Document:

<PAGE>
                                                                     EXHIBIT 4.2

         THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR
EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE
DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY SECURITY
AUTHENTICATED AND DELIVERED UPON REGISTRATION OF, TRANSFER OF, OR IN EXCHANGE
FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE
FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

         UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                         ANADARKO PETROLEUM CORPORATION

                               5 3/8% NOTES DUE 2007

NO.                                                                        U.S.$
CUSIP No. 032511AS6

      ANADARKO PETROLEUM CORPORATION, a corporation duly incorporated and
existing under the laws of Delaware (herein called the "Company," which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to CEDE & CO., or registered assigns, the
principal sum of ___________ United States Dollars on March 1, 2007, and to pay
interest thereon from February 22, 2002, or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, semi-annually
on March 1 and September 1 in each year, commencing September 1, 2002, at the
rate of 5- % per annum, until the principal hereof is paid or made available for
payment. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be February 15 or August 15 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for shall forthwith cease to be
payable to the Holder on such Regular Record Date

<PAGE>

and shall either be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice of which shall be given to Holders of Securities of this series
not less than 10 days prior to such Special Record Date, or be paid at such time
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided
in said Indenture.

         Payment of the principal of and premium, if any, and interest on this
Security will be made by transfer of immediately available funds to a bank
account in New York, New York designated by the Holder in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts.

         Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated:  February 22, 2002

                                       ANADARKO PETROLEUM COMPANY

                                       By:
                                         ---------------------------------------
                                         Name:
                                         Title:

         Attest:

         ----------------------------
         Name:
         Title:

         This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.

                                     THE BANK OF NEW YORK, AS TRUSTEE

                                     By:
                                       -----------------------------------------
                                       Authorized Signatory

<PAGE>
                         ANADARKO PETROLEUM CORPORATION
                               5 3/8% NOTES DUE 2007

         This Security is one of a duly authorized issue of Securities of the
Company (the "Securities"), issued and to be issued in one or more series under
an Indenture dated as of March 9, 2001 (the "Indenture"), between the Company
and The Bank of New York, as Trustee (the "Trustee," which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, obligations, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. This
Security is one of the series designated on the face hereof.

         The Securities of this series are subject to redemption, upon not less
than 15 nor more than 60 days' notice by mail, as a whole or in part, at the
option of the Company at any time at a Redemption Price equal to the principal
amount of the Securities to be redeemed, plus any accrued and unpaid interest
thereon to the applicable Redemption Date, but interest installments whose
Stated Maturity is on or prior to such Redemption Date will be payable to the
Holders of such Securities, or one or more Predecessor Securities, of record at
the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture, plus the "make-whole premium" as
defined below.

         The "make-whole premium" or "premium" with respect to any Security to
be redeemed shall be equal to the excess, if any, of: (a) the sum of the present
values, calculated as of the Redemption Date, of (i) each interest payment that,
but for such redemption, would have been payable on the Security or portion
thereof being redeemed on each Interest Payment Date occurring after the
Redemption Date (excluding any accrued interest for the period prior to the
Redemption Date); and (ii) the principal amount that, but for such redemption,
would have been payable at the final maturity of the Security being redeemed;
over (b) the principal amount of the Security being redeemed.

         The present values of interest and principal payments referred to in
clause (a) of the immediately preceding paragraph will be determined in
accordance with generally accepted principles of financial analysis. These
present values will be calculated by discounting the amount of each payment of
interest or principal from the date that each such payment would have been
payable, but for the redemption, to the Redemption Date at a discount rate equal
to the comparable treasury yield (as defined below) plus 15 basis points. The
make-whole premium will be calculated by an independent investment banking
institution of national standing appointed by the Company. If the Company fails
to appoint an independent investment banker not less than 15 days prior to the
Redemption Date, or if such independent investment banker is unwilling or unable
to make the calculation, the calculation will be made by Credit Suisse First
Boston Corporation. If Credit Suisse First Boston Corporation is unwilling or
unable to make the calculation, the Trustee will appoint an independent
investment banking institution of national standing to make the calculation.

                  For purposes of determining the make-whole premium, comparable
treasury yield means a rate of interest per annum equal to the weekly average
yield to maturity of United States Treasury Notes that have a constant maturity
that corresponds to the remaining term to maturity

<PAGE>

of the Securities, calculated to the nearest 1/12th of a year. The comparable
treasury yield will be determined as of the third business day immediately
preceding the applicable Redemption Date.

         The weekly average yields of United States Treasury Notes will be
determined by reference to the most recent statistical release published by the
Federal Reserve Bank of New York and designated "H.15(519) Selected Interest
Rates" or any successor release. If the H.15 statistical release sets forth a
weekly average yield for United States Treasury Notes having a constant maturity
that is the same as the remaining term calculated as set forth above, then the
comparable treasury yield will be equal to such weekly average yield. In all
other cases, the comparable treasury yield will be calculated by interpolation
on a straight-line basis, between the weekly average yields on the United States
Treasury Notes that have a constant maturity closest to and greater than the
remaining term and the United States Treasury Notes that have a constant
maturity closest to and less than the remaining term (in each case as set forth
in the H.15 statistical release or any successor release). Any weekly average
yields calculated by interpolation will be rounded to the nearest 1/100th of 1%,
with any figure of 1/200th of 1% or above being rounded upward. If weekly
average yields for United States Treasury Notes are not available in the H.15
statistical release or otherwise, then the comparable treasury yield will be
calculated by interpolation of comparable rates selected by an independent
investment banking institution of national standing selected in the manner
described in the second preceding paragraph.

         In the event of redemption of this Security in part only, a new
Security or Securities of this series and of like tenor for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.

         If an Event of Default with respect to the Securities of this series
shall occur and be continuing, the principal of the Securities of this series
may be declared due and payable in the manner and with the effect provided in
the Indenture.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in aggregate principal amount of the
Outstanding Securities of each series to be affected. The Indenture also
contains provisions permitting the Holders of specified percentages in principal
amount of the Securities of each series at the time Outstanding, on behalf of
the Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

         No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of, premium, if any, and
interest on this Security at the times, place(s) and rate, and in the coin or
currency, herein prescribed.

<PAGE>

         This Global Security or portion hereof may not be exchanged for
Definitive Securities except in the limited circumstances provided in the
Indenture.

         The holders of beneficial interests in this Global Security will not be
entitled to receive physical delivery of Definitive Securities except as
described in the Indenture and will not be considered the Holders hereof for any
purpose under the Indenture.

         The Securities of this series are issuable only in registered form,
without coupons, in denominations of U.S. $1,000 and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations therein
set forth, the Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series of a different authorized
denomination, as requested by the Holder surrendering the same.

         No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any transfer tax or other similar governmental charge payable in connection
therewith.

         Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

         No recourse under or upon any obligation, covenant or agreement of or
contained in the Indenture or of or contained in any Security, or for any claim
based thereon or otherwise in respect thereof, or in any Security, or because of
the creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, officer or director, as such, past, present or
future, of the Company or of any successor Person, either directly or through
the Company or any successor Person, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment, penalty or
otherwise; it being expressly understood that all such liability is hereby
expressly waived and released by the acceptance hereof and as a condition of,
and as part of the consideration for, the Securities and the execution of the
Indenture.

         The Indenture provides that the Company (a) will be discharged from any
and all obligations in respect of the Securities (except for certain obligations
described in the Indenture), or (b) need not comply with certain restrictive
covenants of the Indenture, in each case if the Company deposits, in trust, with
the Trustee money or U.S. Government Obligations (or a combination thereof)
which through the payment of interest thereon and principal thereof in
accordance with their terms will provide money, in an amount sufficient to pay
all the principal of and interest of the Securities, but such money need not be
segregated from other funds except to the extent required by law.

