|UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549___________________________________________

FORM 10-Q
|------------------------------------------------------------------------------------------------------------------------------
|(Mark One)                                                                                                                    



|[X]   | Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934.  For the quarterly period ended SEPTEMBER 30, 2003, or                                  
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|[   ] | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.  For the transition period from ______________________ to ______________________.





|Commission File Number:  0-4791                                                  
|---------------------------------------------------------------------------------
|PAUL MUELLER COMPANY(exact name of registrant as specified in its charter)       
|MISSOURI(state or other jurisdiction of incorporation or organization)           
|1600 W. PHELPS ST., SPRINGFIELD, MISSOURI(address of principal executive offices)



|Registrant's telephone number, including area code:  (417) 831-3000(former name, former address and former fiscal year, if changed since last report)
|-----------------------------------------------------------------------------------------------------------------------------------------------------



Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  [X]      No  [   ]



Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    Yes  [ ]      No  [X]



Indicate the number of shares outstanding of the issuer's Common Stock as of November 7, 2003:  1,193,771

END OF PAGE 1

PART I

The condensed financial statements included herein have been prepared by the Registrant without audit, pursuant to the rules and regulations of the Securities and Exchange Commission.  Certain information and footnote disclosures normally included in the financial statements, prepared in accordance with generally accepted accounting principles, have been condensed or omitted pursuant to such rules and regulations, although the Registrant believes that the disclosures are adequate to make the information presented not misleading.  It is suggested that these condensed financial statements be read in connection with the financial statements and the notes thereto included in the Registrant's latest annual report on Form 10-K.  This report reflects all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair statement of the results for the interim period.

END OF PAGE 2



|PAUL MUELLER COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
|--------------------------------------------------------------------------------------------------------------





|ASSETS  
Current Assets:
     Cash and cash equivalents	
     Accounts receivable, less reserve of $967 at 9-30-2003, 
           and $933 at 12-31-2002, for doubtful accounts	
     Costs and estimated earnings in excess of billings	
     Inventories --
           Raw materials and components	
           Work-in-process	
           Finished goods	
     Prepayments	
                   Total Current Assets	
Property, Plant & Equipment	
     Less -- Accumulated depreciation	
                   Net Property, Plant & Equipment	
Other Assets                                                                                                                                                                                                                                                                                                                                                                                                                 | Sept. 30, 2003 
$   1,359 
 
23,816 
2,275 
$ 10,081 
7,666 3,214 
$ 20,961 820 
$ 49,231 
$ 71,329 49,541 
$ 21,788 6,522 
$ 77,541 
======              | Dec. 31, 2002 
$      702 
 
22,983 
2,995 
$   8,093 
2,953 1,283 
$ 12,329 770 
$ 39,779 
$ 69,433 47,239 
$ 22,194 6,364 
$ 68,337 
======         
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities:
     Short-term bank borrowings	
     Current maturities of long-term debt	
     Accounts payable	
     Accrued expenses	
     Advance billings	
     Billings in excess of costs and estimated earnings	
                   Total Current Liabilities	
Long-Term Pension Liabilities	
Other Long-Term Liabilities	
Contingencies	
Shareholders' Investment:
     Common stock, par value $1 per share -- Authorized 20,000,000 
           shares -- Issued 1,369,475 shares at 9-30-2003 and 
           1,360,775 shares at 12-31-2002	
     Preferred stock, par value $1 per share -- Authorized 1,000,000 
           shares -- No shares issued	
     Paid-in surplus	
     Retained earnings	
     Less -- Treasury stock, 175,704 shares at 9-30-2003 
                      and at 12-31-2002, at cost	
                 Deferred compensation	
                 Accumulated other comprehensive loss | $   5,088 
591 
5,818 
11,954 
14,803 229 
$ 38,483 
8,301 
1,088 
   
$   1,369 
-- 
5,154 32,436 
$ 38,959 
2,593 
522 6,175 $ 29,669 
$ 77,541 
====== | $   4,183 
517 
7,042 
8,919 
7,701 25 
$ 28,387 
9,328 
1,605 
   
$   1,361 
-- 
4,858 31,860 
$ 38,079 
2,593 
322 6,147 $ 29,017 
$ 68,337 
======





|The accompanying notes are an integral part of these consolidated condensed balance sheets.
|-------------------------------------------------------------------------------------------

END OF PAGE 3



|PAUL MUELLER COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in Thousands Except Per Share Amounts)
(Unaudited)
|---------------------------------------------------------------------------------------------------------------------------------------------





|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Three Months EndedSeptember 30                                                                                                                                               | Nine Months EndedSeptember 30                                                                                                                                              
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Net Sales	
Cost of Sales	
          Gross Profit	
Selling, General, & Administrative Expenses	
                    Operating Income (Loss)	
Other Income (Expense) --
          Interest income	
          Interest expense	
          Other, net	
Income (Loss) before Income Taxes	
Provision (Benefit) for Income Taxes	
Income (Loss) before Equity in 
     Income (Loss) of Joint Venture	
Equity in Income (Loss) of Joint Venture	
                    Net Income (Loss)	
Earnings (Loss) per Common Share --
          Basic	
          Diluted | 2003 
$ 29,720 22,694 
 
$   7,026 
 5,596 
 
$   1,430 
 
 
$        16 
(24)41 
 $        33 
 
$   1,463 
 461 
 
$   1,002 
 15 
 
$   1,017 
====== 
 
 
$ 0.87 
$ 0.86 | 2002  
$ 36,680  29,989  
$   6,691  5,191  
 
$   1,500  
$        29  
(4) 98  
 $      123  
$   1,623  
 618  
$   1,005  
  5  
$   1,010  
======  
 
$ 0.87  
$ 0.87





|The accompanying notes are an integral part of these consolidated condensed statements.
|---------------------------------------------------------------------------------------

END OF PAGE 4



|PAUL MUELLER COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
|------------------------------------------------------------------------------------------------------------------------





|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Nine Months Ended  September 30                                                                                                                                                                                                                                                                       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Cash Flows from Operating Activities:  
     Net income (loss)	
     Adjustments to reconcile net income (loss) to net cash provided
               by operating activities:
          Equity in (income) loss of joint venture	
          Bad debt expense	
          Depreciation and amortization	
          (Gain) loss on sales of equipment	
          Changes in assets and liabilities --
               (Increase) in accounts and notes receivable	
               Decrease (increase) in costs and estimated earnings 
                    in excess of billings	
               (Increase) in inventories	
               (Increase) decrease in prepayments	
               (Increase) decrease in other assets	
               (Decrease) increase in accounts payable	
               Increase in accrued expenses	
               Increase in advance billings	
               Increase in billings in excess of costs and estimated earnings	
               (Decrease) increase in long-term liabilities	
                    Net Cash Provided by Operating Activities	
Cash Flows (Requirements) from Investing Activities:
     Proceeds from maturities of investments	
     Purchases of investments	
     Proceeds from sales of equipment	
     Additions to property, plant, and equipment	
                    Net Cash (Required) by Investing Activities	
Cash Flows (Requirements) from Financing Activities:
     Short-term bank borrowing, net	
     Proceeds from long-term debt	
     Repayment of long-term debt	
     Dividends paid	
                    Net Cash (Required) Provided by Financing Activities	
Net Increase (Decrease) in Cash and Cash Equivalents	
Cash and Cash Equivalents at Beginning of Period	
                    Cash and Cash Equivalents at End of Period	
Supplemental Disclosures of Cash Flow Information:
     Cash paid during the period for --
          Income taxes	
          Interest | 2003  
$    2,719  
(13) 
265  
2,969  
(3) 
  
(1,098) 
720  
(8,632) 
(50) 
(173) 
(1,224) 
3,035  
7,102  
204  (1,231) 
$    4,590  
$          --  
--  
20  (2,475) 
$  (2,455) 
$       905  
--  
(239) (2,144) $  (1,478) 
$       657  702  
$    1,359  
======  
$    1,493  
$         52





|The accompanying notes are an integral part of these consolidated condensed statements.
|---------------------------------------------------------------------------------------

END OF PAGE 5



|PAUL MUELLER COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 2003 AND 2002, AND DECEMBER 31, 2002
(Unaudited)
|---------------------------------------------------------------------------------------------------------------------------------------------------------
|1.                                                                                                                                                       



|2. | Revenue from sales of fabricated products is recognized upon passage of title to the customer.  Passage of title may occur at the time of shipment from the Registrant's dock, at the time of delivery to the customer's location, or when projects are completed at the customer's location and accepted by the customer.  For large multi-unit projects that are fabricated in the plant, revenue is recognized under the units-of-delivery method, which is a modification of the percentage-of-completion method of accounting for contracts.  The units-of-delivery method recognizes as revenue the contract price of units completed and shipped or delivered to the customer (as determined by the contract) or completed and accepted by the customer at their location.  The applicable manufacturing cost of each unit is identified and charged to cost of sales as revenue is recognized.

Revenues from long-term contracts that involve only a few deliverables and that meet the requirements of Statement of Position 81-1, "Accounting for Performance of Construction-Type and Certain Production-Type Contracts," are recognized on the percentage-of-completion method of accounting.  For plant-fabricated projects, percentage of completion is determined by comparing total manufacturing hours incurred to date for each project to estimated total manufacturing hours for each project.  For field-fabricated projects, percentage of completion is determined by comparing costs incurred to date for each contract to the estimated total costs for each contract at completion.  Estimates of total manufacturing hours and total contract costs for relevant contracts are reviewed continually and, if necessary, updated to properly state the estimates.  Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.  Costs and estimated earnings in excess of billings on uncompleted contracts arise when costs have been incurred and revenues have been recorded, but the amounts are not yet billable under the terms of the contracts.  Such amounts are recoverable from customers upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of the contract.  Billings in excess of costs and estimated earnings on uncompleted contracts arise as a result of advance and progress billings on contracts.

Costs and estimated earnings on uncompleted contracts and related amounts billed as of September 30, 2003, and December 31, 2002, were as follows:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Costs incurred on uncompleted contracts	
Estimated earnings	
Less -- Billings to date | September 30,2003 
$  33,397,746 10,469,817 
$  43,867,563 41,821,467 
$    2,046,096 
========== | December 31,2002 
$  18,651,104 6,381,035 
$  25,032,139 22,062,207 
$    2,969,932 
==========
|------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------

END OF PAGE 6



| | Amounts included in the accompanying Consolidated Condensed Balance Sheets at September 30, 2003, and December 31, 2002, under the following captions were:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------



|Costs and estimated earnings in excess of 
     billings on uncompleted contracts	
Billings in excess of costs and estimated 
     earnings on uncompleted contracts | September 30,2003 
$     2,275,163 (229,067)
$     2,046,096 
========== | December 31,2002 
$     2,994,932 (25,000)
$     2,969,932 
==========
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------ | ----------------------------------------------------------------------



| | Costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings relate to contracts in progress and are included in the accompanying Consolidated Condensed Balance Sheets as current assets and current liabilities, respectively, as they will be liquidated in the normal course of contract completion, although completion of certain long-term contracts may require more than one year.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3. | Inventory is recorded at the lower of cost, on a last-in, first-out (LIFO) basis, or market.

Because the inventory determination under the LIFO method can only be made at the end of each fiscal year based on the inventory levels and costs at that time, interim LIFO determinations, including those at September 30, 2003, must necessarily be based on management's estimate of expected year-end inventory levels and costs.  Since estimates of future inventory levels and prices are subject to many factors beyond the control of management, interim financial results are subject to final year-end LIFO inventory amounts.  Accordingly, LIFO inventory components reported for the period ended September 30, 2003, are estimates based on management's knowledge of the Registrant's production cycle, the costs associated with this cycle, and the sales and purchasing volume of the Registrant.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|4. | The following table sets forth the computation of basic and diluted earnings (loss) per common share:
|-- | -----------------------------------------------------------------------------------------------------



| |                                                                                                                                                                                                                                                                                                                                       | Three Months Ended        September 30                                                        | Nine Months Ended         September 30                                                
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------
| | Net income (loss)	
Shares for basic earnings per common share --
   Weighted average shares outstanding	
Effect of restricted stock and stock
   options granted	
Shares for diluted earnings per common share -- 
   Adjusted weighted average 
      shares outstanding	
Earnings (loss) per common share --
    Basic	
    Diluted | 2003  
$  1,017,000  
=========  
1,168,021  13,736  
1,181,757  
=========  
$ 0.87  
$ 0.86 | 2002 
$  1,010,000 
========= 
1,168,021 5,911 
1,173,932 
========= 
$  0.87 
$  0.87



|5. | As of September 30, 2003, the Registrant had stock-based compensation plans for employees and nonemployee directors.  The Registrant accounts for those plans under the recognition and measurement principles of APB Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations.  No stock-based compensation cost has been reflected in net income, as all options granted under those plans had an exercise price equal to or greater than the market value of the underlying common stock on the date of the grants.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

END OF PAGE 7



| | The following table illustrates the effect on net income (loss) and earnings (loss) per share if the Registrant had applied the fair value recognition provisions of Statement of Financial Accounting Standards ("SFAS") No. 123, "Accounting for Stock-Based Compensation," to stock-based employee and nonemployee director compensation.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |                                                                                                                                                                                                                                                                                                                                                        | Three Months Ended     September 30                                              | Nine Months Ended      September 30                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------- | --------------------------------------------------------------------------------
| | Net income (loss), as reported	
Less:  Stock-based compensation expense determined 
          under fair-value-based method for all awards, 
          net of related tax	
Pro forma net income (loss)	
Earnings (loss) per common share --
     Basic -- as reported	
     Basic -- pro forma	
     Diluted -- as reported	
     Diluted -- pro forma | 2003 
$ 1,017,000 18,000 
$    999,000 
======== 
$ 0.87 
$ 0.86 
$ 0.86 
$ 0.85 | 2002 
$ 1,010,000 13,000 
$    997,000 
======== 
$ 0.87 
$ 0.85 
$ 0.87 
$ 0.85



|6. | The Registrant has three reportable segments:  Industrial Equipment, Dairy Farm Equipment, and Field Fabrication.  Net sales include revenues from sales to unaffiliated and affiliated customers before elimination of intersegment sales.  Intersegment eliminations are primarily sales from the Industrial Equipment segment to the Field Fabrication segment.  The "Other/Corporate" classification includes other revenues and expenses and corporate other income (expense).

Net sales and profitability for each segment for the three months and nine months ended September 30, 2003 and 2002, were as follows:
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |                                                  | Dairy FarmEquipment      | IndustrialEquipment     | FieldFabrication         | OtherCorporate           | IntersegmentEliminations   | Consolidated           
| | ------------------------------------------------ | ------------------------ | ----------------------- | ------------------------ | ------------------------ | -------------------------- | -----------------------
| | Three Months Ended 9-30-03                       |                          |                         |                          |                          |                           
| | Net sales	
Income (loss) before 
    income tax  | $   4,522    
$      360 | $ 22,838    
$   1,010  | $   1,069    
$    (235) | $   1,475    
$      328 | $    (184)   
$         -- | $ 29,720    
$   1,463 
| | Three Months Ended 9-30-02                       |                          |                         |                          |                          |                           
| | Net sales	
Income (loss) before 
    income tax  | $   5,138    
$   1,012  | $ 24,854    
$    (436) | $   6,590    
$      747 | $   1,244    
$      300 | $ (1,146)   
$         --  | $ 36,680    
$   1,623 
| | Nine Months Ended 9-30-03                        |                          |                         |                          |                          |                           
| | Net sales	
Income before income tax              | $ 11,239    
$      675  | $ 67,388    
$   2,736  | $   7,006    
$      166 | $   3,056    
$      628 | $ (1,429)   
$         --  | $ 87,260    
$   4,205 
| | Nine Months Ended 9-30-02                        |                          |                         |                          |                          |                           
| | Net sales	
Income (loss) before  
    income tax | $ 15,457    
$   2,719   | $ 52,348    
$ (4,074)  | $   8,932    
$      329 | $   2,898    
$      620 | $ (1,844)   
$         --  | $ 77,791    
$    (406)



|7. | The Registrant reports comprehensive income (loss) and its components in accordance with Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income."  Comprehensive income and its components, net of tax, are summarized below:
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |                                                                                                           | Three Months EndedSeptember 30                      | Nine Months Ended      September 30            
| | --------------------------------------------------------------------------------------------------------- | --------------------------------------------------- | -----------------------------------------------
| | Net income (loss)	
Foreign currency translation adjustment, net of tax	
Total comprehensive income (loss) | 2003  
$1,017,000  (24,000) 
$   993,000  
======== | 2002 
$1,010,000 (14,000)
$   996,000 
========

END OF PAGE 8



|8. | The Registrant has a $7,000,000 bank borrowing facility that expires on May 31, 2004.  Borrowings under the facility incur interest at the LIBOR Daily Floating Rate plus 1.75%.  At September 30, 2003, $5,088,000 was outstanding under the facility.

