Document:

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                                                                    EXHIBIT 10.1

                                RSA SECURITY INC.
                           DEFERRED COMPENSATION PLAN

                                  March 1, 2000

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                                    ARTICLE I

                           PURPOSE AND EFFECTIVE DATE

The purpose of the RSA Security Inc. Deferred Compensation Plan ("Plan") is to
aid RSA Security Inc. and its subsidiaries in retaining and attracting executive
employees by providing them with tax deferred savings opportunities. The Plan
provides a select group of management and highly compensated employees within
the meaning of Sections 201(2), 301(a)3 and 401(a)(1) of the Employee Retirement
Income Security Act of 1974, as amended (ERISA) of RSA Security Inc. with the
opportunity to elect to defer receipt of specified portions of compensation, and
to have these deferred amounts treated as if invested in specified hypothetical
investment benchmarks. The Plan shall be effective for deferral elections made
hereunder on or after March 1, 2000.

                                   ARTICLE II

                                   DEFINITIONS

         For the purposes of this Plan, the following words and phrases shall
have the meanings indicated, unless the context clearly indicates otherwise:

         SECTION 2.01   ADMINISTRATIVE COMMITTEE. "Administrative Committee"
means the committee appointed by the RSA Security Inc. Deferred Compensation
Plan Committee of the Board.

         SECTION 2.02   BASE SALARY. "Base Salary" means the base rate of cash
compensation paid by the Company to or for the benefit of a Participant for
services rendered or labor performed while a Participant, including base pay a
Participant could have received in cash in lieu of (A) deferrals pursuant to
Section 4.02 and (B) contributions made on his behalf to any qualified plan
maintained by the Company or to any cafeteria plan under Section 125 of the
Internal Revenue Code maintained by the Company.

         SECTION 2.03   BASE SALARY DEFERRAL. "Base Salary Deferral" means the
amount of a Participant's Base Salary which the Participant elects to have
withheld on a pre-tax basis from his Base Salary and credited to his Deferral
Account pursuant to Section 4.02.

         SECTION 2.04   BENEFICIARY. "Beneficiary" means the person, persons or
entity designated by the Participant to receive any benefits payable under the
Plan pursuant to Article IX.

         SECTION 2.05   BOARD. "Board" means the Board of Directors of RSA
Security Inc.

         SECTION 2.06   CHANGE OF CONTROL. For purposes of this Plan, a "Change
of Control" shall be deemed to have occurred if:

         (i)    there is an acquisition, in any one transaction or a series of
transactions, other than from RSA Security Inc., by any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act")), of beneficial ownership
(within the meaning of Rule 13(d)(3) promulgated under the Exchange Act) of 20%
or more of either the then outstanding shares of Common Stock or the combined
voting power of the then outstanding voting securities of RSA Security Inc.
entitled to vote generally in the election of directors, but excluding, for this
purpose, any such acquisition by RSA Security Inc. or any of its subsidiaries,
or any employee benefit plan (or related trust) of RSA Security Inc. or its
subsidiaries, or any corporation with respect to which, following such
acquisition, more than 50% of the then outstanding shares of common stock of
such corporation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by the individuals
and entities who were the beneficial owners, respectively, of the common stock
and voting securities of RSA Security Inc. immediately prior to such acquisition
in substantially the same proportion as their ownership, immediately prior to
such acquisition, of the then outstanding shares of Common Stock or the combined
voting

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power of the then outstanding voting securities of RSA Security Inc. entitled to
vote generally in the election of directors, as the case may be; or

         (ii)   individuals who, as of March 1, 2000, constitute the Board (as
of such date, the "Incumbent Board") cease for any reason to constitute at least
a majority of the Board, provided that any individual becoming a director
subsequent to March 1, 2000, whose election, or nomination for election by RSA
Security Inc.'s shareholders, was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the
directors of RSA Security Inc. (as such terms are used in Rule 14(a)(11) or
Regulation 14A promulgated under the Exchange Act); or

         (iii)  there occurs either (A) the consummation of a reorganization,
merger or consolidation, in each case, with respect to which the individuals and
entities who were the respective beneficial owners of the common stock and
voting securities of RSA Security Inc. immediately prior to such reorganization,
merger or consolidation do not, following such reorganization, merger or
consolidation, beneficially own, directly or indirectly, more than 50% of,
respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such reorganization, merger or consolidation, or (B) an approval
by the shareholders of RSA Security Inc. of a complete liquidation of
dissolution of RSA Security Inc. or of the sale or other disposition of all or
substantially all of the assets of RSA Security Inc..

         (iv)   there occurs a Change of Control determined to be "hostile"
which is defined as a Change of Control of the Company which is not recommended
for approval to the shareholders by the Board. In this event, the Company shall
immediately pay to each Participant in a lump sum in cash or in Common Stock
with respect to payment of Gain Share Accounts and amounts invested in the
Company Stock Fund the balance in his/her Deferral Account(s) (determined as of
the most recent Valuation Date preceding the Change of Control).

         SECTION 2.07   CODE. "Code" shall mean the Internal Revenue Code of
1986, as amended. References to any provision of the Code or regulation
(including a proposed regulation) thereunder shall include any successor
provisions or regulations.

         SECTION 2.08   COMMISSION. "Commission" means the amount awarded to a
Participant on any commission plan maintained by the Company.

         SECTION 2.09   COMMISSION DEFERRAL. "Commission Deferral" means the
amount of Commission that the Participant elects to have withheld on a pre-tax
basis from his Commission and credited to his Account pursuant to Section 4.1.

         SECTION 2.10   COMMON STOCK. "Common Stock" means the common stock of
RSA Security Inc..

         SECTION 2.11   COMPANY. "Company" means RSA Security Inc., its
successors, any subsidiary or affiliated organizations authorized by the Board
or the RSA Security Inc. Deferred Compensation Plan Committee to participate in
the Plan and any organization into which or with which RSA Security Inc. may
merge or consolidate or to which all or substantially all of its assets may be
transferred.

         SECTION 2.12   CONSIDERATION SHARES. "Consideration Shares" means
shares of Common Stock owned by a Participant for six months or longer.

         SECTION 2.13   DATE OF EXERCISE. The "Date of Exercise" means the date
on which Options are exercised by the Participant.

         SECTION 2.14   DEFERRAL ACCOUNT. "Deferral Account" means the account
maintained on the books of the Administrative Committee for each Participant
pursuant to Article VII.

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         SECTION 2.15   DEFERRAL PERIOD. "Deferral Period" is defined in
Section 4.02.

         SECTION 2.16   DEFERRED AMOUNT. "Deferred Amount" is defined in
Section 4.02.

         SECTION 2.17   DESIGNEE. "Designee" shall mean the Company's senior
human resources officers or other individuals to whom the Committee has
delegated the authority to take action under the Plan. Wherever Committee is
referenced in the plan, it shall be deemed to also refer to Designee.

         SECTION 2.18   DISABILITY. "Disability" means eligibility for
disability benefits under the terms of the Company's Long-Term Disability Plan
maintained by the Company.

        SECTION 2.19    ELIGIBLE COMPENSATION. "Eligible Compensation" means any
Base Salary or Incentive Compensation otherwise payable with respect to a Plan
Year.

         SECTION 2.20   EMPLOYER(S) shall mean the Company and/or any of its
subsidiaries (now in existence or hereafter formed or acquired) that have been
selected by the Board or any authorized committee thereof to participate in the
Plan and have adopted the Plan as a sponsor.

         SECTION 2.21   ERISA. "ERISA" means the Employee Retirement Income
Security Act of 1974, as amended.

         SECTION 2.22   FAIR MARKET VALUE. "Fair Market Value" of a share of
Common Stock means the closing price of the Company's Common Stock on the New
York Stock Exchange on the most recent day on which the Common Stock was so
traded that precedes the date as of which the Fair Market Value is to be
determined. The definition of Fair Market Value in this Section shall be
exclusively used to determine the values of a Participant's interest in the RSA
Security Inc. Share Fund (defined in Section 7.02(b)) for all relevant purposes
under the Plan.

         SECTION 2.23   FORM OF PAYMENT. "Form of Payment" means payment in one
lump sum or in substantially equal annual installments of 5, 10 or 15 years.

         SECTION 2.24   GAIN SHARE ACCOUNT. "Gain Share Account" means the
account maintained on the books by the Administrative Committee for the
Participant of the number of Phantom Share Units related to Gain Shares,
adjusted for hypothetical gains, earnings dividends, losses, distributions,
withdrawals and other similar activities.

         SECTION 2.25   GAIN SHARES. "Gain Shares" means the shares of Common
Stock so determined under Section 5.05 as resulting from the exercise of any
Option pursuant to Article V.

         SECTION 2.26   HARDSHIP WITHDRAWAL. "Hardship Withdrawal" means the
early payment of all or part of the balance in a Deferral Account(s) in the
event of an Unforeseeable Emergency.

         SECTION 2.27   HYPOTHETICAL INVESTMENT BENCHMARK. "Hypothetical
Investment Benchmark" shall mean the phantom investment benchmarks which are
used to measure the return credited to a Participant's Deferral Account.

         SECTION 2.28   INCENTIVE COMPENSATION. "Incentive Compensation" means
the amount awarded to a Participant for a Plan Year under any incentive plan
maintained by the Company.

         SECTION 2.29   INCENTIVE DEFERRAL. "Incentive Deferral" means the
amount of a Participant's Incentive Compensation which the Participant elects to
have withheld on a pre-tax basis from his Incentive Compensation and credited to
his account pursuant to Section 4.02.

        SECTION 2.30    OPTION. "Option" means an option to acquire shares of
Common Stock granted pursuant to the RSA Security Inc. Stock Option Plan or any
predecessor or successor thereto.

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         SECTION 2.31    OPTION EXPIRATION DATE. "Option Expiration Date" means
the date on which an Option expires under the terms of the RSA Security Inc.
Stock Option Plan.

         SECTION 2.32    OPTION SHARE. "Option Share" means a share of Common
Stock acquired (or deferred hereunder) pursuant to the exercise of an Option.

         SECTION 2.33   PARTICIPANT. "Participant" means any individual who is
eligible or makes an election to participate in this Plan and who elects to
participate by filing a Participation Agreement as provided in Article IV.

         SECTION 2.34   PARTICIPATION AGREEMENT. "Participation Agreement" means
an agreement filed by a Participant in accordance with Article IV.

         SECTION 2.35   PHANTOM SHARE UNITS. "Phantom Share Units" means units
of deemed investment in shares of RSA Security Inc. Common Stock so determined
under Sections 5.06 & 7.02 (b).

         SECTION 2.36    PLAN YEAR. "Plan Year" means a twelve-month period
beginning January 1 and ending the following December 31.

