Document:

Exhibit 10.2

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                              CORTLAND SAVINGS BANK
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                               401(k) Savings Plan
                             In RSI Retirement Trust

                As Amended And Restated Effective January 1, 1997
            (including provisions effective through January 1, 2001)

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                                Table Of Contents

Table Of Contents..............................................................i

Introduction...................................................................1

Article I -- Definitions.......................................................3

Article II -- Eligibility and Participation...................................12
         2.1      Eligibility.................................................12
         2.2      Ineligible Employees........................................12
         2.3      Participation...............................................13
         2.4      Termination of Participation................................13
         2.5      Eligibility upon Reemployment...............................13

Article III -- Contributions and Limitations on Contributions.................15
         3.1      Before-Tax Contributions....................................15
         3.2      Limitation on Before-Tax Contributions......................15
         3.3      Changes in Before-Tax Contributions.........................18
         3.4      Matching Contributions......................................19
         3.5      Special Contributions.......................................19
         3.6      Limitation on Matching Contributions........................20
         3.7      Aggregate Limit; Multiple Use of Alternative Limitation.....21
         3.8      Interest on Excess Contributions............................23
         3.9      Payment of Contributions to the Trust and the Separate
                    Agency....................................................24
         3.10     Rollover Contributions......................................24
         3.11     Section 415 Limits on Contributions.........................25

Article IV -- Vesting and Forfeitures.........................................30
         4.1      Vesting.....................................................30
         4.2      Forfeitures.................................................31
         4.3      Vesting upon Reemployment...................................32

Article V -- Trust Fund, Investment Accounts AND VOTING RIGHTS................33
         5.1      Trust Fund and Separate Assets..............................33
         5.2      Interim Investments.........................................33
         5.3      Account Values..............................................34
         5.4      Voting Rights...............................................34
         5.5      Tender Offers and Other Offers..............................35
         5.6      Dissenters' Rights..........................................36
         5.7      Separate Assets.............................................37
         5.8      Power to Invest in Employer Securities......................37

Article VI -- Investment Directions, Changes of Investment Directions and
                Transfers Between Investment Accounts.........................38
         6.1      Investment Directions.......................................38
         6.2      Change of Investment Directions.............................38

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         6.3      Transfers Between Investment Accounts.......................38
         6.4      Employees Other than Participants...........................39
         6.5      Restrictions on Investments in the Employer Stock Fund
                    for Certain Participants..................................40

Article VII -- Payment of Benefits............................................41
         7.1      General.....................................................41
         7.2      Non-Hardship Withdrawals....................................41
         7.3      Hardship Distributions......................................42
         7.4      Distribution of Benefits Following Retirement Or
                    Termination of Service....................................46
         7.5      Payments upon Retirement or Disability......................46
         7.6      Payments upon Termination of Service for Reasons Other Than
                    Retirement or Disability..................................48
         7.7      Payments Upon Death.........................................49
         7.8      Direct Rollover of Eligible Rollover Distributions. ........51
         7.9      Commencement of Benefits....................................52
         7.10     Manner of Payment of Distributions from the Employer Stock
                    Fund......................................................53

Article VIII -- Loans to Participants.........................................54
         8.1      Definitions and Conditions..................................54
         8.2      Loan Amount.................................................54
         8.3      Term of Loan................................................54
         8.4      Operational Provisions......................................55
         8.5      Repayments..................................................56
         8.6      Default.....................................................57
         8.7      Coordination of Outstanding Account and Payment of
                    Benefits..................................................57

Article IX -- Administration..................................................59
         9.1      General Administration of the Plan..........................59
         9.2      Designation of Named Fiduciaries............................59
         9.3      Responsibilities of Fiduciaries.............................59
         9.4      Plan Administrator..........................................60
         9.5      Committee...................................................60
         9.6      Powers and Duties of the Committee..........................61
         9.7      Certification of Information................................62
         9.8      Authorization of Benefit Payments...........................63
         9.9      Payment of Benefits to Legal Custodian......................63
         9.10     Service in More Than One Fiduciary Capacity.................63
         9.11     Payment of Expenses.........................................63
         9.12     Administration of Separate Assets...........................64

Article X -- Benefit Claims Procedure.........................................65
         10.1     Definition..................................................65
         10.2     Claims......................................................65
         10.3     Disposition of Claim........................................65
         10.4     Denial of Claim.............................................65
         10.5     Inaction by Plan Administrator..............................66

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         10.6     Right to Full and Fair Review...............................66
         10.7     Time of Review..............................................66
         10.8     Final Decision..............................................66

Article XI--  Amendment, Termination, and Withdrawal..........................67
         11.1     Amendment and Termination...................................67
         11.2     Withdrawal from the Trust Fund..............................67

Article XII--  Top-Heavy Plan Provisions......................................68
         12.1     Introduction................................................68
         12.2     Definitions.................................................68
         12.3     Minimum Contributions.......................................72
         12.4     Impact on Section 415 Maximum Benefits......................73

Article XIII--  Miscellaneous Provisions......................................75
         13.1     No Right to Continued Employment............................75
         13.2     Merger, Consolidation, or Transfer..........................75
         13.3     Nonalienation of Benefits...................................75
         13.4     Missing Payee...............................................75
         13.5     Affiliated Employers........................................76
         13.6     Successor Employer..........................................76
         13.7     Return of Employer Contributions............................76
         13.8     Adoption of Plan by Affiliated Employer.....................76
         13.9     Construction of Language....................................77
         13.10    Headings....................................................77
         13.11    Governing Law...............................................77

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<PAGE>

                                  Introduction

Effective  as  of  June  1,  1986  ("Effective  Date"),  Cortland  Savings  Bank
("Employer")  adopted the Retirement System for Savings  Institutions  Agreement
and  Declaration  of Trust  ("Agreement")  and the Cortland  Savings Bank 401(k)
Savings  Plan in  Retirement  System for Savings  Institutions  ("Prior  Plan").
Effective as of January 1, 1987,  the Prior Plan was amended and restated in its
entirety to comply with applicable laws.

Effective  as of August 1,  1990,  Retirement  System for  Savings  Institutions
effectuated  a  reorganization  through a transfer of its  operating  assets and
business and certain  intangible  assets to  subsidiaries  of a newly  organized
corporation,  Retirement System Group Inc., in exchange for shares of the common
stock of such company and the spin-off of such company through the allocation of
such  shares to the plans of the  affected  organizations  participating  in the
Trust on such date.  Effective July 9, 1991, under the  Stockholders'  Agreement
with  Retirement  System  Group  Inc.,  the  Plan  sold all of its  holdings  of
Retirement  System Group  stock.  Also  effective as of August 1, 1990,  (a) the
Trust  became  known  as the RSI  Retirement  Trust;  and  (b)  all  investment,
advisory,  administrative,   distribution  and  consulting  services  previously
performed by the Trustees are performed under contracts with the newly organized
corporation and/or its subsidiaries,  or such other servicing agencies as may be
selected by the Trustees from time to time.

Effective as of January 1, 1997,  the Prior Plan was amended and restated in its
entirety.  The amended and restated  plan became  known as the Cortland  Savings
Bank 401(k)  Savings  Plan in RSI  Retirement  Trust  ("Plan").  Effective as of
January 1, 1997, the Plan is further  amended and restated in its entirety.  The
Plan as amended and  restated,  supersedes  the  version of the Plan  adopted on
December  21,  1998.  The amended and  restated  Plan shall be known as Cortland
Savings Bank 401(k) Savings Plan in RSI Retirement Trust as Amended and Restated
effective  January 1, 1997,  Including  Provisions  Effective Through January 1,
2001, shall contain the terms and conditions set forth herein,  and shall in all
respects be subject to the  provisions of the Agreement  which are  incorporated
herein and made a part hereof.

The Plan as amended  and  restated  hereunder  incorporates  a cash or  deferred
arrangement  under  Section  401(k) of the  Internal  Revenue  Code of 1986,  as
amended ("Code").

The Plan shall  constitute a  profit-sharing  plan within the meaning of Section
401(a) of the Code,  without  regard to  current or  accumulated  profits of the
Employer, as provided in Section 401(a)(27) of the Code.

The Plan complies with all Internal Revenue Service  legislation and regulations
issued to date addressing  tax-qualified plans, including the Uniformed Services
Employment and  Reemployment  Rights Act of 1994,  the Uruguay Round  Agreements
Act, the Small Business Job  Protection Act of 1996, the Taxpayer  Relief Act of
1997 and the Restructuring and Reform Act of 1998 (commonly  referred to as GUST
II).

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Subject to any amendments that may subsequently be adopted by the Employer prior
to his Termination of Service, the provisions set forth in this Plan shall apply
to an Employee who is in the  employment  of the Employer on or after January 1,
1997. Except to the extent specifically required to the contrary under the terms
of this Plan,  for  terminations  of  employment  prior to January 1, 1997,  the
rights and benefits of a former  participant  shall be  determined in accordance
with the  provisions  of the Prior  Plan as in effect on the date of the  former
participant's termination of employment.

Effective as of the Conversion Date (the date of conversion of the Employer from
mutual to stock ownership),  the Employer adopted resolutions which (i) added an
investment  fund to the Plan  consisting  of common  stock of the CNY  Financial
Corp.  and (ii)  established  the  Plan as a Plan of  Partial  Participation  as
defined under the Agreement. In conjunction with such resolutions,  the Employer
adopted a Separate  Agreement to provide for the investment of such common stock
and designated a Separate  Agency to act as  trustee/custodian  of such Separate
Assets.

The Employer has herein  restated the Plan with the intention  that (a) the Plan
shall at all times be  qualified  under  Section  401(a)  of the  Code,  (b) the
Agreement and the Separate Agreement shall be tax-exempt under Section 501(a) of
the Code, and (c) Employer  contributions under the Plan shall be tax deductible
under Section 404 of the Code. The provisions of the Plan, the Agreement and the
Separate Agreement shall be construed to effectuate such intentions.

Effective  December 31, 2000, the Plan shall be frozen.  Effective  December 31,
2000, an Eligible Employee or a Participant shall no longer be permitted to: (A)
commence  or  recommence   participation   in  the  Plan  and  (B)  establish  a
Compensation  Reduction  Agreement  under the Plan. As of such date,  all future
Before-Tax  Contributions,  Matching  Contributions,  Rollover Contributions and
Special Contributions shall also cease under the Plan.

                                       2
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                                  Article I --
                                  Definitions

The following words and phrases shall have the meanings  hereinafter ascribed to
them. Those words and phrases which have limited  application are defined in the
respective Articles in which such terms appear.

1.1  Accounts  means the  Before-Tax  Contribution  Account  (including  Special
     --------
     Contributions,   if  any),  Matching   Contribution  Account  and  Rollover
     Contribution Account established under the Plan on behalf of an Employee.

1.2  Actual Contribution  Percentage means the ratio (expressed as a percentage)
     -------------------------------
     of the Matching Contributions under the Plan which are made on behalf of an
     Eligible   Employee  for  the  Plan  Year  to  such   Eligible   Employee's
     compensation  (as defined  under  Section  414(s) of the Code) for the Plan
     Year.  An  Eligible   Employee's   compensation   hereunder  shall  include
     compensation receivable from the Employer for that portion of the Plan Year
     during which the Employee is an Eligible  Employee,  up to a maximum of one
     hundred sixty thousand dollars  ($160,000) for the 1997, 1998 and 1999 Plan
     Years and one hundred seventy thousand dollars  ($170,000) for the 2000 and
     2001 Plan Years,  adjusted in multiples of ten thousand  dollars  ($10,000)
     for increases in the cost-of-living,  as prescribed by the Secretary of the
     Treasury under Section 401(a)(17)(B) of the Code.

1.3  Actual Deferral  Percentage  means the ratio (expressed as a percentage) of
     ---------------------------
     the  sum of  Before-Tax  Contributions,  and  those  Qualified  Nonelective
     Contributions  taken  into  account  under  the  Plan  for the  purpose  of
     determining the Actual Deferral Percentage,  which are made on behalf of an
     Eligible   Employee  for  the  Plan  Year  to  such   Eligible   Employee's
     compensation  (as defined  under  Section  414(s) of the Code) for the Plan
     Year.  An  Eligible   Employee's   compensation   hereunder  shall  include
     compensation receivable from the Employer for that portion of the Plan Year
     during which the Employee is an Eligible  Employee,  up to a maximum of one
     hundred sixty thousand dollars  ($160,000) for the 1997, 1998 and 1999 Plan
     Years and one hundred seventy thousand dollars  ($170,000) for the 2000 and
     2001 Plan Years,  adjusted in multiples of ten thousand  dollars  ($10,000)
     for increases in the cost-of-living,  as prescribed by the Secretary of the
     Treasury under Section 401(a)(17)(B) of the Code.

1.4  Affiliated  Employer  means a member  of an  affiliated  service  group (as
     --------------------
     defined  under  Section  414(m)  of  the  Code),  a  controlled   group  of
     corporations  (as defined  under  Section  414(b) of the Code),  a group of
     trades or businesses  under common control (as defined under Section 414(c)
     of the Code) of which the  Employer is a member,  any leasing  organization
     (as defined  under  Section  414(n) of the Code)  providing the services of
     Leased Employees to the Employer, or any other group provided for under any
     and all Income Tax Regulations promulgated by the Secretary of the Treasury
     under Section 414(o) of the Code.

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<PAGE>

1.5  Affiliated Service means employment with an employer during the period that
     ------------------
     such employer is an Affiliated Employer.

1.6  Agreement means the RSI Retirement Trust Agreement and Declaration of Trust
     ---------
     as amended and restated  August 1, 1990, as amended from time to time.  The
     Agreement shall be incorporated herein and constitute a part of the Plan.

1.7  Average  Actual  Contribution  Percentage  means the  average of the Actual
     -----------------------------------------
     Contribution  Percentages of (a) the group comprised of Eligible  Employees
     who are Highly Compensated Employees or (b) the group comprised of Eligible
     Employees  who  are   Non-Highly   Compensated   Employees,   whichever  is
     applicable.

1.8  Average Actual Deferral Percentage means the average of the Actual Deferral
     ----------------------------------
     Percentages of (a) the group comprised of Eligible Employees who are Highly
     Compensated  Employees or (b) the group comprised of Eligible Employees who
     are Non-Highly Compensated Employees, whichever is applicable.

1.9  Before-Tax  Contribution  Account  means the separate,  individual  account
     ---------------------------------
     established  on behalf of a Participant to which  Before-Tax  Contributions
     and Special Contributions if any, made on his behalf are credited, together
     with all earnings and appreciation  thereon,  and against which are charged
     any withdrawals,  loans and other  distributions made from such account and
     any losses,  depreciation or expenses allocable to amounts credited to such
     account.

1.10 Before-Tax  Contributions  means the  contributions of the Employer made in
     -------------------------
     accordance  with the  Compensation  Reduction  Agreements  of  Participants
     pursuant to Section 3.1.

1.11 Beneficiary  means any person who is  receiving or is eligible to receive a
     -----------
     benefit  under  Section  7.7 of the Plan upon the  -----------  death of an
     Employee or former Employee.

1.12 Board means the board of trustees, directors or other governing body of the
     -----
     Sponsoring Employer.

1.13 Code means the Internal Revenue Code of 1986, as amended from time to time.
     ----

1.14 Committee  means  the  person  or  persons  appointed  by the  Employer  in
     ---------
     accordance with Section 9.2(c).

1.15 Company means CNY Financial Corp. or any successor organization.
     -------

1.16 Compensation  means,  with  respect to a Plan Year,  the base  compensation
     ------------
     receivable  by an Employee from the Employer for the calendar year prior to
     any  reduction  pursuant  to  a  Compensation  Reduction  Agreement.   Base
     compensation shall include salary, Before-Tax Contributions, wages and wage
     continuation  payments  to an  Employee  who is absent  due to  illness  or
     disability of a short-term nature, the amount of any Employer contributions
     under a flexible benefits program  maintained by the Employer under Section

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     125 of the Code pursuant to a salary  reduction  agreement  entered into by
     the  Participant  under  Section  125 of the  Code,  or under a  "qualified
     transportation fringe" benefit described in Section 132(f) of the Code, and
     exclude overtime,  commissions,  expense  allowances,  severance pay, fees,
     bonuses,  contributions  other than  Before-Tax  Contributions  made by the
     Employer to the Plan, and  contributions  made by the Employer to any other
     pension,  insurance,  welfare,  or other employee benefit plan other than a
     Section 125 plan or a Section 132(f) plan.

     Commencing January 1, 1997, Compensation shall not exceed one hundred sixty
     thousand dollars  ($160,000) for the 1997, 1998 and 1999 Plan Years and one
     hundred  seventy  thousand  dollars  ($170,000)  for the 2000 and 2001 Plan
     Years,  adjusted  in  multiples  of  ten  thousand  dollars  ($10,000)  for
     increases in the  cost-of-living,  as  prescribed  by the  Secretary of the
     Treasury  under  Section  401(a)(17)(B)  of the Code.  For purposes of this
     Section 1.16,  if the Plan Year in which a  Participant's  Compensation  is
     being  made is less  than  twelve  (12)  calendar  months,  the  amount  of
     Compensation  taken into  account for such Plan Year shall be the  adjusted
     amount,  as  prescribed  by the  Secretary  of the Treasury  under  Section
     401(a)(17) of the Code,  for such Plan Year  multiplied by a fraction,  the
     numerator of which is the number of months taken into account for such Plan
     Year and the denominator of which is twelve (12). In determining the dollar
     limitation  hereunder,  compensation  received from any Affiliated Employer
     shall be recognized as Compensation.

1.17 Compensation  Reduction  Agreement means an agreement  between the Employer
     ----------------------------------
     and an Eligible Employee whereby the Eligible Employee agrees to reduce his
     Compensation during the applicable payroll period by an amount equal to any
     whole  percentage  thereof,  to the extent provided in Section 3.1, and the
     Employer  agrees to  contribute  to the Trust,  on behalf of such  Eligible
     Employee, an amount equal to the specified reduction in Compensation.

1.18 Conversion  Date means October 6, 1998,  the date of the  conversion of the
     ----------------
     Employer from mutual to stock ownership.

1.19 Disability means a physical or mental condition, determined after review of
     ----------
     those medical reports deemed  satisfactory for this purpose,  which renders
     the  Participant  totally  and  permanently  incapable  of  engaging in any
     substantial  gainful  employment  based  on  his  education,  training  and
     experience.

1.20 Early  Retirement Date means the first day of any month  coincident with or
     ----------------------
     following  the  date  the  Participant  completes  a  minimum  of five  (5)
     consecutive  years of Credited  Service,  provided that (i) the Participant
     has attained age sixty (60) or (ii) the  Participant  has completed  thirty
     (30) or more years of Vested  Service.  For purposes of this Section  1.20,
     credited  service  and vested  service  mean  Credited  Service  and Vested
     Service as defined in the Employer's defined benefit retirement plan.

1.21 Effective Date means June 1, 1986.
     --------------

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1.22 Eligible  Employee  means an Employee who is eligible to participate in the
     ------------------
     Plan pursuant to the provisions of Article II.

1.23 Employee means any person employed by the Employer.
     --------

1.24 Employer means Cortland Savings Bank and any Participating Affiliate or any
     --------
     successor  organization which shall continue to maintain the Plan set forth
     herein.

1.25 Employer Resolutions means resolutions adopted by the Board.
     --------------------

1.26 Employer Stock Fund means,  commencing on the Conversion Date, the Separate
     -------------------
     Assets  consisting of common stock of the Company which shall be maintained
     in an Investment Account established for such purpose.

1.27 Employment  Commencement  Date  means the date on which an  Employee  first
     ------------------------------
     performs an Hour of Service for the Employer upon initial employment or, if
     applicable, upon reemployment.

1.28 ERISA means the Employee Retirement Income Security Act of 1974, as amended
     -----
     from time to time.

1.29 Forfeitures   means  any  amounts   forfeited   pursuant  to  Section  4.2.
     -----------

1.30 Hardship means the condition described in Section 7.3.
     --------

1.31 Highly  Compensated  Employee means, with respect to a Plan Year commencing
     -----------------------------
     January 1, 1997, an Employee or an employee of an  Affiliated  Employer who
     is  such  an  Employee  or  employee  during  the  Plan  Year  for  which a
     determination is being made and who:

     (a)  during the Plan Year  immediately  preceding the Plan Year for which a
          determination  is being made  received  compensation  as defined under
          Section 414(q)(4) of the Code ("Section 414(q) Compensation") from the
          Employer, in excess of eighty thousand dollars ($80,000) and effective
          for the  2000  Plan  Year,  eighty-five  thousand  dollars  ($85,000),
          adjusted as prescribed by the Secretary of the Treasury  under Section
          415(d) of the Code, or

     (b)  at any time  during the Plan Year for which a  determination  is being
          made or at any time  during the Plan Year  immediately  preceding  the
          Plan Year for which a determination  is being made, was a five-percent
          owner as described under Section 414(q)(2) of the Code.

     For purposes of subsection (a) above,  effective for Plan Years  commencing
     after December 31, 1997, Section 414(q)  Compensation shall include (A) any
     elective deferral (as defined in Section 402(g)(3) of the Code, and (B) any
     amount which is  contributed or deferred by the Employer at the election of
     the  Employee  and  which is not  includable  in the  gross  income  of the
     Employee by reason of Section 125 or 457 of the Code.

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<PAGE>

     Highly Compensated Employee also means a former Employee who (A) incurred a
     Termination of Service prior to the Plan Year of the determination,  (B) is
     not  credited  with  an  Hour  of  Service  during  the  Plan  Year  of the
     determination  and (C) satisfied the  requirements of subsection (a) or (b)
     during either the Plan Year of his  Termination of Service or any Plan Year
     ending  coincident  with or subsequent to the Employee's  attainment of age
     fifty-five (55).

1.32 Hour of Service  means each hour for which an  Employee is paid or entitled
     ---------------
     to be paid by the Employer for the performance of duties.

1.33 Investment   Accounts  means  any  and  all  of  the  investment   accounts
     ---------------------
     established  by Board  resolution  and presented to the  Trustees,  for the
     purpose of  investing  contributions  made to the Plan Funds in  accordance
     with the provisions of the Agreement or Separate Agreement,  as applicable.
     The securities and other property in which  contributions to the Investment
     Accounts  of the Plan  Funds  may be  invested  shall be  specified  in the
     Agreement  or the  Separate  Agreement,  and the rights of the  Trustees or
     Separate  Agency shall be established in accordance  with the provisions of
     such Agreement and Separate Agreement, respectively.

1.34 Leased  Employee  means with respect to Plan Years  commencing on and after
     ----------------
     January 1, 1997, any individual  (other than an Employee of the Employer or
     an employee  of an  Affiliated  Employer)  who,  pursuant  to an  agreement
     between  the  Employer  or any  Affiliated  Employer  and any other  person
     ("leasing  organization"),  has performed  services for the Employer or any
     Affiliated  Employer on a substantially  full-time basis for a period of at
     least one (1) year,  and such  services  are  performed  under the  primary
     direction  of and control by the  Employer or any  Affiliated  Employer.  A
     determination  as to  whether  a Leased  Employee  shall be  treated  as an
     Employee  of the  Employer  or an  Affiliated  Employer  shall  be  made as
     follows:  a Leased  Employee  shall not be  considered  an  Employee of the
     Employer if: (a) such employee is a participant in a money purchase pension
     plan providing (i) a nonintegrated  Employer  contribution rate of at least
     ten percent (10%) of compensation,  as defined in Section  415(c)(3) of the
     Code,  however,  including amounts  contributed  pursuant to a compensation
     reduction  agreement which are excludable from the employee's  gross income
     under  Section 125,  Section  402(e)(3),  Section  402(h)(1)(B)  or Section
     403(b) of the Code; (ii) immediate plan  participation;  and (iii) full and
     immediate  vesting;  and (b) Leased  Employees do not constitute  more than
     twenty percent (20%) of the Employer's Non-Highly Compensated Employees.

1.35 Matching  Contribution  Account  means  the  separate,  individual  account
     -------------------------------
     established on behalf of a Participant to which the Matching  Contributions
     made on such Participant's behalf are credited,  together with all earnings
     and  appreciation  thereon,  and against which are charged any withdrawals,
     loans  and other  distributions  made from  such  account  and any  losses,
     depreciation or expenses allocable to amounts credited to such account.

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<PAGE>

1.36 Matching  Contributions  means  the  contributions  made  by  the  Employer
     -----------------------
     pursuant to Section 3.4.

1.37 Named Fiduciaries  means the Trustees,  the Committee and commencing on the
     -----------------
     Conversion  Date,  the  Separate  Agency  and such  other  parties  who are
     designated by the  Sponsoring  Employer to control and manage the operation
     and administration of the Plan.

1.38 Net Value means the value of an Employee's Accounts as determined as of the
     ---------
     Valuation Date  coincident  with or next following the event requiring such
     determination.

1.39 Non-Highly  Compensated  Employee  means,  with respect to a Plan Year,  an
     ---------------------------------
     Employee who is not a Highly Compensated Employee.

1.40 Normal  Retirement  Age means the date an Employee  attains age  sixty-five
     -----------------------
     (65).

1.41 Normal  Retirement Date means the first day of the month coincident with or
     -----------------------
     next following the Participant's Normal Retirement Age.

1.42 One Year Period of Severance means a twelve (12)  consecutive  month period
     ----------------------------
     following an  Employee's  Termination  of Service with the Employer  during
     which the Employee did not perform an Hour of Service.

     Notwithstanding the foregoing, if an Employee is absent from employment for
     maternity or paternity  reasons,  such absence during the twenty-four  (24)
     month  period  commencing  on the  first  date of such  absence  shall  not
     constitute a One Year Period of Severance.  An absence from  employment for
     maternity or paternity  reasons means an absence (a) by reason of pregnancy
     of the Employee, or (b) by reason of a birth of a child of the Employee, or
     (c) by reason of the  placement of a child with the Employee in  connection
     with the  adoption of such child by such  Employee,  or (d) for purposes of
     caring for such child for a period  beginning  immediately  following  such
     birth or placement.

1.43 Participant  means an Eligible Employee who participates in accordance with
     -----------
     the provisions of Section 2.3, and whose  participation in the Plan has not
     been terminated in accordance with the provisions of Section 2.4.

1.44 Participating  Affiliate  means  any  corporation  that  is a  member  of a
     ------------------------
     controlled  group of corporations  (within the meaning of Section 414(b) of
     the  Code)  of  which  the   Sponsoring   Employer  is  a  member  and  any
     unincorporated  trade or business  that is a member of a group of trades or
     businesses  under common  control  (within the meaning of Section 414(c) of
     the Code) of which the  Sponsoring  Employer is a member,  which,  with the
     prior  approval of the  Sponsoring  Employer  and subject to such terms and
     conditions as may be imposed by such Sponsoring  Employer and the Trustees,
     shall adopt this Plan in accordance with the provisions of Section 13.8 and
     the Agreement.  Such entity shall continue to be a Participating  Affiliate
     until such entity  terminates its  participation  in the Plan in accordance
     with Section 13.8.