         All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

         THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.<PAGE>
                                                                     EXHIBIT 4.1

                            GROUP 1 AUTOMOTIVE, INC.

                           DEFERRED COMPENSATION PLAN

                             As Amended and Restated
                            Effective January 1, 2002

<PAGE>

                               TABLE OF CONTENTS

<Table>
<Caption>
ARTICLE                                                                                                        PAGE
-------                                                                                                        ----

<S>            <C>                                                                                           <C>
I        -     Definitions and Construction ........................................................            I-1

II       -     Participation .......................................................................           II-1

III      -     Account Credits and Allocations of Income or Loss ...................................          III-1

IV       -     Deemed Investment of Funds...........................................................           IV-1

V        -     Determination of Vested Interest and Forfeitures.....................................            V-1

VI       -     In-Service Distributions ............................................................           VI-1

VII      -     Termination Benefits ................................................................          VII-1

VIII     -     Administration of the Plan...........................................................         VIII-1

IX       -     Administration of Funds .............................................................           IX-1

X        -     Nature of the Plan ..................................................................            X-1

XI       -     Miscellaneous .......................................................................           XI-1

XII      -     Participation by Consultants ........................................................          XII-1
</Table>

                                      (i)
<PAGE>

                            GROUP 1 AUTOMOTIVE, INC.

                           DEFERRED COMPENSATION PLAN

                                  WITNESSETH:

         WHEREAS, Group 1 Automotive, Inc. (the "Company") has heretofore
adopted the Group 1 Automotive, Inc. Deferred Compensation Plan, hereinafter
referred to as the "Plan," to aid certain of its employees in making more
adequate provision for their retirement; and

         WHEREAS, the Company desires to restate the Plan and to amend the Plan
in several respects;

         NOW THEREFORE, the Plan is hereby restated in its entirety as follows
with no interruption in time, effective as of January 1, 2002:

                                      (ii)
<PAGE>

                                       I.

                          DEFINITIONS AND CONSTRUCTION

         1.1 DEFINITIONS. Where the following words and phrases appear in the
Plan, they shall have the respective meanings set forth below, unless their
context clearly indicates to the contrary.

(1)      ACCOUNT(S): A Member's Employer Account and/or Deferral Account,
         including the amounts credited thereto.

(2)      AFFILIATE: Each trade or business (whether or not incorporated) which
         together with the Company would be deemed to be a "single employer"
         within the meaning of subsections (b) or (c) of Section 414 of the
         Code.

(3)      BASE SALARY: The base rate of pay paid in cash by the Employer to or
         for the benefit of a Member for services rendered or labor performed
         while a Member, including base pay a Member could have received in cash
         in lieu of (i) Compensation deferrals pursuant to Section 3.1 and (ii)
         elective contributions made on his behalf by the Employer pursuant to a
         qualified cash or deferred arrangement (as defined in section 401(k) of
         the Code) or pursuant to a plan maintained under section 125 of the
         Code.

(4)      BOARD: The Board of Directors of the Company.

(5)      BONUS: Each incentive bonus, if any, paid in cash by the Employer to or
         for the benefit of a Member for services rendered or labor performed,
         including the portion thereof that a Member could have received in cash
         in lieu of (i) Compensation deferrals pursuant to Section 3.1 and (ii)
         elective contributions made on his behalf by the Employer pursuant to a
         qualified cash or deferred arrangement (as defined in section 401(k) of
         the Code) or pursuant to a plan maintained under section 125 of the
         Code.

(6)      CHANGE IN CONTROL: A "Change in Control" shall be conclusively deemed
         to have occurred if (and only if) any of the following events shall
         have occurred: (1) any merger, consolidation, or reorganization in
         which the Company is not the surviving entity (or survives only as a
         subsidiary of an entity), (2) any sale, lease, exchange, or other
         transfer of all or substantially all of the assets of the Company to
         any other person or entity other than a wholly-owned subsidiary of the
         Company (in one transaction or a series of related transactions), (3)
         dissolution or liquidation of the Company, (4) when any person or
         entity, including a "group" as contemplated by Section 13(d)(3) of the
         Exchange Act acquires or gains ownership or control (including, without
         limitation, power to vote) of more than 50% of the outstanding shares
         of the Company's voting stock (based upon voting power), or (5) during
         any two-year period, the persons who were directors of the Company
         (together with any new directors whose election by the Board or whose
         nomination for election by the Company's shareholders was approved by a
         vote of at least three quarters of the directors still in office who
         were either directors at the beginning of such period or whose election
         or

                                      I-1
<PAGE>

         nomination for election was previously so approved) shall cease for any
         reason to constitute a majority of the Board; provided, however, that
         the term "Change in Control" shall not include any reorganization,
         merger, consolidation, or similar transaction or series of transactions
         pursuant to which the record holders of the voting stock of the Company
         immediately prior to such transaction or series of transactions
         continue to hold immediately following such transaction or series of
         transactions 50% or more of the voting securities (based upon voting
         power) of (a) any entity which owns (directly or indirectly) the stock
         of the Company, (b) any entity with which the Company has merged, or
         (c) any entity that owns an entity with which the Company has merged.

(7)      CODE:  The Internal Revenue Code of 1986, as amended.

(8)      COMMISSIONS: The monthly commissions, if any, paid in cash by the
         Employer to or for the benefit of a Member for services rendered or
         labor performed, including the portion thereof that a Member could have
         received in cash in lieu of (i) Compensation deferrals pursuant to
         Section 3.1 and (ii) elective contributions made on his behalf by the
         Employer pursuant to a qualified cash or deferred arrangement (as
         defined in section 401(k) of the Code) or pursuant to a plan maintained
         under section 125 of the Code.

(9)      COMMITTEE: The administrative committee appointed by the Compensation
         Committee to administer the Plan.

(10)     COMPANY:  Group 1 Automotive, Inc.

(11)     COMPENSATION:  Base Salary, Bonus and/or Commissions.

(12)     COMPENSATION COMMITTEE:  The Compensation Committee of the Board.

(13)     DISABILITY: The term "Disability" shall mean total and permanent
         disability as determined under the Savings Plan.

(14)     DEFERRAL ACCOUNT: An individual account for each Member to which is
         credited his Member Deferrals pursuant to Section 3.1 and which is
         adjusted to reflect changes in value as provided in Section 3.3.

(15)     EFFECTIVE DATE: January 1, 2002, as to this restatement of the Plan.
         The original effective date of the Plan was November 10, 1999.

(16)     ELIGIBLE EMPLOYEE: Each individual who has been selected by the
         Committee for participation in the Plan.

(17)     ELIGIBILITY PERIOD: The 30-day period following an Eligible Employee's
         notification by the Committee of eligibility to participate in the
         Plan.

                                      I-2
<PAGE>

(18)     EMPLOYER: The Company and any other adopting entity that adopts the
         Plan pursuant to the provisions of Section 2.3.

(19)     EMPLOYER ACCOUNT: An individual account for each Member to which is
         credited the Employer Deferrals made on his behalf pursuant to Section
         3.2 and which is adjusted to reflect changes in value as provided in
         Section 3.3.

(20)     EMPLOYER DEFERRALS: Deferrals made by the Employer on a Member's behalf
         pursuant to Section 3.2.

(21)     ERISA: The Employee Retirement Income Security Act of 1974, as amended.

(22)     EXCHANGE ACT:  The Securities Exchange Act of 1934, as amended.