         SECTION 2.37   RETIREMENT. "Retirement" means retirement of a
Participant from all Employers after attaining the earlier of age 55 with at
least ten years of service in accordance with the method of determining years of
service adopted by the Company. The definition in this Section 2.35 shall not
have any effect on any other plan maintained by the Employer.

         SECTION 2.38   RSA SECURITY INC. DEFERRED COMPENSATION PLAN COMMITTEE.
"RSA Security Inc. Deferred Compensation Plan Committee" means the compensation
committee of the Board.

         SECTION 2.39   STOCK OPTION GAIN AGREEMENT. "Stock Option Gain
Agreement" means an agreement filed by a participant in accordance with Article
V to defer receipt of gain shares from the exercise of an Option.

         SECTION 2.40   TERMINATION OF EMPLOYMENT. "Termination of Employment"
means the cessation of a Participant's services as a full-time employee of the
Company for any reason other than Retirement.

         SECTION 2.41   UNFORESEEABLE EMERGENCY. "Unforeseeable Emergency" means
severe financial hardship to the Participant resulting from a sudden and
unexpected illness or accident of the Participant or a dependent of the
Participant, loss of the Participant's property due to casualty, or other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant.

         SECTION 2.42   VALUATION DATE. "Valuation Date" means the last day of
each calendar month or such other date as the Administrative Committee in its
sole discretion may determine.

                                   ARTICLE III

                                 ADMINISTRATION

         SECTION 3.01   RSA SECURITY INC. DEFERRED COMPENSATION PLAN COMMITTEE
AND ADMINISTRATIVE COMMITTEE DUTIES. This Plan shall be administered by the RSA
Security Inc. Deferred Compensation Plan Committee. A majority of the members of
the RSA Security Inc. Deferred Compensation Plan Committee shall constitute a
quorum for the transaction of business. All resolutions or other action taken by
the RSA Security Inc. Deferred Compensation Plan Committee shall be by a vote of
a majority of its members present at any meeting or, without a meeting, by an
instrument in writing signed by all its members. Members of the RSA Security
Inc. Deferred Compensation Plan Committee may participate in a meeting of such
committee by means of a conference telephone or similar communications equipment
that enables all persons participating in the meeting to hear each other, and
such participation in a meeting shall constitute presence in person at the
meeting and waiver of notice of such meeting.

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The RSA Security Inc. Deferred Compensation Plan Committee shall be responsible
for the administration of this Plan and shall have all powers necessary to
administer this Plan, including discretionary authority to determine eligibility
for benefits and to decide claims under the terms of this Plan, except to the
extent that any such powers are vested in any other person administering this
Plan by the RSA Security Inc. Deferred Compensation Plan Committee. The RSA
Security Inc. Deferred Compensation Plan Committee may from time to time
establish rules for the administration of this Plan, and it shall have the
exclusive right to interpret this Plan and to decide any matters arising in
connection with the administration and operation of this Plan. All rules,
interpretations and decisions of the RSA Security Inc. Deferred Compensation
Plan Committee shall be conclusive and binding on the Company, Participants and
Beneficiaries.

The RSA Security Inc. Deferred Compensation Plan Committee has delegated to the
Administrative Committee responsibility for performing certain administrative
and ministerial functions under this Plan. The Administrative Committee shall be
responsible for determining in the first instance issues related to eligibility,
Hypothetical Investment Benchmarks, distribution of Deferred Amounts,
determination of account balances, crediting of hypothetical earnings and
debiting of hypothetical losses and of distributions, in-service withdrawals,
deferral elections and any other duties concerning the day-to-day operation of
this Plan. The RSA Security Inc. Deferred Compensation Plan Committee shall have
discretion to delegate to the Administrative Committee such additional duties as
it may determine. The Administrative Committee may designate one of its members
as a chairperson and may retain and supervise outside providers, third party
administrators, record keepers and professionals (including in-house
professionals) to perform any or all of the duties delegated to it hereunder.

Neither the RSA Security Inc. Deferred Compensation Plan Committee nor a member
of the Board nor any member of the Administrative Committee shall be liable for
any act or action hereunder, whether of omission or commission, by any other
member or employee or by any agent to whom duties in connection with the
administration of this Plan have been delegated or for anything done or omitted
to be done in connection with this Plan. The RSA Security Inc. Deferred
Compensation Plan Committee and the Administrative Committee shall keep records
of all of their respective proceedings and the Administrative Committee shall
keep records of all payments made to Participants or Beneficiaries and payments
made for expenses or otherwise.

The Company shall, to the fullest extent permitted by law, indemnify each
director, officer or employee of the Company (including the heirs, executors,
administrators and other personal representatives of such person), each member
of the RSA Security Inc. Deferred Compensation Plan Committee and Administrative
Committee against expenses (including attorneys' fees), judgments, fines,
amounts paid in settlement, actually and reasonably incurred by such person in
connection with any threatened, pending or actual suit, action or proceeding
(whether civil, criminal, administrative or investigative in nature or
otherwise) in which such person may be involved by reason of the fact that he or
she is or was serving this Plan in any capacity at the request of the Company,
the RSA Security Inc. Deferred Compensation Plan Committee or Administrative
Committee.

Any expense incurred by the Company, the RSA Security Inc. Deferred Compensation
Plan Committee or the Administrative Committee relative to the administration of
this Plan shall be paid by the Company and/or may be deducted from the Deferral
Accounts of the Participants as determined by the RSA Security Inc. Deferred
Compensation Plan Committee.

      SECTION 3.02      CLAIM PROCEDURE. If a Participant or Beneficiary makes a
written request alleging a right to receive payments under this Plan or alleging
a right to receive an adjustment in benefits being paid under this Plan, such
actions shall be treated as a claim for benefits. All claims for benefits under
this Plan shall be sent to the Administrative Committee. If the Administrative
Committee determines that any individual who has claimed a right to receive
benefits, or different benefits, under this Plan is not entitled to receive all
or any part of the benefits claimed, the Administrative Committee shall inform
the claimant in writing of such determination and the reasons therefor in terms
calculated to be understood by the claimant. The notice shall be sent within 90
days of the claim unless the Administrative Committee determines that additional
time, not exceeding 90 days, is needed and so notifies the Participant. The
notice shall make specific reference to the pertinent Plan provisions on which
the denial is based, and shall describe any additional material or information
that is necessary. Such notice shall, in addition, inform the claimant of the
procedure that the claimant should follow to take advantage of the review

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procedures set forth below in the event the claimant desires to contest the
denial of the claim. The claimant may within 90 days thereafter submit in
writing to the Administrative Committee a notice that the claimant contests the
denial of his or her claim and desires a further review by the RSA Security Inc.
Deferred Compensation Plan Committee. The RSA Security Inc. Deferred
Compensation Plan Committee shall within 60 days thereafter review the claim and
authorize the claimant to review pertinent documents and submit issues and
comments relating to the claim to the RSA Security Inc. Deferred Compensation
Plan Committee. The RSA Security Inc. Deferred Compensation Plan Committee will
render a final decision on behalf of the Company with specific reasons therefor
in writing and will transmit it to the claimant within 60 days of the written
request for review, unless the Chairperson of the RSA Security Inc. Deferred
Compensation Plan Committee determines that additional time, not exceeding 60
days, is needed, and so notifies the Participant. If the Committee fails to
respond to a claim filed in accordance with the foregoing within 60 days or any
such extended period, the Company shall be deemed to have denied the claim.

                                   ARTICLE IV

                                  PARTICIPATION

         SECTION 4.01   DEFERRALS BY PARTICIPANTS. Before the first day of each
Plan Year (or the remaining portion thereof for an Employee who commences
participation in the Plan other than on the first day of a Plan Year), a
Participant may file with the Committee a Deferred Compensation Agreement
pursuant to which such Participant elects to make Base Salary Deferrals and/or
Bonus Deferrals and/or Commission Deferrals. Any such Participant election shall
be subject to any maximum or minimum percentage or dollar amount limitations and
to any other rules prescribed by the Committee in its sole discretion. Base
Salary Deferrals, Bonus Deferrals and Commission Deferrals will be credited to
the Account of each Participant as of the date the compensation would otherwise
have been paid to the Participant.

         SECTION 4.02   PARTICIPATION. Participation in the Plan shall be
limited to executives who (i) meet such eligibility criteria as the RSA Security
Inc. Deferred Compensation Plan Committee shall establish from time to time, and
(ii) elect to participate in this Plan by filing a Participation Agreement with
the Administrative Committee. A Participation Agreement must be filed prior to
the December 31st immediately preceding the Plan Year for which it is effective.
The Administrative Committee shall have the discretion to establish special
deadlines regarding the filing of Participation Agreements for Participants.

         SECTION 4.03   CONTENTS OF PARTICIPATION AGREEMENT. Subject to Article
VIII, each Participation Agreement shall set forth: (i) the amount of Eligible
Compensation for the Plan Year or performance period to which the Participation
Agreement relates that is to be deferred under the Plan (the "Deferred Amount"),
expressed as either a dollar amount or a percentage of the Base Salary and
Incentive Compensation for such Plan Year or performance period; PROVIDED, that
the minimum Deferred Amount for any Plan Year or performance period shall not be
less than $10,000 for each deferral elected and up to a maximum percentage of
75% of Base Salary and Commission and 100% of Incentive Compensation; (ii) the
period after which payment of the Deferred Amount is to be made or begin to be
made (the "Deferral Period"), which shall be the earlier of (A) a number of full
years, not less than three, and (B) the period ending upon the Retirement or
prior termination of employment of the Participant, and (iii) the form in which
payments are to be made, which may be a lump sum or in substantially equal
annual installments of 5, 10, or 15 years.

         SECTION 4.04   MODIFICATION OR REVOCATION OF ELECTION BY PARTICIPANT. A
Participant may not change the amount of his Base Salary Deferrals during a Plan
Year. However, a Participant may discontinue a Base Salary Deferral election at
any time by filing, on such forms and subject to such limitations and
restrictions as the Administrative Committee may prescribe in its discretion, a
revised Participation Agreement with the Administrative Committee. If approved
by the Administrative Committee, revocation shall take effect as of the first
payroll period next following its filing. If a Participant discontinues a Base
Salary Deferral election during a Plan Year, he will not be permitted to elect
to make Base Salary Deferrals again until the later of the next Plan Year or six
months from the date of discontinuance. In addition, the Deferral Period may be
extended if an amended Participation Agreement is filed with the Administrative
Committee at least one full calendar year before the Deferral Period (as

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in effect before such amendment) ends; provided, that only one such amendment
may be filed with respect to each Participation Agreement. Under no
circumstances may a Participant's Participation Agreement be made, modified or
revoked retroactively, nor may a deferral period be shortened or reduced.