The Registrant also has a $2,750,000 standby letter-of-credit facility; and as of September 30, 2003, there were standby letters of credit totaling $582,800 issued under the facility, with all to expire within one year.

In addition, the Registrant has a long-term note outstanding as of September 30, 2003, in the principal amount of $834,000.  The note is repayable in quarterly installments of $104,250 with the final payment due August 2, 2005, and with a variable interest rate of the LIBOR Daily Floating Rate plus 1.75%.  The note is secured by equipment with a cost of $1,563,000.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|9. | The Companies provide warranty reserves for product defects as they become known, as a significant portion of the Companies' sales are custom-fabricated products built to customer specifications.  Warranty claims tend to occur shortly after delivery of a project; and a provision for estimated warranty expense is made at the time of notification by the customer of a defect in material or workmanship.  Service department personnel handle all notifications from customers concerning warranty claims, prepare an estimate of the cost to repair or replace the defective item, and establish a reserve for each specific claim.  Warranty claim reserves are reviewed monthly; and reserves are adjusted to properly reflect the remaining estimated costs to complete the repair or replacement.

The following is a reconciliation of changes in the warranty reserve for the nine months ended September 30, 2003:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Beginning balance -- December 31, 2002	
Costs incurred to satisfy warranty claims	
Aggregate warranty reserves made	
Aggregate changes to warranty reserves	
Ending balance -- September 30, 2003 | $     894,523 
(1,028,598) 
613,412 211,627 
$     690,964 
=========
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------



|10. | A lawsuit was filed in May 2002 against the Registrant alleging breach-of-contract/breach-of-express-warranty in connection with the sale of a heat exchanger in October 2000.  The Plaintiff alleges in the suit that it has suffered direct, consequential, and incidental damages in excess of $3,100,000.  The suit is scheduled for trial in December 2003.  The Registrant believes, at this time, it is not feasible to determine the likelihood of an unfavorable outcome or the amount of the potential liability, if any.  The Registrant believes it has a meritorious defense and intends to vigorously defend the lawsuit.

The Registrant and its subsidiaries are involved in other legal proceedings incident to the conduct of their business.  It is management's opinion that none of these matters will have a material adverse effect on the consolidated financial position, results of operations, or cash flows.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

END OF PAGE 9

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF  
                 FINANCIAL CONDITION AND RESULTS OF OPERATION

PAUL MUELLER COMPANY AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF 
OPERATING RESULTS AND FINANCIAL CONDITION

The following is Management's discussion and analysis of the significant factors that have affected the results and financial condition reflected in the Registrant's accompanying Consolidated Condensed Financial Statements.

Safe Harbor For Forward-Looking Statements  --  This Management's Discussion and Analysis of Operating Results and Financial Condition contains certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact.  All statements regarding future performance, growth, sales and earnings projections, conditions, or developments are forward-looking statements.  Words such as "anticipates," "believes," "intends," "expects," "may," "will," "should," "could," "plans," "forecasts," "estimates," "predicts," "projects," "potential," "continue," "outlook," and similar expressions may be intended to identify forward-looking statements.

Actual future results may differ materially from those described in the forward-looking statements due to a variety of factors, including the fact that the economy generally, and the dairy farm equipment, industrial equipment and field-fabrication markets specifically, are all currently subject to uncertainty, making it difficult to determine if past experience is a good guide to the future.  A downturn in the Registrant's business segments could adversely affect the Registrant's revenues and results of operations.  Other factors affecting forward-looking statements, some of which are identified in the discussion relating to such forward-looking statements, include, but are not limited to, the following: specific economic conditions in the food, dairy, beverage, chemical, pharmaceutical, biotechnological, and other process industries, and the dairy farm equipment market and the impact of such conditions on the Registrant's customers in such markets; the cyclical nature of some of the Registrant's markets; milk prices, feed costs, weather conditions, dairy farm consolidation, and other factors affecting the profitability of dairy farmers; the price of stainless steel; the highly competitive nature of the markets for the Registrant's products, as well as pricing pressures that may result from such competitive conditions; business relationships with major customers and suppliers; the continued operation and viability of the Registrant's major customers; the Registrant's execution of internal performance plans; difficulties or delays in manufacturing; cost-reduction and productivity efforts; competing technologies and difficulties in entering new markets, both domestic and foreign; changes in product mix; future levels of indebtedness and capital spending; claims, including, without limitation, warranty claims, product liability claims, charges or dispute resolutions; ability of suppliers to provide materials as needed and the Registrant's ability to recover any price increases for materials and product pricing; the Registrant's ability to attract and retain key technical and other personnel; labor relations; the failure of customers to make timely payment; any inadequacy of the Registrant's intellectual property protection or the potential for third-party claims of infringement; global economic factors, including currency exchange rates; general economic conditions, including interest rates, the rate of inflation, and commercial and consumer confidence; energy prices; governmental laws and regulations affecting domestic and foreign operations, including tax obligations; changes in accounting standards; worldwide political stability; the effects of terrorist activities and resulting political or economic instability, including U.S. military action overseas; and the effect of acquisitions, divestitures, restructurings, product withdrawals, and other unusual events.



The Registrant cautions the reader that these lists of cautionary statements and risk factors may not be exhaustive.  The Registrant expressly disclaims any obligation or undertaking to release publicly any updates or changes to these forward-looking statements that may be made to reflect any future events or circumstances.

END OF PAGE 10

OPERATING RESULTS



Although sales were lower during the third quarter of 2003 compared to the third quarter of 2002, net income was slightly higher.  Net income for the three months ended September 30, 2003, was $1,017,000 compared to net income of $1,010,000 for the three-month period ended September 30, 2002.



Net sales for the third quarter of 2003 were $6,960,000 lower than the third quarter of 2002, as sales were lower in all segments.  The most significant variance occurred in the Field Fabrication segment, where sales were $5,521,000 lower during the third quarter of 2003 compared to the third quarter of 2002.  The decrease in sales was due to a backlog that was 94% lower at June 30, 2003, compared to June 30, 2002, and a significant decrease in order entry year-to-date through September 30, 2003 compared to the same period for 2002.  Industrial Equipment sales were $2,016,000 less for the third quarter of 2003 compared to the third quarter of 2002.  The Industrial Equipment segment backlog was 11% lower at June 30, 2003, compared to June 30, 2002, and was the primary reason for the decrease in sales.  Dairy Farm Equipment sales were $616,000 less during the third quarter of 2003 compared to the third quarter of 2002, as the Dairy Farm Equipment backlog at June 30, 2003, was 46% lower than the backlog at June 30, 2002.  Also, the overall decline in sales for the Dairy Farm Equipment segment occurred in the domestic market, as weak milk prices, particularly during the first half of 2003, contributed to lower order entry during the first nine months of 2003 compared to the comparable period of 2002.



The gross profit rate for the third quarter of 2003 was 23.6% compared to a gross profit rate of 18.2% for the third quarter of 2002.  The improvement in the gross profit rate was principally due to a higher gross margin rate (which is a measure of the variable profit margin) and lower net manufacturing burden.  Net manufacturing burden expense was lower for the third quarter of 2003, as burden was being absorbed due to the high production level, versus the third quarter of 2002, when the sales volume exceeded the level of production and inventory was reduced.  Additionally, during the first nine months of 2002, over 100 new production employees were added to the Springfield facility to handle the workload due to the significant increase in the backlog.  Approximately 50 of those employees were added during the third quarter of 2002, and this increased manufacturing burden expense for the third quarter of 2002, as a significant investment was incurred to obtain a sufficient number of employees and to provide them with adequate training.  The gross profit rate during the third quarter of 2003 was adversely affected by an increase to the LIFO reserve that was due to the higher stainless steel prices experienced during 2003.  The effect of the LIFO provision was to increase cost of sales by $300,000 when comparing the third quarter results of 2003 to the third quarter results of 2002.



Selling, general, and administrative expenses were higher by $404,000 for the three months ended September 30, 2003, versus the three months ended September 30, 2002.  Higher expense levels were recorded for personnel costs, insurance, legal fees, depreciation, and potential uncollectible accounts.



Other income was lower for the third quarter of 2003 compared to the third quarter of 2002, as an increased level of borrowing led to higher interest expense and lower interest income; and miscellaneous income was higher during the third quarter of 2002 compared to the third quarter of 2003.



On a segment basis, income before tax for the third quarter of 2003 for the Industrial Equipment segment was $1,010,000 versus a loss before tax of $436,000 recorded for the third quarter of 2002.  Performance improved in spite of lower sales due to an improvement in the gross margin rate and a reduction in net manufacturing burden for the reason discussed above.  Sales and the gross margin rate were both higher for the BioPharm product line during the third quarter of 2003 compared to the third quarter of 2002; and this contributed favorably to the overall profitability for the segment.  Overall, the other product lines within the segment experienced a decline in sales during the 2003 third quarter versus the 2002 third quarter.



Income before tax for the Dairy Farm Equipment segment was $360,000 for the third quarter of 2003 compared to income before tax of $1,012,000 for the third quarter of 2002.  The reduced performance was due to lower sales, coupled with a lower gross margin rate.  Also, net manufacturing burden expense was greater for the third quarter of 2003 compared to the third quarter of 2002 due to the lower production and sales level, which resulted in fewer units to absorb the fixed costs.  The lower sales level and production activity were due to the decrease in order entry and a decrease in backlog mentioned above.

END OF PAGE 11

The Field Fabrication segment incurred a loss of $235,000 before tax for the third quarter of 2003 compared to income before tax of $747,000 for the third quarter of 2002.  The variance in results was due to significantly lower sales during the third quarter of 2003 compared to the third quarter of 2002, as the backlog at June 30, 2003, was 94% lower than the backlog at June 30, 2002.



The effective tax rate for the three months ended September 30, 2003, was 31.5% versus 38.1% for the three months ended September 30, 2002.  The effective tax rate varied from the statutory tax rate (34%) for 2003 principally as a result of tax credits.  The effective tax rate varied from the statutory tax rate for 2002 primarily as a result of the effect of state income taxes and the nondeductible portion of meals and entertainment expenses.



For the nine months ended September 30, 2003, net income was $2,719,000 compared to a net loss for the nine months ended September 30, 2002, of $328,000.  The primary factor contributing to the improved performance was higher sales for 2003 compared to 2002.



Sales for the nine months ended September 30, 2003, were $9,469,000 greater than sales for the nine months ended September 30, 2002.  The increase occurred solely within the Industrial Equipment segment, as sales declined for both the Dairy Farm Equipment and Field Fabrication segments.  Sales for the Industrial Equipment segment were $15,040,000 higher for the first nine months of 2003 compared to the first nine months of 2002.  The increase in sales was solely attributable to the BioPharm product line, as all other product lines within the Industrial Equipment segment had lower sales for 2003 compared to 2002 for the comparable period.  The improvement in sales was due to a backlog that was 89% greater at December 31, 2002, versus December 31, 2001; and the increase in the backlog was attributable to the BioPharm product line.  Sales for the Dairy Farm Equipment segment declined by $4,218,000 when comparing the first nine months of 2003 to the first nine months of 2002.  The reduced level of sales was attributable to a beginning backlog for 2003, which was $1,954,000 less than the backlog at the beginning of 2002, coupled with a significantly lower level of order entry for the first nine months of 2003 versus the first nine months of 2002.  Field Fabrication sales were $1,926,000 less for the first nine months of 2003 versus the first nine months of 2002.  The reduction in sales was the result of the significantly lower order entry level during the first nine months of 2003 versus the first nine months of 2002.



The gross profit rate for the nine months ended September 30, 2003, was 22.4% compared to a gross profit rate of 18.4% for the comparable period of 2002.  The improvement in the gross profit rate was primarily attributable to the increase in sales and an increase in the gross margin rate, which is a measure of the variable profit margin.  The gross profit rate for 2003 was adversely affected by higher net manufacturing burden primarily due to the higher sales volume.  Additionally, as a result of the increase in stainless steel pricing during 2003, the LIFO reserve was increased, which increased the cost of sales by $434,000 when comparing the first nine months of 2003 to the first nine months of 2002.



Selling, general, and administrative expenses were $563,000 higher for the first nine months of 2003 versus the first nine months of 2002.  Higher expenses were recorded for personnel costs, trade shows, legal fees, insurance, and provisions for potentially uncollectible accounts.



Other income for the nine months ended September 30, 2003, was $68,000 lower than the nine months ended September 30, 2002, as increased borrowing needs led to higher interest expense and a decrease in interest income.



The effective tax rates for the nine months ended September 30, 2003 and 2002, were 35.6% and 21.7%, respectively.  These rates varied from the statutory rate (34%) primarily due to the effect of state income taxes and nondeductible meals and entertainment expenses.



On a segment basis, income before tax for the nine months ended September 30, 2003, was $2,736,000 for the Industrial Equipment segment compared to a loss of $4,074,000 for the comparable period of 2002.  The improvement in results primarily related to an increase in sales of $15,040,000, coupled with an increase in the gross margin rate.  For the Dairy Farm Equipment segment, income before income tax was $675,000 for the nine months ended September 30, 2003, compared to income before tax of $2,719,000 for the comparable period of 2002.  The primary reason for the decrease in results was a decrease in sales of $4,218,000 for 2003 compared to 2002.  Field Fabrication recorded income before income tax of $166,000 for the nine months ended September 30, 2003, compared to income before tax of $329,000 for the comparable period of 2002.  A reduction in sales of $1,926,000 for 2003 compared to 2002 was the primary reason for the lower level of income before tax.

END OF PAGE 12

Market risks relating to the Registrant's operations result primarily from changes in foreign-exchange rates and stainless steel prices.  The Registrant periodically enters into foreign-exchange forward or spot contracts to hedge the exposure to foreign-currency-denominated purchase transactions.  Forward contracts generally have durations of less than three months.  Foreign-currency-denominated purchases were $316,000 and $1,054,000 for the nine months ended September 30, 2003 and 2002, respectively.  There were no foreign-exchange forward contracts outstanding at September 30, 2003 and 2002.  There was approximately $94,000 in foreign currencies held at September 30, 2003, and $19,000 held at September 30, 2002.  The risk of an increase in stainless steel prices, which can significantly impact large Industrial Equipment and Field Fabrication segment projects that extend over several months, is managed by contracting for stainless steel at the time the project is obtained.



Concentration of credit risk, with respect to receivables, is limited due to the large number of customers and their dispersion across a wide geographic area.  The Registrant performs credit evaluations on new customers and periodically reviews the financial condition of existing customers.  For Industrial Equipment orders and Field Fabrication segment projects, down payments and/or progress payments are generally required based on the dollar value of the order and customer creditworthiness.  Foreign receivables generally are secured by irrevocable letters of credit confirmed by major U.S. banks.



Looking to the balance of 2003, there are factors that could affect the results of operations.  Although the average price of milk domestically has increased over the last four months and feed costs are expected to remain favorable for the balance of the year, demand for Dairy Farm Equipment products is not expected to increase in the near term as dairy farmers are still recovering from the effects of the very low milk prices during the last twelve months ended June 30, 2003.  Any further decline in milk prices could have an adverse effect on order entry, sales, and profitability for the Dairy Farm Equipment segment.



Current economic conditions and the weak capital expenditure level in the United States have had an adverse effect on order entry for the Industrial Equipment and Field Fabrication segments; and for the first nine months of 2003, new orders entered are down 21% and 89%, respectively, compared to the comparable period of 2002.  Within the Industrial Equipment segment, the biopharm product line has also been affected and has experienced a 24% decline in order entry for the first nine months of 2003 versus the first nine months of 2002.  A continuing low rate of capital expenditures may have an adverse effect on order entry and sales and on profitability for the segments for the balance of the year and into the next year.  Also, as a result of the low level of capital expenditures, pricing continues to be very competitive for the projects that are available.  The aggressive pricing environment may adversely affect the number of projects that can be obtained and the profitability of the projects that are obtained.



The price of stainless steel has increased since the beginning of 2003 due to increased surcharges.  Surcharges, which are assessed at the time of shipment from the vendor, have been implemented due to the increase in and the volatility of the market prices of nickel, chromium, and molybdenum (materials used in the production of stainless steel).  The effect of surcharges on stainless steel prices may delay projects or reduce profitability if the increases cannot be passed along in the form of higher prices.  The effect of higher stainless steel prices may also adversely affect the results of operations, as additional increases may be required to the LIFO reserve.



In general, the Registrant's business is not subject to seasonal variation in demand for its products.  However, because orders for certain projects can be large in terms of sales dollars, a small number of large orders can have a significant impact on the Registrant's sales in any one particular quarter.  As a result, a relatively small reduction or delay in the number of orders shipped or delivered or the percentage of completion achieved can have a material effect on the Registrant's results for any particular quarter.  Gross margins may vary from quarter to quarter due to the variations in the profitability of large orders, as well as the mix of the various products manufactured or fabricated by the Registrant.  Accordingly, the results of operations for the Registrant for any one particular quarter are not necessarily indicative of the results that may be expected for any subsequent quarter of the calendar year.