                                       8
<PAGE>

1.45 Period of Service means a period  commencing with an Employee's  Employment
     -----------------
     Commencement  Date and  ending on the date  such  Employee  first  incurs a
     Termination of Service.

     Notwithstanding  the  foregoing,  the period  between  the first and second
     anniversary of the first date of a maternity or paternity absence described
     under  Section  1.42  shall  not be  included  in  determining  a Period of
     Service.

     A period during which an individual  was not employed by the Employer shall
     nevertheless  be  deemed  to be a  Period  of  Service  if such  individual
     incurred a Termination of Service and:

     (a)  such  Termination of Service was the result of resignation,  discharge
          or retirement and such individual is reemployed by the Employer within
          one (1) year after such Termination of Service; or

     (b)  such Termination of Service occurred when the individual was otherwise
          absent  for  less  than  one (1)  year  and he was  reemployed  by the
          Employer within one (1) year after the date such absence began.

     All Periods of Service not disregarded  under Sections 2.5 and 4.3 shall be
     aggregated.

     Wherever used in the Plan, a Period of Service means the quotient  obtained
     by dividing the days in all Periods of Service not disregarded hereunder by
     three hundred sixty-five (365) and disregarding any fractional remainder.

1.46 Plan means the Cortland  Savings Bank 401(k) Savings Plan in RSI Retirement
     ----
     Trust,  as  herein  restated  and as it may be  amended  from time to time.
     Commencing  on the  Conversion  Date,  the Plan  shall be a Plan of Partial
     Participation as defined under the Agreement.

1.47 Plan Administrator  means the person or persons who have been designated as
     ------------------
     such by the Employer in accordance with the provisions of Section 9.4.

1.48 Plan Funds means the assets of the Plan held in the Trust Fund and Separate
     ----------
     Assets held under any Separate Agreement.

1.49 Plan Year means the calendar year.
     ---------

1.50 Postponed  Retirement Date means the first day of the month coincident with
     --------------------------
     or next following a Participant's  date of actual  retirement  which occurs
     after his Normal Retirement Date.

1.51 Prior Plan means the  Cortland  Savings  Bank  401(k)  Savings  Plan in RSI
     ----------
     Retirement  Trust  as in  effect  on the  date  immediately  preceding  the
     Restatement Date.

1.52 Qualified  Nonelective   Contributions  means  contributions,   other  than
     --------------------------------------
     Matching  Contributions,  made by the Employer,  which (a) Participants may

                                       9
<PAGE>

     not elect to  receive  in cash in lieu of their  being  contributed  to the
     Plan; (b) are one hundred percent (100%)  nonforfeitable when made; and (c)
     are not distributable  under the terms of the Plan to Participants or their
     Beneficiaries until the earliest of:

     (i)  the  Participant's  death,  Disability or separation  from service for
          other reasons;

     (ii) the Participant's  attainment of age fifty-nine and one-half (59-1/2);
          or

     (iii) termination of the Plan.

     Special  Contributions defined under Section 1.60 are Qualified Nonelective
     Contributions.

1.53 Restatement Date means January 1, 1997.
     ----------------

1.54 Retirement  Date means the  Participant's  Normal  Retirement  Date,  Early
     ----------------
     Retirement Date or Postponed Retirement Date, whichever is applicable.

1.55 Rollover  Contribution  means  (a) a  contribution  to the  Plan  of  money
     ----------------------
     received by an Employee from a qualified plan or (b) a contribution  to the
     Plan of money transferred directly from another qualified plan on behalf of
     the Employee, which the Code permits to be rolled over into the Plan.

1.56 Rollover  Contribution  Account  means  the  separate,  individual  account
     -------------------------------
     established  on behalf of an Employee to which his  Rollover  Contributions
     are  credited  together  with all earnings and  appreciation  thereon,  and
     against which are charged any  withdrawals,  loans and other  distributions
     made from such account and any losses,  depreciation or expenses  allocable
     to amounts credited to such account.

1.57 Separate  Agency  means a trustee or a  custodian  holding  Plan Funds that
     ----------------
     maintains a Separate Agreement.

1.58 Separate  Agreement means the agreement  between the Employer and a trustee
     -------------------
     or a  custodian  to  provide  for the  investment  in  common  stock of the
     Company.   Such  Separate  Agreement  shall  be  incorporated   herein  and
     constitute a part of the Plan.

1.59 Separate  Assets  means  assets of the Plan as described in Article V which
     ----------------
     are held other than under the Trust.

1.60 Special Contributions means the contributions made by the Employer pursuant
     ---------------------
     to  Section  3.5.   Special   Contributions   are   Qualified   Nonelective
     Contributions as defined under Section 1.52.

1.61 Sponsoring   Employer  means  Cortland   Savings  Bank,  or  any  successor
     ---------------------
     organization which shall continue to maintain the Plan set forth herein.

                                       10
<PAGE>

1.62 Spouse means a person to whom the  Employee  was legally  married and which
     ------
     marriage had not been dissolved by formal divorce proceedings that had been
     completed prior to the date on which payments to the Employee are scheduled
     to commence.

1.63 Termination  of  Service  means  the  earlier  of (a) the  date on which an
     ------------------------
     Employee's service is terminated by reason of his resignation,  retirement,
     discharge,  death or Disability or (b) the first anniversary of the date on
     which such Employee's active service ceases for any other reason.

     Service  in the Armed  Forces of the  United  States of  America  shall not
     constitute a Termination  of Service but shall be considered to be a period
     of  employment by the Employer  provided that (i) such military  service is
     caused by war or other emergency or the Employee is required to serve under
     the laws of  conscription  in time of peace,  (ii) the Employee  returns to
     employment with the Employer within six (6) months following discharge from
     such military service and (iii) such Employee is reemployed by the Employer
     at a time  when the  Employee  had a right to  reemployment  at his  former
     position  or  substantially  similar  position  upon  separation  from such
     military duty in accordance  with seniority  rights as protected  under the
     laws of the United States of America.  Notwithstanding any provision of the
     Plan to the contrary, effective December 12, 1994, contributions,  benefits
     and  calculation  of Periods of Service with respect to qualified  military
     service will be provided in accordance with Section 414(u) of the Code.

     A leave of  absence  granted  to an  Employee  by the  Employer  shall  not
     constitute a Termination of Service  provided that the Participant  returns
     to the active  service of the Employer at the expiration of any such period
     for which leave has been granted.

     Notwithstanding the foregoing,  an Employee who is absent from service with
     the Employer beyond the first  anniversary of the first date of his absence
     for maternity or paternity  reasons set forth in Section 1.42 shall incur a
     Termination  of Service for purposes of the Plan on the second  anniversary
     of the date of such absence.

1.64 Trust means the trust  established  or maintained  under the Agreement with
     -----
     respect to the Plan.

1.65 Trust  Fund  means  the  assets  held in  accordance  with  the  Agreement.
     -----------

1.66 Trustees means the Trustees of the RSI Retirement Trust.
     --------

1.67 Units means the units of measure of an Employee's  proportionate  undivided
     -----
     beneficial interest in one or more of the Investment Accounts, valued as of
     the close of business.

1.68 Valuation Date means each business day.
     --------------

                                       11
<PAGE>

                                  Article II --
                          Eligibility and Participation

2.1  Eligibility

     (a)  Every  Employee who was a  Participant  in the Prior Plan  immediately
          prior to the  Restatement  Date shall  continue to be a Participant on
          the Restatement Date.

     (b)  Every other  Employee  who is not  excluded  under the  provisions  of
          Section  2.2 prior to  December  31,  2000,  shall  become an Eligible
          Employee upon satisfying the following conditions:

          (i)  completion of a Period of Service of one (1) year;

          (ii) attainment of age twenty-one (21); and

          (iii) classification as a salaried Employee.

     (c)  For purposes of determining  (i) if an Employee  completed a Period of
          Service  of one (1) year and  (ii)  Periods  of  Service  pursuant  to
          Section 2.5,  employment  with an Affiliated  Employer shall be deemed
          employment with the Employer.

     (d)  An Employee who otherwise  satisfies the  requirements of this Section
          2.1 and who is no longer  excluded under the provisions of Section 2.2
          shall immediately become an Eligible Employee.

     (e)  No Employee shall become an Eligible Employee and no Eligible Employee
          shall become a Participant in the Plan on or after December 31, 2000.

2.2  Ineligible Employees

     The following  classes of Employees are  ineligible to  participate  in the
     Plan:

     (a)  Employees compensated exclusively on a commission basis;

     (b)  Leased Employees;

     (c)  Employees  in a unit of Employees  covered by a collective  bargaining
          agreement with the Employer  pursuant to which employee  benefits were
          the  subject of good faith  bargaining  and which  agreement  does not
          expressly  provide that  Employees  of such unit be covered  under the
          Plan; and

     (d)  Owner-Employees.  For purposes of this Section 2.2(d),  Owner-Employee
          means  an  individual  who is a sole  proprietor  or who is a  partner

                                       12
<PAGE>

          owning  more than ten  percent  (10%) of either the capital or profits
          interest of a partnership which adopted the Plan.

     (e)  Employees  whose  Employment  Commencement  Date  occurs  on or  after
          December 31, 2000.

2.3  Participation

     Participation  in the Plan is  voluntary  with  respect to an election  for
     Before-Tax contributions. An Eligible Employee may elect to make Before-Tax
     Contributions  in  accordance  with Section 3.1, as of the first day of any
     payroll  period  of  any  calendar  month  following  satisfaction  of  the
     eligibility requirements set forth in Section 2.1. In addition, an Eligible
     Employee will participate in the Plan upon  satisfaction of the eligibility
     requirements  set forth in Section  2.1,  with respect to  eligibility  for
     Special Contributions in accordance with Section 3.5.

     An election for Before-Tax  Contributions  shall be evidenced by completing
     and filing the form prescribed by the Committee not less than ten (10) days
     prior to the date  participation  is to commence.  Such form shall include,
     but not be limited to, a Compensation Reduction Agreement, a designation of
     Beneficiary,  and an  investment  direction as described in Section 6.1. By
     completing  and filing such form,  the  Eligible  Employee  authorizes  the
     Employer  to make the  applicable  payroll  deductions  from  Compensation,
     commencing on the first applicable payday coincident with or next following
     the effective date of the Eligible Employee's  election to participate.  In
     the case of Special  Contributions,  a  Participant  shall  complete a form
     prescribed by the  Committee,  designating a Beneficiary  and an investment
     direction as described in Section 6.1.

     Effective  December 31, 2000, no Employee or Eligible Employee may commence
     or recommence participation in the Plan.

2.4  Termination of Participation

     Participation  in the Plan  shall  terminate  on the  earlier of the date a
     Participant  dies or the entire  vested  interest  in the Net Value of such
     Participant's Accounts has been distributed.

2.5  Eligibility upon Reemployment

     If an Employee  incurs a One Year Period of Severance  prior to  satisfying
     the eligibility requirements of Section 2.1, service prior to such One Year
     Period of Severance shall be disregarded and such Employee must satisfy the
     eligibility requirements of Section 2.1 as a new Employee.

     If an Employee incurs a One Year Period of Severance  after  satisfying the
     eligibility requirements of Section 2.1 and:

                                       13
<PAGE>

     (a)  if such Employee is not vested in any Matching Contributions, incurs a
          One Year Period of  Severance  and again  performs an Hour of Service,
          the Employee  shall  receive  credit for Periods of Service prior to a
          One Year Period of  Severance  only if the number of  consecutive  One
          Year  Periods of  Severance  is less than the greater of: (i) five (5)
          years or (ii) the  aggregate  number  of such  Employee's  Periods  of
          Service  credited  before his One Year  Period of  Severance.  If such
          former  Employee's  Periods of Service prior to his One Year Period of
          Severance are recredited  under this Section 2.5, such former Employee
          shall  be  eligible  to  participate  immediately  upon  reemployment,
          provided such Employee is not excluded  from  participating  under the
          provisions  of  Section  2.2.  If such  former  Employee's  Periods of
          Service prior to his One Year Period of Severance  are not  recredited
          under this Section 2.5,  such  Employee  must satisfy the  eligibility
          requirements of Section 2.1 as a new Employee;

     (b)  if such Employee is vested in any Matching Contributions, incurs a One
          Year Period of Severance  and again  performs an Hour of Service,  the
          Employee  shall receive credit for Periods of Service prior to his One
          Year Period of Severance and shall be eligible to  participate  in the
          Plan  immediately  upon  reemployment,  provided  such Employee is not
          excluded from participating under the provisions of Section 2.2.

                                       14
<PAGE>

                                 Article III --
                 Contributions and Limitations on Contributions

3.1  Before-Tax Contributions

     Prior  to  December  31,  2000,   the   Employer   shall  make   Before-Tax
     Contributions  for each payroll  period in an amount equal to the amount by
     which a  Participant's  Compensation  has been reduced with respect to such
     period  under  his  Compensation   Reduction  Agreement.   Subject  to  the
     limitations  set forth in Sections  3.2 and 3.11,  the amount of  reduction
     authorized by the Eligible  Employee shall be limited to whole  percentages
     of  Compensation  and shall not be less than two  percent  (2%) nor greater
     than ten percent (10%) (and,  effective  October 1, 1998,  nor greater than
     six  percent  (6%)).  The  Before-Tax  Contributions  made on  behalf  of a
     Participant shall be credited to such Participant's Before-Tax Contribution
     Account and shall be invested in  accordance  with  Article VI of the Plan.
     Commencing  on  and  after   December  31,  2000,  no  further   Before-Tax
     Contributions will be made by the Employer on behalf of any Employee.

3.2  Limitation on Before-Tax Contributions

     (a)  Commencing January 1, 1997, the percentage of Before-Tax Contributions
          made on behalf of a Participant who is a Highly  Compensated  Employee
          shall be limited so that the Average  Actual  Deferral  Percentage for
          the group of such Highly Compensated  Employees for the Plan Year does
          not exceed the greater of:

          (i)  the Average Actual Deferral  Percentage for the group of Eligible
               Employees who are Non-Highly Compensated Employees for

               (A)  in the case of the 1997 Plan Year,  the current or preceding
                    Plan  Year  (as   determined  by  the  Plan   Administrator)
                    multiplied by 1.25; and

               (B)  in the case of Plan Years  beginning on and after January 1,
                    1998, the preceding Plan Year multiplied by 1.25; or

          (ii) the Average Actual Deferral  Percentage for the group of Eligible
               Employees who are Non-Highly Compensated Employees for

               (A)  in the case of the 1997 Plan Year,  the current or preceding
                    Plan  Year  (as  determined  by  the  Plan   Administrator),
                    multiplied by two (2), and;

               (B)  in the case of Plan Years  beginning on and after January 1,
                    1998, the preceding Plan Year multiplied by two (2),

                                       15
<PAGE>

                    provided,  in the case of (ii)(A) or (ii)(B) above, that the
                    difference in the Average  Actual  Deferral  Percentage  for
                    eligible   Highly   Compensated   Employees   and   eligible
                    Non-Highly Compensated Employees does not exceed two percent
                    (2%). Use of this alternative limitation shall be subject to
                    the  provisions  of Income Tax  Regulations  Section  issued
                    under Code Section  401(m)(9)  regarding the multiple use of
                    the alternative  limitation set forth in Sections 401(k) and
                    401(m) of the Code.

          The  preceding  Plan Year  testing  method can only be modified if the
          Plan meets the  requirements for changing to current Plan Year testing
          as set forth in Internal Revenue Service Notice 98-1, or any successor
          future guidance issued by the Internal Revenue Service.

          The  above   subsections   (i)  and  (ii)  shall  be  subject  to  the
          distribution provisions of the last paragraph of Section 3.11(f).

          If the Average  Actual  Deferral  Percentage for the group of eligible
          Highly Compensated  Employees exceeds the limitations set forth in the
          preceding paragraph, the amount of excess Before-Tax Contributions for
          a Highly  Compensated  Employee  shall be determined by "leveling" (as
          hereafter  defined),  the  highest  Before-Tax  Contributions  made by
          Highly  Compensated   Employees  until  the  Average  Actual  Deferral
          Percentage test for the group of eligible Highly Compensated Employees
          complies  with  such  limitations.  For  purposes  of this  paragraph,
          "leveling"  means reducing the Before-Tax  Contribution  of the Highly
          Compensated  Employee with the highest Before-Tax  Contribution amount
          to the extent required to:

          (I)  enable the Average Actual Deferral  Percentage  limitations to be
               met, or

          (II) cause such Highly Compensated Employee's Before-Tax  Contribution
               amount to equal the dollar amount of the Before-Tax  Contribution
               of  the  Highly  Compensated   Employee  with  the  next  highest
               Before-Tax  Contribution  amount by  distribution  of such excess
               Before-Tax  Contributions,  as  described  below,  to the  Highly
               Compensated  Employee whose  Before-Tax  Contributions  equal the
               highest dollar amount,

          and  repeating  such  process  until  the  Average   Actual   Deferral
          Percentage  for the group of  eligible  Highly  Compensated  Employees
          complies with the Average Actual Deferral Percentage limitations.

          If Before-Tax Contributions made on behalf of a Participant during any
          Plan Year exceed the maximum amount applicable to a Participant as set
          forth above, any such contributions, including any earnings thereon as
          determined  under Section 3.8, shall be  characterized as Compensation
          payable to the Participant  and shall be paid to the Participant  from
          his  Before-Tax  Contribution  Account no later than two and  one-half
          (2-1/2) months after the close of such Plan Year.

                                       16
<PAGE>

          If  Before-Tax  Contributions  during any Plan Year exceed the maximum
          amount  applicable to a Participant  as set forth above,  any Matching
          Contributions,  including  any earnings  thereon as  determined  under
          Section 3.8, that are attributable to Before-Tax  Contributions  which
          are  returned  to the  Participant  as  provided  hereunder,  shall be
          treated as Forfeitures under Section 4.2.

          In the event  that the Plan  satisfies  the  requirements  of  Section
          401(k), 401(a)(4) or 410(b) of the Code only if aggregated with one or
          more  other  plans,  or  if  one  or  more  other  plans  satisfy  the
          requirements of Section  401(k),  401(a)(4) or 410(b) of the Code only
          if aggregated with the Plan, then this Section 3.2 shall be applied by
          determining the Actual Deferral  Percentages of Eligible  Employees as
          if all such plans were a single plan.

          If any Highly Compensated Employee is a Participant in two (2) or more
          cash  or  deferred  arrangements  of the  Employer,  for  purposes  of
          determining the Actual Deferral Percentage with respect to such Highly
          Compensated  Employee,  all  cash or  deferred  arrangements  shall be
          treated as one (1) cash or deferred arrangement.

     (b)  Before-Tax  Contributions  under this Plan, and elective deferrals (as
          defined  under  Section  402(g)  of the Code)  under all other  plans,
          contracts  or  arrangements  of the  Employer  made on  behalf  of any
          Participant  during the 1997 Plan Year shall not exceed nine  thousand
          five hundred  dollars  ($9,500).  During the 1998 and 1999 Plan Years,
          such amount  shall be increased  to ten  thousand  dollars  ($10,000).
          During the 2000 and 2001 Plan Years, such amount shall be increased to
          ten thousand five hundred dollars ($10,500). For Plan Years commencing
          after December 31, 1997, Before-Tax Contributions under this Plan, and
          any elective  deferrals (as defined under Section  402(g) of the Code)
          under all other plans,  contracts or  arrangements of the Employer may
          be further  adjusted as  prescribed  by the  Secretary of the Treasury
          under Section 415(d) of the Code. This Section 3.2(b) shall be subject
          to the  distribution  provisions  of the  last  paragraph  of  Section
          3.11(f).

     (c)  If Before-Tax Contributions made on behalf of a Participant during any
          Plan Year exceed the dollar  limitation  set forth in subsection  (b),
          such contributions, including any earnings thereon as determined under
          Section 3.8, shall be  characterized  as  Compensation  payable to the
          Participant and shall be paid to the  Participant  from his Before-Tax
          Contribution  Account no later than  April 15th of the  calendar  year
          following the close of such Plan Year.

          If  Before-Tax  Contributions  during any Plan Year exceed the maximum
          dollar amount  applicable to a Participant  as set forth in subsection
          (b), any Matching  Contributions,  including  any earnings  thereon as
          determined  under  Section 3.8,  that are  attributable  to Before-Tax
          Contributions  which  are  returned  to the  Participant  as  provided
          hereunder, shall be treated as Forfeitures under Section 4.2.

                                       17
<PAGE>

     (d)  Subject to the requirements of Sections 401(a) and 401(k) of the Code,
          the maximum amounts under subsections (a) and (b) may differ in amount
          or  percentage  as  between  individual  Participants  or  classes  of
          Participants,   and  any  Compensation   Reduction  Agreement  may  be
          terminated,  amended,  or  suspended  without  the consent of any such
          Participant or  Participants in order to comply with the provisions of
          such subsections (a) and (b).

3.3  Changes in Before-Tax Contributions

     Unless  (a) an  election  is made  to the  contrary,  or (b) a  Participant
     receives a Hardship  distribution  pursuant  to  Section  7.3(c)(iii),  the
     percentage  of  Before-Tax  Contributions  made  under  Section  3.1  shall
     continue in effect so long as the Participant has a Compensation  Reduction
     Agreement in force. A Participant  may, by completing the applicable  form,
     prospectively  increase or decrease  the rate of  Before-Tax  Contributions
     made on his behalf to any of the percentages  authorized  under Section 3.1
     or suspend Before-Tax  Contributions without withdrawing from participation
     in the Plan.  Such  form must be filed at least ten (10) days  prior to the
     first day of the  payroll  period  with  respect to which such change is to
     become effective.  A Participant who has Before-Tax  Contributions  made on
     his behalf suspended may resume such contributions by completing and filing
     the  applicable  form.  Only twice in any Plan Year may an election be made
     which would prospectively increase,  decrease, suspend or resume Before-Tax
     Contributions made on behalf of a Participant.  A Participant may terminate
     his Before-Tax Contributions at any time.

     Notwithstanding  the  foregoing,  a  Participant  who  receives  a Hardship
     distribution  pursuant to Section  7.3(c)(iii)  shall have his Compensation
     Reduction  Agreement deemed null and void and all Before-Tax  Contributions
     made on behalf of such  Participant  shall be suspended  until the later to
     occur of: (i) twelve (12) months after receipt of the Hardship distribution
     and (ii) the first payroll  period which occurs ten (10) days following the
     completion and filing of a Compensation Reduction Agreement authorizing the
     resumption of Before-Tax Contributions to be made on his behalf. Before-Tax
     Contributions  following a Hardship  distribution  made pursuant to Section
     7.3(c)(iii) shall be subject to the following limitations:

     (A)  Before-Tax   Contributions   for  the   Participant's   taxable   year
          immediately  following  the taxable year of the Hardship  distribution
          shall not exceed the applicable limit under Section 402(g) of the Code
          for such  next  taxable  year less the  amount  of such  Participant's
          Before-Tax   Contributions  for  the  taxable  year  of  the  Hardship
          distribution, and

     (B)  the percentage of Before-Tax  Contributions  for the twelve (12) month
          period  following the mandatory  twelve (12) month  suspension  period
          shall not exceed the  percentage of Before-Tax  Contributions  made on
          behalf  of the  Participant  as set  forth  in the  last  Compensation
          Reduction Agreement in effect prior to the Hardship distribution.

                                       18
<PAGE>

          Before-Tax  Contributions  based on Compensation for the period during
          which such  contributions  had been  suspended or decreased may not be
          made up at a later date.

          Notwithstanding any provisions of the Plan to the contrary, commencing
          on and after December 31, 2000, a Participant's Compensation Reduction
          Agreement shall be deemed null and void.

3.4  Matching Contributions

     (a)  The Employer shall,  make  contributions on behalf of each Participant
          in an amount  equal to  seventy-five  percent  (75%)  (and,  effective
          October 1, 1998,  fifty  (50%)) of the first six percent  (6%) of such
          Participant's  Before-Tax  Contributions  up to a maximum  of four and
          one-half percent (4.5%) (and, effective October 1, 1998, three percent
          (3%)) of the Participant's Compensation.

     (b)  Matching Contributions shall be credited to the Participant's Matching
          Contribution  Account and shall be invested in accordance with Article
          VI of the Plan.

     (c)  If a Participant  terminates  his Before-Tax  Contributions,  Matching
          Contributions  attributable to such  contributions will also cease. If
          Before-Tax  Contributions  are suspended,  the Matching  Contributions
          attributable  to such  contributions  will be  suspended  for the same
          period.  Subject to the  limitations  set forth in subsection  (a), if
          Before-Tax   Contributions   are  increased  or  decreased,   Matching
          Contributions  attributable to such contributions will be increased or
          decreased  during  the same  period.  Matching  Contributions  for the
          period during which  Before-Tax  Contributions  had been  suspended or
          decreased may not be made up at a later date.

     (d)  Matching  Contributions may be reviewed and modified by the Employer's
          Board, from time to time.

     (e)  Commencing  on and  after  December  31,  2000,  no  further  Matching
          Contributions   will  be  made  by  the  Employer  on  behalf  of  any
          Participant under the Plan.

3.5  Special Contributions

     In  addition  to  any  other  contributions,   the  Employer  may,  in  its
     discretion,  make Special  Contributions  for a Plan Year to the Before-Tax
     Contribution Account of any Eligible Employees.  Such Special Contributions
     may be limited to the amount  necessary  to insure  that the Plan  complies
     with  the   requirements  of  Section  401(k)  of  the  Code.  The  Special
     Contributions  made  on  behalf  of a  Participant  shall  be  invested  in
     accordance with Article VI of the Plan.

     The Employer may provide that Special  Contributions be made only on behalf
     of each Eligible Employee who is a Non-Highly  Compensated  Employee on the

                                       19
<PAGE>

     last day of the Plan Year. Such Special Contributions shall be allocated in
     proportion to each such Eligible Employee's Compensation for the Plan Year.

     Any  other  provision  of the  Plan  to the  contrary  notwithstanding,  no
     Matching   Contributions   shall  be  made  with  respect  to  any  Special
     Contributions. Commencing on and after December 31, 2000, the Employer will
     not make Special Contributions to the Plan for any Plan Year.

3.6  Limitation on Matching Contributions

     Commencing  January 1, 1997,  the Actual  Contribution  Percentage  made on
     behalf  of a  Participant  who is a Highly  Compensated  Employee  shall be
     limited so that the Average Actual Contribution Percentage for the group of
     such Highly  Compensated  Employees  for the Plan Year shall not exceed the
     greater of:

     (a)  the Average Actual  Contribution  Percentage for the group of Eligible
          Employees who are Non-Highly Compensated Employees for

          (i)  in the case of the 1997 Plan Year,  the current or preceding Plan
               Year (as  determined  by the Plan  Administrator)  multiplied  by
               1.25, and

          (ii) in the case of the Plan Years  beginning on and after  January 1,
               1998, the preceding Plan Year multiplied by 1.25; or

     (b)  the Average Actual  Contribution  Percentage for the group of Eligible
          Employees who are Non-Highly Compensated Employees for

          (i)  in the case of the 1997 Plan Year,  the current or preceding Plan
               Year (as determined by the Plan Administrator)  multiplied by two
               (2), and

          (ii) in the case of Plan Years beginning on and after January 1, 1998,
               the preceding Plan Year, multiplied by two (2);

          provided, in the case of (b)(i) and (b)(ii) above, that the difference
          in the Average Actual  Contribution  Percentage for Highly Compensated
          Employees and  Non-Highly  Compensated  Employees  does not exceed two
          percent (2%). Use of this  alternative  limitation shall be subject to
          the  provisions  of Income Tax  Regulations  issued under Code Section
          401(m)(9) regarding the multiple use of the alternative deferral tests
          set forth in Sections 401(k) and 401(m) of the Code.

