Document:

<PAGE>   1
                                                                   Exhibit 10(m)

                  THE DIAL CORPORATION AMENDED AND RESTATED
                    MANAGEMENT DEFERRED COMPENSATION PLAN

             (As Amended and Restated Effective January 1, 1999)
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                               TABLE OF CONTENTS

<TABLE>
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                                                                        PAGE

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ARTICLE 1 Purpose ...............................................        1

ARTICLE 2 Definitions ...........................................        1

ARTICLE 3 Deferral Elections of Base Salary and Incentive Awards.        6

 3.1 DEFERRAL ELECTION ..........................................        6
 3.2 TIMING OF DEFERRAL ELECTIONS ...............................        6
 3.3 IRREVOCABILITY .............................................        6
 3.4 CESSATION OF DEFERRAL ELECTIONS ............................        7
 3.5 RETURN TO WORK FOLLOWING DISABILITY OR LEAVE OF ABSENCE ....        7
 3.6 INITIAL PLAN YEAR ..........................................        7

ARTICLE 4 Treatment of Deferral Amounts .........................        7

 4.1 MEMORANDUM ACCOUNTS ........................................        7
 4.2 RULES APPLICABLE TO POST-1998 DEFERRAL AMOUNTS ONLY ........        7
 4.3 RULES APPLICABLE TO 1998 DEFERRAL AMOUNTS ONLY .............        7
 4.4 RULES APPLICABLE TO PRIOR ACCOUNTS ONLY ....................        9
 4.5 STOCK UNIT DIVIDEND EQUIVALENT RIGHTS ......................        9
 4.6 REPORTS ....................................................       10

ARTICLE 5 Management Stock Unit Purchase Program ................       10

 5.1 PURPOSE ....................................................       10
 5.2 RULES APPLICABLE TO POST-1998 DEFERRAL AMOUNTS .............       10
 5.3 RULES APPLICABLE TO 1998 DEFERRAL AMOUNTS ..................       11
 5.4 RULES GENERALLY APPLICABLE TO STOCK UNIT AMOUNTS ...........       11

ARTICLE 6 Payment of Account Balances ...........................       12

 6.1 FORMS OF PAYMENT OF POST-1998 DEFERRAL AMOUNTS .............       12
 6.2 FORMS OF PAYMENT OF 1998 DEFERRAL AMOUNTS ..................       12
 6.3 PAYMENT METHOD ELECTIONS ...................................       12
 6.4 EXCEPTION TO TERMINATION PAYMENT METHOD ....................       13
 6.5 EXCEPTION FOR DISABILITY OF PARTICIPANT ....................       13
 6.6 EXCEPTION FOR DEATH OF PARTICIPANT .........................       13
 6.7 EXCEPTION FOR UNFORESEEABLE FINANCIAL EMERGENCY ............       14
 6.8 EXCEPTION FOR SECTION 162(m) OF THE CODE ...................       14
 6.9 EXCEPTION FOR SECTION 16 OF THE EXCHANGE ACT ...............       14
 6.10 SHORT TERM PAYOUT .........................................       14
 6.11 WITHDRAWAL ELECTION .......................................       15
</TABLE>

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<TABLE>
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  6.12 EFFECT OF SECTION 280G OF THE CODE ........................       15
  6.13 TIMING OF PAYMENTS ........................................       15
  6.14 VALUATION OF ACCOUNT BALANCES .............................       16
  6.15 PRORATION OF PAYMENTS .....................................       16

ARTICLE 7 Administration .........................................       16

  7.1 PLAN ADMINISTRATOR .........................................       16
  7.2 DELEGATION TO MANAGEMENT COMMITTEE .........................       16
  7.3 GENERAL POWERS AND RESPONSIBILITIES OF PLAN ADMINISTRATOR ..       16
  7.4 ACTION OF PLAN ADMINISTRATOR ...............................       17
  7.5 LIABILITY ..................................................       17
  7.6 INDEMNIFICATION OF PLAN ADMINISTRATOR ......................       17
  7.7 ADMINISTRATION UPON CHANGE IN CONTROL ......................       17
  7.8 EMPLOYER INFORMATION .......................................       18

ARTICLE 8 Beneficiary Designation ................................       18

  8.1 BENEFICIARY ................................................       18
  8.2 CHANGE OF BENEFICIARY; SPOUSAL CONSENT .....................       18
  8.3 ACKNOWLEDGMENT .............................................       18
  8.4 NO BENEFICIARY DESIGNATION .................................       18
  8.5 DOUBT AS TO BENEFICIARY ....................................       18

ARTICLE 9 Amendment and Termination of the Plan ..................       19

  9.1 TERMINATION OF THE PLAN ....................................       19
  9.2 AMENDMENT OF THE PLAN ......................................       19
  9.3 EFFECT OF PAYMENT ..........................................       20

ARTICLE 10 Claims Procedures .....................................       20

 10.1 PRESENTATION OF CLAIM ......................................       20
 10.2 NOTIFICATION OF DECISION ...................................       20
 10.3 REVIEW OF A DENIED CLAIM ...................................       20
 10.4 DECISION ON REVIEW .........................................       20
 10.5 LEGAL ACTION ...............................................       21

ARTICLE 11 Funding ...............................................       21

 11.1 ESTABLISHMENT OF THE TRUST .................................       21
 11.2 INTERRELATIONSHIP OF THE PLAN AND THE TRUST ................       21
 11.3 DISTRIBUTIONS FROM THE TRUST ...............................       21

ARTICLE 12 Miscellaneous .........................................       21
</TABLE>

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<TABLE>
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12.1 STATUS OF PLAN ........................................       21
12.2 UNSECURED GENERAL CREDITOR ............................       21
12.3 ASSETS ................................................       22
12.4 COMPANY LIABILITY .....................................       22
12.5 NONASSIGNABILITY ......................................       22
12.6 NOT A CONTRACT OF EMPLOYMENT ..........................       22
12.7 FURNISHING INFORMATION ................................       22
12.8 TERMS .................................................       22
12.9 CAPTIONS ..............................................       22
12.10 GOVERNING LAW ........................................       23
12.11 NOTICE ...............................................       23
12.12 SUCCESSORS ...........................................       23
12.13 SPOUSE'S INTEREST ....................................       23
12.14 REFORMATION AND SEVERABILITY .........................       23
12.15 INCOMPETENCE .........................................       23
12.16 COURT ORDER ..........................................       24
12.17 DISTRIBUTION IN THE EVENT OF TAXATION ................       24
12.18 TAXES ................................................       24
12.19 INSURANCE ............................................       24
12.20 MAXIMUM NUMBER OF SHARES OF COMMON STOCK AUTHORIZED ..       25
12.20 LITIGATION TO ENFORCE RIGHTS AFTER CHANGE IN CONTROL .       25
12.21 EFFECT OF THE PLAN ...................................       25
</TABLE>

                                     -III-
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                  THE DIAL CORPORATION AMENDED AND RESTATED
                    MANAGEMENT DEFERRED COMPENSATION PLAN

             (As Amended and Restated Effective January 1, 1999)

                                    ARTICLE 1
                                     PURPOSE

      The purpose of this Amended and Restated Management Deferred Compensation
Plan is to provide a select group of key management employees of The Dial
Corporation and designated subsidiaries and affiliates the opportunity to defer
receipt of Base Salary and Incentive Awards to which they are entitled while the
Plan is in effect. The Plan is intended to be an unfunded nonqualified deferred
compensation plan maintained for "a select group of management or highly
compensated employees," as that phrase is used in Title I of ERISA, and shall be
construed and administered accordingly.

                                    ARTICLE 2

                                  DEFINITIONS

      For purposes of the Plan, the following terms shall have the following
meanings:

      "1998 DEFERRAL AMOUNTS: shall mean the portion of a Participant's Cash
Account and Stock Unit Account which are allocable to his or her Deferral Amount
deferred in the 1998 Plan Year.

      "ACCOUNT BALANCES" shall mean the sum of the balances of a Participant's
Cash Account, Stock Unit Account and Prior Account.

      "ALLOCATION DATE" shall mean the date on which all or a portion of a
Participant's Deferral Amount is credited to his or her Cash Account or Stock
Unit Account, which shall be the date on which such Deferral Amount (or portion
thereof) would have been paid to the Participant if the Participant had not made
a Deferral Election; provided, however, that, if such date is not a business
day, the Allocation Date shall be the immediately preceding business day.

      "ANNUAL INSTALLMENT" shall mean any installment payment required to be
paid to a Participant, the amount of each of which shall be determined by
multiplying each Account Balance as of the Valuation Date immediately preceding
the date of the Annual Installment by a fraction, the numerator of which shall
be one (1) and the denominator of which shall be the number of Annual
Installments remaining to be paid to the Participant.

<PAGE>   6
      "BASE SALARY" shall mean a Participant's regular base salary for a Plan
Year (excluding Incentive Awards or other incentive compensation) payable by an
Employer to a Participant, before reduction pursuant to the Plan or any other
plan or arrangement of the Employer.

      "BASIC STOCK UNITS" shall have the meaning set forth in Section 5.4(b) of
Article 5.

      "BENEFICIARY" shall mean the person or persons designated by a Participant
in accordance with Article 8 to receive payments under the Plan following the
death of the Participant.

      "BOARD" shall mean the Board of Directors of the Company.

      "CASH ACCOUNT" shall mean a memorandum account established on the books of
the Company on behalf of a Participant, into which shall be credited an amount
of cash pursuant to Article 4, in accordance with the Participant's Deferral
Elections.

      "CAUSE" shall mean (i) the conviction of a Participant for committing a
felony under federal law or the law of the state in which such action occurred,
(ii) material dishonesty in the course of fulfilling a Participant's employment
duties; (iii) willful and deliberate failure on the part of a Participant to
perform his employment duties in any material respect or (iv) such other events
as shall be determined by the Plan Administrator.

      "CHANGE IN CAPITALIZATION" shall have the meaning set forth in Section
4.5(iv) of Article 4.

      "CHANGE IN CONTROL" shall have the meaning set forth in Appendix A.

      "CHANGE IN CONTROL PAYMENT METHOD" shall mean the manner in which a
Participant's Account Balances are paid to a Participant following a Change in
Control in accordance with the Participant's election, such manner to be either
(i) a lump sum upon a Change in Control or (ii) a lump sum upon termination for
any reason following a Change in Control; provided, that, if a Participant does
not elect a Change in Control Payment Method, the Participant's other Payment
Methods shall remain in effect following a Change in Control.

      "CLAIMANT" shall have the meaning set forth in Section 10.1 of Article 10.

      "CODE" shall mean the Internal Revenue Code of 1986, as amended.

      "COMMITTEE" shall mean the Executive Compensation Committee of the
Company; provided, that if the Committee shall cease to be composed of at least
two "Non-Employee Directors" as defined in Rule 16b-3(b) of the Exchange Act,
"Committee" shall mean two individuals, each of whom is a "Non-Employee
Director."

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      "COMMON STOCK" shall mean the common stock, par value $.01 per share, of
the Company.

      "COMPANY" shall mean The Dial Corporation, a Delaware corporation, and any
successor thereto.

      "CONVERSION NOTICE" shall have the meaning set forth in Section 4.3(e) of
Article 4.

      "DEFERRAL AMOUNT" shall mean a specified percentage or specified dollar
amount of Base Salary or Incentive Awards elected by a Participant to be
deferred in a Plan Year.

      "DEFERRAL ELECTION" shall mean a Participant's timely election of a
Deferral Amount pursuant to Article 3.

      "DEFERRAL ELECTION FORM" shall mean the form that a Participant must
submit to the Plan Administrator documenting his or her Deferral Election.

      "DEFERRED COMPENSATION ACCOUNTS" shall mean a Participant's Cash Account,
Stock Unit Account, and Prior Account.

      "DISABILITY" shall mean a condition as a result of which a Participant
qualifies for permanent disability benefits under the Company's long-term
disability plan (or would qualify for such benefits, if the Participant is not a
participant in such plan) as determined by the Plan Administrator.

      The "DISCOUNT" applicable to the conversion of cash to Stock Units on an
Allocation Date shall be a percentage of the Fair Market Value of a share of
Common Stock on such Allocation Date, as determined the sole discretion of the
Committee.

      "ELIGIBLE EMPLOYEE" shall mean an employee of an Employer in a management
position who is designated from time to time by the Plan Administrator to be
eligible for participation in the Plan; provided, however, that no such employee
shall be eligible to participate in the Plan in a Plan Year if the Plan
Administrator shall determine that the employee could acquire under the Plan
more than 1,000,000 share of Common Stock.

      "EMPLOYER" shall mean the Company and any subsidiary or affiliate of the
Company which is an employer of one or more employees who are Participants in
the Plan.

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

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      "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as amended.

      "FAIR MARKET VALUE" on any date shall mean the mean between the highest
and lowest reported sales prices of the Common Stock on the New York Stock
Exchange Composite Tape or, if not listed on such exchange, on any other
national exchange on which the Common Stock is listed or on the NASDAQ National
Market System or on NASDAQ or, if there is no regular public trading market for
the Common Stock, as determined by the Committee in good faith.

      "INCENTIVE AWARD" shall mean an award to a Participant pursuant to the
Company's Annual Incentive Plan or Sales Incentive Plan.