                                    ARTICLE V

                           STOCK OPTION GAIN DEFERRALS

         SECTION 5.01   IN GENERAL: Subject to provisions of this Article V,
Participants may elect to defer receipt and distribution of the gain related to
the exercise of Options and resulting Gain Shares until the end of an elected
Deferral Period by filing a Stock Option Gain Agreement with the Administrative
Committee. The stock option gain deferral features of the Plan are effective for
deferral elections made on or after February 1, 2000.

         SECTION 5.02   TIMING OF FILING STOCK OPTION GAIN AGREEMENT. A Stock
Option Gain Agreement must be filed at least six months prior to the Date of
Exercise, prior to the calendar year in which occurs the Date of Exercise and no
later than the day before the first day of the six month period ending on the
Option Expiration Date. An Option with respect to which a Stock Option Gain
Agreement has been filed may not be exercised prior to the dates specified in
the preceding sentence.

         SECTION 5.03   CONTENTS OF STOCK OPTION GAIN AGREEMENT. Each Stock
Option Gain Agreement shall set forth: (i) the number of Options to be exercised
in connection with the deferrals hereunder; (ii) the date of grant of the
Options; (iii) the Deferral Period, which is not to be less than three years;
(iv) any other item determined to be appropriate by the Administrative
Committee. A Participant may elect to defer gain in increments of 25%, 50%, 75%
or 100% of the number of Gain Shares resulting from Options exercised on any one
Date of Exercise.

         SECTION 5.04   MANNER OF EXERCISING OPTION SHARES. A Participant who
desires to exercise an Option and to defer current receipt and distribution of
the related Gain Shares must follow the procedures and requirements that are
applicable to the Option under the RSA Security Inc. Option Stock Plan,
including the procedures and requirements relating to the exercise of an Option;
provided, however, that in the case of a deferral of Gain Shares under this
Plan, the Participant shall only be permitted to tender Consideration Shares to
pay the entire exercise price for any such Option exercised. Notwithstanding the
foregoing, the Administrative Committee may in its discretion accept the
Participant's attestation that he or she owns the number of Consideration Shares
necessary to effectuate the stock swap contemplated hereunder.

         SECTION 5.05   DETERMINATION OF GAIN SHARES. Upon exercise of an
Option, the Gain Shares from which the Participant has elected to defer
hereunder shall be determined as follows: (i) the aggregate exercise price for
all exercised Option Shares shall be determined; (ii) the number of
Consideration Shares needed to pay the exercise price for such Option Shares
shall be determined; (iii) the difference between the number of exercised Option
Shares and the number of Consideration Shares shall be the number of Gain Shares
resulting from such exercise. Any fractional Gain Share that results from the
computations hereunder shall be rounded up to the nearest whole number.

         SECTION 5.06   CONVERSION OF GAIN SHARES TO PHANTOM SHARE UNITS. As of
the Date of Exercise, Gain Shares shall be converted to Phantom Share Units by
dividing the amount of the aggregate Fair Market Value of the Gain Shares as of
the Date of Exercise by the Fair Market Value of one share of Common Stock as of
the Date of Exercise. The resulting number of Phantom Share Units shall be
credited to the Participant's Gain Share Account. Any fractional Phantom Share
Unit that results from the computations hereunder shall be rounded up to the
nearest whole number.

         SECTION 5.07   CHANGES TO THE STOCK OPTION GAIN AGREEMENT. A Stock
Option Gain Agreement may not be amended or revoked after the day on which it is
filed with the Administrative Committee, except that the Deferral Period may be
extended if an amended Stock Option Gain Agreement is filed with the
Administrative Committee at least one full calendar year before the Deferral
Period (as in effect before such amendment) ends, provided that only one such
amendment may be filed with respect to each Stock Option Gain Agreement.

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         SECTION 5.08   FAILURE TO PROPERLY EXERCISE. If a Participant makes a
valid election under this Article V to defer Gain Shares and if the Option
expires without a proper exercise of the Option by the Participant or if the
Participant fails to properly tender or attest to the Consideration Shares by
the last day of the Option term, the Participant shall forfeit any opportunity
to exercise the option and the Option shall be canceled as of the end of the
last business day of the Option term, according to the terms of the Sample
Standard Corporation Stock Option Plan.

         SECTION 5.09   DELIVER OF GAIN SHARES. The gain shares must be
physically delivered to the rabbi trustee or delivered to such other entity as
may be designated by the RSA Security Inc. Deferred Compensation Committee for
safe keeping such shares.

                                   ARTICLE VI

                              DEFERRED COMPENSATION

         SECTION 6.01   ELECTIVE DEFERRED COMPENSATION. The Deferred Amount of a
Participant with respect to each Plan Year of participation in the Plan shall be
credited by the Administrative Committee to the Participant's Deferral Account
as and when such Deferred Amount would otherwise have been paid to the
Participant. To the extent that the Company is required to withhold any taxes or
other amounts from the Deferred Amount pursuant to any state, Federal or local
law, such amounts shall be taken out of other compensation eligible to be paid
to the Participant that is not deferred under this Plan.

         SECTION 6.02   VESTING OF DEFERRAL ACCOUNT. Except as provided in
Section 8.02, a Participant shall be 100% vested in his/her Deferral Account at
all times.

                                   ARTICLE VII

                     MAINTENANCE AND INVESTMENT OF ACCOUNTS

         SECTION 7.01   MAINTENANCE OF ACCOUNTS. Separate Deferral Accounts
shall be maintained for each Participant. More than one Deferral Account may be
maintained for a Participant as necessary to reflect (a) various Hypothetical
Investment Benchmarks and/or (b) separate Participation Agreements specifying
different Deferral Periods and/or forms of payment. A Participant's Deferral
Account(s) shall be utilized solely as a device for the measurement and
determination of the amounts to be paid to the Participant pursuant to this
Plan, and shall not constitute or be treated as a trust fund of any kind. The
Administrative Committee shall determine the balance of each Deferral Account,
as of each Valuation Date, by adjusting the balance of such Deferral Account as
of the immediately preceding Valuation Date to reflect changes in the value of
the deemed investments thereof, credits and debits pursuant to Section 6.01 and
Section 7.02 and distributions pursuant to Article VIII with respect to such
Deferral Account since the preceding Valuation Date.

         SECTION 7.02   HYPOTHETICAL INVESTMENT BENCHMARKS. (a) Each Participant
shall be entitled to direct the manner in which his/her Deferral Accounts will
be deemed to be invested, selecting among the Hypothetical Investment Benchmarks
specified in Appendix A hereto, as amended by the RSA Security Inc. Deferred
Compensation Plan Committee from time to time, and in accordance with such
rules, regulations and procedures as the RSA Security Inc. Deferred Compensation
Plan Committee may establish from time to time. Notwithstanding anything to the
contrary herein, earnings and losses based on a Participant's investment
elections shall begin to accrue as of the date such Participant's Deferral
Amounts are credited to his/her Deferral Accounts.

         (b) (i) The Hypothetical Investment Benchmarks available for Deferral
Accounts from time to time may include a "RSA Security Inc. Share Fund." The RSA
Security Inc. Share Fund shall consist of deemed investments in shares of RSA
Security Inc. Common Stock. Deferred Amounts that are deemed to be invested in
the RSA Security Inc. Share Fund shall be converted into Phantom Share Units
based upon the Fair Market Value of the

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Common Stock as of the date(s) the Deferred Amounts are to be credited to a
Deferral Account. The portion of any Deferral Account that is invested in the
RSA Security Inc. Share Fund shall be credited, as of each Valuation Date, with
additional Phantom Share Units of Common Stock with respect to cash dividends
paid on the Common Stock with record dates during the period beginning on the
day after the most recent preceding Valuation Date and ending on such Valuation
Date.

         (ii) When a reallocation or a distribution of all or a portion of a
Deferral Account that is invested in the RSA Security Inc. Share Fund is to be
made, the balance in such a Deferral Account shall be determined by dividing the
Fair Market Value of one share of Common Stock on the most recent Valuation Date
preceding the date of such reallocation or distribution into the number of
Phantom Share Units to be reallocated or distributed. Upon a lump sum
distribution, the amounts in the RSA Security Inc. Share Fund shall be
distributed in the form of cash having a value equal to the Fair Market Value of
a comparable number of actual shares of Common Stock, or a combination thereof,
as determined by the RSA Security Inc. Deferred Compensation Plan Committee.

         (iii) In the event of a stock dividend, split-up or combination of the
Common Stock, merger, consolidation, reorganization, recapitalization, or other
change in the corporate structure or capitalization affecting the Common Stock,
such that an adjustment is determined by the RSA Security Inc. Deferred
Compensation Plan Committee to be appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available
under this Plan, then the RSA Security Inc. Deferred Compensation Plan Committee
may make appropriate adjustments to the number of deemed shares credited to any
Deferral Account. The determination of the RSA Security Inc. Deferred
Compensation Committee as to such adjustments, if any, to be made shall be
conclusive.

         (iv) Notwithstanding any other provision of this Plan, the RSA Security
Inc. Deferred Compensation Committee shall adopt such procedures as it may
determine are necessary to ensure that with respect to any Participant who is
actually or potentially subject to Section 16(b) of the Securities Exchange Act
of 1934, as amended, the crediting of deemed shares to his or her Deferral
Account is not deemed to be a non-exempt purchase for purposes of such Section
16(b), including without limitation requiring that no shares of Common Stock or
cash relating to such deemed shares may be distributed for six months after
being credited to such Deferral Account.

         SECTION 7.03   STATEMENT OF ACCOUNTS. The Administrative Committee
shall submit to each Participant quarterly statements of his/her Deferral
Account(s) and Gain Share Accounts(s), in such form as the Administrative
Committee deems desirable, setting forth the balance to the credit of such
Participant in his/her Deferral Account(s) and Gain Share Account(s) as of the
end of the most recently completed quarter.