     The  preceding  Plan Year  testing  method can only be modified if the Plan
     meets the  requirements  for  changing to current  Plan Year testing as set
     forth in Internal  Revenue  Service  Notice 98-1, or any  successor  future
     guidance issued by the Internal Revenue Service.

                                       20
<PAGE>

     The above  subsections  (a) and (b) shall be  subject  to the  distribution
     provisions of the last paragraph of Section 3.11(f).

     If the Average  Actual  Contribution  Percentage  for the group of eligible
     Highly  Compensated  Employees  exceeds  the  limitations  set forth in the
     preceding  paragraph,  the amount of excess  Matching  Contributions  for a
     Highly Compensated Employee shall be determined by "leveling" (as hereafter
     defined,)  the highest  Matching  Contributions  until the  Average  Actual
     Contribution  Percentage test for the group of eligible Highly  Compensated
     Employees  complies with such limitations.  For purposes of this paragraph,
     "leveling" means reducing the Matching  Contributions made on behalf of the
     Highly Compensated  Employee with the highest Matching  Contribution amount
     to the extent required to:

     (I)  enable the Average Actual  Contribution  Percentage  limitations to be
          met, or

     (II) cause such Highly Compensated  Employee's Matching Contribution amount
          to equal the dollar amount of the Matching Contribution made on behalf
          of the Highly  Compensated  Employee  with the next  highest  Matching
          Contribution amount

     and repeating such process until the Average Actual Contribution Percentage
     for the group of eligible Highly  Compensated  Employees  complies with the
     Average Actual Contribution Percentage limitations.

     If Matching  Contributions  during any Plan Year exceed the maximum  amount
     applicable to a  Participant  as set forth above,  any such  contributions,
     including  any earnings  thereon as determined  under  Section 3.8,  shall,
     whether or not vested, be treated as Forfeitures under Section 4.2.

     In the event that the Plan satisfies the  requirements  of Section  401(m),
     401(a)(4) or 410(b) of the Code only if  aggregated  with one or more other
     plans,  or if one or more other plans satisfy the  requirements  of Section
     401(m),  401(a)(4) or 410(b) of the Code only if aggregated  with the Plan,
     then  this  Section  3.6  shall  be  applied  by  determining   the  Actual
     Contribution  Percentages of Eligible Employees as if all such plans were a
     single plan.

     If any Highly  Compensated  Employee  is a  Participant  in two (2) or more
     plans of the Employer,  for purposes of determining the Actual Contribution
     Percentage with respect to such Highly Compensated Employee, all such plans
     shall be treated as one (1) plan.

3.7  Aggregate Limit; Multiple Use of Alternative Limitation

     Commencing January 1, 1997,  multiple use of the alternative  limitation in
     determining  the Average  Actual  Deferral  Percentage  and Average  Actual
     Contribution Percentage shall not be permitted.

                                       21
<PAGE>

     Multiple  use of the  alternative  limitation  occurs  if, for the group of
     Eligible  Employees who are Highly  Compensated  Employees,  the sum of the
     Average Actual  Deferral  Percentage  and the Average  Actual  Contribution
     Percentage exceeds the Aggregate Limit.

     For purposes of this Section 3.7, Aggregate Limit shall mean the greater of
     (a) or (b), where (a) and (b) are as follows:

     (a)  the sum of:

          (i)  one hundred twenty-five percent (125%) of the greater of:

               (A)  the  Average  Actual  Deferral  Percentage  for the group of
                    Eligible Employees who are Non-Highly  Compensated Employees
                    for the Plan Year (1) in the case of the 1997 Plan Year, the
                    current or preceding  Plan Year (as  determined  by the Plan
                    Administrator)  multiplied  by 1.25,  and (2) in the case of
                    the Plan Year  beginning on and after  January 1, 1998,  the
                    preceding Plan Year multiplied by 1.25; or

               (B)  the Average Actual Contribution  Percentage for the group of
                    Eligible Employees who are Non-Highly  Compensated Employees
                    for (1) in the case of the 1997 the Plan Year,  the  current
                    or  preceding   Plan  Year  (as   determined   by  the  Plan
                    Administrator) multiplied by two (2), and (2) in the case of
                    Plan Years  beginning  on and after  January  1,  1998,  the
                    preceding Plan Year, multiplied by two (2); and

          (ii) two (2) plus the lesser of subsection (a)(i)(A) or (a)(i)(B).  In
               no event shall this amount exceed two hundred  percent  (200%) of
               the lesser of subsection (a)(i)(A) or (a)(i)(B).

     (b)  the sum of:

          (i)  one hundred twenty-five percent (125%) of the lesser of:

               (A)  the  Average  Actual  Deferral  Percentage  for the group of
                    Eligible Employees who are Non-Highly  Compensated Employees
                    for (1) in the case of the 1997 Plan  Year,  the  current or
                    preceding   Plan   Year   (as   determined   by   the   Plan
                    Administrator) multiplied by two (2), and (2) in the case of
                    Plan Years  beginning  on and after  January  1,  1998,  the
                    preceding Plan Year, multiplied by two (2); or

               (B)  the Average Actual Contribution  Percentage for the group of
                    Eligible Employees who are Non-Highly  Compensated Employees
                    for (1) in the case of the 1997 Plan  Year,  the  current or

                                       22
<PAGE>

                    preceding   Plan   Year   (as   determined   by   the   Plan
                    Administrator) multiplied by two (2), and (2) in the case of
                    Plan Years  beginning  on and after  January  1,  1998,  the
                    preceding Plan Year, multiplied by two (2); and

          (ii) two (2) plus the greater of subsection (b)(i)(A) or (b)(i)(B). In
               no event shall this amount exceed two hundred  percent  (200%) of
               the greater of subsection (b)(i)(A) or (b)(i)(B).

          If  multiple  use of the  alternative  limitation  occurs,  the excess
          Before-Tax  Contributions for Highly  Compensated  Employees under the
          Plan shall be reduced in accordance with Section 3.2(a).

3.8  Interest on Excess Contributions

     In the event Before-Tax Contributions and/or Matching Contributions made on
     behalf of a  Participant  during a Plan Year exceed the  maximum  allowable
     amount  as   described   in  Section   3.2(a),   3.2(b)  or  3.6   ("Excess
     Contributions")  and such Excess  Contributions  and  earnings  thereon are
     payable to the  Participant  under the  applicable  provisions of the Plan,
     earnings on such Excess  Contributions  for the period  commencing with the
     first day of the Plan Year in which the Excess  Contributions were made and
     ending with the date of payment to the  Participant  ("Allocation  Period")
     shall be determined in accordance with the provisions of this Section 3.8.

     The earnings allocable to excess Before-Tax Contributions for an Allocation
     Period  shall be equal  to the sum of (a)  plus (b)  where  (a) and (b) are
     determined as follows:

     (a)  The amount of earnings  attributable to the  Participant's  Before-Tax
          Contribution  Account for the Plan Year multiplied by a fraction,  the
          numerator of which is the excess Before-Tax  Contributions and Special
          Contributions  for the Plan Year, and the  denominator of which is the
          sum of (i) the Net Value of the Participant's  Before-Tax Contribution
          Account as of the last day of the immediately  preceding Plan Year and
          (ii) the contributions  (including the Excess  Contributions)  made to
          the Before-Tax Contribution Account on the Participant's behalf during
          such Plan Year.

     (b)  The amount of earnings  attributable to the  Participant's  Before-Tax
          Contribution  Account for the period  commencing with the first day of
          the Plan Year in which payment is made to the  Participant  and ending
          with the date of payment to the Participant  multiplied by a fraction,
          the  numerator  of which is the excess  Before-Tax  Contributions  and
          Special  Contributions made to the Before-Tax  Contribution Account on
          the  Participant's  behalf during the Plan Year immediately  preceding
          the Plan Year in which the payment is made to the Participant, and the
          denominator of which is the Net Value of the Participant's  Before-Tax
          Contribution  Account  on the  first day of the Plan Year in which the
          payment is made to the Participant.

                                       23
<PAGE>

          The  earnings  allocable  to  excess  Matching  Contributions  for  an
          Allocation  Period  shall be equal to the sum of (A) and (B) where (A)
          and (B) are determined as follows:

          (A)  The amount of earnings attributable to the Participant's Matching
               Contribution  Account for the Plan Year multiplied by a fraction,
               the numerator of which is the excess Matching  Contributions  for
               the Plan Year, and the denominator of which is the sum of (I) the
               Net Value of the Participant's  Matching  Contribution Account as
               of the last day of the  immediately  preceding Plan Year and (II)
               the contributions  (including the Excess  Contributions)  made to
               the Matching  Contribution  Account on the  Participant's  behalf
               during such Plan Year.

          (B)  The amount of earnings attributable to the Participant's Matching
               Contribution Account for the period commencing with the first day
               of the Plan Year in which payment is made to the  Participant and
               ending with the date of payment to the Participant  multiplied by
               a  fraction,  the  numerator  of  which  is the  excess  Matching
               Contributions  made to the Matching  Contribution  Account on the
               Participant's  behalf during the Plan Year immediately  preceding
               the Plan Year in which the  payment  is made to the  Participant,
               and  the   denominator   of  which  is  the  Net   Value  of  the
               Participant's  Matching  Contribution Account on the first day of
               the Plan Year in which the payment is made to the Participant.

3.9  Payment of Contributions to the Trust and the Separate Agency

     As soon as possible after each payroll period, but not less often than once
     a month, the Employer shall deliver (a) to the Trustees: (i) the Before-Tax
     Contributions  required to be made to the Trust during such payroll  period
     under the applicable  Compensation Reduction Agreements and (ii) the amount
     of all  Matching  Contributions  required  to be made to the Trust for such
     payroll  period  and  (b)  to  the  Separate  Agency:  (i)  the  Before-Tax
     Contributions  required  to be  made to the  Separate  Agency  during  such
     payroll period under the applicable  Compensation  Reduction Agreements and
     (ii) the amount of all  Matching  Contributions  required to be made to the
     Separate Agency for such payroll period.

     Special  Contributions  to the Trust and to the  Separate  Agency  shall be
     forwarded by the  Employer to the  Trustees  and to the Separate  Agency no
     later than the time for filing the  Employer's  federal  income tax return,
     plus  any  extensions  thereon,  for  the  Plan  Year  to  which  they  are
     attributable.

3.10 Rollover Contributions

     Subject  to  such  terms  and  conditions  as may  from  time  to  time  be
     established  by the  Committee,  the Trustees and the Separate  Agency,  an
     Employee,  whether  or  not  a  Participant,   may  contribute  a  Rollover
     Contribution to the Plan Fund; provided,  however, that such Employee shall
     submit a written  certification,  in form and substance satisfactory to the
     Committee, that the contribution qualifies as a Rollover Contribution.  The
     Committee shall be entitled to rely on such  certification and shall accept

                                       24
<PAGE>

     the  contribution  on behalf of the Trustees and the  Separate  Agency,  as
     applicable.  Rollover  Contributions  shall be  credited  to an  Employee's
     Rollover  Contribution  Account and shall be invested  in  accordance  with
     Article VI of the Plan.

     Commencing on and after December 31, 2000, an Employee or Participant  will
     not be permitted to contribute a Rollover Contribution to the Plan Fund.

3.11 Section 415 Limits on Contributions

     (a)  For purposes of this Section  3.11,  the  following  terms and phrases
          shall have the meanings hereafter ascribed to them:

          (i)  "Annual  Additions"  shall mean the sum of the following  amounts
               credited to a Participant's Accounts for the Limitation Year: (A)
               Employer  contributions,  including Before-Tax  Contributions and
               Matching Contributions; (B) any other Employee contributions; (C)
               forfeitures;  and  (D)(1)  amounts  allocated  to  an  individual
               medical  account,  as defined in Section  415(l)(2)  of the Code,
               which is part of a pension  or  annuity  plan  maintained  by the
               Employer  and (2) amounts  derived  from  contributions,  paid or
               accrued,  which  are  attributable  to  post-retirement   medical
               benefits allocated to the separate account of a key employee,  as
               defined  in  Section  419A(d)(3)  of the  Code,  under a  welfare
               benefit fund as defined in Section 419(e) of the Code, maintained
               by the Employer are treated as Annual Additions. Annual Additions
               include the following  contributions  credited to a Participant's
               Accounts  for the  Limitation  Year,  regardless  of whether such
               contributions have been distributed to the Participant:

               (I)  Before-Tax  Contributions  which exceed the  limitations set
                    forth in Section 3.2(a);

               (II) Before-Tax   Contributions   made  on  behalf  of  a  Highly
                    Compensated  Employee which exceed the limitations set forth
                    in Section 3.2(b); and

               (III)Matching   Contributions   made  on   behalf   of  a  Highly
                    Compensated  Employee which exceed the limitations set forth
                    in Section 3.6.

          (ii) "Current  Accrued  Benefit"  shall  mean a  Participant's  annual
               accrued  benefit  under a defined  benefit  plan,  determined  in
               accordance with the meaning of Section  415(b)(2) of the Code, as
               if the  Participant had separated from service as of the close of
               the last  Limitation  Year  beginning  before January 1, 1987. In
               determining  the  amount  of  a  Participant's   Current  Accrued
               Benefit, the following shall be disregarded:

               (A)  any  change  in the  terms  and  conditions  of the  defined
                    benefit plan after May 5, 1986; and

                                       25
<PAGE>

               (B) any cost of living adjustment occurring after May 5, 1986.

          (iii)"Defined Benefit Plan" and "Defined Contribution Plan" shall have
               the meanings set forth in Section 415(k) of the Code.

          (iv) "Defined  Benefit Plan Fraction" for a Limitation Year shall mean
               a fraction, (A) the numerator of which is the aggregate projected
               annual  benefit  (determined as of the last day of the Limitation
               Year) of the Participant under all defined benefit plans (whether
               or not  terminated)  maintained  by the  Employer,  and  (B)  the
               denominator  of which is the lesser  of: (I) the  product of 1.25
               (or such  adjustment  as  required  under  Section  12.4) and the
               dollar  limitation  in effect under Section  415(b)(1)(A)  of the
               Code,  adjusted as  prescribed  by the  Secretary of the Treasury
               under Section  415(d) of the Code, or (II) the product of 1.4 and
               the amount  which may be taken into  account with respect to such
               Participant  under  Section  415(b)(1)(B)  of the  Code  for such
               Limitation  Year.  Notwithstanding  the above, if the Participant
               was a  participant  in one or more defined  benefit  plans of the
               Employer in existence on May 6, 1986,  the dollar  limitation  of
               the  denominator  of this  fraction  will  not be less  than  one
               hundred twenty-five  percent (125%) of the Participant's  Current
               Accrued Benefit.

          (v)  "Defined  Contribution Plan Fraction" for a Limitation Year shall
               mean a  fraction,  (A) the  numerator  of which is the sum of the
               Participant's  Annual  Additions  under all defined  contribution
               plans (whether or not terminated)  maintained by the Employer for
               the current year and all prior Limitation Years (including annual
               additions   attributable  to  the   Participant's   nondeductible
               employee  contributions  to all defined benefit plans (whether or
               not  terminated)  maintained  by  the  Employer),   and  (B)  the
               denominator of which is the sum of the maximum  aggregate amounts
               for the  current  year and all prior  Limitation  Years  with the
               Employer  (regardless of whether a defined  contribution plan was
               maintained by the Employer).  "Maximum  aggregate  amounts" shall
               mean the lesser of (I) the product of 1.25 (or such adjustment as
               required under Section 12.4) and the dollar  limitation in effect
               under Section 415(c)(1)(A) of the Code, adjusted as prescribed by
               the Secretary of the Treasury  under Section  415(d) of the Code,
               or (II) the  product of 1.4 and the amount that may be taken into
               account  under  Section   415(c)(1)(B)  of  the  Code;  provided,
               however,   that  the  Committee  may  elect,  on  a  uniform  and
               nondiscriminatory  basis, to apply the special transition rule of
               Section  415(e)(6) of the Code  applicable  to  Limitation  Years
               ending before January 1, 1983 in determining  the  denominator of
               the Defined Contribution Plan Fraction.

               If the Employee was a Participant  as of the end of the first day
               of the first  Limitation  Year beginning after December 31, 1986,

                                       26
<PAGE>

               in one or  more  defined  contribution  plans  maintained  by the
               Employer which were in existence on May 6, 1986, the numerator of
               this  fraction  will be adjusted if the sum of this  fraction and
               the defined benefit fraction would otherwise exceed 1.0 under the
               terms of this Plan. Under the adjustment,  an amount equal to the
               product  of (1) the excess of the sum of the  fractions  over 1.0
               times (2) the  denominator of this fraction,  will be permanently
               subtracted from the numerator of this fraction. The adjustment is
               calculated  using the  fractions  as they would be computed as of
               the end of the last Limitation  Year beginning  before January 1,
               1987, and disregarding any changes in the terms and conditions of
               the Plan made  after May 5,  1986,  but  using  the  Section  415
               limitation  applicable to the first  Limitation Year beginning on
               or after January 1, 1987. The annual  addition for any Limitation
               Year beginning before January 1, 1987, shall not be recomputed to
               treat all Employee contributions as Annual Additions.

          (vi) "Limitation Year" shall mean the calendar year.

          (vii)"Section 415 Compensation" shall be a Participant's  remuneration
               as defined in Income Tax Regulations Sections 1.415-2(d)(2),  (3)
               and (6). For purposes of this  Section,  effective for Plan Years
               commencing  after  December  31, 1997,  Section 415  Compensation
               shall  include (A) any  elective  deferral (as defined in Section
               402(g)(3) of the Code, and (B) any amount which is contributed or
               deferred by the  Employer at the  election  of the  Employee  and
               which is not  includable  in the gross  income of the Employee by
               reason of Section 125 or 457 of the Code.

     (b)  For purposes of applying the Section 415 limitations, the Employer and
          all members of a controlled  group of  corporations  (as defined under
          Section 414(b) of the Code as modified by Section 415(h) of the Code),
          all commonly controlled trades or businesses (as defined under Section
          414(c) of the Code as  modified  by Section  415(h) of the Code),  all
          affiliated  service  groups (as defined  under  Section  414(m) of the
          Code) of which the Employer is a member, any leasing  organization (as
          defined under Section  414(n) of the Code) that employs any person who
          is  considered an Employee  under  Section  414(n) of the Code and any
          other  group  provided  for under any and all Income  Tax  Regulations
          promulgated  by the Secretary of the Treasury  under Section 414(o) of
          the Code, shall be treated as a single employer.

     (c)  If the Employer maintains more than one qualified Defined Contribution
          Plan on behalf of its  Employees,  such plans  shall be treated as one
          Defined  Contribution  Plan for  purposes of applying  the Section 415
          limitations of the Code.

     (d)  Notwithstanding  anything contained in the Plan to the contrary, in no
          event shall the Annual  Additions  to a  Participant's  Accounts for a
          Limitation Year exceed the lesser of:

                                       27
<PAGE>

          (i)  thirty  thousand  dollars  ($30,000),   and  with  respect  to  a
               Limitation  Year  commencing  on and after  January 1,  1995,  as
               adjusted in  multiples  of five  thousand  dollars  ($5,000)  for
               increases in the cost-of-living as prescribed by the Secretary of
               the Treasury under Section 415(d) of the Code; or

          (ii) twenty-five  percent  (25%)  of  the  Participant's  Section  415
               Compensation  for such  Limitation  Year.  For  purposes  of this
               subsection  (d)(ii),  Section 415 Compensation  shall not include
               (A) any  contribution  for medical benefits within the meaning of
               Section  419A(f)(2)  of the Code after  separation  from service,
               which is  otherwise  treated as an Annual  Addition,  and (B) any
               amount  otherwise  treated as an Annual  Addition  under  Section
               415(l)(1) of the Code.

     (e)  If, as a result of the allocation of forfeitures,  a reasonable  error
          in estimating a Participant's annual Compensation,  a reasonable error
          in determining the amount of elective  deferrals that may be made with
          respect to any Participant,  or as otherwise permitted by the Internal
          Revenue Service, the Annual Additions to a Participant's  Accounts for
          a Limitation  Year exceed the  limitation  set forth in subsection (d)
          above  during  the  Limitation  Year,  any or  all  of  the  following
          contributions  on  behalf  of such  Participant  shall be  immediately
          adjusted to that amount which will result in such Annual Additions not
          exceeding the limitation set forth in subsection (d):

          (i)  Before-Tax Contributions;

          (ii) Special Contributions; and

          (iii) Matching Contributions.

     (f)  If the Annual  Additions to a Participant's  Accounts for a Limitation
          Year exceed the  limitations  set forth in subsection (d) above at the
          end of a Limitation  Year, such excess amounts shall not be treated as
          Annual  Additions in such Limitation Year but shall instead be treated
          in accordance with the following:

          (i)  such  excess  amounts  shall  be used to  reduce  the  Before-Tax
               Contributions,     Matching    Contributions    and/or    Special
               Contributions  to be made on  behalf of such  Participant  in the
               succeeding  Limitation Year, provided that such Participant is an
               Eligible Employee during such succeeding Limitation Year. If such
               Participant  is not  an  Eligible  Employee  or  ceases  to be an
               Eligible  Employee  during such succeeding  Limitation  Year, any
               remaining excess amounts from the preceding Limitation Year shall
               be  allocated  during  such  succeeding  Limitation  Year to each
               Participant  then  actively   participating  in  the  Plan.  Such
               allocation shall be in proportion to the Before-Tax Contributions
               made to date on his behalf for such Limitation Year, or the prior
               Limitation Year with respect to an allocation as of the beginning

                                       28
<PAGE>

               of a Limitation Year, before any other  contributions are made in
               such succeeding Limitation Year; or

          (ii) such excess  amounts may be reduced by the  distribution  of such
               Participant's Before-Tax Contributions to such Participant.

          The Employer  will,  at the end of the  Limitation  Year in which such
          excess  amounts  were  made,  choose the manner in which to treat such
          excess amounts on a uniform and  nondiscriminatory  basis on behalf of
          all affected  Participants.  If such excess amounts are reduced by the
          distribution  described  in  subsection  (ii),  the  amounts  of  such
          distribution  shall not be taken into account for purposes of Sections
          3.2(a)(i) and (ii),  3.6(a) and (b), or in determining  the limitation
          in  Section   3.2(b).   In  addition,   any   Matching   Contributions
          attributable to such amounts shall constitute Forfeitures as described
          in Section 4.2.

     (g)  If a  Participant  participates  in both (i) the Plan and/or any other
          defined  contribution  plan  maintained  by the  Employer and (ii) any
          defined benefit plan or plans  maintained by the Employer,  the sum of
          the Defined  Contribution  Plan Fraction and the Defined  Benefit Plan
          Fraction  shall not exceed the sum of 1.0. This  subsection  (g) shall
          not apply with respect to Plan Years  beginning on or after January 1,
          2000.

     (h)  If, for any Plan Year  commencing  prior to  January 1, 2000,  the sum
          determined under  subsection (g) for any Participant  exceeds 1.0, the
          Defined  Benefit Plan Fraction of such  Participant as provided in the
          defined  benefit plan or plans  maintained  by the  Employer  shall be
          reduced in order that such sum shall not exceed 1.0.

                                       29
<PAGE>

                                  Article IV --
                             Vesting and Forfeitures

4.1  Vesting

     (a)  An  Employee  shall  always  be fully  vested  in the Net Value of his
          Before-Tax  Contribution  Account  and the Net  Value of his  Rollover
          Contribution Account.

     (b)  A  Participant  shall  become  fully  vested  in the Net  Value of his
          Matching  Contribution  Account upon the earlier of such Participant's
          (i) Normal  Retirement Age or (ii) termination of employment by reason
          of death, Disability or reaching his Retirement Date.

     (c)  A Participant  who is not fully vested under  subsection  (b) shall be
          vested  in the Net  Value  of his  Matching  Contribution  Account  in
          accordance with the following schedule:

               Period of Service                      Vested Percentage
            -----------------------------             -----------------
            Less than 1 year                                      0%
            1 year but less than 2 years                         20%
            2 years but less than 3 years                        40%
            3 years but less than 4 years                        60%
            4 years but less than 5 years                        80%
            5 or more years                                     100%

          For purposes of  determining a  Participant's  Period of Service under
          this  subsection  (c)  and  under  Section  4.3,  employment  with  an
          Affiliated Employer shall be deemed employment with the Employer.

          For purposes of determining a Participant's  vested  percentage of the
          Net Value of his Matching Contribution Account, all Periods of Service
          shall be included  except  Periods of Service  prior to an  Employee's
          attainment of age eighteen (18).

     (d)  The vested Net Value of a Participant's  Matching Contribution Account
          shall be determined as follows:

          (i)  the Participant's  Matching  Contribution  Account shall first be
               increased to include (A) that  portion of such Account  which had
               been previously withdrawn in accordance with Sections 7.2 and 7.3
               and (B) that portion of such Account  which had been  borrowed in
               accordance  with Article VIII and is  outstanding  on the date of
               this determination;

          (ii) the applicable  vested  percentage  determined in accordance with
               subsection   (c)  shall  then  be  applied  to  such  Account  as
               determined in accordance with clause (i);

                                       30
<PAGE>

          (iii)the amount  determined in accordance  with clause (ii) shall then
               be reduced by (A) that  portion  of such  Account  which had been
               previously  withdrawn in accordance with Sections 7.2 and 7.3 and
               (B) that  portion  of such  Account  which had been  borrowed  in
               accordance  with Article VIII and is  outstanding  on the date of
               this determination.

4.2  Forfeitures

     If a  Participant  who is not fully vested in the Net Value of his Accounts
     terminates employment,  the Units representing the nonvested portion of his
     Accounts  shall  constitute  Forfeitures.  Forfeitures  shall be treated as
     Matching  Contributions  and  shall be  applied  to  reduce  the  amount of
     subsequent Matching Contributions otherwise required to be made.

     With respect to a Participant's Matching Contribution Account,  anything in
     Section 4.1 to the  contrary  notwithstanding,  any  Matching  Contribution
     forfeited in accordance  with the sixth  paragraph of Section  3.2(a),  the
     second  paragraph of Section 3.2(c),  the fifth paragraph of Section 3.6 or
     the second  paragraph  of Section  3.11(f),  shall be applied to reduce the
     amount of subsequent Matching Contributions otherwise required to be made.