END OF PAGE 13

The backlog was $46,461,000 at September 30, 2003, compared to a backlog of $71,074,000 at September 30, 2002.  The reduction in the backlog level was due to the high level of sales of $123,618,000 for the twelve months ended September 30, 2003, and a decrease in order entry of 30% during the twelve months ended September 30, 2003, compared to the comparable period of 2002.  .



The backlog for the Industrial Equipment segment (exclusive of shop work for the Field Fabrication segment) was $44,204,000 and $58,368,000 at September 30, 2003 and 2002, respectively.  The decrease in the Industrial Equipment segment backlog related primarily to the biopharm product line, as its backlog decreased by $11,557,000 between September 30, 2003, and September 30, 2002.  The backlog for the Dairy Farm Equipment segment was $1,654,000 and $2,919,000 at September 30, 2003 and 2002, respectively.  The Field Fabrication segment backlog was $603,000 at September 30, 2003, versus $9,787,000 as of September 30, 2002.  Virtually all of the September 30, 2003, backlog is scheduled to be recognized as sales over the next twelve months.



The level of backlog at any quarter end is not necessarily indicative of the Registrant's future level of sales for a subsequent quarter due to extensive engineering time and the long manufacturing or fabrication cycle that is required for certain projects.  Orders in backlog can be subject to delays during the fabrication process due to the complex nature of many projects.  Also, orders in backlog are subject to delays in completion and/or shipment dates requested by customers.  The Registrant may be unable to recognize sales for orders in backlog when initially scheduled due to delays and contingencies; and this could have a significant impact on the level of sales and the results for a subsequent quarter.



FINANCIAL CONDITION



The consolidated financial condition and the liquidity of the Registrant as of September 30, 2003, have not changed significantly since December 31, 2002.  There were no major commitments for capital expenditures as of September 30, 2003.



The Registrant used internally generated funds and its borrowing facility to fund operations, capital expenditures, and dividends during the nine months ended September 30, 2003.  Net cash provided by operations for the first nine months of 2003 was $4,590,000 compared to $2,832,000 for the same period for 2002.  The 2003 cash flow was primarily attributable to increases in advance billings, accrued expenses, depreciation, and net income for the first nine months of 2003 compared to the first nine months of 2002.  Capital expenditures for the nine months ended September 30, 2003 and 2002, were $2,475,000 and $3,775,000, respectively.  Dividends paid for the first nine months of 2003 were $2,144,000 compared to $2,130,000 for the comparable period of 2002.

Management believes that its cash flow from operations and its credit facility will continue to be sufficient to satisfy the Registrant's working capital requirements, normal capital expenditure levels, and anticipated dividends.  A policy requiring down payments and/or progress payments on large projects provides a favorable effect on cash flow.  Management believes the bank borrowing facility can be increased, if necessary, to provide additional liquidity.



A significant economic downturn or reduction in the number of long-term contracts acquired in the biopharm systems product line or in the Field Fabrication segment could lead to contraction of the business, which would have an adverse impact on liquidity.  If that occurred, the Registrant would restructure its operations to insure that cash flow from operations would be sufficient to maintain an appropriate level of liquidity.



The Registrant has a $7,000,000 bank borrowing facility that expires on May 31, 2004; and $5,088,000 had been borrowed under the facility as of September 30, 2003.  Additionally, the Registrant has a facility of $2,750,000 to support standby letters of credit.  As of September 30, 2003, there was $582,800 of standby letters of credit issued and outstanding under the facility; and all are set to expire within one year.  The Registrant also has an $834,000 note outstanding (repayable in quarterly installments of $104,250 through August 2, 2005) that is secured by equipment.

END OF PAGE 14

NONAUDIT SERVICES OF INDEPENDENT AUDITORS -- Pursuant to Section 10A(i)(2) of the Securities Exchange Act of 1934, as added by Section 202 of the Sarbanes-Oxley Act of 2002, we are responsible for disclosing to investors the nonaudit services approved by our Audit Committee to be performed by KPMG LLP, our independent auditors.  Nonaudit services are defined in the law as services other than those provided in connection with an audit or review of the financial statements of the Registrant.  The Audit Committee approved nonaudit (a) tax compliance services in connection with preparation of the Registrant's tax returns, (b) research and consultation on various federal, state, and local tax issues, (c) services to assist in documentation of accounting processes and procedures, and (d) tax consulting services relative to a research and development credit review during the nine months ended September 30, 2003





ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



Certain information concerning market risk is set forth in Item 2 on page 13 and is incorporated herein by reference.  Other disclosure requirements are not submitted because they were not applicable or they were not material.





ITEM 4.   CONTROLS AND PROCEDURES



The Registrant carried out an evaluation, under the supervision and with the participation of the Registrant's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures as of September 30, 2003 (the evaluation date).  Based on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of the evaluation date, the Registrant's disclosure controls and procedures are effective in alerting them, on a timely basis, to material information relating to the Registrant required to be included in the Registrant's reports filed or submitted under the Exchange Act.  There have been no significant changes in the Registrant's internal control over financial reporting during the Registrant's quarter ended September 30, 2003, which has materially affected, or is reasonably likely to materially affect, such internal control over financial reporting.

END OF PAGE 15

PART II

Item 6.       Exhibits and Reports on Form 8-K.



| | a. | Exhibits
ExhibitNumber

(10)                                                                                                                                                                                                                      | Exhibit

The Paul Mueller Company Profit Sharing and Retirement Savings Plan, restated effective April 1, 2001, and adopted by the Registrant on March 28, 2001, was attached as Exhibit (10), page 13, of the Registrant's Form 10-Q for the quarter ended September 30, 2001, and is incorporated herein by reference.  Amendments adopted by the Registrant on January 8, 2002, were attached as Exhibit (10), page 12, of the Registrant's Form 10-Q for the quarter ended March 31, 2002, and are incorporated herein by reference. | Sequentially
NumberedPage                                                                                                                   
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                   | i.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | The Nonstandardized Adoption Agreement -- Prototype Cash or Deferred Profit-Sharing Plan was adopted by the Registrant on September 29, 2003
| |    |                                                                                                                                                                                                                                                   | ii.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | The Loan Policy Document was adopted by the Registrant on September 29, 2003                                                                
| |    | (31.1)                                                                                                                                                                                                                                            | Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                                                                                                                        | 74                                                                                                                                          
| |    | (31.2)                                                                                                                                                                                                                                            | Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                                                                                                                        | 75                                                                                                                                          
| |    | (32.1)                                                                                                                                                                                                                                            | Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 76                                                                                                                                          
| |    | (32.2)                                                                                                                                                                                                                                            | Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 77                                                                                                                                          
| | b. | Reports on Form 8-K -- A Form 8-K for the Registrant's second quarter earnings release was filed on July 21, 2003, and is incorporated herein by reference.  No other Form 8-Ks have been filed during the three months ended September 30, 2003.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                          | PAUL MUELLER COMPANY                                                                                 
|------------------------- | -----------------------------------------------------------------------------------------------------
|DATE:    November 7, 2003 | /S/ DONALD E. GOLIK 
Donald E. Golik -- Senior Vice President       
     and Chief Financial Officer

END OF PAGE 16

|Case #:  QK61757
THIS SPECIMEN PLAN DOCUMENT HAS BEEN PREPARED BY DIVERSIFIED INVESTMENT ADVISORS SOLELY AS A GUIDE FOR THE EMPLOYER'S ATTORNEY AND IS, OF COURSE, SUBJECT TO HIS OR HER LEGAL REVIEW AND ADVICE.

IN ADOPTING THE PLAN, CERTAIN FORMAL STEPS SHOULD BE TAKEN TO CONFIRM THE VALIDITY AND EFFECTIVE DATE OF SUCH ADOPTION.  AS A GENERAL RULE, IT IS ADVISABLE TO RECORD IN THE MINUTES OF A MEETING OF THE EMPLOYER'S BOARD OF DIRECTORS A BRIEF SUMMARY OF THE ACTION TAKEN WITH RESPECT TO THE PLAN AS WELL AS A RECITATION OF THE ADOPTION DATE AND THE EFFECTIVE DATE, IF DIFFERENT.  THE ULTIMATE RESPONSIBILITY, OF COURSE, FOR THE TIMELY AND PROPER ADOPTION OF THE PLAN RESTS WITH THE EMPLOYER AND ITS ATTORNEY.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|THIS PLAN HAS BEEN AMENDED AND RESTATED FOR GUST AND
MUST BE EXECUTED BYSEPTEMBER 30, 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

END OF PAGE 17

|NONSTANDARDIZED ADOPTION AGREEMENT
PROTOTYPE CASH OR DEFERRED PROFIT-SHARING PLAN
Sponsored by
DIVERSIFIED INVESTMENT ADVISORS, INC.                                                          
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|The Employer named below hereby establishes a Cash or Deferred Profit-Sharing Plan for eligible Employees as provided in this Adoption Agreement and the accompanying Basic Plan Document #01.

|I. | EMPLOYER INFORMATIONIf more than one Employer is adopting the Plan, complete this section based on the lead Employer.  Additional Employers who are members of the same controlled group or affiliated service group may adopt this Plan by completing and executing Section XX(A) of the Adoption Agreement.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | A.                                                                                                                                                                                                                                                                                                           
|   | B.                                                                                                                                                                                                                                                                                                           
|   | C.                                                                                                                                                                                                                                                                                                           
|   | D.                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                              
|   | E.                                                                                                                                                                                                                                                                                                           
|   | F.                                                                                                                                                                                                                                                                                                           
|   | G.                                                                                                                                                                                                                                                                                                           
|   | H.                                                                                                                                                                                                                                                                                                           
|   | I.                                                                                                                                                                                                                                                                                                           

|II. | EFFECTIVE DATE
|--- | --------------
|    | A.            
|    | B.            
|1  

END OF PAGE 18

| | C. | Amended or Restated Plans for GUST:  
This is an amendment or restatement of an existing Plan to comply with GUST [The Uruguay Round Agreements, Pub. L. 103-465 (GATT); The Uniformed Services Employment and Reemployment Rights Act of 1994, Pub. L. 103-353 (USERRA); The Small Business Job Protection Act of 1996, Pub. L. 104-188 (SBJPA) [including Section 414(u) of the Internal Revenue Code]; The Taxpayer Relief Act of 1997, Pub. L. 105-34 (TRA'97); The Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206 (IRSRRA); and The Community Renewal Tax Relief Act of 2000, Pub. L. 106-554 (CRA)].  The initial Effective Date of the Plan was January 1, 1989.  Except as provided for in the Plan, the Effective Date of this amendment or restatement is June 1, 2002.  
(The restatement date should be no earlier than the first day of the current Plan Year.  The Plan contains appropriate retroactive Effective Dates with respect to provisions of GUST.)
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    | Pursuant to Code Section 411(d)(6) and the Regulations issued thereunder, an Employer cannot reduce, eliminate or make subject to Employer discretion any Code Section 411(d)(6) protected benefit.  Where this Plan document is being adopted to amend another plan that contains a protected benefit not provided for in the Basic Plan Document #01, the Employer may complete Schedule A as an addendum to this Adoption Agreement.  Schedule A describes such protected benefits and shall become part of this Plan.  If a prior plan document contains a plan feature not provided for in the Basic Plan Document #01, the Employer may attach Schedule B describing such feature.  Provisions listed on Schedule B are not covered by the IRS Opinion Letter issued with respect to the Basic Plan Document #01.                                                                                                                                                                                    
| | D. | Effective Date for Elective Deferrals:  
If different from above, the Elective Deferral provisions shall be effective .                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

|III. | DEFINITIONS
|---- | -----------
|     | A.         
|     |            
|     |            
|     |            
|     |            
|     |            
|     |            
|     |            
|     |            
|     |            
|     |            
|     |            
|     |            
|2   

END OF PAGE 19

|  |  | Compensation Computation Periods must be consistent for all contribution types, except discretionary.  If different Computation Periods are selected, the selection for ADP/ACP testing will be deemed to be the election for all purposes except for Discretionary Contributions.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |  | 1.                                                                                                                                                                                                                                                                                
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  | 2.                                                                                                                                                                                                                                                                                
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  | 3.                                                                                                                                                                                                                                                                                
|  |  | 4.                                                                                                                                                                                                                                                                                
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|  |  |                                                                                                                                                                                                                                                                                   
|3

END OF PAGE 20

|  |       |                                                                                                                                                                                                                                                                                                                                      | h.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Holiday and vacation pay         
|- | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------
|  |       |                                                                                                                                                                                                                                                                                                                                      | i.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Other:  Statutory fringe benefits
|  | B.    | "Disability"                                                                                                                                                                                                                                                                                                                        
|  | [   ] | 1.                                                                                                                                                                                                                                                                                                                                   | As defined in paragraph 1.26 of the Basic Plan Document #01.                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  | [   ] | 2.                                                                                                                                                                                                                                                                                                                                   | As defined in the Employer's Disability Insurance Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|  | [X]   | 3.                                                                                                                                                                                                                                                                                                                                   | An individual will be considered to be disabled if he or she is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or to be of long, continued, and indefinite duration.  An individual shall not be considered to be disabled unless he or she furnishes proof of the existence thereof in such form and manner as the Secretary may prescribe.                                                            
|  | C.    | "Highly Compensated Employees -- Top-Paid Group Election"  For Plans that are being amended and restated for GUST, please complete Schedule C outlining the preamendment operation of the Plan, as well as this section of the Adoption Agreement.  The testing elections made below will apply to the future operation of the Plan.
|  | [   ] | 1.                                                                                                                                                                                                                                                                                                                                   | Top-Paid Group Election:  
In determining who is a Highly Compensated Employee, the Employer makes the Top-Paid Group election.  The effect of this election is that an Employee (who is not a 5% owner at any time during the determination year or the look-back year) who earned more than $80,000, as indexed for the look-back year, is a Highly Compensated Employee if the Employee was in the Top-Paid Group for the look-back year.  This election is applicable for the Plan Year in which this Plan is effective.
|  | [   ] | 2.                                                                                                                                                                                                                                                                                                                                   | Calendar Year Data Election:  
If the Plan Year is not the calendar year, the prior year computation period for purposes of determining if an Employee earned more than $80,000, as indexed, is the calendar year beginning in the prior Plan Year.  This election is applicable for the Plan Year in which this Plan is effective.                                                                                                                                                                                         
|  | D.    | "Hour of Service"  
Hours shall be determined by the method selected below.  The method selected shall be applied to all Employees covered under the Plan as follows:                                                                                                                                                               
|  | [   ] | 1.                                                                                                                                                                                                                                                                                                                                   | Not applicable.  For all purposes under the Plan, a Year of Service (Period of Service) is defined as Elapsed Time.                                                                                                                                                                                                                                                                                                                                                                                                         
|  | [X]   | 2.                                                                                                                                                                                                                                                                                                                                   | On the basis of actual hours for which an Employee is paid or entitled to payment.                                                                                                                                                                                                                                                                                                                                                                                                                                          
|  | [   ] | 3.                                                                                                                                                                                                                                                                                                                                   | On the basis of days worked.  An Employee shall be credited with ten (10) Hours of Service if the Employee would be credited with at least one (1) Hour of Service during the day.                                                                                                                                                                                                                                                                                                                                          
|  | [   ] | 4.                                                                                                                                                                                                                                                                                                                                   | On the basis of weeks worked.  An Employee shall be credited with forty-five (45) Hours of Service if the Employee would be credited with at least one (1) Hour of Service during the week.                                                                                                                                                                                                                                                                                                                                 
|  | [   ] | 5.                                                                                                                                                                                                                                                                                                                                   | On the basis of semi-monthly payroll periods.  An Employee shall be credited with ninety-five (95) Hours of Service if the Employee would be credited with at least one (1) Hour of Service during the semi-monthly payroll period.                                                                                                                                                                                                                                                                                         
|4

