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                                                                    EXHIBIT 10.8

                                      UPS

                        EXCESS COORDINATING BENEFIT PLAN

                               TABLE OF CONTENTS

<TABLE>
 <S>            <C>                                                          <C>
 ARTICLE I -- DEFINITIONS
    Section 1.1 Definitions................................................  1
        (a)     "Board of Directors".......................................  1
        (b)     "Change in Control"........................................  1
        (c)     "Code".....................................................  2
        (d)     "Committee"................................................  2
        (e)     "Coordinating Retirement Benefit"..........................  3
        (f)     "Coordinating Surviving Spouse Benefit"....................  3
        (g)     "Effective Date"...........................................  3
        (h)     "Eligible Employee"........................................  3
        (i)     "Employer Company".........................................  3
        (j)     "ERISA"....................................................  3
        (k)     "Participant"..............................................  3
        (l)     "Plan".....................................................  3
        (m)     "Prior Plan"...............................................  3
        (n)     "Retirement Date"..........................................  3
        (o)     "Retirement Plan"..........................................  4
 ARTICLE II -- ELIGIBILITY                                                   4
    Section 2.1 Eligible Employees.........................................  4
    Section 2.2 Prior Plan.................................................  4
    Section 2.3 Change in Control..........................................  4
    Section 2.4 Period of Participation....................................  4
 ARTICLE III -- BENEFITS                                                     5
    Section 3.1 Coordinating Retirement Benefit............................  5
    Section 3.2 Timing.....................................................  5
    Section 3.3 Lump Sum Option............................................  6
    Section 3.4 Reduced Lump Sum...........................................  6
 ARTICLE IV -- COORDINATING SURVIVING SPOUSE BENEFIT                         7
    Section 4.1 Coordinating Surviving Spouse Benefit......................  7
    Section 4.2 Timing and Form............................................  8
 ARTICLE V -- FORFEITURE OF BENEFITS                                         9
 ARTICLE VI -- COMMITTEE                                                     9
    Section 6.1 Establishment of Committee.................................  9
    Section 6.2 Delegation of Specific Responsibilities....................  10
    Section 6.3 Power to Establish Regulations.............................  10
    Section 6.4 Liability of the Committee.................................  11
    Section 6.5 Reliance by Committee......................................  11
    Section 6.6 Books and Records..........................................  11
 ARTICLE VII -- AMENDMENT AND TERMINATION                                    11
    Section 7.1 Right of Amendment.........................................  11
    Section 7.2 Right to Terminate.........................................  12
 ARTICLE VIII -- NO FUNDING OBLIGATION                                       12
 ARTICLE IX -- MISCELLANEOUS                                                 12
    Section 9.1 Claims Procedure...........................................  12
    Section 9.2 No Guarantee of Employment.................................  13
    Section 9.3 Nonalienation of Benefits..................................  13
    Section 9.4 ERISA......................................................  13
    Section 9.5 Construction...............................................  14
</TABLE>

                                     Page 1
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                                      UPS

                       EXCESS COORDINATING BENEFIT PLAN

         United Parcel Service of America, Inc. ("UPS") hereby establishes,
effective as of January 29, 1998, this UPS Excess Coordinating Benefit Plan to
provide to certain highly compensated and management employees of UPS or its
affiliated companies who are participants in the Retirement Plan those
retirement benefits that cannot be paid from the Retirement Plan as a result of
the limitations imposed by Sections 401(a)(17) and 415 of the Code. This Plan
amends, restates and replaces the Prior Plan to the extent that plan provided
for "coordinating retirement benefits" as described in Section 3.1 of the Prior
Plan or death benefits as described in Section 5.1 of the Prior Plan.

                            ARTICLE I--DEFINITIONS

         Section 1.1 Definitions. Whenever used herein, the following words
shall have the meaning set forth below unless otherwise clearly required by the
context:

         (a)      "Board of Directors" means the Board of Directors and/or
Executive Committee of UPS.

         (b)      "Change in Control" means

                  (1)      the approval by the shareholders of UPS of a
         reorganization, merger, share exchange or consolidation, in each case,
         where persons who were shareholders of UPS immediately prior to such
         reorganization, merger, share exchange or consolidation do not,
         immediately thereafter, own more than 50% of the combined voting power
         of the reorganized, merged, surviving or consolidated company's then
         outstanding securities entitled to vote generally in the election of
         directors; or a liquidation or dissolution of UPS or of the sale of all
         or substantially all of UPS's assets;

                  (2)      consummation of a business combination between UPS
         and any entity which has a market capitalization equal to or greater
         than 80% of the market capitalization of UPS;

                  (3)      individuals who, as of the effective date of this
         Plan, constitute the Board of Directors (the "Incumbent Board") and who
         cease for any reason to constitute at least an 80% majority of the
         Board of Directors, provided that any person becoming a director
         subsequent to the effective date whose election, or nomination for
         election by UPS's shareholders, was approved by a vote of at least a
         majority of the directors then comprising the Incumbent Board (other
         than an election or nomination of an individual whose initial
         assumption of office is in connection with an actual or threatened
         election contest relating to the election of the directors of UPS, as
         such terms are used in Rule 14a-11 of Regulation 14A promulgated under
         the Securities Exchange Act of 1934) shall be considered as though such
         person were a member of the Incumbent Board; or

                  (4)      a change (other than due to retirement in the normal
         course) of 50% or more of the executive officers of UPS at the level of
         Senior Vice President and above within a consecutive twelve month
         period.

                                     Page 2
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         (c)      "Code" means the Internal Revenue Code of 1986, as amended.

         (d)      "Committee" means the administrative committee of the Plan,
the establishment and responsibilities of which are set forth in Article VII.