                                  ARTICLE VIII

                                    BENEFITS

         SECTION 8.01   TIME AND FORM OF PAYMENT. At the end of the Deferral
Period for each Deferral Account, the Company shall pay to the Participant the
balance of such Deferral Account at the time or times elected by the Participant
in the applicable Participation Agreement; provided that if the Participant has
elected to receive payments from a Deferral Account in a lump sum, the Company
shall pay the balance in such Deferral Account (determined as of the most recent
Valuation Date preceding the end of the Deferral Period) in a lump sum in cash
(plus any shares of Common Stock that the Committee elects to deliver from any
investment in the RSA Security Inc. Share Fund) as soon as practicable after the
end of the Deferral Period. If the Participant has elected to receive payments
from a Deferral Account in installments, the Company shall make annual cash only
payments from such Deferral Account, each of which shall consist of an amount
equal to (i) the balance of such Deferral Account as of the most recent
Valuation Date preceding the payment date times (ii) a fraction, the numerator
of which is one and the denominator of which is the number of remaining
installments (including the installment being paid). The first such installment
shall be paid as soon as practicable after the end of the Deferral Period and
each subsequent installment shall be paid on or about the anniversary of such
first payment. Each such installment shall be deemed to be made on a pro rata
basis from each of the different deemed investments of the Deferral Account

                                       9
<PAGE>   11

(if there is more than one such deemed investment). At the end of the Deferral
Period for each Gain Share Account, the Company shall deliver to the Participant
the balance of such Gain Share Account at the time or times elected by the
Participant in the applicable Stock Option Gain Agreement in the form of actual
shares of Common Stock.

         SECTION 8.02   RESERVED FOR FUTURE USE

         SECTION 8.03   RETIREMENT. Subject to Section 8.01 and Section 8.06
hereof, if a Participant has elected to have the balance of his/her Deferral
Account or Gain Share Account distributed upon Retirement, the account balance
of the Participant (determined as of the most recent Valuation Date preceding
such Retirement) shall be distributed upon Retirement in installments or a lump
sum in accordance with the Plan and as elected in the Participant Agreement.

         SECTION 8.04   IN-SERVICE DISTRIBUTIONS. Subject to Section 8.01 and
Section 8.06 hereof, if a Participant has elected to defer Eligible Compensation
under the Plan for a stated number of years, the account balance of the
Participant (determined as of the most recent Valuation Date preceding such
Deferral Period) shall be distributed in installments or a lump sum in
accordance with the Plan and as elected in the Participant Agreement.

         SECTION 8.05   OTHER THAN RETIREMENT. Notwithstanding the provisions of
Section 8.04 and Section 8.05 hereof and any Participation Agreement, if a
Participant dies, has a Termination of Employment or Disability prior to
Retirement and prior to receiving full payment of his/her Deferral Account(s),
the Company shall pay the remaining balance (determined as of the most recent
Valuation Date preceding such event) to the Participant or the Participant's
Beneficiary or Beneficiaries (as the case may be) in a lump sum in cash only or
in Common Stock with respect to payment of Gain Share Accounts and amounts
invested in the RSA Security Inc. Stock Fund (notwithstanding Section 8.01
hereof) as soon as practicable following the occurrence of such event, unless
the Administrative Committee in its sole discretion determines otherwise.
Subject to Section 7.02(a) hereof, the amount distributable under the preceding
sentence of this Section 8.06 shall be based on the Participant's investments
elections.

         SECTION 8.06   HARDSHIP WITHDRAWALS. Notwithstanding the provisions of
Section 8.01 and any Participation Agreement, a Participant shall be entitled to
early payment of all or part of the balance in his/her Deferral Account(s) in
the event of an Unforeseeable Emergency, in accordance with this Section 8.06. A
distribution pursuant to this Section 8.06 may only be made to the extent
reasonably needed to satisfy the Unforeseeable Emergency need, and may not be
made if such need is or may be relieved (i) through reimbursement or
compensation by insurance or otherwise, (ii) by liquidation of the Participant's
assets to the extent such liquidation would not itself cause severe financial
hardship, or (iii) by cessation of participation in the Plan. An application for
an early payment under this Section 8.06 shall be made to the Administrative
Committee in such form and in accordance with such procedures as the
Administrative Committee shall determine from time to time. The determination of
whether and in what amount and form a distribution will be permitted pursuant to
this Section 8.06 shall be made by the Administrative Committee.

         SECTION 8.07   VOLUNTARY EARLY WITHDRAWAL. Notwithstanding the
provisions of Section 8.01 and any Participation Agreement, a Participant shall
be entitled to elect to withdraw all of the balance in his/her Deferral
Account(s) in accordance with this Section 8.07 by filing with the
Administrative Committee such forms, in accordance with such procedures, as the
Administrative Committee shall determine from time to time. As soon as
practicable after receipt of such form by the Administrative Committee, the
Company shall pay an amount equal to ninety percent of the balance in such
Participant's Deferral Account(s) (determined as of the most recent Valuation
Date preceding the date such election is filed) to the electing Participant in a
lump sum in cash, and the Participant shall forfeit the remainder of such
Deferral Account(s). All Participation Agreements previously filed by a
Participant who elects to make a withdrawal under this Section 8.07 shall be
null and void after such election is filed (including without limitation
Participation Agreements with respect to Plan Years or performance periods that
have not yet been completed), and such a Participant shall not thereafter be
entitled to file any Participation Agreements under the Plan with respect to the
first Plan Year that begins after such election is made.

                                       10
<PAGE>   12

         SECTION 8.08   CHANGE OF CONTROL. In the event of a Change of Control
that is recommended for approval to the shareholders by the Board, no immediate
special payment shall be made to any Participant and the terms and conditions of
the Plan shall remain in full force and effect. Notwithstanding anything
contained in this Plan to the contrary, upon a hostile Change of Control, the
Company shall immediately pay to each Participant in a lump sum in cash or in
Common Stock with respect to payment of Gain Share Accounts and amounts invested
in the Company Stock Fund the balance in his/her Deferral Account(s) (determined
as of the most recent Valuation Date preceding the Change of Control). Hostile
Change of Control is defined as a Change of Control of the Company which is not
recommended for approval to the shareholders by the Board.

         SECTION 8.09   PAYMENTS IN CONNECTION WITH CHANGE OF CONTROL.
Notwithstanding anything contained in this Plan to the contrary, upon a hostile
Change of Control, the Company shall immediately pay to each Participant in a
lump sum in cash or in Common Stock with respect to payment of Gain Share
Accounts and amounts invested in the RSA Security Inc. Stock Fund the balance in
his/her Deferral Account(s) (determined as of the most recent Valuation Date
preceding the Change of Control).

         SECTION 8.10   WITHHOLDING OF TAXES. Notwithstanding any other
provision of this Plan, the Company shall withhold from payments made hereunder
any amounts required to be so withheld by any applicable law or regulation.

                                   ARTICLE IX

                             BENEFICIARY DESIGNATION

         SECTION 9.01   BENEFICIARY DESIGNATION. Each Participant shall have the
right, at any time, to designate any person, persons or entity as his
Beneficiary or Beneficiaries. A Beneficiary designation shall be made, and may
be amended, by the Participant by filing a written designation with the
Administrative Committee, on such form and in accordance with such procedures as
the Administrative Committee shall establish from time to time.

         SECTION 9.02   NO BENEFICIARY DESIGNATION. If a Participant fails to
designate a Beneficiary as provided above, or if all designated Beneficiaries
predecease the Participant, then the Participant's Beneficiary shall be deemed
to be the Participant's estate.

                                    ARTICLE X

                        AMENDMENT AND TERMINATION OF PLAN

         SECTION 10.01  AMENDMENT. The Board or the RSA Security Inc. Deferred
Compensation Committee may at any time amend this Plan in whole or in part,
provided, however, that no amendment shall be effective to decrease the balance
in any Deferral Account as accrued at the time of such amendment, nor shall any
amendment otherwise have a retroactive effect.

         SECTION 10.02  COMPANY'S RIGHT TO TERMINATE. The Board or the RSA
Security Inc. Deferred Compensation Committee may at any time terminate the Plan
with respect to future Participation Agreements. The Board or the RSA Security
Inc. Deferred Compensation Committee may also terminate the Plan in its entirety
at any time for any reason, including without limitation if, in its judgment,
the continuance of the Plan, the tax, accounting, or other effects thereof, or
potential payments thereunder would not be in the best interests of the Company,
and upon any such termination, the Company shall immediately pay to each
Participant in a lump sum the accrued balance in his Deferral Account
(determined as of the most recent Valuation Date preceding the termination
date).

                                       11
<PAGE>   13

                                   ARTICLE XI

                                  MISCELLANEOUS

         SECTION 11.01  UNFUNDED PLAN. This Plan is intended to be an unfunded
plan maintained primarily for the purpose of providing deferred compensation for
a select group of management or highly compensated employees, within the meaning
of Sections 201, 301 and 401 of ERISA. All payments pursuant to the Plan shall
be made from the general funds of the Company and no special or separate fund
shall be established or other segregation of assets made to assure payment. No
Participant or other person shall have under any circumstances any interest in
any particular property or assets of the Company as a result of participating in
the Plan. Notwithstanding the foregoing, the Company may (but shall not be
obligated to) create one or more grantor trusts, the assets of which are subject
to the claims of the Company's creditors, to assist it in accumulating funds to
pay its obligations under the Plan.

         SECTION 11.02  NONASSIGNABILITY. Except as specifically set forth in
the Plan with respect to the designation of Beneficiaries, neither a Participant
nor any other person shall have any right to commute, sell, assign, transfer,
pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or
convey in advance of actual receipt the amounts, if any, payable hereunder, or
any part thereof, which are, and all rights to which are, expressly declared to
be unassignable and non-transferable. No part of the amounts payable shall,
prior to actual payment, be subject to seizure or sequestration for the payment
of any debts, judgments, alimony or separate maintenance owed by a Participant
or any other person, nor be transferable by operation of law in the event of a
Participant's or any other person's bankruptcy or insolvency.

         SECTION 11.03  VALIDITY AND SEVERABILITY. The invalidity or
unenforceability of any provision of this Plan shall not affect the validity or
enforceability of any other provision of this Plan, which shall remain in full
force and effect, and any prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction.

         SECTION 11.04  GOVERNING LAW. The validity, interpretation,
construction and performance of this Plan shall in all respects be governed by
the laws of the State of Massachusetts, without reference to principles of
conflict of law, except to the extent preempted by federal law.

         SECTION 11.05  EMPLOYMENT STATUS. This Plan does not constitute a
contract of employment or impose on the Participant or the Company any
obligation for the Participant to remain an employee of the Company or change
the status of the Participant's employment or the policies of the Company and
its affiliates regarding termination of employment.

         SECTION 11.06  UNDERLYING INCENTIVE PLANS AND PROGRAMS. Nothing in this
Plan shall prevent the Company from modifying, amending or terminating the
compensation or the incentive plans and programs pursuant to which cash awards
are earned and which are deferred under this Plan.

         SECTION 11.07  SEVERANCE. Notwithstanding anything to the contrary
herein the RSA Security Inc. Deferred Compensation Committee may, in its sole
and exclusive discretion, determine that the Deferral Account of a Participant
who has incurred a Termination of Employment and who receives or will receive
severance payments from the Company shall be paid in installments, at such
intervals as the RSA Security Inc. Deferred Compensation Committee may decide.