     If a former  Participant  who is not  fully  vested in the Net Value of his
     Accounts receives a distribution of his vested interest in the Net Value of
     his  Accounts  and is  subsequently  reemployed  by the  Employer  prior to
     incurring five (5) consecutive One Year Periods of Severance, he shall have
     the Net  Value  of his  Accounts  as of the date he  previously  terminated
     employment   reinstated   provided   he  repays  the  full  amount  of  his
     distribution  in cash or cash  equivalents  before  the end of the five (5)
     consecutive  One Year  Periods  of  Severance  commencing  with the date of
     distribution.  The  reinstated  amount shall be  unadjusted by any gains or
     losses occurring subsequent to the Participant's  termination of employment
     and prior to repayment of such distribution. Any forfeited amounts required
     to  be  reinstated  hereunder  shall  be  made  by an  additional  Employer
     contribution for such Plan Year. If such former  Participant does not repay
     the full amount of his distribution in cash or cash equivalents  before the
     end of the five (5)  consecutive  One Year Periods of Severance  commencing
     with the date of distribution, the Net Value of his Accounts as of the date
     he previously terminated employment shall not be reinstated.

     If a former  Participant  who is not  fully  vested in the Net Value of his
     Accounts  elects to defer  distribution  of his vested account  interest or
     elects to receive  installment  payments  pursuant to Section  7.5(e),  the
     nonvested portion of such former  Participant's  Account shall be forfeited
     as of the date of his Termination of Service;  provided,  however,  that if
     such former Participant is reemployed before incurring five (5) consecutive
     One Year Periods of Severance,  the nonvested portion of his Accounts shall
     be reinstated in its entirety,  unadjusted by any gains or losses occurring
     subsequent to the distribution.

                                       31
<PAGE>

4.3  Vesting upon Reemployment

     (a)  For  purposes  of this  Section  4.3,  "Period  of  Service"  means an
          Employee's  Period of Service  determined in  accordance  with Section
          4.1(c).

     (b)  For the purpose of determining a Participant's  vested interest in the
          Net Value of his Matching Contribution Account:

          (i)  if an  Employee  is not  vested  in any  Matching  Contributions,
               incurs a One Year Period of Severance and again  performs an Hour
               of Service, such Employee shall receive credit for his Periods of
               Service  prior to his One Year  Period of  Severance  only if the
               number of consecutive  One Year Periods of Severance is less than
               the greater of: (A) five (5) years or (B) the aggregate number of
               his  Periods of Service  credited  before his One Year  Period of
               Severance.

          (ii) if  a   Participant   is   partially   vested  in  any   Matching
               Contributions,  incurs a One Year Period of  Severance  and again
               performs  an Hour of  Service,  such  Participant  shall  receive
               credit for his Periods of Service prior to his One Year Period of
               Severance; provided, however, that after five (5) consecutive One
               Year Periods of Severance, a former Participant's vested interest
               in  the  Net   Value  of  the   Matching   Contribution   Account
               attributable  to Periods of Service  prior to his One Year Period
               of Severance shall not be increased as a result of his Periods of
               Service following his reemployment date.

          (iii)if a Participant  is fully vested in any Matching  Contributions,
               incurs a One Year Period of Severance and again  performs an Hour
               of Service,  such  Participant  shall receive  credit for all his
               Periods of Service prior to his One Year Period of Severance.

                                       32
<PAGE>

                                  Article V --
                Trust Fund, Investment Accounts AND VOTING RIGHTS

5.1  Trust Fund and Separate Assets

     The Employer has adopted the Agreement as the funding  vehicle with respect
     to the Investment Accounts. Commencing on the Conversion Date, the Employer
     has adopted the Separate  Agreement as the funding  vehicle with respect to
     the Employer Stock Fund.

     All contributions forwarded by the Employer to the Trustees pursuant to the
     Agreement  shall be held by them in  trust  and  shall be used to  purchase
     Units on behalf of the Plan in accordance  with the terms and provisions of
     the  Agreement.  Contributions  designated for investment in any Investment
     Account of the Plan Funds shall be allocated  proportionately  to and among
     the classes of Units so selected for such Investment Account.

     Commencing  on the  Conversion  Date,  all  contributions  forwarded by the
     Employer  to the  Separate  Agency  pursuant  to the Plan and the  Separate
     Agreement  shall be held by them in trust in accordance  with the terms and
     provisions of the Separate Agreement.

     All  assets  of the  Plan  shall  be held  for  the  exclusive  benefit  of
     Participants,  Beneficiaries or other persons entitled to benefits. No part
     of the corpus or income of the Plan Funds  shall be used for,  or  diverted
     to,  purposes  other  than  for  the  exclusive  benefit  of  Participants,
     Beneficiaries  or other  persons  entitled  to benefits  and for  defraying
     reasonable  administrative  expenses  of the Plan,  Trust and the  Separate
     Agency.  No person  shall have any  interest in or right to any part of the
     earnings of the Plan Funds, or any rights in, to or under the Plan Funds or
     any part of its  assets,  except to the extent  expressly  provided  in the
     Plan.

     The  Trustees  and the  Separate  Agency shall invest and reinvest the Plan
     Funds, and the income therefrom,  without distinction between principal and
     income,  in accordance  with the terms and  provisions of the Agreement and
     Separate Agreement,  respectively. The Trustees and the Separate Agency may
     maintain such part of the Trust Fund and the Separate Assets, respectively,
     in cash uninvested as they shall deem necessary or desirable.  The Trustees
     shall be the owner of and have  title to all the  assets of the Plan  Funds
     other  than the  Separate  Assets  and shall  have full power to manage the
     same,  except as  otherwise  specifically  provided in the  Agreement.  The
     Separate  Agency shall be the owner of and shall have title to the Separate
     Assets,  and shall have full power to manage the same,  except as otherwise
     specifically provided in the Separate Agreement.

5.2  Interim Investments

     The Trustees may temporarily  invest any amounts  designated for investment
     in any of the Investment  Accounts of the Trust Fund  identified  herein in
     the Investment Account which provides for short-term investments and retain

                                       33
<PAGE>

     the value of such  contributions  therein  pending the  allocation  of such
     values to the Investment Accounts  designated for investment.  The Separate
     Agency may temporarily invest any amounts in short-term  investment pending
     investment in the Employer Stock Fund.

5.3  Account Values

     The Net Value of the Accounts of an Employee means the sum of the total Net
     Value of each Account maintained on behalf of the Employee in the Trust and
     Separate  Agency as determined as of the Valuation Date  coincident with or
     next following the event requiring the determination of such Net Value. The
     assets of any Account shall consist of the Units  credited to such Account.
     The applicable  Units shall be valued from time to time by the Trustees and
     Separate  Agency,  respectively,  in  accordance  with  the  Agreement  and
     Separate  Agreement,  but not less often than monthly. On the basis of such
     valuations,  each  Employee's  Accounts  shall be  adjusted  to reflect the
     effect of income collected and accrued, realized and unrealized profits and
     losses, expenses and all other transactions during the period ending on the
     applicable Valuation Date.

     Upon  receipt  by  the  Trustees  of  Before-Tax  Contributions,   Matching
     Contributions,  and,  if  applicable,  Rollover  Contributions  and Special
     Contributions,  and  commencing on the Conversion  Date,  upon request by a
     Separate Agency of any Before-Tax  Contributions,  Matching  Contributions,
     and, if applicable, Rollover Contributions and Special Contributions,  such
     contributions  shall be  applied  to  purchase  Units  for such  Employee's
     Account,  (a) Units other than Units of the Employer Stock Fund,  using the
     value of such Units as of the close of  business on the date  received  and
     (b) Units of the Employer  Stock Fund,  using the value of such Units as of
     the close of  business on the date  received.  Whenever a  distribution  or
     withdrawal is made to a Participant,  Beneficiary or other person  entitled
     to benefits,  the  appropriate  number of Units  credited to such  Employee
     shall be reduced accordingly and each such distribution or withdrawal shall
     be charged  against the Units of the  Investment  Accounts of such Employee
     pro rata according to their respective values.

     For the purposes of this  Section 5.3,  fractions of Units as well as whole
     Units may be purchased or redeemed for the Account of an Employee.

5.4  Voting Rights

     Each Participant with Units in the Employer Stock Fund shall have the right
     to participate  confidentially in the exercise of voting rights appurtenant
     to shares held in such  Investment  Account,  provided that such person had
     Units in such Account as of the most recent  Valuation Date coincident with
     or preceding the  applicable  record date for which records are  available.
     Such  participation  shall be  achieved by  completing  and filing with the
     inspector of elections,  or such other person who shall be  independent  of
     the issuer of shares as the Committee  shall  designate,  at least ten (10)
     days  prior to the date of the  meeting  of holders of shares at which such
     voting rights will be exercised, a written direction in the form and manner
     prescribed by the  Committee.  The  inspector of  elections,  or other such

                                       34
<PAGE>

     person designated by the Committee shall tabulate the directions given on a
     strictly  confidential basis, and shall provide the Committee with only the
     final results of the tabulation.  The final results of the tabulation shall
     be followed by the  Committee  in the  direction  as to the manner in which
     such  voting  rights  shall be  exercised.  As to each  matter in which the
     holders of shares are entitled to vote:

     (a)  a number of affirmative votes shall be cast equal to the product of:

          (i)  the total number of shares held in the Employer  Stock Fund as of
               the applicable record date; and

          (ii) a fraction,  the numerator of which is the aggregate value (as of
               the Valuation Date coincident  with or immediately  preceding the
               applicable  record date) of the Units in the Employer  Stock Fund
               of all persons  directing that an  affirmative  vote be cast, and
               the  denominator  of  which  is the  aggregate  value  (as of the
               Valuation  Date  coincident  with or  immediately  preceding  the
               applicable  record date) of the Units in the Employer  Stock Fund
               of all persons  directing that an affirmative or negative vote be
               cast; and

     (b)  a number of negative votes shall be cast equal to the product of:

          (i)  the total number of shares held in the Employer  Stock Fund as of
               the applicable record date; and

          (ii) a fraction,  the numerator of which is the aggregate value (as of
               the Valuation Date coincident  with or immediately  preceding the
               applicable  record date) of the Units in the Employer  Stock Fund
               of all persons  directing  that a negative vote be cast,  and the
               denominator of which is the aggregate  value (as of the Valuation
               Date  coincident  with or  immediately  preceding the  applicable
               record  date) of the  Units  in the  Employer  Stock  Fund of all
               persons directing that an affirmative or negative vote be cast.

          The Committee shall furnish, or cause to be furnished,  to each person
          with Units in the  Employer  Stock  Fund,  all annual  reports,  proxy
          materials and other  information  known to have been  furnished by the
          issuer of the  shares or by any proxy  solicitor,  to the  holders  of
          shares.

5.5  Tender Offers and Other Offers

     Each Participant with Units in the Employer Stock Fund shall have the right
     to  participate  confidentially  in the response to a tender offer,  or any
     other  offer,  made  to the  holders  of  shares  generally,  to  purchase,
     exchange,  redeem or otherwise  transfer shares;  provided that such person
     has Units in the Employer  Stock Fund as of the Valuation  Date  coincident
     with or  immediately  preceding  the  first  day for  delivering  shares or
     otherwise  responding  to such tender or other  offer.  Such  participation

                                       35
<PAGE>

     shall be achieved by completing and filing with the inspector of elections,
     or such other  person who shall be  independent  of the issuer of shares as
     the Committee shall designate, at least ten (10) days prior to the last day
     for  delivering  shares or  otherwise  responding  to such  tender or other
     offer,  a  written  direction  in the form  and  manner  prescribed  by the
     Committee.  The inspector of elections,  or other such person designated by
     the  Committee   shall  tabulate  the   directions   given  on  a  strictly
     confidential  basis,  and shall provide the  Committee  with only the final
     results of the  tabulation.  The final results of the  tabulation  shall be
     followed by the Committee in the direction as to the number of shares to be
     delivered. On the last day for delivering shares or otherwise responding to
     such tender or other offer, a number of shares equal to the product of:

     (a)  the total number of shares held in the Employer Stock Fund; and

     (b)  a fraction,  the numerator of which is the aggregate  value (as of the
          Valuation Date coincident with or immediately  preceding the first day
          for delivering shares or otherwise  responding to such tender or other
          offer)  of the  Units  in  the  Employer  Stock  Fund  of all  persons
          directing that shares be delivered in response to such tender or other
          offer,  and the denominator of which is the aggregate value (as of the
          Valuation Date coincident with or immediately  preceding the first day
          for delivering shares or otherwise  responding to such tender or other
          offer)  of the  Units  in  the  Employer  Stock  Fund  of all  persons
          directing  that shares be  delivered or that the delivery of shares be
          withheld;

     shall be delivered  in response to such tender or other offer.  Delivery of
     the  remaining  shares  then  held in the  Employer  Stock  Fund  shall  be
     withheld.  The Committee shall furnish,  or cause to be furnished,  to each
     person whose Account is invested in whole or in part in the Employer  Stock
     Fund, all information  concerning such tender offer furnished by the issuer
     of shares,  or  information  furnished by or on behalf of the person making
     the tender or such other offer.

5.6  Dissenters' Rights

     Each Participant with Units in the Employer Stock Fund shall have the right
     to participate confidentially in the decision as to whether to exercise the
     Dissenters' rights  appurtenant to shares held in such Investment  Account,
     provided  that such person had Units in such  Account as of the most recent
     Valuation Date coincident with or preceding the applicable  record date for
     which  records  are  available.  Such  participation  shall be  achieved by
     completing and filing with the inspector of elections, or such other person
     who shall be  independent  of the issuer of shares as the  Committee  shall
     designate,  at least  ten (10)  days  prior to the date of the  meeting  of
     holders of shares at which such  dissenters'  rights will be  exercised,  a
     written direction in the form and manner  prescribed by the Committee.  The
     inspector of  elections,  or other such person  designated by the Committee
     shall tabulate the directions given on a strictly  confidential  basis, and
     shall provide the Committee with only the final results of the  tabulation.
     The final results of the  tabulation  shall be followed by the Committee in
     the directions as to the manner in which such  dissenters'  rights shall be

                                       36
<PAGE>

     exercised. As to each matter in which the holders of shares are entitled to
     exercise  dissenters'  rights,  the number of shares for which  dissenters'
     rights will be exercised shall be equal to the product of the:

     (a)  the total number of shares held in the  Employer  Stock Fund as of the
          applicable record date; and

     (b)  a fraction,  the numerator of which is the aggregate  value (as of the
          Valuation Date coincident with or immediately preceding the applicable
          record  date) of the Units in the  Employer  Stock Fund of all persons
          directing that the dissenters'  rights  appurtenant to which shares be
          exercised,  and the denominator of which is the aggregate value (as of
          the  Valuation  Date  coincident  with or  immediately  preceding  the
          applicable  record  date) of all of the  Units in the  Employer  Stock
          Fund.

     Dissenters'  rights  shall not be exercised  with respect to the  remaining
     shares held in the Employer Stock Fund.

5.7  Separate Assets

     Subject to the terms and  conditions  of the Agreement and upon approval by
     the Trustees, a designated portion of the assets of the Plan may be held as
     Separate  Assets  under  the  Separate  Agreement  pursuant  to  investment
     elections made by Plan  Participants  from time to time. The Trustees shall
     have no  responsibility  or liability  with respect to the  management  and
     control of any  Separate  Assets  and shall have only those  administrative
     duties with  respect to such  Separate  Assets as are set forth in the Plan
     and the Agreement.

5.8  Power to Invest in Employer Securities

     The  Committee  may  direct  the  Separate  Agency to  acquire  or hold any
     security  issued by the  Employer  or any  Affiliated  Employer  which is a
     "qualifying  employer  security" as such term is defined under ERISA and to
     invest that portion of the assets of the Plan Funds in such securities.

                                       37
<PAGE>

                                  Article VI --
             Investment Directions, Changes of Investment Directions
                    and Transfers Between Investment Accounts

6.1  Investment Directions

     Upon  electing  to  participate,  each  Participant  shall  direct that the
     contributions  made to his Accounts  shall be applied to purchase  Units in
     any one or more of the Investment Accounts of the Trust Fund and commencing
     on the Conversion  Date,  purchase  Units in the Employer Stock Fund.  Such
     direction shall indicate the percentage,  in multiples of one percent (1%),
     in  which  Before-Tax   Contributions,   Matching  Contributions,   Special
     Contributions  and Rollover  Contributions  shall be made to the designated
     Investment Accounts.

     To the extent a  Participant  shall fail to make an  investment  direction,
     contributions  made on his behalf shall be applied to purchase Units in the
     Investment Account which provides for short-term investments.

6.2  Change of Investment Directions

     A Participant may change any investment  direction not more often than once
     in  any  calendar  quarter,  in  the  form  and  manner  prescribed  by the
     Committee,  either: (a) by completing and filing a notice at least ten (10)
     days prior to the effective date of such direction,  or (b) by telephone or
     other  electronic  medium.  Participants in the Plan on the Conversion Date
     shall  be  permitted  to  make  one (1)  additional  change  in  investment
     direction in order to invest in the  Employer  Stock Fund within sixty (60)
     days of such date and such  additional  election shall not count as one (1)
     of the changes in investment  direction that are otherwise  permitted to be
     made in any Plan Year.  Commencing  July 7, 2000, a Participant  may change
     any investment  direction at any time, in the form and manner prescribed by
     the Committee,  either:  (i) by completing and filing a notice at least ten
     (10)  days  prior  to the  effective  date  of such  direction,  or (ii) by
     telephone or other electronic  medium.  Any such change shall be subject to
     the same conditions as if it were an initial direction and shall be applied
     only to any  contributions to be invested on or after the effective date of
     such direction.

6.3  Transfers Between Investment Accounts

     A Participant or Beneficiary  may, not more often than once in any calendar
     quarter,  redirect the  investment of his  Investment  Accounts such that a
     percentage of any one or more Investment Accounts may be transferred to any
     one or more other Investment  Accounts in the form and manner prescribed by
     the Committee,  either: (a) by filing a notice at least ten (10) days prior
     to the  effective  date of such  change,  or,  (b) by  telephone  or  other
     electronic medium. Participants in the Plan on the Conversion Date shall be

                                       38
<PAGE>

     permitted  to make one (1)  additional  transfer  in order to invest in the
     Employer Stock Fund within sixty (60) days of such date and such additional
     transfer  shall not count as one (1) of the  transfers  that are  otherwise
     permitted  to be  made  in any  Plan  Year.  Commencing  July  7,  2000,  a
     Participant or Beneficiary may, at any time, redirect the investment of his
     Investment  Accounts such that a percentage  of any one or more  Investment
     Accounts may be transferred to any one or more other Investment Accounts in
     the form and manner  prescribed by the Committee,  either:  (i) by filing a
     notice at least ten (10) days prior to the  effective  date of such change,
     or, (ii) by telephone or other electronic medium.  The requisite  transfers
     shall be valued as of the Valuation Date on which the direction is received
     by the  Trustees  and  shall  be  affected  within  seven  (7)  days of the
     Trustees' receipt of such direction.

6.4  Employees Other than Participants

     (a)  Investment Direction
          --------------------

          An  Employee  who is not a  Participant  but who has  made a  Rollover
          Contribution in accordance with the provisions of Section 3.10,  shall
          direct, in the form and manner prescribed by the Committee,  that such
          contribution be applied to the purchase of Units in any one or more of
          the Investment  Accounts,  and  commencing on the Conversion  Date, to
          purchase  Units in the  Employer  Stock  Fund.  Such  direction  shall
          indicate  the  percentage,  in  multiples  of one percent 1%, in which
          contributions  shall be made to the  designated  Investment  Accounts.
          Commencing  on  the  Conversion   Date,  an  Employee  who  is  not  a
          Participant  shall be permitted to make one (1)  additional  change in
          investment  direction  in order to invest in the  Employer  Stock Fund
          within sixty (60) days of such date and such additional election shall
          not count as one (1) of the changes in investment  direction  that are
          otherwise  permitted  to be made in any Plan  Year.  To the extent any
          Employee  shall fail to make an  investment  direction,  the  Rollover
          Contributions  shall  be  applied  to the  purchase  of  Units  in the
          Investment Account which provides for short-term investments.

     (b)  Transfers Between Investment Accounts
          -------------------------------------

          An Employee who is not a Participant may, subject to the provisions of
          Section  6.3,  not  more  often  than  once in any  calendar  quarter,
          redirect  the  investment  of  his  Investment  Accounts  such  that a
          percentage of any one or more  Investment  Accounts may be transferred
          to any  one or  more  other  Investment  Accounts.  Commencing  on the
          Conversion  Date,  an Employee  who is not a  Participant  in the Plan
          shall be  permitted  to make one (1)  additional  transfer in order to
          invest in the Employer  Stock Fund within sixty (60) days of such date
          and  such  additional  transfer  shall  not  count  as one  (1) of the
          transfers  that are  otherwise  permitted to be made in any Plan Year.
          Commencing  July 7, 2000,  an Employee who is not a  Participant  may,
          subject to the  provisions  of Section 6.3, at any time,  redirect the
          investment  of his  Investment  Accounts such that a percentage of any

                                       39
<PAGE>

          one or more Investment  Accounts may be transferred to any one or more
          other Investment Accounts.  The requisite transfers shall be valued as
          of the  Valuation  Date on which  the  direction  is  received  by the
          Trustees and shall be affected  within seven (7) days of the Trustees'
          receipt of such direction.

6.5  Restrictions  on  Investments  in  the  Employer  Stock  Fund  for  Certain
     Participants

     Notwithstanding  anything  in the  Plan to the  contrary,  any  Participant
     subject to the provisions of Section 16(b) of the  Securities  Exchange Act
     of 1934,  as amended,  may be subject to Section  16(b)  liability  if such
     Participant has an intra-plan  transfer,  in accordance with the provisions
     of Section 6.3 and/or Section 6.4, involving the Employer Stock Fund within
     six (6) months of the next  preceding  transfer into or out of the Employer
     Stock Fund.  In addition,  any  Participant  subject to the  provisions  of
     Section  16(b) of the  Securities  Exchange  Act of 1934,  as amended,  who
     elects to receive a cash  distribution from his Employer Stock Fund account
     under the Plan,  including  redemption  of such stock for  purposes of cash
     withdrawals under Section 7.2 and/or Section 7.3 and/or loans under Article
     VIII,  may  similarly be subject to Section  16(b)  liability for any short
     swing profits within six (6) months of the next preceding  transfer into or
     out of the Employer Stock Fund.

     However,  unless  otherwise  required  by  rules  and  regulations  of  the
     Securities and Exchange Commission, Section 16(b) liability will not result
     from  distributions   made  in  connection  with  a  Participant's   death,
     Disability, termination of employment or retirement; pursuant to a domestic
     relations  order described under Section 414(p) of the Code; as a result of
     the minimum distribution  requirements described under Section 401(a)(9) of
     the  Code;  or as a result  of the  limitations  described  under  Sections
     401(k), 401(m), 402(g) and 415 of the Code.

                                       40
<PAGE>

                                 Article VII --
                               Payment of Benefits

7.1  General

     (a)  The  vested  interest  in the  Net  Value  of any  one or  more of the
          Accounts of a Participant, Beneficiary or any other person entitled to
          benefits  under  the Plan  shall  be paid  only at the  times,  to the
          extent,  in the manner,  and to the persons  provided in this  Article
          VII.

     (b)  Notwithstanding the foregoing, if payments are to be made on a monthly
          basis  and if  payments  are  fifty  dollars  ($50.00)  or  less,  the
          Committee, in its sole discretion, may determine to make such payments
          in a lump sum or in quarterly, semi-annual, or annual installments.

     (c)  The Net  Value  of any one or more of the  Accounts  of a  Participant
          shall be subject to the provisions of Section 8.7.

     (d)  Notwithstanding  any  provisions of the Plan to the contrary,  any and
          all  withdrawals,  distributions or payments made under the provisions
          of this Article VII shall be made in accordance with Section 401(a)(9)
          of the  Code  and any  and  all  Income  Tax  Regulations  promulgated
          thereunder.

          With respect to  distributions  under the Plan made in calendar  years
          beginning on or after January 1, 2001, the Plan will apply the minimum
          distribution   requirements  of  Section  401(a)(9)  of  the  Code  in
          accordance  with the  regulations  under Section  401(a)(9)  that were
          proposed in January 2001, notwithstanding any provision of the Plan to
          the contrary. This amendment shall continue in effect until the end of
          the last calendar year  beginning  before the effective  date of final
          regulations  under Section  401(a)(9) or such other date  specified in
          guidance published by the Internal Revenue Service.

     (e)  Distributions  from the  Employer  Stock Fund under this  Article VII,
          shall be made in accordance with Section 7.10 hereunder.

7.2  Non-Hardship Withdrawals

     (a)  Subject to the terms and  conditions  contained  in this  Section 7.2,
          upon  ten  (10)  days  prior  written  notice  to the  Committee  each
          Participant  who has attained  age  fifty-nine  and one-half  (59-1/2)
          shall be  entitled to  withdraw  not more often than twice  during any
          Plan  Year  all or any  portion  of the Net  Value  of his  Before-Tax
          Contribution Account. Commencing January 1, 1999, subject to the terms
          and conditions contained in this Section 7.2, upon ten (10) days prior
          written notice to the Committee each Participant, or each Employee who
          solely maintains a Rollover Contribution Account, who has attained age
          fifty-nine and one-half (59-1/2),  shall be entitled to withdraw,  not

                                       41
<PAGE>

          more often than twice  during any Plan Year all or any  portion of his
          Accounts in the following order or priority:

          (i)  the Net Value of his Before-Tax Contribution Account;

          (ii) the Net Value of the Employee's  Rollover  Contribution  Account,
               provided that such  Participant  or Employee shall have satisfied
               such additional  terms and  conditions,  if any, as the Committee
               may deem necessary; and

          (iii)the vested  interest  in the Net Value of his  Matching  Employer
               Contribution Account.

     (b)  Withdrawals  under  this  Section  7.2 shall be made in the  following
          order of priority:

          (i)  by the  redemption  of Units  from the  Participant's  Before-Tax
               Contribution  Account,  and commencing January 1, 1999,  Rollover
               Contribution  Account and  Matching  Contribution  Account in the
               Trust  Fund,  on a pro rata  basis from the  Investment  Accounts
               thereunder,  as were  selected  by the  Participant  pursuant  to
               Article VI; and

          (ii) by the  redemption of Units  invested in the Employer  Stock Fund
               from  the  Participant's  Before-Tax  Contribution  Account,  and
               commencing  January 1, 1999,  Rollover  Contribution  Account and
               Matching   Contribution   Account  invested  under  the  Separate
               Agreement, if selected by the Participant pursuant to Article VI.

     (c)  Any  withdrawals  under  this  Section  7.2  shall be  subject  to the
          restrictions of Section 6.5.

7.3  Hardship Distributions

     (a)  For purposes of this Section 7.3, a "Hardship" distribution shall mean
          a  distribution  that is (i) made on account of a condition  which has
          given rise to immediate and heavy  financial need of a Participant and
          (ii) necessary to satisfy such financial need. A determination  of the
          existence  of an  immediate  and heavy  financial  need and the amount
          necessary  to  meet  the  need  shall  be  made  by the  Committee  in
          accordance  with uniform  nondiscriminatory  standards with respect to
          similarly situated persons.