END OF PAGE 21

|  | [   ] | 6.                                                                                                                                                                                                                                                                                                                                                     | On the basis of months worked.  An Employee shall be credited with one-hundred-ninety (190) Hours of Service if the Employee would be credited with at least one (1) Hour of Service during the month.
|- | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  | E.    | "Integration Level"                                                                                                                                                                                                                                                                                                                                   
|  | [X]   | 1.                                                                                                                                                                                                                                                                                                                                                     | Not applicable.  The Plan's allocation formula is not integrated with Social Security.                                                                                                                
|  | [   ] | 2.                                                                                                                                                                                                                                                                                                                                                     | The maximum earnings considered wages for the Plan Year for Social Security withholding purposes without regard to Medicare.                                                                          
|  | [   ] | 3.                                                                                                                                                                                                                                                                                                                                                     | % (not more than 100%) of the amount considered wages for such Plan Year for Social Security withholding purposes without regard to Medicare.                                                         
|  | [   ] | 4.                                                                                                                                                                                                                                                                                                                                                     | $, provided that such amount is not in excess of the amount determined under paragraph (E)(2) above.                                                                                                  
|  | [   ] | 5.                                                                                                                                                                                                                                                                                                                                                     | One dollar over 80% of the amount considered wages for such Plan Year for Social Security withholding purposes without regard to Medicare.                                                            
|  | [   ] | 6.                                                                                                                                                                                                                                                                                                                                                     | 20% of the maximum earnings considered wages for such Plan Year for Social Security withholding purposes without regard to Medicare.                                                                  
|  | F.    | "Limitation Year"  
Unless elected otherwise below, the Limitation Year shall be the Plan Year.  
The 12-consecutive month period commencing on January 1st and ending on December 31st.  
If applicable, there will be a short Limitation Year commencing on  and ending on .  Thereafter, the Limitation Year shall end on the date specified above.
|  | G.    | "Net Profit"                                                                                                                                                                                                                                                                                                                                          
|  | [X]   | 1.                                                                                                                                                                                                                                                                                                                                                     | Not applicable.  Employer contributions to the Plan are not conditioned on profits.                                                                                                                   
|  | [   ] | 2.                                                                                                                                                                                                                                                                                                                                                     | Net Profits are defined as follows:                                                                                                                                                                   
|  |       | [   ]                                                                                                                                                                                                                                                                                                                                                  | a.                                                                                                                                                                                                    
|  |       | [   ]                                                                                                                                                                                                                                                                                                                                                  | b.                                                                                                                                                                                                    
|  |       |                                                                                                                                                                                                                                                                                                                                                        | c.                                                                                                                                                                                                    
|  |       |                                                                                                                                                                                                                                                                                                                                                        | [   ]                                                                                                                                                                                                 
|  |       |                                                                                                                                                                                                                                                                                                                                                        | [   ]                                                                                                                                                                                                 
|  |       |                                                                                                                                                                                                                                                                                                                                                        | [   ]                                                                                                                                                                                                 
|  |       |                                                                                                                                                                                                                                                                                                                                                        | [   ]                                                                                                                                                                                                 
|  |       | Elective Deferrals can always be contributed regardless of profits.  Top-Heavy minimums are required regardless of profits.                                                                                                                                                                                                                           
|5

END OF PAGE 22

|  | H.    | "Plan Year"  The 12-consecutive month period commencing on January 1st and ending on December 31st.  
If applicable, there will be a short Plan Year commencing on  and ending on .  Thereafter, the Plan Year shall end on the date specified above.
|- | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  | I.    | "QDRO Payment Date"                                                                                                                                                                                                                                  
|  | [X]   | 1.                                                                                                                                                                                                                                                   
|  | [   ] | 2.                                                                                                                                                                                                                                                   
|  | J.    | "Qualified Joint and Survivor Annuity"                                                                                                                                                                                                               
|  | [X]   | 1.                                                                                                                                                                                                                                                   
|  | [   ] | 2.                                                                                                                                                                                                                                                   
|  | [   ] | 3.                                                                                                                                                                                                                                                   
|  | K.    | Qualified Preretirement Survivor Annuity"  
Do not complete this section if paragraph (J)(1) was elected.                                                                                                                                            
|  | [   ] | 1.                                                                                                                                                                                                                                                   
|  | [   ] | 2.                                                                                                                                                                                                                                                   
|  |       | If this provision applies but no selection is made, the Qualified Preretirement Survivor Annuity shall be 50%.                                                                                                                                       
|  | L.    | "Valuation of Plan Assets"  
The assets of the Plan shall be valued on the last day of the Plan Year and on the following Valuation Date(s):                                                                                                         
|  | [   ] | 1.                                                                                                                                                                                                                                                   
|  | [X]   | 2.                                                                                                                                                                                                                                                   
|  | [   ] | 3.                                                                                                                                                                                                                                                   
|6

END OF PAGE 23

| |  |  | Contribution Type               | Valuation Date                                            | 
| |  |  | ------------------------------- | --------------------------------------------------------- | 
| |  |  | All Contributions               | a                                                         | 
| |  |  | Discretionary                   | _____                                                     | 
| |  |  | Non-Safe Harbor Match Formula 1 | _____                                                     | 
| |  |  | QNEC                            | _____                                                     | 
| |  |  | QMAC                            | _____                                                     | 
| |  |  | Elective Deferrals              | _____                                                     | 
| |  |  | Voluntary After Tax             | _____                                                     | 
| |  |  | Required After Tax              | _____                                                     | 
| |  |  | Safe Harbor                     | _____                                                     | 
| |  |  | Non-Safe Harbor Match Formula 2 | _____                                                     | 
| |  |  | a.                              | Daily valued.                                            
| |  |  | b.                              | The last day of each month.                              
| |  |  | c.                              | The last day of each quarter in the Plan Year.           
| |  |  | d.                              | The last day of each semi-annual period in the Plan Year.
| |  |  | e.                              | At the discretion of the Plan Administrator.             
| |  |  | f.                              | Other:  .                                                

|IV. | ELIGIBILITY REQUIREMENTS  
Complete the following using the eligibility requirements as specified for each contribution type.  To become a Participant in the Plan, the Employee must satisfy the following eligibility requirements.                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | Contribution Type                                                                                                                                                                                                                                                               
|    | All Contributions                                                                                                                                                                                                                                                               
|    | Elective Deferrals                                                                                                                                                                                                                                                              
|    | Voluntary After-tax                                                                                                                                                                                                                                                             
|    | Required After-tax                                                                                                                                                                                                                                                              
|    | Safe Harbor Contribution*                                                                                                                                                                                                                                                       
|    | Non-Safe Harbor Match
     Formula 1                                                                                                                                                                                                                                            
|    | QNECs                                                                                                                                                                                                                                                                           
|    | QMACs                                                                                                                                                                                                                                                                           
|    | Employer Discretionary                                                                                                                                                                                                                                                          
|    | Non-Safe Harbor Match
     Formula 2                                                                                                                                                                                                                                            
|    | * Ifany age or Service requirement selected is more restrictive than that which is imposed on any Employee contribution, that group of Employees will be subject to the ADP and/or ACP testing as prescribed under IRS Notices 98-52, 2000-3 and any applicable IRS Regulations.
|7  

END OF PAGE 24

|  | A.    | Age:                                                                                                                            
|- | ----- | --------------------------------------------------------------------------------------------------------------------------------
|  |       | 1.                                                                                                                              
|  |       | 2.                                                                                                                              
|  | B.    | Service:                                                                                                                        
|  |       | 1.                                                                                                                              
|  |       | 2.                                                                                                                              
|  |       | 3.                                                                                                                              
|  |       | 4.                                                                                                                              
|  |       | 5.                                                                                                                              
|  |       | 6.                                                                                                                              
|  |       | 7.                                                                                                                              
|  |       | 8.                                                                                                                              
|  |       | 9.                                                                                                                              
|  |       |                                                                                                                                 
|  |       | A Year of Service for eligibility purposes is defined as follows (choose one):  Do not enter this definition in the table above.
|  | [   ] | 10.                                                                                                                             
|  | [   ] | 11.                                                                                                                             
|  | [X]   | 12.                                                                                                                             
|  | [   ] | 13.                                                                                                                             
|  | C.    | Employee Class Exclusions:                                                                                                      
|  |       | 1.                                                                                                                              
|8

END OF PAGE 25

|  |    | 2.                                                                                                                                                                                                                                                      | Employees who are non-resident aliens [within the meaning of Code Section 7701(b)(1)(B)] who receive no Earned Income [within the meaning of Code Section 911(d)(2)] from the Employer which constitutes income from sources within the United States [within the meaning of Code Section 861(a)(3)].                                                                                                                         
|- | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |    | 3.                                                                                                                                                                                                                                                      | Employees compensated on an hourly basis.                                                                                                                                                                                                                                                                                                                                                                                     
|  |    | 4.                                                                                                                                                                                                                                                      | Employees compensated on a salaried basis.                                                                                                                                                                                                                                                                                                                                                                                    
|  |    | 5.                                                                                                                                                                                                                                                      | Employees compensated on a commission basis.                                                                                                                                                                                                                                                                                                                                                                                  
|  |    | 6.                                                                                                                                                                                                                                                      | Leased Employees.                                                                                                                                                                                                                                                                                                                                                                                                             
|  |    | 7.                                                                                                                                                                                                                                                      | Highly Compensated Employees.                                                                                                                                                                                                                                                                                                                                                                                                 
|  |    | 8.                                                                                                                                                                                                                                                      | The Plan shall exclude from participation any nondiscriminatory classification of Employees determined as follows:  Learner helpers, any Employee who is represented for collective bargaining purposes, unless included in the Plan pursuant to an agreement or understanding recognized under the National Labor Relations Act and all employees of the controlled group employers who do not affirmatively adopt this Plan.
|  | D. | Eligibility Computation Period:  The initial Eligibility Computation Period shall commence on the date on which an Employee first performs an Hour of Service and the first anniversary thereof.  Each subsequent Computation Period shall commence on:
|  |    | 1.                                                                                                                                                                                                                                                      | Not applicable.  The Plan has a Service requirement of less than one (1) year or uses the Elapsed Time method to determine eligibility.                                                                                                                                                                                                                                                                                       
|  |    | 2.                                                                                                                                                                                                                                                      | The anniversary of the Employee's employment commencement date and each subsequent 12-consecutive month period thereafter.                                                                                                                                                                                                                                                                                                    
|  |    | 3.                                                                                                                                                                                                                                                      | The first day of the Plan Year which commences prior to the first anniversary date of the Employee's employment commencement date and each subsequent Plan Year thereafter.                                                                                                                                                                                                                                                   
|  | E. | Entry Date Options:                                                                                                                                                                                                                                    
|  |    | 1.                                                                                                                                                                                                                                                      | The first day of the month coinciding with or next following the date on which an Employee meets the eligibility requirements.                                                                                                                                                                                                                                                                                                
|  |    | 2.                                                                                                                                                                                                                                                      | The first day of the payroll period coinciding with or next following the date on which an Employee meets the eligibility requirements.                                                                                                                                                                                                                                                                                       
|  |    | 3.                                                                                                                                                                                                                                                      | The earlier of the first day of the Plan Year, or the first day of the fourth, seventh or tenth month of the Plan Year coinciding with or next following the date on which an Employee meets the eligibility requirements.                                                                                                                                                                                                    
|  |    | 4.                                                                                                                                                                                                                                                      | The earlier of the first day of the Plan Year or the first day of the seventh month of the Plan Year coinciding with or next following the date on which an Employee meets the eligibility requirements.                                                                                                                                                                                                                      
|  |    | 5.                                                                                                                                                                                                                                                      | The first day of the Plan Year following the date on which the Employee meets the eligibility requirements.  If this election is made, the Service waiting period cannot be greater than one-half year and the minimum age requirement may not be greater than age 20-1/2.                                                                                                                                                    
|  |    | 6.                                                                                                                                                                                                                                                      | The first day of the Plan Year nearest the date on which an Employee meets the eligibility requirements.  This option can only be selected for Employer related contributions.                                                                                                                                                                                                                                                
|9

END OF PAGE 26

|      |       | 7.                                                                                                                                                                                                                                                                                                                                | The first day of the Plan Year during which the Employee meets the eligibility requirements.  This option can only be selected for Employer related contributions.
|----- | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |       | 8.                                                                                                                                                                                                                                                                                                                                | The Employee's date of hire.                                                                                                                                      
|      | F.    | Employees on Effective Date:                                                                                                                                                                                                                                                                                                     
|      | [X]   | 1.                                                                                                                                                                                                                                                                                                                                | All Employees will be required to satisfy both the age and Service requirements specified above.                                                                  
|      | [   ] | 2.                                                                                                                                                                                                                                                                                                                                | Employees employed on the Plan's Effective Date do not have to satisfy the age requirement specified above.                                                       
|      | [   ] | 3.                                                                                                                                                                                                                                                                                                                                | Employees employed on the Plan's Effective Date do not have to satisfy the Service requirement specified above.                                                   
|[   ] | G.    | Special Waiver of Eligibility Requirements:  
The age and/or Service eligibility requirements specified above shall be waived for those eligible Employees who are employed on the following date for the contribution type(s) specified.  This waiver applies to either the age or Service requirement or both as elected below.
|      |       | WaiverDate                                                                                                                                                                                                                                                                                                                        | Waiver of AgeRequirement                                                                                                                                          
|      |       | _____                                                                                                                                                                                                                                                                                                                             | _____                                                                                                                                                             
|      |       | _____                                                                                                                                                                                                                                                                                                                             | _____                                                                                                                                                             
|      |       | _____                                                                                                                                                                                                                                                                                                                             | _____                                                                                                                                                             
|      |       | _____                                                                                                                                                                                                                                                                                                                             | _____                                                                                                                                                             
|      |       | _____                                                                                                                                                                                                                                                                                                                             | _____                                                                                                                                                             
|      |       | _____                                                                                                                                                                                                                                                                                                                             | _____                                                                                                                                                             
|      |       | _____                                                                                                                                                                                                                                                                                                                             | _____                                                                                                                                                             
|      |       | _____                                                                                                                                                                                                                                                                                                                             | _____                                                                                                                                                             



|V. | RETIREMENT AGES
|-- | ---------------
|   | A.             
|   | [X]            
|   | [   ]          
|   |                
|   |                
|   |                
|   | B.             
|   | [   ]          
|   | [X]            
|10

END OF PAGE 27

| |  | 3.    | The Early Retirement Date shall be:
| |  | ----- | -----------------------------------
| |  | [   ] | a.                                 
| |  | [X]   | b.                                 



|VI.   | EMPLOYEE CONTRIBUTIONS
|----- | ----------------------
|[X]   | A.                    
|      | [   ]                 
|      | [   ]                 
|      | [   ]                 
|      | [X]                   
|      | B.                    
|      | [X]                   
|      | [   ]                 
|[   ] | C.                    
|      | [   ]                 
|      | [   ]                 
|      | [   ]                 
|      |                       
|      | D.                    
|      | [X]                   
|      | [   ]                 
|      |                       
|11   

END OF PAGE 28

|   | E.    | Required After-tax Contributions (Thrift Savings Plans only):                                                                                                                                                                                                                           
|-- | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | [X]   | 1.                                                                                                                                                                                                                                                                                      
|   | [   ] | 2.                                                                                                                                                                                                                                                                                      
|   |       | [   ]                                                                                                                                                                                                                                                                                   
|   |       | [   ]                                                                                                                                                                                                                                                                                   
|   | F.    | Rollover Contributions:                                                                                                                                                                                                                                                                 
|   | [   ] | 1.                                                                                                                                                                                                                                                                                      
|   | [   ] | 2.                                                                                                                                                                                                                                                                                      
|   | [X]   | 3.                                                                                                                                                                                                                                                                                      
|   | G.    | Elective Plan to Plan Transfer Contributions:                                                                                                                                                                                                                                           
|   | [X]   | 1.                                                                                                                                                                                                                                                                                      
|   | [   ] | 2.                                                                                                                                                                                                                                                                                      
|   | [   ] | 3.                                                                                                                                                                                                                                                                                      
|   | H.    | Changes to Elective Deferrals:  
Participants shall be permitted to terminate their Elective Deferrals at any time upon proper and timely notice to the Employer.  Modifications to Participants' Elective Deferrals will become effective on a prospective basis as provided for below:
|   | [X]   | 1.                                                                                                                                                                                                                                                                                      
|   | [   ] | 2.                                                                                                                                                                                                                                                                                      
|   | [   ] | 3.                                                                                                                                                                                                                                                                                      
|   | [   ] | 4.                                                                                                                                                                                                                                                                                      
|   | [   ] | 5.                                                                                                                                                                                                                                                                                      
|   | I.    | Reinstatement of Elective Deferrals:  
Participants who terminate their Elective Deferrals shall be permitted to reinstate their Elective Deferrals on a prospective basis as provided for below:                                                                                       
|   | [X]   | 1.                                                                                                                                                                                                                                                                                      
|   | [   ] | 2.                                                                                                                                                                                                                                                                                      
|   | [   ] | 3.                                                                                                                                                                                                                                                                                      
|   | [   ] | 4.                                                                                                                                                                                                                                                                                      
|   | [   ] | 5.                                                                                                                                                                                                                                                                                      
|12