         (e)      "Coordinating Retirement Benefit" means the benefit described
in Section 3.1.

         (f)      "Coordinating Surviving Spouse Benefit" means the benefit
described in Section 4.1.

         (g)      "Effective Date" means January 29, 1998.

         (h)      "Eligible Employee" means each full-time manager and
supervisor of an Employer Company (as so designated on the payroll records for
such Employer Company) who has reached age 55 and completed as least 10 "years
of service" as described in the Retirement Plan.

         (i)      "Employer Company" means an Employer Company for purposes of
the Retirement Plan.

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

         (k)      "Participant" means an Eligible Employee and any other
employee or former employee of an Employer Company or surviving spouse who
becomes a participant in this Plan in accordance with Article II.

         (l)      "Plan" means the UPS Excess Coordinating Benefit Plan as set
forth in this document and as hereafter amended by the Board of Directors from
time to time.

         (m)      "Prior Plan" means the UPS Coordinating Benefit Plan, as
established as of January 1, 1986 and as thereafter amended.

         (n)      "Retirement Date" means the Participant's early, normal or
postponed retirement date for purposes of the Retirement Plan.

         (o)      "Retirement Plan" means the UPS Retirement Plan, as amended.

                   ARTICLE II--ELIGIBILITY AND PARTICIPATION

         Section 2.1 Eligible Employees. The Committee shall designate those
Eligible Employees who shall be entitled to participate in this Plan and each
Eligible Employee so designated shall become a Participant upon the completion
of such application or other procedures established by the Committee to commence
participation.

         Section 2.2 Prior Plan. Each former employee of an Employer Company who
was receiving a "coordinating retirement benefit" as described in Section 3.1 of
the Prior Plan and each surviving spouse who was receiving a death benefit as
described in Section 5.1 of the Prior Plan immediately before the Effective Date
automatically shall become a Participant in this Plan on the Effective Date to
the extent of his/her coordinating retirement benefit or death benefit under the
Prior Plan.

         Section 2.3 Change in Control. Each employee of an Employer Company who
is employed as a full-time manager or supervisor at the time of a Change in

                                     Page 3
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Control (as designated on the payroll records for such Employer Company) whose
benefit under the Retirement Plan is limited at any date on or after the Change
in Control by Section 401(a)(17) or Section 415 of the Code automatically will
become a participant in this Plan as of the latest to occur of the date his/her
Retirement Plan benefit first becomes limited or the date of the Change in
Control.

         Section 2.4 Period of Participation. Each person who becomes a
Participant in this Plan shall remain a Participant until the earlier of a)
his/her benefits under the Retirement Plan are no longer limited by Section
401(a)(17) or Section 415 of the Code or b) all benefits are paid to or on
behalf of such Participant in accordance with Article III or forfeited in
accordance with Article V.

                             ARTICLE III--BENEFITS

         Section 3.1 Coordinating Retirement Benefit. Upon attainment of his/her
Retirement Date and retirement from service with all Employer Companies with a
benefit payable from the Retirement Plan, a Participant (other than a
Participant who was receiving a benefit under the Prior Plan) shall be entitled
to an annual Coordinating Retirement Benefit, equal to (a) minus (b) below:

         (a)      The Participant's benefit from the Retirement Plan (in the
same form payable to the Participant under the Retirement Plan) taking into
account any reduction applicable under the Retirement Plan for benefit payments
under other plans or programs, but without taking into account the additional
benefits described in Exhibit D of the Retirement Plan or the limitations of
Sections 401(a)(17) and 415 of the Code.

         (b)    The Participant's actual benefit from the Retirement Plan.

Each Participant who was receiving a coordinating retirement benefit described
in Section 3.1 of the Prior Plan immediately before the Effective Date shall
receive a Coordinating Retirement Benefit equal to the amount of that Prior Plan
benefit.

         Section 3.2 Timing. Except as provided in Sections 3.3 and 3.4, the
Coordinating Retirement Benefit shall commence on the same date as payment of
the Participant's benefit under the Retirement Plan, be paid thereafter on the
same date as payments are made to the Participant or his/her surviving spouse or
beneficiary by the Retirement Plan, and shall cease to be paid upon cessation of
the payment of benefits to the Participant or his/her surviving spouse or
beneficiary from the Retirement Plan.

         Section 3.3 Lump Sum Option. A Participant in salary grade 25 or higher
retiring after the Effective Date but on or before March 1, 1998, may make a
written election in accordance with procedures established by the Committee to
have the present value of all or a portion of the benefit payable to such
Participant under Section 3.1 paid to him/her in a lump sum as soon as
practicable following his/her retirement from service with all Employer
Companies in lieu of any benefit that would have been payable to such
Participant under Section 3.1. Present value shall be calculated using the
"applicable interest rate" and the "applicable mortality table" as defined in
Section 417 of the Code and such additional assumptions as the Committee deems
appropriate to reflect the possibility that the Participant's Retirement Plan
benefit will be increased when the limitations under Section 415 of the Code are
increased. The applicable interest rate for any Plan Year shall be determined
for the entire Plan Year based on the rate in effect for October

                                     Page 4
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preceding the beginning of such Plan Year. A lump sum option must be elected
before the Effective Date of this Plan and shall be irrevocable. No Coordinating
Surviving Spouse Benefit shall be payable on behalf of a Participant to the
extent such Participant receives a lump sum payment under this Section 3.3. A
Participant who receives a lump sum in lieu of his/her entire benefit payable
under Section 3.1 thereafter shall cease to be a Participant in this Plan.