                                       12
<PAGE>   14

                                   APPENDIX A

NSAT Money Market
NSAT Government Bond
Fidelity VIP High Income
Nationwide Strategic Growth (Strong)
Fidelity VIP III Growth Opportunities
Fidelity VIP II Contrafund
The Dreyfus Stock Index Fund
Nationwide Small Cap Value (Dreyfus)
Fidelity VIP Overseas

                                       13<PAGE>   1

                                                                    EXHIBIT 10.2

                               RSA SECURITY, INC.

                             GRANTOR TRUST AGREEMENT

This Grantor Trust Agreement (the "Trust Agreement") is made this 13th day of
March, 2000 by and between RSA Security, Inc. ("the Company") and Wachovia Bank,
N.A. ("the Trustee").

                                    RECITALS

(a)      WHEREAS, the Company has adopted the plans and severance or other
         agreements (the "Arrangements") as listed in Attachment A;

(b)      WHEREAS, the Company has incurred or expects to incur liability under
         the terms of such Arrangements with respect to the individuals
         participating in such Arrangements (the "Participants and
         Beneficiaries");

(c)      WHEREAS, the Company wishes to establish a Trust (hereinafter referred
         to as the "Trust") and shall contribute to the Trust assets that shall
         be held therein, subject to the claims of the Company's creditors in
         the event of the Company's Insolvency, as herein defined, until paid to
         Participants and their Beneficiaries in such manner and at such times
         as specified in the Arrangements and in this Trust Agreement;

(d)      WHEREAS, it is the intention of the parties that this Trust shall
         constitute an unfunded arrangement and shall not affect the status of
         the Arrangements as an unfunded plan maintained for the purpose of
         providing deferred compensation for a select group of management or
         highly compensated employees for purposes of Title I of the Employee
         Retirement Income Security Act of 1974; and

(e)      WHEREAS, it is the intention of the Company to make contributions to
         the Trust to provide itself with a source of funds (the "Fund") to
         assist it in satisfying its liabilities under the Arrangements.

NOW, THEREFORE, the parties do hereby establish the Trust and agree that the
Trust shall be comprised, held and disposed of as follows:

SECTION 1.      ESTABLISHMENT OF THE TRUST

(a)      The Trust is intended to be a Grantor Trust, of which the Company and
         any subsidiaries which adopt the Trust is the Grantor, within the
         meaning

<PAGE>   2

         of subpart E, part I, subchapter J, chapter 1, subtitle A of the
         Internal Revenue Code of 1986, as amended, and shall be construed
         accordingly.

(b)      The Company shall be considered a Grantor for the purposes of the
         Trust.

(c)      The Trust hereby established is irrevocable by the Company.

(d)      The Company hereby deposits with the Trustee in the Trust one-thousand
         dollars and zero cents ($1,000.00) which shall become the principal of
         the Trust to be held, administered and disposed of by the Trustee as
         provided in this Trust Agreement.

(e)      The principal of the Trust, and any earnings thereon shall be held
         separate and apart from other funds of the Company and shall be used
         exclusively for the uses and purposes of Participants and general
         creditors as herein set forth. Participants and their Beneficiaries
         shall have no preferred claim on, or any beneficial ownership interest
         in, any assets of the Trust. Any rights created under the Arrangements
         and this Trust Agreement shall be unsecured contractual rights of
         Participants and their Beneficiaries against the Company. Any assets
         held by the Trust will be subject to the claims of the general
         creditors of the Company under federal and state law in the event the
         Company is Insolvent, as defined in Section 3(a) herein.

(f)      The Company, in its sole discretion, may at any time, or from time to
         time, make additional deposits of cash or other property acceptable to
         the Trustee in the Trust to augment the principal to be held,
         administered and disposed of by the Trustee as provided in this Trust
         Agreement. Prior to a Change in Control, neither the Trustee nor any
         Participant or Beneficiary shall have any right to compel additional
         deposits.

(g)      The Chief Executive Officer, the Chief Financial Officer, or the
         General Counsel of the Company shall notify the Trustee of an
         occurrence of a Potential Change in Control, and the Company shall, as
         soon as possible, but in no event longer than thirty (30) days
         following the occurrence of a Potential Change in Control, as defined
         herein, make a contribution to the Trust in an amount that is
         sufficient to fund the Trust in an amount equal to no less than 100%
         but no more than 120% of the amount necessary to pay each Participant
         or Beneficiary the benefits to which Participants or their
         Beneficiaries would be entitled pursuant to the terms of the
         Arrangements as of the date on which the Potential Change in Control
         occurred.

         Notwithstanding Section 1 (f), prior to a Change in Control, the
         Company, on or before June 1 of each year, shall make additional
         deposits of cash or other property in trust with the Trustee, to
         augment the

                                     Page 2
<PAGE>   3

         principal to be held, administered and disposed of by the Trustee
         as provided in this Trust Agreement, in an amount calculated to ensure
         that the value of assets in the Trust shall be equal to at least 80% of
         the present value, as of December 31 of the preceding year, of amounts
         accrued as of December 31 of such preceding year. For purposes of this
         Trust Agreement, "present value" shall be determined on the basis of
         the assumptions contained in the payment schedule(s) as described in
         Section 2 (c). If the Company fails to make the contribution required
         under this subsection within 30 days, a Potential Change in Control
         will be deemed to have occurred.

(h)      In the event a Change in Control does not occur following a Potential
         Change in Control, the Chief Executive Officer, the Chief Financial
         Officer, or the General Counsel shall notify the Trustee, and the
         Company shall have the right to recover any amounts contributed to and
         remaining on hand plus earnings on such amounts in the Trust pursuant
         to Section 1(g).

(i)      Upon a Change in Control, the Chief Executive Officer, the Chief
         Financial Officer, or the General Counsel of the Company shall notify
         the Trustee. Also,upon a Change in Control, the Company shall, as soon
         as possible, but in no event longer than thirty (30) days following the
         occurrence of a Change in Control, as defined herein, make an
         irrevocable contribution to the Trust in an amount that is sufficient
         to fund the Trust in an amount equal to no less than 100 % but no more
         than 120% of the amount necessary to pay each Participant or
         Beneficiary the benefits to which Participants or their Beneficiaries
         would be entitled pursuant to the terms of the Arrangements as of the
         date on which the Change in Control occurred. The Company shall also
         fund an expense reserve for the Trustee in the amount of $120,000.

SECTION 2.      PAYMENTS TO PARTICIPANTS AND THEIR BENEFICIARIES

(a)      Prior to a Change in Control, distributions from the Trust shall be
         made by the Trustee to Participants and Beneficiaries at the direction
         of the Company. The entitlement of a Participant or his or her
         Beneficiaries to benefits under the Arrangements shall be determined by
         the Company or such party or professional administrator as it shall
         designate under the Arrangements as the Company's agent, and any claim
         for such benefits shall be considered and reviewed under the procedures
         set out in the Arrangements.

(b)      The Company may make payment of benefits directly to Participants or
         their Beneficiaries as they become due under the terms of the

                                     Page 3
<PAGE>   4

         Arrangements. The Company shall notify the Trustee of its decision to
         make payment of benefits directly prior to the time amounts are payable
         to Participants or their Beneficiaries. In addition, if the principal
         of the Trust, and any earnings thereon, are not sufficient to make
         payments of benefits in accordance with the terms of the Arrangements,
         the Company shall make the balance of each such payment as it falls due
         in accordance with the Arrangements. The Trustee shall notify the
         Company where principal and earnings are not sufficient. Nothing in
         this Agreement shall relieve the Company of its liabilities to pay
         benefits due under the Arrangements except to the extent such
         liabilities are met by application of assets of the Trust.

(c)      After a Potential Change in Control and before a Change in Control, the
         Company shall deliver to the Trustee a schedule of benefits due under
         the Arrangements. Subsequent to a Change in Control, the Trustee shall
         pay benefits due in accordance with such schedule. After a Change in
         Control, the Company shall continue to make the determination of
         benefits due to Participants or their Beneficiaries and shall provide
         the Trustee with an updated schedule of benefits due; provided however,
         a Participant or their Beneficiaries may make application to the
         Trustee for an independent decision as to the amount or form of their
         benefits due under the Arrangements. In making any determination
         required or permitted to be made by the Trustee under this Section, the
         Trustee shall, in each such case, reach its own independent
         determination, in its absolute and sole discretion, as to the
         Participant's or Beneficiary's entitlement to a payment hereunder. In
         making its determination, the Trustee may consult with and make such
         inquiries of such persons, including the Participant or Beneficiary,
         the Company, legal counsel, actuaries or other persons, as the Trustee
         may reasonably deem necessary. Any reasonable costs incurred by the
         Trustee in arriving at its determination shall be reimbursed by the
         Company and, to the extent not paid by the Company within a reasonable
         time, shall be charged to the Trust. The Company waives any right to
         contest any amount paid over by the Trustee hereunder pursuant to a
         good faith determination made by the Trustee notwithstanding any claim
         by or on behalf of the Company (absent a manifest abuse of discretion
         by the Trustee) that such payments should not be made.

(d)      The Trustee agrees that it will not itself institute any action at law
         or at equity, whether in the nature of an accounting, interpleading
         action, request for a declaratory judgment or otherwise, requesting a
         court or administrative or quasi-judicial body to make the
         determination required to be made by the Trustee under this Section 2
         in the place

                                     Page 4
<PAGE>   5

         and stead of the Trustee. The Trustee may institute an action to
         collect a contribution due the Trust following a Change in Control or
         in the event that the Trust should ever experience a short-fall in the
         amount of assets necessary to make payments pursuant to the terms of
         the Arrangements.