END OF PAGE 29

|VII.  | SAFE HARBOR PLAN PROVISIONS                                                                                                                                                               
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|[   ] | The Employer elects to comply with the Safe Harbor Cash or Deferred Arrangement provisions of Article XI of Basic Plan Document #01 and elects one of the following contribution formulas:
|      | A.                                                                                                                                                                                        
|      | [   ]                                                                                                                                                                                     
|      | [   ]                                                                                                                                                                                     
|      |                                                                                                                                                                                           
|      |                                                                                                                                                                                           
|[   ] | B.                                                                                                                                                                                        
|      |                                                                                                                                                                                           
|[   ] | C.                                                                                                                                                                                        
|[   ] | D.                                                                                                                                                                                        
|      | [   ]                                                                                                                                                                                     
|      | [   ]                                                                                                                                                                                     
|      |                                                                                                                                                                                           
|[   ] | E.                                                                                                                                                                                        
|[   ] | F.                                                                                                                                                                                        
|13   

END OF PAGE 30

|                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Additional Non-Safe Harbor contributions may be made to the Plan pursuant to Article XI of Basic Plan Document #01.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------
|[   ]                                                                                                                                                                                                                                                                                                                      | G.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Limitations on Safe Harbor Matching Contributions:  If a Safe Harbor Matching Contribution is made to the Plan:    
|                                                                                                                                                                                                                                                                                                                           | [   ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 1.                                                                                                                 
|                                                                                                                                                                                                                                                                                                                           | [   ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2.                                                                                                                 
|                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | [   ]                                                                                                              
|                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | [   ]                                                                                                              
|                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | [   ]                                                                                                              
|If no election is made, the payroll period method will be used.  If one of the Matching Contribution calculation periods at Section VII(G)(2) above is selected, Matching Contributions must be deposited to the Plan not later than the last day of the calendar quarter next following the quarter to which they relate.
|                                                                                                                                                                                                                                                                                                                           | If the Safe Harbor Plan provisions are elected, the antidiscrimination tests at Article XI of the Basic Plan Document #01 are not applicable.  Safe Harbor Contributions made are subject to the withdrawal restrictions of Code Section 401(k)(2)(B) and Treasury Regulations Section 1.401(k)-1(d); such contributions (and earnings thereon) must not be distributable earlier than separation from Service, death, Disability, an event described in Code Section 401(k)(10), or in the case of a profit-sharing or stock bonus plan, the attainment of age 59-1/2.  Safe Harbor Contributions are NOT available for Hardship withdrawals.  
The ACP Test Safe Harbor is automatically satisfied if the only Matching Contribution to the Plan is either a Basic Matching Contribution or an Enhanced Matching Contribution that does not provide a match on Elective Deferrals in excess of 6% of Compensation.  For Plans that allow Voluntary or Required After-tax Contributions, the ACP Test is applicable with regard to such contributions.Employees eligible to make Elective Deferrals to this Plan must be eligible to receive the Safe Harbor Contribution in the Plan listed above, to the extent required by IRS Notices 98-52 and 2000-3.



|VIII. | EMPLOYER CONTRIBUTIONS  
The Employer shall make contributions to the Plan in accordance with the formula or formulas selected below.  The Employer's contribution shall be subject to the limitations contained in Articles III and XI.  For this purpose, a contribution for a Plan Year shall be limited by Compensation earned in the Limitation Year that ends with or within such Plan Year.  
Do not complete this Section of the Adoption Agreement if the Plan only offers a Safe Harbor Contribution.  A Plan that offers both a Safe Harbor Matching Contribution as well as an additional Matching Contribution, which is specified below, must complete both Sections VII and VIII of the Adoption Agreement.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      | A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|14   

END OF PAGE 31

|   |  | Type ofContribution                                                                                                                                                                                                                                                                              | Non-Safe
Harbor
MatchingFormula 1                                                  | Matching
ComputationPeriod                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Limitations | Non-Safe
Harbor
MatchingFormula 2 | Matching
ComputationPeriod | Limitations
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------- | --------------------------------- | -------------------------- | -----------
|   |  | Elective Deferrals                                                                                                                                                                                                                                                                               | a                                                                                  | g                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | ____        | c                                 | g                          | ____       
|   |  | Voluntary
    After-tax                                                                                                                                                                                                                                                                          | ____                                                                               | ____                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | ____        | ____                              | ____                       | ____       
|   |  | Required After-tax                                                                                                                                                                                                                                                                               | ____                                                                               | ____                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | ____        | ____                              | ____                       | ____       
|   |  | 403(b) Deferrals                                                                                                                                                                                                                                                                                 | ____                                                                               | ____                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | ____        | ____                              | ____                       | ____       
|   |  | If any election is made with respect to "403(b) Deferrals" above, and if this Plan is used to fund any Employer Contributions, Employer Contributions will be based on the Elective Deferrals made to an existing 403(b) plan sponsored by the Employer.  
Name of corresponding 403(b) plan:  .
|   |  | 1.                                                                                                                                                                                                                                                                                               | Matching Contribution Formulas:  Elective Deferral Matching Contribution Formulas:
|   |  |                                                                                                                                                                                                                                                                                                  | a.                                                                                 | Percentage of Deferral Match:  The Employer shall contribute to each eligible Participant's account an amount equal to 25% of the Participant's Elective Deferrals up to a maximum of 1.5% or $ of Compensation.                                                                                                                                                                                                                                                                                                                                                         
|   |  |                                                                                                                                                                                                                                                                                                  | b.                                                                                 | Uniform Dollar Match:  The Employer shall contribute to each eligible Participant's account $ if the Participant contributes at least % or $  of Compensation.  The Employer's contribution will be made up to a maximum of % of Compensation.                                                                                                                                                                                                                                                                                                                           
|   |  |                                                                                                                                                                                                                                                                                                  | c.                                                                                 | Discretionary Match:  The Employer's Matching Contribution shall be determined by the Employer with respect to each Plan Year.  The Matching Contribution shall be contributed to each eligible Participant in accordance with the nondiscriminatory formula determined by the Employer.  If this Plan is also utilizing a Safe Harbor Contribution, pursuant to Section VII of this Adoption Agreement, Discretionary Matching Contributions may not exceed 4% of Compensation.                                                                                         
|   |  |                                                                                                                                                                                                                                                                                                  | d.                                                                                 | Tiered Match:  The Employer shall contribute to each eligible Participant's account an amount equal to:  --      % of the first % of the Participant's Compensation contributed, and  
--      % of the next % of the Participant's Compensation contributed, and  
--      % of the next % of the Participant's Compensation contributed  
The Employer's contribution will be made up to the [   ] greater of [   ] lesser of % of Compensation, or $.  The percentages specified above may not increase as the percentage of the Participant's contribution increases.
|15

END OF PAGE 32

|   |  |  | e.                                                  | Percentage of Compensation Match:  The Employer shall contribute to each eligible Participant's account % of Compensation if the eligible Participant contributes at least % of Compensation.  
The Employer's contribution will be made up to the [   ] greater of [   ] lesser of % of Compensation or $.                                                                                                                                                                                                    
|-- |  |  | --------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |  |  | f.                                                  | Proportionate Compensation Match:  The Employer shall contribute to each eligible Participant who defers at least % of Compensation, an amount determined by multiplying such Employer Matching Contribution by a fraction, the numerator of which is the Participant's Compensation and the denominator of which is the Compensation of all Participants eligible to receive such an allocation.  
The Employer's contribution will be made up to the [   ] greater of [   ] lesser of % of Compensation or $.
|   |  |  | g.                                                  | Length of Service Match:  The Employer shall make Matching Contributions equal to the formula determined under the following schedule:                                                                                                                                                                                                                                                                                                                                                                         
|   |  |  |                                                     | Participant's TotalYears of Service                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |  |  |                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |  |  |                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |  |  |                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |  |  |                                                     | Each separate matching percentage contribution must satisfy Code Section 401(a)(4) nondiscrimination requirements and the ACP test.                                                                                                                                                                                                                                                                                                                                                                            
|   |  |  | Voluntary After-tax Matching Contribution Formulas:
|   |  |  | h.                                                  | Percentage of Deferral Match:  The Employer shall contribute to each eligible Participant's account an amount equal to % of the Participant's Voluntary After-tax Contributions up to a maximum of % or $ of Compensation.                                                                                                                                                                                                                                                                                     
|   |  |  | i.                                                  | Uniform Dollar Match:  The Employer shall contribute to each eligible Participant's account $ if the Participant contributes at least % or $ of Compensation.  The Employer's contribution will be made up to the maximum of % of Compensation.                                                                                                                                                                                                                                                                
|   |  |  | j.                                                  | Discretionary Match:  The Employer's Matching Contribution shall be determined by the Employer with respect to each Plan Year.  The Matching Contribution shall be contributed to each eligible Participant in accordance with the nondiscriminatory formula determined by the Employer.                                                                                                                                                                                                                       
|   |  |  | Required After-tax Matching Contribution Formulas: 
|   |  |  | k.                                                  | Percentage of Deferral Match:  The Employer shall contribute to each eligible Participant's account an amount equal to % of the Participant's Required After-tax Contributions up to a maximum of %, or $ of Compensation.                                                                                                                                                                                                                                                                                     
|   |  |  | l.                                                  | Uniform Dollar Match:  The Employer shall contribute to each eligible Participant's account $ if the Participant contributes at least % or $ of Compensation.  The Employer's contribution will be made up to the maximum of % of Compensation.                                                                                                                                                                                                                                                                
|16

END OF PAGE 33

|   |  |    | m.                                                                                                                                                                                                                                                                                                                                                  | Discretionary Match:  The Employer's Matching Contribution shall be determined by the Employer with respect to each Plan Year.  The Matching Contribution shall be contributed to each eligible Participant in accordance with the nondiscriminatory formula determined by the Employer.                                                                                                                                                           
|-- |  | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |  |    | If the Matching Contribution formula selected by the Employer is 100% vested and may not be distributed to the Participant before the earlier of the date the Participant separates from Service, retires, becomes disabled, attains 59-1/2, or dies, it may be treated as a Qualified Matching Contribution.403(b) Matching Contribution Formulas:
|   |  |    | n.                                                                                                                                                                                                                                                                                                                                                  | Percentage of Deferral Match:  The Employer shall contribute to each eligible Participant's account an amount equal to % of the Participant's 403(b) Deferrals up to a maximum of %, or $ of Compensation.                                                                                                                                                                                                                                         
|   |  |    | o.                                                                                                                                                                                                                                                                                                                                                  | Uniform Dollar Match:  The Employer shall contribute to each eligible Participant's account $ if the Participant contributes at least % of Compensation.  The Employer's contribution will be made up to the maximum of % of Compensation.                                                                                                                                                                                                         
|   |  |    | p.                                                                                                                                                                                                                                                                                                                                                  | Discretionary Match:  The Employer's Matching Contribution shall be determined by the Employer with respect to each Plan Year.  The Matching Contribution shall be contributed to each eligible Participant in accordance with the nondiscriminatory formula determined by the Employer.                                                                                                                                                           
|   |  | 2. | Matching Contribution Computation Period:  The Compensationor any dollar limitation imposed in calculating the match will be based on the period selected below.  Matching Contributions will be calculated on the following basis:                                                                                                                
|   |  |    | a.                                                                                                                                                                                                                                                                                                                                                  | Weekly                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |  |    | b.                                                                                                                                                                                                                                                                                                                                                  | Bi-weekly                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |  |    | c.                                                                                                                                                                                                                                                                                                                                                  | Semi-monthly                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |  |    | d.                                                                                                                                                                                                                                                                                                                                                  | Monthly                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |  |    | The calculation of Matching Contributions based on the Computation Period selected above has no applicability as to when the Employer remits Matching Contributions to the Trust.                                                                                                                                                                  
|   |  | 3. | Limitations on Matching Formulas:                                                                                                                                                                                                                                                                                                                  
|   |  |    | a.                                                                                                                                                                                                                                                                                                                                                  | Annualization of Matching Contributions.  The Employer elects to annualize Matching Contributions made to the Plan.  If this election is not made, Matching Contributions will not be annualized.                                                                                                                                                                                                                                                  
|   |  |    | b.                                                                                                                                                                                                                                                                                                                                                  | Contributions to Participants who are not Highly Compensated Employees:  Contribution of the Employer's Matching Contribution will be made only to eligible Participants who are Non-Highly Compensated Employees.                                                                                                                                                                                                                                 
|   |  |    | c.                                                                                                                                                                                                                                                                                                                                                  | Deferrals withdrawn prior to the end of the Matching Computation Period:
Matching Contributions (whether or not Qualified) will not be made on Employee contributions withdrawn prior to the end of the [   ] Matching Computation Period, or [   ] Plan Year.  
If elected [   ], this requirement shall apply in the event of a withdrawal occurring as the result of a termination of employment for reasons of retirement, Disability or death.
|17

END OF PAGE 34

|   |       | 4.                                                                                          | Qualified Matching Contributions (QMAC):                                                                                                                                                                                                                                                                                                                                                                                 
|-- | ----- | ------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |       | [   ]                                                                                       | a.                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |       | [   ]                                                                                       | b.                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |       | 5.                                                                                          | Qualified Non-Elective Contributions (QNEC):                                                                                                                                                                                                                                                                                                                                                                             
|   |       |                                                                                             | a.                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |       |                                                                                             | b.                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | B.    | Qualified Matching (QMAC) and Qualified Non-Elective (QNEC) Employer Contribution Formulas:
|   | [   ] | 1.                                                                                          | QMAC Contribution Formula:  The Employer may contribute to each eligible Participant's Qualified Matching account an amount equal to (select one or more of the following):                                                                                                                                                                                                                                              
|   |       | [   ]                                                                                       | a.                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |       | [   ]                                                                                       | b.                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |       | [   ]                                                                                       | c.                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | [   ] | 2.                                                                                          | Discretionary QMAC Contribution Formula:  The Employer shall have the right to make a discretionary QMAC contribution.  The Employer's Matching Contribution shall be determined by the Employer with respect to each Plan Year's eligible Participants.  This part of the Employer's contribution shall be fully vested when made.                                                                                      
|   | [   ] | 3.                                                                                          | Discretionary Percentage QNEC Contribution Formula:  The Employer shall have the right to make a discretionary QNEC contribution that shall be allocated to each eligible Participant's account in proportion to his or her Compensation as a percentage of the Compensation of all eligible Participants.  This part of the Employer's contribution shall be fully vested when made.  This contribution will be made to:
|18

END OF PAGE 35

|      |       | [   ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | a.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | All eligible Participants.                                          
|----- | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------
|      |       | [   ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | b.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Only eligible Participants who are Non-Highly Compensated Employees.
|      | [   ] | 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Discretionary Uniform Dollar QNEC Contribution Formula:  The Employer shall have the right to make a discretionary QNEC contribution that shall be allocated to each eligible Participant's account in a uniform dollar amount to be determined by the Employer and allocated in a nondiscriminatory manner.  This part of the Employer's contribution shall be fully vested when made and not available for in-service withdrawal.  This contribution will be made to:                                                                                                                            
|      |       | [   ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | a.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | All eligible Participants.                                          
|      |       | [   ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | b.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Only eligible Participants who are Non-Highly Compensated Employees.
|      | [X]   | 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Corrective QNEC Contribution Formula:  The Employer shall have the right to make a QNEC contribution in the amount necessary to pass the ADP/ACP Test or the maximum permitted under Code Section 415.  This contribution will be allocated to some or all Non-Highly Compensated Participants designated by the Plan Administrator.  The allocation will be the lesser of the amount required to pass the ADP/ACP Test, or the maximum permitted under Code Section 415 and is not available for in-service withdrawal.  This part of the Employer's contribution shall be fully vested when made.
|[   ] | C.    | Discretionary Employer Contribution -- Non-Integrated Formula:  The Employer shall have the right to make a discretionary contribution.  The Employer's contribution for the Plan Year shall be made to the accounts of eligible Participants as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|      | [   ] | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Such contribution shall be allocated as a percentage of the Employer's Net Profits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|      | [   ] | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Such contribution shall be allocated as a percentage of Compensation of eligible Participants for the Plan Year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|      | [   ] | 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Such contribution shall be allocated in an amount fixed by an appropriate action of the Employer as of the time prescribed by law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|      | [   ] | 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Such contribution shall be allocated equally in a uniform dollar amount to each eligible Participant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|      | [   ] | 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Such contribution shall be allocated in the same dollar amount to each eligible Participant per Hour of Service the Participant is entitled to Compensation.                                                                                                                                                                                                                                                                                                                                                                                                                                       
|[   ] | D.    | Discretionary Employer Contribution -- Excess Integrated Allocation Formula:  The Employer shall have the right to make a discretionary contribution.  The Employer's contribution for the Plan Year shall be allocated to the accounts of eligible Participants as follows:  Only one plan maintained by the Employer may be integrated with Social Security.  Any Plan utilizing a Safe Harbor formula provided in Section VII of this Adoption Agreement may not apply the Safe Harbor Contribution to the integrated allocation formula.  If the Plan is not Top-Heavy or if the Top-Heavy minimum contribution or benefit is provided under another Plan covering the same Employees, paragraphs (1) and (2) below may be disregarded and 5.7%, 5.4% or 4.3% may be substituted for 2.7%, 2.4% or 1.3% where it appears in paragraph (3) below.
|      |       | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Step One:  To the extent contributions are sufficient, all Participants will receive an allocation equal to 3% of their Compensation.                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|19   