I.       Section 3.4 Reduced Lump Sum. Notwithstanding the foregoing, if the
         rating assigned to UPS senior debt securities by Standard & Poor's
         Rating Group becomes BBB- and the rating assigned to such securities by
         Moody's Investors Services, Inc. becomes Baa3 (or, if either, but not
         both ratings services cease to rate UPS senior debt securities, the
         rating of the remaining service shall control) and such ratings remain
         in effect for a period of 90 days, a Participant who is an employee or
         former employee may at any time while such ratings are in effect elect
         to receive a reduced benefit in lieu of the benefit that otherwise
         would be payable to such Participant under Section 3.1 or 3.3. Such
         reduced benefit shall be equal to the present value of (a)(i) the
         benefit remaining to be paid to him/her if the Participant has begun to
         receive benefits under this Plan or (ii) if the Participant has not
         retired, the benefit that would have been payable to him/her if he/she
         had terminated employment at the end of the month in which such request
         is made less (b) 10%. Present value shall be calculated in accordance
         with Section 3.3. Such reduced benefit shall be paid to such
         Participant in a lump sum no later than 60 days after the written
         request for such benefit is received by the Committee. An election of a
         reduced benefit under this Section 3.4 shall be irrevocable. If a
         Participant elects a benefit under this Section 3.4, no Coordinating
         Surviving Spouse Benefit shall be payable on his/her behalf and such
         Participant thereafter shall cease to be an eligible Participant in
         this Plan.

               ARTICLE IV--COORDINATING SURVIVING SPOUSE BENEFIT

         Section 4.1 Coordinating Surviving Spouse Benefit. Upon the death of a
Participant (other than a Participant who was receiving a death benefit under
the Prior Plan) before commencement of a Coordinating Retirement Benefit , such
Participant's surviving spouse, if he/she is entitled to receive a Qualified
Joint and Survivor (Husband and Wife) Preretirement Survivor Benefit under the
Retirement Plan, shall be entitled to receive an annual Coordinating Surviving
Spouse Benefit from this Plan equal to (a) minus (b) minus (c) below:

         (a)      The survivor benefit that would be payable to such spouse from
the Retirement Plan without taking into account the additional benefits
described in Exhibit D of the Retirement Plan or the limitations of Sections
401(a)(17) and 415 of the Code.

         (b)      The actual benefit payable to such surviving spouse from the
Retirement Plan.

         (c)      An amount that bears the same proportion to the excess of (a)
over (b) as the portion of the Participant's benefit that was paid in a lump sum
under Section 3.3 bears to what would have been the Participant's entire benefit
under Section 3.1 of this Plan.

Notwithstanding the foregoing, if a Participant receives his/her entire benefit
in a lump sum under Section 3.3 or 3.4, no Coordinating Survivor Spouse Benefit
shall be payable to his/her surviving Spouse.

                                     Page 5
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         Each Participant who was receiving a death benefit under Section 5.1 of
the Prior Plan immediately before the Effective Date shall receive a
Coordinating Survivor Spouse Benefit equal to the amount of that Prior Plan
benefit.

         Section 4.2 Timing and Form. Except as provided below, the Coordinating
Surviving Spouse Benefit shall commence on the same date as payment of the
survivor benefit under the Retirement Plan begins, be paid thereafter on the
same date as payments are made to the surviving spouse by the Retirement Plan,
and shall cease to be paid upon cessation of the payment of benefits to the
surviving spouse from the Retirement Plan. If a Participant makes an election
under Section 3.3 to have all or a portion of the benefit payable to such
Participant paid to him/her in a lump sum, but dies before receiving such
benefit, then all or a portion of the Coordinating Surviving Spouse Benefit
payable to his/her Spouse shall be paid to such Spouse in a lump sum (calculated
using the same assumptions described in Section 3.3) as soon as practicable
following the Participant's death. The portion of the Coordinating Surviving
Spouse Benefit payable in a lump sum shall be the same percentage of the benefit
elected by the Participant to be paid to him/her in a lump sum.

                       ARTICLE V--FORFEITURE OF BENEFITS

         Anything herein to the contrary notwithstanding, if a Participant who
is receiving, or may be entitled to receive, a benefit hereunder engages in
competition with UPS or any Employer Company (without prior written
authorization given by the Board of Directors) or is discharged for cause, or
performs acts of willful malfeasance or gross negligence in a matter of material
importance to the Employer Company, payments thereafter payable hereunder to
such Participant or such Participant's spouse or beneficiary will, at the sole
discretion of the Board of Directors, be forfeited and neither UPS nor this Plan
will have any further obligation hereunder to such Participant or his/her spouse
or designated Beneficiary.

                             ARTICLE VI--COMMITTEE

         Section 6.1 Establishment of Committee. Authority to control and manage
the operation and administration of the Plan shall be vested in the Committee
consisting of not less than three (3) members, who shall be appointed by the
Board of Directors. The Committee shall be the agent for service of process on
or with respect to the Plan. Committee members may be removed at any time by the
Board of Directors and may resign at any time, such resignation to be effective
when accepted by the Board of Directors. All vacancies shall be filled by the
Board of Directors. The Committee may appoint from their number such committees,
which may include individuals not members of the Committee, with such powers as
they shall determine; may authorize one or more of their number, or any agent,
to execute or deliver any instrument, or to make any payment in their behalf;
and may employ legal counsel (who may be counsel to UPS), agents, and such
clerical, accounting and other services as they may require in carrying out the
provisions of the Plan. A majority of the members of the Committee at the time
in office shall constitute a quorum for the transaction of business. All
resolutions or other action taken by the Committee at a meeting shall be by the
vote of the majority of the Committee at any meeting; or without a meeting, by
instrument in writing signed by all of the members of the Committee.