(e)      In the event any Participant or his or her Beneficiary is determined to
         be subject to federal income tax on any amount to the credit of his or
         her account under any Arrangement prior to the time of payment
         hereunder, whether or not due to the establishment of or contributions
         to this Trust, a portion of such taxable amount equal to the federal,
         state and local taxes (excluding any interest or penalties) owed on
         such taxable amount, shall be distributed by the Trustee as soon
         thereafter as practicable to such Participant or Beneficiary. The
         Company shall promptly reimburse the Trust for any such distribution in
         an amount certified by the Trustee to be needed for the Participant's
         benefits. For these purposes, a Participant or Beneficiary shall be
         deemed to pay state and local taxes at the highest marginal rate of
         taxation in the state in which the Participant resides or is employed
         (or both) where a tax is imposed and federal income taxes at the
         highest marginal rate of taxation, net of the maximum reduction in
         federal income taxes which could be obtained from deduction of such
         state and local taxes. Such distributions shall be at the direction of
         the Company or the Trustee, or upon proper application of the
         Participant or Beneficiary; provided that the actual amount of the
         distribution shall be determined by the Company prior to a Change in
         Control and the Trustee following a Change in Control. An amount to the
         credit of a Participant's Account shall be determined to be subject to
         federal income tax upon the earliest of: (a) a final determination by
         the United States Internal Revenue Service addressed to the Participant
         or his Beneficiary which is not appealed to the courts; (b) a final
         determination by the United States Tax Court or any other federal court
         affirming any such determination by the Internal Revenue Service; or
         (c) an opinion by the Company's tax counsel, addressed to the Company
         and the Trustee, to the effect that by reason of Treasury Regulations,
         amendments to the Internal Revenue Code, published Internal Revenue
         Service rulings, court decisions or other substantial precedent,
         amounts to the credit of Participants hereunder are subject to federal
         income tax prior to payment. The Company shall undertake at its sole
         expense to defend any tax claims described herein which are asserted by
         the Internal Revenue Service against any Participant or Beneficiary,
         including attorney fees and cost of appeal, and shall have the sole
         authority to determine whether or not to appeal any determination made
         by the

                                     Page 5
<PAGE>   6

         Service or by a lower court. The Company also agrees to reimburse any
         Participant or Beneficiary for any interest or penalties in respect of
         tax claims hereunder upon receipt of documentation of same Any
         distributions from the Fund to a Participant or Beneficiary under this
         Section 2(e) shall be applied in accordance with the provisions of the
         Arrangement to reduce the Company liabilities to such Participant
         and/or Beneficiary under the Arrangement with such reductions to be
         made on a pro-rata basis over the term of benefit payments under the
         Arrangement; provided, however, that in no event shall any Participant,
         Beneficiary or estate of any Participant or Beneficiary have any
         obligation to return all or any part of such distribution to the
         Company if such distribution exceeds benefits payable under an
         Arrangement. Any reduction in accordance with the foregoing sentence
         and the Arrangements shall be determined by the Company prior to a
         Change in Control . Following a Change in Control, the Company shall
         continue to make such determination subject to the right of a
         Participant to petition the Trustee under Section 2(c).

SECTION 3.      TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO THE TRUST
                BENEFICIARY WHEN THE COMPANY IS INSOLVENT

(a)      The Trustee shall cease payment of benefits to Participants and their
         Beneficiaries if the Company is Insolvent. The Company shall be
         considered "Insolvent" for purposes of this Trust Agreement if (i) the
         Company is unable to pay its debts as they become due, or (ii) the
         Company is subject to a pending proceeding as a debtor under the United
         States Bankruptcy Code.

(b)      At all times during the continuance of this Trust, the principal and
         income of the Trust shall be subject to claims of general creditors of
         the Company under federal and state law as set forth below.

         (1)      The Board of Directors and the Chief Executive Officer of the
                  Company shall have the duty to inform the Trustee in writing
                  that the Company is Insolvent. If a person claiming to be a
                  creditor of the Company alleges in writing to the Trustee that
                  the Company has become Insolvent, the Trustee shall determine
                  whether the Company is Insolvent and, pending such
                  determination, the Trustee shall discontinue payment of
                  benefits to Participants or their Beneficiaries.

         (2)      Unless the Trustee has actual knowledge that the Company is
                  Insolvent, or has received notice from the

                                     Page 6
<PAGE>   7

                  Company or a person claiming to be a creditor alleging that
                  the Company is Insolvent, the Trustee shall have no duty to
                  inquire whether the Company is Insolvent. The Trustee may in
                  all events rely on such evidence concerning solvency as may be
                  furnished to the Trustee and that provides the Trustee with a
                  reasonable basis for making a determination concerning the
                  solvency of the Company.

         (3)      If at any time the Trustee has determined that the Company is
                  Insolvent, the Trustee shall discontinue payments to
                  Participants or their Beneficiaries and shall hold the assets
                  of the Trust for the benefit of the Company's general
                  creditors. Nothing in this Trust Agreement shall in any way
                  diminish any rights of Participants or their Beneficiaries to
                  pursue their rights as general creditors of the Company with
                  respect to benefits due under the Arrangements or otherwise.

         (4)      The Trustee shall resume the payment of benefits to
                  Participants or their Beneficiaries in accordance with Section
                  2 of this Trust Agreement only after the Trustee has
                  determined that the Company is not Insolvent (or is no longer
                  Insolvent).

(c)      Provided that there are sufficient assets, if the Trustee discontinues
         the payment of benefits from the Trust pursuant to Section 3(b) hereof
         and subsequently resumes such payments, the first payment following
         such discontinuance shall include the aggregate amount of all payments
         due to Participants or their Beneficiaries under the terms of the
         Arrangements for the period of such discontinuance plus earnings on
         such amount based on the average interest rate in effect for 30-day
         Treasury Bills over such period of discontinuance, less the aggregate
         amount of any payments made to Participants or their Beneficiaries by
         the Company in lieu of the payments provided for hereunder during any
         such period of discontinuance.

SECTION 4.      PAYMENTS WHEN A SHORT-FALL OF THE TRUST ASSETS OCCURS

(a)      If there are not sufficient assets for the payment of benefits pursuant
         to Section 2 or Section 3(c) hereof and the Company does not otherwise
         make such payments within a reasonable time after demand from

                                     Page 7
<PAGE>   8

         benefits the Trustee, the Trustee shall make payment of from the Trust
         to the Participants or their Beneficiaries on a pro rata basis.

(b)      Upon receipt of a contribution from the Company necessary to make up
         for a shortfall in the payments due, the Trustee shall resume payments
         to all the Participants and Beneficiaries under the Arrangements.
         Following a Change in Control, the Trustee shall have the right to
         compel a contribution to the Trust from the Company to make-up for any
         shortfall.

SECTION 5.      PAYMENTS TO THE COMPANY

Except as provided in Sections 3 hereof and Section 4 below, after the Trust has
become irrevocable, the Company shall have no right or power to direct the
Trustee to return to the Company or to divert to others any of the Trust assets
before all payment of all benefits have been made to Participants and their
Beneficiaries pursuant to the terms of the Arrangements and all fees and
expenses of the Trust have been paid.

In the event that the Company determines prior to a Change in Control that the
Trust Fund exceeds 125% of the anticipated benefit obligations and fees and
expenses that are to be paid under the Plan and Trust, the Trustee, shall , upon
the direction of the Company, distribute to the Company such excess portion of
the trust Fund.

SECTION 6.      INVESTMENT AUTHORITY

(a)      The Trustee shall not be liable in discharging its duties hereunder,
         including without limitation its duty to invest and reinvest the Fund,
         if it acts for the exclusive benefit of the Participants and their
         Beneficiaries, in good faith and as a prudent person would act in
         accomplishing a similar task and in accordance with the terms of this
         Trust Agreement and any applicable federal or state laws, rules or
         regulations.

(b)      Subject to investment guidelines agreed to in writing from time to time
         by the Company and the Trustee prior to a Change in Control, the
         Trustee shall have the power in investing and reinvesting the Fund in
         its sole discretion:

         (1)      To invest and reinvest in any readily marketable common and
                  preferred stocks, bonds, notes, debentures, certificates of
                  deposit or demand or time deposits (including any such
                  deposits with the Trustee) and shares of investment companies
                  and mutual funds, without being limited to the classes or

                                     Page 8
<PAGE>   9

                  property in which the Trustees are authorized to invest by any
                  law or any rule of court of any state and without regard to
                  the proportion any such property may bear to the entire amount
                  of the Fund;

         (2)      To commingle for investment purposes all or any portion of the
                  Fund with assets of any other similar trust or trusts
                  established by the Company with the Trustee for the purpose of
                  safeguarding deferred compensation or retirement income
                  benefits of its employees and/or directors;

         (3)      To retain any property at any time received by the Trustee;

         (4)      To sell or exchange any property held by it at public or
                  private sale, for cash or on credit, to grant and exercise
                  options for the purchase or exchange thereof, to exercise all
                  conversion or subscription rights pertaining to any such
                  property and to enter into any covenant or agreement to
                  purchase any property in the future;

         (5)      To participate in any plan of reorganization, consolidation,
                  merger, combination, liquidation or other similar plan
                  relating to property held by it and to consent to or oppose
                  any such plan or any action thereunder or any contract, lease,
                  mortgage, purchase, sale or other action by any person;

         (6)      To deposit any property held by it with any protective,
                  reorganization or similar committee, to delegate discretionary
                  power thereto, and to pay part of the expenses and
                  compensation thereof any assessments levied with respect to
                  any such property to deposit;

         (7)      To extend the time of payment of any obligation held by it;

         (8)      To hold uninvested any moneys received by it, without
                  liability for interest thereon, but only in anticipation of
                  payments due for investments, reinvestments, expenses or
                  disbursements;

         (9)      To exercise all voting or other rights with respect to any
                  property held by it and to grant proxies, discretionary or
                  otherwise;

                                     Page 9
<PAGE>   10

         (10)     For the purposes of the Trust, to borrow money from others, to
                  issue its promissory note or notes therefor, and to secure the
                  repayment thereof by pledging any property held by it;

         (11)     To employ suitable contractors and counsel, who may be counsel
                  to the Company or to the Trustee, and to pay their reasonable
                  expenses and compensation from the Fund to the extent not paid
                  by the Company;

         (12)     To register investments in its own name or in the name of a
                  nominee; to hold any investment in bearer form; and to combine
                  certificates representing securities with certificates of the
                  same issue held by it in other fiduciary capacities or to
                  deposit or to arrange for the deposit of such securities with
                  any depository, even though, when so deposited, such
                  securities may be held in the name of the nominee of such
                  depository with other securities deposited therewith by other
                  persons, or to deposit or to arrange for the deposit of any
                  securities issued or guaranteed by the United States
                  government, or any agency or instrumentality thereof,
                  including securities evidenced by book entries rather than by
                  certificates, with the United States Department of the
                  Treasury or a Federal Reserve Bank, even though, when so
                  deposited, such securities may not be held separate from
                  securities deposited therein by other persons; provided,
                  however, that no securities held in the Fund shall be
                  deposited with the United States Department of the Treasury or
                  a Federal Reserve Bank or other depository in the same account
                  as any individual property of the Trustee, and provided,
                  further, that the books and records of the Trustee shall at
                  all times show that all such securities are part of the Trust
                  Fund;

         (13)     To settle, compromise or submit to arbitration any claims,
                  debts or damages due or owing to or from the Trust,
                  respectively, to commence or defend suits or legal proceedings
                  to protect any interest of the Trust, and to represent the
                  Trust in all suits or legal proceedings in any court or before
                  any other body or tribunal; provided, however, that the
                  Trustee shall not be required to take any such action unless
                  it shall have been indemnified by the Company to its
                  reasonable satisfaction against liability or expenses it might
                  incur therefrom;

         (14)     To hold and retain policies of life insurance, annuity
                  contracts, and other property of any kind which policies are
                  contributed

                                    Page 10
<PAGE>   11

                  to the Trust by the Company or any subsidiary of the Company
                  or are purchased by the Trustee;

         (15)     To hold any other class of assets which may be contributed by
                  the Company and that is deemed reasonable by the Trustee,
                  unless expressly prohibited herein;

         (16)     To loan any securities at any time held by it to brokers or
                  dealers upon such security as may be deemed advisable, and
                  during the terms of any such loan to permit the loaned
                  securities to be transferred into the name of and voted by the
                  borrower or others; and

         (17)     Generally, to do all acts, whether or not expressly
                  authorized, that the Trustee may deem necessary or desirable
                  for the protection of the Fund.