      "INVESTMENT CHOICES" shall mean the reference investment vehicles made
available by the Plan Administrator from time to time in which Participants'
Deferral Amounts will be deemed to be invested pursuant to Section 4.3(c) of
Article 4.

      "LEAVE OF ABSENCE" shall mean a paid or unpaid break in the service of a
Participant as an employee of his or her Employer with the approval of the Plan
Administrator.

      "MANAGEMENT STOCK UNIT PURCHASE PROGRAM" shall mean the program by which
Deferral Amounts are credited as Stock Units to a Stock Unit Account maintained
for the benefit of a Participant, as set forth in Article 5.

      "MATCHING STOCK UNITS" shall have the meaning set forth in Section 5.4(b)
of Article 5.

      "PARTICIPANT" shall mean any Eligible Employee who makes a Deferral
Election pursuant to Section 3.1 of Article 3 and for whom one or more Deferred
Compensation Accounts are maintained under the Plan.

      "PAYMENT METHOD" shall mean any of a Participant's Change in Control
Payment Method, Retirement Payment Method, Survivor Payment Method and
Termination Payment Method.

      "PLAN" shall mean The Dial Corporation Amended and Restated Management
Deferred Compensation Plan (As Amended and Restated Effective January 1, 1999),
as such Plan may be amended from time to time.

      "PLAN ADMINISTRATOR" shall mean the Committee or such committee to which
the Committee delegates its powers and duties under the Plan, as set forth in
Section 7.2 of Article 7, or, upon and following a Change in Control, one or
more persons selected pursuant to Section 7.7 of Article 7.

      "PLAN YEAR" shall mean the calendar year.

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      "POST-1998 DEFERRAL AMOUNTS" shall mean the portion of a Participant's
Stock Unit Account which is allocable to his or her Deferral Amounts deferred in
the 1999 Plan Year and thereafter.

      "PRIOR ACCOUNT" shall mean the amounts in a Participant's deferred
compensation accounts (under the terms of The Dial Corporation Deferred
Compensation Plan) as of December 31, 1997.

      "RETIREMENT" shall mean termination of employment of a Participant upon or
following the date on which (i) the Participant's age is at least fifty-five
(55) and (ii) the Participant has completed at least ten (10) Years of Service;
provided, however, that "Retirement" shall not include termination upon or
following such date for Cause or as a result of death or Disability.

      "RETIREMENT PAYMENT METHOD" shall mean the manner in which a Participant's
Account Balances are paid to the Participant upon Retirement in accordance with
the Participant's election, such manner to be either (i) a lump sum payment or
(ii) five (5), ten (10) or fifteen (15) Annual Installments.

      "SHORT-TERM PAYOUT" shall have the meaning set forth in Section 6.10 of
Article 6.

      "STOCK UNIT ACCOUNT" shall mean a memorandum account established on the
books of the Company on behalf of a Participant, into which shall be credited a
number of Stock Units pursuant to Sections 4.2(a) of Article 4.3(a) of Article 4
and 5.4(a) of Article 5, in accordance with the Participant's Deferral
Elections, or pursuant to Section 4.3(e) of Article 4, in accordance with the
Participant's Conversion Notices.

      "STOCK UNITS" shall mean units credited to a Participant's Stock Unit
Account as Matching Stock Units or Basic Stock Units, with one Stock Unit having
a value on a date equal to the Fair Market Value of one share of Common Stock on
such date.

      "SURVIVOR PAYMENT METHOD" shall mean the manner in which a Participant's
Account Balances are paid to the Beneficiary of the Participant upon the
Participant's death prior to Retirement in accordance with the Participant's
election, such manner to be either (i) a lump sum or (ii) five (5), ten (10) or
fifteen (15) Annual Installments.

          "TERMINATION" shall mean termination of employment of a Participant,
other than (i) for Cause or (ii) upon his or her Retirement or death.

          "TERMINATION PAYMENT METHOD" shall mean the manner in which a
Participant's Account Balances are paid to the Participant upon Termination in
accordance with the Participant's election, such manner to be either (i) a lump
sum payment or (ii) two (2) or three (3) Annual Installments.

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      "TRUST" shall mean the trust established pursuant to Article 11.

      "UNFORESEEABLE FINANCIAL EMERGENCY" shall mean an unanticipated emergency
which is (i) a sudden and unexpected illness or accident of the Participant or a
dependent of the Participant (with "dependent" defined for purposes of the Plan
as in Section 152(a) of the Code), (ii) a loss of the Participant's property due
to casualty or (iii) such other extraordinary circumstances deemed to be an
Unforeseeable Financial Emergency, in each case caused by an event beyond the
control of the Participant and imposing severe financial hardship to the
Participant.

      "VALUATION DATE" shall mean the last day of each calendar month; provided,
however, that, if such date is not a business day, the Valuation Date shall be
the immediately preceding business day.

      "YEAR OF SERVICE" shall mean each complete 365-day period during which an
employee is an employee of any Employer, such period to commence on the
employee's initial date of hire and each anniversary of his or her date of hire;
provided, that the calculation of the Years of Service of an employee with
breaks in service as a result of a Disability or a Leave of Absence shall be as
determined by the Plan Administrator.

                                    ARTICLE 3
             DEFERRAL ELECTIONS OF BASE SALARY AND INCENTIVE AWARDS

      3.1 DEFERRAL ELECTION. Each Eligible Employee may elect to have the
payment of a specified percentage or specified dollar amount of Base Salary or
one or more Incentive Awards deferred in each Plan Year pursuant to the Plan;
provided, however, that the Plan Administrator shall establish minimum and
maximum Deferral Amounts in respect of each Plan Year and may in its discretion
establish other limits on Deferral Amounts as it deems appropriate. Each
Deferral Election shall be timely made on a Deferral Election Form to be
provided by the Plan Administrator and shall specify the Deferral Amount. Upon
the acknowledgment of a Deferral Election Form by the Plan Administrator, such
Eligible Employee shall become a Participant in the Plan for such Plan Year.

      3.2 TIMING OF DEFERRAL ELECTIONS. Deferral Elections in respect of Base
Salary otherwise payable to Participants in a Plan Year shall be timely if made
on or before December 15 of the preceding year. Deferral Elections in respect of
Incentive Awards otherwise payable to Participants in a Plan Year shall be
timely: (i) for awards pursuant to the Company's Annual Incentive Plan, if made
on or before September 30 of the preceding year; and (ii) for awards pursuant to
the Company's Sales Incentive Plan, if made at least six (6) months prior to the
Allocation Date of such awards.

      3.3 IRREVOCABILITY. Except as provided in Section 3.4 of this Article 3, a
Deferral Election, once made, shall be irrevocable.

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         3.4 CESSATION OF DEFERRAL ELECTIONS. The Deferral Election of a
Participant shall be of no further force and effect (i) upon the Participant's
death, (ii) in the discretion of the Plan Administrator, if a Participant is
suffering from a Disability, (iii) in the discretion of the Plan Administrator,
during a Participant's Leave of Absence; provided, however, that the Plan
Administrator may permit the Deferral Election of a Participant who is on a paid
Leave of Absence to remain in effect during the Leave of Absence, or (iv) upon
withdrawal of a Participant from the Plan pursuant to Section 6.11 of Article 6.

         3.5 RETURN TO WORK FOLLOWING DISABILITY OR LEAVE OF ABSENCE. If a
Participant returns to employment upon cessation of Disability, or following a
Leave of Absence, in either case during which the Participant's Deferral
Election was of no force and effect pursuant to Section 3.4 of this Article 3,
(i) the Plan Administrator may give effect to the Participant's unexpired
Deferral Election and (ii) the Participant may, with the consent of the Plan
Administrator, make Deferral Elections in respect of future Plan Years.

         3.6 INITIAL PLAN YEAR. The initial Plan Year of the Plan shall commence
on January 1, 1998.

                                   ARTICLE 4

                         TREATMENT OF DEFERRAL AMOUNTS

         4.1 MEMORANDUM ACCOUNTS. The Company shall establish on its books for
each Participant in the Plan, as necessary, a Cash Account, a Stock Unit Account
and a Prior Account.

         4.2 RULES APPLICABLE TO POST-1998 DEFERRAL AMOUNTS ONLY

         (a) CREDITING OF MEMORANDUM ACCOUNTS. On each Allocation Date during
the 1999 Plan Year and thereafter, an amount of cash reflecting the portion of a
Participant's Deferral Amount which would otherwise have been paid to the
Participant on such Allocation Date shall be converted to Stock Unites and
credited to the Participant's Stock Unit Account, in accordance with the terms
and conditions of Article 5.

         (b) VESTING. A Participant shall be vested in the Account Balance of
his or her Stock Unit Account as provided in Section 5.4(b) of Article 5.

         4.3 RULES APPLICABLE TO 1998 DEFERRAL AMOUNTS ONLY

         (a) CREDITING OF MEMORANDUM ACCOUNTS. On each Allocation Date during
the 1998 Plan year, an amount of cash reflecting the portion of a Participant's
Deferral Amount which would otherwise have been paid to the Participant on such

                                      -7-
<PAGE>   12
Allocation Date shall be (i) credited to the Participant's Cash Account, to the
extent that the Participant has elected to invest in one or more Investment
Choices and (ii) converted to Stock Units and credited to the Participant's
Stock Unit Account, in accordance with the terms and conditions of Article 5, to
the extent that the Participant has elected to participate in the Management
Stock Unit Purchase Program.

         (b) VESTING. A Participant shall be fully (100%) vested in the Account
Balance of his or her Cash Account at all times. A Participant shall be vested
in the Account Balance of his or her Stock Unit Account as provided in Section
5.4(b) of Article 5.

         (c) INVESTMENT OF CASH ACCOUNTS. A Participant's Cash Account shall be
deemed invested among the Investment Choices selected by the Participant on the
Participant's Deferral Election Form (or such other form as may be prescribed by
the Plan Administrator). Each Participant's Cash Account shall be adjusted as of
each Valuation Date to reflect the performance of the Investment Choices, and,
to the greatest extent practicable, the value of each Participant's Cash Account
shall be determined as if Deferral Amounts were actually invested among the
Investment Choices as directed by such Participant; provided, however, that the
Company shall have no obligation actually to invest any Deferral Amounts or
other assets in any Investment Choices.

         (d) ALLOCATION AMONG INVESTMENT CHOICES. A Participant may elect to
change the allocation of his or her Cash Account among the Investment Choices
not more frequently than quarterly by completing such form as may be prescribed
by the Plan Administrator and submitting it to the Plan Administrator. Any such
change in allocation will become effective on the first day of the next
following calendar quarter.

         (e) CONVERSION BETWEEN STOCK UNIT ACCOUNTS AND CASH ACCOUNTS. A
Participant may, by notice delivered to the Plan Administrator (a "Conversion
Notice"), convert (i) all or any portion of the Stock Units credited to his or
her Stock Unit Account which is allocable to his or her 19989 Deferral Amount
(either before or after Annual Installments from such account may have
commenced) to his or her Cash Account by multiplying the Stock Units to be
converted by the Fair Market Value of a share of Common Stock on the earlier of
the Valuation Date coincident with or the Valuation Date next following the day
on which the Conversion Notice is received, or (ii) all or any portion of his or
her Cash Account (either before or after Annual Installments from such account
may have commenced) into a number of Stock Units equal to the portion of the
Cash Account to be converted divided by the Fair Market Value of a share of
Common Stock on the last trading day of the month in which such Conversion
Notice is given; provided, however, that no Conversion Notice shall be of any
force and effect if it (A) is given within six months following the date of an
election by such Participant, with respect to any plan of the Company, that
effected a "Discretionary Transaction" (as defined in Rule 16b-3(f) under the
Exchange Act) that was an acquisition (if the Conversion Notice is pursuant to
clause (i)) or a disposition (if the Conversion Notice is pursuant to clause
(ii)), (B) is given after an individual ceases to be an employee of an Employer
and the Committee does not consent to such Conversion Notice, (C) applies to

                                      -8-
<PAGE>   13
(i) any Basic Stock Units which (by reason of the calculation set forth in
Section 5.4(a) of Article 5) give rise to Matching Stock Units, if such Matching
Stock Units are unvested as of the date of the Conversion Notice or (ii) any
unvested Matching Stock Units, or (D) applies to a Prior Account. Any such
Conversion Notice will become effective on the first day of the next following
calendar quarter.

         4.4 RULE APPLICABLE TO PRIOR ACCOUNTS ONLY

         (a) VESTING. A Participant shall be fully (100%) vested in his or her
Prior Account at all times.

         (b) TREATMENT OF PRIOR ACCOUNTS. Prior Accounts shall be accounted for
separately under the Plan. Prior Accounts may be allocated between the
investment alternatives available under the Plan as of December 31, 1997 (unless
the Plan Administrator shall make available another investment alternative) but
may not be allocated among the Investment Choices (unless such other investment
alternative is also an Investment Choice) or transferred to a Cash Account or
Stock Unit Account. A Participant's Prior Account shall be paid to the
Participant in accordance with Article 6 of the Plan.

