------------------
     Participants who terminate service upon Retirement before age 68 and prior
     to a Change in Control, for reasons other than death, shall be credited
     retroactively for each Plan Year on the Valuation Date immediately
     preceding commencement of payment of benefits with respect to such Account
     balances with a percentage of (i) the T-Note Rate, for periods before
     January 1, 2002, or (ii) the Declared Rate, if and to the extent elected,
     for periods after January 1, 2002, based on the Participant's completed
     years of Service, including years of Service before the Effective Date of
     this Plan, as follows:

     Completed Years
     of Service                       % of T-Note Rate
     ----------                       ----------------

     Less Than 3                            100%
     3 or More                              125%
     5 or More                              130%
     7 or More                              135%

     (c)  Early Distribution, Special Distribution and Prior Plan Accounts. The
          ----------------------------------------------------------------
     enhanced rates set forth under Sections 5.1(a) and (b) above shall also be
     credited retroactively to the portion of Early Distribution, Special
     Distribution and Prior Plan Accounts allocated to the T-Note Rate or the
     Declared Rate on the basis of the Participant's Service on the Valuation
     Date preceding each payment of benefits with respect to such Accounts
     before Retirement.

     (d)  Duration. The interest rates provided under Sections 5.1 (a) and (b)
          --------
     above shall be payable until the Participant's Accounts are distributed in
     full except in the event of the Participant's death. After the
     Participant's death, interest shall be credited pursuant to Section
     4.3(a)(ii) or Section 4.3(b)(ii).

                                       11

<PAGE>

5.2  Normal Distribution Account.
     ---------------------------

     (a)  Election of Retirement Benefit. A Participant may file a Deferral
          ------------------------------
     Election to defer compensation into a Normal Distribution Account and
     receive benefits from such Account following Retirement. A Participant may
     elect up to three (3) benefit payment options, each covering any whole
     percentage of his or her Normal Distribution Account balance at Retirement
     and specifying a date of commencement and duration of payments. A
     Participant's election of payment options shall be irrevocable, except as
     follows:

          (i)  Subject to the approval of the Committee, a Participant shall be
          permitted to file one new payment election per year which will
          supersede his or her original election (A) at any time more than 12
          months prior to his or her Retirement without penalty and (B) at any
          time during the 12 months preceding his or her Retirement subject to a
          penalty, which shall be forfeited to the Company, equal to six percent
          (6%) of the portion of his or her Account balance affected by the
          change. A new payment election filed within the aforesaid time limits
          will become effective upon the Participant's Retirement. In the event
          that a Participant accelerates his or her Retirement thereby causing a
          previously filed payment election to have been made within 12 months
          preceding Retirement, the next preceding timely payment election filed
          by the Participant shall be followed unless the Participant elects to
          have the six percent (6%) penalty of Section 5.2(a)(i)(B) above apply.
          No penalty shall apply to the first such payment election made by a
          Participant who was participating in the Plan prior to its amendment
          and restatement as of January 1, 1997, and such initial election shall
          be given effect unless the Participant subsequently files a new
          election.

          (ii) A Participant who has elected payments in installments may
          request in writing a payment in a lump sum, at any time after
          Retirement, of the amount of his or her Account balance that is
          reasonably necessary to meet the Participant's requirements due to a
          Financial Hardship.

          (iii) A Participant may elect to receive a payment in a lump sum at
          any time, subject to penalty, as provided in Section 5.7(b).

     (b)  Forms of Benefit Payment. The available forms of payment from a
          ------------------------
     Participant's Normal Distribution Account after Retirement are as follows:

          (i) One lump sum payment.

          (ii) For anyone retiring before January 1, 2002, monthly installment
          payments in approximately equal payments of principal and interest
          over a payment period of 60, 120 or 180 months, as elected by the
          Participant. The amount of the monthly installments shall be
          redetermined effective as of January 1 of each year based on

                                       12

<PAGE>

          the remaining Account balance and the remaining number of installment
          payments.