(23)     FUNDS: The investment funds, if any, designated from time to time for
         the deemed investment of Accounts pursuant to Section 4.1.

(24)     MEMBER: Each Eligible Employee who has become a Member pursuant to
         Article II. In addition, where the context requires, the term "Member"
         shall be deemed to include an Eligible Employee for purposes of Section
         3.1 if such Eligible Employee has not yet become a Member pursuant to
         Section 2.1.

(25)     MEMBER DEFERRALS:  Deferrals made by a Member pursuant to Section 3.1.

(26)     PLAN: The Group 1 Automotive, Inc. Deferred Compensation Plan, as
         amended from time to time.

(27)     PLAN YEAR: The twelve-consecutive month period commencing January 1 of
         each year.

(28)     RETIREMENT DATE:  The date upon which a Member attains age 55.

(29)     SAVINGS PLAN: The Group 1 Automotive, Inc. 401(k) Savings Plan, as
         amended from time to time.

(30)     TERMINATION OF SERVICE: The termination of a Member's employment with
         the Employer and all Affiliates for any reason whatsoever.

(31)     TRUST:  The trust, if any, established under the Trust Agreement.

(32)     TRUST AGREEMENT: The agreement entered into between the Employer and
         the Trustee pursuant to Article X.

(33)     TRUST FUND: The funds and properties, if any, held pursuant to the
         provisions of the Trust Agreement, together with all income, profits
         and increments thereto.

                                      I-3
<PAGE>

(34)     TRUSTEE: The trustee or trustees qualified and acting under the Trust
         Agreement at any time.

(35)     UNFORESEEABLE FINANCIAL EMERGENCY: An unexpected need of a Member for
         cash that (i) arises from a sudden and unexpected illness or accident
         of the Member or of a dependent of a Member, loss of the Member's
         property due to casualty, or similar extraordinary and unforeseeable
         circumstances arising as a result of events beyond the control of such
         Member and (ii) would result in severe financial hardship to such
         Member if his Compensation deferral election was not canceled pursuant
         to Section 3.1(g) and/or if a benefit payment pursuant to Section 6.2
         or 7.5(b)(ii) was not permitted. Cash needs arising from foreseeable
         events, such as the purchase of a house or education expenses for
         children, shall not be considered to be the result of an Unforeseeable
         Financial Emergency. Further, cash needs that may be relieved (a)
         through reimbursement or compensation by insurance or otherwise, (b) by
         liquidation of the Member's assets, to the extent the liquidation of
         such assets would not itself cause severe financial hardship, or (c) by
         cessation of deferrals under the Plan shall not be considered to be
         Unforeseeable Financial Emergencies.

(36)     VALUATION DATE: Each day that the New York Stock Exchange is open for
         business; provided, however, that the Committee shall in its discretion
         determine the Valuation Dates that will occur during any period for
         which the provisions of Section 4.2 apply.

(37)     VESTED INTEREST: The portion of a Member's Accounts which, pursuant to
         the Plan, is nonforfeitable.

         1.2 NUMBER AND GENDER. Wherever appropriate herein, words used in the
singular shall be considered to include the plural and words used in the plural
shall be considered to include the singular. The masculine gender, where
appearing in the Plan, shall be deemed to include the feminine gender.

         1.3 HEADINGS. The headings of Articles and Sections herein are included
solely for convenience, and if there is any conflict between such headings and
the text of the Plan, the text shall control.

                                      I-4
<PAGE>

                                       II.

                                  PARTICIPATION

         2.1 PARTICIPATION.

               (a) The Committee, in its sole discretion, shall select and
notify those management or highly compensated employees of the Employer who
shall become Eligible Employees. An Eligible Employee may become a Member,
effective as of the first day of the next Plan Year following such Eligible
Employee's notification of eligibility, by executing and filing with the
Committee the Compensation deferral election prescribed by the Committee prior
to the start of such Plan Year.

               (b) Notwithstanding Paragraph (a), after the start of a Plan
Year, the Committee may, in its discretion, select and notify those Eligible
Employees who may become Members with respect to such Plan Year by executing and
filing with the Committee, prior to the close of such Eligible Employee's
Eligibility Period and in accordance with the procedures established by the
Committee, the Compensation deferral election prescribed by the Committee. An
Eligible Employee who has filed such election in accordance with this Paragraph
shall become a Member as of the first day of the first payroll period commencing
in the calendar month next following the calendar month that includes the last
day of such Eligible Employee's Eligibility Period.

               (c) Subject to the provisions of Section 2.2, a Member shall
remain eligible to defer Compensation hereunder and receive an allocation of
Employer Deferrals for each Plan Year following his commencement of
participation in the Plan.

         2.2 CESSATION OF ACTIVE PARTICIPATION. Notwithstanding any provision
herein to the contrary, an individual who has become a Member of the Plan shall
cease to be entitled to defer Compensation hereunder and/or receive an
allocation of Employer Deferrals effective as of any date designated by the
Committee. Any such Committee action shall be communicated to the affected
individual prior to the effective date of such action. Such an individual may
again become entitled to defer Compensation hereunder and receive an allocation
of Employer Deferrals beginning as of any subsequent date selected by the
Committee in its sole discretion.

         2.3 ADOPTING ENTITIES. It is contemplated that other entities may adopt
this Plan and thereby become an Employer. Any such entity, whether or not
presently existing, may become a party hereto by appropriate action of its
officers without the need for approval of its board of directors or of the
Committee or the Compensation Committee; provided, however, that such entity
must be an Affiliate. The provisions of the Plan shall apply separately and
equally to each Employer and its employees in the same manner as is expressly
provided for the Company and its employees, except that (a) the power to appoint
or otherwise affect the Committee and the Trustee and the power to amend or
terminate the Plan or amend the Trust Agreement shall be exercised by the
Compensation Committee alone and (b) the determination of whether a Change in
Control has occurred shall be made based solely on the Company. Transfer of
employment among Employers

                                      II-1
<PAGE>

and Affiliates shall not be considered a termination of employment hereunder.
Any Employer may, by appropriate action of its officers without the need for
approval of its board of directors (or noncorporate counterpart) or the
Committee or the Compensation Committee, terminate its participation in the
Plan. Moreover, the Compensation Committee may, in its discretion, terminate an
Employer's Plan participation at any time.

                                      II-2
<PAGE>

                                      III.

                ACCOUNT CREDITS AND ALLOCATIONS OF INCOME OR LOSS

         3.1 MEMBER DEFERRALS.

               (a) A Member meeting the eligibility requirements of Section 2.1
may:

                  (i) Elect to defer a portion of such Member's Base Salary for
         each Plan Year in an amount equal to a specific dollar amount per pay
         period of such Member's Base Salary or an integral percentage of from
         1% to 50% of such Member's Base Salary. If a Member elects to defer an
         integral percentage of such Member's Base Salary, such Member may elect
         to establish a maximum Base Salary deferral, the dollar amount of which
         such Member's combined aggregate total of Base Salary deferrals for any
         Plan Year shall not exceed; and/or

                  (ii) Elect to defer a portion of such Member's Bonus for each
         Plan Year in an amount equal to a specific dollar amount of such
         Member's Bonus or an integral percentage of from 1% to 100% of such
         Member's Bonus. If a Member elects to defer an integral percentage of
         such Member's Bonus, such Member may elect to establish a maximum Bonus
         deferral, the dollar amount of which such Member's Bonus deferral for
         any Plan Year shall not exceed; and/or

                  (iii) Elect to defer a portion of such Member's Commissions
         for each Plan Year in an amount equal to a specific dollar amount per
         pay period of such Member's Commissions or an integral percentage of
         from 1% to 100% of such Member's Commissions. If a Member elects to
         defer an integral percentage of such Member's Commissions, such Member
         may elect to establish a maximum Commissions deferral, the dollar
         amount of which such Member's combined aggregate total of Commissions
         deferrals for any Plan Year shall not exceed.