         4.5 STOCK UNIT DIVIDEND EQUIVALENT RIGHTS. In the event of a dividend
paid with respect to the Common Stock, whether in cash, Common Stock or other
stock or property of the Company, credits (dividend equivalents) will be made to
each Participant's Stock Unit Account as follows:

                  (i) in the case of a cash dividend, or a dividend of stock of
         the Company (other than Common Stock) or other property, additional
         credits will be made to the Stock Unit Account consisting of a number
         of Stock Units equal to the number determined by dividing (A) the cash
         amount of such dividend per share (or the fair market value, on the
         date of payment, of dividends paid in such stock or other property),
         multiplied by the aggregate number of Stock Units credited to such
         Stock Unit Account on the record date for the payment of such dividend
         by (B) the Fair Market Value of a share of Common Stock on the day
         prior to the date such dividend is payable to holders;

                  (ii) in the case of a dividend consisting of Common Stock, the
         Stock Unit Account will be credited with a number of Stock Units equal
         to the number of Stock Units in such account immediately prior to such
         dividend multiplied by the number of shares of Common Stock paid per
         share of Common Stock in such dividend;

                  (iii) in the case of a dividend consisting of shares of stock
         of any of the Company's subsidiaries, a new stock unit subaccount will
         be established and credited with a number of shares of stock of such
         subsidiary equal to the number of Stock Units in the Participant's
         Stock Unit Account immediately prior to such dividend multiplied by the
         number of shares of subsidiary stock issued per share

                                      -9-
<PAGE>   14
         of Common Stock in such dividend (with dividends thereafter accruing on
         such new subaccount solely in the form of cash in an amount equal to
         the value of dividends paid by the issuer of the stock to which the
         stock units relate); and

                  (iv) in the case of a Change in Capitalization not described
         in subsections (i), (ii) or (iii) of this Section 4.5, the Committee in
         good faith shall take such action as it deems necessary to preserve the
         economic value of the Stock Unit Account immediately prior to the
         Change in Capitalization. For purposes of this Section 4.5(iv), "Change
         in Capitalization" shall mean any increase or reduction in the number
         of shares of Common Stock, or any change (including, but not limited
         to, a change in value) in such shares or exchange of such shares for a
         different number or kind of shares or other securities of the Company
         or another corporation, by reason of a reclassification,
         recapitalization, merger, consolidation, reorganization, spin-off,
         split-up, issuance of warrants or rights or debentures, stock dividend,
         stock split or reverse stock split, cash dividend, property dividend,
         combination or exchange of shares, repurchase of shares, change in
         corporate structure or otherwise.

After payment in respect of a Participant's Stock Unit Account commences,
dividend equivalents will accrue on the unpaid balance of such Stock Unit
Account in the same manner until all of the amounts credited to such Stock Unit
Account have been paid.

         4.6 REPORTS. Until a Participant's Account Balances shall have been
paid in full, the Company will furnish to the Participant a report at least
quarterly which shall set forth transactions in, and the status of, the
Participant's Deferred Compensation Accounts.

                                   ARTICLE 5

                     MANAGEMENT STOCK UNIT PURCHASE PROGRAM

         5.1 PURPOSE. The purpose of the Management Stock Unit Purchase Program
is to encourage Participants in the Plan to defer compensation into Stock Units,
thereby aligning the interests of senior management of the Company with the
interests of the Company's stockholders.

         5.2 RULES APPLICABLE TO POST-1998 DEFERRAL AMOUNTS

         (a) STOCK UNIT DEFERRALS. All Deferral Amounts deferred by a
Participant in the 1999 Plan Year and thereafter shall be credited as Stock
Units to his or her Stock Unit Account.

         (b) STOCK UNIT ACCOUNTS. A Stock Unit Account shall be maintained for
each Participant. On each Allocation Date, an amount of cash reflecting the
portion of a Participant's Deferral Amount which would otherwise have been paid
to the

                                      -10-
<PAGE>   15
Participant on such Allocation Date shall be converted to Stock Units pursuant
to Section 5.4(a) of this Article 5 and shall be credited to the Participant's
Stock Unit Account.

         5.3 RULES APPLICABLE TO 1998 DEFERRAL AMOUNTS

         (a) STOCK UNIT DEFERRAL ELECTIONS. In making his or her Deferral
Election for the 1998 Plan Year, a Participant may elect that his or her
Deferral Amounts be deferred as Stock Units. A Participant shall make such a
Deferral Election on the Deferral Election Form or such other form as the Plan
Administrator may prescribe.

         (b) STOCK UNIT ACCOUNTS. A Stock Unit Account shall be maintained as
necessary for each Participant. On each Allocation Date, an amount of cash
reflecting the portion of a Participant's Deferral Amount which would otherwise
have been paid to the Participant on such Allocation Date shall be converted to
Stock Unites pursuant to Section 5.4(a) of this Article 5 and shall be credited
to a Participant's Stock Unit Account. The amount so credited shall reflect the
portion of the Participant's Deferral Amount not credited to the Participant's
Cash Account pursuant to Section 4.3(a) of Article 4.

         5.4 RULES GENERALLY APPLICABLE TO STOCK UNIT ACCOUNTS

         (a) CONVERSION TO STOCK UNITS. Subject to Section 5.4(e) of this
Article 5, credits to a Participant's Stock Unit Account on an Allocation Date
shall be converted into a number of Stock Units equal to the amount of the
credit to the Stock Unit Account on such Allocation Date divided by the
Discount. Upon and following such conversion, such Stock Units shall be
allocated to the Stock Unit Account in lieu of such credit.

         (b) VESTING IN STOCK UNITS. Stock Units which are equal to the credit
to the Stock Unit Account on an Allocation Date divided by the Fair Market Value
of a share of Common Stock on such Allocation Date shall be deemed "Basic Stock
Units." The remaining Stock Units following the conversion of the credit into
Stock Units on such Allocation Date shall be deemed "Matching Stock Units." Each
Participant shall at all times be fully (100%) vested in the Basic Stock Units
allocated to his or her Stock Unit Account. Subject to Section 5.4(c) of this
Article 5, each Participant shall vest in the Matching Stock Units allocated to
his or her Stock Unit Account on the last day of the second Plan Year following
the Plan Year in which such Stock Units were allocated.

         (c) FORFEITURE AND ACCELERATED VESTING OF MATCHING STOCK UNITS. If,
prior to a Change in Control, a Participant ceases to be an employee of an
Employer for any reason other than death or Disability, all unvested Matching
Stock Units credited to the Participant's Stock Unit Account shall be
immediately forfeited. Upon (i) the death of a Participant, (ii) termination of
employment by reason of Disability or (iii) a Change in Control, all unvested
Matching Stock Units credited to the Participant's Stock Unit Account shall
immediately vest. If a Participant shall remain a Participant following a Change
in Control or become a Participant following cessation of a Disability, Stock
Units thereafter allocated to the Participant's Stock Unit Account shall be
subject to the

                                      -11-
<PAGE>   16
terms and conditions of the Plan as if no such Change in Control or Disability
(as the case may be) had occurred.

         (d) DIVIDEND EQUIVALENT RIGHTS. Dividend equivalents credited pursuant
to Section 4.5 of Article 4 shall be subject to the vesting and forfeiture
provisions of Sections 5.4(b) and 5.4(c) of this Article 5 in accordance with
the Stock Units to which such dividend equivalents relate.

         (e) CONTINUATION OF DISCOUNTED STOCK UNIT PURCHASE. Upon oral or
written notice to Participants, the Plan Administrator may prospectively alter
the Discount (including but not limited to ceasing to make the Discount
available).

                                   ARTICLE 6

                          PAYMENT OF ACCOUNT BALANCES

         6.1 FORMS OF PAYMENT OF POST-1998 DEFERRAL AMOUNTS. Any payment which
is allocable to a Participant's Post-1998 Deferral Amounts shall be paid in
Common Stock.

         6.2 FORMS OF PAYMENT OF 1998 DEFERRAL AMOUNTS

         (a) PAYMENT TO BE MADE IN CASH. Any payment which is allocable to a
Participant's 1998 Deferral Amount and which is required to be paid from a
Participant's Cash Account, and any payment which is required to be paid from
the cash portion of a Participant's Prior Account, shall be in cash.

         (b) PAYMENT TO BE MADE IN COMMON STOCK. Any payment which is allocable
to a Participant's 1998 Deferral Amount and which is required to be paid from a
Participant's Stock Unit Account, and any payment which is required to be paid
from the stock unit portion of a Participant's Prior Account, shall be in cash
or, at the election of the Participant or the Plan Administrator, in Common
Stock. A Participant's election pursuant to this Section 6.2(b) shall be honored
by the Plan Administrator in its discretion.

         6.3 PAYMENT METHOD ELECTIONS

         (a) PAYMENT OF ACCOUNT BALANCES IN ACCORDANCE WITH PAYMENT METHODS.
Except as provided in the exceptions set forth in Section 6.4 through 6.9 of
this Article 6, a Participant's Account Balances shall be paid in accordance
with the Payment Methods selected by him or her.

         (b) INITIAL PAYMENT METHOD ELECTIONS. Each Eligible Employee shall
select Payment Methods upon completion of his or her initial Deferral Election
Form. If a Participant fails to select one or more Payment Methods, he or she
will be deemed to have selected a lump sum in respect of such Payment Methods;
provided, however, that,

                                      -12-
<PAGE>   17
if a Participant has not selected a Change in Control Payment Method, the
Participant's Retirement Payment Method, Survivor Payment Method and Termination
Payment Method will remain in effect following a Change in Control.

         (c) CHANGE IN PAYMENT METHOD. A Participant may change one or more of
his or her Payment Methods by completing such form as may be prescribed by the
Plan Administrator; provided, however, that such change shall be effective only
if made by the Participant and acknowledged by the Plan Administrator: (i) if
the change relates to the Change in Control Payment Method, at least one (1)
year prior to the date of a Change in Control, (ii) if the change relates to the
Retirement Payment Method or Termination Payment Method, at least two (2) years
prior to the date of Termination of Retirement (whichever is applicable) and
(iii) if the changes relates to the Survivor Payment Method, immediately.

         (d) PRIOR ACCOUNTS. Prior Accounts shall be paid to a Participant in
accordance with the Payment Methods selected by the Participant pursuant to
Section 6.2 of this Article 6 (or, if the Participant has failed to select one
or more Payment Methods, in a lump sum).

         6.4 EXCEPTION TO TERMINATION PAYMENT METHOD. Notwithstanding a
Participant's selection of a Termination Payment Method, a Participant's Account
Balances shall be paid in a lump sum if (i) the Participant's Account Balances
on the Valuation Date next following his or her Termination of employment equal
less than twenty-five thousand dollars ($25,000) or (ii) the Participant ceases
to be an employee of an Employer by reason of termination for Cause. If a
Participant's Account Balances on the Valuation Date next following his or her
Termination of employment equal twenty-five thousand dollars ($25,000) or
greater, the Account Balances shall be paid in accordance with the Participant's
Termination Payment Method.

         6.5 EXCEPTION FOR DISABILITY OF PARTICIPANT. If a Participant is
determined by the Plan Administrator to be suffering from a Disability, the Plan
Administrator may deem such Participant to have effected a Termination of
employment; provided, however, that if a Participant is eligible for Retirement
on the date he or she would have been deemed to have effected a Termination, the
Plan Administrator, with the consent of the Participant, may deem the
Participant to have effected his or her Retirement.

         6.6 EXCEPTION FOR DEATH OF PARTICIPANT.

         (a) PRIOR TO RETIREMENT. Notwithstanding a Participant's selection of a
Survivor Payment Method, if a Participant's Account Balances on the Valuation
Date next following his or her death prior to Retirement equal less than
twenty-five thousand dollars ($25,000), the Account Balances shall be paid to
the Participant's Beneficiary in a lump sum. If a Participant's Account Balances
on such Valuation Date equal twenty-five thousand dollars ($25,000) or greater,
the Account Balances shall be paid to the Participant's Beneficiary in
accordance with the Participant's Survivor Payment Method.

                                      -13-
<PAGE>   18
         (b) FOLLOWING RETIREMENT. If a Participant's Account Balances on the
Valuation Date next following his or her death following Retirement equal less
than twenty-five thousand dollars ($25,000), the Account Balances shall be paid
to the Participant's Beneficiary in a lump sum. If a Participant's Account
Balances on such Valuation Date equal twenty-five thousand dollars ($25,000) or
greater, the Account Balances shall be paid to the Participant's Beneficiary in
accordance with the Retirement Payment Method in effect in respect of the
Participant on the date of his or her death; provided, however, that the
Beneficiary may request that the Plan Administrator pay the Participant's
Account Balances in a lump sum without giving effect to Section 6.11 of this
Article 6, which request shall be honored by the Plan Administrator in its
discretion in whole or in part or upon such terms and conditions as the Plan
administrator in good faith deems appropriate.

         6.7 EXCEPTION FOR UNFORESEEABLE FINANCIAL EMERGENCY. If a Participant
(or, after a Participant's death, his or her Beneficiary) experiences an
Unforeseeable Financial Emergency, the Participant or Beneficiary may request
that the Plan Administrator (i) suspend his or her Deferral Election and (ii)
distribute a partial or full lump sum payment from the Participant's Account
Balances. The payment shall not exceed the amount reasonably needed to satisfy
the Unforeseeable Financial Emergency (and may include an amount equal to any
income taxes and other taxes payable by the Participant or Beneficiary upon
receipt of the amount to be distributed). The request shall be honored by the
Plan Administrator in its discretion. The lump sum payment shall be paid
promptly after the Valuation Date after approval of the request.