          (iii) For anyone retiring on or after January 1, 2002, annual
          installments in approximately equal payments of principal and
          earnings, if any, over a payment period of up to 15 years, as elected
          by the Participant. The payment of the annual installments shall begin
          January 1 following the Participant's Retirement and the amount shall
          be redetermined effective as of January 1 of each year based on the
          remaining Account balance and the remaining number of installment
          payments.

     (c)  Commencement of Retirement Benefit Payment. The available commencement
          ------------------------------------------
     dates for payment of benefits from a Participant's Normal Distribution
     Account are as follows:

          (i) For anyone retiring before January 1, 2002, upon Retirement.

          (ii) For anyone retiring on or after January 1, 2002, January 1
          following Retirement; provided, however, that lump sum payments may be
          made immediately following Retirement.

          (iii) Any January following Retirement; provided, however, that no
          payment may commence later than January of the year in which the
          Participant attains age 70 if Retirement is prior to age 70, and no
          later than the January following Retirement if Retirement is on or
          after age 70.

          (iv) For anyone retiring before January 1, 2002, the later of
          Retirement and the date the Participant attains age 60, 65 or 70.

          (v) For anyone retiring on or after January 1, 2002, January 1
          following the later of Retirement and the attainment of any age
          elected by Participant up to age 70.

     If a Participant does not elect a benefit payment option for his or her
     Normal Distribution Account or his Early Distribution Account, Plan
     benefits from such Account will be paid in annual installments over 15
     years, commencing in January of the year following Retirement.

5.3  Survivor Benefits.
     -----------------

     (a)  Pre-Retirement Survivor Benefits.
          --------------------------------

          (i)  Normal Distribution Accounts. If a Participant dies while in
               ----------------------------
          Service as a member of the Board of Directors or Advisory Board of the
          Company prior to receiving a complete distribution of his or her
          entire Normal Distribution Account balance, the amount payable as a
          survivor benefit for such Account shall be equal to its remaining
          unpaid balance, if any, plus an additional credit equal to the

                                       13

<PAGE>

          annual amount of the Deferral Commitment in effect at death for the
          Participant's Normal Distribution Account multiplied by the number of
          Plan Years until the year in which the Participant would have attained
          age 72; provided, however, that such multiplier shall be limited by a
          maximum of four (4) years.

          (ii) Early Distribution Accounts. If a Participant dies while in
               ---------------------------
          Service as a member of the Board of Directors or Advisory Board of the
          Company prior to receiving a complete distribution of his or her
          entire Early Distribution Account balance, the amount payable as a
          survivor benefit for such Account shall be equal to its remaining
          unpaid balance, if any, plus an additional credit equal to the annual
          amount of the Deferral Commitment in effect at death for the
          Participant's Early Distribution Account multiplied by the number of
          Plan Years remaining before commencement of payment of such Account;
          provided however, that such multiplier shall be limited by a maximum
          of four (4) years or the number of years until the year in which the
          Participant would have attained age 72.

          (iii) Covered Deferral Commitment. For purposes of Sections 5.3(a)(i)
                ---------------------------
          and (ii), a Participant's Deferral Commitment shall be determined
          based on projecting the annual retainer and meeting fees for the Board
          of Directors and Advisory Board of the Company and their committees in
          effect at the time of the Participant's death and taking into account
          any reduction in such annual retainer and meeting fees which would
          normally occur for members of the Advisory Board. A Deferral
          Commitment shall be deemed to be in effect beginning on the first day
          of the Plan Year after the Participant files a Deferral Election for
          such Deferral Commitment.

          (iv) Special Distribution Accounts and Prior Accounts. If a
               ------------------------------------------------
          Participant dies while in Service as a member of the Board of
          Directors or Advisory Board of the Company prior to receiving a
          complete distribution of his or her entire Special Distribution
          Account or Prior Account balance, if any, the amount payable as a
          survivor benefit for such Accounts shall be equal to its remaining
          unpaid balance, if any.

          (v) Commencement of Survivor Benefit. The pre-retirement survivor
              --------------------------------
          benefits for Normal and Early Distribution Accounts shall become
          effective beginning on the first day of the Plan Year after the
          Participant files a Deferral Election for a Normal or Early
          Distribution Account. A Participant's Beneficiary will be entitled to
          receive such pre-retirement survivor benefits only in the event of the
          Participant's death while in Service on or after such dates. The
          pre-retirement survivor benefits for all Special Distribution Accounts
          and Prior Accounts shall become effective as of January 1, 1997.