     (b)  Immediate and Heavy Financial Need:

          A  Hardship  distribution  shall be deemed to be made on account of an
          immediate and heavy  financial need if the  distribution is on account
          of:

          (i)  expenses for medical care  described  under Section 213(d) of the
               Code which  were  previously  incurred  by the  Participant,  the

                                       42
<PAGE>

               Participant's  Spouse or any of the  Participant's  dependents as
               defined  under  Section  152 of the Code or  expenses  which  are
               necessary to obtain medical care  described  under Section 213(d)
               of the Code for the Participant,  the Participant's Spouse or any
               of the  Participant's  dependents as defined under Section 152 of
               the Code; or

          (ii) purchase  (excluding  mortgage payments) of a principal residence
               of the Participant; or

          (iii)payment  of tuition  and  related  educational  fees for the next
               twelve  (12)   months  of   post-secondary   education   for  the
               Participant,  the  Participant's  Spouse,  children or any of the
               Participant's  dependents  as defined  under  Section  152 of the
               Code; or

          (iv) the need to prevent  the  eviction  of the  Participant  from his
               principal  residence  or  foreclosure  on  the  mortgage  of  the
               Participant's principal residence; or

          (v)  any other condition which the  Commissioner of Internal  Revenue,
               through the  publication  of revenue  rulings,  notices and other
               documents of general applicability,  deems to be an immediate and
               heavy financial need.

     (c)  Necessary to Satisfy Such Financial Need:

          (i)  A  distribution  will be  treated  as  necessary  to  satisfy  an
               immediate and heavy  financial need of a Participant  if: (A) the
               amount of the  distribution  is not in  excess of (1) the  amount
               required to relieve the financial need of the Participant and (2)
               if elected by the  Participant,  an amount  necessary  to pay any
               federal,  state or local  income taxes and  penalties  reasonably
               anticipated to result from such  distribution,  and (B) such need
               may not be satisfied  from other  resources  that are  reasonably
               available to the Participant.

          (ii) A  distribution  will  be  treated  as  necessary  to  satisfy  a
               financial  need  if the  Committee  reasonably  relies  upon  the
               Participant's representation that the need cannot be relieved:

               (A)  through   reimbursement  or  compensation  by  insurance  or
                    otherwise,

               (B)  by reasonable  liquidation of the  Participant's  assets, to
                    the  extent  such  liquidation  would  not  itself  cause an
                    immediate and heavy financial need,

               (C)  by  cessation  of  Before-Tax   Contributions   or  Employee
                    contributions, if any, under the Plan, or

                                       43
<PAGE>

               (D)  by  other  distributions  or  nontaxable  loans  from  plans
                    maintained by the Employer or by any other  employer,  or by
                    borrowing from commercial  sources on reasonable  commercial
                    terms.

               For  purposes  of  this  subsection  (c)(ii),  the  Participant's
               resources  shall be deemed to include  those assets of his Spouse
               and  minor  children  that  are   reasonably   available  to  the
               Participant.

          (iii)Alternatively,  a  Hardship  distribution  will be  deemed  to be
               necessary to satisfy an immediate and heavy  financial  need of a
               Participant if (A) or (B) are met:

               (A)  all of the following requirements are satisfied:

                    (I)  the  distribution is not in excess of (1) the amount of
                         the   immediate  and  heavy   financial   need  of  the
                         Participant and (2) if elected by the  Participant,  an
                         amount  necessary  to pay any  federal,  state or local
                         income taxes or  penalties  reasonably  anticipated  to
                         result from such distribution;

                    (II) the Participant has obtained all  distributions,  other
                         than Hardship  distributions,  and all nontaxable loans
                         currently  available under all plans  maintained by the
                         Employer;

                    (III)the  Plan,  and  all  other  plans  maintained  by  the
                         Employer,   provide  that  the  Participant's  elective
                         contributions and Employee contributions,  if any, will
                         be  suspended  for at least  twelve (12)  months  after
                         receipt of the Hardship distribution; and

                    (IV) the  Plan,  and  all  other  plans  maintained  by  the
                         Employer,  provide  that the  Participant  may not make
                         elective  contributions for the  Participant's  taxable
                         year  immediately  following  the  taxable  year of the
                         Hardship distribution in excess of the applicable limit
                         under Section  402(g) of the Code for such next taxable
                         year  less the  amount of such  Participant's  elective
                         contributions  for the  taxable  year  of the  Hardship
                         distribution; or

               (B)  the  requirements set forth in additional  methods,  if any,
                    prescribed by the  Commissioner of Internal Revenue (through
                    the  publication  of  revenue  rulings,  notices  and  other
                    documents of general applicability) are satisfied.

     (d)  A Participant who has withdrawn the maximum amounts  available to such
          Participant under Section 7.2 or a Participant who is not eligible for

                                       44
<PAGE>

          a withdrawal  thereunder,  may, in case of Hardship (as defined  under
          this Section 7.3), apply not more often than twice in any Plan Year to
          the  Committee  for a Hardship  distribution.  Any  application  for a
          Hardship  distribution  shall be made in writing to the  Committee  at
          least ten (10) days prior to the requested  date of payment.  Hardship
          distributions  may be made by a distribution  of all or a portion of a
          Participant's   (i)   Before-Tax   Contributions,   (ii)  earnings  on
          Before-Tax  Contributions  which  accrued prior to January 1, 1989 and
          (iii) vested  interest in the Net Value of his  Matching  Contribution
          Account.  Commencing  January 1, 1999,  Hardship  distributions may be
          made by a  distribution  of all or a portion  of a  Participant's  (i)
          Before-Tax  Contributions,  (ii) earnings on Before-Tax  Contributions
          which  accrued  prior to  January  1,  1989,  (iii)  Net  Value of his
          Rollover  Contribution  Account,  and (iv) vested  interest in the Net
          Value of his Matching Contribution Account.

     (e)  Distributions  under this  Section 7.3 shall be made in the  following
          order of priority:

          (i)  Participant's Before-Tax Contributions and earnings on Before-Tax
               Contributions which accrued prior to January 1, 1989; and

          (ii) Commencing  January 1, 1999, the vested interest in the Net Value
               of the Participant's Rollover Contribution Account; and

          (iii)the  vested  interest  in the  Net  Value  of  the  Participant's
               Matching Contribution Account.

(f)  Distributions  under this Section 7.3 shall be made in the following  order
     of priority:

          (i)  by the  redemption  of Units from that portion of the  applicable
               Participant's  Accounts  which are  specified in Section  7.3(d),
               above,  in the order set forth in Section  7.3(e),  on a pro rata
               basis from among the Investment Accounts,  thereunder, other than
               the Employer Stock Fund, selected by the Participant  pursuant to
               Article VI; and

          (ii) by the  redemption of Units  invested in the Employer  Stock Fund
               from that portion of the applicable  Participant's Accounts which
               are  specified  in  Section  7.3(d),  above,  invested  under the
               Separate Agreement,  in the order set forth in Section 7.3(e), as
               selected by the Participant pursuant to Article VI.

(g)  A Participant who receives a Hardship  distribution  under this Section 7.3
     may have his Before-Tax  Contributions suspended in accordance with Section
     3.3.

(h)  Any withdrawals under this Section 7.3 shall be subject to the restrictions
     of Section 6.5.

                                       45
<PAGE>

7.4  Distribution of Benefits Following Retirement Or Termination of Service

     (a)  If an Employee  incurs a  Termination  of Service for any reason other
          than death, a distribution  of the vested interest in the Net Value of
          his  Accounts  shall be made to the  Employee in  accordance  with the
          provisions  of  Section  7.5  or  7.6  or  7.8.  The  amount  of  such
          distribution  shall be the  vested  interest  in the Net  Value of his
          Accounts as of the Valuation Date  coincident with the date of receipt
          by the Trustees of the proper documentation acceptable to the Trustees
          for such purpose.

     (b)  An election  by an Employee to receive the vested  interest in the Net
          Value of his  Accounts  in a form  other  than in the  normal  form of
          benefit  payment  set forth in  Sections  7.5(b)  and (c) and  Section
          7.6(b) may not be revoked  or amended by him after he  terminates  his
          employment.  Notwithstanding the foregoing, an Employee who elected to
          receive payment of benefits as of a deferred  Valuation Date or in the
          form  of  installments,   may,  by  completing  and  filing  the  form
          prescribed  by the  Committee,  change  to  another  form  of  benefit
          payment.

     (c)  An Employee who incurs a  Termination  of Service and is reemployed by
          the Employer  prior to the  distribution  of all or part of the entire
          vested  interest in the Net Value of his Accounts in  accordance  with
          the provisions of Section 7.5 or 7.6, shall not be eligible to receive
          or to  continue  to  receive  such  distribution  during his period of
          reemployment  with  the  Employer.  Upon  such  Employee's  subsequent
          Termination  of Service,  his prior election to receive a distribution
          in a form other than the normal form of benefit  payment shall be null
          and void and the  vested  interest  in the Net  Value of his  Accounts
          shall be  distributed  to him in  accordance  with the  provisions  of
          Section 7.5 or 7.6 or 7.8.

     (d)  An Employee's  vested interest in the Net Value of his Accounts in the
          Employer  Stock  Fund  shall be  distributed  to the  Participant,  in
          accordance  with  the  provisions  of  Sections  7.5 and  7.6,  by the
          Separate  Agency as soon as  administratively  possible  following the
          date the  Employer is informed  by the  Trustees of the  Participant's
          vested  interest in such  Accounts  in the  Employer  Stock Fund.  The
          distribution  shall be made in  accordance  with  Section 7.10 and the
          terms and provisions of the Separate Agreement.

7.5      Payments upon Retirement or Disability

     (a)  If an Employee incurs a Termination of Service as of a Retirement Date
          or if an Employee  incurs a  Termination  of Service due to Disability
          and the Net  Value  of his  Accounts  is less  than or  equal to three
          thousand five hundred dollars ($3,500) (and effective January 1, 1998,
          five thousand  dollars  ($5,000)),  a lump sum distribution of the Net
          Value of his Accounts  shall be made to the Employee  within seven (7)
          days of the Valuation Date  coincident with the date of receipt by the
          Trustees  of the proper  documentation  indicating  that the  Employee
          incurred a Termination of Service as of such  Retirement  Date or date
          of Disability.

                                       46
<PAGE>

     (b)  If an  Employee  incurs a  Termination  of  Service  as of his  Normal
          Retirement Date or his Postponed  Retirement Date and the Net Value of
          his Accounts exceeds three thousand five hundred dollars ($3,500) (and
          effective January 1, 1998, five thousand dollars ($5,000)), a lump sum
          distribution  of the vested  interest in the Net Value of his Accounts
          shall be made to the Employee  within seven (7) days of the  Valuation
          Date coincident  with the later of (i) the date the Employee  attained
          Normal  Retirement Date or Postponed  Retirement Date or (ii) the date
          of receipt by the Trustees of the proper documentation indicating such
          Retirement Date.

     (c)  If an  Employee  incurs  a  Termination  of  Service  as of his  Early
          Retirement  Date or if an Employee incurs a Termination of Service due
          to Disability,  has not elected to receive his benefit  pursuant to an
          optional form of benefit  payment in accordance with the provisions of
          subsection  (d), (e) or (f) and the Net Value of his Accounts  exceeds
          three thousand five hundred dollars ($3,500) (and effective January 1,
          1998, five thousand dollars ($5,000)),  a lump sum distribution of the
          vested  interest in the Net Value of his Accounts shall be made to the
          Employee  within seven (7) days of the Valuation Date  coincident with
          the later of (i) the date the Employee  would have attained his Normal
          Retirement Date if he were still employed by the Employer, or (ii) the
          date of receipt by the Trustees of the proper documentation indicating
          such Retirement Date or date of Disability.

     (d)  In lieu of the normal form of benefit  payment set forth in subsection
          (b) or (c), an Employee who incurs a Termination  of Service as of his
          Retirement  Date or incurs a Termination  of Service due to Disability
          may file an election  form to receive  the vested  interest in the Net
          Value of his  Accounts  as a lump sum  distribution  as of some  other
          Valuation Date  following his  Termination of Service and prior to his
          Normal Retirement Date; provided, however, that the Valuation Date may
          not be later than thirteen (13) months  following his  Termination  of
          Service.   Commencing  October  19,  1998,  the  thirteen  (13)  month
          limitation  on lump sum  distributions,  hereunder,  shall  no  longer
          apply.  The vested  interest in the Net Value of his Accounts shall be
          distributed to such Employee as a lump sum  distribution  within seven
          (7) days of the Valuation Date  coincident with the date of receipt by
          the Trustees of the proper  documentation  indicating  the  Employee's
          distribution date.

     (e)  In lieu of the normal form of benefit payment set forth in subsections
          (b) and (c), an Employee who incurs a Termination of Service as of his
          Retirement  Date or incurs a Termination  of Service due to Disability
          may,  subject  to the  required  minimum  distribution  provisions  of
          Sections  7.9(b) and  7.9(c),  file an  election  form to receive  the
          vested  interest  in the Net  Value  of his  Accounts  in the  form of
          installments over a period not to exceed twenty (20) years. The vested
          interest in the Net Value of his Accounts  shall be  determined  as of
          such Valuation  Date or Valuation  Dates in each such Plan Year as may
          be  elected  by such  Employee  and  shall be based on the  respective

                                       47
<PAGE>

          values of the Employee's  Units in each Investment  Account as of such
          Valuation  Date or  Valuation  Dates.  The  amount of the  installment
          payment  shall be  distributed  by the  redemption  of Units  from the
          Employee's  Accounts  on  a  pro  rata  basis  among  such  Employee's
          Investment  Accounts.  Any  portion of the vested  interest in the Net
          Value of the  Accounts  of such former  Employee  which shall not have
          been so paid  shall  continue  to be held for his  benefit  or for the
          benefit of his Beneficiary in the Employee's  Investment Accounts.  If
          an Employee elects to receive his benefit  pursuant to this subsection
          (e), the installment  period may not extend beyond the life expectancy
          of such  Employee  or the life  expectancy  of such  Employee  and his
          Beneficiary.

     (f)  In lieu of the normal form of benefit payment set forth in subsections
          (b) and (c), an Employee who incurs a Termination of Service as of his
          Retirement  Date or incurs a Termination  of Service due to Disability
          may,  at least ten (10) days prior to the date on which his benefit is
          scheduled  to  be  paid,  file  an  election  form  that  a  lump  sum
          distribution  equal to the  vested  interest  in the Net  Value of his
          Accounts be paid in a Direct  Rollover  pursuant to Section  7.8.  The
          amount of such lump sum  distribution  shall be  determined  as of the
          Valuation Date  coincident with the date of receipt by the Trustees of
          the proper documentation.

7.6  Payments upon  Termination of Service for Reasons Other Than  Retirement or
     Disability

     (a)  If an Employee incurs a Termination of Service as of a date other than
          a  Retirement  Date or for  reasons  other  than  Disability,  has not
          elected to receive his benefit pursuant to an optional form of benefit
          payment in accordance with the provisions of subsection (c) or (d) and
          the vested  interest  in the Net Value of the  Employee's  Accounts is
          equal to or less than three  thousand  five hundred  dollars  ($3,500)
          (and effective  January 1, 1998, five thousand  dollars  ($5,000)),  a
          lump sum  distribution  of the vested interest in the Net Value of his
          Accounts  shall be made to the  Employee  within seven (7) days of the
          Valuation Date  coincident with the date of receipt by the Trustees of
          the proper documentation  indicating that he incurred a Termination of
          Service.

     (b)  If an Employee incurs a Termination of Service as of a date other than
          a  Retirement  Date or for  reasons  other  than  Disability,  has not
          elected to receive his benefit pursuant to an optional form of benefit
          payment in accordance with the provisions of subsection (c) or (d) and
          the  vested  interest  in the Net  Value  of the  Employee's  Accounts
          exceeds three  thousand five hundred  dollars  ($3,500) (and effective
          January  1,  1998,  five  thousand  dollars  ($5,000)),   a  lump  sum
          distribution  of the vested  interest in the Net Value of his Accounts
          shall be made to the Employee  within seven (7) days of the  Valuation
          Date coincident with the later of (i) the date the Employee would have
          attained his Normal  Retirement  Date if he were still employed by the
          Employer  or (ii) the date of  receipt by the  Trustees  of the proper
          documentation   indicating   the   Employee's   attainment  of  Normal
          Retirement Date.

                                       48
<PAGE>

     (c)  In lieu of the normal form of benefit  payment set forth in subsection
          (b),  an  Employee  who incurs a  Termination  of Service as of a date
          other than a Retirement Date or for reasons other than Disability, may
          file an election form to receive the vested  interest in the Net Value
          of his Accounts as an immediate lump sum distribution as of some other
          Valuation Date  following his  Termination of Service and prior to the
          date he would have  attained his Normal  Retirement  Date.  The vested
          interest in the Net Value of his Accounts shall be distributed to such
          Employee as a lump sum  distribution  as of some other  Valuation Date
          following   the  date  of  receipt  by  the  Trustees  of  the  proper
          documentation indicating the Employee's distribution date.

     (d)  In lieu of the normal form of benefit  payment set forth in subsection
          (b),  an  Employee  who incurs a  Termination  of Service as of a date
          other than his  Retirement  Date or for reasons other than  Disability
          may,  at least ten (10) days prior to the date on which his benefit is
          scheduled  to  be  paid,  file  an  election  form  that  a  lump  sum
          distribution  equal to the  vested  interest  in the Net  Value of his
          Accounts be paid in a Direct  Rollover  pursuant to Section  7.8.  The
          amount of such lump sum  distribution  shall be  determined  as of the
          Valuation Date  coincident with the date of receipt by the Trustees of
          the proper documentation.

7.7  Payments Upon Death

     (a)  In  the  case  of a  married  Participant,  the  Spouse  shall  be the
          designated   Beneficiary.    Notwithstanding   the   foregoing,   such
          Participant  may  effectively  elect to  designate a person or persons
          other than the Spouse as  Beneficiary.  Such an election  shall not be
          effective unless (i) such Participant's Spouse irrevocably consents to
          such election in writing,  (ii) such election designates a Beneficiary
          which may not be changed without spousal consent or the consent of the
          Spouse expressly  permits  designation by the Participant  without any
          requirement  of further  consent  by the  Spouse,  (iii) the  Spouse's
          consent acknowledges  understanding of the effect of such election and
          (iv) the consent is witnessed by a Plan representative or acknowledged
          before a notary public.  Notwithstanding this consent requirement,  if
          the   Participant   establishes  to  the   satisfaction  of  the  Plan
          representative  that such written  consent cannot be obtained  because
          there is no  Spouse  or the  Spouse  cannot be  located,  the  consent
          hereunder  shall not be  required.  Any consent  necessary  under this
          provision shall be valid only with respect to the Spouse who signs the
          consent.

     (b)  In the case of a single  Participant,  Beneficiary  means a person  or
          persons who have been designated under the Plan by such Participant or
          who are otherwise entitled to a benefit under the Plan.

     (c)  The  designation  of a Beneficiary  who is other than a  Participant's
          Spouse and the designation of any contingent Beneficiary shall be made
          in writing by the Participant in the form and manner prescribed by the

                                       49
<PAGE>

          Committee  and shall not be effective  unless filed prior to the death
          of such person. If more than one person is designated as a Beneficiary
          or a  contingent  Beneficiary,  each  designated  Beneficiary  in such
          Beneficiary  classification  shall  have an  equal  share  unless  the
          Participant  directs  otherwise.  For  purposes of this  Section  7.7,
          "person"  includes an  individual,  a trust,  an estate,  or any other
          person or entity designated as a Beneficiary.

     (d)  A married  Participant  who has  designated a person or persons  other
          than the  Spouse as  Beneficiary  may,  without  the  consent  of such
          Spouse,  revoke such prior election by submitting written notification
          of such revocation.  Such revocation shall result in the reinstatement
          of the Spouse as the  designated  Beneficiary  unless the  Participant
          effectively  designates  another  person as  Beneficiary in accordance
          with the  provisions of subsection  (a). The number of election  forms
          and revocations shall not be limited.

     (e)  Upon the death of a Participant  the remaining  vested interest in the
          Net Value of his Accounts shall become payable, in accordance with the
          provisions  of  subsection  (g),  to  his  Beneficiary  or  contingent
          Beneficiary.  If there is no such  Beneficiary,  the remaining  vested
          interest  in the Net Value of his  Accounts  shall be  payable  to the
          executor or  administrator  of his estate,  or, if no such executor or
          administrator  is  appointed  and  qualifies  within a time  which the
          Committee  shall,  in its sole  and  absolute  discretion,  deem to be
          reasonable,  then to such  one or more of the  descendants  and  blood
          relatives of such deceased  Participant as the Committee,  in its sole
          and absolute discretion, may select.

     (f)  If a designated  Beneficiary  entitled to payments hereunder shall die
          after  the death of the  Participant  but  before  the  entire  vested
          interest  in the Net Value of Accounts  of such  Participant  has been
          distributed,  then the remaining  vested  interest in the Net Value of
          Accounts of such  Participant  shall be paid, in  accordance  with the
          provisions of subsection (g), to the surviving  Beneficiary who is not
          a  contingent  Beneficiary,   or,  if  there  are  no  such  surviving
          Beneficiaries then living, to the designated contingent  Beneficiaries
          as shall be living at the time such payment is to be made. If there is
          no  designated  contingent  Beneficiary  then  living,  the  remaining
          interest  in the  Net  Value  of his  Accounts  shall  be  paid to the
          executor  or  administrator  of the  estate  of the last to die of the
          Beneficiaries who are not contingent Beneficiaries.

     (g)  If a  Participant  dies before his entire  vested  interest in the Net
          Value of his Accounts has been  distributed  to him, the  remainder of
          such  vested  interest  shall  be  paid  to  his  Beneficiary  or,  if
          applicable, his contingent Beneficiary,  in a lump sum distribution as
          soon as  practicable  following the date of the  Participant's  death.
          Notwithstanding the foregoing, if, prior to the Participant's death:

          (i)  the  Participant  had  elected  to  receive a  deferred  lump sum
               distribution  and had not yet received  such  distribution,  such

                                       50
<PAGE>

               Beneficiary  shall  receive  a lump  sum  distribution  as of the
               earlier of: (A) the Valuation Date set forth in the Participant's
               election or (B) the last  Valuation  Date which occurs within one
               (1) year of the Participant's death; or

          (ii) the  Participant had elected to receive and had begun receiving a
               distribution in the form of installments,  such Beneficiary shall
               receive  distributions over the remaining  installment period, at
               the times set forth in such election.

          If the  Beneficiary  is the  Participant's  Spouse and if benefits are
          payable to such  Beneficiary  as an  immediate  or  deferred  lump sum
          distribution, such Spouse may defer the distribution up to the date on
          which the  Participant  would have  attained  age seventy and one-half
          (70-1/2).  If such Spouse dies prior to such  distribution,  the prior
          sentence shall be applied as if the Spouse were the Participant.

     (h)  Notwithstanding  anything in the Plan to the contrary,  the provisions
          of subsections (a) through (g) shall also apply to a person who is not
          a  Participant  but who has made a  contribution  to and  maintains  a
          Rollover Contribution Account under the Plan.

7.8  Direct Rollover of Eligible Rollover Distributions

     For purposes of this Section 7.8, the following definitions shall apply:

     (a)  "Direct  Rollover"  means  a  payment  by the  Plan  to  the  Eligible
          Retirement Plan specified by the Distributee.

     (b)  "Distributee" means an Employee or former Employee.  In addition,  the
          Employee's or former Employee's surviving spouse and the Employee's or
          former  Employee's  Spouse or former spouse who is the alternate payee
          under a  qualified  domestic  relations  order,  as defined in Section
          414(p) of the Code,  are  Distributees  with regard to the interest of
          the Spouse or former spouse.

     (c)  "Eligible  Retirement  Plan" means an  individual  retirement  account
          described  in Section  408(a) of the Code,  an  individual  retirement
          annuity  described  in Section  408(b) of the Code,  an  annuity  plan
          described  in  Section  403(a)  of  the  Code,  or a  qualified  trust
          described   in  Section   401(a)  of  the  Code,   that   accepts  the
          Distributee's Eligible Rollover Distribution.  However, in the case of
          an Eligible Rollover Distribution to the surviving Spouse, an Eligible
          Retirement  Plan is an  individual  retirement  account or  individual
          retirement annuity.

     (d)  "Eligible Rollover  Distribution" means any distribution of all or any
          portion of the balance to the credit of the  Distributee,  except that
          an Eligible Rollover  Distribution does not include:  any distribution
          that is one of a series of substantially  equal periodic payments (not
          less frequently than annually) made for the life (or life  expectancy)
          of the Distributee or the joint lives (or joint life  expectancies) of

                                       51
<PAGE>

          the Distributee and the Distributee's designated Beneficiary, or for a
          specified  period of ten (10) years or more; any  distribution  to the
          extent such  distribution  is required under Section  401(a)(9) of the
          Code;  and the portion of any  distribution  that is not includible in
          gross  income  (determined  without  regard to the  exclusion  for net
          unrealized  appreciation  with  respect to employer  securities);  and
          effective  January 1, 2000,  any  Hardship  distribution  described in
          Section 401(k)(2)(B)(i)(IV) of the Code.

     Notwithstanding  any  provision  of the  Plan to the  contrary  that  would
     otherwise  limit  a  Distributee's  election  under  this  Section  7.8,  a
     Distributee may elect, at the time and in the manner prescribed by the Plan
     Administrator,  to have any  portion of an Eligible  Rollover  Distribution
     paid directly to an Eligible  Retirement  Plan specified by the Distributee
     in a Direct Rollover.

7.9  Commencement of Benefits

     (a)  Unless the Employee  elects  otherwise in accordance with the Plan, in
          no event  shall  the  payment  of  benefits  commence  later  than the
          sixtieth  (60th)  day  after  the  close of the Plan Year in which the
          latest  of the  following  events  occur:  (i) the  attainment  by the
          Employee of age sixty-five (65), (ii) the tenth (10th)  anniversary of
          the year in which the Participant commenced  participation in the Plan
          or Prior Plan, or (iii) the  termination of the Employee's  employment
          with  the  Employer;  provided,  however,  that if the  amount  of the
          payment  required  to  commence  on the  date  determined  under  this
          sentence cannot be ascertained by such date, a payment  retroactive to
          such date may be made no later than sixty (60) days after the earliest
          date on which the amount of such payment can be ascertained  under the
          Plan.

     (b)  Distributions to five-percent owners:

          The vested interest in the Net Value of the Accounts of a five-percent
          owner (as described in Section 416(i) of the Code and determined  with
          respect  to the Plan Year  ending in the  calendar  year in which such
          individual   attains  age  seventy  and  one-half  (70-1/2))  must  be
          distributed  or commence to be distributed no later than the first day
          of April following the calendar year in which such individual  attains
          age  seventy and  one-half  (70-1/2).  The vested  interest in the Net
          Value of the Accounts of an Employee who is not a  five-percent  owner
          (as described in Section  416(i) of the Code) for the Plan Year ending
          in the  calendar  year in which such  person  attains  age seventy and
          one-half  (70-1/2) but who becomes a five-percent  owner (as described
          in  Section  416(i)  of the  Code)  for a  later  Plan  Year  must  be
          distributed  or commence to be distributed no later than the first day
          of April following the last day of the calendar year that includes the
          last  day of the  first  Plan  Year for  which  such  individual  is a
          five-percent owner (as described in Section 416(i) of the Code).