(c)      Prior to a Change in Control, the Company shall have the right, subject
         to this Section to direct the Trustee with respect to investments.

         (1)      The Company may at any time direct the Trustee to segregate
                  all or a portion of the Fund in a separate investment account
                  or accounts and may appoint one or more investment managers
                  and/or an investment committee established by the Company to
                  direct the investment and reinvestment of each such investment
                  account or accounts. In such event, the Company shall notify
                  the Trustee of the appointment of each such investment manager
                  and/or investment committee. No such investment manager shall
                  be related, directly or indirectly, to the Company, but
                  members of the investment committee may be employees of the
                  Company.

         (2)      Thereafter, the Trustee shall make every sale or investment
                  with respect to such investment account as directed in writing
                  by the investment manager or investment committee. It shall be
                  the duty of the Trustee to act strictly in accordance with
                  each direction. The Trustee shall be under no duty to question
                  any such direction of the investment manager or investment
                  committee, to review any securities or other property held in
                  such investment account or accounts acquired by it pursuant to
                  such directions or to make any recommendations to the
                  investment managers or investment committee with respect to
                  such securities or other property.

                                    Page 11
<PAGE>   12

         (3)      Notwithstanding the foregoing, the Trustee, without obtaining
                  prior approval or direction from an investment manager or
                  investment committee, shall invest cash balances held by it
                  from time to time in short term cash equivalents including,
                  but not limited to, through the medium of any short term
                  common, collective or commingled trust fund established and
                  maintained by the Trustee subject to the instrument
                  establishing such trust fund, U.S. Treasury Bills, commercial
                  paper (including such forms of commercial paper as may be
                  available through the Trustee's Trust Department),
                  certificates of deposit (including certificates issued by the
                  Trustee in its separate corporate capacity), and similar type
                  securities, with a maturity not to exceed one year; and,
                  furthermore, sell such short term investments as may be
                  necessary to carry out the instructions of an investment
                  manager or investment committee regarding more permanent type
                  investment and directed distributions.

         (4)      The Trustee shall neither be liable nor responsible for any
                  loss resulting to the Fund by reason of any sale or purchase
                  of an investment directed by an investment manager or
                  investment committee nor by reason of the failure to take any
                  action with respect to any investment which was acquired
                  pursuant to any such direction in the absence of further
                  directions of such investment manager or investment committee.

         (5)      Notwithstanding anything in this Agreement to the contrary,
                  the Trustee shall be indemnified and saved harmless by the
                  Company from and against any and all personal liability to
                  which the Trustee may be subjected by carrying out any
                  directions of an investment manager or investment committee
                  issued pursuant hereto or for failure to act in the absence of
                  directions of the investment manager or investment committee
                  including all expenses reasonably incurred in its defense in
                  the event the Company fails to provide such defense; provided,
                  however, the Trustee shall not be so indemnified if it
                  participates knowingly in, or knowingly undertakes to conceal,
                  an act or omission of an investment manager or investment
                  committee, having actual knowledge that such act or omission
                  is a breach of a fiduciary duty; provided further, however,
                  that the Trustee shall not be deemed to have knowingly
                  participated in or knowingly undertaken to conceal an act or
                  omission of an investment manager or investment committee with
                  knowledge that such act or omission was a breach of fiduciary
                  duty by merely complying with directions of an investment
                  manager or

                                    Page 12
<PAGE>   13
                  investment committee or for failure to act in the absence of
                  directions of an investment manager or investment committee.
                  The Trustee may rely upon any order, certificate, notice,
                  direction or other documentary confirmation purporting to have
                  been issued by the investment manager or investment committee
                  which the Trustee believes to be genuine and to have been
                  issued by the investment manager or investment committee. The
                  Trustee shall not be charged with knowledge of the termination
                  of the appointment of any investment manager or investment
                  committee until it receives written notice thereof from the
                  Company.

(d)      Following a Change in Control, the Trustee shall have the sole and
         absolute discretion in the management of the Trust assets and shall
         have all the powers set forth under Section 6(b). In investing the
         Trust assets, the Trustee shall consider:

         (1)      the needs of the Arrangements;

         (2)      the need for matching of the Trust assets with the liabilities
                  of the Arrangements; and

         (3)      the duty of the Trustee to act solely in the best interests of
                  the Participants and their Beneficiaries.

(e)      The Trustee shall have the right, in its sole discretion, to delegate
         its investment responsibility to an investment manager who may be an
         affiliate of the Trustee. In the event the Trustee shall exercise this
         right, the Trustee shall remain, at all times responsible for the acts
         of an investment manager. The Trustee shall have the right to purchase
         an insurance policy or an annuity to fund the benefits of the
         Arrangements.

(f)      Prior to a Change in Control, the Company shall have the right at any
         time, and from time to time in its sole discretion, to substitute
         assets of equal fair market value for any asset held by the Trust. This
         right is exercisable by the Company in a nonfiduciary capacity without
         the approval or consent of any person in a fiduciary capacity.
         Following a Change in Control, the substitution of assets is subject to
         the acceptance of the Trustee.

SECTION 7.      INSURANCE CONTRACTS

                                    Page 13
<PAGE>   14

(a)      To the extent that the Trustee is directed by the Company prior to a
         Change in Control to invest part or all of the Trust Fund in insurance
         contracts, the type and amount thereof shall be specified by the
         Company. The Trustee shall be under no duty to make inquiry as to the
         propriety of the type or amount so specified.

(b)      Each insurance contract issued shall provide that the Trustee shall be
         the owner thereof with the power to exercise all rights, privileges,
         options and elections granted by or permitted under such contract or
         under the rules of the insurer. The exercise by the Trustee of any
         incidents of ownership under any contract shall, prior to a Change in
         Control, be subject to the direction of the Company. After a Change in
         Control, the Trustee shall have all such rights.

(c)      The Trustee shall have no power to name a beneficiary of the policy
         other than the Trust, to assign the policy (as distinct from conversion
         of the policy to a different form) other than to a successor Trustee,
         or to loan to any person the proceeds of any borrowing against an
         insurance policy held in the Trust Fund.

(d)      No insurer shall be deemed to be a party to the Trust and an insurer's
         obligations shall be measured and determined solely by the terms of
         contracts and other agreements executed by the insurer.

SECTION 8.      DISPOSITION OF INCOME

(a)      During the term of this Trust, all income received by the Trust, net of
         expenses and taxes shall be accumulated and reinvested within the Trust

SECTION 9.      ACCOUNTING BY THE TRUSTEE

The Trustee shall keep accurate and detailed records of all investments,
receipts, disbursements, and all other transactions required to be made,
including such specific records as shall be agreed upon in writing between the
Company and the Trustee within forty-five (45) days following the close of each
calendar year and within forty-five (45) days after the removal or resignation
of the Trustee. The Trustee shall deliver to the Company a written account of
its administration of the Trust during such year or during the period from the
close of the last preceding year to the date of such removal or resignation
setting forth all investments, receipts, disbursements and other transactions
effected by it, including a description of all securities and investments
purchased and sold with the cost or net proceeds of such purchases or sales
(accrued interest paid or receivable being shown separately), and showing all
cash, securities and other property held in the Trust at the end of such year or
as of the date of such removal or resignation, as

                                    Page 14
<PAGE>   15

the case may be. The Company may approve such account by an instrument in
writing delivered to the Trustee. In the absence of the Company's filing with
the Trustee objections to any such account within one hundred and eighty (180)
days after its receipt, the Company shall be deemed to have so approved such
account. In such case, or upon the written approval by the Company of any such
account, the Trustee shall, to the extent permitted by law, be discharged from
all liability to the Company for its acts or failures to act described by such
account. The foregoing, however, shall not preclude the Trustee from having its
accounting settled by a court of competent jurisdiction. The Trustee shall be
entitled to hold and to commingle the assets of the Trust in one Fund for
investment purposes but at the direction of the Company prior to a Change in
Control, the Trustee shall create one or more sub-accounts.

SECTION 10.     RESPONSIBILITY OF THE TRUSTEE

(a)      The Trustee shall act with the care, skill, prudence and diligence
         under the circumstances then prevailing that a prudent person acting in
         like capacity and familiar with such matters would use in the conduct
         of an enterprise of a like character and with like aims, provided,
         however, that the Trustee shall incur no liability to any person for
         any action taken pursuant to a direction, request or approval given by
         the Company which is contemplated by, and in conformity with, the terms
         of the Arrangements or this Trust and is given in writing by the
         Company. In the event of a dispute between the Company and a party, the
         Trustee may apply to a court of competent jurisdiction to resolve the
         dispute, subject, however to Section 2(d) hereof.

(b)      The Company hereby indemnifies the Trustee against losses, liabilities,
         claims, costs and expenses in connection with the administration of the
         Trust, unless resulting from the negligence or misconduct of Trustee.
         To the extent the Company fails to make any payment on account of an
         indemnity provided in this paragraph 10(b), in a reasonably timely
         manner, the Trustee may obtain payment from the Trust. If the Trustee
         undertakes or defends any litigation arising in connection with this
         Trust or to protect a Participant's or Beneficiary's rights under the
         Arrangements, the Company agrees to indemnify the Trustee against the
         Trustee's costs, reasonable expenses and liabilities (including,
         without limitation, attorneys' fees and expenses) relating thereto and
         to be primarily liable for such payments. If the Company does not pay
         such costs, expenses and liabilities in a reasonably timely manner, the
         Trustee may obtain payment from the Trust.

(c)      Prior to a Change in Control, the Trustee may consult with legal
         counsel (who may also be counsel for the Company generally) with
         respect to any

                                     Page 15
<PAGE>   16

         of its duties or obligations hereunder. Following a Change in Control
         the Trustee shall select independent legal counsel and may consult with
         counsel or other persons with respect to its duties and with respect to
         the rights of Participants or their Beneficiaries under the
         Arrangements.