In the event that a Member elects to defer an amount of Compensation pursuant to
two or more of the above Sections 3.1(a)(i), 3.1(a)(ii), and 3.1(a)(iii) for any
Plan Year, such Member may also elect to establish a maximum combined Base
Salary, Bonus, and/or Commissions deferral, the dollar amount of which such
Member's combined aggregate total of Base Salary, Bonus, and/or Commissions
deferrals for such Plan Year shall not exceed.

               (b) Paragraph (a) above notwithstanding, a Member's Member
Deferral elections made pursuant to such Paragraph for a Plan Year must, in the
opinion of the Committee, be reasonably expected to result in minimum aggregate
Member Deferrals for such Member of $10,000 for such Plan Year. Member Deferral
elections determined by the Committee to not be reasonably expected to result in
such minimum deferral shall be void. In addition, the Committee may, in its sole
discretion, establish maximum aggregate Member Deferrals for a Member for any
Plan Year, the dollar amount of which such Member's Member Deferrals for such
Plan Year shall not exceed.

                                     III-1
<PAGE>

Maximum aggregate Member Deferrals established by the Committee pursuant to this
Paragraph may vary among individual Members and may vary with respect to a
single Member from Plan Year to Plan Year.

               (c) Compensation for a Plan Year not deferred pursuant to
elections under Section 3.1(a) shall be received by such Member in cash. A
Member's election to defer an amount of his Compensation pursuant to this
Section 3.1 shall be made by effecting, in the form prescribed by the Committee,
a Member Deferral election pursuant to which the Member authorizes the Employer
to reduce his Compensation in the elected amount and the Employer, in
consideration thereof, agrees to credit an equal amount to such Member's
Deferral Account maintained under the Plan. The reduction in a Member's
Compensation pursuant to his Member Deferral election shall be effected by
Compensation reductions each payroll period as determined by the Committee
following the effective date of such election. Such Compensation reductions
shall be within the Plan Year to which the Member Deferral election relates,
except that Compensation reductions attributable to elections to defer a
Member's Bonus and/or Commissions may be made within the next following Plan
Year if the Bonus and/or Commissions to which the Member Deferral election
relates is paid in such next following Plan Year. Member Deferrals made by a
Member shall be credited to such Member's Deferral Account as of a date
determined in accordance with procedures established from time to time by the
Committee; provided, however, that such Member Deferrals shall be credited to
the Member's Deferral Account no later than 30 days after the date upon which
the Compensation deferred would have been received by such Member in cash if he
had not elected to defer such amount pursuant to this Section 3.1.

               (d) A Member Deferral election pursuant to Section 3.1 shall
become effective as of the first day of the Plan Year that is immediately after
the date the election is effected by the Member and filed with the Committee.
Notwithstanding the foregoing, a Member Deferral election made by an Eligible
Employee who becomes a Member pursuant to Section 2.1(b) shall become effective
as of the first day of the first payroll period commencing in the calendar month
next following the calendar month that includes the last day of such Eligible
Employee's Eligibility Period, and shall be effective only with respect to
Compensation earned on or subsequent to the first day of such payroll period. A
Member Deferral election shall remain in force and effect for the entire Plan
Year (or portion thereof) to which such election relates. A Member Deferral
election shall remain in force and effect for each subsequent Plan Year
(following the Member's initial year of participation in the Plan) for which he
satisfies the eligibility requirements set forth in Section 2.1, unless and
until such election is changed or revoked by such Member prior to the first day
of the subsequent Plan Year to which such change or revocation relates. Plan
provisions to the contrary notwithstanding, a Member Deferral election shall be
suspended during any period of unpaid leave of absence from the Employer and
shall terminate immediately on the date such Member incurs a Termination of
Service.

               (e) A Member who has made a Member Deferral election may change
his election, as of the first day of any subsequent Plan Year, by effecting a
new Member Deferral election prior to such date and within the time period
prescribed by the Committee.

                                     III-2
<PAGE>

               (f) A Member who has made a Member Deferral election may cancel
his election, as of the first day of any subsequent Plan Year, by effecting the
same in the form prescribed by the Committee prior to such date and within the
time period prescribed by the Committee. A Member who so cancels his Member
Deferral election may again make a new Member Deferral election for a subsequent
Plan Year, if he satisfies the eligibility requirements set forth in Section
2.1, by effecting a new Member Deferral election prior to the first day of such
Plan Year and within the time period prescribed by the Committee.

               (g) In the event that the Committee, upon written petition of a
Member, determines in its sole discretion that such Member has suffered an
Unforeseeable Financial Emergency or that such Member will, absent suspension of
such Member's Member Deferral election then in effect, suffer an Unforeseeable
Financial Emergency, then the Member Deferral election of such Member then in
effect, if any, shall be suspended as soon as administratively practicable after
such determination. A Member whose Member Deferral election has been so
suspended may again make a new Member Deferral election for a subsequent Plan
Year that is at least twelve months after the effective date of such suspension,
if he satisfies the eligibility requirements set forth in Section 2.1, by
effecting a new Member Deferral election for such Plan Year and within the time
period prescribed by the Committee.

         3.2 EMPLOYER DEFERRALS.

               (a) (i) For each Plan Year, the Employer shall defer an amount on
behalf of each Member (1) who makes the maximum elective deferrals permitted
under the terms of the Savings Plan for such Plan Year, (2) who has an amount
forfeited (but does not receive a distribution of such forfeited amount) from
his "Employer Contribution Account" under the Savings Plan in order to satisfy
the requirements of Code sections 401(k)(3), 401(m)(2), and/or 401(m)(9) for
such Plan Year, and (3) who has not incurred a Termination of Service prior to
the date such forfeiture occurs under the terms of the Savings Plan. The amount
of each such Employer Deferral shall equal 100% of such forfeited amount.

                    (ii) Employer Deferrals made on a Member's behalf pursuant
to this Section 3.2(a) for a Plan Year shall be credited to such Member's
Employer Account as of the date the related forfeiture for such Plan Year occurs
under the terms of the Savings Plan.

               (b) As of any date selected by the Employer, the Employer may
credit a Member's Account(s) with Employer Deferrals in such amount, if any, as
the Employer shall determine in its sole discretion. Such credits may be made on
behalf of some Members but not others, and such credits may vary among
individual Members in amount and/or with respect to the Account to which they
are credited.

                                     III-3
<PAGE>

         3.3 VALUATION OF ACCOUNTS. All amounts credited to an Account shall be
deemed invested in accordance with Article IV on the date such amount is
credited to the Account, and, except as provided in Section 4.2, the balance of
each Account shall reflect the result of the daily pricing of the assets in
which such Account is deemed invested from the time of such crediting until the
time of distribution.

                                     III-4
<PAGE>

                                       IV.

                           DEEMED INVESTMENT OF FUNDS

         4.1 MEMBER DIRECTIONS.

               (a) Each Member shall designate, in accordance with the
procedures established from time to time by the Committee, the manner in which
the amounts allocated to his Accounts shall be deemed to be invested from among
the Funds made available from time to time for such purpose by the Committee.
Such Member may designate one of such Funds for the deemed investment of all the
amounts allocated to his Accounts or he may split the deemed investment of the
amounts allocated to his Accounts between such Funds in such increments as the
Committee may prescribe. If a Member fails to make a proper designation, then
his Accounts shall be deemed to be invested in the Fund or Funds designated by
the Committee from time to time in a uniform and nondiscriminatory manner. In
the event that during any Plan Year the Committee does not make available Funds
for the deemed investment of the amounts in Members' Accounts, the amounts in
each Member's Accounts shall be credited with earnings at a rate of return set
by the Committee prior to the start of the period during which no such Funds are
available for the deemed investment of the amounts in Members' Accounts.