                                       52
<PAGE>

     (c)  Subject to Section 7.1(d),  distributions  to other than  five-percent
          owners:

          The vested  interest  in the Net Value of the  Accounts of an Employee
          who is not a  five-percent  owner and who  attained  age  seventy  and
          one-half  (70-1/2)  prior to January 1, 1988,  must be  distributed or
          commence  to be  distributed  no  later  than the  first  day of April
          following  the  calendar  year in which  occurs  the later of: (i) his
          termination  of employment  or (ii) his  attainment of age seventy and
          one-half (70-1/2).

          Except as otherwise  provided in the following  paragraph,  the vested
          interest in the Net Value of the  Accounts of any Employee who attains
          age seventy and one-half  (70-1/2)  after  December 31, 1987,  must be
          distributed  or commence to be distributed no later than the first day
          of April following the later of: (A) the 1989 calendar year or (B) the
          calendar  year in  which  such  individual  attains  age  seventy  and
          one-half (70-1/2).

          Effective January 1, 1997, an Employee otherwise required to receive a
          distribution  under  the  preceding  paragraph,  may  elect  to  defer
          distribution  of the Net  Value  of his  Accounts  to the  date of his
          termination of employment.

          Notwithstanding the foregoing, the vested interest in the Net Value of
          the Accounts of (I) any Employee who becomes a Participant on or after
          January 1, 1997 or (II) any  Employee  who  attains  age  seventy  and
          one-half  (70-1/2) in a calendar year beginning on or after January 1,
          1999,  must be distributed or commence to be distributed no later than
          the first day of April following the calendar year in which occurs the
          later of: (1) his  termination  of employment or (2) his attainment of
          age seventy and one-half (70-1/2).

7.10 Manner of Payment of Distributions from the Employer Stock Fund

     Distributions  from the Employer  Stock Fund shall be made to  Participants
     and  Beneficiaries  in cash.  Notwithstanding  the foregoing and except for
     withdrawals  under  Sections 7.2 and 7.3 and loans under Article VIII,  the
     Participant or Beneficiary may elect that such distributions be made wholly
     or partially in shares. If the Participant or Beneficiary  elects that such
     distributions  may be made wholly or partially  in shares,  subject to such
     terms  and  conditions  as may be  established  from  time  to  time by the
     Committee, the maximum number of shares to be distributed shall be equal to
     the  number  of  whole  shares  that  could  be  purchased  on the  date of
     distribution  based on the fair market value of shares determined as of the
     date of payment and on the fair market value of the Participant's  Units in
     the Employer Stock Fund on the valuation  date preceding the  distribution.
     An amount of money equal to any  remaining  amount of the  payment  that is
     less than the fair market  value of a whole share shall be  distributed  in
     cash.  For purposes of this Section 7.10,  the fair market value of a share
     shall be determined on a uniform and nondiscriminatory basis in such manner
     as the Separate Agency may, in its discretion, prescribe.

                                       53
<PAGE>

                                 Article VIII --
                              Loans to Participants

8.1  Definitions and Conditions

     (a)  For purposes of this Article  VIII,  the  following  terms and phrases
          shall have the meanings hereafter ascribed to them:

          (i)  "Borrower"  means a  Participant  or a "Party  in  Interest"  (as
               defined  under  Section 3(14) of ERISA) who maintains an Account,
               provided such Participant or Party in Interest is not receiving a
               benefit  payment in  accordance  with the  provisions  of Section
               7.5(e) or 7.7.

          (ii) "Loan Account" means the separate, individual account established
               on behalf of a Borrower  in  accordance  with the  provisions  of
               Section 8.4(d).

     (b)  To the extent  permitted under the provisions of this Article VIII and
          subject to the terms and conditions  set forth herein,  a Borrower may
          request a loan from his Accounts.  Any loans made in  accordance  with
          this  Article VIII shall not be subject to the  provisions  of Article
          VI.

8.2  Loan Amount

     Upon a finding by the Committee that all  requirements  hereunder have been
     met, a Borrower may request a loan from his Accounts in an amount up to the
     lesser  of:  (a)  fifty  percent  (50%) of the Net Value as of the close of
     business on the date the loan is processed of the  Before-Tax  Contribution
     Account,  vested Matching  Contribution  Account, and Rollover Contribution
     Account,  or (b) fifty thousand dollars  ($50,000),  reduced by the highest
     outstanding  loan balance  during the  preceding  twelve (12)  months.  The
     minimum loan permitted shall be five hundred dollars ($500).

8.3  Term of Loan

     All loans shall be for a fixed term of not more than five (5) years, except
     that a loan which  shall be used to acquire  any  dwelling  which  within a
     reasonable  time is to be used as the principal  residence of the Borrower,
     may, in the  discretion  of the  Committee,  be made for a term of not more
     than fifteen (15) years.  Interest on a loan shall be based on a reasonable
     rate of  interest.  The  rate of  interest  shall  be  based on the rate of
     interest on United  States  Treasury  obligations  for a  comparable  term,
     increased by one percent  (1%) and  adjusted to the nearest  quarter of one
     percent (1/4 of 1%). The rate shall be the rate as in effect as of the date
     determined by the Committee in  accordance  with the  provisions of Section
     9.6(b). Such rate shall remain in effect until the Loan Account is closed.

                                       54
<PAGE>

8.4  Operational Provisions

     (a)  An  application  for a loan  shall be  filed  in the  form and  manner
          prescribed  by the Committee and shall be subject to the fees, if any,
          set  forth in  Section  9.11.  If the  Committee  shall  approve  such
          application, the Committee shall establish the amount of such loan and
          such loan shall be effected as of the  Valuation  Date next  following
          receipt by the Trustee.

     (b)  The  amount  of the loan  shall  be  distributed  from the  Investment
          Accounts  in  which  the  Borrower's  Accounts  are  invested  in  the
          following order of priority:

          (i)  Before-Tax Contribution Account;

          (ii) Rollover Contribution Account; and

          (iii) vested Matching Contribution Account.

          Distributions from each of the foregoing Accounts shall be made in the
          following order of priority:

          (A)  by the redemption of Units from each of the  Borrower's  Accounts
               in the Trust  Fund in the order  set forth  above,  on a pro rata
               basis from the Investment Accounts  thereunder,  as were selected
               by the Borrower pursuant to Article VI, and

          (B)  by the  redemption of Units  invested in the Employer  Stock Fund
               from each of the Borrower's  Accounts invested under the Separate
               Agreement,  in the order  set forth  above,  if  selected  by the
               Borrower pursuant to Article VI.

     (c)  The proceeds of a loan shall be distributed to the Borrower as soon as
          practicable  after  the  Valuation  Date  as  of  which  the  loan  is
          processed;  provided,  however, that the Borrower shall have satisfied
          such  reasonable  conditions  as the Committee  shall deem  necessary,
          including,  without  limitation:  (i)  the  delivery  of  an  executed
          promissory  note  for the  amount  of the  loan,  including  interest,
          payable to the order of the  Trustees;  (ii) an assignment to the Plan
          of such  Borrower's  interest  in his  Accounts  to the extent of such
          loan; and (iii) if the Borrower is actively  employed by the Employer,
          an authorization  to the Employer to make payroll  deductions in order
          to repay  his loan to the Plan.  The  aforementioned  promissory  note
          shall be duly  acknowledged  and executed by the Borrower and shall be
          held by the Trustees,  or the Committee as agent for the Trustees,  as
          an asset of the Borrower's Loan Account pursuant to subsection (d).

     (d)  A Loan  Account  shall  be  established  for  each  Borrower  with  an
          outstanding  loan  pursuant to this  Article  VIII.  Each Loan Account
          shall be comprised of a Borrower's  (i) executed  promissory  note and

                                       55
<PAGE>

          (ii)  installment  payments of principal and interest made pursuant to
          Section 8.5(a).  Upon full payment and satisfaction of the outstanding
          Loan Account  balance,  a Borrower's  promissory  note shall be marked
          paid in full, returned to the Borrower, and his Loan Account thereupon
          closed.

     (e)  As of each  Valuation Date  coincident  with or next  succeeding  each
          payment of principal and interest on a loan, the then current  balance
          of each Borrower's Loan Account shall be debited by the amount of such
          payment  and  such  amount  shall be  transferred  for  investment  in
          accordance with Section 8.5(c) to the appropriate  Borrower's Account.
          If the Committee  established a lien against the  Borrower's  Accounts
          pursuant to Section  8.6(b),  and foreclosure of such lien is deferred
          until the  Borrower's  Termination  of  Service  pursuant  to  Section
          8.6(b)(i),  for each month that  foreclosure  of the lien is deferred,
          the then  current  balance of the  Borrower's  Loan  Account  shall be
          charged with interest on the unpaid principal and interest thereon.

     (f)  Only one (1) loan  shall be  outstanding  to any  Borrower  under this
          Article VIII at any time.

     (g)  Any loans under this Article VIII shall be subject to the restrictions
          of Section 6.5.

8.5  Repayments

     (a)  If the Borrower is on the payroll of the Employer and unless otherwise
          agreed  to by the  Committee,  repayments  of loan  principal,  or the
          unpaid  balance  thereof,  and interest  thereon shall be made through
          payroll  deductions.  The first  repayment shall be deducted as of the
          first  payroll date  occurring no later than three (3) weeks after the
          Committee submits the loan form for processing.

          If the  Borrower  is not on the  payroll  of the  Employer  and unless
          otherwise agreed to by the Committee, repayments of loan principal, or
          the unpaid balance  thereof,  and interest  thereon,  shall be made in
          cash  or  cash   equivalencies   to  the  Employer  in  equal  monthly
          installments for payment to his Loan Account.

     (b)  Any amount  repaid to the Plan by a Borrower  with  respect to a loan,
          including interest thereon, shall be invested as if such amount were a
          contribution to be invested in accordance with Section 6.1.

     (c)  With  respect  to each  Borrower's  Loan  Account,  any  repayment  of
          principal and interest made by a Borrower shall be credited, as of the
          Valuation Date coincident with or next succeeding such payment, to the
          Borrower's Accounts in the order of priority established under Section
          8.4(b).  No  Account  having  a lesser  degree  of  priority  shall be
          credited until the Account having the immediately  preceding degree of
          priority  has been  restored by an amount equal to that which had been
          borrowed from such Account.

                                       56
<PAGE>

     (d)  A Borrower may prepay his entire loan,  plus all interest  accrued and
          unpaid  thereon,  as of any  Valuation  Date.  A Borrower  will not be
          permitted to make partial prepayments to his or her Loan Account.

     (e)  In the event  the Plan is  terminated,  the  entire  unpaid  principal
          amount of the loan  hereunder,  together  with any  accrued and unpaid
          interest thereon, shall become immediately due and payable.

8.6  Default

     (a)  If a  Borrower  fails to make any  payment  on any loan when due under
          this Article VIII,  the entire unpaid  principal  amount of such loan,
          together with any accrued and unpaid interest thereon, shall be deemed
          in  default  and  become due and  payable  ninety  (90) days after the
          initial date of payment delinquency.

     (b)  If a Borrower  fails to make any payment on a loan and is deemed to be
          in default pursuant to subsection (a), the Committee shall establish a
          lien against the Borrower's  Accounts in an amount equal to any unpaid
          principal and  interest.  The lien shall be foreclosed by applying the
          value  of the  Borrower's  Loan  Account  (determined  as of the  next
          Valuation Date immediately  following  foreclosure) in satisfaction of
          said unpaid principal and interest as follows:

          (i)  if the Borrower is in the  employment of the  Employer,  upon the
               Borrower's Termination of Service; or

          (ii) if  the  Borrower  is  not in  the  employment  of the  Employer,
               immediately upon default.

          Thereupon,  the  vested  interest  in the  balance  of the  Borrower's
          Accounts  shall be  distributed  in  accordance  with  the  applicable
          provisions of the Plan.

     (c)  The Committee may, in accordance with uniform rules established by it,
          restrict the right of any  Borrower  who has  defaulted on a loan from
          the Plan to:  (i) make  withdrawals  and/or  loans  from his  Matching
          Contribution Account, Before-Tax Contribution Account, and/or Rollover
          Contribution  Account for a period not exceeding twelve (12) months or
          (ii) if the  Borrower is an Eligible  Employee,  authorize  Before-Tax
          Contributions to be made on his behalf or make any other contributions
          to the Plan for a period not exceeding twelve (12) months.

8.7  Coordination of Outstanding Account and Payment of Benefits

     (a)  If the  Borrower  has an  outstanding  Loan  Account and is either (i)
          scheduled to receive or elects to receive a lump sum  distribution  in
          accordance  with the  provisions of Article VII, or (ii)  scheduled to
          receive the last installment payment under a previous election made in
          accordance with the provisions of Article VII to receive payments in a
          form other than the normal form of benefit payments, then, at the time

                                       57
<PAGE>

          of the  distribution  or payment  under clause (i) or (ii) above,  the
          entire unpaid  principal  amount of the loan together with any accrued
          and unpaid interest thereon, shall become immediately due and payable.
          No Plan distribution, except as permitted under Section 7.2 or Section
          7.3,  shall be made to any Borrower  unless and until such  Borrower's
          Loan  Account,   including  accrued  interest  thereunder,   has  been
          liquidated  and  closed.  If a Borrower  fails to pay the  outstanding
          balance of his Loan Account hereunder, such loan shall be satisfied as
          if a default had occurred pursuant to Section 8.6.

     (b)  Any  reference  in the Plan to the Net Value of Units in a  Borrower's
          Accounts  available for  distribution to any Borrower,  shall mean the
          value  after the  satisfaction  of the entire  unpaid  principal  loan
          amount  or  amounts  and any  accrued,  unpaid  interest  thereon,  as
          provided in this Article VIII.

                                       58
<PAGE>

                                  Article IX --
                                 Administration

9.1  General Administration of the Plan

     The  operation  and  administration  of the Plan  shall be  subject  to the
     management  and  control of the Named  Fiduciaries  and Plan  Administrator
     designated  by the  Sponsoring  Employer.  The  designation  of such  Named
     Fiduciaries and Plan  Administrator,  the terms of their  appointment,  and
     their  duties  and  responsibilities  allocated  among them shall be as set
     forth in this Article IX. Any actions taken  hereunder  shall be conclusive
     and binding on Participants, Retired Participants, Employees, Beneficiaries
     and other persons, and shall not be overturned unless found to be arbitrary
     and capricious by a court of competent jurisdiction.

9.2  Designation of Named Fiduciaries

     The management and control of the operation and  administration of the Plan
     shall be allocated in the following manner:

     (a)  The  Sponsoring  Employer  shall  designate  the  Trustees  as a Named
          Fiduciary to perform those functions set forth in the Agreement or the
          Plan which are applicable to a Plan of Partial Participation.

     (b)  The Sponsoring Employer shall designate the Separate Agency to perform
          those  functions  relating to the  Separate  Agency in the Plan or the
          Separate Agreement.

     (c)  The  Sponsoring  Employer shall  designate one or more  individuals to
          serve as member(s) of an employee benefits  Committee to perform those
          functions set forth in the Agreement,  Separate  Agreement or the Plan
          that are assigned to such Committee.

     (d)  A Trust Participant (as defined under the Agreement) may delegate to a
          person or persons the duties and responsibilities for voting Units set
          forth under the Agreement and Separate Agreement.

     (e)  The Sponsoring Employer shall designate the Separate Agency as a Named
          Fiduciary  to  perform  those  functions  set  forth  in the  Separate
          Agreement  or the  Plan  that are  assigned  to the  Separate  Agency,
          including the voting and tender of shares of the Employer Stock.

9.3  Responsibilities of Fiduciaries

     The Named Fiduciaries and Plan Administrator  shall have only those powers,
     duties, responsibilities and obligations that are specifically allocated to
     them under the Plan, the Agreement or the Separate Agreement.

                                       59
<PAGE>

     To  the  extent   permitted  by  ERISA,   each  Named  Fiduciary  and  Plan
     Administrator may rely upon any direction, information or action of another
     Named Fiduciary,  Plan  Administrator  or the Sponsoring  Employer as being
     proper under the Plan, the Agreement or the Separate Agreement,  and is not
     required to inquire into the propriety of any such  direction,  information
     or action and no Named Fiduciary or Plan Administrator shall be responsible
     for  any  act  or  failure  to  act  of  another  Named   Fiduciary,   Plan
     Administrator or the Sponsoring Employer.

     No Named Fiduciary, Plan Administrator or the Employer guarantees the Trust
     Fund  or  Separate  Assets  in  any  manner  against   investment  loss  or
     depreciation in asset value.

     The  allocation of  responsibility  between the Trustees and the Sponsoring
     Employer or between the Separate Agency and the Sponsoring  Employer may be
     changed by written  agreement.  Such  reallocation  shall be  evidenced  by
     Employer Resolutions and shall not be deemed an amendment to the Plan.

     To the extent  permitted by ERISA,  the Trustees shall have no liability or
     responsibility  with respect to the  administration  of any Separate Assets
     held outside the Trust except as  specifically  set forth in the Agreement.
     The authority and  responsibility of the Trustees extend only to those Plan
     assets held in accordance with the Agreement.

9.4  Plan Administrator

     The  Sponsoring  Employer  shall  designate  the  Trustees  as the  Trustee
     Administrator  to perform  those  functions  applicable to Plans of Partial
     Participation as set forth in the Agreement.  The Sponsoring Employer shall
     also  designate  one or more  persons to act as Plan  Administrator  and to
     perform  those  functions  set  forth  in the  Agreement,  the  Plan or the
     Separate Agreement that are assigned to the Plan Administrator.

     The duties and  responsibilities  of a plan administrator under ERISA shall
     be allocated between the Plan  Administrator and the Trustee  Administrator
     as set forth herein or in the  Agreement.  Such  allocation  may be changed
     only by written  agreement  between  the parties and shall not be deemed an
     amendment to the Plan.

     The Plan  Administrator  shall be solely  responsible  for  monitoring  and
     notifying  the Trustees of an  Employee's  age for all  purposes  under the
     Plan.

     The Plan Administrator is designated as the Plan's agent for the service of
     legal process.

9.5  Committee

     The members of the Committee  designated by the  Sponsoring  Employer under
     Section  9.2(c)  shall serve for such  term(s) as the  Sponsoring  Employer
     shall  determine and until their  successors  are designated and qualified.
     The term of any member of the  Committee  may be renewed  from time to time
     without  limitation  as to  the  number  of  renewals.  Any  member  of the
     Committee  may (a) resign upon at least sixty (60) days  written  notice to

                                       60
<PAGE>

     the  Sponsoring  Employer  or (b) be removed  from  office but only for his
     failure or inability,  in the opinion of the Sponsoring Employer,  to carry
     out his responsibilities in an effective manner.  Termination of employment
     with  the  Employer  shall  be  deemed  to give  rise to  such  failure  or
     inability.

     The powers and duties  allocated to the Committee  shall be vested  jointly
     and severally in its members.  Notwithstanding specific instructions to the
     contrary,  any instrument or document  signed on behalf of the Committee by
     any member of the Committee may be accepted and relied upon by the Trustees
     and the Separate  Agency as the act of the Committee.  The Trustees and the
     Separate  Agency shall not be required to inquire into the propriety of any
     such action  taken by the  Committee  nor shall they be held liable for any
     actions taken by them in reliance thereon.

     The  Sponsoring  Employer may,  pursuant to Employer  Resolutions  and upon
     notice to the  Trustees  and the  Separate  Agency,  change  the  number of
     individuals  comprising  the  Committee,  their  terms of  office  or other
     conditions of their incumbency provided that there shall be at all times at
     least one individual member of the Committee.  Any such change shall not be
     deemed an amendment to the Plan.

9.6  Powers and Duties of the Committee

     The  Committee  shall  have  authority  to  perform  all  acts it may  deem
     necessary or appropriate in order to exercise the duties and powers imposed
     or granted by ERISA, the Plan, the Agreement, the Separate Agreement or any
     Employer  Resolutions.  Such duties and powers  shall  include,  but not be
     limited to, the following:

     (a)  Power to Construe - Except as otherwise  provided in the  Agreement or
          -----------------
          the Separate Agreement, the Committee shall have the power to construe
          the  provisions  of the Plan and to  determine  any  questions of fact
          which may arise thereunder.

     (b)  Power to Make Rules and  Regulations  - The  Committee  shall have the
          ------------------------------------
          power to make such  reasonable  rules and  regulations  as it may deem
          necessary  or  appropriate  to perform  its duties  and  exercise  its
          powers.  Such rules and regulations shall include,  but not be limited
          to, those  governing (i) the manner in which the  Committee  shall act
          and manage its own  affairs,  (ii) the  procedures  to be  followed in
          order for Employees or Beneficiaries to claim benefits,  and (iii) the
          procedures  to be followed  by  Participants,  Beneficiaries  or other
          persons entitled to benefits with respect to notifications, elections,
          designations or other actions  required by the Plan or ERISA. All such
          rules  and   regulations   shall  be   applied   in  a   uniform   and
          nondiscriminatory manner.

     (c)  Powers and Duties with Respect to  Information - The  Committee  shall
          ----------------------------------------------
          have the power and responsibility:

                                       61
<PAGE>

          (i)  to obtain such  information  as shall be necessary for the proper
               discharge of its duties;

          (ii) to furnish to the  Employer,  upon  request,  such reports as are
               reasonable and appropriate;

          (iii)to receive,  review and retain periodic  reports of the financial
               condition of the Plan Funds; and

          (iv) to receive,  collect and transmit to the Trustees all information
               required by the Trustees in the administration of the Accounts of
               the Employee as contemplated in Section 9.7.

     (d)  Power of Delegation - The  Committee  shall have the power to delegate
          -------------------
          fiduciary   responsibilities  (other  than  trustee   responsibilities
          defined under  Section  405(c)(3) of ERISA) to one or more persons who
          are not members of the Committee. Unless otherwise expressly indicated
          by the  Sponsoring  Employer,  the Committee must reserve the right to
          terminate such delegation upon reasonable notice.

     (e)  Power  of  Allocation  -  Subject  to  the  written  approval  of  the
          ---------------------
          Sponsoring  Employer,  the Committee  shall have the power to allocate
          among its members  specified  fiduciary  responsibilities  (other than
          trustee  responsibilities  defined under Section  405(c)(3) of ERISA).
          Any such allocation  shall be in writing and shall specify the persons
          to whom such allocation is made and the terms and conditions thereof.

     (f)  Duty to  Report  - Any  member  of the  Committee  to  whom  specified
          ---------------
          fiduciary  responsibilities  have been allocated under  subsection (e)
          shall report to the Committee at least  annually.  The Committee shall
          report to the  Sponsoring  Employer at least  annually  regarding  the
          performance of its  responsibilities as well as the performance of any
          persons  to whom any  powers and  responsibilities  have been  further
          delegated.

     (g)  Power to Employ  Advisors  and  Retain  Services - The  Committee  may
          ------------------------------------------------
          employ such legal counsel,  enrolled actuaries,  accountants,  pension
          specialists,  clerical help and other persons as it may deem necessary
          or desirable in order to fulfill its responsibilities under the Plan.

9.7  Certification of Information

     The Committee shall certify to the Trustees on such periodic or other basis
     as may be agreed upon,  but in no event later than ten (10) days before any
     Valuation Date as of which the Trustees must effect any action with respect
     to any  Accounts  held under the  provisions  of the Plan,  relevant  facts
     regarding  the  establishment  of the  Accounts  of an  Employee,  periodic
     contributions  with  respect to such  Accounts,  investment  elections  and
     modifications  thereof and withdrawals  and  distributions  therefrom.  The

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<PAGE>

     Trustees shall be fully protected in maintaining individual Account records
     and in  administering  the  Accounts  of the  Employee on the basis of such
     certifications  and shall have no duty of inquiry or otherwise with respect
     to any transactions or  communications  between the Committee and Employees
     relating to the information contained in such certifications.

9.8  Authorization of Benefit Payments

     The  Committee  shall  forward to the  Trustees  and,  if  applicable,  any
     Separate  Agency,   any  application  for  payment  of  benefits  within  a
     reasonable  time after it has approved such  application.  The Trustees and
     such  Separate  Agency  may rely on any such  information  set forth in the
     approved  application  for the  payment  of  benefits  to the  Participant,
     Beneficiary or any other person entitled to benefits.

9.9  Payment of Benefits to Legal Custodian

     Whenever,  in the  Committee's  opinion,  a person  entitled to receive any
     benefit payment is a minor or deemed to be physically,  mentally or legally
     incompetent to receive such benefit,  the Committee may direct the Trustees
     and Separate  Agency to make payment for his benefit to such  individual or
     institution   having  legal   custody  of  such  person  or  to  his  legal
     representative.  Any benefit payment made in accordance with the provisions
     of this Section 9.9 shall operate as a valid and complete  discharge of any
     liability for payment of such benefit under the provisions of the Plan.

9.10 Service in More Than One Fiduciary Capacity

     Any  person  or group of  persons  may  serve  in more  than one  fiduciary
     capacity with respect to the Plan, regardless of whether any such person is
     an officer, employee, agent or other representative of a party in interest.

9.11 Payment of Expenses

     The Employer will pay the ordinary  administrative expenses of the Plan and
     compensation  of the  Trustees  and  the  Separate  Agency  to  the  extent
     required. However, any expenses directly related to the Trust Fund, such as
     transfer   taxes,   brokers'   commissions,    registration   charges,   or
     administrative  expenses  of the  Trustees  (including  expenses of counsel
     retained by it in accordance  with the  Agreement),  shall be paid from the
     Trust Fund or from such Investment  Account to which such expenses directly
     relate.  In addition,  any expenses  directly related to the Employer Stock
     Fund such as transfer taxes,  brokers'  commissions,  registration charges,
     and other expenses incurred in the sale and purchase of common stock of the
     Company for the Employer Stock Fund (including expenses of counsel retained
     by it in  accordance  with the Separate  Agreement),  will be paid out of a
     cash account managed by the Separate Agency.

     The Employer may, if determined by the Committee,  charge  Employees all or
     part of the  reasonable  expenses  associated  with  withdrawals  and other
     distributions,  loan  origination  fees  and all  annual  maintenance  fees
     associated with loans or Account transfers.

                                       63
<PAGE>

9.12 Administration of Separate Assets

     The Committee and the Separate  Agency shall be solely  responsible for the
     administration  of  the  Separate  Assets,  including  the  administration,
     collection and enforcement of any loans held therein.  All contributions to
     and  withdrawals or  disbursements  from the Separate  Assets shall be made
     directly to or by the Separate Agency.