         Section 6.2 Delegation of Specific Responsibilities. The members of the
Committee may agree in a writing signed by each member to allocate to any one of
their number or to other persons any of the responsibilities with which they are
charged pursuant hereto, provided the

                                     Page 6
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responsibilities and duties so delegated are definitively set forth so that the
person to whom the delegation is made is clearly aware of such duties and
responsibilities. If such delegation is made to a person not a member of the
Committee, that person or, in the case of a corporation, its responsible
officer, shall acknowledge the acceptance and understanding of such duties and
responsibilities.

         Section 6.3 Power to Establish Regulations. The Committee shall
establish rules and regulations for the administration of the Plan and the
Committee. Except as otherwise herein expressly provided, the Committee shall
have the exclusive right to interpret the Plan and decide any matters arising in
the administration and operation of the Plan, and any interpretations or
decisions so made shall be conclusive and binding on all persons; provided,
however, that all such interpretations and decisions shall be applied in a
uniform manner to all employees and Participants similarly situated.

         Section 6.4 Liability of the Committee. The Committee and members
thereof, to the extent of the exercise of their authority, shall discharge their
duties with respect to the Plan with care, skill, prudence and diligence;
provided, however, that no Committee member shall be responsible for the actions
or omissions of a member or any other person, other than himself/herself, which
are not in conformity hereto, unless such member knowingly participates in or
knowingly conceals such conduct which he/she knows to be in breach of this
standard, his/her own conduct has enabled the other member or other person to be
in breach of this standard, or he/she has knowledge of such breach by another
member or other person and fails to make reasonable efforts under the
circumstances to remedy such breach.

         Section 6.5 Reliance by Committee. Board of Directors and Committee
members shall be fully protected with respect to any action taken or suffered by
them in good faith in reliance upon the advice or opinion of any insurance
carrier, accountant, legal counsel or physician, and all action so taken or
suffered shall be conclusive upon all Participants and any other person claiming
under the Plan.

         Section 6.6 Books and Records. The Committee shall keep appropriate
books and records.

                    ARTICLE VII--AMENDMENT AND TERMINATION

         Section 7.1 Right of Amendment. UPS reserves the right to make any
amendment or amendments to this Plan by resolutions of its Board of Directors,
provided, however, that no amendment shall reduce UPS's liability to provide any
benefits earned to date of amendment hereunder to employees who are Participants
on the date of amendment, except as provided in Article V hereof.

         Section 7.2 Right to Terminate. UPS, by action of its Board of
Directors, may terminate this Plan at any time in whole or in part. No
termination of this Plan shall reduce UPS's liability to provide any benefits
earned to date of termination hereunder to employees who are Participants on the
date of termination based on the provisions of this Plan in effect immediately
prior to the date of termination, or the amount of benefits payable to a
Participant who has retired under the provisions of this Plan or the spouse or
other Beneficiary of any Participant receiving benefits under this Plan, except
as provided in Article V hereof. Upon termination of this Plan, no additional
employees may become Participants hereunder.

                      ARTICLE VIII--NO FUNDING OBLIGATION

         The obligation of UPS to pay any benefits under this Plan shall be
unfunded and unsecured; and any payments under this Plan shall be made from the
general assets of UPS. Notwithstanding the foregoing, UPS may, in its
discretion, establish an irrevocable grantor trust for the purpose of funding
all or part

                                     Page 7
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of its obligations under this plan; provided however, that the terms of such
trust require that the assets thereof remain subject to the claims of UPS's
judgment creditors and are non-assignable and non-alienable by any Participant
or Beneficiary prior to distribution thereof.

                           ARTICLE IX--MISCELLANEOUS

         Section 9.1 Claims Procedure. Any claim for a benefit under this Plan
shall be filed and resolved in accordance with the claims procedure provided
under the Retirement Plan which is hereby incorporated in this Plan by
reference, except that the Committee of this Plan shall be the entity with whom
a claim for review should be filed under this Plan.

         Section 9.2 No Guarantee of Employment. Nothing contained in this Plan
shall be construed as a contract of employment between the Employer Company and
any employee or Participant, as a right of any employee or Participant to be
continued in the employment of the Employer Company, or as a limitation of the
right of the Employer Company to discharge the employee or Participant with or
without cause.

         Section 9.3 Nonalienation of Benefits. No benefit or payment under this
Plan shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, levy or charge, and any attempt so to
anticipate, alienate, sell, transfer, assign, pledge, encumber, levy upon or
charge the same shall be void except that benefits may be paid to an alternate
payee under a domestic relations order that is treated as a qualified domestic
relations order under the Retirement Plan. Notwithstanding this statement, if
the Participant is indebted to UPS at any time when payments are required to be
made under the provisions of this Plan, UPS shall have the right to reduce the
amount of payments remaining to be made to the Participant or his/her spouse or
beneficiary under the Plan to the extent of such indebtedness. An election by
UPS not to reduce such payment shall not constitute a waiver of its claim for
such indebtedness.

         Section 9.4 ERISA. UPS intends that this Plan constitute an "excess
benefit plan" as defined in Section 3(36) of ERISA and, therefore, be exempt
from coverage under ERISA. However, to the extent this Plan does not constitute
an "excess benefit plan," UPS intends that this Plan come within the various
exceptions and exemptions to ERISA for a plan maintained for a "select group of
management or highly compensated employees" as described in Sections 201(2),
301(a) (3), and 401(a) (1) of ERISA. Any ambiguities in this Plan shall be
construed to effect the intent as described in this Section.

         Section 9.5 Construction. The headings and subheadings set forth in
this Plan are intended for convenience only and have no substantive meaning
whatsoever. In the construction of this Plan, the singular shall include the
plural. This Plan shall be construed in accordance with the laws of the State of
Georgia.