               (b) A Member may change his deemed investment designation for
future deferrals to be allocated to his Accounts. Any such change shall be made
in accordance with the procedures established by the Committee, and such changes
may only be made on January 1 and July 1 of each Plan Year.

               (c) A Member may elect to convert his deemed investment
designation with respect to the amounts already allocated to his Accounts. Any
such conversion shall be made in accordance with the procedures established by
the Committee, and such conversions may only be made on January 1 and July 1 of
each Plan Year.

         4.2 CREDITING RATE IN THE ABSENCE OF FUNDS. Notwithstanding the
provisions of Sections 3.3 and 4.1, if for any Plan Year (or portion thereof)
the Committee does not make available Funds for the deemed investment of the
amounts in Members' Accounts, then the amounts in each Member's Accounts shall
be credited with earnings during such period based upon a rate of return set by
the Committee prior to the start of such period. The rate of return set by the
Committee may be fixed for the entire Plan Year (or portion thereof) or it may
vary from time to time based on one or more benchmark rates selected by the
Committee. As of each Valuation Date that occurs during a period for which this
Section 4.2 applies, each Account of a Member shall be increased to reflect an
earnings allocation as described in this Section 4.2 based upon the balance in
such Account as of the next preceding Valuation Date; provided, however, that
the balance of such Account as of the next preceding Valuation Date shall be
reduced by the amount of any withdrawals or distributions made therefrom since
the next preceding Valuation Date.

                                      IV-1
<PAGE>

                                       V.

                DETERMINATION OF VESTED INTEREST AND FORFEITURES

         5.1 DEFERRAL ACCOUNT. A Member shall have a 100% Vested Interest in his
Deferral Account at all times.

         5.2 EMPLOYER ACCOUNT. A Member's Vested Interest in his Employer
Account shall equal such Member's Vested Interest in his "Employer Contribution
Account" under the Savings Plan. Further, a Member who is employed by the
Employer immediately prior to a Change in Control shall have a 100% Vested
Interest in his Employer Account upon the occurrence of such Change in Control.

         5.3 FORFEITURES. A Member who has a Vested Interest in his Employer
Account that is less than 100% as of the date of his Termination of Service
shall forfeit to the Employer the nonvested portion of such Account as of the
date of such termination. Notwithstanding the preceding provisions of this
Article V, the vested portion of a Member's Account may be forfeited to the
Employer under Sections 6.3, 7.3(c), 7.5(b)(i), and 7.7.

                                       V-1
<PAGE>

                                       VI.

                            IN-SERVICE DISTRIBUTIONS

         6.1 RESTRICTIONS ON IN-SERVICE DISTRIBUTIONS AND LOANS. Except as
provided in Sections 6.2 and 6.3, Members shall not be permitted to make
withdrawals from the Plan prior to incurring a Termination of Service. Members
shall not, at any time, be permitted to borrow from the Trust Fund. Following a
Member's Termination of Service, this Article VI shall not be applicable to the
Member and the amounts credited to such Member's Accounts shall be payable to
such Member in accordance with the provisions of Article VII.

         6.2 EMERGENCY BENEFIT. In the event that the Committee, upon written
petition of a Member, determines in its sole discretion that such Member has
suffered an Unforeseeable Financial Emergency, such Member shall be entitled to
a benefit in an amount not to exceed the lesser of (a) the amount determined by
the Committee as necessary to meet such Member's needs created by the
Unforeseeable Financial Emergency or (b) the then value of such Member's
Deferral Account. Such benefit shall be paid in a single lump sum payment as
soon as administratively practicable after the Committee has made its
determinations with respect to the availability and amount of such benefit. If a
Member's Deferral Account is deemed to be invested in more than one Fund, such
benefit shall be distributed pro rata from each Fund in which such Account is
deemed to be invested.

         6.3 ELECTIVE WITHDRAWAL. A Member may elect at any time, by following
the election procedure prescribed by the Committee, to withdraw as a benefit all
or a portion of his Deferral Account as of any Valuation Date, subject to a
withdrawal penalty of 10% of the amount of any such withdrawal. Upon any such
withdrawal, the withdrawal penalty referred to in the preceding sentence shall
be forfeited to the Employer. Further, upon any such withdrawal, such Member's
participation in the Plan shall terminate and no further Compensation deferrals
shall be made under the Plan on behalf of such Member until the first day of the
next Plan Year following the date of such withdrawal. If a Member's Deferral
Account is deemed to be invested in more than one Fund, such withdrawal shall be
distributed pro rata from each Fund in which such Account is deemed to be
invested. Notwithstanding the preceding provisions of this Section 6.3, a Member
shall not be entitled to a withdrawal under this Section 6.3 if the Committee
determines, in its sole discretion, that the primary purpose of such withdrawal
is the cessation of Compensation deferrals under the Plan. The Committee shall
consider such factors as it deems appropriate in order to make a determination
pursuant to the preceding sentence, including, without limitation, the amount of
the requested withdrawal, the balance in the Member's Accounts, the Member's
Compensation deferral election then in effect, and the timing of such withdrawal
request.

                                      VI-1
<PAGE>

                                      VII.

                              TERMINATION BENEFITS

         7.1 AMOUNT OF BENEFIT. Upon a Member's Termination of Service, the
Member, or, in the event of the death of the Member while employed by the
Employer or an Affiliate, the Member's designated beneficiary, shall be entitled
to a benefit equal in value to the Member's Vested Interest in the balance in
his Accounts as of the Valuation Date next preceding the date the payment of
such benefit is to commence pursuant to Section 7.2.

         7.2 TIME OF PAYMENT. Payment of a Member's benefit under Section 7.1
shall commence as soon as administratively practicable after the Valuation Date
coincident with or next succeeding the date of the Member's Termination of
Service; provided, however, that, in a written election on the form prescribed
by the Committee, a Member may elect at the time specified in Section 7.3(c) to
defer the commencement of the payment of his benefit in the event of his
Termination of Service prior to his Retirement Date by reason of Disability to
the Valuation Date coincident with or next succeeding the earlier of (a) the
date of such Member's death or (b) such Member's Retirement Date.

         7.3 ALTERNATIVE FORMS OF BENEFIT PAYMENTS.

               (a) A Member's benefit under Section 7.1 shall be paid in the
form of a single lump sum payment if such Member's Termination of Service occurs
prior to his Retirement Date for a reason other than Disability.

               (b) With respect to a Member whose Termination of Service occurs
(i) prior to his Retirement Date by reason of Disability or (ii) on or after his
Retirement Date, such Member shall receive his benefit payments in one of the
following forms elected by such Member in writing on the form prescribed by the
Committee at the time specified in Section 7.3(c):

                  (1) A single lump sum payment; or

                  (2) Annual installments for a period of five, ten, or fifteen
         years as designated by such Member; provided, however, that in the
         event of such Member's death prior to the end of such period, the
         remaining balance in such Member's Account shall be paid as soon as
         administratively feasible in one lump sum payment to such Member's
         designated beneficiary as provided in Section 7.4. The amount of each
         annual installment shall be computed by dividing the Member's Vested
         Interest in the unpaid balance in his Accounts as of the Valuation Date
         next preceding the date of payment of such annual installment by the
         number of annual installments remaining.