         6.8 EXCEPTION FOR SECTION 162(m) OF THE CODE. If, prior to a Change in
Control, the Plan Administrator determines that any payment under the Plan to a
Participant may not be deductible by the Company under Section 162(m) of the
Code, the Plan Administrator may, to the extent necessary to preserve such
deduction, defer any such payment otherwise payable until the earlier of (i) the
earliest date that such payment is deductible under Section 162(m) or (ii) a
Change in Control. This Section 6.8 shall be of no force and effect upon and
following a Change in Control.

         6.9 EXCEPTION FOR SECTION 16 OF THE EXCHANGE ACT. Notwithstanding any
other provision of the Plan, no payment shall be made pursuant to the Plan if
such payment would subject a Participant to liability under Section 16 of the
Exchange Act, and any such payment shall be delayed until the first date on
which such payment may be made without subjecting the Participant to such
liability.

         6.10 SHORT-TERM PAYOUT. In making his or her Deferral Election, a
Participant may irrevocably elect to receive a "Short-Term Payout" of the
Deferral Amount in respect of the Plan Year for which such Deferral Election is
made. The Short-Term Payout shall be a lump sum payment in an amount equal to
such Deferral Amount plus or minus gains or losses to such Deferral Amount, to
be paid to such Participant before March 1 of a Plan Year selected by the
Participant; provided, however, that at least two (2) complete Plan Years must
elapse between the Plan Year in which the Deferral

                                      -14-
<PAGE>   19
Amount is deferred and the Plan Year in which the Short-Term Payout is to occur.
If, after a Participant elects to receive a Short-Term Payout but before the
Short-Term Payout occurs, the Participant becomes entitled to payment of his or
her Account Balances (in whole or in part), such Short-Term Payout shall be of
no force and effect to the extent inconsistent with such other payment.

         6.11 WITHDRAWAL ELECTION. A Participant (or, after a Participant's
death, his or her Beneficiary) may elect to withdraw from the Plan at any time.
A Participant or Beneficiary shall make such election in writing delivered to
the Plan Administrator on such form as the Plan Administrator may prescribe.
Upon the making of such an election, any unvested Matching Stock Units credited
to the Participant's Stock Unit Account shall be immediately forfeited, and the
Participant's Account Balances shall thereafter be reduced by an additional ten
percent (10%). Payment of a Participant's Account Balances shall be in a lump
sum to be paid as soon as practicable following the election. Upon payment of
his or her Account Balances pursuant to this Section 6.11, a Participant's
participation in the Plan shall terminate and the Participant shall be
ineligible to participate in the Plan in the future.

         6.12 EFFECT OF SECTION 280G OF THE CODE. If a Participant is a party to
an agreement or a participant in a plan (other than this Plan) that contains a
provision which addresses the treatment of "excess parachute payments" (as
defined in Section 280G(b)(1) of the Code), the treatment of excess parachute
payments set forth in such agreement or plan shall be applicable to any payments
to be made to him or her pursuant to the Plan. If a Participant is not a party
to such an agreement and is not a participant in such a plan, and if any payment
under the Plan to a participant would constitute an excess parachute payment,
then such payment shall be reduced (but no below zero) to such extent; provided,
however, that such Participant may, by notice given to the Plan Administrator,
elect to reduce payments due him or her under other plans, arrangements or
agreements of the Company in lieu of the reduction of one or more payments under
the Plan. Any such notice given by a Participant shall take precedence over the
provisions of any other plan, arrangement or agreement governing the
Participant's rights and entitlements to any benefits or compensation.

         6.13 TIME OF PAYMENTS

         (a) TIMING OF LUMP SUM PAYMENTS. Except as provided in Sections 6.7 and
6.11 of this Article 6, prior to a Change in Control, any lump sum payment
required to be paid pursuant to the Plan shall be paid by March 1 of the Plan
Year following the Plan Year in which occurs the event giving rise to such
payment. Upon and following a Change in Control, any lump sum payment required
to be paid pursuant to the Plan shall be paid within ten (10) business days
following the first Valuation Date following the occurrence of the event giving
rise to such payment.

         (b) TIMING OF ANNUAL INSTALLMENTS. A Participant's initial Annual
Installment shall be paid by March 1 of the Plan Year following the Plan Year in
which occurs the event giving rise to such Annual Installment. Subsequent Annual
Installments

                                      -15-
<PAGE>   20
required to be paid under the Plan shall be paid as promptly as practicable
after the end of each subsequent Plan Year until all Annual Installments have
been paid.

         6.14 VALUATION OF ACCOUNT BALANCES

         (a) CASH ACCOUNTS. The valuation of any payment to be made from a Cash
Account shall be determined as of the Valuation Date immediately preceding the
date of such payment.

         (b) STOCK UNIT ACCOUNTS. The valuation of any payments to be made from
a Stock Unit Accounts or the stock unit portion of Prior Accounts shall be based
on the Fair Market Value of a share of Common Stock on the Valuation Date
immediately preceding the date of such payment.

         (c) PRORATION OF PAYMENTS. To the extent that a Participant has two or
more Account Balances at the time a payment is due from such Account Balances,
any payment due such Participant (or such Participant's Beneficiary) shall be
paid pro rata from each Account Balance.

                                   ARTICLE 7

                                 ADMINISTRATION

         7.1 PLAN ADMINISTRATOR. Except as may be delegated pursuant to Section
7.2 of this Article 7 and except as provided in Section 7.7 of this Article 7,
the Committee shall be the Plan Administrator.

         7.2 DELEGATION TO MANAGEMENT COMMITTEE. The Plan Administrator may
delegate one or more of its functions to a committee composed of three or more
senior executives of the Company; provided, however, that the Plan Administrator
may not delegate (i) the selection of Eligible Employees, (ii) the selection of
Investment Choices, (iii) the approval of the Deferral Elections of any officer
who is subject to Section 16 of the Exchange Act or (iv) any other function
required by law to be performed by the Committee. Upon appointment of such a
committee and delegation of duties thereto, such committee shall become the Plan
Administrator to the extent of such delegation.

         7.3 GENERAL POWERS AND RESPONSIBILITIES OF PLAN ADMINISTRATOR. The Plan
Administrator shall have full authority to construe and interpret the terms and
provisions of the Plan, and to adopt, alter and repeal such administrative
rules, guidelines and practices governing the Plan and perform all acts as it
shall, from time to time, deem advisable, and otherwise to supervise the
administration of the Plan. The Plan Administrator may correct any defect,
supply any omission or reconcile any inconsistency in the Plan, or in any
Deferral Election hereunder, in the manner and to the extent it shall deem
necessary to effectuate the Plan. Any decision, interpretation or other action
made or taken in good faith by or at the direction of the Plan Administrator in

                                      -16-
<PAGE>   21
connection with the Plan shall be in the sole and absolute discretion of the
Plan Administrator and shall be final, binding and conclusive on all persons
(including, but not limited to, the Company, employees of the Company and the
Employers, Participants and their respective Beneficiaries, heirs, executors,
administrators, successors and assigns). A Participant who is a member of a
committee that is the Plan Administrator or a person to whom the Plan
Administrator has delegated responsibility pursuant to Section 7.2 of this
Article 7 shall not participate in any decision involving a request made by him
or her or relating in any way to his or her rights, duties, and obligations as a
Participant (unless such decision relates to all Participants generally and in a
similar manner).

         7.4 ACTION OF PLAN ADMINISTRATOR. Action taken by the Plan
Administrator shall be taken by a vote of the majority of its members present at
a meeting at which a quorum is present or signed by a majority of its members in
writing without a meeting.

         7.5 LIABILITY. No member of the Board, nor the Plan Administrator nor
any employee or agent of the Company, shall be liable for any act or action
hereunder, whether of omission or commission, by any person to whom duties in
connection with the administration of the Plan have been delegated except in
respect of the prudent appointment and periodic monitoring of such person.
Except in circumstances involving bad faith, gross negligence, willful
misconduct or fraud, no person who is a member of the Board, the Plan
Administrator or any employee or agent of the Company shall be liable for
anything done or omitted to be done by him or her. The Company or the Plan
Administrator may consult with legal counsel, who may be counsel for the Company
or other legal counsel with respect to obligations or duties hereunder or with
respect to any action or proceeding or any question of law, and shall not be
liable with respect to any action taken or omitted by it in good faith pursuant
to the advice of such counsel except in respect of the prudent selection of such
counsel.

         7.6 INDEMNIFICATION OF PLAN ADMINISTRATOR. The Company hereby
indemnifies the Plan Administrator and each employee to whom responsibilities
are delegated under the Plan against any and all liabilities and expenses,
including attorney's fees, actually and reasonably incurred by them in
connection with any threatened, pending or completed legal action or judicial or
administrative proceeding to which they may be a party, or may be threatened to
be made a party, by reason of being a member of a committee which is the Plan
Administrator or due to a delegation of responsibilities, except with regard to
any matters (i) as to which they shall be adjudged to have failed to act with
the care, skill, prudence and diligence under the circumstances then prevailing
that a prudent person acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of alike character and with like aims,
and (ii) with respect to any action finally adjudged to be a crime, had
reasonable cause to believe their conduct was unlawful.

         7.7 ADMINISTRATION UPON CHANGE IN CONTROL. Upon and following a Change
in Control, the Plan Administrator shall be one or more persons selected by the
individual who, immediately prior to the Change in Control was the Company's
chief

                                      -17-
<PAGE>   22
executive officer; provided, however, that if no such Plan Administrator has
been appointed or accepted such appointment within ninety (90) days following
such Change in Control, the Plan Administrator shall remain as in effect prior
to such Change in Control. The Company's chief executive officer may appoint
himself or herself as Plan Administrator pursuant to this Section 7.7.

         7.8 EMPLOYER INFORMATION. To enable the Plan Administrator to perform
its functions under the Plan, each Employer shall supply full and timely
information to the Plan Administrator regarding all matters relating to the
compensation of Participants, the date and circumstances of the Retirement,
Disability, death and Termination of Participants, and such other pertinent
information as the Plan Administrator may reasonably require.

                                   ARTICLE 8

                            BENEFICIARY DESIGNATION

         8.1 BENEFICIARY. Each Participant shall designate upon such form as may
be prescribed by the Plan Administrator one or more primary Beneficiaries and
one or more contingent Beneficiaries to receive such Participant's Account
Balances upon his or her death.

         8.2 CHANGE OF BENEFICIARY; SPOUSAL CONSENT. A Participant shall have
the right to change his or her Beneficiaries upon such form as may be prescribed
by the Plan Administrator. If the Participant names a primary Beneficiary other
than his or her spouse, a spousal consent, in the form designated by the Plan
Administrator, must be signed by the Participant's spouse and returned to the
Plan Administrator.

         8.3 ACKNOWLEDGMENT. No designation or change in designation of a
Beneficiary shall be effective until actually received and acknowledged in
writing by the Plan Administrator. Upon such receipt and acknowledgment, all
prior Beneficiary designations of a Participant shall be of no further force and
effect. The Plan Administrator shall be entitled to rely on the most recent
Beneficiary designation in effect prior to a Participant's death.

         8.4 NO BENEFICIARY DESIGNATION. If a Participant fails to designate a
Beneficiary as provided in this Article 8, or if all designated Beneficiaries
who are natural persons shall have predeceased the Participant or die prior to
complete distribution of the Participant's Account Balances, such Participant's
Account Balances shall be paid to his or her surviving spouse or, if the
Participant has no surviving spouse, to the Participant's estate.

         8.5 DOUBT AS TO BENEFICIARY. If the Plan Administrator is in doubt as
to a Participant's Beneficiary, the Plan Administrator may withhold payments
under the Plan until the Plan Administrator has resolved its doubts to its
satisfaction.

                                      -18-
<PAGE>   23
                                   ARTICLE 9

                     AMENDMENT AND TERMINATION OF THE PLAN

         9.1 TERMINATION OF THE PLAN

         (a) BY THE COMPANY. Subject to Section 9.1(c) of this Article 9, the
Company may terminate the Plan in whole or in part (including with respect to
the participation of the employees of any Employer) at any time and for any
reason without prior notice to or consent of any Participant.

         (b) BY THE EMPLOYERS. Subject to Section 9.1(c) of this Article 9, each
Employer may terminate the Plan at any time with respect to any or all
Participants who are employees of such Employer.

         (c) PAYMENT OF ACCOUNT BALANCES FOLLOWING PLAN TERMINATION. Upon the
termination of the Plan prior to a Change in Control, Participants shall receive
their Account Balances in a lump sum or in five (5), ten (10) or fifteen (15)
Annual Installments (at the discretion of the Plan Administrator); provided,
however, that if a Participant is receiving Annual Installments upon termination
of the Plan pursuant to the election of a Payment Method, such Annual
Installments shall continue following termination of the Plan. Upon termination
of the Plan upon or following a Change in Control, Participants shall receive
their Account Balances in a lump sum promptly following the Valuation Date next
following the date of such termination. Termination of the Plan shall not
adversely affect the Account Balances of any Participant or Beneficiary;
provided, however, that neither lump sum payment of Account Balances nor a
reduced number of Annual Installments upon termination of the Plan shall be
deemed such an adverse effect.