                                     Page 8
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         Executed this 29th day of January, 1998.

ATTEST:                                   UNITED PARCEL SERVICE OF
                                          AMERICA, INC.

 /s/ Joseph R. Moderow
-------------------------------------        /s/ James P. Kelly
Joseph R. Moderow                         -------------------------------------
Secretary                                 James P. Kelly
                                          Chairman

                                     Page 9<PAGE>
                                                                    EXHIBIT 10.9

                      UNITED PARCEL SERVICE OF AMERICA, INC.
                             1996 STOCK OPTION PLAN
                 (As amended and restated on September 19, 1997)

1.       Purpose.

         The purpose of this Amended and Restated Plan is to ensure continuity
of management and increase the incentive for key managerial employees and
non-employee members of the Board of the Company to make major contributions to
the effective management or direction of the Company by providing them with an
opportunity to acquire equity interests in the Company in the manner
contemplated by this Amended and Restated Plan.

2.       Definitions.

         As used in this Amended and Restated Plan, the following definitions
shall apply:

         "Amended and Restated Plan" means this United Parcel Service of
America, Inc. 1996 Stock Option Plan as originally adopted by the Board on
February 14, 1996 and by the shareowners of the Company at the 1996 Annual
Meeting of Shareowners, as amended and restated on February 12, 1997, as amended
and restated on September 19, 1997, and as further amended in accordance
herewith from time to time.

         "Board" means the Board of Directors of the Company or, when
appropriate, the Executive Committee of the Board of Directors, acting for the
Board.

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

         "Company" means United Parcel Service of America, Inc.

         "Current Price" of a Share at any time means the price per Share which
the Board shall have determined to be the fair market value at which the Company
may express its willingness to purchase Shares from shareowners who offer them
for sale to the Company at that time.

         "Employee Optionee"  means any Optionee other than an Outside
Director Optionee.

         "Incentive Stock Option" means an Option that qualifies as an incentive
stock option within the meaning of Section 422 of the Code.

         "Nonqualified Option" means an Option that is not an Incentive Stock
Option.

         "Officer Compensation Committee" means the Officer Compensation
Committee of the Board.

         "Option" means the right to purchase Shares under the terms and
conditions of the Amended and Restated Plan, as evidenced by an option
certificate or agreement in such form, not inconsistent with the Amended and
Restated Plan, as the Committee may adopt for general use or for specific cases
from time to time.

         "Optionee" means the person to whom an Option has been granted under
the Amended and Restated Plan and, where the context permits, the estate,
personal representative or beneficiary to whom an Option has been transferred by
will or the laws of descent and distribution.

                                     Page 1
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         "Outside Director" means any member of the Board who is not, as of the
date of grant of an Option, an employee or a former employee of the Company or
any Subsidiary.

         "Outside Director Formula" has the meaning set forth in subparagraph E
of paragraph 7 of this Amended and Restated Plan.

         "Outside Director Optionee" means the Optionee who is, as of the date
of grant of an Option, an Outside Director.

         "Salary Committee" means the Salary Committee of the Board.

         "Shares" means shares of the Company's common stock, presently having a
par value of $0.10 per share.

         "Subsidiary" means any corporation, limited liability company or other
entity more than 50% of whose outstanding voting securities is owned by the
Company or by one or more of the Company's other Subsidiaries.

         "UPS Managers Stock Trust" means a trust arrangement established by
agreements conforming to the trust agreement made as of April 15, 1958, as
heretofore or hereafter amended (the "UPS Managers Trust Agreement"), among
certain employees of the Company and First Union National Bank, as Trustee
("First Union"), or any successor trust arrangement.

         An Option shall be deemed "granted" under the Amended and Restated Plan
on the date of the action taken by the Salary Committee or Officer Compensation
Committee approving the grant of an Option hereunder.

3.       Plan Adoption and Term.

         A.       The Amended and Restated Plan was originally adopted by the
Board on February 14, 1996 and by the shareowners of the Company at the 1996
Annual Meeting of Shareowners. The Amended and Restated Plan was amended and
restated by the Board on February 12, 1997 and the amendments received
shareowner approval at the 1997 Annual Meeting of Shareowners. The Amended and
Restated Plan was further amended and restated by the Executive Committee of the
Board of Directors on September 19, 1997 without the need for shareowner
approval.

         B.       No Option may be granted hereunder after March 31, 2001, but
Options granted on or before that date may extend beyond such date in accordance
with their terms.

4.       Administration of the Amended and Restated Plan.

         A.       Subject to the provisions of paragraph 7 regarding grant of
options and paragraph 16 regarding amendment of the Amended and Restated Plan,
this Amended and Restated Plan shall be administered by the Salary Committee or,
if the Salary Committee shall consist of fewer than two persons, by the Board.
All actions taken by the Salary Committee with respect to the Amended and
Restated Plan shall be reported to the Board at the next regular meeting of the
Board.

         B.       The Salary Committee shall have the authority to interpret the
provisions of the Amended and Restated Plan, to construe the terms of any
Option, to prescribe, amend and rescind rules and regulations

                                     Page 2
<PAGE>

relating to the Amended and Restated Plan, and to make all other determinations
in the judgment of the Salary Committee necessary or desirable for the
administration of the Amended and Restated Plan. The Salary Committee may
correct any defect, supply any omission or reconcile any inconsistency in the
Amended and Restated Plan or in any Option in the manner and to the extent it
shall deem expedient to effectuate the purposes and intent of the Amended and
Restated Plan.