END OF PAGE 36

|      |       | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Step Two:  Any remaining Employer contributions will be allocated up to a maximum of 3% of excess Compensation of all Participants to Participants who have Compensation in excess of the Integration Level (excess Compensation).  Each such Participant will receive an allocation in the ratio that his or her excess Compensation bears to the excess Compensation of all Participants.  If Employer contributions are insufficient to fund to this level, the Employer must determine the uniform allocation percentage to allocate to those Participants who have Compensation in excess of the Integration Level.  To determine this uniform allocation percentage, the Employer must take the remaining contribution and divide that amount by the total excess Compensation of Participants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|----- | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |       | 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Step Three:  Any remaining Employer contributions will be allocated to all Participants in the ratio that their Compensation plus excess Compensation bears to the total Compensation plus excess Compensation of all Participants.  Participants may only receive an allocation of up to 2.7% of their Compensation plus excess Compensation, under this allocation step.  If the Integration Level defined at Section III(E) is less than or equal to the greater of $10,000 or 20% of the maximum, the 2.7% need not be reduced.  If the amount specified is greater than the greater of $10,000 or 20% of the maximum Taxable Wage Base, but not more than 80%, 2.7% must be reduced to 1.3%.  If the amount specified is greater than 80% but less than 100% of the maximum Taxable Wage Base, the 2.7% must be reduced to 2.4%.  If Employer contributions are insufficient to fund to this level, the Employer must determine the uniform allocation percentage to allocate to those Participants who have Compensation up to the Integration Level and excess Compensation.  To determine this uniform allocation percentage, the Employer must take the remaining contribution and divide that amount by the total Compensation including excess Compensation of Participants.
|      |       | 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Step Four:  Any remaining Employer contributions will be allocated to all Participants in the ratio that each Participant's Compensation bears to all Participants' Compensation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|[   ] | E.    | Discretionary Employer Contribution -- Base Integrated Allocation Formula:  The Employer shall have the right to make a discretionary contribution.  To the extent that such contributions are sufficient, they shall be allocated as follows:  % of each eligible Participant's Compensation, plus  % of Compensation in excess of the Integration Level defined at Section III(E) hereof.  
The percentage of excess Compensation may not exceed the lesser of (i) the amount first specified in this paragraph or (ii) the greater of 5.7% or the percentage rate of tax under Code Section 3111(a) as in effect on the first day of the Plan Year attributable to the Old Age (OA) portion of the OASDI provisions of the Social Security Act.  If the Employer specifies an Integration Level in Section III(E) which is lower than the Taxable Wage Base for Social Security purposes (SSTWB) in effect as of the first day of the Plan Year, the percentage contributed with respect to excess Compensation must be adjusted.  If the Plan's Integration Level is greater than the larger of $10,000 or 20% of the SSTWB but not more than 80% of the SSTWB, the excess percentage is 4.3%.  If the Plan's Integration Level is greater than 80% of the SSTWB but less than 100% of the SSTWB, the excess percentage is 5.4%.  Only one Plan maintained by the Employer may be integrated with Social Security.  Any Plan utilizing a Safe Harbor formula as provided in Section VII of this Adoption Agreement may not apply the Safe Harbor Contributions to the integrated allocation formula.
|[   ] | F.    | Uniform Points Allocation Formula:  The allocation for each eligible Participant will be determined by a uniform points method.  Each eligible Participant's allocation shall bear the same relationship to the Employer contribution as the Participant's total points bear to all points awarded.  Each eligible Participant will receive  points for each of the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|      | [   ] | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Year(s) of age.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|      | [   ] | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Year(s) of Service determined:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|20   

END OF PAGE 37

|    |       | [   ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | a.                                                                                                                                                                                                                                                                        | In the same manner as determined for eligibility.                           
|--- | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------
|    |       | [   ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | b.                                                                                                                                                                                                                                                                        | In the same manner as determined for vesting.                               
|    |       | [   ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | c.                                                                                                                                                                                                                                                                        | Points will not be awarded with respect to Year(s) of Service in excess of .
|    | [   ] | 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | $ (not to exceed $200) of Compensation.                                                                                                                                                                                                                                  
|[X] | G.    | Additional Adopting Employers:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | [X]   | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | All participating Employers' contributions under Section VIII entitled "Employer Contributions" above and forfeitures, if applicable, attributable to each specific contribution source shall be pooled together and allocated uniformly among all eligible Participants.
|    | [   ] | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Each participating Employer's contribution under Section VIII above and forfeitures attributable to each specific contribution source made by such Employer shall be allocated only to eligible Participants of the participating Employer.                              
|    |       | Where contributions and forfeitures are to be allocated to eligible Participants by participating Employers, each such Employer must maintain data demonstrating that the allocations by group satisfy the nondiscrimination rules under Code Section 401(a)(4).                                                                                                                                                                                                                                                     
|    | H.    | Minimum Employer Contribution Formula Under Top-Heavy Plans:  
For any Plan Year during which the Plan is Top-Heavy, the sum of the contributions (excluding Elective Deferrals and/or Matching Contributions) allocated to non-Key Employees shall not be less than the amount required under the Basic Plan Document #01.  The eligibility of a Participant to receive Top-Heavy Contributions mirrors the eligibility for any contribution with the earliest Entry Date.  Top-Heavy minimums will be allocated to:
|    | [   ] | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | all eligible Participants.                                                                                                                                                                                                                                               
|    | [X]   | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | only eligible non-Key Employees who are Participants.                                                                                                                                                                                                                    

|IX. | ALLOCATIONS TO PARTICIPANTS
|--- | ---------------------------
|    | A.
[   ]                   
|    | B.                         
|    | [   ]                      
|    | [X]                        
|    |                            
|    |                            
|    |                            
|    |                            
|    |                            
|    |                            
|    |                            
|    |                            
|21 

END OF PAGE 38

|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | b.                                                                                                                                                           | Terminated Participants:                                                                          
|----- | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                              | Contribution Type                                                                                 
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                              | All contributions                                                                                 
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                              | Non-Safe Harbor Match Formula 1                                                                   
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                              | Employer Discretionary                                                                            
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                              | QNECs                                                                                             
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                              | QMACs                                                                                             
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                              | Non-Safe Harbor Match Formula 2                                                                   
|      | C. | Allocation of Contributions to Participants:  
Employer contributions for a Plan Year will be allocated to all Participants who have met the allocation accrual requirements at Section IX(B) above and who have met the following allocation accrual requirements (check all applicable boxes):                                                                                                                                                                                                                                                                                                               
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                              | MatchFormula                                                                                      
|      |    | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | For Plans using the Elapsed Time method, contributions will be allocated to terminated Participants who have completed  (not more than 12) months of Service | [   ]                                                                                             
|      |    | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Employed on the last day of the Plan Year                                                                                                                    | [   ]                                                                                             
|      |    | 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | The Hours of Service or Period of Service requirement in the Plan Year of termination is waived due to:                                                      |                                                                                                   
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | a.                                                                                                                                                           | Retirement                                                                                        
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | b.                                                                                                                                                           | Disability                                                                                        
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | c.                                                                                                                                                           | Death                                                                                             
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | d.                                                                                                                                                           | Other:  *                                                                                         
|      |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | e.                                                                                                                                                           | No last day of the Plan Year requirement in Plan Year of the occurrence of any of the above events
|      |    | * The event designated by the Employer shall be applied to all Participants in a nondiscriminatory manner.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|[   ] | D. | Contributions to Disabled Participants:  
The Employer will make contributions on behalf of a Participant who is permanently and totally disabled.  These contributions will be based on the Compensation each such Participant would have received for the Limitation Year if the Participant had been paid at the rate of Compensation paid immediately before becoming permanently and totally disabled.  Such imputed Compensation for the disabled Participant may be taken into account only if the Participant is not a Highly Compensated Employee.  These contributions will be 100% vested when made.
|22   

END OF PAGE 39

|      | E.                         | Leased Employees:                                                                                                                                                       
|----- | -------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      | [X]                        | 1.                                                                                                                                                                      
|      | [   ]                      | 2.                                                                                                                                                                      
|X.    | DISPOSITION OF FORFEITURES
|[   ] | A.                         | Not applicable.  All contributions are fully vested.  
If (A) is selected, do not complete (B) or (C) below.                                                            
|[X]   | B.                         | Forfeiture Allocation Alternatives:  
Select the method in which forfeitures associated with the contribution type will be allocated (number each item in order of use).
|      |                            |                                                                                                                                                                         
|      |                            |                                                                                                                                                                         
|      |                            | 1.                                                                                                                                                                      
|      |                            | 2.                                                                                                                                                                      
|      |                            | 3.                                                                                                                                                                      
|      |                            | 4.                                                                                                                                                                      
|      |                            | 5.                                                                                                                                                                      
|      |                            | 6.                                                                                                                                                                      
|      |                            | 7.                                                                                                                                                                      
|      |                            | 8.                                                                                                                                                                      
|      |                            | 9.                                                                                                                                                                      
|      |                            | 10.                                                                                                                                                                     
|23   

END OF PAGE 40

| |       | Participants eligible to share in the allocation of other Employer Contributions under Section VIII shall be eligible to share in the allocation of forfeitures except where allocations are only to Non-Highly Compensated Employees.                                                                                                                                                                                                                               
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | C.    | Timing of Allocation of Forfeitures:  
If no distribution or deemed distribution has been made to a former Participant, nonvested portions shall be forfeited at the end of the Plan Year during which the former Participant incurs his or her fifth consecutive one-year Break in Service.  
If a former Participant has received the full amount of his or her vested interest, the nonvested portion of his or her account shall be forfeited and be disposed of:
| | [   ] | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | [X]   | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | [   ] | 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | [   ] | 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | [   ] | 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | [   ] | 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   



|XI. | MULTIPLE PLANS MAINTAINED BY THE EMPLOYER, LIMITATIONS ON ALLOCATIONS, AND TOP-HEAVY CONTRIBUTIONS
|--- | --------------------------------------------------------------------------------------------------
|    | A.                                                                                                
|    | [   ]                                                                                             
|    |                                                                                                   
|    |                                                                                                   
|    |                                                                                                   
|    | [X]                                                                                               
|    |                                                                                                   
|24 

END OF PAGE 41

| |       |                                                                                                                                                                                                                  | [X]                                                                                                                                                                         | i.                                                                                                                                                                                 | The provisions of Article X of the Basic Plan Document #01 will apply as if the other plan were a Master or Prototype Plan.                                                                                                       
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                  | [   ]                                                                                                                                                                       | ii.                                                                                                                                                                                | The Employer has specified below the method under which the plans will limit total Annual Additions to the Maximum Permissible Amount, and will properly reduce any Excess Amounts in a manner that precludes Employer discretion.
| |       |                                                                                                                                                                                                                  |                                                                                                                                                                             |                                                                                                                                                                                    |                                                                                                                                                                                                                                   
| |       |                                                                                                                                                                                                                  |                                                                                                                                                                             | Employers who maintained a qualified Defined Benefit Plan prior to January 1, 2000, should complete Schedule C to document the preamendment operation of the Plan.                
| |       |                                                                                                                                                                                                                  | b.                                                                                                                                                                          | Allocation of Excess Annual Additions:  In the event that the allocation formula results in an Excess Amount, such excess, after distribution of Employee contributions, shall be:
| |       |                                                                                                                                                                                                                  | [X]                                                                                                                                                                         | i.                                                                                                                                                                                 | Placed in a suspense account for the benefit of the Participant without the crediting of gains or losses for the benefit of the Participant.                                                                                      
| |       |                                                                                                                                                                                                                  | [   ]                                                                                                                                                                       | ii.                                                                                                                                                                                | Reallocated as additional Employer contributions to all other Participants to the extent that they do not have any Excess Amount.                                                                                                 
| |       |                                                                                                                                                                                                                  | If no method is specified, the suspense account method will be used.                                                                                                       
| | B.    | Top-Heavy Provisions:  
In the event the Plan is or becomes Top-Heavy, the minimum contribution or benefit required under Code Section 416 relating to Top-Heavy Plans shall be satisfied in the elected manner:
| | [   ] | 1.                                                                                                                                                                                                               | This is the only Plan the Employer maintains or ever maintained.  The minimum contribution will be satisfied by this Plan.                                                 
| | [   ] | 2.                                                                                                                                                                                                               | The Employer does maintain another Defined Contribution Plan.  The minimum contribution will be satisfied by:                                                              
| |       | [   ]                                                                                                                                                                                                            | a.                                                                                                                                                                          | this Plan.                                                                                                                                                                        
| |       | [   ]                                                                                                                                                                                                            | b.                                                                                                                                                                          | (Name of other Qualified Plan)                                                                                                                                                    
| | [X]   | 3.                                                                                                                                                                                                               | The Employer maintains a Defined Benefit Plan.  A method is stated below under which the minimum contribution and benefit provisions of Code Section 416 will be satisfied.



|XII.  | ANTIDISCRIMINATION TESTING   
For Plans which are being amended and restated for GUST, please complete Schedule C outlining the preamendment operation of the Plan, as well as this section of the Adoption Agreement.  The testing elections made below will apply to the future operation of the Plan.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|[   ] | A.                                                                                                                                                                                                                                                                                                      
|25   

END OF PAGE 42

|[X]   | B.    | Testing Elections:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|----- | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      | [X]   | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|      | [   ] | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|      |       | If no election is made, the Plan will use the Current Year testing method. This election cannot be rescinded for a Plan Year unless (1) the Plan has been using the Current Year testing method for the preceding 5 Plan Years or, if lesser, the number of Plan Years the Plan has been in existence; or (2) the Plan otherwise meets one of the conditions specified in IRS Notice 98-1 (or other superseding guidance) for changing from the Current Year testing method.A Prototype Plan must use the same testing method for both the ADP and ACP tests for Plan Years beginning on or after the date the Employer adopts its GUST-restated Plan document.
|[   ] | C.    | Testing Elections for the First Plan Year:  
Complete only when Prior Year testing method election is made.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|      | [   ] | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|      | [   ] | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|[   ] | D.    | Recharacterization:  
Elective Deferrals may be recharacterized as Voluntary After-tax Contributions to satisfy the ADP Test.  The Employer must have elected to permit Voluntary After-tax Contributions in the Plan for this election to be operable.                                                                                                                                                                                                                                                                                                                                                                                                        

|XIII. | VESTING   

Participants shall always have a fully vested and nonforfeitable interest in their Employee contributions (including Elective Deferrals, Required After-tax and Voluntary After-tax Contributions), Qualified Matching Contributions ("QMACs"), Qualified Non-Elective Contributions ("QNECs") or Safe Harbor Matching or Non-Elective Contributions and their investment earnings.  
Each Participant shall acquire a vested and nonforfeitable percentage in his or her account balance attributable to Employer contributions and their earnings under the schedule(s) selected below except in any Plan Year during which the Plan is determined to be Top-Heavy. In any Plan Year in which the Plan is Top-Heavy, the two-twenty vesting schedule [option (B)(4)] or the three-year cliff schedule [option (B)(3)] shall automatically apply unless the Employer has already elected a faster vesting schedule.  If the Plan is switched to option (B)(4) or (B)(3), because of its Top-Heavy status, that vesting schedule will remain in effect even if the Plan later becomes non-Top-Heavy until the Employer executes an amendment of this Adoption Agreement.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      | A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|26   