          (vi) Withdrawals. Whenever a Participant makes a withdrawal from any
               -----------
          Account, the Account balance shall be reduced by the amounts
          withdrawn, including any penalty thereon. If a Participant dies while
          in Service after

                                       14

<PAGE>

          complete distribution of his or her entire Account balances, no
          survivor benefit will be payable to the Participant's Beneficiary.

          (vii) Commencement of Payments. The pre-retirement survivor benefits
                ------------------------
          described above will be paid to the Participant's Beneficiary in ten
          (10) annual installments, commencing as soon as practicable after the
          Participant's death.

     (b)  Post-Retirement Survivor Benefits. If a Participant dies after
          ---------------------------------
     Retirement but before commencement of payment of retirement benefits with
     respect to his or her Normal Distribution Account balance, the Company will
     pay to the Participant's Beneficiary the installments of any such benefit
     that such Participant's Beneficiary would have received with respect to
     such Normal Distribution Account balance had the Participant commenced to
     receive retirement benefits on the day prior to such Participant's death.
     Payments will commence upon the Participant's death, irrespective of when
     retirement benefits would have commenced if the Participant had survived.
     Such payments shall be made in accordance with the method of payment that
     the Participant had elected for payment of his or her retirement benefits
     for his or her Normal Distribution Account.

     If a Participant dies after the commencement of payment of retirement
     benefits with respect to his or her Account balance(s), the Company will
     pay to the Participant's Beneficiary the remaining installments of any such
     benefit that would have been paid to the Participant had the Participant
     survived.

     If a Participant dies after Retirement but before receiving full payment of
     benefits from his or her Early Distribution, Special Distribution or Prior
     Account, his or her Beneficiary shall receive the balance of such Accounts
     in one lump sum payment, as soon as practicable following his or her death.

     (c)  Interest. If the Participant dies prior to Retirement, the amount
          --------
     payable with respect to each of the Participant's Accounts shall be
     determined by retroactively crediting interest, earnings and losses through
     the date of the Participant's death in accordance with Participant's
     elections, with (i) one hundred thirty-five percent (135%) of the T-Note
     Rate or the Declared Rate applicable to the Plan Year or (ii) earnings or
     losses based on the performance of the Variable Fund Options elected by the
     Participant. After the Participant's death, interest shall be credited for
     each Plan Year at one hundred percent (100%) of the T-Note Rate (if death
     occurs before January 1, 2002) or the Declared Rate in accordance with the
     Participant's elections (if death occurs on or after January 1, 2002) that
     is applicable for that Plan Year. If Participant or his or her Beneficiary
     elects any Variable Fund Options, the Account will be increased or reduced
     by one hundred percent (100%) of the gains or losses earned for the
     applicable Plan Year by the elected Variable Fund Options.

     (d)  Death of Survivor. Upon the death of a Participant's Beneficiary, the
          -----------------
     amount of any survivor benefit remaining payable to such Beneficiary will
     be paid in a lump

                                       15

<PAGE>

    sum to the Beneficiary's estate or personal representative. The lump sum
    amount for any Pre-Retirement Survivor Benefit remaining payable will be
    determined by taking the present value of the remaining payments using such
    discount rate as the Committee may determine, provided that such rate will
    not be greater than the T-Note Rate or the Declared Rate applicable for the
    Plan Year.

5.4 Early Distribution Account. A participant may file a Deferral Election to
    --------------------------
defer compensation into an Early Distribution Account and receive benefits from
such Account prior to Retirement subject to the following restrictions:

     (a) Election of Early Distribution Benefit. A Deferral Election
         --------------------------------------
     establishing an Early Distribution Account and specifying an early payment
     date and the form of payment must be filed prior to the commencement of the
     period in which the Elective Deferred Compensation is to be earned. No
     deferrals may be made into a Participant's Early Distribution Account
     during any Plan Year in which the Participant is receiving a distribution
     from such Account.