         9.2 AMENDMENT OF THE PLAN

         (a) BY THE COMPANY. Subject to Section 9.2(c) of this Article 9, the
Company may amend or modify the Plan in whole or in part at any time and for any
reason without prior notice to or consent of any Participant or Beneficiary;
provided, however, that, unless a Participant or Beneficiary who would be
affected by such amendment shall have consented thereto, the Plan may not be
amended (i) at the request of a third party who has indicated an intention or
taken steps to effect a Change in Control and who effectuates a Change in
Control, (ii) within six (6) months prior to, or otherwise in connection with,
or in anticipation of, a Change in Control which has been threatened or proposed
and which actually occurs, or (iii) upon or following a Change in Control.

         (b) BY THE PLAN ADMINISTRATOR. Subject to Section 9.2(c) of this
Article 9, prior to a Change in Control, the Plan Administrator may in good
faith amend or modify the Plan to effectuate its intent or to resolve any
discrepancy among the provisions of the Plan or between the Plan and other
documents describing the Plan;

                                      -19-
<PAGE>   24
provided, however, that no such amendment may materially increase the cost of
the Plan to the Company or any Employer.

         (c) EFFECT OF AMENDMENT. No amendment or modification of the Plan shall
reduce a Participant's Account Balances as of the date of such amendment or
modification.

         9.3 EFFECT OF PAYMENT. The full payment of a Participant's Account
Balances shall completely discharge all obligations to a participant and his or
her Beneficiaries under the Plan.

                                   ARTICLE 10

                               CLAIMS PROCEDURES

         10.1 PRESENTATION OF CLAIM. Any Participant, Beneficiary or other
person (each such person, a "Claimant") may deliver to the Plan Administrator a
written claim for payment from the Plan. All claims must be made within one
hundred eighty (180) days following the date of the occurrence of the event
giving rise to the claim; provided, however, that, if a claim relates to a
notice given by the Company, such claim must be made within sixty (60) days
following receipt of such notice by the Claimant. The claim must state with
particularity the determination desired by the Claimant.

         10.2 NOTIFICATION OF DECISION. The Plan Administrator shall consider a
Claimant's claim, and shall notify the Claimant in writing of its determination
within a reasonable time. Such notice shall set forth (i) one or more reasons
for the grant or denial of the claim or any part of it; (ii) a description of
any additional material or information necessary for the Claimant to perfect the
claim, and an explanation of why such material or information is necessary; and
(iii) an explanation of the claim review procedure set forth in Section 10.3 of
this Article 10.

         10.3 REVIEW OF A DENIED CLAIM. Within sixty (60) days after receiving a
notice from the Plan Administrator that a claim has been denied in whole or in
part, a Claimant (or such Claimant's duly authorized representative) may file
with the Plan Administrator a written request for a review of the denial of the
claim. During such sixty-day period, the Claimant (or the Claimant's duly
authorized representative) (i) may review pertinent documents, (ii) may submit
written comments or other documents to the Plan Administrator and (iii) may
request a hearing.

         10.4 DECISION ON REVIEW. The Plan Administrator shall render its
decision on review promptly, and not later than sixty (60) days after the filing
of a written request for review of the denial, unless a hearing is held or other
special circumstances require additional time, in which case the Plan
Administrator's decision must be rendered within one hundred twenty (120) days
after such date. Such decision must be written in a manner calculated to be
understood by the Claimant, and it must contain (i) specific reasons for the
decision, (ii) specific reference(s) to the pertinent Plan provisions upon

                                      -20-
<PAGE>   25
which the decision was based, and (iii) such other matters as the Plan
Administrator may deem relevant.

         10.5 LEGAL ACTION. In making a Deferral Election under the Plan, each
Participant shall be deemed to have agreed that compliance with the provisions
of this Article 10 is a mandatory prerequisite to commencement of any legal
action with respect to any claim for payment under the Plan.

                                   ARTICLE 11

                                    FUNDING

         11.1 ESTABLISHMENT OF THE TRUST. The Company shall establish a Trust in
connection with the Plan, and each Employer may, from time to time and in its
sole discretion, transfer to the Trust assets with respect to Participants who
are employees of such Employer. The Plan Administrator may, in its discretion,
establish subaccounts into which assets allocable to the participation of
employees of an Employer shall be deposited.

         11.2 INTERRELATIONSHIP OF THE PLAN AND THE TRUST. The provisions of the
Plan shall govern the rights of a Participant to receive payment of his or her
Account Balances. The provisions of the Trust shall govern the rights of the
Trustee, the Company, the Employers, Participants and the creditors of the
Company or the Employers to the assets held in the Trust.

         11.3 DISTRIBUTIONS FROM THE TRUST. Each Employer's obligations under
the Plan may be satisfied with Trust assets distributed pursuant to the terms of
the Trust, and any such distribution shall reduce the Employer's obligations
under the Plan.

                                   ARTICLE 12

                                 MISCELLANEOUS

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

         12.2 UNSECURED GENERAL CREDITOR. Participants and their Beneficiaries,
heirs, successors and assigns shall have no legal or equitable rights, interest
or claims in any property or assets of the Company. For purposes of the payment
of benefits under the Plan, any and all of the Company's assets shall be, and
remain, the general, unpledged unrestricted assets of the Company. The Company's
obligation under the Plan shall be merely that of an unfunded and unsecured
promise to pay money in the future.

                                      -21-
<PAGE>   26
         12.3 ASSETS. This Plan, and the crediting of Deferral Amounts to Cash
Accounts, Stock Unit Accounts and Prior Accounts hereunder, shall not constitute
a trust and shall be an unsecured contractual obligation of the Company to the
Participants. The obligations of the Company hereunder to any Participant on any
date shall be limited to his or her Account Balances as of the most recent
preceding Valuation Date.

         12.4 COMPANY LIABILITY. The Company's liability for the payment of
benefits under the Plan shall be defined only by the Plan. The Company shall
have no obligation to a Participant under the Plan except as expressly provided
herein.

         12.5 NONASSIGNABILITY. Neither a Participant nor any other person shall
have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage
or otherwise encumber, transfer, hypothecate, alienate or convey in advance of
actual receipt, any amount payable under the Plan. All amounts payable under the
Plan, and all rights to such amounts, are expressly declared to be unassignable
and non-transferable. Except as provided in Section 12.16 of this Article 12, no
part of a Participant's Account Balances shall, prior to actual payment, be
subject to seizure, attachment, garnishment or sequestration for the payment of
any debts, judgments, alimony or separate maintenance owed by the Participant or
any other person, be transferable by operation of law in the event of a
Participant's or any other person's bankruptcy or insolvency or be transferable
to a spouse as a result of a property settlement or otherwise.

         12.6 NOT A CONTRACT OF EMPLOYMENT. The terms and conditions of the Plan
shall not be deemed to establish, constitute or be evidence of a contract of
employment between any Employer and any Participant. Nothing in the Plan shall
be deemed to confer upon a Participant the right to be retained in the service
of any Employer, or in any way to restrict the right of any Employer to
discipline or discharge a Participant at any time.

         12.7 FURNISHING INFORMATION. A Participant or his or her Beneficiary
will cooperate with the Plan Administrator by furnishing any and all information
requested by the Plan Administrator and will take such other action as may be
requested in order to facilitate the administration of the Plan and the payments
of benefits hereunder.

         12.8 TERMS. Unless the context shall plainly require otherwise, (i) use
of the masculine herein shall be deemed to include the feminine (and vice
versa), (ii) use of the singular shall be deemed to include the plural (and vice
versa) and (iii) use of the conjunctive shall be deemed to include the
disjunctive (and vice versa).

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

                                      -22-
<PAGE>   27
         12.10 GOVERNING LAW. The provisions of the Plan shall be construed and
interpreted according to the internal laws of the State of Delaware without
regard to its conflicts of laws principles, except to the extent governed by
ERISA.

         12.11 NOTICE. Any notice or filing required or permitted to be given to
the Company or the Plan Administrator shall be sufficient if in writing and sent
to the following address by (i) hand, (ii) registered or certified mail or (iii)
facsimile:

         The Dial Corporation

         Attention: Senior Vice President, Human Resources

         15501 North Dial Boulevard

         Scottsdale, AZ 85260

         (Fax: 602-754-1098)

Such notice shall be deemed given as of the date of receipt by the Company or
the Plan Administrator (whichever may apply). The person sending such notice or
filing shall produce satisfactory evidence of receipt by the Company upon the
request of the Plan Administrator, and, if such person fails to produce such
evidence of receipt, the Plan Administrator may give effect to such notice or
filing as it deems appropriate.

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

         12.12 SUCCESSORS. The provisions of the Plan shall bind and inure to
the benefit of the Company and its successors and assigns. The provisions of the
Plan shall bind and inure to Participants and, upon the death of a Participant,
his or her Beneficiaries or estate (whichever may apply).

         12.13 SPOUSE'S INTEREST. The interest in the Plan of a spouse of a
Participant who is not a Beneficiary shall be subject to the terms and
conditions of Article 8. Without limiting the generality of the foregoing, the
spouse of a Participant shall have no interest in the Plan if such spouse shall
predecease such Participant.

         12.14 REFORMATION AND SEVERABILITY. In the event that any provision of
the Plan shall be held illegal, invalid or unenforceable for any reason, the
provision shall be reformed to the extent necessary such that the provision, as
reformed, is legal, valid and enforceable. If a provision of the Plan shall be
held illegal, invalid or enforceable and such reformation is not possible, such
provision shall be ineffective to the extent of such illegality, invalidity or
unenforceability without rendering illegal, invalid or unenforceable the
remaining provisions of the Plan.

         12.15 INCOMPETENCE. If the Plan Administrator determines that a benefit
under the Plan is to be paid to a minor, a person declared incompetent or a
person adjudged legally incapable of handling the disposition of his or her
property, the Plan Administrator may direct payment of such benefit to the
guardian, legal representative or

                                      -23-
<PAGE>   28
other person having the care and custody of such minor or such incompetent or
incapable person. The Plan Administrator may require proof of minority,
incompetence, incapacity or guardianship, as it may deem appropriate prior to
distribution of such benefit. Any payment of a benefit shall be a payment for
the account of the Participant or the Participant's Beneficiary, as the case may
be, and shall effect a complete discharge of any liability under the Plan for
such payment.

         12.16 COURT ORDER. The Plan Administrator is authorized to make any
payments directed by court order in any action in which the Plan, the Company or
the Plan Administrator has been named as a party. Without limiting the
generality of the foregoing, if a court determines that a spouse or former
spouse of a Participant has an interest in the Participant's Account Balances
under the Plan in connection with a property settlement or otherwise, the Plan
Administrator, in its sole discretion, shall have the right, notwithstanding any
election by a Participant of a Payment Method, immediately to distribute the
interest of such spouse or former spouse in the Participant's Account Balances
under the Plan to such spouse or former spouse.

         12.17 DISTRIBUTION IN THE EVENT OF TAXATION. If, for any reason, all or
any portion of a Participant's Account Balances becomes taxable to the
Participant prior to receipt, a Participant may request that the Plan
Administrator distribute that portion of his or her Account Balances that has
become taxable. The granting of such a request shall not be unreasonably
withheld. If the request is granted, the distribution for such tax liability
shall be paid within ninety (90) days of the date the request is granted.

         12.18 TAXES

         (a) UPON DEFERRAL. For each Plan Year in respect of which a Participant
makes a Deferral Election, the Company shall withhold (from amounts other than
Deferral Amounts) an amount equal to the employment taxes on the Deferral
Amounts required to be so withheld.

         (b) UPON VESTING. For each Plan year in which Matching Stock Units vest
in accordance with the terms of the Plan, the Company shall withhold (from
amounts other than Deferral Amounts) an amount equal to the employment taxes on
the vested Matching Stock Units required to be so withheld.

         (b) UPON DISTRIBUTION. When Account Balances are distributed to
Participants, the Company shall withhold from such distributions any taxes
required by federal, state or local law to be so withheld by any Employer.

         12.19 INSURANCE. The Company, on its own behalf or on behalf of the
Trust, in its sole discretion may apply for and procure insurance policies on
the life of Participants, in such amounts and in such forms as the Trustee may
select. The Trust shall be the sole owner and beneficiary of any such policies.
The Participant shall have no interest in any such policies.

                                      -24-
<PAGE>   29
         12.20 MAXIMUM NUMBER OF SHARES OF COMMON STOCK AUTHORIZED.

         Notwithstanding any other provision on this Plan, no more than
5,000,000 shares of Common Stock may be issued in the aggregate to Participants
under the Plan; and provided, that the number of shares of Common Stock which
may be so issued under the Plan shall be further reduced by the number of shares
of Common Stock authorized for issuance under other plans of the Company
(excluding from such reduction, however, the number of shares of Common Stock
authorized for issuance under other plans of the Company for which shareholder
approval is not required pursuant to subsections (1)-(3) of New York Stock
Exchange Rule 312.03(a)).

         12.20 LITIGATION TO ENFORCE RIGHTS AFTER CHANGE IN CONTROL. Upon or
following a Change in Control, litigation in respect of the rights of
Participants and Beneficiaries under the Plan may be commenced as provided in
The Dial Corporation Benefits Protection Trust.

         12.21 EFFECT OF THE PLAN. The terms and conditions of the Plan shall
supersede the terms and conditions of The Dial Corporation Deferred Compensation
Plan.

         IN WITNESS WHEREOF, the Company has caused the Plan to be executed by
its duly authorized representative effective as of this 1 day of November, 1998.