(d)      The Trustee may hire agents, accountants, actuaries, investment
         advisors, financial consultants or other professionals to assist it in
         performing any of its duties or obligations hereunder and may rely on
         any determinations made by such agents and information provided to it
         by the Company.

(e)      The Trustee shall have, without exclusion, all powers conferred on the
         Trustee by applicable law, unless expressly provided otherwise herein.

(f)      Notwithstanding any powers granted to the Trustee pursuant to this
         Trust Agreement or to applicable law, the Trustee shall not have any
         power that could give this Trust the objective of carrying on a
         business and dividing the gains therefrom, within the meaning of
         section 301.7701-2 of the Procedure and Administrative Regulations
         promulgated pursuant to the Internal Revenue Code.

SECTION 11.     COMPENSATION AND EXPENSES OF THE TRUSTEE

The Trustee's compensation shall be as agreed in writing from time to time by
the Company and the Trustee. The Company shall pay all administrative expenses
and the Trustee's fees and shall promptly reimburse the Trustee for any fees and
expenses of its agents. If not so paid, the fees and expenses shall be paid from
the Trust.

                                    Page 16
<PAGE>   17

SECTION 12.     RESIGNATION AND REMOVAL OF THE TRUSTEE

(a)      Prior to a Change in Control, the Trustee may resign at any time by
         written notice to the Company, which shall be effective sixty (60) days
         after receipt of such notice unless the Company and the Trustee agree
         otherwise. Following a Change in Control, the Trustee may resign only
         after the appointment of a successor Trustee.

(b)      The Trustee may be removed by the Company on sixty days (60) days
         notice or upon shorter notice accepted by the Trustee prior to a Change
         in Control. Subsequent to a Change in Control, the Trustee may only be
         removed by the Company with the consent of a majority of the
         Participants, both in number and account balances.

(c)      If the Trustee resigns within two years after a Change in Control, as
         defined herein, the Company with the consent of a majority both in
         number and account balances of the Participants may appoint a successor
         trustee. If the Company fails to act within a reasonable period of time
         following such resignation, the Trustee shall apply to a court of
         competent jurisdiction for the appointment of a successor Trustee or
         for instructions.

(d)      Upon resignation or removal of the Trustee and appointment of a
         successor Trustee, all assets shall subsequently be transferred to the
         successor Trustee. The transfer shall be completed within sixty (60)
         days after receipt of notice of resignation, removal or transfer,
         unless the Company extends the time limit.

(e)      If the Trustee resigns or is removed, a successor shall be appointed by
         the Company, in accordance with Section 13 hereof, by the effective
         date of resignation or removal under paragraph(s) (a) or (b) of this
         section. If no such appointment has been made, the Trustee may apply to
         a court of competent jurisdiction for appointment of a successor or for
         instructions. All expenses of the Trustee in connection with the
         proceeding shall be allowed as administrative expenses of the Trust.

SECTION 13.     APPOINTMENT OF SUCCESSOR

(a)      If the Trustee resigns or is removed in accordance with Section 12
         hereof, the Company may appoint, subject to Section 12, any third party
         national banking association with a market capitalization exceeding
         $100,000,000 to replace the Trustee upon resignation or removal. The
         successor Trustee shall have all of the rights and powers of the former
         Trustee, including ownership rights in the Trust. The former Trustee
         shall execute

                                    Page 17

<PAGE>   18

         any instrument necessary or reasonably requested by the Company or the
         successor Trustee to evidence the transfer.

(b)      The successor Trustee need not examine the records and acts of any
         prior Trustee and may retain or dispose of existing Trust assets,
         subject to Section 8 and 9 hereof. The successor Trustee shall not be
         responsible for and the Company shall indemnify and defend the
         successor Trustee from any claim or liability resulting from any action
         or inaction of any prior Trustee or from any other past event, or any
         condition existing at the time it becomes successor Trustee.

SECTION 14.     AMENDMENT OR TERMINATION

(a)      This Trust Agreement may be amended by a written instrument executed by
         the Trustee and the Company. Notwithstanding the foregoing, no such
         amendment shall conflict with the terms of the Arrangements or shall
         make the Trust revocable after it has become irrevocable in accordance
         with Section 1 hereof.

(b)      The Trust shall not terminate until the date on which Participants and
         their Beneficiaries have received all of the benefits due to them under
         the terms and conditions of the Arrangements.

(c)      Upon written approval of all Participants or Beneficiaries entitled to
         payment of benefits pursuant to the terms of the Arrangements, the
         Company may terminate this Trust prior to the time all benefit payments
         under the Arrangements have been made. After payment of all fees and
         expenses of the Trust, any remaining assets in the Trust at termination
         shall be returned to the Company.

(d)      This Trust Agreement may not be amended by the Company for two (2)
         years following a Change in Control without the written consent of a
         majority of the Participants, except when necessary to comply with
         legal or regulatory requirements necessary to maintain the tax deferred
         status of the Arrangements.

SECTION 15.     CHANGE IN CONTROL

(a)      For purposes of this Trust, the following terms shall be defined as set
         forth below:

         (1)    "Potential Change in Control" shall mean, as determined by the
Company in its discretion, any pending offer for the Company's outstanding
shares of common stock, or any pending offer to acquire the Company by merger or

                                     Page 18

<PAGE>   19

consolidation, or any other pending action or plan to effect a Change in Control
of the Company.

         (2)    Change in Control shall mean:

(A)      the acquisition by an individual, entity or group (within the meaning
         of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of
         beneficial ownership of any capital stock of the Company if, after such
         acquisition, such Person beneficially owns (within the meaning of Rule
         13d-3 promulgated under the Exchange Act) 50% or more of either (x) the
         then-outstanding shares of common stock of the Company (the
         "Outstanding Company Common Stock") or - (y) the combined voting power
         of the then-outstanding securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company Voting
         Securities"); provided, however, that for purposes of this subsection
         (i), the following acquisitions shall not constitute a Change in
         Control Event: (A) any acquisition directly from the Company (excluding
         an acquisition pursuant to the exercise, conversion or exchange of any
         security exercisable for, convertible into or exchangeable for common
         stock or voting securities of the Company, unless the Person
         exercising, converting or exchanging such security acquired such
         security directly from the Company or an underwriter or agent of the
         Company), (B) any acquisition by any employee benefit plan (or related
         trust) sponsored or maintained by the Company or any corporation
         controlled by the Company, or (C) any acquisition by any corporation
         pursuant to a Business Combination (as defined below) which complies
         with clauses (x) and (y) of subsection (C) of this definition; or

(B)      such time as the Continuing Directors (as defined below) do not
         constitute a majority of the Board (or, if applicable, the Board of
         Directors of a successor corporation to the Company), where the term
         "Continuing Director" means at any date a member of the Board (x) who
         was a member of the Board on the date of the initial adoption of this
         Plan by the Board or (y) who was nominated or elected subsequent to
         such date by at least a majority of the directors who were Continuing
         Directors at the time of such nomination or election or whose election
         to the Board was recommended or endorsed by at least a majority of the
         directors who were Continuing Directors at the time of such nomination
         or election; provided, however, that there shall be excluded from this
         clause (y) any individual whose initial assumption of office occurred
         as a result of an actual or threatened election contest with respect to
         the election or removal of directors or other actual or threatened
         solicitation of proxies or consents, by or on behalf of a person other
         than the Board; or

                                    Page 19
<PAGE>   20

(C)      the consummation of a merger, consolidation, reorganization,
         recapitalization or statutory share exchange involving the Company or a
         sale or other disposition of all or substantially all of the assets of
         the Company (a "Business Combination"), unless, immediately following
         such Business Combination, each of the following two conditions is
         satisfied: (x) all or substantially all of the individuals and entities
         who were the beneficial owners of the Outstanding Company Common Stock
         and Outstanding Company Voting Securities immediately prior to such
         Business Combination beneficially own, directly or indirectly, more
         than 50% of the then-outstanding shares of common stock and the
         combined voting power of the then-outstanding securities entitled to
         vote generally in the election of directors, respectively, of the
         resulting or acquiring corporation in such Business Combination (which
         shall include, without limitation, a corporation which as a result of
         such transaction owns the Company or substantially all of the Company's
         assets either directly or through one or more subsidiaries) (such
         resulting or acquiring corporation is referred to herein as the
         "Acquiring Corporation") in substantially the same proportions as their
         ownership of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities, respectively, immediately prior to such
         Business Combination and (y) no Person (excluding the Acquiring
         Corporation or any employee benefit plan (or related trust) maintained
         or sponsored by the Company or by the Acquiring Corporation)
         beneficially owns, directly or indirectly, 50% or more of the
         then-outstanding shares of common stock of the Acquiring Corporation,
         or of the combined voting power of the then-outstanding securities of
         such corporation entitled to vote generally in the election of
         directors (except to the extent that such ownership existed prior to
         the Business Combination).

For purposes of the Section 15, Board approval shall be considered the same as
"shareholder or shareowner" approval as may be required under federal or state
law.

SECTION 16.     MISCELLANEOUS

(a)      Any provision of this Trust Agreement prohibited by law shall be
         ineffective to the extent of any such prohibition, without invalidating
         the remaining provisions hereof.

(b)      The Company hereby represents and warrants that all of the Arrangements
         have been established, maintained and administered in accordance with
         all applicable laws, including without limitation, ERISA. The Company
         hereby indemnifies and agrees to hold the Trustee harmless from all
         liabilities, including attorney's fees, relating to or arising out of
         the

                                    Page 20
<PAGE>   21

         establishment, maintenance and administration of the Arrangements.
         To the extent the Company does not pay any of such liabilities in a
         reasonably timely manner, the Trustee may obtain payment from the
         Trust.

(b)      Benefits payable to Participants and their Beneficiaries under this
         Trust Agreement may not be anticipated, assigned (either at law or in
         equity), alienated, pledged, encumbered or subjected to attachment,
         garnishment, levy, execution or other legal or equitable process.

(d)      This Trust Agreement shall be governed by and construed in accordance
         with the laws of Massachusetts.

IN WITNESS WHEREOF, this Grantor Trust Agreement has been executed on behalf of
the parties hereto on the day and year first above written.

RSA SECURITY, INC.                               TRUSTEE

By:  /S/ JOHN F. KENNEDY                         By:  /S/ BEVERLY H. WOOD
     -----------------------------                    --------------------------

Its:  CHIEF FINANCIAL OFFICER                    Its:  SENIOR VICE PRESIDENT

ATTEST:                                          ATTEST:

By:  /S/ KATHRYN L. LEACH                        By:  /S/ JOHN N. SMITH, III
     -----------------------------                    --------------------------

Its:  ASSISTANT SECRETARY                        Its:  ASSISTANT SECRETARY

                                    Page 21

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