A separate election shall be made pursuant to this Section 7.3(b) by each Member
with respect to the form of distribution to be made in connection with a
Termination of Service that occurs (A) prior to such Member's Retirement Date by
reason of Disability or (B) on or after such Member's

                                     VII-1
<PAGE>

Retirement Date. In the event such Member fails to timely elect in accordance
with Section 7.3(c) the form in which his benefit payments are to be made, such
benefit payments shall be in the form of a single lump sum payment.

               (c) A Member's elections pursuant to Sections 7.2 and 7.3(b)
shall be made on or before the date he first becomes a Member of the Plan.
Notwithstanding the foregoing, subject to the consent of the Committee in its
sole discretion, a Member may, on the form prescribed by the Committee, make one
change to each of his original elections made pursuant to Sections 7.2 and
7.3(b); provided, however, that (i) upon making any such change, the aggregate
balance in such Member's Accounts as of the Valuation Date coincident with or
next succeeding such change shall be reduced by 5% and such amount shall be
forfeited to the Employer and (ii) such change shall not be effective (but the
penalty described in clause (i) of this sentence shall still apply) if such
Member incurs a Termination of Service on or before the date that is thirteen
months after such Member delivers the form implementing such change to the
Committee.

         7.4 DESIGNATION OF BENEFICIARIES.

               (a) Each Member shall have the right to designate the beneficiary
or beneficiaries to receive payment of his benefit in the event of his death.
Each such designation shall be made by executing the beneficiary designation
form prescribed by the Committee and filing the same with the Committee. Any
such designation may be changed at any time by execution of a new designation in
accordance with this Section.

               (b) If no such designation is on file with the Committee at the
time of the death of the Member or such designation is not effective for any
reason as determined by the Committee, then the designated beneficiary or
beneficiaries to receive such benefit shall be as follows:

                  (i) If a Member leaves a surviving spouse, his benefit shall
         be paid to such surviving spouse;

                  (ii) If a Member leaves no surviving spouse, his benefit shall
         be paid to such Member's executor or administrator, or to his heirs at
         law if there is no administration of such Member's estate.

         7.5 ACCELERATED PAY-OUT OF CERTAIN BENEFITS.

               (a) Notwithstanding any provision in Section 7.3(b) to the
contrary, if a Member's benefit payments are to be paid in a form other than
entirely in a single lump sum payment and the aggregate amount to be paid with
respect to such Member in any particular calendar year is less than $50,000,
then the Committee may, in its sole discretion, elect to cause the entire
remaining Vested Interest in the balance in such Member's Accounts to be paid in
a single lump sum payment.

               (b) If a Member incurs a Termination of Service and such Member's
benefit payments are being, or are to be, paid in a form other than entirely in
a single lump sum payment, then:

                                     VII-2
<PAGE>

                  (i) Such Member may elect at any time, by following the
         election procedure prescribed by the Committee, to receive the Vested
         Interest in the remaining balance in his Accounts (reduced by the 10%
         penalty described in the following sentence) in a single lump sum
         payment as soon as administratively feasible after the date such Member
         delivers to the Committee the form prescribed by the Committee
         requesting such distribution. Upon such a request, the Vested Interest
         in the aggregate balance in such Member's Accounts as of the date of
         such distribution shall be reduced by 10% and such amount shall be
         forfeited to the Employer; and

                  (ii) In the event that the Committee, upon written petition of
         such Member, determines in its sole discretion that such Member has
         suffered an Unforeseeable Financial Emergency, such Member shall be
         entitled to an emergency benefit in an amount and under conditions
         similar to those described in Section 6.2.

         7.6 PAYMENT OF BENEFITS. To the extent the Trust Fund has sufficient
assets, the Trustee shall pay benefits to Members or their beneficiaries, except
to the extent the Employer pays the benefits directly and provides adequate
evidence of such payment to the Trustee. To the extent the Trustee does not or
cannot pay benefits out of the Trust Fund, the benefits shall be paid by the
Employer. Any benefit payments made to a Member or for his benefit pursuant to
any provision of the Plan shall be debited to such Member's Accounts. All
benefit payments shall be made in cash to the fullest extent practicable.

         7.7 UNCLAIMED BENEFITS. In the case of a benefit payable on behalf of a
Member, if the Committee is unable to locate the Member or beneficiary to whom
such benefit is payable, upon the Committee's determination thereof, such
benefit shall be forfeited to the Employer. Notwithstanding the foregoing, if
subsequent to any such forfeiture the Member or beneficiary to whom such benefit
is payable makes a valid claim for such benefit, such forfeited benefit (without
any adjustment for earnings or loss after the time of such forfeiture) shall be
restored to the Plan by the Employer and paid in accordance with the Plan.

                                     VII-3
<PAGE>

                                      VIII.

                           ADMINISTRATION OF THE PLAN

         8.1 APPOINTMENT OF COMMITTEE. The general administration of the Plan
shall be vested in the Committee which shall be appointed by the Compensation
Committee and shall consist of one or more persons. Any individual, whether or
not an employee of the Employer, is eligible to become a member of the
Committee.

         8.2 TERM, VACANCIES, RESIGNATION, AND REMOVAL. Each member of the
Committee shall serve until he resigns, dies, or is removed by the Compensation
Committee. At any time during his term of office, a member of the Committee may
resign by giving written notice to the Compensation Committee and the Committee,
such resignation to become effective upon the appointment of a substitute member
or, if earlier, the lapse of thirty days after such notice is given as herein
provided. At any time during his term of office, and for any reason, a member of
the Committee may be removed by the Compensation Committee with or without
cause, and the Compensation Committee may in its discretion fill any vacancy
that may result therefrom. Any member of the Committee who is an employee of the
Employer or any Affiliate shall automatically cease to be a member of the
Committee as of the date he ceases to be employed by the Employer and all
Affiliates.

         8.3 SELF-INTEREST OF MEMBERS. No member of the Committee shall have any
right to vote or decide upon any matter relating solely to himself under the
Plan or to vote in any case in which his individual right to claim any benefit
under the Plan is particularly involved. In any case in which a Committee member
is so disqualified to act and the remaining members cannot agree, the
Compensation Committee shall appoint a temporary substitute member to exercise
all the powers of the disqualified member concerning the matter in which he is
disqualified.

         8.4 COMMITTEE POWERS AND DUTIES. The Committee shall supervise the
administration and enforcement of the Plan according to the terms and provisions
hereof and shall have all powers necessary to accomplish these purposes,
including, but not by way of limitation, the right, power, and authority:

                  (a) To make rules, regulations, and bylaws for the
         administration of the Plan that are not inconsistent with the terms and
         provisions hereof, and to enforce the terms of the Plan and the rules
         and regulations promulgated thereunder by the Committee;

                  (b) To construe in its discretion all terms, provisions,
         conditions, and limitations of the Plan;

                  (c) To correct any defect or to supply any omission or to
         reconcile any inconsistency that may appear in the Plan in such manner
         and to such extent as it shall deem in its discretion expedient to
         effectuate the purposes of the Plan;

                                     VIII-1
<PAGE>

                  (d) To employ and compensate such accountants, attorneys,
         investment advisors, and other agents, employees, and independent
         contractors as the Committee may deem necessary or advisable for the
         proper and efficient administration of the Plan;

                  (e) To determine in its discretion all questions relating to
         eligibility;

                  (f) To determine whether and when a Member has incurred a
         Termination of Service, and the reason for such termination;

                  (g) To establish maximum aggregate Member Deferrals pursuant
         to Section 3.1(b);

                  (h) To make determinations pursuant to Article XII;

                  (i) To make a determination in its discretion as to the right
         of any person to a benefit under the Plan and to prescribe procedures
         to be followed by distributees in obtaining benefits hereunder;

                  (j) To receive and review reports from the Trustee as to the
         financial condition of the Trust Fund, including its receipts and
         disbursements; and

                  (k) To establish or designate Funds as investment options as
         provided in Section 4.1.