                                    THE DIAL CORPORATION

                                    /s/ Malcolm Jozoff
                                    ------------------------------------------

                                    By: Malcolm Jozoff
                                    ------------------------------------------

                                    Its: Chairman, President and
                                         Chief Executive Officer
                                    ------------------------------------------

                                      -25-

<PAGE>   30
                                   APPENDIX A
                        DEFINITION OF "CHANGE IN CONTROL"

      A "Change in Control" shall mean the occurrence, while the Plan is in
effect, of any of the following:

      (a) The acquisition by any 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 (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20% or more of either (i) the then outstanding shares of common stock of the
Company (the "Outstanding Company Common Stock") or (ii) the combined voting
power of the then outstanding voting 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 (a), the
following acquisitions shall not constitute a Change in Control: (i) any
acquisition directly from the Company, (ii) any acquisition by the Company,
(iii) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the Company or
(iv) any acquisition by any corporation pursuant to a transaction which complies
with clauses (i), (ii) and (iii) of subsection (c) below; or

      (b) Individuals who, as of the date hereof, constitute the Board (the
"Incumbent Board") cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to
the date hereof whose election, or nomination for election by the Company's
stockholders, 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 occurs 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

      (c) Consummation of a reorganization, merger or consolidation or sale or
other disposition of all or substantially all of the assets of the Company (a
"Business Combination"), in each case, unless, following such Business
Combination, (i) all or substantially all of the individuals and entities who
were the beneficial owners, respectively, 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,
respectively, the then outstanding voting 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 Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or
substantially all of the Company's assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, as the case may be, (ii)
no Person (excluding

                                      A-1
<PAGE>   31
any corporation resulting from such Business Combination or any employee benefit
plan (or related trust) of the Company or such corporation resulting from such
Business Combination) beneficially owns, directly or indirectly, 20% or more of,
respectively, the then outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the
then outstanding voting securities of such corporation except to the extent that
such ownership existed prior to the Business Combination and (iii) at least a
majority of the members of the board of directors of the corporation resulting
from such Business Combination were members of the Incumbent Board at the time
of the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination; or

      (d) Approval by the stockholders of the Company of a complete liquidation
or dissolution of the Company.

                                      A-2<PAGE>   1
                                                                   Exhibit 10(o)

                              EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT (the "Agreement") by and between The Dial
Corporation, a Delaware corporation (the "Company") and Herbert M. Baum (the
"Executive"), dated as of the 26th day of January, 2001 (the "Effective Date").

         WHEREAS, the parties desire to enter into an employment agreement
specifying the terms and conditions of the Executive's employment with the
Company; and

         WHEREAS, the Board of Directors of the Company (the "Board") has
determined that it is in the best interests of the Company and its stockholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined herein) of the Company.

         NOW, THEREFORE, in consideration of the premises and the respective
covenants and agreements of the parties herein contained, and intending to be
legally bound hereby, the parties agree as follows:

              1. Term. The term of employment of the Executive by the Company
hereunder shall be for a period commencing on the Effective Date and ending on
the earlier of January 25, 2004 the ("Final Date") or the Date of Termination
(as defined herein) (the "Term").

              2. Nature of Duties. The Executive shall serve as Chairman,
President and Chief Executive Officer of the Company and, subject to the
direction of the Company's Board, shall have full authority for management of
the Company and all of its operations, financial affairs, facilities and
investments, provided, however, that the Board may at any time designate another
person to serve as the President of the Company. The Executive shall serve as a
member of the Board, shall act as the duly authorized representative of the
Board and shall be an ex officio member of all committees of the Board. The
Executive shall devote substantially all of his working time and efforts to the
business and affairs of the Company, provided that the Executive shall be free
to serve as a director or officer or both of such not-for-profit corporations as
he may desire, to join and participate in such committees for community or
national affairs as he may select and to join and serve on business corporation
boards of directors, so long as such activities do not significantly interfere
with the performance of the Executive's duties hereunder and, in the case of
public business corporation boards of which the Executive was not a member when
he executed this Agreement, only with the prior approval of the Board.

              3. Place of Performance. The Executive shall be based at the
principal executive offices of the Company in the city of Scottsdale, Arizona,
except for required business travel.

                                       -1-
<PAGE>   2
              4.   Compensation.

                   (a)  Annual Base Salary. During the Term, the Executive shall
receive an annual base salary of $800,000 (the "Annual Base Salary"), which
shall be paid in conformity with the Company's policies relating to salaried
employees. The Executive shall be eligible for periodic salary increases, but
not decreases, as determined in the sole discretion of the Executive
Compensation Committee of the Board (the "Committee"). Unless increased by the
Committee in its sole discretion, the Annual Base Salary shall apply for each
year during the Term. Any increase in Annual Base Salary shall not serve to
limit or reduce any other obligation to the Executive under this Agreement. The
Annual Base Salary shall not be reduced after any such increase and the term
Annual Base Salary as utilized in this Agreement shall refer to Annual Base
Salary as so increased.

                   (b)  Bonus.

                        (i)   Annual Bonus.  Except as provided herein, in each
fiscal year ending during the Term, the Executive shall be eligible to
participate in such bonus programs as are available to senior executives of the
Company. The terms and conditions of such bonus opportunities shall be
established by the Committee; provided, however, that the aggregate targeted
payout level for achievement of the Executive's annual incentive performance
objectives shall be no less than 70% of the Executive's Annual Base Salary (for
this purpose, the Annual Base Salary shall be the Executive's actual base
earnings for the performance period to which such bonus opportunity pertains).
Each such annual bonus (the "Annual Bonus") shall be paid no later than the end
of the third month of the fiscal year next following the fiscal year for which
the Annual Bonus is awarded, unless the Executive shall elect to defer the
receipt of such Annual Bonus.

                        (ii)  Initial Bonus.  Notwithstanding anything in this
Agreement to the contrary, the Executive shall receive an initial bonus of
$500,000 ("Initial Bonus") payable on the earliest of the following events: (x)
termination of the Executive's employment by the Company for reasons other than
Cause, Disability or death; (y) termination of employment by the Executive with
the consent of the Board; or (z) August 7, 2001, provided, however, that the
Executive's Annual Bonus for the fiscal year 2001 (payable in 2002) shall be
reduced by $292,000.

                   (c)  Stock Options. The Executive shall be eligible for
annual grants of stock options as determined in the sole discretion of the
Committee, subject to such terms and conditions as the Committee deems
appropriate. Notwithstanding any other agreement to the contrary, but subject to
the terms of this Agreement: (i) any stock options granted to the Executive
during the Term shall continue to vest after the expiration of the Term,
provided that the Executive is or becomes a member of the Board immediately
following such expiration, and while the Executive thereafter remains a member
of the Board (the "Board Service Period"); (ii) any options granted to the
Executive prior to the Effective Date as a non-employee Director shall continue
vesting

                                      -2-
<PAGE>   3
through the later of the expiration of the Term or the last day of the
Executive's Board Service Period; and (iii) if the Executive's employment
terminates upon expiration of the Term on or after the Final Date, he will be
treated with regard to all stock options as a "retiree".

                   (d)  Annuity. Upon the later of the expiration of the Term or
the Executive's 65th birthday, the Executive will be entitled to receive, in
monthly installments, a minimum guaranteed life annuity payment of $67,000,
provided that if at the time of commencement of the benefit the Executive is
married to his current spouse, the payment will instead be made in the form of a
100% joint and survivor annuity based on the Executive's life and the life of
his current spouse equal to the actuarial equivalent (calculated by using the
actuarial assumptions contained in the Company's supplemental retirement plan)
of a $67,000 single life annuity on the Executive (the "Annuity"), and further
provided that such Annuity will be reduced by any defined pension benefits
earned by the Executive from the Company. In the event of the Executive's death
prior to commencement of the Annuity, such Annuity shall be paid to his current
spouse as if he had commenced benefits immediately preceding his death.

                   (e)  Management Deferred Compensation Plan. If the
Executive's employment terminates due to Disability or death, by the Company
without Cause, by the Executive for Good Reason, by the Executive with consent
of the Board, or upon expiration of the Term on or after the Final Date, the
Executive shall be treated as a "retiree" for purposes of vesting in any
discounted or other restricted stock units acquired pursuant to the Management
Deferred Compensation Plan (the "Deferred Compensation Plan"). If the Executive
is or becomes a member of the Board immediately following such termination of
employment, the Executive will be entitled to maintain his account balance in
the Deferred Compensation Plan through the Board Service Period.

                   (f)  Other Benefits. During the Term, the Executive (i) shall
be entitled to participate in all employee benefit plans which are generally
available to the Company's senior executives (subject to, and on a basis
consistent with, the terms, conditions and overall administration of such plans,
programs and arrangements); (ii) shall receive pension benefits and supplemental
executive retirement benefits (collectively, "Pension Benefits") which are
generally available to other senior executives of the Company; and (iii) shall
receive health insurance programs, executive medical benefits, life insurance,
accidental death and dismemberment benefits (collectively, "Welfare Benefits")
which are generally available to other senior executives of the Company.

                   (g)  Fringe Benefits and Relocation. During the Term, the
Executive shall be entitled to fringe benefits generally available to other
senior executives of the Company, including, without limitation, payment of
health club dues and expenses related to an annual physical in line with the
Executive's historical practices, use of a Company automobile and cell phone and
payment of related expenses (collectively, the "Fringe Benefits"). If the
Executive so requests, the

                                      -3-
<PAGE>   4
Company will pay for all expenses relating to Executive's relocation from
Florida to Scottsdale, Arizona, and prior to such relocation, the Executive
shall be entitled to weekly-first class airfare between Scottsdale and Florida
and temporary housing in Scottsdale. Upon expiration of the Term, the Company
will pay for any expenses relating to the Executive's relocation from Scottsdale
to Florida. All payments made pursuant to this Section 4(g) shall be grossed-up
and paid on an after-tax basis.

                   (h)  Reimbursement for Expenses. During the Term, the
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the Company's policies,
practices and procedures.

                   (i)  Office and Support Staff. During the Term, the Executive
shall be provided with an appropriate office and with such secretarial and other
support facilities as are commensurate with former Chief Executive Officers of
the Company.

                   (j)  Vacation. During the Term, the Executive shall be
entitled to four (4) weeks' paid vacation per year.

                   (k)  Insurance; Indemnification. During the Term and
thereafter while the Executive could have any liability, the Executive shall be
named as an insured party in any liability insurance policy (including any
director and officer liability policy) maintained by the Company for its
directors and/or senior executive officers. In addition, the Company shall, as
set forth in its respective charter and/or by-laws, or in a separate
indemnification agreement, indemnify the Executive to the fullest extent
permitted under Delaware law. The Company shall also indemnify the Executive, to
the extent permitted by law, with respect to public service activities and
not-for-profit board membership he undertakes in accordance with Section 2.

              5.   Termination of Employment.

                   (a)  Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Term. If the
Company determines in good faith that the Disability of the Executive has
occurred during the Term (pursuant to the definition of Disability set forth
below), it may give to the Executive written notice in accordance with Section
16(b) of this Agreement of its intention to terminate the Executive's
employment. In such event, the Executive's employment with the Company shall
terminate effective on the 30th day after receipt of such notice by the
Executive (the "Disability Effective Date"), provided that, within the 30 days
after such receipt, the Executive shall not have returned to full-time
performance of the Executive's duties. Prior to the Disability Effective Date,
the Executive shall continue to be treated as if fully and actively employed by
the Company for purposes of this Agreement, and without respect to whether or
not the Executive is or is determined to be Disabled. For purposes of this
Agreement, "Disability" shall mean the absence of the Executive from the
Executive's duties with the Company on a full-time basis for 180 consecutive
business

                                      -4-
<PAGE>   5
days as a result of incapacity due to mental or physical illness which is
determined to be total and permanent by a physician selected by the Company or
its insurers and reasonably acceptable to the Executive or the Executive's legal
representative.

                   (b)  By the Company.

                   (i)  Without Cause. The Company may terminate the Executive's
                   employment without Cause.

                   (ii) For Cause. The Company may terminate the Executive's
                   employment during the Term for Cause. For purposes of this
                   Agreement, "Cause" shall mean:

                        (1)  the Executive's conviction of, or plea of nolo
                             contendere to, any felony (other than vicarious
                             liability which results solely from Executive's
                             position as Chief Executive Officer, provided that
                             Executive did not know, or should not have known,
                             of any act or failure to act upon which such
                             conviction or plea is based, or knew, but acted on
                             the advice of counsel);

                        (2)  the Executive's willful misconduct with regard to
                             the Company having a material and demonstrable
                             adverse effect on the Company;

                        (3)  the Executive's willful failure to attempt to
                             perform the services to be rendered hereunder
                             (except in the event of the Executive's incapacity
                             due to mental or physical illness) after receipt of
                             written notice from the Board and a reasonable
                             opportunity for the Executive to cure such willful
                             non-performance; or

                        (4)  the Executive's failure to attempt to adhere to, or
                             take affirmative steps to carry out, any legal and
                             proper directive of the Board, after receipt of
                             written notice from the Board and a reasonable
                             opportunity to cure such non-adherence or failure
                             to act.

The termination of Executive's employment shall not be deemed to be for Cause
unless and until there shall have been delivered to the Executive a copy of a
resolution duly adopted by the affirmative vote of not less than three-quarters
of the entire membership of the Board at a meeting of the Board called and held
for such purpose (after reasonable notice is provided to the Executive and the
Executive is given an opportunity, together with counsel, to be heard before the
Board), finding that, in the good faith opinion of the Board, the Executive is
guilty of the conduct described in subparagraph (1), (2), (3) or (4) above, and
specifying the particulars thereof in detail.