     (b) Amount of Early Distribution Benefit. The entire Early Distribution
         ------------------------------------
     Account must be paid out at the time and in the form provided for in the
     related Deferral Election.

     (c) Commencement and Form of Early Distribution Benefit. An Early
         ---------------------------------------------------
     Distribution Account shall not be paid out prior to the completion of two
     Plan Years following the start of deferrals into such Account. An Early
     Distribution Account shall be paid out in a lump sum or in four equal
     annual installments, as provided in the Participant's Deferral Election
     establishing such Account. In the year following the complete distribution
     of an Early Distribution Account, a Participant may make new deferrals into
     such Account. Amounts paid to a Participant pursuant to this Section 5.4
     shall be treated as distributions from the Participant's Early Distribution
     Account. If the Participant terminates service upon Retirement before the
     date scheduled for payment of an Early Distribution Account, the
     Participant shall receive the balance of his or her Early Distribution
     Account in one lump sum payment or up to three (3) equal annual
     installments, at the Committee's discretion, as soon as practicable
     following such event. If the benefit is paid over three years,
     Participant's entire unpaid Account balance will be credited with interest
     following Termination of Employment at the applicable rate under Section
     5.1(b).

5.5 Hardship Distributions. Upon a finding that a Participant or Beneficiary has
    ----------------------
suffered a Financial Hardship, the Committee may, in its sole discretion, make
distributions from an Account prior to the time specified for payment of
benefits under the Plan. The amount of such distribution shall be limited to the
amount reasonably necessary to meet the Participant's or Beneficiary's
requirements during the Financial Hardship. Applications for hardship
distributions and determinations thereon by the Committee shall be in writing,
and a Participant or Beneficiary may be required to furnish written proof of the
Financial Hardship.

                                       16

<PAGE>

A Participant's entire Account balance will be distributed whenever a hardship
distribution would amount to more than seventy-five percent (75%) of any such
Account balance. Following a complete distribution of an entire Account balance,
a Participant and his or her Beneficiary will be entitled to no further benefits
under the Plan with respect to that Account. Amounts paid to a Participant
pursuant to this Section 5.5 shall be treated as distributions from the
Participant's Account. Any Participant who receives a hardship distribution of
any part of an Account balance shall not be allowed to make any deferrals under
the Plan during the remainder of the Plan Year in which he receives such
distribution or during the next Plan Year.

5.6 Valuation and Settlement. The date on which a lump sum is paid or the date
    ------------------------
on which installment payments commence shall be the "Settlement Date". The
Settlement Date for an Account shall be no more than sixty (60) days after the
end of the month in which the Participant or his or her Beneficiary becomes
entitled to payments on account of Retirement or death, unless the Participant
elects to defer commencement of payments following Retirement to a later date in
the election form for designation of form of payment for the Account. The
Settlement Date for an Early Distribution Account or delayed payments following
Retirement shall be the date which the Participant elects for commencement of
such payments in the election form for designation of form of payment for the
Account. The Settlement Date for a Special Distribution or Prior Account shall
be the date that the Participant elected for commencement of payments from such
Account under the terms of the Prior Plan. The amount of a lump sum payment and
the initial amount of installment payments shall be based on the value of the
Participant's Account as of the Valuation Date at the end of the immediately
preceding month before the Settlement Date. For example, the Valuation Date at
the end of December shall be used to determine lump sum payments and the initial
amount of installment payments which will be made in the following January.

5.7  Change in Control and Unscheduled Distributions.
     -----------------------------------------------

     (a) Subject to the provisions of Section 5.7(b) hereof, upon (i)
     dissolution or liquidation of the Company, (ii) a reorganization, merger or
     consolidation of the Company with one or more other entities as a result of
     which the Company is not the survivor, (iii) the sale of all or
     substantially all the assets of the Company, or (iv) any other event which
     constitutes a Change in Control as defined in Section 5.7(c), the interests
     of all then remaining Participants shall continue, and provisions shall be
     made in connection with such transaction for the continuance of the Plan
     and the assumption of the obligations of the Company under the Plan by the
     Company's successor(s) in interest.