         8.5 CLAIMS REVIEW. In any case in which a claim for Plan benefits of a
Member or beneficiary is denied or modified, the Committee shall furnish written
notice to the claimant within 90 days (or within 180 days if additional
information requested by the Committee necessitates an extension of the 90-day
period), which notice shall:

                  (a) State the specific reason or reasons for the denial or
         modification;

                  (b) Provide specific reference to pertinent Plan provisions on
         which the denial or modification is based;

                  (c) Provide a description of any additional material or
         information necessary for the Member, his beneficiary, or
         representative to perfect the claim and an explanation of why such
         material or information is necessary; and

                  (d) Explain the Plan's claim review procedure as contained
         herein.

In the event a claim for Plan benefits is denied or modified, if the Member, his
beneficiary, or a representative of such Member or beneficiary desires to have
such denial or modification reviewed, he must, within 60 days following receipt
of the notice of such denial or modification, submit a written request for
review by the Committee of its initial decision. In connection with such
request, the Member, his beneficiary, or the representative of such Member or
beneficiary may review any

                                     VIII-2
<PAGE>

pertinent documents upon which such denial or modification was based and may
submit issues and comments in writing. Within 60 days following such request for
review the Committee shall, after providing a full and fair review, render its
final decision in writing to the Member, his beneficiary, or the representative
of such Member or beneficiary stating specific reasons for such decision and
making specific references to pertinent Plan provisions upon which the decision
is based. If special circumstances require an extension of such 60-day period,
the Committee's decision shall be rendered as soon as possible, but not later
than 120 days after receipt of the request for review. If an extension of time
for review is required, written notice of the extension shall be furnished to
the Member, beneficiary, or the representative of such Member or beneficiary
prior to the commencement of the extension period.

         8.6 MANDATORY ARBITRATION. If the Member, his beneficiary, or a
representative of such Member or beneficiary is not satisfied with the final
decision of the Committee pursuant to the Plan's claims review procedure, such
Member, his beneficiary, or a representative of such Member or beneficiary may,
within 180 days of receipt of the written final decision of the Committee,
request by written notice to the Committee, that his claim be submitted to
arbitration pursuant to the arbitration procedures then in effect as adopted by
the Committee. Such arbitration shall be the sole and exclusive procedure
available to the Member, his beneficiary, or a representative of such Member or
his beneficiary for review of a final decision of the Committee. In reviewing
the decision of the Committee, the arbitrator shall use the standard of review
which would be used by a Federal court in reviewing such decision under the
provisions of ERISA. The Member, his beneficiary, or a representative of such
Member or beneficiary and the Plan shall share equally the cost of such
arbitration. The arbitrator's decision shall be final and legally binding on
both parties. This Section shall be governed by the provisions of the Federal
Arbitration Act.

         8.7 EMPLOYER TO SUPPLY INFORMATION. The Employer shall supply full and
timely information to the Committee, including, but not limited to, information
relating to each Member's Compensation, age, retirement, death, or other cause
of Termination of Service and such other pertinent facts as the Committee may
require. The Employer shall advise the Trustee of such of the foregoing facts as
are deemed necessary for the Trustee to carry out the Trustee's duties under the
Plan and the Trust Agreement. When making a determination in connection with the
Plan, the Committee shall be entitled to rely upon the aforesaid information
furnished by the Employer.

         8.8 INDEMNITY. To the extent permitted by applicable law, the Company
shall indemnify and save harmless each member of the Committee and the
Compensation Committee against any and all expenses, liabilities and claims
(including legal fees incurred to defend against such liabilities and claims)
arising out of their discharge in good faith of responsibilities under or
incident to the Plan. Expenses and liabilities arising out of willful misconduct
shall not be covered under this indemnity. This indemnity shall not preclude
such further indemnities as may be available under insurance purchased by the
Company or provided by the Company under any bylaw, agreement, vote of
stockholders or disinterested directors or otherwise, as such indemnities are
permitted under applicable law.

         8.9 CHANGE IN CONTROL. Notwithstanding any provision in the Plan to the
contrary, upon the occurrence of a Change in Control, the Committee's powers and
duties under the Plan shall cease to the extent, if any, such powers and duties
are vested in the Trustee under the terms of the Trust Agreement.

                                     VIII-3
<PAGE>

                                       IX.

                             ADMINISTRATION OF FUNDS

         9.1 PAYMENT OF EXPENSES. All expenses incident to the administration of
the Plan and Trust, including but not limited to, legal, accounting, Trustee
fees, and expenses of the Committee, may be paid by the Employer and, if not
paid by the Employer, shall be paid by the Trustee from the Trust Fund, if any.

         9.2 TRUST FUND PROPERTY. All income, profits, recoveries,
contributions, forfeitures and any and all moneys, securities and properties of
any kind at any time received or held by the Trustee, if any, shall be held for
investment purposes as a commingled Trust Fund pursuant to the terms of the
Trust Agreement. The Committee shall maintain one or more Accounts in the name
of each Member, but the maintenance of an Account designated as the Account of a
Member shall not mean that such Member shall have a greater or lesser interest
than that due him by operation of the Plan and shall not be considered as
segregating any funds or property from any other funds or property contained in
the commingled fund. No Member shall have any title to any specific asset in the
Trust Fund, if any.

                                      IX-1
<PAGE>

                                       X.

                               NATURE OF THE PLAN

         The Employer intends and desires by the adoption of the Plan to
recognize the value to the Employer of the past and present services of
employees covered by the Plan and to encourage and assure their continued
service with the Employer by making more adequate provision for their future
retirement security. The establishment of the Plan is made necessary by certain
benefit limitations which are imposed on the Savings Plan by ERISA and by the
Code. The Plan is intended to constitute an unfunded, unsecured plan of deferred
compensation for a select group of management or highly compensated employees of
the Employer. Plan benefits herein provided are a contractual obligation of the
Employer which shall be paid out of the Employer's general assets. Nevertheless,
subject to the terms hereof and of the Trust Agreement, the Employer may
transfer money or other property to the Trustee to provide Plan benefits
hereunder, and the Trustee shall pay Plan benefits to Members and their
beneficiaries out of the Trust Fund. To the extent that the Employer transfers
assets to the Trustee pursuant to the Trust Agreement, the Committee may, but
need not, establish procedures for the Trustees to invest the Trust Fund in
accordance with each Member's designated deemed investments pursuant to Section
4.1 respecting the portion of the Trust Fund assets equal to such Member's
Accounts.