END OF PAGE 43

|   | [   ] | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Not applicable.  All contributions are fully vested.                                                                                                                                                                                                                                  
|-- | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | [   ] | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Elapsed Time method.                                                                                                                                                                                                                                                                  
|   | [X]   | 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Hours of Service method.  A Year of Service will be credited upon completion of 500 Hours of Service.  A Year of Service for vesting purposes will not be less than 1 Hour of Service nor greater than 1,000 hours by operation of law.  If left blank, the Plan will use 1,000 hours.
|   |       | The computation period for purposes of determining Years of Service and Breaks in Service for purposes of computing a Participant's nonforfeitable right to his or her account balance derived from Employer contributions:                                                                                                                                                                                                                                       
|   | [   ] | 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | shall not be applicable since Participants are always fully vested.                                                                                                                                                                                                                   
|   | [   ] | 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | shall not be applicable, as the Plan is using Elapsed Time.                                                                                                                                                                                                                           
|   | [   ] | 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | shall commence on the date on which an Employee first performs an Hour of Service for the Employer and each subsequent 12-consecutive month period shall commence on the anniversary thereof.                                                                                         
|   | [X]   | 7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | shall commence on the first day of the Plan Year during which an Employee first performs an Hour of Service for the Employer and each subsequent 12-consecutive month period shall commence on the anniversary thereof.                                                               
|   |       | For Plans not using Elapsed Time, a Participant shall receive credit for a Year of Service if he or she completes the number of hours specified above at any time during the 12-consecutive month computation period.  A Year of Service may be earned prior to the end of the 12-consecutive month computation period and the Participant need not be employed at the end of the 12-consecutive month computation period to receive credit for a Year of Service.
|   | B.    | Vesting Schedules:  
Select the appropriate schedule for each contribution type and complete any blank vesting percentages from the list below and insert the option number in the vesting schedule chart below.                                                                                                                                                                                                                                                  
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Years of Service                                                                                                                                                                                                                                                                      
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 1                                                                                                                                                                                                                                                                                     
|   |       | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Full and immediate Vesting                                                                                                                                                                                                                                                            
|   |       | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | %                                                                                                                                                                                                                                                                                     
|   |       | 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | %                                                                                                                                                                                                                                                                                     
|   |       | 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 0%                                                                                                                                                                                                                                                                                    
|   |       | 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | %                                                                                                                                                                                                                                                                                     
|   |       | 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 10%                                                                                                                                                                                                                                                                                   
|   |       | 7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | %                                                                                                                                                                                                                                                                                     
|   |       | 8.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | %                                                                                                                                                                                                                                                                                     
|   |       | The percentages selected for schedule (8) may not be less for any year than the percentages shown at schedule (5).                                                                                                                                                                                                                                                                                                                                                
|27

END OF PAGE 44

| |       |                                                                                                                                                                                                                                                                                                            | Vesting Schedule Chart                                                                                                                                   | Employer Contribution Type                          
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                            | 4                                                                                                                                                        | All Employer Contributions                          
| |       |                                                                                                                                                                                                                                                                                                            |                                                                                                                                                          | Safe Harbor Contributions (Matching or Non-Elective)
| |       |                                                                                                                                                                                                                                                                                                            |                                                                                                                                                          | QMACs and QNECs                                     
| |       |                                                                                                                                                                                                                                                                                                            |                                                                                                                                                          | Non-Safe Harbor Match Formula 1                     
| |       |                                                                                                                                                                                                                                                                                                            |                                                                                                                                                          | Non-Safe Harbor Match Formula 2                     
| |       |                                                                                                                                                                                                                                                                                                            |                                                                                                                                                          | Match on Voluntary After-tax Contributions          
| |       |                                                                                                                                                                                                                                                                                                            |                                                                                                                                                          | Match on Required After-tax Contributions           
| |       |                                                                                                                                                                                                                                                                                                            |                                                                                                                                                          | Discretionary Contributions                         
| |       |                                                                                                                                                                                                                                                                                                            | 4                                                                                                                                                        | Top-Heavy Minimum Contributions                     
| |       |                                                                                                                                                                                                                                                                                                            |                                                                                                                                                          | Other Employer Contribution                         
| | C.    | Service Disregarded for Vesting:                                                                                                                                                                                                                                                                          
| | [X]   | 1.                                                                                                                                                                                                                                                                                                         | Not applicable.  All Service is recognized.                                                                                                             
| | [   ] | 2.                                                                                                                                                                                                                                                                                                         | Service prior to the Effective Date of this Plan or a predecessor plan is disregarded when computing a Participant's vested and nonforfeitable interest.
| | [   ] | 3.                                                                                                                                                                                                                                                                                                         | Service prior to a Participant having attained age 18 is disregarded when computing a Participant's vested and nonforfeitable interest.                 
| | D.    | Full Vesting of Employer Contributions for Current Participants:  
Notwithstanding the elections above, all Employer contributions made to a Participant's account shall be 100% fully vested if the Participant is employed on the Effective Date of the Plan (or such other date as entered herein):   .

|XIV.  | SERVICE WITH PREDECESSOR ORGANIZATION
|----- | -------------------------------------
|[   ] | A.                                   
|[   ] | B.                                   
|[X]   | C.                                   
|      |                                      
|      |                                      
|      |                                      
|      |                                      

|XV. | IN-SERVICE WITHDRAWALS
|--- | ----------------------
|    | A.                    
|    | [X]                   
|    | [   ]                 
|28 

END OF PAGE 45

|   |       |                       |                                                                                                                                                  | Withdrawal Restrictions                                                                                                                                        
|-- | ----- | --------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |       |                       |                                                                                                                                                  | Contribution Types                                                                                                                                             
|   |       |                       | a.                                                                                                                                               | All Contributions                                                                                                                                              
|   |       |                       | b.                                                                                                                                               | Voluntary After-tax                                                                                                                                            
|   |       |                       | c.                                                                                                                                               | Required After-tax                                                                                                                                             
|   |       |                       | d.                                                                                                                                               | Rollover                                                                                                                                                       
|   |       |                       | e.                                                                                                                                               | Transfer                                                                                                                                                       
|   |       |                       | f.                                                                                                                                               | Elective Deferrals                                                                                                                                             
|   |       |                       | g.                                                                                                                                               | Qualified Non-Elective                                                                                                                                         
|   |       |                       | h.                                                                                                                                               | Qualified Matching                                                                                                                                             
|   |       |                       | i.                                                                                                                                               | Safe Harbor Matching                                                                                                                                           
|   |       |                       | j.                                                                                                                                               | Safe Harbor Non-Elective                                                                                                                                       
|   |       |                       | k.                                                                                                                                               | Vested Non-Safe Harbor Matching 
    Formula 1                                                                                                                 
|   |       |                       | l.                                                                                                                                               | Vested Non-Safe Harbor Matching 
    Formula 2                                                                                                                 
|   |       |                       | m.                                                                                                                                               | Vested Discretionary                                                                                                                                           
|   |       |                       | Withdrawal Restriction Key                                                                                                                      
|   |       |                       | a.                                                                                                                                               | Not available for in-service withdrawals.                                                                                                                      
|   |       |                       | b.                                                                                                                                               | Available for in-service withdrawals.                                                                                                                          
|   |       |                       | c.                                                                                                                                               | Participants having completed five years of Plan participation may elect to withdraw all or any part of their Vested Account Balance.                          
|   |       |                       | d.                                                                                                                                               | Participants may withdraw all or any part of their Account Balance after having attained the Plan's Normal Retirement Age.                                     
|   |       |                       | e.                                                                                                                                               | Participants may withdraw all or any part of their Vested Account Balance after having attained age  (not less than age 59-1/2).                               
|   |       |                       | f.                                                                                                                                               | Participants may elect to withdraw all or any part of their Vested Account Balance that has been credited to their account for a period in excess of two years.
|   |       |                       | g.                                                                                                                                               | Available for withdrawal only if the Participant is 100% vested.                                                                                               
|   | B.    | Hardship Withdrawals:
|   | [   ] | 1.                    | Hardship withdrawals are not permitted in the Plan.                                                                                             
|   | [X]   | 2.                    | Hardship withdrawals are permitted in the Plan and will be taken from the Participant's account as follows (select one or more of these options)
|   |       | [X]                   | a.                                                                                                                                               | Participants may withdraw Elective Deferrals.                                                                                                                  
|29

END OF PAGE 46



| |  | [   ] | b. | Participants may withdraw Elective Deferrals and any earnings credited as of December 31, 1988 (or if later, the end of the last Plan Year ending before July 1, 1989).                                                                                                                                               
| |  | ----- | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | [   ] | c. | Participants may withdraw Rollover Contributions plus their earnings.                                                                                                                                                                                                                                                 
| |  | [   ] | d. | Participants may withdraw Transfer Contributions plus their earnings.                                                                                                                                                                                                                                                 
| |  | [   ] | e. | Participants may withdraw fully vested Employer contributions plus their earnings.                                                                                                                                                                                                                                    
| |  | [   ] | f. | Participants may withdraw vested Non-Safe Harbor Matching Formula 1 Contributions plus their earnings.                                                                                                                                                                                                                
| |  | [   ] | g. | Participants may withdraw vested Non-Safe Harbor Matching Formula 2 Contributions plus their earnings.                                                                                                                                                                                                                
| |  | [   ] | h. | Participants may withdraw Qualified Matching Contributions and Qualified Non-Elective Contributions plus their earnings, and the earnings on Elective Deferrals which have been credited to the Participant's account as of December 31, 1988 (or if later, the end of the last Plan Year ending before July 1, 1989).



|XVI. | LOAN PROVISIONS
|---- | ---------------
|[X]  | A.             
|[X]  | B.             



|XVII. | INVESTMENT MANAGEMENT
|----- | ---------------------
|      | A.                   
|      | [   ]                
|      | [   ]                
|      | [X]                  
|      |                      
|      |                      
|      |                      
|      |                      
|      |                      
|      |                      
|      |                      
|      |                      
|      |                      
|30   

END OF PAGE 47



|      |       |                                                                                                                                                                              | i.                                                                                                                                                                                                                                                     | QMACs                  | [   ] | [   ] | [   ]
|----- | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------- | ----- | ----- | -----
|      |       |                                                                                                                                                                              | j.                                                                                                                                                                                                                                                     | QNECs                  | [   ] | [   ] | [   ]
|      |       |                                                                                                                                                                              | k.                                                                                                                                                                                                                                                     | Rollover Contributions | [   ] | [   ] | [   ]
|      |       |                                                                                                                                                                              | l.                                                                                                                                                                                                                                                     | Transfer Contributions | [   ] | [   ] | [   ]
|      |       |                                                                                                                                                                              | To the extent that Participant self-direction was previously permitted, the Employer shall have the right to either make the assets part of the general fund, or leave them as self-directed subject to the provisions of the Basic Plan Document #01.
|      | B.    | Limitations on Participant Directed Investments:                                                                                                                            
|      | [X]   | 1.                                                                                                                                                                           | Participants are permitted to invest among only those investment alternatives made available by the Employer under the Plan.                                                                                                                          
|      | [   ] | 2.                                                                                                                                                                           | Participants are permitted to invest in any investment alternative permitted under the Basic Plan Document #01.                                                                                                                                       
|[   ] | C.    | Insurance:  
The Plan permits insurance as an investment alternative.                                                                                                       
|[X]   | D.    | ERISA Section 404(c):  The Employer intends to be covered by the fiduciary liability provisions with respect to Participant directed investments under ERISA Section 404(c).

|XVIII. | DISTRIBUTION OPTIONS
|------ | --------------------
|       | A.                  
|       |                     
|       |                     
|       |                     
|       |                     
|       |                     
|       |                     
|       |                     
|       |                     
|       |                     
|31    

END OF PAGE 48

| | B.    | Required Beginning Date:  
The Required Beginning Date of a Participant with respect to a Plan is (select one from below):
| | ----- | --------------------------------------------------------------------------------------------------------------------------
| | [   ] | 1.                                                                                                                        
| | [   ] | 2.                                                                                                                        
| | [X]   | 3.                                                                                                                        

|   |       | Plans which are an amendment or restatement of an existing Plan which provided for the provisions of Code Section 401(a)(9) currently in effect prior to the amendment of the Small Business Job Protection Act of 1996 must complete Schedule C.
|-- | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | C.    | Forms of Payment (select all that apply):                                                                                                                                                                                                        
|   | [X]   | 1.                                                                                                                                                                                                                                               
|   | [X]   | 2.                                                                                                                                                                                                                                               
|   | [X]   | 3.                                                                                                                                                                                                                                               
|   | [   ] | 4.                                                                                                                                                                                                                                               
|   | [   ] | 5.                                                                                                                                                                                                                                               
|   | [   ] | 6                                                                                                                                                                                                                                                
|   | [   ] | 7.                                                                                                                                                                                                                                               
|   | [   ] | 8.                                                                                                                                                                                                                                               
|   | [   ] | 9.                                                                                                                                                                                                                                               
|   | [   ] | 10.                                                                                                                                                                                                                                              
|   |       | The normal form of payment is determined at Section III(J) of this Adoption Agreement.                                                                                                                                                           
|32

END OF PAGE 49



| | D.    | Recalculation of Life Expectancy:
| | ----- | ---------------------------------
| | [   ] | 1.                               
| | [X]   | 2.                               
| |       | [X]                              
| |       | [   ]                            
| |       | [   ]                            

|XIX. | SPONSOR INFORMATION AND ACCEPTANCE
This Plan may not be used and shall not be deemed to be a Prototype Plan unless an authorized representative of the Sponsor has acknowledged the use of the Plan.  Such acknowledgment that the Employer is using the Plan does not represent that the Adoption Agreement (as completed) and Basic Plan Document #01 have been reviewed by a representative of the Sponsor or constitute a qualified retirement plan.  
Acknowledged and accepted by the Sponsor this 13th day of September, 2002.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     | Name:
Title:
Signature:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|     | Questions concerning the language contained in and qualification of the Prototype should be addressed to:  Diversified Investment Advisors                                                                                                                                                                                                                                                                                                                                                                                           
|     | (Position):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     | In the event that the Sponsor amends, discontinues or abandons this Prototype Plan, notification will be provided to the Employer's address provided on the first page of this Adoption Agreement.                                                                                                                                                                                                                                                                                                                                   
|33  

END OF PAGE 50

|XX. | SIGNATURES 
The Sponsor recommends that the Employer consult with its legal counsel and/or tax advisor before executing this Adoption Agreement.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------
|    | A.                                                                                                                                              
|    |                                                                                                                                                 
|    | B.                                                                                                                                              
|    |                                                                                                                                                 
|    |                                                                                                                                                 
|34 

END OF PAGE 51



|   | B. | Trustee:  
Trust Agreement:                                                                                                                                                                                                                                                                                                                                   
|-- | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |    | [   ]                                                                                                                                                                                                                                                                                                                                                         
|   |    | [   ]                                                                                                                                                                                                                                                                                                                                                         
|   |    | [X]                                                                                                                                                                                                                                                                                                                                                           
|   |    | Complete the remainder of this section only if the Trust provisions used are as contained in the Basic Plan Document #01.  Name and address of Trustee:  The assets of the Plan shall be invested in accordance with Article XIII of the Basic Plan Document #01.  The Employer's Plan and Trust as contained herein is accepted by the Trustee this  day of .
|   |    | Accepted on behalf of the Trustee by:  
Title:  
Signature:                                                                                                                                                                                                                                                                                                   
|   |    | Accepted on behalf of the Trustee by:  
Title:  
Signature:                                                                                                                                                                                                                                                                                                   
|   |    | Accepted on behalf of the Trustee by:  
Title:  
Signature:                                                                                                                                                                                                                                                                                                   
|35

END OF PAGE 52

|   | C. | Custodian:  
Custodial Agreement:                                                                                                                                                                                                                                                                                                                                                         
|-- | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |    | [X]                                                                                                                                                                                                                                                                                                                                                                                       
|   |    | [   ]                                                                                                                                                                                                                                                                                                                                                                                     
|   |    | [   ]                                                                                                                                                                                                                                                                                                                                                                                     
|   |    | [   ]                                                                                                                                                                                                                                                                                                                                                                                     
|   |    | Complete the remainder of this section only if the custodial provisions used are as contained in the Basic Plan Document #01.  
Name and address of Custodian:  
The assets of the Plan shall be invested in accordance with paragraph 13.14 of the Basic Plan Document #01.  The Employer's Plan and Custodial Account as contained herein are accepted by the Custodian this  day of , .
|   |    | Accepted on behalf of the Custodian by:  
Title:  
Signature:                                                                                                                                                                                                                                                                                                                             
|36

END OF PAGE 53

|SCHEDULE A
PROTECTED BENEFITS                                                                                                        
|-------------------------------------------------------------------------------------------------------------------------------------
|This Schedule includes any prior Plan protected benefits which are not available in Basic Plan Document #01.  Complete as applicable.
|1.                                                                                                                                   
|                                                                                                                                     
|2.                                                                                                                                   
|                                                                                                                                     
|3.                                                                                                                                   
|                                                                                                                                     
|4.                                                                                                                                   
|                                                                                                                                     
|5.                                                                                                                                   
|                                                                                                                                     
|37                                                                                                                                   

END OF PAGE 54

|SCHEDULE B
PRIOR PLAN PROVISIONS                                                                                                                                                                             
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|This Schedule should be used if a prior plan contains provisions not found in Basic Plan Document #01, or where the Employer wishes to document transactions or historical provisions of the Employer's Plan.
|1.                                                                                                                                                                                                           
|                                                                                                                                                                                                             
|2.                                                                                                                                                                                                           
|                                                                                                                                                                                                             
|3.                                                                                                                                                                                                           
|                                                                                                                                                                                                             
|4.                                                                                                                                                                                                           
|                                                                                                                                                                                                             
|5.                                                                                                                                                                                                           
|                                                                                                                                                                                                             
|38                                                                                                                                                                                                           