     The Trustees may, as agreed upon with the Committee,  provide such combined
     or coordinated Plan records and reports, which include the Separate Assets.
     The  Trustees  shall be fully  protected  in relying  upon any  information
     provided to them by the  Committee or Separate  Agency with respect to such
     Separate  Assets.  The inclusion of any information  pertaining to Separate
     Assets in such combined or  coordinated  Plan records and reports shall not
     increase the  responsibility  or liability of the Trustees  with respect to
     the Separate Assets. If Plan Funds may be transferred  between the Separate
     Assets  and the  other  Investment  Accounts,  the  manner  in  which  such
     transfers  may be made must be agreed  to in a written  instrument  entered
     into among the Committee, the Trustees and the Separate Agency.

                                       64
<PAGE>
                                  Article X --
                            Benefit Claims Procedure

10.1 Definition

     For  purposes of this  Article X,  "Claimant"  shall mean any  Participant,
     Beneficiary or any other person  entitled to benefits under the Plan or his
     duly authorized representative.

10.2 Claims

     A  Claimant  may file a  written  claim  for a Plan  benefit  with the Plan
     Administrator   on  the  appropriate  form  to  be  supplied  by  the  Plan
     Administrator.  The Plan  Administrator  shall,  in its  sole and  absolute
     discretion,  review the Claimant's  application  for benefits and determine
     the disposition of such claim.

10.3 Disposition of Claim

     The Plan  Administrator  shall notify the Claimant as to the disposition of
     the claim for  benefits  under this Plan within  ninety (90) days after the
     appropriate  form has been filed unless  special  circumstances  require an
     extension of time for processing. If such an extension of time is required,
     the Plan Administrator shall furnish written notice of the extension to the
     Claimant  prior to the  termination  of the initial ninety (90) day period.
     The extension notice shall indicate the special circumstances requiring the
     extension of time and the date the Plan  Administrator  expects to render a
     decision.  In no  event  shall  such  extension  exceed  a  period  of  one
     hundred-eighty (180) days from the receipt of the claim.

10.4 Denial of Claim

     If a claim for  benefits  under  this Plan is denied in whole or in part by
     the Plan  Administrator,  a notice  written  in a manner  calculated  to be
     understood by the Claimant shall be provided by the Plan  Administrator  to
     the Claimant and such notice shall include the following:

     (a)  a statement  that the claim for the benefits  under this Plan has been
          denied;

     (b)  the specific reasons for the denial of the claim for benefits,  citing
          the  specific  provisions  of the Plan  which set forth the  reason or
          reasons for the denial;

     (c)  a description of any additional material or information  necessary for
          the Claimant to perfect the claim for benefits  under this Plan and an
          explanation of why such material or information is necessary; and

     (d)  appropriate  information  as to the steps to be taken if the  Claimant
          wishes to appeal such decision.

                                       65
<PAGE>

10.5 Inaction by Plan Administrator

     A claim for benefits shall be deemed to be denied if the Plan Administrator
     shall not take any  action on such  claim  within  ninety  (90) days  after
     receipt of the  application  for  benefits  by the  Claimant  or, if later,
     within the extended processing period established by the Plan Administrator
     by written notice to the Claimant, in accordance with Section 10.3.

10.6 Right to Full and Fair Review

     A Claimant who is denied,  in whole or in part, a claim for benefits  under
     the Plan may file an appeal of such  denial.  Such  appeal  must be made in
     writing by the Claimant or his duly authorized  representative  and must be
     filed  with the  Committee  within  sixty  (60) days  after  receipt of the
     notification  under  Section  10.4 or the date his  claim is  deemed  to be
     denied under Section 10.5.  The Claimant or his  representative  may review
     pertinent documents and submit issues and comments in writing.

10.7 Time of Review

     The Committee, independent of the Plan Administrator,  shall conduct a full
     and fair  review of the denial of claim for  benefits  under this Plan to a
     Claimant  within sixty (60) days after  receipt of the written  request for
     review described in Section 10.6; provided, however, that an extension, not
     to exceed  sixty (60) days,  may apply in  special  circumstances.  Written
     notice shall be furnished to the Claimant prior to the  commencement of the
     extension period.

10.8 Final Decision

     The  Claimant  shall be notified  in writing of the final  decision of such
     full and fair review by such Committee. Such decision shall be written in a
     manner  calculated  to be  understood  by the  Claimant,  shall  state  the
     specific reasons for the decision and shall include specific  references to
     the pertinent Plan provisions upon which the decision is based. In no event
     shall the decision be furnished to the Claimant  later than sixty (60) days
     after the  receipt of a request for review,  unless  special  circumstances
     require an extension of time for processing, in which case a decision shall
     be  rendered  within one  hundred-twenty  (120) days after  receipt of such
     request for review.

                                       66
<PAGE>

                                  Article XI --
                     Amendment, Termination, and Withdrawal

11.1 Amendment and Termination

     The Employer  expects to continue the Plan  indefinitely,  but specifically
     reserves the right,  in its sole and absolute  discretion,  at any time, by
     appropriate action of the Board, to terminate its Plan or to amend (subject
     to the approval of the  Trustees),  in whole or in part,  any or all of the
     provisions of the Plan.  Subject to the provisions of Section 13.7, no such
     amendment or termination shall permit any part of the Plan Funds to be used
     for  or  diverted  to  purposes   other  than  for  exclusive   benefit  of
     Participants,  Beneficiaries or other persons entitled to benefits,  and no
     such amendment or termination shall reduce the interest of any Participant,
     Beneficiary  or other person who may be entitled to  benefits,  without his
     consent.  In the event of a termination or partial termination of the Plan,
     or upon  complete  discontinuance  of  contributions  under the  Plan,  the
     Accounts of each affected  Participant  shall become fully vested and shall
     be distributable in accordance with the provisions of Article VII.

     If any amendment  changes the vesting  schedule,  any Participant who has a
     Period of  Service  of three  (3) or more  years  may,  by filing a written
     request with the  Employer,  elect to have his vested  percentage  computed
     under the vesting schedule in effect prior to the amendment.

     The  period  during  which the  Participant  may  elect to have his  vested
     percentage  computed  under the prior vesting  schedule shall commence with
     the date the amendment is adopted and shall end on the latest of:

     (a)  sixty (60) days after the amendment is adopted;

     (b)  sixty (60) days after the amendment becomes effective; or

     (c)  sixty (60) days after the  Participant is issued written notice of the
          amendment from the Employer.

11.2 Withdrawal from the Trust Fund

     An Employer may withdraw  its Plan from the Trust Fund in  accordance  with
     and subject to the provisions of the Trust.

                                       67
<PAGE>
                                 Article XII --
                            Top-Heavy Plan Provisions

12.1 Introduction

     Any  other  provisions  of the Plan to the  contrary  notwithstanding,  the
     provisions contained in this Article XII shall be effective with respect to
     any Plan  Year in which  this  Plan is a  Top-Heavy  Plan,  as  hereinafter
     defined.

12.2 Definitions

     For purposes of this Article XII,  the  following  words and phrases  shall
     have the  meanings  stated  herein  unless a  different  meaning is plainly
     required by the context.

     (a)  "Account," for the purpose of determining the Top-Heavy  Ratio,  means
          the  sum  of  (i) a  Participant's  Accounts  as of  the  most  recent
          Valuation Date and (ii) an adjustment for  contributions due as of the
          Determination Date.

     (b)  "Determination  Date" means,  with respect to any Plan Year,  the last
          day of the preceding  Plan Year.  With respect to the first Plan Year,
          "Determination Date" means the last day of such Plan Year.

     (c)  "Five-Percent  Owner"  means,  if the Employer is a  corporation,  any
          Employee who owns (or is  considered  as owning  within the meaning of
          Section 318 of the Code modified by Section  416(i)(1)(B)(iii)  of the
          Code)  more than  five  percent  (5%) of the value of the  outstanding
          stock of, or more than five percent (5%) of the total combined  voting
          power of all the stock of,  the  Employer.  If the  Employer  is not a
          corporation,  a  Five-Percent  Owner means any  Employee who owns more
          than five  percent  (5%) of the  capital  or profits  interest  in the
          Employer.

     (d)  "Key  Employee"  means any  Employee  or former  Employee  (or,  where
          applicable,  such person's  Beneficiary)  in the Plan who, at any time
          during the Plan Year containing the  Determination  Date or any of the
          preceding  four (4) Plan Years,  is: (i) an Officer  having  Top-Heavy
          Earnings  from the Employer of greater than fifty percent (50%) of the
          dollar  limitation in effect under Section  415(b)(1)(A)  of the Code;
          (ii) one of the ten (10) Employees having Top-Heavy  Earnings from the
          Employer of more than the dollar  limitation  in effect under  Section
          415(c)(1)(A)  of the Code and owning (or  considered  as owning within
          the  meaning  of  Section   318  of  the  Code   modified  by  Section
          416(i)(1)(B)(iii)  of the  Code)  both  more  than a  one-half  of one
          percent  (1/2%)  interest  in value and the largest  interests  in the
          value of the Employer;  (iii) a Five-Percent Owner of the Employer; or
          (iv) a One-Percent  Owner of the Employer  having  Top-Heavy  Earnings
          from the Employer  greater  than one hundred  fifty  thousand  dollars

                                       68
<PAGE>

          ($150,000).  For  purposes  of  computing  the  Top-Heavy  Earnings in
          subsections  (d)(i),  (d)(ii) and (d)(iv),  the  aggregation  rules of
          Sections 414(b), (c), (m) and (o) of the Code shall apply.

     (e)  "Non-Key  Employee"  means an Employee or former  Employee (or,  where
          applicable, such person's Beneficiary) who is not a Key Employee.

     (f)  "Officer" means an Employee who is an administrative  executive in the
          regular and continued  service of his  Employer;  any Employee who has
          the title but not the  authority of an officer shall not be considered
          an Officer for purposes of this Article  XII.  Similarly,  an Employee
          who does not have the title of an officer but has the  authority of an
          officer shall be  considered an Officer.  For purposes of this Article
          XII,  the  maximum   number  of  Officers  that  must  be  taken  into
          consideration  shall be determined  as follows:  (i) three (3), if the
          number of Employees is less than thirty (30);  (ii) ten percent  (10%)
          of the  number of  Employees,  if the number of  Employees  is between
          thirty (30) and five hundred (500); or (iii) fifty (50), if the number
          of Employees is greater than five hundred (500).  In determining  such
          limit,  the term  "Employer"  shall be determined  in accordance  with
          Sections  414(b),  (c), (m) and (o) of the Code and  "Employee"  shall
          include Leased  Employees and exclude  employees  described in Section
          414(q)(5) of the Code.

     (g)  "One-Percent  Owner"  means,  if the  Employer is a  corporation,  any
          Employee who owns (or is  considered  as owning  within the meaning of
          Section 318 of the Code modified by Section  416(i)(1)(B)(iii)  of the
          Code) more than one percent (1%) of the value of the outstanding stock
          of, or more than one percent (1%) of the total  combined  voting power
          of  all  the  stock  of,  the  Employer.  If  the  Employer  is  not a
          corporation, a One-Percent Owner means any Employee who owns more than
          one percent (1%) of the capital or profits interest in the Employer.

     (h)  A "Permissive  Aggregation Group" consists of one or more plans of the
          Employer that are part of a Required  Aggregation  Group,  plus one or
          more plans that are not part of a Required  Aggregation Group but that
          satisfy the  requirements  of Sections  401(a)(4)  and 410 of the Code
          when considered  together with the Required  Aggregation Group. If two
          (2) or more  defined  benefit  plans are  included in the  aggregation
          group, the same actuarial assumptions must be used with respect to all
          such plans in determining the Present Value of Accrued Benefits.

     (i)  "Present Value of Accrued  Benefits" shall be determined in accordance
          with the actuarial  assumptions  set forth in the defined benefit plan
          and the assumed benefit  commencement  date shall be determined taking
          into account any nonproportional  subsidy.  The accrued benefit of any
          Employee  shall be  determined  under  the  method  used  for  accrual
          purposes  for all  plans  of the  Employer,  or if no such  method  is
          described,  as if such  benefit  accrued  not  more  rapidly  than the
          slowest accrual rate permitted under Section 411(b)(1)(C) of the Code.

                                       69
<PAGE>

     (j)  "Related Rollover Contributions" means rollover contributions received
          by the Plan  that are not  initiated  by the  Employee  nor made  from
          another plan maintained by the Employer.

     (k)  A "Required  Aggregation  Group" consists of each plan of the Employer
          (whether or not  terminated) in which a Key Employee  participates  or
          participated   at  any  time  during  the  Plan  Year  containing  the
          Determination  Date or any of the four (4)  preceding  Plan  Years and
          each other plan of the  Employer  (whether  or not  terminated)  which
          enables any plan in which a Key Employee  participates or participated
          to meet the  requirements of Section  401(a)(4) or 410 of the Code. If
          two (2) or more defined  benefit plans are included in the aggregation
          group, the same actuarial assumptions must be used with respect to all
          such plans in determining the Present Value of Accrued Benefits.

     (l)  A "Super Top-Heavy Plan" means a Plan in which, for any Plan Year:

          (i)  the  Top-Heavy  Ratio (as defined under  subsection  (o)) for the
               Plan exceeds ninety percent (90%) and the Plan is not part of any
               Required  Aggregation  Group (as defined under subsection (k)) or
               Permissive  Aggregation  Group (as defined under subsection (h));
               or

          (ii) the Plan is a part of a  Required  Aggregation  Group (but is not
               part of a Permissive  Aggregation  Group) and the Top-Heavy Ratio
               for the group of plans exceeds ninety percent (90%); or

          (iii)the Plan is a part of a Required  Aggregation Group and part of a
               Permissive  Aggregation  Group  and the  Top-Heavy  Ratio for the
               Permissive Aggregation Group exceeds ninety percent (90%).

     (m)  "Top-Heavy  Earnings"  means,  for any year,  compensation  as defined
          under  Section  414(q)(4) of the Code,  up to a maximum of one hundred
          sixty thousand  dollars  ($160,000)  for the 1997,  1998 and 1999 Plan
          Years and one hundred seventy thousand dollars ($170,000) for the 2000
          and 2001 Plan Years,  adjusted in multiples  of ten  thousand  dollars
          ($10,000)  for increases in the  cost-of-living,  as prescribed by the
          Secretary of the Treasury under Section 401(a)(17)(B) of the Code.

     (n)  A "Top-Heavy Plan" means a Plan in which, for any Plan Year:

          (i)  the  Top-Heavy  Ratio (as defined under  subsection  (o)) for the
               Plan exceeds  sixty percent (60%) and the Plan is not part of any
               Required  Aggregation  Group (as defined under subsection (k)) or
               Permissive  Aggregation  Group (as defined under subsection (h));
               or

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<PAGE>

          (ii) the Plan is a part of a  Required  Aggregation  Group  but is not
               part of a Permissive  Aggregation  Group and the Top-Heavy  Ratio
               for the group of plans exceeds sixty percent (60%); or

          (iii)the Plan is a part of a Required  Aggregation Group and part of a
               Permissive  Aggregation  Group  and the  Top-Heavy  Ratio for the
               Permissive Aggregation Group exceeds sixty percent (60%).

     (o)  "Top-Heavy Ratio" means:

          (i)  if  the  Employer   maintains  one  or  more  qualified   defined
               contribution  plans  and  the  Employer  has not  maintained  any
               qualified  defined  benefit  plans which during the five (5) year
               period ending on the Determination  Date have or have had accrued
               benefits,  the  Top-Heavy  Ratio  for the  Plan  alone or for the
               Required  Aggregation Group or Permissive  Aggregation  Group, as
               appropriate,  is a fraction, the numerator of which is the sum of
               the Account  balances under the aggregated  defined  contribution
               plan or plans for all Key Employees as of the Determination Date,
               including any part of any Account balance distributed in the five
               (5) year period  ending on the  Determination  Date but excluding
               distributions attributable to Related Rollover Contributions,  if
               any,  and the  denominator  of  which  is the sum of all  Account
               balances under the aggregated qualified defined contribution plan
               or  plans  for all  Participants  as of the  Determination  Date,
               including any part of any Account balance distributed in the five
               (5) year period  ending on the  Determination  Date but excluding
               distributions attributable to Related Rollover Contributions,  if
               any,  determined in  accordance  with Section 416 of the Code and
               the regulations thereunder.

          (ii) if  the  Employer   maintains  one  or  more  qualified   defined
               contribution  plans and the Employer  maintains or has maintained
               one or more qualified defined benefit plans which during the five
               (5) year period ending on the Determination Date have or have had
               any  accrued  benefits,  the  Top-Heavy  Ratio  for any  Required
               Aggregation   Group   or   Permissive   Aggregation   Group,   as
               appropriate,  is a fraction, the numerator of which is the sum of
               the  Account  balances  under the  aggregated  qualified  defined
               contribution  plan or plans for all Key Employees,  determined in
               accordance  with (i) above,  and the sum of the Present  Value of
               Accrued Benefits under the aggregated  qualified  defined benefit
               plan or plans for all Key Employees as of the Determination Date,
               and the  denominator of which is the sum of the Account  balances
               under the aggregated qualified defined contribution plan or plans
               determined in accordance with (i) above, for all Participants and
               the sum of the  Present  Value  of  Accrued  Benefits  under  the
               aggregated  qualified  defined  benefit  plan  or  plans  for all
               Participants  as of the  Determination  Date,  all  determined in
               accordance  with  Section  416 of the  Code  and the  regulations
               thereunder.  The  accrued  benefits  under  a  qualified  defined

                                       71
<PAGE>

               benefit  plan  in  both  the  numerator  and  denominator  of the
               Top-Heavy  Ratio are adjusted for any  distribution of an accrued
               benefit  made  in  the  five  (5)  year  period   ending  on  the
               Determination Date.

          (iii)For  purposes  of (i)  and  (ii)  above,  the  value  of  Account
               balances  and the  Present  Value  of  Accrued  Benefits  will be
               determined as of the most recent Valuation Date that falls within
               the twelve (12) month period  ending on the  Determination  Date,
               except as provided in Section 416 of the Code and the regulations
               thereunder  for the first and second  Plan  Years of a  qualified
               defined  benefit plan. The Account  balances and Present Value of
               Accrued  Benefits of a Participant (A) who is a Non-Key  Employee
               but who was a Key  Employee in a prior  year,  or (B) who has not
               been  credited with at least an Hour of Service with any employer
               maintaining  the Plan at any time during the five (5) year period
               ending  on  the  Determination  Date  will  be  disregarded.  The
               calculation  of the  Top-Heavy  Ratio,  and the  extent  to which
               distributions,  rollovers,  and  transfers are taken into account
               will be made in  accordance  with Section 416 of the Code and the
               regulations  thereunder.  When  aggregating  plans,  the value of
               Account  balances and the Present Value of Accrued  Benefits will
               be calculated with reference to the Determination Date that falls
               within the same calendar year.

     (p)  "Valuation Date", for the purpose of computing the Top-Heavy Ratio (as
          defined under subsection (o)) under  subsections (l) and (n) means the
          last date of the Plan Year.

     For purposes of subsections (h), (j) and (k), the rules of Sections 414(b),
     (c), (m) and (o) of the Code shall be applied in determining the meaning of
     the term "Employer".

12.3 Minimum Contributions

     If the Plan becomes a Top-Heavy  Plan, then any provision of Article III to
     the contrary notwithstanding, the following provisions shall apply:

     (a)  Subject to subsection (b), the Employer shall  contribute on behalf of
          each  Participant  who is employed by the  Employer on the last day of
          the Plan Year and who is a Non-Key  Employee an amount with respect to
          each  Top-Heavy  year  which,  when  added to the  amount  of  Special
          Contributions  and  Forfeitures  made on behalf  of such  Participant,
          shall not be less than the lesser of: (i) three  percent  (3%) of such
          Participant's  Section  415  Compensation  (as defined  under  Section
          3.11(a)(vii)  of the Plan and  modified by Section  401(a)(17)  of the
          Code),  or (ii) if the Employer  has no defined  benefit plan which is
          designated  to satisfy  Section  416 of the Code,  the  largest of the
          total  of  each  Key  Employee's  Matching  Contributions,  Before-Tax
          Contributions,  Special Contributions and Forfeitures, as a percentage
          of each such Key Employee's  Top-Heavy  Earnings;  provided,  however,
          that in no event shall any  contributions  be made under this  Section

                                       72
<PAGE>

          12.3 in an amount  which will cause the  percentage  of  contributions
          made by the  Employer  on behalf of any  Participant  who is a Non-Key
          Employee to exceed the percentage at which  contributions  are made by
          the Employer on behalf of the Key Employee for whom the  percentage of
          the total of Matching Contributions, Before-Tax Contributions, Special
          Contributions  and  Forfeitures is highest in such Top-Heavy year. Any
          such  contribution  shall be allocated  to the  Matching  Contribution
          Account of each such  Participant  and,  for  purposes  of vesting and
          withdrawals only, shall be deemed to be a Matching  Contribution.  Any
          such  contribution  shall not be deemed to be a Matching  Contribution
          for any other purpose.

     (b)  Notwithstanding  the  foregoing,  this Section 12.3 shall not apply to
          any  Participant to the extent that such  Participant is covered under
          any other plan or plans of the Employer (determined in accordance with
          Sections  414(b),  (c),  (m) and (o) of the Code) and such  other plan
          provides that the minimum  allocation or benefit  requirement  will be
          met by such other plan  should  this Plan  become  Top-Heavy.  If such
          other  plan does not  provide  for a  minimum  allocation  or  benefit
          requirement, a minimum of five percent (5%) of a Participant's Section
          415  Compensation,  as  defined  in Section  12.3(a)  above,  shall be
          provided under this Plan.

     (c)  For purposes of this Article XII, the following shall be considered as
          a contribution made by the Employer:

          (i)  Qualified Nonelective Contributions;

          (ii) Matching  Contributions  made by the  Employer  on  behalf of Key
               Employees; and

          (iii)Before-Tax  Contributions  made by the  Employer on behalf of Key
               Employees.

     (d)  Subject to the  provisions  of  subsection  (b), all Non-Key  Employee
          Participants  who are  employed by the Employer on the last day of the
          Plan Year shall  receive the  defined  contribution  minimum  provided
          under  subsection  (a).  A Non-Key  Employee  may not fail to accrue a
          defined contribution minimum merely because such Employee was excluded
          from  participation  or failed to  accrue a  benefit  because  (i) his
          Compensation  is less than a stated amount,  or (ii) he failed to make
          Before-Tax Contributions.

12.4 Impact on Section 415 Maximum Benefits

     For any Plan Year commencing prior to January 1, 2000, in which the Plan is
     a Super  Top-Heavy  Plan,  Sections  3.11(a)(iv)  and (v)  shall be read by
     substituting  the  number  1.0 for the  number  1.25  wherever  it  appears
     therein.

                                       73
<PAGE>

     For any Plan  Year in which  the Plan is a  Top-Heavy  Plan but not a Super
     Top-Heavy  Plan, the Plan shall be treated as a Super  Top-Heavy Plan under
     this  Section  12.4,  unless  each  Non-Key  Employee  who is entitled to a
     minimum contribution or benefit receives an additional minimum contribution
     or benefit.  If the Non-Key Employee is entitled to a minimum  contribution
     under Section  12.3(a),  the Plan shall not be treated as a Super Top-Heavy
     Plan under this Section 12.4 if the minimum contribution  satisfies Section
     12.3(a)  when four percent (4%) is  substituted  for three  percent (3%) in
     Section  12.3(a)(i).  If the  Non-Key  Employee  is  entitled  to a minimum
     contribution  under  Section  12.3(b),  the Plan  shall not be treated as a
     Super  Top-Heavy Plan under this Section 12.4, if the minimum  contribution
     satisfies  Section  12.3(b)  when seven and  one-half  percent  (7-1/2%) is
     substituted for five percent (5%).

                                       74
<PAGE>
                                 Article XIII --
                            Miscellaneous Provisions

13.1 No Right to Continued Employment

     Neither the  establishment  of the Plan, nor any provisions of the Plan, of
     the Agreement  establishing the Trust or of any Separate  Agreement nor any
     action of any Named Fiduciary, Plan Administrator or the Employer, shall be
     held or construed  to confer upon any Employee any right to a  continuation
     of his  employment  by the  Employer.  The  Employer  reserves the right to
     dismiss any Employee or otherwise deal with any Employee to the same extent
     and in the same manner that it would if the Plan had not been adopted.

13.2 Merger, Consolidation, or Transfer

     The Plan shall not be merged or consolidated  with, nor transfer its assets
     or  liabilities  to,  any other plan  unless  each  Employee,  Participant,
     Beneficiary and other person entitled to benefits under the Plan, would (if
     such other plan then terminated)  receive a benefit  immediately  after the
     merger,  consolidation  or transfer  which is equal to or greater  than the
     benefit he would have been  entitled to receive if the Plan had  terminated
     immediately before the merger, consolidation or transfer.

13.3 Nonalienation of Benefits

     Except,  effective  August  5,  1997,  to the  extent  of any  offset  of a
     Participant's  benefits  as a result  of any  judgment,  order,  decree  or
     settlement  agreement  provided  in  Section  401(a)(13)(C)  of  the  Code,
     benefits  payable  under the Plan  shall not be  subject  in any  manner to
     anticipation,  alienation, sale, transfer, assignment, pledge, encumbrance,
     charge,  garnishment,  execution,  or levy of any kind, either voluntary or
     involuntary  and any attempt to so anticipate,  alienate,  sell,  transfer,
     assign,  pledge,  encumber,  charge,  garnish,  execute,  levy or otherwise
     affect  any  right  to   benefits   payable   hereunder,   shall  be  void.
     Notwithstanding  the  foregoing,  the Plan  shall  permit  the  payment  of
     benefits in accordance with a qualified domestic relations order as defined
     under Section 414(p) of the Code.

13.4 Missing Payee

     Any other  provision in the Plan,  Agreement  or Separate  Agreement to the
     contrary notwithstanding, if the Trustees and, if appropriate, any Separate
     Agency are unable to make payment to any Employee, Participant, Beneficiary
     or other person to whom a payment is due  ("Payee")  under the Plan because
     the  identity or  whereabouts  of such Payee  cannot be  ascertained  after
     reasonable  efforts  have  been made to  identify  or  locate  such  person
     (including  mailing a certified notice of the payment due to the last known
     address  of such  Payee as  shown on the  records  of the  Employer),  such
     payment and all  subsequent  payments  otherwise due to such Payee shall be

                                       75
<PAGE>

     forfeited  twenty-four (24) months after the date such payment first became
     due. However,  such payment and any subsequent payments shall be reinstated
     retroactively,  without  interest,  no later than sixty (60) days after the
     date on which the Payee is identified and located.

13.5 Affiliated Employers

     All  employees  of all  Affiliated  Employers  shall,  for  purposes of the
     limitations  in Article XII and for measuring  Hours of Service and Periods
     of Service, be treated as employed by a single employer.  No employee of an
     Affiliated Employer shall become a Participant of this Plan unless employed
     by the Employer or an Affiliated Employer which has adopted the Plan.