         C.       Any power granted to the Salary Committee, either in this
Amended and Restated Plan or by the Board, may at any time be exercised by the
Board. Any determination by the Salary Committee shall be subject to review and
reversal or modification by the Board on its own motion, except that the Board
may not impair the rights of Optionees under Options previously granted.

         D.       Members of the Salary Committee, the Officer Compensation
Committee, the Executive Committee, and the Board shall not be liable for any
action or determination made by them in good faith.

5.       Eligibility.

         Key managerial employees of the Company and its Subsidiaries, and
Outside Directors, shall be eligible to participate in the Amended and Restated
Plan. All recipients of Options shall be selected on the basis of their having
demonstrated an ability to contribute substantially to the effective management
or direction of the Company and its Subsidiaries. Members of the Board shall be
eligible to receive Options under the Amended and Restated Plan, provided that:
(i) a member shall not participate in any decision or action affecting such
member other than a decision or action affecting all participants generally; and
(ii) Outside Directors shall be eligible to receive only Nonqualified Options.
No Option shall be issued under this Amended and Restated Plan to any individual
who at the time an Option might be granted hereunder owns stock possessing more
than 10% of the total combined voting power of all classes of stock of the
Company, or of any parent or Subsidiary of the Company.

6.       Limitation on the Number of Shares.

         Subject to adjustment as provided in paragraph 14, Options may be
granted pursuant to the Amended and Restated Plan for the purchase of not more
than 30,000,000 Shares. If prior to its exercise in full by an Optionee, any
Option is canceled or terminates or lapses in whole or in part for any reason
other than the termination of the Amended and Restated Plan as a whole, the
number of Shares not purchased thereunder shall forthwith become available again
for allocation under new Options, including new Options to such Optionee, in
accordance with the Amended and Restated Plan.

7.       Grant of Options.

         A.       At any time during the term of this Amended and Restated Plan,
the Salary Committee may grant to any eligible employee who is (i) eligible
under paragraph 5 hereof and (ii) not a member of the Board, a member of the
Salary Committee, or a person who is an officer of the Company as defined in
Rule 16a-1 under the Securities Exchange Act of 1934, as amended, an Option to
purchase any number of the Shares reserved for issuance under the Amended and
Restated Plan, subject to prior allocation of Shares to the same or other
persons and to the limitation of paragraph 6.

                                     Page 3
<PAGE>

         B.       At any time during the term of this Amended and Restated Plan,
the Officer Compensation Committee may grant to any eligible employee who is a
member of the Board, a member of the Salary Committee, or an officer of the
Company as defined in Rule 16a-1 under the Securities Exchange Act of 1934, as
amended, an Option to purchase any number of the Shares reserved for issuance
under the Amended and Restated Plan, subject to prior allocation of Shares to
the same or other persons and to the limitation of paragraph 6.

         C.       At the time of grant of each Option to an Employee Optionee,
the Salary Committee or the Officer Compensation Committee, as appropriate,
shall designate such Option as an Incentive Stock Option or as a Nonqualified
Option. However, the aggregate fair market value, as determined at the time the
Option is granted, of the Shares with respect to which Incentive Stock Options
may become exercisable for the first time by an Optionee during any calendar
year (under the Amended and Restated Plan and any other stock option plan of the
Company or any entity which, at the time of the granting of such Option, is a
parent or Subsidiary of the Company) shall not exceed $100,000. To the extent
that an Option designated as an Incentive Stock Option may be or become
exercisable for a number of Shares exceeding the limitation of the preceding
sentence, such Option shall be deemed to be an Incentive Stock Option with
respect to the maximum number of Shares permissible under the preceding sentence
and a Nonqualified Option with respect to any remaining Shares.

         D.       At such time as the Salary Committee or the Officer
Compensation Committee grants to any Employee Optionee an Option to purchase
Shares pursuant to subparagraph A or B of paragraph 7, it may also grant to such
Employee Optionee a right to receive money at the time of exercise of the Option
in an amount equal to a designated percentage of the amount by which the Current
Price of the Shares subject to the Option exceeds, at the time of exercise
thereof, the option price.

         E.       On the first day of each year, during the term of this Amended
and Restated Plan, on which any Option is granted to an Employee Optionee, each
Outside Director shall be granted Options to purchase Shares, as provided in
this subparagraph E of paragraph 7. Each Outside Director shall be granted
Options to purchase that number of the Shares, equal to the Outside Director
Formula, reserved for issuance under the Amended and Restated Plan, subject to
prior allocation of Shares to the same or other persons and to the limitation of
paragraph 6. In the case of each Outside Director, the Outside Director Formula
shall be 109.5% of such Outside Director's annual director's fee as in effect on
the last day of the most recently ended fiscal year of the Company, divided by
the Current Price of one Share on such date. The Salary Committee may at any
time and from time to time modify or amend the Outside Director Formula;
provided, however, that the Salary Committee may not: (i) modify or amend the
Outside Director Formula more often than once during any twelve-month period;
(ii) without shareowner approval, modify or amend the Outside Director Formula
in any respect that would materially increase the benefits accruing to Outside
Directors under the Amended and Restated Plan; or (iii) without the consent of
an Outside Director Optionee, make any modification or amendment of the Outside
Director Formula that would affect such Outside Director Optionee's rights under
any Option previously granted. All Options granted to Outside Director Optionees
shall be designated as Nonqualified Options.

8.       Purchase Price, Delivery of Shares, and Payment.

                                     Page 4
<PAGE>

         A.       The purchase price for each Share represented by an Option
shall be 100% of the Current Price of a Share at the time the Option is granted.
Notwithstanding the foregoing, the purchase price per Share shall not be less
than the par value of one Share.