END OF PAGE 55

|SCHEDULE C
PREAMENDMENT OPERATION OF THE PLAN                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|The following are the adopting Employer's elective Plan provisions which conform the terms of this Prototype Plan to the preamendment operation of the Plan during the transition period between the earliest effective date under GUST (as defined below) and the effective date of adoption of this Prototype Plan and Trust which takes into account all of the changes in the qualification requirements made by the following:  The Uruguay Round Agreements, Pub. L. 103-465 (GATT); The Uniformed Services Employment and Reemployment Rights Act of 1994, Pub. L. 103-353 (USERRA); The Small Business Job Protection Act of 1996, Pub. L. 104-188 (SBJPA) [including Section 414(u) of the Internal Revenue Code]; The Taxpayer Relief Act of 1997, Pub. L. 105-34 (TRA '97); The Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206 (IRSRRA); and The Community Renewal Tax Relief Act of 2000, Pub. L. 106-554 (CRA), hereinafter referred to collectively as GUST.  
Complete as applicable and appropriate.
|I.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

|II. | Plan Provision:   Family AggregationDid the Pre-SBJPA Family Aggregation rules of Code Sections 401(a)(17)(a) and 414(q)(6), both in effect for Plan Years beginning before January 1, 1997, continue to apply for any purpose for Plan Years beginning after 1996?
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | [X]                                                                                                                                                                                                                                                                
|    | [   ]                                                                                                                                                                                                                                                              
|39 

END OF PAGE 56

| | Employers who adopt this Prototype Plan may not elect to continue to apply the pre-SBJPA Family Aggregation rules.
| | ------------------------------------------------------------------------------------------------------------------

|III. | Plan Provision:   Combined Plan Limit of Code Section 415(e)Did the Employer maintain a Defined Benefit Plan prior to January 1, 2000?                                                                                                                                               
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     | [X]                                                                                                                                                                                                                                                                                  
|     | Did the Plan continue to apply the combined Plan limit of Code Section 415(e) (as in effect for Limitation Years beginning before January 1, 2000) in Limitation Years beginning after December 31, 1999, to the extent that such election conforms to the Plan's operation?         
|     | [   ]                                                                                                                                                                                                                                                                                
|     | If yes, specify provisions below that will satisfy the 1.0 limitation of Code Section 415(e).  Such language must preclude Employer discretion.  The Employer must also specify the interest and mortality assumptions used in determining Present Value in the Defined Benefit Plan.
|     | Employers who adopt this Prototype Plan may not elect to continue to apply the combined Plan limit of Code Section 415(e) in years beginning after the date the Employer adopts its GUST-restated plan.                                                                              

|IV. | Plan Provision:   Nondiscrimination Testing
The Small Business Job Protection Act permits the Employer to use the ADP and/or ACP of Non-Highly Compensated Employees for the prior year or current year in determining whether the plan satisfied the nondiscrimination tests.  
Employers who adopt this Prototype Plan must use the same testing method for both the ADP and ACP tests for Plan Years beginning on or after the date the Employer adopts this GUST-restated Plan.  This restriction does not apply with respect to Plan Years beginning before the date the Employer adopts this GUST-restated plan.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | [X]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | [X]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|40 

END OF PAGE 57

| | 2.  | ACP Testing Election:
| | --- | ---------------------
| | [X] | A.                   
| |     |                      
| |     |                      
| |     |                      
| |     |                      
| |     |                      
| | [X] | B.                   
| |     |                      
| |     |                      
| |     |                      
| |     |                      
| |     |                      

|V. | Plan Provision:   First Plan Year Testing Elections
For a new 401(k) Plan, the Employer could use either the current or prior year testing methods as well as a rule that deems the prior year ADP/ACP to be 3%.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | 1.                                                                                                                                                                                                              
|   | [   ]                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   | [   ]                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   | 2.                                                                                                                                                                                                              
|   | [   ]                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   | [   ]                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                 
|41

END OF PAGE 58

|VI. | Plan Provision:   Distribution Alternatives For Participants Who Are Not A More Than 5% OwnerSelect (A), (B), (C) and/or (D), whichever is applicable.  Subsection (D) must be selected to the extent that there would otherwise be an elimination of a pre-retirement age 70-1/2 distribution option for Employees other than those listed above.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | [X]                                                                                                                                                                                                                                                                                                                                               
|    | [X]                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                   
|    | [   ]                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                   
|    | [   ]                                                                                                                                                                                                                                                                                                                                             



|VII.  | Plan Provision:   Mandatory Cash-out Rule                                                                                                                                                                                               
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      | [X]                                                                                                                                                                                                                                     
|VIII. | Plan Provision:   30-Day Waiver PeriodFor Plan Years beginning after December 31, 1996, if the Plan is subject to the Joint and Survivor rules, did the Plan provide distributions prior to the expiration of the 30-day waiting period?
|      | [X]                                                                                                                                                                                                                                     
|42   

END OF PAGE 59



|IX. | Plan Provision:   Suspension of Loan Repayments 
On or after December 12, 1994, did the Employer permit the suspension of loan repayments due to qualified military leave?
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | [X]                                                                                                                                                                       
|    | Effective Date:                                                                                                                                                           



|X. | Plan Provision:   Hardship Distributions Treated as Eligible Rollover DistributionsThe Employer had the option with respect to Hardship distributions made after December 31, 1998, to treat as eligible rollover distributions, or to delay the Effective Date until January 1, 2000.  Hardship distributions were not treated as eligible rollover distributions effective as of:
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | [X]                                                                                                                                                                                                                                                                                                                                                                                
|   | [   ]                                                                                                                                                                                                                                                                                                                                                                              
|   | [   ]                                                                                                                                                                                                                                                                                                                                                                              



|XI. | Plan Provision:   401(k) Safe Harbor ProvisionsFor Plan Years beginning after 1998, the Employer may implement safe harbor provisions under Code Sections 401(m)(11) and 401(k)(12).  Did the Plan elect safe harbor status?
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | [X]                                                                                                                                                                                                                         
|    | If yes, enter the formulas below:                                                                                                                                                                                           
|    |                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                             

|XII. | Other Plan Provisions:   Effective Date: | 
|---- | ---------------------------------------- | 
|43  

END OF PAGE 60



|1
|-

END OF PAGE 61





|2
|-

END OF PAGE 62





|THIS SPECIMEN LOAN POLICY DOCUMENT (LPD) HAS BEEN PREPARED BY DIVERSIFIED SOLELY AS A GUIDE FOR THE EMPLOYER'S ATTORNEY AND IS, OF COURSE, SUBJECT TO HIS LEGAL REVIEW AND ADVICE.  
IN ADOPTING THE LOAN POLICY DOCUMENT, CERTAIN FORMAL STEPS SHOULD BE TAKEN TO CONFIRM THE VALIDITY AND EFFECTIVE DATE OF SUCH ADOPTION.  AS A GENERAL RULE, IT IS ADVISABLE TO RECORD IN THE MINUTES OF A MEETING OF THE EMPLOYER'S BOARD OF DIRECTORS A BRIEF SUMMARY OF THE ACTION TAKEN WITH RESPECT TO THE LPD AS WELL AS A RECITATION OF THE ADOPTION DATE AND THE EFFECTIVE DATE, IF DIFFERENT.  THE ULTIMATE RESPONSIBILITY, OF COURSE, FOR THE TIMELY AND PROPER ADOPTION OF THE LOAN POLICY DOCUMENT RESTS WITH THE EMPLOYER AND HIS ATTORNEY.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

END OF PAGE 63

|LOAN POLICY DOCUMENT
|--------------------

END OF PAGE 64

|TABLE OF CONTENTS
|-----------------
|1.               
|2.               
|3.               
|4.               
|5.               
|6.               
|7.               
|8.               
|9.               
|Attachment A     
|Attachment B     

END OF PAGE 65



|LOAN POLICY DOCUMENT                                                               
|-----------------------------------------------------------------------------------
|The following features of this loan program shall be effective as of April 2, 2001.
|1.                                                                                 
|2.                                                                                 
|                                                                                   
|                                                                                   
|                                                                                   
|3.                                                                                 
|1                                                                                  

END OF PAGE 66



|4. | Conditions and Limitations of a Loan  
The Plan Administrator (or his representative) shall authorize a loan to a Participant subject to the following conditions and limitations:
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | (a)                                                                                                                                                                               
|   | (b)                                                                                                                                                                               
|   | (c)                                                                                                                                                                               
|   | (d)                                                                                                                                                                               
|   | (e)                                                                                                                                                                               
|   | (f)                                                                                                                                                                               
|   | (g)                                                                                                                                                                               
|   | (h)                                                                                                                                                                               
|2 

END OF PAGE 67



|   | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | No loan shall be made to an Owner-Employee or a Shareholder-Employee as herein defined.  Note, however, effective January 1, 2002, a loan is permitted to an Owner-Employee or a Shareholder-Employee.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|5. | Repayment of a Loan  
An Active Participant shall make loan repayments through payroll deduction.  The frequency of such repayments will be established in the loan application.  However, in no event shall such repayments be less frequently than quarterly.  Each payment shall be equal to the sum of: (a) a portion of the interest payable on the remaining principal and (b) an installment payment of the loan principal.  
A Former Participant, if permitted in Attachment B, or a Prior Participant or beneficiary who is a Party in Interest shall make loan repayments to the Plan Administrator in such a manner as determined by the Plan Administrator in Attachment B.  The Plan Administrator shall submit a consolidated check of repayments of all loans for such individuals no less frequently than once each quarter nor more frequently than once each month, unless agreed to by Diversified Investment Advisors (Diversified).  Each payment shall be equal to (a) a portion of the interest payable on the remaining principal and (b) an installment payment of the loan principal.  
Each repayment (inclusive of interest) shall be allocated to the Participant's Account in accordance with the investment elections for the appropriate contributions in effect at the time of repayment.  
In no event may any portion of such repayment be treated as a new or current contribution made by the individual.  
In the event a Participant or beneficiary who is a Party in Interest chooses to prepay a loan in full, such prepayment shall be subject to the Plan Administrator's consent.  However, when an Active Participant terminates employment with an outstanding loan balance, or the Plan terminates, the Plan Administrator's consent to prepayment is not required.
|6. | Procedures for Determining a Reasonable Effective Rate of Interest on a Loan  
The annual effective loan interest rate shall be not less than the prevailing rate of interest charged on similar commercial loans by persons in the business of lending money and shall be determined by the Plan Administrator in accordance with procedures set forth in Attachment B signed by the Plan Administrator.  Such determination shall be made on a nondiscriminatory basis for:  (a) all Active Participants in similar circumstances at the time the loan is authorized and (b) for those Prior Participants and beneficiaries who are Parties in Interest in similar circumstances at the time the loan is authorized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|7. | Collateral Which May Secure a Loan  
A loan shall be secured by an equivalent lien on the Participant's non-forfeitable interest in the Plan at the time of the loan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|8. | Events Constituting a Default on a Loan and Steps to Preserve Plan Assets in Such Event  
A loan made pursuant to the Plan's loan program shall be considered in default and treated as a Deemed Taxable Distribution if any of the following occurs and there is not a distributable event under the provisions of the Plan:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | i.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | the borrower does not make a loan repayment by the end of the calendar quarter following the quarter in which such payment was due,                                                                   
|3 

END OF PAGE 68

|   | ii.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | the borrower goes on authorized leave of absence (as specified in Attachment B) with reduced or insufficient pay to cover the loan repayments, and fails to resume loan repayments at the end of the plan's authorized leave of absence period,                                                                                                                                                                                                                                                                                                                                              
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | iii.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | the borrower revokes his payroll deduction election or it becomes invalid even though he remains in active employment, or                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | iv.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | a lien is made against the loan collateral.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | A loan made pursuant to the Plan's loan program shall be considered in default and treated as an Offset Taxable Distribution if:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | v.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | the borrower dies, or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | vi.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | the borrower terminates employment with the Employer and either: (a) does not voluntarily pay off the entire unpaid balance of the loan and all interest owing thereon within  a reasonable amount of time as determined by the secured party but not sooner than 15 days from the date he terminates employment  and not later than the date in 8 (i) above or (b) fails to continue to make scheduled loan repayments, if permitted in Attachment B, or makes a withdrawal (other than periodic withdrawals to cover loan repayments) while any portion of the loan remains outstanding, or
|   | vii.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | an event as described above under a Deemed Taxable Distribution occurred and the Participant is eligible for a distributable event under the provisions of the Plan.                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | To the extent permitted by the Code, upon the occurrence of any event constituting default, the Plan Administrator may foreclose on the Loan Note and attach the Participant's (or beneficiary's) security for the loan to the extent necessary to satisfy the amount in default.  However, foreclosure on the note and attachment of security will not occur until a distributable event occurs under the Plan.  
If elected in Attachment B, a Former Participant will be permitted to rollover the unpaid balance of a plan loan from this plan to a successor employer's plan ("successor plan"), provided that the promissory note from this plan is duly assigned to the successor Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|9. | Glossary  Deemed Taxable Distribution:  A Deemed Taxable Distribution generally results due to the failure to make scheduled loan repayments in accordance with the terms of the loan.  The deemed distribution is treated as a distribution only for tax purposes and does not result in a distribution or reduction of the participant's account.  Offset Taxable Distribution:  An Offset Distribution is an actual distribution from the plan which, in accordance with the terms of the loan, reduces a participant's account in order to repay the outstanding loan balance.  This generally happens when a participant terminates employment or when a distributable event has occurred under the terms of the plan.  Owner-Employee:  A self-employed individual (including any family member) who either (i) owns the entire interest in an unincorporated trade or business or (ii) in the case of a partnership, is a partner who owns more than 10% of either the capital interest or the profits interest in such partnership.  Participant:  As used in this Loan Policy Document means an "Active Participant", a "Former Participant" or a "Prior Participant" who is a "Party in Interest" (as defined in Section 3(14) of the Employee Retirement Income Security Act of 1974 (ERISA)) to the Plan.
|4 

END OF PAGE 69



|                                     | "Active Participant" means any individual who is participating in the Plan in accordance with its provisions.  
"Former Participant" means any individual who has been an Active Participant but who is no longer employed by the Employer and who still has a Participant's account in the Plan.  
"Prior Participant" means any Former Participant who is a Party in Interest.  
Any Active Employee who has a Participant's account in the Plan shall be eligible to apply for a loan under the same terms and conditions as an eligible active Participant (described above) and shall be considered a Participant for purposes of this Loan Policy Document.  Administration of this loan program, where it involves military reservists, shall be in accordance with applicable law.  Party in Interest:  As to this Plan, means any individual or entity described in Section 3(14) of ERISA, including, among others: (a) the Employer, (b) any Employee, officer, director or 10% or more shareholder of the Employer, (c) a service-provider to the Plan or (d) a fiduciary, counsel or employee of the Plan.  Generally, an Employee will cease to be a Party in Interest at the point that his/her service as an Employee is terminated, unless the former Employee satisfies the Party in Interest definition via some other category, (e.g. the former Employee remains a 10% or more shareholder of the Employer whose employees are covered by such Plan; he/she remains a fiduciary to the Plan, etc.).  Plan Administrator:  The person or persons authorized by the Employer to administer the Plan's loan provision.  Shareholder-Employee:  An Employee or officer of a subchapter S corporation (including any family member) who owns or is considered as owning on any day during the taxable year of such corporation, more than 5% of the outstanding stock of the corporation.
|------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ATTEST:                             
|By:                                 
|Title:                              
|Date:                               
|Account No.:  QK61757               
|Employer:       Paul Mueller Company
|5                                   

END OF PAGE 70



|Attachment A                        
|------------------------------------
|1.                                  
|2.                                  
|3.                                  
|4.                                  
|5.                                  
|                                    
|                                    
|                                    
|                                    
|                                    
|Account No.:  QK61757               
|Employer:       Paul Mueller Company
|6                                   

END OF PAGE 71



|Attachment B
|------------
|1.          
|            
|            
|2.          
|            
|3.          
|4.          
|5.          
|6.          
|7.          
|8.          
|9.          
|            
|            
|7           

END OF PAGE 72



|10.                                           | If permitted by the plan loan administrators of the transferor plan and this Plan, Participants [   ] will [X] will not be permitted to rollover the unpaid balance of a plan loan from a previous employer's qualified plan.            
|--------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|11.                                           | If permitted by the plan loan administrators of a successor employer's plan and this Plan, Participants [   ] will [X] will not be permitted to rollover the unpaid balance of a plan loan from this Plan to a successor employer's plan.
|12.                                           | Notwithstanding in Section 2 of this Loan Policy Document, rollover loans, into this Plan from a previous employer's Plan , will be treated as an existing loan and shall be subject to the number of loans limitation in the Plan.      
|By:                  /S/  DONALD E. GOLIK    
|Title:               Sr. Vice President & CFO
|Date:               September 29, 2003       
|Account No.:  QK61757                        
|Employer:       Paul Mueller Company         
|8                                            

END OF PAGE 73