     (b) Notwithstanding any other provisions of the Plan, at any time during a
     Window Period before a Change in Control or at any time after a Change in
     Control, a Participant or a Beneficiary of a deceased Participant may elect
     to receive an immediate lump sum payment of up to the balance of his or her
     Account(s), reduced

                                       17

<PAGE>

         by a penalty, which shall be forfeited to the Company, equal to ten
         percent (10%) before a Change in Control or six percent (6%) after a
         Change in Control, applied against the portion of the Account balance
         withdrawn, in lieu of payments in accordance with the form previously
         elected by the Participant. However, the penalty shall not apply if the
         Committee determines, based on advice of counsel or a final
         determination by the Internal Revenue Service or any court of competent
         jurisdiction, that by reason of the foregoing provision, the
         Participant has recognized or will recognize gross income for federal
         income tax purposes under this Plan in advance of payment to him or
         her, or his or her Beneficiary, of Plan benefits. The minimum lump sum
         payment shall be $50,000 or the entire balance of any Account,
         whichever is less.

         A Participant who receives a lump sum payment under this Section 5.7(b)
         will be credited with interest on the Account balance at the rates
         established under Section 5.1(b) of the Plan based on the Participant's
         completed years of Service prior to the lump sum payment. Following a
         complete distribution of the entire balance for an Account, a
         Participant and his or her Beneficiary will be entitled to no further
         benefits under the Plan with respect to that Account. Whenever a
         Participant receives a lump sum payment under this Section 5.7(b) or
         Section 9.1, the Participant will be deemed to elect to revoke all
         Deferral Commitments and to discontinue all deferrals under the Plan
         effective as of the date of the lump sum payment. The Participant will
         be precluded from making any deferrals under the Plan for the remainder
         of the Plan Year in which he receives such distribution and for the
         next Plan Year.

         (c) A "Change in Control" shall mean:

             (i) The occurrence with respect to the Corporation of a "control
             transaction", as such term is defined in Section 2542 of the
             Pennsylvania Business Corporation Law of 1988, as of August 15,
             1989; or

             (ii) Approval by the stockholders of the Corporation of (a) any
             consolidation or merger of the Corporation where either (1) the
             holders of voting stock of the Corporation immediately before the
             merger or consolidation will not own more than 50% of the voting
             shares of the continuing or surviving corporation immediately after
             such merger or consolidation or (2) the Incumbent Directors
             immediately before the merger or consolidation will not hold more
             than 50% (rounded to the next whole person) of the seats on the
             board of directors of the continuing or surviving corporation, or
             (b) any sale, lease or exchange or other transfer (in one
             transaction or a series of related transactions) of all or
             substantially all the assets of the Corporation; or

             (iii) A change of 25% (rounded to the next whole person) in the
             membership of the Board of Directors within a 12-month period,
             unless the election or nomination for election by stockholders of
             each new director within such period (a) was approved by the vote
             of 85% (rounded to the next whole person) of the

                                       18

<PAGE>

         directors then still in office who were in office at the beginning of
         the 12-month period and (b) was not as a result of an actual or
         threatened election with respect to directors or any other actual or
         threatened solicitation of proxies by or on behalf of any person other
         than the Board of Directors. As used herein, the term "Incumbent
         Director" means as of any time a director of the Corporation (x) who
         has been a member of the Board of Directors continuously for at least
         12 months or (y) whose election or nomination as a director within such
         period met the requirements of clauses (a) and (b) of the preceding
         sentence.

     (d) Notwithstanding any other provision of this Plan, without the written
     consent of the Participant (or Beneficiary of a deceased Participant)
     affected thereby, the Company may not amend or terminate this Plan:

         (i)  For a period of twenty-four (24) months following a Change in
         Control; or

         (ii) At any time thereafter, in any manner which affects any
         Participant (or Beneficiary of a deceased Participant) who receives
         payments of benefits under this Plan or who terminates Service with the
         Company for any reason at any time during the period of twenty-four
         (24) months following the Change in Control.