                                      -5-
<PAGE>   6
For purposes of this Agreement, no act, or failure to act, on Executive's part
shall be considered willful unless done, or omitted to be done, by Executive in
bad faith and without reasonable belief that Executive's act or failure to act
was in the Company's best interests. Any act, or failure to act, based upon
authority granted pursuant to a duly adopted Board resolution or advice of
counsel shall be conclusively presumed to be done, or omitted to be done, by
Executive in good faith and in the Company's best interests.

                   (c)  By the Executive.

                   (i) Without Good Reason. The Executive may terminate
                   employment under this Agreement by giving Notice of
                   Termination to the Company in accordance with Section 16(b)
                   of this Agreement no less than 90 days prior to such
                   termination, unless such termination is pursuant to Section
                   (5)(c)(ii) below, or the Company elects to waive or reduce
                   such notice requirement.

                   (ii) With Good Reason. The Executive's employment may be
                   terminated by the Executive for Good Reason. For purposes of
                   this Agreement, "Good Reason" shall mean:

                        (1)  except as contemplated in Section 2 of this
                             Agreement, any diminution in the Executive's title
                             or position or material diminution in authority,
                             duties or responsibilities as set forth herein;

                        (2)  the assignment of any duties or responsibilities to
                             the Executive that are not commensurate with the
                             Executive's title, authority or position as set
                             forth herein;

                        (3)  a decrease in Annual Base Salary or a decrease in
                             the Executive's target annual incentive below 70%
                             of the Annual Base Salary;

                        (4)  any material diminution of benefits described in
                             Sections 4(f), (g), (h), (i) or (j) of this
                             Agreement;

                        (5)  the relocation of the Executive's principal place
                             of employment to a location more than 35 miles from
                             the Company's Scottsdale, Arizona headquarters;

                        (6)  any material breach of this Agreement by the
                             Company after written notice from the Executive and
                             a reasonable opportunity for the Company to cure
                             such breach; or

                        (7)  any failure by the Company to comply with and
                             satisfy

                                      -6-
<PAGE>   7
                             Section 12(c) of this Agreement.

For purposes of this Section 5(c)(ii), any good faith determination of "Good
Reason" made by the Executive following a Change of Control shall be conclusive.

                   (d) Notice of Termination. Any termination by the Company for
Cause, or by the Executive, shall be communicated by Notice of Termination to
the other party hereto given in accordance with Section 16(b) of this Agreement.
For purposes of this Agreement, a "Notice of Termination" means a written notice
which (i) indicates the specific termination provision in this Agreement relied
upon, (ii) to the extent applicable, sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated and (iii) if the Date of Termination
(as defined below) is other than the date of receipt of such notice, specifies
the termination date (which date shall be not more than thirty days after the
giving of such notice). The failure by the Executive or the Company to set forth
in the Notice of Termination any fact or circumstance which contributes to a
showing of Good Reason or Cause shall not waive any right of the Executive or
the Company, respectively, hereunder or preclude the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive's or the Company's rights hereunder.

                   (e) Date of Termination. "Date of Termination" means (i) if
the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability or by
the Executive without Good Reason, the Date of Termination shall be the date on
which the Company notifies the Executive of such termination or 90 days after
the date on which the Executive notifies the Company of such termination (or
such earlier date if approved by the Company), respectively, and (iii) if the
Executive's employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the Disability
Effective Date, as the case may be.

              6.   Obligations of the Company upon Termination

                   (a)  Good Reason; Other Than for Cause or Disability Prior to
a Change of Control. If, during the Term, and prior to a Change of Control, the
Company terminates the Executive's employment other than for Cause or Disability
or the Executive shall terminate employment for Good Reason:

                        (i)   the Company shall pay to the Executive in a lump
sum in cash within 30 days after the Date of Termination an amount equal to the
sum of: (1) the Executive's Annual Base Salary through the Date of Termination
to the extent not theretofore paid; (2) and any bonus earned during the prior
fiscal year but not yet paid to Executive; and (3) any compensation previously
deferred by the Executive (together with any accrued interest or earnings
thereon) and any accrued vacation pay, in each case to

                                      -7-
<PAGE>   8
the extent not theretofore paid (the sum of the amounts described in clauses
(1), (2) and (3) shall be hereinafter referred to as the "Accrued Obligations");

                        (ii)  the Company shall make 24 equal monthly payments
to the Executive equal in the aggregate to the greater of: (x) the total amount
the Executive would have been paid in Annual Base Salary for a period commencing
on the Date of Termination and ending on the Final Date (the "Severance
Protection Period"); or (y) one times (1x) the sum of the Annual Base Salary
plus the full target bonus with respect to the fiscal year in which the Date of
Termination occurs (the "Current Target Bonus");

                        (iii) the Company shall treat the Executive as a
"retiree" with respect to treatment of his outstanding stock options, as well as
with respect to participation in all employee benefit plans, including but not
limited to the Company's annual incentive plan, supplemental retirement plan,
and Deferred Compensation Plan;

                        (iv)  the Executive shall continue to be eligible to
receive Welfare Benefits and Fringe Benefits from the Date of Termination
through the later of: (x) the end of the Severance Protection Period; or (y) the
first anniversary of the Date of Termination (the "Welfare Protection Period");
and

                        (v)   to the extent not theretofore paid or provided,
the Company shall timely pay or provide to the Executive any other amounts or
benefits required to be paid or provided or which the Executive is eligible to
receive under any plan, program, policy or practice or contract or agreement of
the Company (such other amounts and benefits shall be hereinafter referred to as
the "Other Benefits").

                   (b)  Good Reason; Other Than for Cause or Disability
following a Change of Control. If, during the Term, and upon or after the
occurrence of a Change of Control, the Company terminates the Executive's
employment other than for Cause or Disability or the Executive shall terminate
employment for Good Reason:

                        (i)   the Company shall pay to the Executive in a lump
sum in cash within 30 days after the Date of Termination the aggregate of all
Accrued Obligations, plus the product of (x) the Current Target Bonus, and (y) a
fraction, the numerator of which is the number of days in the current fiscal
year through the Date of Termination, and the denominator of which is 365 (the
"Pro-Rata Bonus"); provided, however, that if the Date of Termination occurs on
or prior to August 7, 2001, the Pro-Rata Bonus shall be no less than $500,000,
and further provided that if the Date of Termination occurs after August 7, 2001
and on or before December 31, 2001, the Pro-Rata Bonus shall be reduced by
$292,000;

                        (ii)  the Company shall pay to the Executive in a lump
sum in cash within 30 days after the Date of Termination an amount equal to
three times (3x) the sum of the Annual Base Salary and the greater of: (1) the
highest Annual Bonus received by the Executive from the Company in the three
fiscal years immediately preceding the Date of Termination, provided, however,
that for purposes of this Section

                                      -8-
<PAGE>   9
6(b)(ii), the Annual Bonus for the year 2001 shall not be reduced by $292,000,
or (2) the Current Target Bonus (the "Highest Annual Bonus");

                        (iii) the Company shall treat the Executive as a
"retiree" with respect to treatment of his outstanding stock options, as well as
with respect to participation in all employee benefit plans, including but not
limited to the Company's annual incentive plan, supplemental retirement plan,
and Deferred Compensation Plan;

                        (iv)  the Executive shall continue to be eligible to
receive Welfare Benefits and Fringe Benefits from the Date of Termination
through the later of: (x) the end of the Severance Protection Period; or (y) the
end of the Welfare Protection Period, and the Executive shall continue to accrue
pension credit with respect to his Pension Benefits during such time period; and

                        (v)   to the extent not theretofore paid or provided,
the Company shall timely pay or provide to the Executive the Other Benefits.

              For purposes of this Agreement, a Change of Control shall mean:

                   (1)  The acquisition 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")) (a "Person") of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20% or more of either (i) the then outstanding shares of common stock of the
Company (the "Outstanding Company Common Stock") or (ii) the combined voting
power of the then outstanding voting 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 (1), the
following acquisitions shall not constitute a Change of Control: (i) any
acquisition directly from the Company, (ii) any acquisition by the Company,
(iii) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the Company or
(iv) any acquisition by any corporation pursuant to a transaction which complies
with clauses (i), (ii) and (iii) of subsection (3) of this definition of a
Change of Control; or

                   (2)  Individuals who, as of the date hereof, constitute the
Board (the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a
director subsequent to the date hereof whose election, or nomination for
election by the Company's stockholders, 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 occurs 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

                   (3)  Consummation of a reorganization, merger or
consolidation or

                                      -9-
<PAGE>   10
sale or other disposition of all or substantially all of the assets of the
Company (a "Business Combination"), in each case, unless, following such
Business Combination, (i) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, 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, 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 Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or
substantially all of the Company's assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Company Common
Stock and Outstanding Company Voting Securities, as the case may be, (ii) no
Person (excluding any corporation resulting from such Business Combination or
any employee benefit plan (or related trust) of the Company or such corporation
resulting from such Business Combination) beneficially owns, directly or
indirectly, 20% or more of, respectively, the then outstanding shares of common
stock of the corporation resulting from such Business Combination or the
combined voting power of the then outstanding voting securities of such
corporation except to the extent that such ownership existed prior to the
Business Combination and (iii) at least a majority of the members of the board
of directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such Business
Combination; or

                   (4)  Approval by the stockholders of the Company of a
complete liquidation or dissolution of the Company.

                   Anything in this Agreement to the contrary notwithstanding,
if the Executive's employment with the Company is terminated without Cause prior
to the date on which the Change of Control occurs, but the Executive reasonably
demonstrates that the termination (i) was at the request of a third party who
has taken steps reasonably calculated to effect a Change of Control or (ii)
otherwise arose in connection with or in anticipation of a Change of Control
which has been threatened or proposed, such termination shall be deemed to have
occurred after a Change of Control for purposes of this Agreement provided a
Change in Control shall actually have occurred.

                   (c)  Death. If the Executive's employment is terminated by
reason of the Executive's death during the Term, this Agreement shall terminate
without further obligations to the Executive's legal representatives under this
Agreement, other than for payment of Accrued Obligations and the timely payment
or provision of Other Benefits. Accrued Obligations shall be paid to the
Executive's estate or beneficiary, as applicable, in a lump sum in cash within
30 days of the Date of Termination.

                   (d)  Disability. If the Executive's employment is terminated
by reason of the Executive's Disability during the Term, this Agreement shall
terminate without

                                      -10-
<PAGE>   11
further obligations to the Executive, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits. Accrued
Obligations shall be paid to the Executive in a lump sum in cash within 30 days
of the Date of Termination.

                   (e)  Cause; Other than for Good Reason. If the Executive's
employment shall be terminated for Cause during the Term or if Executive
voluntarily terminates employment during the Term (excluding a termination for
Good Reason), this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay to the Executive (i) his or her
Annual Base Salary through the Date of Termination, (ii) the amount of any
compensation previously deferred by the Executive, and (iii) Other Benefits, in
each case to the extent theretofore unpaid.

              7.  Non-exclusivity of Rights. Nothing in this Agreement shall
prevent or limit the Executive's continuing or future participation in any plan,
program, policy or practice provided by the Company and for which the Executive
may qualify, nor shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company, other
than the Letter Agreement, as defined herein. Amounts which are vested benefits
or which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company at or
subsequent to the Date of Termination shall be payable in accordance with such
plan, policy, practice or program or contract or agreement except as explicitly
modified by this Agreement.

              8.   Entire Agreement. This Agreement and other documents executed
concurrently herewith or referred to herein contain the sole and entire
agreement and understanding of the parties with respect to the subject matters
contained herein, and the parties agree that this Agreement supercedes the
letter agreement dated August 7, 2000 from the Company to the Executive (the
"Letter Agreement"), and that such Letter Agreement is rendered null and void as
of the Effective Date of this Agreement.

              9.   Certain Additional Payments by the Company.

                   (a)  Anything in this Agreement to the contrary
notwithstanding and except as set forth below, in the event it shall be
determined that any payment or distribution by the Company to or for the benefit
of the Executive (whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise, but determined without
regard to any additional payments required under this Section 9) (a "Payment")
would be subject to the excise tax imposed by Section 4999 of the Internal
Revenue Code of 1986, as amended (the "Code") or any interest or penalties are
incurred by the Executive with respect to such excise tax (such excise tax,
together with any such interest and penalties, are hereinafter collectively
referred to as the "Excise Tax"), then the Executive shall be entitled to
receive: (i) an additional payment (a "Gross-Up Payment") in an amount such that
after payment by the Executive of all taxes (including any interest or penalties
imposed with respect to such taxes), including, without limitation, any income
taxes (and any interest and penalties imposed with respect thereto) and Excise
Tax imposed upon the Gross-Up Payment, the

                                      -11-
<PAGE>   12
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments, and (ii) an amount equal to the product of any
deductions disallowed for federal, state or local income tax purposes because of
the inclusion of the Gross-Up Payment in the Executive's adjusted gross income
multiplied by the highest applicable marginal rate of federal, state, or local
income taxation, respectively, for the calendar year in which the Gross-Up
Payment is to be made.