         B.       Payment of the purchase price for Shares purchased shall be
made upon exercise of an Option by payment, (i) in cash, (ii) in Shares owned by
the purchaser for at least six months prior to the date of exercise and valued
at their then Current Price, or (iii) in any combination of cash and such
Shares. Any payment in Shares shall be effected by the delivery thereof to the
Secretary of the Company, endorsed in blank or accompanied by stock powers
executed in blank. For such purpose, the Optionee may notify the Trustee under
the UPS Managers Stock Trust, in writing, to transmit to the Secretary of the
Company, endorsed in blank, Shares held by the Trustee for the Optionee's
account under the UPS Managers Stock Trust.

         C.       All Shares issued by the Company to Employee Optionees upon
exercise of Options shall be subject to the UPS Managers Stock Trust. As a
condition to the receipt of Shares upon exercise of an Option, the Employee
Optionee shall execute and deliver to the Trustee of the UPS Managers Stock
Trust a trust deposit agreement. The Company shall then deposit with or deliver
to the Trustee the Shares issued to the Employee Optionee to be held by the
Trustee in trust for such Employee Optionee's benefit pursuant and subject to
the terms of the UPS Managers Trust Agreement.

         D.       In the event that any Shares are issued or distributed by the
Company to an Employee Optionee upon exercise of an Option on a date that is
later than the date of termination of the Employee Optionee's employment with
the Company and Subsidiaries (the "Termination Date"), then, for purposes of the
UPS Managers Stock Trust, the Company's rights to repurchase the Shares so
issued or distributed shall commence on the June 15 next following the first
anniversary of the Termination Date and such Shares shall be treated as
securities issued as a result of the distribution of rights appurtenant UPS
common stock owned by the Employee Optionee and subject to the UPS Managers
Stock Trust on the Termination Date.

         E.       All Shares issued by the Company to Outside Director Optionees
shall be subject to such agreements with respect to the repurchase of such
Shares, similar in purpose and effect to the provisions of the UPS Managers
Stock Trust, as the Salary Committee shall prescribe. As a condition to the
receipt of Shares upon exercise of an Option, the Outside Director Optionee
shall execute and deliver such agreements as the Salary Committee shall
prescribe.

9.       Duration of Options.

        Each Option and all rights thereunder shall expire five and one-half
years from the date on which the Option is granted, and shall be subject to
earlier termination as provided herein.

10.      Conditions Relating to Exercise.

         A.       Except as otherwise provided in Paragraph 11 hereof, no Option
shall be exercisable until the expiration of five years from the date the Option
is granted. Subject to the provisions of Paragraph 11, an Option may be
exercised only in its entirety and only during the period from April 1 to April
30 in the year in which the Option becomes exercisable.

                                     Page 5
<PAGE>

         B.       No Option shall be transferable by an Optionee otherwise than
by will or by the laws of descent and distribution.

         C.       All Options granted hereunder shall be exercisable during the
lifetime of the Optionee only by the Optionee or the Optionee's guardian or
legal representative.

         D.       An Option shall be exercised as follows:

         (1)      By delivering to the Company, at its principal office, to the
attention of its Secretary, written notice of the number of Shares with respect
to which the Option is being exercised; and

         (2)      By paying the purchase price for the Shares in accordance with
paragraph 8 hereof and any withholding tax required to be paid pursuant to
paragraph 15 hereof.

         E.       Notwithstanding any other provision in this Amended and
Restated Plan, no Option shall be exercisable unless and until (i) the Shares
may be legally issued and sold to the Optionee and (ii) the Optionee shall have
executed such documents and taken such action as the Salary Committee reasonably
shall deem advisable to assist the Company in complying with the requirements of
any applicable law.

11.     Effect of Termination of Employment or Service.

         A.       In the event an Employee Optionee's employment with the
Company and Subsidiaries shall terminate by reason of such Employee Optionee's
retirement with the consent of the Company or in accordance with an applicable
retirement plan, any Incentive Stock Option then held by such Employee Optionee,
which shall not have lapsed or expired shall, at the election of the Employee
Optionee: (i) be or immediately become fully exercisable but only for a period
ending on the earlier of a date three months following the date of retirement or
the date of expiration of the Option in accordance with its terms; or (ii) be
unaffected by such retirement. Any Nonqualified Option held by such an Employee
Optionee shall be unaffected by such retirement.

         B.       In the event an Employee Optionee's employment with the
Company and Subsidiaries shall terminate by reason of such Employee Optionee's
disability (within the meaning of Section 22(e)(3) of the Code), any Incentive
Stock Option then held by such Employee Optionee, which shall not have lapsed or
expired shall, at the election of the Employee Optionee: (i) be or immediately
become fully exercisable but only for a period ending on the earlier of a date
one year following the date of termination of employment or the date of
expiration of the Option in accordance with its terms; or (ii) be unaffected by
such termination of employment. Any Nonqualified Option held by such an Employee
Optionee shall be unaffected by such termination of employment.

         C.       In the event of an Employee Optionee's death (including death
while retired or disabled), any Option then held by such Employee Optionee which
shall not have lapsed or expired shall be or immediately become fully
exercisable at any time before the date of expiration of the Option in
accordance with its terms.

         D.       In the event an Employee Optionee shall cease to be employed
by the Company and Subsidiaries for any reason other than those specified in
subparagraphs A, B and C above, any Option then held by such Employee Optionee
shall immediately terminate.

                                     Page 6
<PAGE>

         E.       Whether an authorized leave of absence or absence in
government or military service constitutes a termination of employment shall be
determined by the Salary Committee, and the Salary Committee's determination
shall be final and conclusive on all persons affected thereby; provided,
however, that if such leave of absence or other absence shall be deemed a
termination of employment for purposes of the UPS Managers Stock Trust, it will
also constitute a termination of employment for purposes of the Amended and
Restated Plan.