5.8 Distributions from General Assets. The Company shall make any or all
    ---------------------------------
distributions pursuant to this Plan in cash out of its general assets.

5.9 Withholding and Payroll Taxes. The Company shall withhold from payments made
    -----------------------------
hereunder any taxes required to be withheld from such payments under Federal,
State or local law.

5.10 Payment to Guardian. If a benefit is payable to a minor or a person
     -------------------
declared incompetent or to a person incapable of handling the disposition of his
or her 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 incapacitated person. The Committee may require proof of
minority, incompetence, incapacity or guardianship as it may deem appropriate
prior to distribution of the benefit. Such distribution shall completely
discharge the Committee from all liability with respect to such benefit.

5.11 Small Benefit. Notwithstanding any election made by the Participant, the
     -------------
Committee, in its sole discretion, may direct payment of any benefit in the form
of one lump sum payment to the Participant or any Beneficiary, if the lump sum
amount of the Account balance which is payable to the Participant or Beneficiary
when payments to such Participant or Beneficiary would otherwise commence is
less than $50,000.00.

5.12 Protective Provisions. Each Participant shall cooperate with the Company by
     ---------------------
furnishing any and all information requested by the Company in order to
facilitate the payment of benefits hereunder, taking such physical examinations
as the Company may

                                       19

<PAGE>

deem necessary and taking such other relevant action as may be requested by the
Company. If a Participant refuses so to cooperate or makes any material
misstatement of information or non-disclosure of medical history, then no
benefits will be payable hereunder to such Participant or his or her
Beneficiary; provided that, in the Company's sole discretion, benefits may be
payable in an amount reduced to compensate the Company for any loss, cost,
damage or expense suffered or incurred by the Company as a result in any way of
any such action, misstatement or non-disclosure.

5.13 Notices and Elections. Any notice or election required or permitted to be
     ---------------------
given to the Company or the Committee under the Plan shall be sufficient if in
writing on a form prescribed or accepted by the Committee and hand delivered, or
sent by registered or certified mail, to the principal office of the Company,
directed to the attention of the Human Resources Department of the Company. Such
notice or election 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.

5.14 Prior and Special Distribution Accounts. Prior Accounts and Special
     ---------------------------------------
Distribution Accounts shall be distributed in accordance with a Participant's
previously filed elections. Elections providing for payment prior to Retirement
may not be amended by the Participant.

                                   ARTICLE VI
                           DESIGNATION OF BENEFICIARY
                           --------------------------

6.1 Designation of Beneficiary. Each Participant shall have the right to
    --------------------------
designate a Beneficiary or Beneficiaries to receive his or her interest in each
of his or her Accounts upon his or her death. Such designation shall be made on
a form prescribed by and delivered to the Company. The Participant shall have
the right to change or revoke any such designation from time to time by filing a
new designation or notice of revocation with the Company, and no notice to any
Beneficiary nor consent by any Beneficiary shall be required to effect any such
change or revocation.

6.2 Failure to Designate Beneficiary. If a Participant shall fail to designate a
    --------------------------------
Beneficiary before his or her demise, or if no designated Beneficiary survives
the Participant, the Committee shall direct the Company to pay the balance in
each of his or her Accounts in one lump sum to the executor or administrator for
his or her estate; provided, however, if no executor or administrator shall have
been appointed, and actual notice of said death was given to the Committee
within sixty (60) days after his or her death, and if his or her Account
balances do not exceed Ten Thousand Dollars ($10,000), the Committee may direct
the Company to pay his or her Account balances to such person or persons as the
Committee determines, and the Committee may require such proof of right and/or
identity of such person or persons as the Committee may deem appropriate or
necessary.

                                       20

<PAGE>

                                   ARTICLE VII
                             FORFEITURES TO COMPANY
                             ----------------------

7.1 Distribution of Participant's Interest When Company is Unable to Locate
    -----------------------------------------------------------------------
Distributees. In case the Company is unable within three (3) years after payment
------------
is due to a Participant, or within three (3) years after payment is due to the
Beneficiary or the estate of a deceased Participant, to make such payment to him
or her or his or her Beneficiary, executor or administrator because it cannot
ascertain his or her whereabouts or the identity or whereabouts of his or her
Beneficiary, executor or administrator by mailing to the last known address
shown on the Company's records, and neither he or she, his or her Beneficiary,
nor his nor her executor or administrator has made written claim therefor before
the expiration of the aforesaid time limit, then, in such case, the amount due
shall be forfeited to the Company.