                   (b)  Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Deloitte & Touche LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm") which shall provide
detailed supporting calculations both to the Company and the Executive within 15
business days of the receipt of notice from the Executive that there has been a
Payment, or such earlier time as is requested by the Company. In the event that
the Accounting Firm is serving as accountant or auditor for the individual,
entity or group effecting the Change of Control, the Executive shall appoint
another nationally recognized account firm to make the determinations required
hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder). All fees and expenses of the Accounting Firm shall be borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to this
Section 9, shall be paid by the Company to the Executive within five days of the
receipt of the Accounting Firm's determination. Any determination by the
Accounting Firm shall be binding upon the Company and the Executive. As a result
of the uncertainty in the application of Section 4999 of the Code at the time of
the initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made ("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                   (c)  The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of the Gross-Up Payment. Such notification shall be given
as soon as practicable but no later than ten business days after the Executive
is informed in writing of such claim and shall apprise the Company of the nature
of such claim and the date on which such claim is requested to be paid. The
Executive shall not pay such claim prior to the expiration of the 30-day period
following the date on which it gives such notice to the Company (or such shorter
period ending on the date that any payment of taxes with respect to such claim
is due). If the Company notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive
shall:

                        (i)   give the Company any information reasonably
requested by the Company relating to such claim,

                                      -12-
<PAGE>   13
                        (ii)  take such action in connection with contesting
such claim as the Company shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with respect to
such claim by an attorney reasonably selected by the Company,

                        (iii) cooperate with the Company in good faith in order
to effectively contest such claim, and

                        (iv)  permit the Company to participate in any
proceedings relating to such claim; provided, however, that the Company shall
bear and pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify and hold
the Executive harmless, on an after-tax basis, for any Excise Tax or income tax
(including interest and penalties with respect thereto) imposed as a result of
such representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Section 9(c), the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and the Executive agrees
to prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, however, that if the Company directs the
Executive to pay such claim and sue for a refund, the Company shall advance the
amount of such payment to the Executive, on an interest-free basis and shall
indemnify and hold the Executive harmless, on an after-tax basis, from any
Excise Tax or income tax (including interest or penalties with respect thereto)
imposed with respect to such advance or with respect to any imputed income with
respect to such advance; and further provided that any extension of the statute
of limitations relating to payment of taxes for the taxable year of the
Executive with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company's control of
the contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

              (d)  If, after the receipt by the Executive of an amount advanced
by the Company pursuant to Section 9(c), the Executive becomes entitled to
receive any refund with respect to such claim, the Executive shall (subject to
the Company's complying with the requirements of Section 9(c)) promptly pay to
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 9(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be

                                      -13-
<PAGE>   14
repaid and the amount of such advance shall offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid.

              10.  Confidentiality; Cooperation with Regard to Litigation;
Non-disparagement.

                   (a)  While employed by the Company and thereafter, the
Executive shall not, without the prior written consent of the Company, disclose
to anyone (except in good faith in the ordinary course of business to a person
who will be advised by the Executive to keep such information confidential) or
make use of any Confidential Information (as defined below) except in the
performance of his duties hereunder, or when required to do so by legal process
by any governmental agency having supervisory authority over the business of the
Company or by any administrative or legislative body (including a committee
thereof) or judicial authority that requires him to divulge, disclose or make
accessible such Confidential Information. In the event that the Executive is so
ordered, he shall give prompt written notice to the Company to allow the Company
the opportunity to object to or otherwise resist such order.

                   (b)  "Confidential Information" shall mean all information
concerning the business of the Company or any Subsidiary (as defined below)
relating to any of their products, product development, trade secrets,
customers, suppliers, finances, and business plans and strategies. Excluded from
the definition of Confidential Information is information (i) that is or becomes
part of the public domain, other than through the breach of this Agreement by
the Executive or (ii) regarding the Company's business or industry properly
acquired by the Executive in the course of his career as an executive in the
Company's industry and independent of the Executive's employment by the Company.
For this purpose, information known or available generally within the trade or
industry of the Company or any Subsidiary shall be deemed to be known or
available to the public.

                   (c)  "Subsidiary" shall mean any corporation controlled
directly or indirectly by the Company.

                   (d)  While employed by the Company and thereafter, the
Executive agrees to cooperate with the Company by making himself reasonably
available to testify on behalf of the Company or any Subsidiary in any action,
suit, or proceeding, whether civil, criminal, administrative, or investigative,
and to assist the Company or any Subsidiary in any such action, suit, or
proceeding by providing information and meeting and consulting with the Board or
its representatives or counsel, or representatives or counsel to the Company or
any Subsidiary, as reasonably requested with regard to matters that relate to
the Executive's employment period as an officer of the Company; provided,
however, that the same does not materially interfere with the Executive's then
current professional activities, involve a conflict between the Executive and
the Company or would cause a violation of any court order or governmental
requirement. The Company agrees to reimburse the Executive, on an after-tax
basis, for all

                                      -14-
<PAGE>   15
reasonable expenses actually incurred in connection with his provision of
testimony or assistance, including reasonable legal fees.

                   (e)  While employed by the Company and thereafter, the
Executive agrees that he will not make public statements or representations, or
otherwise communicate, directly or indirectly, in writing, orally, or otherwise,
or take any action (except as Executive reasonably believes is necessary in the
course of performing his duties) which may, directly or indirectly, disparage
the Company or any Subsidiary or their respective officers, directors,
employees, advisors, businesses or reputations. The Company agrees that, while
the Executive is employed by the Company and thereafter, the Company will not
make statements or representations, or otherwise communicate, directly or
indirectly, in writing, orally, or otherwise, or take any action which may,
directly or indirectly, disparage the Executive or his business or reputation.
Notwithstanding the foregoing, nothing in this Agreement shall preclude either
the Executive or the Company from making truthful statements or disclosures that
are required by applicable law, regulation or legal process. Notwithstanding the
foregoing, this Section 10(e) shall be of no further force and effect in the
event that the Executive's employment terminates upon or after the occurrence of
a Change of Control.

              11.  Non-competition and Non-solicitation.

                   (a)  While employed by the Company and for a period of 24
months thereafter (the "Restricted Period"), the Executive shall not engage in
Competition with the Company or any Subsidiary. "Competition" shall mean
engaging in any activity, except as provided below, for a Competitor of the
Company or any Subsidiary, whether as an employee, consultant, principal, agent,
officer, director, partner, shareholder (except as a less than three percent
shareholder of a publicly traded company) or otherwise (together "Employment").
A "Competitor" shall mean any corporation or other entity which derives at least
15% or more of its revenues from the conduct of business which competes,
directly or indirectly, with the business conducted by the Company, as
determined on the Date of Termination of the Executive's employment. If the
Executive commences Employment with any entity that is not a Competitor at the
time the Executive initially becomes employed or becomes a consultant,
principal, agent, officer, director, partner, or shareholder of the entity,
future activities of such entity shall not result in a violation of this
provision unless (i) such activities were contemplated by the Executive at the
time the Executive initially commenced Employment or (ii) the Executive
commences directly or indirectly overseeing or managing the activities of an
entity which becomes a Competitor during the Restricted Period, which activities
are competitive with the activities of the Company or Subsidiary. In addition,
the Executive may be employed by, or otherwise associated with, noncompeting
portions of the competing entity so long as he does not directly or indirectly
oversee, manage or contribute to the competing activities of the Competitor. The
Executive shall not be deemed to be indirectly overseeing, managing or
contributing to the Competitor's activities which are competitive with the
activities of the Company or Subsidiary so long as he does not participate in
any discussions with regard to the conduct of, or take any act intended to
facilitate the success of, the competing business.

                                      -15-
<PAGE>   16
                   (b) Notwithstanding the foregoing Section 11(a), in the event
the Executive desires to accept Employment with a Competitor which, in the
Executive's reasonable judgment, competes with an insignificant portion of the
business conducted by the Company or Subsidiary, the Executive shall have the
right, prior to accepting such Employment, to submit a written request to the
Company for a limited waiver of the Company's right to enforce the provisions of
this Section 11. If the Company determines, in its good faith reasonable
judgment, that the Executive's proposed Employment with the Competitor would not
result in more than an insignificant level of competition with the business
conducted by the Company or Subsidiary at either the time such request is made
or in the then foreseeable future, the Company shall grant the Executive the
requested waiver.

                   (c) During the Restricted Period, the Executive shall not
induce employees of the Company or any Subsidiary to terminate their employment,
nor shall the Executive solicit or encourage any corporation or other entity in
a joint venture relationship, directly or indirectly, with the Company or any
Subsidiary, to terminate or diminish their relationship with the Company or any
Subsidiary or to violate any agreement with any of them. During such period, the
Executive shall not hire, either directly or through any employee, agent or
representative, any employee of the Company or any Subsidiary or any person who
was employed by the Company or any Subsidiary within 90 days of such hiring.

                   (d) The Executive's compliance with the non-competition and
non-solicitation provisions of this Section 11 shall be deemed compliance with
any other non-competition or non-solicitation provision agreed to between the
Executive and the Company, including but not limited to any stock option or
equity grants.

                   (e) Notwithstanding the foregoing, in the event that the
Executive's employment terminates upon or after the occurrence of a Change of
Control, Sections 11(a) and (b) of this Agreement shall be of no further force
and effect.

              12.  Successors.

                   (a) This Agreement is personal to the Executive and without
the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

                   (b) This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                   (c) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be

                                      -16-
<PAGE>   17
required to perform it if no such succession had taken place. As used in this
Agreement, "Company" shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes and agrees to
perform this Agreement by operation of law, or otherwise.

              13.  Full Settlement; No Mitigation; No Offset. The Company's
obligation to make the payments provided for in this Agreement and otherwise to
perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the
Company may have against the Executive or others. In the event of any
termination of employment, the Executive shall be under no obligation to seek
other employment, and amounts due the Executive under this Agreement shall not
be offset by any remuneration attributable to any subsequent employment that he
may maintain other than substantially comparable welfare benefits provided by a
new employer.

              14.  Remedies. If the Executive materially breaches any of the
provisions contained in Sections 10 or 11 above, the Company (a) shall have the
right to immediately terminate all remaining severance payments and benefits due
under Sections 6(a) and (b) of this Agreement and (b) shall have the right to
seek injunctive relief. The Executive acknowledges that such a breach of
Sections 10 or 11 would cause irreparable injury and that money damages would
not provide an adequate remedy for the Company; provided, however, the foregoing
shall not prevent the Executive from contesting the issuance of any such
injunction on the ground that no violation or threatened violation of Sections
10 or 11 has occurred.

              15.  Resolution of Disputes and Legal Fees.

                   (a) Any controversy or claim arising out of or relating to
this Agreement or any breach or asserted breach hereof or questioning the
validity and binding effect hereof arising under or in connection with this
Agreement, other than seeking injunctive relief under Section 14, shall be
resolved by binding arbitration, to be held at an office closest to the
Company's principal offices in accordance with the rules and procedures of the
American Arbitration Association. Judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof.

                   (b) Upon or after the occurrence of a Change of Control, the
Company agrees to pay as incurred, to the full extent permitted by law, all
legal fees, costs of arbitration and related expenses which the Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof)
by the Company, the Executive or others of the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance
thereof (including as a result of any contest by the Executive about the amount
of any payment pursuant to this Agreement), plus in each case interest on any
delayed payment at the applicable Federal rate provided for in Section
7872(f)(2)(A) of the Code (such payments referred to herein as "Legal Fees").
Prior to a Change of Control, the Company agrees to reimburse the Executive for
such Legal Fees after the resolution of a dispute with the Company concerning
enforcement

                                      -17-
<PAGE>   18
or payments pursuant to this Agreement, provided that the Executive prevails in
such dispute. The Company also agrees to reimburse the Executive for any legal
expenses incurred in connection with the Executive's termination of employment
with Hasbro, regardless of the time such expenses are incurred, and regardless
of the outcome of such dispute.

              16.  Miscellaneous.

                   (a) This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without reference to
principles of conflict of laws. The captions of this Agreement are not part of
the provisions hereof and shall have no force or effect. This Agreement may not
be amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

                   (b) All notices and other communications hereunder shall be
in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

                   If to the Executive:

                        Herbert M. Baum
                        Chairman, President and Chief Executive Officer
                        The Dial Corporation
                        15501 North Dial Boulevard
                        Scottsdale, AZ  85260-1619

                   If to the Company:

                        The Dial Corporation
                        15501 North Dial Boulevard
                        Scottsdale, AZ 85260-1619
                        Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

                   (c) The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                   (d) The Company may withhold from any amounts payable under
this Agreement such Federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.

                                      -18-
<PAGE>   19
                   (e) The Executive's or the Company's failure to insist upon
strict compliance with any provision of this Agreement or the failure to assert
any right the Executive or the Company may have hereunder, including, without
limitation, the right of the Executive to terminate employment for Good Reason
pursuant to Section 5(c)(i)-(v) of this Agreement, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement.

                   IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from its Board of Directors,
the Company has caused these presents to be executed in its name on its behalf,
all as of the day and year first above written.

                                       The Dial Corporation

                                       By: /s/ Michael T. Riordan
                                           --------------------------
                                           Michael T. Riordan
                                           Chairman of the Executive
                                           Compensation Committee

                                       /s/ Herbert M. Baum
                                       ------------------------------
                                       Herbert M. Baum

                                      -19-

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