         F.       In the case of any Option granted to an Outside Director
Optionee, if such Outside Director Optionee ceases for any reason to be a member
of the Board, then such Option shall be exercisable according to the following
provisions, and shall terminate upon the expiration of the applicable exercise
period, if any, specified in this subparagraph F of paragraph 11:

         (i)      If an Outside Director Optionee ceases to be a member of the
Board for any reason other than resignation, removal for cause or death, any
such Option held by such Outside Director Optionee which shall not have lapsed
or expired shall, at the election of the Outside Director Optionee: (I) be or
immediately become fully exercisable but only for a period ending on the earlier
of a date three months following the date on which such Outside Director
Optionee ceases to be a member of the Board or the date of expiration of the
Option in accordance with its terms; or (II) be unaffected.

         (ii)     Except as provided in clause (iii) of this subparagraph F of
paragraph 11, if during his term of office as a member of the Board an Outside
Director Optionee resigns from the Board or is removed from office for cause,
any Option held by the Outside Director Optionee which is not exercisable by the
Outside Director Optionee immediately prior to resignation or removal shall
terminate as of the date of resignation or removal, and any Option held by the
Outside Director Optionee which is exercisable by the Outside Director Optionee
immediately prior to resignation or removal shall be exercisable in accordance
with its terms.

         (iii)    If during his term of office as a member of the Board an
Outside Director Optionee's service on the Board shall terminate by reason of
such Outside Director Optionee's disability (within the meaning of Section
22(e)(3) of the Code), any Option then held by such Outside Director Optionee,
which shall not have lapsed or expired shall, at the election of the Outside
Director Optionee: (I) be or immediately become fully exercisable but only for a
period ending on the earlier of a date one year following the date on which such
Outside Director Optionee ceases to be a member of the Board or the date of
expiration of the Option in accordance with its terms; or (II) be unaffected.

         (iv)     Following the death of an Outside Director Optionee (including
death after ceasing, for any reason other than resignation or removal for cause,
to be a member of the Board) any Option held by the Outside Director Optionee
which shall not have lapsed or expired shall be or immediately become fully
exercisable at any time before the date of expiration of the Option in
accordance with its terms.

12.     No Special Rights Respecting Employment or Rate of Compensation.

        Nothing contained in the Amended and Restated Plan or in any Option
shall confer upon any Employee Optionee any right with respect to the
continuation of his or her employment by the Company or any Subsidiary or
interfere in any way with the right of the Company or any Subsidiary at any time
to terminate an Employee Optionee's employment or

                                     Page 7
<PAGE>

to increase or decrease the compensation of any Optionee from the rate in
existence at the time of the grant of an Option.

13.     Rights as a Shareowner.

        The holder of an Option shall have no rights as a shareowner with
respect to any Shares covered by the Option until the date such Shares are
issued as provided in paragraph 8. Except as provided in paragraph 14 below, no
adjustment shall be made for rights for which the record date occurs prior to
the date such Shares are issued.

14.     Antidilution Provisions.

         A.       In the event of a stock dividend, stock split, or other
subdivision, reclassification or combination of the common stock of the Company,
the Salary Committee may make such adjustments in the number of Shares for which
Options may be granted under the Amended and Restated Plan, the number of Shares
subject to unexercised Options, and the option prices as it deems equitable.

         B.       In the event that the outstanding common stock of the Company
is changed or converted into, or exchanged or exchangeable for, a different
number or kind of shares or other securities of the Company or of another
corporation, by reason of reorganization, merger, consolidation or combination,
the Salary Committee may make such adjustments in the number and kind of Shares
for which Options may be or may have been awarded under the Amended and Restated
Plan as it deems equitable; provided, however, that in the event of any
contemplated transaction which may constitute a change in control of the
Company, the Salary Committee, with the approval of a majority of the members of
the Board who are not then holding Options, may modify any and all outstanding
Options so as to accelerate, as a consequence of or in connection with such
transaction, an Optionee's right to exercise any such Option.

         C.       Each Optionee will be notified of any such adjustment and any
such adjustment, or the failure to make such adjustment, shall be binding on the
Optionee.

15.     Withholding Taxes.

        Whenever Shares are to be issued or cash paid to an Optionee upon
exercise of an Option, the Company shall have the right to require the Optionee
to remit to the Company, as a condition of exercise of the Option, an amount
sufficient to satisfy federal, state and local withholding tax requirements at
the time of exercise.

16.     Modification or Amendment of the Amended and Restated Plan.

        The Amended and Restated Plan may at any time or from time to time be
modified or amended by the affirmative votes of a majority of the Shares
present, or represented, and entitled to vote at a meeting of the Company's
shareowners. The Board or the Executive Committee of the Board may at any time
and from time to time modify or amend the Amended and Restated Plan in any
respect, or terminate the Amended and Restated Plan, except that, without
shareowner approval the Board or the Executive Committee of the Board may not
(a) materially increase the benefits accruing to participants under the Amended
and Restated Plan, (b) materially increase the number of Shares which may be
issued under

                                     Page 8
<PAGE>

the Amended and Restated Plan, or (c) materially modify the requirements as to
eligibility for participation in the Amended and Restated Plan. The termination,
modification or amendment of the Amended and Restated Plan shall not, without
the consent of an Optionee, affect the Optionee's rights under an Option
previously granted. With the consent of the Optionee, the Board or the Executive
Committee of the Board may amend outstanding Options in a manner not
inconsistent with the Amended and Restated Plan.

                                     Page 9

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