                                  ARTICLE VIII
                             MAINTENANCE OF ACCOUNTS
                             -----------------------

8.1 The Company shall keep, or cause to be kept, all such books of account,
records and other data as may be necessary or advisable in its judgment for the
administration of this Plan, and properly to reflect the affairs thereof, and to
determine the nature and amount of the interests of the respective Participants
in each Account.

The Company is not required to physically segregate any assets with respect to
the Accounts under this Plan from any other assets of the Company and may
commingle any such assets with any other moneys, securities and properties of
any kind of the Company. Separate accounts or records for the respective
Participants' interests shall be maintained for operational and accounting
purposes, but no such account or record shall be considered as creating a lien
of any nature whatsoever on or as segregating any of the assets with respect to
the Accounts under this Plan from any other funds or property of the Company.

                                   ARTICLE IX
                      AMENDMENT AND TERMINATION OF THE PLAN
                      -------------------------------------

9.1 Amendment. The Board or Human Resources Committee of the Board may at any
    ---------
time amend the Plan in whole or in part, provided, however, that no amendment
shall be effective to decrease or restrict the amount accrued (including
earnings at the appropriate interest rate) in any Account to the date of such
amendment. Notwithstanding anything in the preceding sentence to the contrary,
the Committee shall have the power to amend the Plan to the extent authorized by
Section 2.2.

Upon a prospective amendment to reduce the formula for determining the future
interest rate, 30 days' advance written notice shall be given to each
Participant. Following such

                                       21

<PAGE>

an amendment to reduce the formula for determining the future interest rate and
the giving of notice to the Participant, the Participant may elect to (i)
terminate an ongoing Deferral Commitment without penalty and/or (ii) receive an
immediate lump sum payment of the balance of his or her Account(s), reduced by a
penalty, which shall be forfeited to the Company, equal to six percent (6%) of
the balance of such Account(s), in lieu of payments in accordance with the form
previously elected by the Participant. However, the six percent (6%) penalty
shall not apply if it would not have applied under Section 5.7(b). The
Participant may make such an election by notifying the Committee in writing
within sixty (60) days following receipt of notice of the amendment to reduce
the interest rate.

9.2  Company's Right to Terminate. The Human Resources Committee of the Board
     ----------------------------
may at any time partially or completely terminate the Plan if, in its judgment,
the tax, accounting, or other effects of the continuance of the Plan or
potential payments thereunder would not be in the best interests of the Company.

     (a) Partial Termination. The Board or Human Resources Committee of the
         -------------------
     Board may partially terminate the Plan by instructing the Committee not to
     accept any additional or ongoing Deferral Commitments. In the event of such
     a partial termination, the Plan shall continue to operate on the same terms
     and conditions and, unless the Board or Human Resources Committee of the
     Board instructs the Committee not to accept ongoing Deferral Commitments,
     shall be effective with regard to Deferral Commitments entered into prior
     to the effective date of such partial termination.

     (b) Complete Termination. The Board or Human Resources Committee of the
         --------------------
     Board may completely terminate the Plan. In the event of complete
     termination, the Plan shall cease to operate, and the Company shall pay out
     to each Participant (or the Beneficiary of a deceased Participant) his or
     her Accounts in either one lump sum payment or up to three (3) equal annual
     installments, at the Company's discretion, as if the Participant had
     terminated service as of the effective date of the complete termination.
     Interest shall continue to be paid on the balance in each Participant's
     Account(s) in accordance with Section 4.3.