         The Compensation Committee, in its sole discretion, may establish the
Trust and direct the Employer to enter into the Trust Agreement. In such event,
the Employer shall remain the owner of all assets in the Trust Fund and the
assets shall be subject to the claims of the Employer's creditors if the
Employer ever becomes insolvent. For purposes hereof, the Employer shall be
considered "insolvent" if (a) the Employer is unable to pay its debts as such
debts become due or (b) the Employer is subject to a pending proceeding as a
debtor under the United Sates Bankruptcy Code (or any successor federal
statute). The chief executive officer of the Employer and its board of directors
shall have the duty to inform the Trustee in writing if the Employer becomes
insolvent. Such notice given under the preceding sentence by any party shall
satisfy all of the parties' duty to give notice. When so informed, the Trustee
shall suspend payments to the Members and hold the assets for the benefit of the
Employer's general creditors. If the Trustee receives a written allegation that
the Employer is insolvent, the Trustee shall suspend payments to the Members and
hold the Trust Fund for the benefit of the Employer's general creditors, and
shall determine in the manner specified in the Trust Agreement whether the
Employer is insolvent. If the Trustee determines that the Employer is not
insolvent, the Trustee shall resume payments to the Members. No Member or
beneficiary shall have any preferred claim to, or any beneficial ownership
interest in, any assets of the Trust Fund, and, upon commencement of
participation in the Plan, each Member shall have agreed to waive his priority
credit position, if any, under applicable state law with respect to the assets
of the Trust Fund.

                                       X-1

<PAGE>

                                       XI.

                                  MISCELLANEOUS

         11.1 NO CONTRACT OF EMPLOYMENT. The adoption and maintenance of the
Plan shall not be deemed to be a contract between the Employer and any person or
to be consideration for the employment of any person. Nothing herein contained
shall be deemed to (a) give any person the right to be retained in the employ of
the Employer, (b) restrict the right of the Employer to discharge any person at
any time, (c) give the Employer the right to require any person to remain in the
employ of the Employer, or (d) restrict any person's right to terminate his
employment at any time.

         11.2 ALIENATION OF INTEREST FORBIDDEN. The interest of a Member or his
beneficiary or beneficiaries hereunder may not be sold, transferred, assigned,
or encumbered in any manner, either voluntarily or involuntarily, and any
attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber, or
charge the same shall be null and void; neither shall the benefits hereunder be
liable for or subject to the debts, contracts, liabilities, engagements or torts
of any person to whom such benefits or funds are payable, nor shall they be an
asset in bankruptcy or subject to garnishment, attachment or other legal or
equitable proceedings.

         11.3 WITHHOLDING. All Compensation deferrals and Employer Deferrals and
payments provided for hereunder shall be subject to applicable withholding and
other deductions as shall be required of the Employer under any applicable
local, state or federal law.

         11.4 AMENDMENT AND TERMINATION. The Compensation Committee may from
time to time, in its discretion, amend, in whole or in part, any or all of the
provisions of the Plan; provided, however, that no amendment may be made that
would impair the rights of a Member with respect to amounts already allocated to
his Accounts. The Compensation Committee may terminate the Plan at any time. In
the event that the Plan is terminated, the Vested Interest in the balance in a
Member's Accounts shall be paid to such Member or his designated beneficiary in
the manner specified by the Compensation Committee, which may include the
payment of a single lump sum payment in full satisfaction of all of such
Member's or beneficiary's benefits hereunder.

         11.5 SEVERABILITY. If any provision of this Plan shall be held illegal
or invalid for any reason, said illegality or invalidity shall not affect the
remaining provisions hereof; instead, each provision shall be fully severable
and the Plan shall be construed and enforced as if said illegal or invalid
provision had never been included herein.

         11.6 GUARANTY. Notwithstanding any provisions of the Plan to the
contrary, in the event any Employer fails to make payment of the benefits due
under the Plan on behalf of its Members, whether directly or through the Trust,
the Company shall be liable for and shall make payment of such benefits due as a
guarantor of such entity's obligations hereunder. The guaranty obligations
provided herein shall be satisfied directly and not through the Trust.

         11.7 GOVERNING LAWS. All provisions of the Plan shall be construed in
accordance with the laws of Texas except to the extent preempted by federal law.

                                      XI-1

<PAGE>

                                      XII.

                          PARTICIPATION BY CONSULTANTS

         12.1 ARTICLE CONTROLS. In the event of any conflict between the
foregoing provisions of the Plan and this Article XII, the provisions of this
Article XII shall control.

         12.2 DEFINITIONS. Where the following words and phrases appear in this
Article XII, they shall have the respective meanings set forth below, unless
their context clearly indicates to the contrary:

(1)      CONSULTING ARRANGEMENT: A written arrangement pursuant to which an
         individual agrees to perform consulting or advisory services for the
         Employer in a capacity other than as an employee.

(2)      CONSULTING PAY: The pay of any kind whatsoever paid in cash by the
         Employer to or for the benefit of a Member for services performed
         pursuant to a Consulting Arrangement while a Member, including pay a
         Member could have received in cash in lieu of deferrals made pursuant
         to Section 12.3(c).

         12.3 PARTICIPATION. The Committee, in its sole discretion, may
determine that if a Member enters into a Consulting Arrangement with the
Employer that is effective immediately upon his Termination of Service, then
such Member shall be eligible to continue his participation in the Plan as a
Member following such Termination of Service. Upon any such determination by the
Committee, the terms of the Plan shall, to the extent possible, continue to
apply to the Member as if such Member had not incurred a Termination of Service
except as set forth below:

                  (a) As of the effective date of such Consulting Arrangement,
         such Member shall be deemed not to have incurred a Termination of
         Service under the terms of the Plan until such time as such Member
         terminates any and all Consulting Arrangements with the Employer, and,
         with respect to such Member, all references to the employment
         relationship in the Plan shall be deemed to be references to any
         Consulting Arrangements into which such Member has entered;

                  (b) Such Member's Member Deferral elections made pursuant to
         Section 3.1 of the Plan shall no longer be effective as of the
         effective date of such Member's Consulting Arrangement, except that
         such Member's election, if any, to defer his Base Salary, Bonus and/or
         Commissions shall remain in effect with respect to any Base Salary,
         Bonus and/or Commissions paid for the period prior to the effective
         date of such Member's Consulting Arrangement;

                  (c) In order to begin deferring Consulting Pay under the Plan,
         such Member must execute and file with the Committee the Consulting Pay
         deferral election prescribed by the Committee, pursuant to which such
         Member may elect to defer a specific dollar amount of such Member's
         Consulting Pay or an integral percentage of from 1% to 50% of his
         Consulting Pay, prior to the effective date of such Member's Consulting
         Arrangement;

                  (d) If such member elects to defer an integral percentage of
         such Member's Consulting Pay, such Member may elect to establish a
         maximum deferral for a Plan Year, the

                                     XII-1
<PAGE>

         dollar amount of which such Member's combined aggregate total of
         Consulting Pay deferrals for such Plan Year shall not exceed;

                  (e) Such Member's deferrals of Consulting Pay pursuant to
         Paragraph (d) above shall be deemed to be Member Deferrals for purposes
         of the Plan, and such Member Deferrals (or projected Member Deferrals)
         for a Plan Year, when added to the Member Deferrals made by such Member
         pursuant to Section 3.1 (if any) during such Plan Year, shall be
         subject to the limits enumerated in, or established by the Committee
         with respect to such Member under, Section 3.1(b);

                  (f) Such Member's election pursuant to Paragraph (d) above may
         be changed, cancelled and subsequently resumed, and/or suspended in
         accordance with procedures and under circumstances similar to those
         described in Sections 3.1(e), (f), and (g), respectively;

                  (g) Such Member shall no longer be entitled to receive
         Employer Deferrals pursuant to Section 3.2(a) for periods following the
         effective date of such Member's Consulting Arrangement; and

                  (h) Such Member shall have a 100% Vested Interest in his
         Employer Account as of the effective date of his Consulting
         Arrangement.

                                     XII-2
<PAGE>

         EXECUTED this ______ day of February, 2002.

                               GROUP 1 AUTOMOTIVE, INC.

                               By:
                                     ------------------------------------------
                                     Name:
                                            -----------------------------------
                                     Title:
                                            -----------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]