                                    ARTICLE X
                             SPENDTHRIFT PROVISIONS
                             ----------------------

10.1 The Company shall, except as otherwise provided hereunder, pay all amounts
payable hereunder only to the person or persons entitled thereto hereunder, and
all such payments shall be made directly into the hands of each such person or
persons and not into the hands of any other person or corporation whatsoever, so
that said payments may not be liable for the debts, contracts or engagements of
any such designated person or persons, or taken in execution by attachment or
garnishment or by any other legal or equitable proceedings, nor shall any such
designated person or persons have any right to

                                       22

<PAGE>

alienate, arbitrate, execute, pledge, encumber, or assign any such payments or
the benefits or proceeds thereof. If the person entitled to receive payment be a
minor, or a person of unsound mind, whether or not adjudicated incompetent, the
Company, upon direction of the Committee, may make such payments to such person
or persons, corporation or corporations as may be, or be acting as, parent or
legal or natural guardian of such infant or person of unsound mind. The signed
receipt of such person or corporation shall be a full and complete discharge to
the Company for any such payments.

                                   ARTICLE XI
                                  MISCELLANEOUS
                                  -------------

11.1 Right of Company to Replace Members of Board of Directors and Advisory
     ----------------------------------------------------------------------
Board; Obligations. Neither the action of the Company in establishing this Plan,
------------------
nor any provisions of this Plan, shall be construed as giving any member of the
Board of Directors or Advisory Board of the Company the right to be retained in
such capacity, or any right to payment whatsoever except to the extent of the
benefits provided for by this Plan. The Company expressly reserves the right at
any time to replace or fail to renominate any member of the Board of Directors
or Advisory Board without any liability for any claim against the Company for
any payment whatsoever except to the extent provided for in this Plan. The
Company has no obligation to create any other or subsequent deferred
compensation plan for members of the Board of Directors or Advisory Board.

11.2 Title to and Ownership of Assets Held for Accounts. Title to and ownership
     --------------------------------------------------
of all assets held for any Accounts shall be vested in the Company and shall
constitute general assets of the Company.

11.3 Nature of Liability to Participants. Any and all payments required to be
     -----------------------------------
made by the Company to Participants in the Plan shall be general and unsecured
liabilities of the Company.

11.4 Text of Plan to Control. The headings of the Articles and Sections are
     -----------------------
included solely for convenience of reference, and if there be any conflict
between such headings and the text of this Plan, the text shall control.

This Plan document sets forth the complete terms of the Plan. In the event of
any discrepancies or conflicts between this Plan document and any summary or
other information regarding the Plan, the terms of this Plan document shall
apply and control.

11.5 Law Governing and Severability. This Plan shall be construed, regulated and
     ------------------------------
administered under the laws of the Commonwealth of Pennsylvania.

If any provisions of this Plan shall be held invalid or unenforceable for any
reason, such invalidity or unenforceability shall not affect the remaining
provisions of this Plan, and

                                       23

<PAGE>

this Plan shall be deemed to be modified to the least extent possible to make it
valid and enforceable in its entirety.

11.6 Name. This Plan may be referred to as the "Mellon Financial Corporation
     ----
1990 Elective Deferred Compensation Plan for Directors and Members of the
Advisory Board".

11.7 Gender. The masculine gender shall include the feminine, and the singular
     ------
shall include the plural, except when the context expressly dictates otherwise.

11.8 Trust Fund. The Company shall be responsible for the payment of all
     ----------
benefits provided under the Plan. At its discretion, the Company may establish
one or more trusts, with such trustees as the Board or the Committee may
approve, for the purpose of providing for the payment of such benefits. Such
trust or trusts may be irrevocable, but the assets thereof shall be subject to
the claims of the Company's creditors. To the extent any benefits provided under
the Plan are actually paid from any such trust, the Company shall have no
further obligation with respect thereto, but to the extent not so paid, such
benefits shall remain the obligation of, and shall be paid by the Company.

IN WITNESS WHEREOF, the Company has caused this amended and restated Plan to be
executed this 8/th/ day of March, effective as of January 1, 2002.
              ----

ATTEST:                                 MELLON FINANCIAL CORPORATION

/s/ Carl Krasik                         /s/ Lisa B. Peters
-----------------------------           ------------------
Carl Krasik                             Lisa B. Peters
Secretary                               Head of the
                                        Human Resources Department of
                                        Mellon Bank, N.A.

                                       24

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