13.6 Successor Employer

     In the event of the dissolution, merger, consolidation or reorganization of
     the  Employer,   the  successor   organization  may,  upon  satisfying  the
     provisions  of the  Agreement  and the Plan,  adopt and continue this Plan.
     Upon adoption, the successor organization shall be deemed the Employer with
     all its  powers,  duties  and  responsibilities  and shall  assume all Plan
     liabilities.

13.7 Return of Employer Contributions

     Any other  provision of the Plan,  Agreement  or Separate  Agreement to the
     contrary notwithstanding,  upon the Employer's request and with the consent
     of the Trustees and, if appropriate, any Separate Agency, a contribution to
     the Plan by the  Employer  which was (a) made by  mistake  of fact,  or (b)
     conditioned  upon  initial  qualification  of the Plan  with  the  Internal
     Revenue Service,  or (c) conditioned upon the deductibility by the Employer
     of such  contributions  under Section 404 of the Code, shall be returned to
     the Employer  within one (1) year after:  (i) the payment of a contribution
     made by mistake of fact, or (ii) the denial of such  qualification or (iii)
     the disallowance of the deduction (to the extent  disallowed),  as the case
     may be.

     Any such  return  shall not  exceed  the  lesser of (A) the  amount of such
     contributions  (or, if  applicable,  the amount of such  contribution  with
     respect to which a deduction is denied or  disallowed) or (B) the amount of
     such  contributions net of a proportionate  share of losses incurred by the
     Plan during the period  commencing on the  Valuation  Date as of which such
     contributions  are made and ending on the  Valuation  Date as of which such
     contributions  are  returned.  All such refunds shall be limited in amount,
     circumstances and timing to the provisions of Section 403(c) of ERISA.

13.8 Adoption of Plan by Affiliated Employer

     An Affiliated  Employer of the  Sponsoring  Employer may adopt the Plan and
     Agreement upon satisfying the requirements set forth in the Agreement. Upon
     such  adoption,  such  Affiliated  Employer  shall  become a  Participating

                                       76
<PAGE>

     Affiliate  in the Plan,  which Plan shall be deemed a "single  plan" within
     the meaning of Income Tax Regulations Section 1.414(l)-1(b)(1).

     For  purposes  of  Article  IX,  Employer  shall  mean only the  Sponsoring
     Employer  and each  Participating  Affiliate  shall be deemed to accept and
     designate the Named Fiduciaries,  Committee,  Plan  Administrator,  Trustee
     Administrator  and voter of Units designated by the Sponsoring  Employer to
     act on its  behalf  in  accordance  with  the  provisions  of the  Plan and
     Agreement.

     The  Sponsoring  Employer  shall solely  exercise for and on behalf of such
     Participating  Affiliate the powers reserved to the Employer under Articles
     IX and XI. However,  such Participating  Affiliate may at anytime terminate
     its future participation in the Plan for the purposes and in the manner set
     forth in the Agreement.

13.9 Construction of Language

     Wherever appropriate in the Plan, words used in the singular may be read in
     the plural; words used in the plural may be read in the singular; and words
     importing  the  masculine  gender  shall be deemed  equally to refer to the
     female  gender.  Any reference to a section number shall refer to a section
     of this Plan, unless otherwise indicated.

13.10 Headings

     The headings of articles and sections are included  solely for  convenience
     of  reference,  and if there be any conflict  between such headings and the
     text of the Plan, the text shall control.

13.11 Governing Law

     The Plan shall be governed by and construed and enforced in accordance with
     the laws of the State of New York,  except to the extent that such laws are
     preempted by the Federal laws of the United States of America.

     IN WITNESS  WHEREOF,  pursuant to  resolutions of the Board of Directors of
Cortland  Savings Bank duly adopted on December 21, 1998, and the  authorization
contained  therein,  the Plan, as herein revised to include changes  required by
the  Internal  Revenue  Service  and  conforming  technical  and  administrative
revisions, is hereby executed.

                                            CORTLAND SAVINGS BANK

                                            By:    /s/ Kathleen P. Monti
                                                   ----------------------------

                                            Title: Executive Vice President

                                            Date:  January 18, 2002

                                       77Exhibit 10.3

================================================================================
                      Savings Bank of the Finger Lakes, FSB
                               401(k) Savings Plan

               (As Amended And Restated Effective December 1, 1999

                     and as Amended Through January 1, 2000)
================================================================================

<PAGE>

                                Table Of Contents

Table Of Contents          ....................................................i

Introduction               ....................................................1

Article I --  Definitions  ....................................................2

Article II--  Eligibility and Participation...................................11
         2.1      Eligibility.................................................11
         2.2      Ineligible Employees........................................11
         2.3      Participation...............................................11
         2.4      Termination of Participation................................12
         2.5      Eligibility upon Reemployment...............................12

Article III--  Contributions and Limitations on Contributions.................14
         3.1      Before-Tax Contributions....................................14
         3.2      Limitation on Before-Tax Contributions......................14
         3.3      Changes in Before-Tax Contributions.........................16
         3.4      Special Contributions.......................................17
         3.5      Discretionary Employer Contributions........................17
         3.6      Interest on Excess Contributions............................18
         3.7      Payment of Contributions....................................18
         3.8      Rollover Contributions......................................19
         3.9      Section 415 Limits on Contributions.........................19

Article IV--  Vesting and Forfeitures.........................................24
         4.1      Vesting.....................................................24
         4.2      Forfeitures.................................................25
         4.3      Vesting upon Reemployment...................................25

Article V--   Trust Fund and Investment Accounts..............................27
         5.1      Trust Fund..................................................27
         5.2      Interim Investments.........................................27
         5.3      Account Values..............................................27
         5.4      Voting Rights...............................................28
         5.5      Tender Offers and Other Offers..............................29
         5.6      Dissenters' Rights..........................................30
         5.7      Power to Invest in Employer Securities......................31

Article VI --  Investment Directions, Changes of Investment Directions
                          and Transfers Between Investment Accounts...........32
         6.1      Investment Directions.......................................32
         6.2      Change of Investment Directions.............................32
         6.3      Transfers Between Investment Accounts.......................32
         6.4      Employees Other than Participants...........................32

                                       i
<PAGE>

         6.5      Restrictions on Investments in the Employer Stock Fund
                   for Certain Participants...................................33

Article VII--  Payment of Benefits............................................34
         7.1      General.....................................................34
         7.2      Non-Hardship Withdrawals....................................34
         7.3      Hardship Distributions......................................35
         7.4      Distribution of Benefits Following Retirement Or
                   Termination of Service.....................................38
         7.5      Payments upon Retirement or Disability......................39
         7.6      Payments upon Termination of Service for Reasons
                   Other Than Retirement or Disability........................41
         7.7      Payments Upon Death.........................................42
         7.8      Direct Rollover of Eligible Rollover Distributions..........44
         7.9      Commencement of Benefits....................................45
         7.10     Manner of Payment of Distributions from the Employer
                    Stock Fund................................................46

Article VIII--  Loans to Participants.........................................47
         8.1      Definitions and Conditions..................................47
         8.2      Loan Amount.................................................47
         8.3      Term of Loan................................................47
         8.4      Operational Provisions......................................48
         8.5      Repayments..................................................49
         8.6      Default.....................................................50
         8.7      Coordination of Outstanding Account and Payment
                   of Benefits................................................50

Article IX--  Administration..................................................52
         9.1      General Administration of the Plan..........................52
         9.2      Designation of Named Fiduciaries............................52
         9.3      Responsibilities of Fiduciaries.............................52
         9.4      Plan Administrator..........................................53
         9.5      Committee...................................................53
         9.6      Powers and Duties of the Committee..........................54
         9.7      Certification of Information................................55
         9.8      Authorization of Benefit Payments...........................55
         9.9      Payment of Benefits to Legal Custodian......................55
         9.10     Service in More Than One Fiduciary Capacity.................56
         9.11     Payment of Expenses.........................................56

Article X--  Benefit Claims Procedure.........................................57
         10.1     Definition..................................................57
         10.2     Claims......................................................57
         10.3     Disposition of Claim........................................57
         10.4     Denial of Claim.............................................57
         10.5     Inaction by Plan Administrator..............................58
         10.6     Right to Full and Fair Review...............................58
         10.7     Time of Review..............................................58
         10.8     Final Decision..............................................58

                                       ii
<PAGE>

Article XI--  Amendment, Termination, and Withdrawal..........................59
         11.1     Amendment and Termination...................................59
         11.2     Withdrawal from the Trust Fund..............................59

Article XII--  Top-Heavy Plan Provisions......................................60
         12.1     Introduction................................................60
         12.2     Definitions.................................................60
         12.3     Minimum Contributions.......................................64
         12.4     Impact on Section 415 Maximum Benefits......................65
         12.5     Vesting.....................................................66

Article XIII--  Miscellaneous Provisions......................................67
         13.1     No Right to Continued Employment............................67
         13.2     Merger, Consolidation, or Transfer..........................67
         13.3     Nonalienation of Benefits...................................67
         13.4     Missing Payee...............................................67
         13.5     Affiliated Employers........................................68
         13.6     Successor Employer..........................................68
         13.7     Return of Employer Contributions............................68
         13.8     Adoption of Plan by Affiliated Employer.....................68
         13.9     Construction of Language....................................69
         13.10    Headings....................................................69
         13.11    Governing Law...............................................69

                                      iii

<PAGE>

                                  Introduction

Effective  as of  January  1,  1985,  Savings  Bank  of the  Finger  Lakes,  FSB
("Employer")  adopted  the  Savings  Bank of the Finger  Lakes,  FSB 401(k) Plan
("Prior Plan").

Effective  as of December 1, 1999,  the  Employer  adopted  resolutions  wherein
RSGroup  Trust  Company  ("RTC")  was  named  successor  trustee  and the  Trust
Agreement between the Employer and RTC ("Trust Agreement") was adopted.

Effective as of December 1, 1999, the Prior Plan was amended and restated in its
entirety.  The amended and  restated  plan shall be known as Savings Bank of the
Finger  Lakes,  FSB 401(k)  Savings Plan  ("Plan"),  shall contain the terms and
conditions  set  forth  herein,  and shall in all  respects  be  subject  to the
provisions of the Trust Agreement which are incorporated  herein and made a part
hereof.

The Plan as amended  and  restated  hereunder  incorporates  a cash or  deferred
arrangement  under  Section  401(k) of the  Internal  Revenue  Code of 1986,  as
amended ("Code").

The Plan shall  constitute a  profit-sharing  plan within the meaning of Section
401(a) of the Code,  without  regard to  current or  accumulated  profits of the
Employer, as provided in Section 401(a)(27) of the Code.

The Plan complies with all Internal Revenue Service  legislation and regulations
issued to date addressing  tax-qualified plans, including the Uniformed Services
Employment and  Reemployment  Rights Act of 1994,  the Uruguay Round  Agreements
Act, the Small Business Job  Protection Act of 1996, the Taxpayer  Relief Act of
1997 and the Restructuring and Reform Act of 1998.

Subject to any amendments that may subsequently be adopted by the Employer prior
to his Termination of Service, the provisions set forth in this Plan shall apply
to an Employee who is in the  employment of the Employer on or after December 1,
1999. Except to the extent specifically required to the contrary under the terms
of this Plan,  for  terminations  of employment  prior to December 1, 1999,  the
rights and benefits of a former  participant  shall be  determined in accordance
with the  provisions  of the Prior  Plan as in effect on the date of the  former
participant's termination of employment.

The Employer has herein  restated the Plan with the intention  that (a) the Plan
shall at all times be qualified  under Section 401(a) of the Code, (b) the Trust
Agreement shall be tax-exempt under Section 501(a) of the Code, and (c) Employer
contributions  under the Plan shall be tax  deductible  under Section 404 of the
Code. The provisions of the Plan and the Trust  Agreement  shall be construed to
effectuate such intentions.

                                       1

<PAGE>

                                  Article I --
                                   Definitions

The following words and phrases shall have the meanings  hereinafter ascribed to
them. Those words and phrases which have limited  application are defined in the
respective Articles in which such terms appear.

1.1      Accounts means the Before-Tax  Contribution  Account (including Special
         Contributions, if any), Discretionary Employer Contribution Account and
         Rollover  Contribution  Account established under the Plan on behalf of
         an Employee.

1.2      Actual Deferral  Percentage means the ratio (expressed as a percentage)
         of the sum of Before-Tax Contributions, and those Qualified Nonelective
         Contributions  taken  into  account  under the Plan for the  purpose of
         determining the Actual Deferral Percentage, which are made on behalf of
         an  Eligible  Employee  for the Plan Year to such  Eligible  Employee's
         compensation (as defined under Section 414(s) of the Code) for the Plan
         Year.  An Eligible  Employee's  compensation  hereunder  shall  include
         compensation  receivable from the Employer for that portion of the Plan
         Year during which the Employee is an Eligible Employee, up to a maximum
         of one hundred sixty thousand dollars ($160,000) for the 1999 Plan Year
         and increased to one hundred seventy  thousand dollars ($170,00 for the
         2000 Plan Year, adjusted in multiples of ten thousand dollars ($10,000)
         for increases in the cost-of-living,  as prescribed by the Secretary of
         the Treasury under Section 401(a)(17)(B) of the Code.

1.3      Affiliated  Employer means a member of an affiliated  service group (as
         defined  under  Section  414(m) of the  Code),  a  controlled  group of
         corporations  (as defined under Section 414(b) of the Code), a group of
         trades or  businesses  under common  control (as defined  under Section
         414(c) of the  Code) of which the  Employer  is a member,  any  leasing
         organization  (as defined under Section  414(n) of the Code)  providing
         the services of Leased  Employees to the  Employer,  or any other group
         provided for under any and all Income Tax  Regulations  promulgated  by
         the Secretary of the Treasury under Section 414(o) of the Code.

1.4      Affiliated  Service means employment with an employer during the period
         that such employer is an Affiliated Employer.

1.5      Average  Actual  Deferral  Percentage  means the  average of the Actual
         Deferral  Percentages of (a) the group comprised of Eligible  Employees
         who are Highly  Compensated  Employees  or (b) the group  comprised  of
         Eligible Employees who are Non-Highly Compensated Employees,  whichever
         is applicable.

1.6      Before-Tax Contribution Account means the separate,  individual account
         established   on  behalf   of  a   Participant   to  which   Before-Tax
         Contributions and Special  Contributions if any, made on his behalf are
         credited,  together  with all earnings and  appreciation  thereon,  and
         against   which  are   charged   any   withdrawals,   loans  and  other
         distributions  made from such account and any losses,  depreciation  or
         expenses allocable to amounts credited to such account.
                                       2
<page>

1.7      Before-Tax  Contributions  means the contributions of the Employer made
         in   accordance   with  the   Compensation   Reduction   Agreements  of
         Participants pursuant to Section 3.1.

1.8      Beneficiary means any person who is receiving or is eligible to receive
         a benefit  under  Section 7.7 of the Plan upon the death of an Employee
         or former Employee.

1.9      Board means the board of trustees, directors or other governing body of
         the Sponsoring Employer.

1.10     Code means the Internal  Revenue Code of 1986,  as amended from time to
         time.

1.11     Committee  means the person or persons  appointed  by the  Employer  in
         accordance with Section 9.2(b).

1.12     Company  means  Finger  Lakes   Financial   Corp.,   or  any  successor
         organization.

1.13     Compensation means an Employee's wages,  salary, fees and other amounts
         defined as compensation in Section 415(c)(3) of the Code and Income Tax
         Regulations  Sections  1.415-2(d)(2)  and (3),  received  for  personal
         services  actually  rendered  in the  course  of  employment  with  the
         Employer for the calendar  year,  prior to any reduction  pursuant to a
         Compensation   Reduction   Agreement.    Compensation   shall   include
         commissions,  overtime,  bonuses,  wage  continuation  payments  to  an
         Employee  absent due to illness or disability  of a short-term  nature,
         the amount of any  Employer  contributions  under a  flexible  benefits
         program  maintained  by the  Employer  under  Section  125 of the  Code
         pursuant  to  a  salary  reduction   agreement   entered  into  by  the
         Participant  under Section 125 of the Code,  amounts paid or reimbursed
         by the  Employer  for  Employee  moving  expenses  (to the  extent  not
         deductible by the Employee),  and the value of any  nonqualified  stock
         option granted to an Employee by the Employer (to the extent includable
         in gross income for the year granted).

         Compensation does not include contributions made by the Employer to any
         other pension, deferred compensation, welfare or other employee benefit
         plan, amounts realized from the exercise of a nonqualified stock option
         or the sale of a qualified stock option, and other amounts which
         receive special tax benefits.

         Compensation  shall  not  exceed one  hundred  sixty  thousand  dollars
         ($160,000) for the  1999 Plan Year and increased to one hundred seventy
         thousand  dollars  ($170,000)  for the 2000  Plan  Year,  adjusted  in
         multiples  of ten  thousand   dollars  ($10,000)  for  increases in the
         cost-of-living,  as  prescribed by the Secretary of the Treasury  under
         Section  401(a)(17)(B)  of the Code. For purposes of this Section 1.13,
         if the Plan Year in which  a  Participant's  Compensation is being made
         is less than twelve (12)  calendar  months,  the amount of Compensation
         taken into account for such  Plan Year shall be the adjusted amount, as
         prescribed by the Secretary  of the Treasury  under Section  401(a)(17)
         of the  Code,  for  such  Plan  Year  multiplied   by a  fraction,  the

                                       3
<page>

         numerator of which is  the number of months taken into account for such
         Plan Year and the  denominator of which is twelve  (12). In determining
         the  dollar  limitation  hereunder,  compensation   received  from  any
         Affiliated Employer shall be recognized as Compensation.

1.14     Compensation  Reduction  Agreement  means  an   agreement  between  the
         Employer and an Eligible Employee whereby  the Eligible Employee agrees
         to reduce his Compensation  during the  applicable payroll period by an
         amount equal to  any whole percentage  thereof,  to the extent provided
         in Section   3.1, and the Employer  agrees to  contribute  to the Trust
         Fund,  on  behalf of such  Eligible  Employee,  an amount  equal to the
         specified reduction in Compensation.

1.15     Disability   means  a  physical  or  mental  condition,  which  renders
         the Participant   eligible for  benefits under the Employer's long term
         disability plan.

1.16     Discretionary   Employer  Contribution  Account  means   the  separate,
         individual account established on behalf  of  an Eligible  Employee  to
         which  Discretionary  Employer  Contributions,  if any,  are  credited,
         together with all earnings and appreciation thereon,  and against which
         are charged any withdrawals, loans  and  other distributions  made from
         such   account,  as  well  as  any  losses,  depreciation,  or expenses
         allocable to amounts credited to such account.

1.17     Discretionary   Employer  Contributions  means  the  amounts,  if  any,
         contributed by the Employer on behalf of an Eligible Employee, pursuant
         to Section 3.5.

1.18     Early  Retirement Date means the first day of any month coincident with
         or following the  Participant's  attainment of age fifty-five  (55) and
         the completion of five (5) Years of Service.

1.19     Effective Date means January 1, 1985.

1.20     Eligibility  Computation  Period means a twelve (12) consecutive  month
         period  commencing on an Employee's  Employment  Commencement  Date and
         each Plan Year thereafter. The succeeding twelve (12) consecutive month
         period  begins  with the Plan Year which  commences  prior to the first
         anniversary of the Employee's  Employment  Commencement Date regardless
         of whether the  Employee is entitled to be credited  with one  thousand
         (1,000)  Hours of Service  during the initial  Eligibility  Computation
         Period.

1.21     Eligible  Employee  means an Employee who is eligible to participate in
         the Plan pursuant to the provisions of Article II.

1.22     Employee means any person employed by the Employer.

1.23     Employer  means  Savings  Bank  of  the  Finger  Lakes,   FSB  and  any
         Participating  Affiliate  or any  successor  organization  which  shall
         continue to maintain the Plan set forth herein.

1.24     Employer Resolutions means resolutions adopted by the Board.

                                        4
<page>
1.25     Employer Stock means the common stock of the Company.

1.26     Employer  Stock Fund means,  the assets  consisting  of Employer  Stock
         which shall be maintained in an Investment Account established for such
         purpose.

1.27     Employment  Commencement Date means the date on which an Employee first
         performs an Hour of Service for the Employer  upon  initial  employment
         or, if applicable, upon reemployment.

1.28     ERISA means the Employee  Retirement  Income  Security Act of 1974,  as
         amended from time to time.

1.29     Forfeitures means any amounts forfeited pursuant to Section 4.2.

1.30     Hardship means the condition described in Section 7.3.

1.31     Highly  Compensated  Employee  means,  with respect to a Plan Year,  an
         Employee  or an  employee  of an  Affiliated  Employer  who is  such an
         Employee or employee during the Plan Year for which a determination  is
         being made and who:

         (a)      during the Plan Year  immediately  preceding the Plan Year for
                  which a determination is being made, (i) received compensation
                  as  defined  under  Section  414(q)(4)  of the Code  ("Section
                  414(q)  Compensation") from the Employer,  in excess of eighty
                  thousand dollars ($80,000), (increased to eighty five thousand
                  dollars  ($85,000)  for  the  2000  Plan  Year),  adjusted  as
                  prescribed  by the  Secretary  of the Treasury  under  Section
                  415(d) of the Code, or

         (b)      at any time during the Plan Year for which a determination  is
                  being  made or at any time  during  the Plan Year  immediately
                  preceding  the Plan  Year for which a  determination  is being
                  made,  was a  five-percent  owner as described  under  Section
                  414(q)(2) of the Code.

         For purposes of subsection (a) above, Section 414(q) Compensation shall
         include (A) any elective  deferral (as defined in Section  402(g)(3) of

                                     5
<page>
         the Code,  and (B) any amount which is  contributed  or deferred by the
         Employer at the election of the Employee and which is not includable in
         the gross income of the Employee by reason of Section 125 or 457 of the
         Code.

         Highly  Compensated  Employee  also  means a  former  Employee  who (A)
         incurred  a  Termination  of  Service  prior  to the  Plan  Year of the
         determination,  (B) is not credited with an Hour of Service  during the
         Plan Year of the  determination  and (C) satisfied the  requirements of
         subsection (a) or (b) during either the Plan Year of his Termination of
         Service or any Plan Year ending  coincident  with or  subsequent to the
         Employee's attainment of age fifty-five (55).

         For  purposes of this  Section  1.31,  if either (aa) the Plan Year for
         which a determination  is being made or (bb) the Plan Year  immediately
         preceding the Plan Year for which a  determination  is being made, is a
         short Plan Year,  the  determination  shall be made for the twelve (12)
         month period which commences on the first day of such short Plan Year.

1.32     Hour of Service means the following:

         (a)      each hour for which an Employee is directly or indirectly paid
                  or entitled to payment, by the Employer for the performance of
                  duties.  These hours shall be credited to the Employee for the
                  computation   period  or  periods  in  which  the  duties  are
                  performed; and

         (b)      each hour,  for which an Employee  is  directly or  indirectly
                  paid or entitled to payment by the Employer for reasons  (such
                  as but not limited to vacation,  sickness or disability) other
                  than for the  performance of duties  (irrespective  of whether
                  the employment relationship has terminated). These hours shall
                  be  credited to the  Employee  for the  computation  period or
                  periods in which the nonperformance of duties occur; and

         (c)      each hour for which back pay,  irrespective  of  mitigation of
                  damage,  has been either awarded or agreed to by the Employer.
                  These  hours  shall  be  credited  to  the  Employee  for  the
                  computation  period or periods to which the award or agreement
                  pertains  rather  than the  computation  period  in which  the
                  award,  agreement,  or payment  was made.  These same Hours of
                  Service  shall not be credited  under both  subsection  (a) or
                  subsection (b), and under this subsection (c).

         (d)      Hours of Service  shall be computed and credited in accordance
                  with  Section   2530.200b-2   of  the   Department   of  Labor
                  Regulations which are incorporated herein by reference.

         (e)      Hours of Service shall include Affiliated Service.

         Hours  of  Service  for  whom  records  are  not  maintained  shall  be
         determined  on  the   assumption   that  each  Employee  has  completed
         forty-five  (45)  Hours of  Service  per week for each week in which he
         would be required to be credited with at least one (1) Hour of Service.

1.33     Investment  Accounts means any and all of the Plan investment  accounts
         established  for the  purpose of  investing  contributions  made to the
         Trust Fund in accordance  with the  provisions of the Trust  Agreement.
         The property in which  contributions to the Investment  Accounts may be
         invested  shall be specified in the Trust  Agreement  and the rights of
         the Trustee shall be established  in accordance  with the provisions of
         such Trust Agreement.

1.34     Leased  Employee  means any  individual  (other than an Employee of the
         Employer or an employee of an Affiliated  Employer) who, pursuant to an
         agreement between the Employer or any Affiliated Employer and any other
         person  ("leasing  organization"),   has  performed  services  for  the
         Employer or any Affiliated Employer on a substantially  full-time basis
         for a period of at least one (1) year,  and such services are performed

                                     6
<page>
         under the  primary  direction  of and  control by the  Employer  or any
         Affiliated  Employer.  A determination  as to whether a Leased Employee
         shall be  treated  as an  Employee  of the  Employer  or an  Affiliated
         Employer  shall be made as  follows:  a Leased  Employee  shall  not be
         considered  an  Employee  of the  Employer  if: (a) such  employee is a
         participant  in  a  money   purchase   pension  plan  providing  (i)  a
         nonintegrated  Employer contribution rate of at least ten percent (10%)
         of compensation,  as defined in Section 415(c)(3) of the Code, however,
         including  amounts  contributed  pursuant to a  compensation  reduction
         agreement which are excludable  from the employee's  gross income under
         Section 125, Section 402(e)(3),  Section 402(h)(1)(B) or Section 403(b)
         of the Code;  (ii)  immediate  plan  participation;  and (iii) full and
         immediate vesting; and (b) Leased Employees do not constitute more than
         twenty   percent  (20%)  of  the  Employer's   Non-Highly   Compensated
         Employees.

1.35     Named Fiduciaries means the Trustee and the Committee designated by the
         Sponsoring Employer to control and manage the operation and
         administration of the Plan.

1.36     Net Value means the value of an Employee's Accounts as determined as of
         the Valuation Date coincident with or next following the event
         requiring such determination.

1.37     Non-Highly  Compensated  Employee  means,  with respect to a Plan Year,
         an Employee  who is not a Highly  Compensated Employee.

1.38     Normal Retirement Age means the date an Employee attains age sixty-five
        (65).

1.39     Normal Retirement Date means the first day of the month coincident with
         or next following the  Participant's  Normal Retirement Age.

1.40     One  Year Break  in  Service  means, an Eligibility  Computation Period
         during which the Employee did not complete more than five hundred (500)
         Hours of Service.

          For purposes of determining  if an Employee  incurred a One Year Break
          in Service,  if an Employee is absent from employment for maternity or
          paternity reasons, such Employee shall receive credit for the Hours of
          Service which would  otherwise have been credited to such Employee but
          for such  absence but in no event shall more than five  hundred  (500)
          Hours of Service be credited during a computation  period. Such credit
          shall be applied to the  computation  period during which such absence
          from employment  first occurs,  if such credit will prevent a One Year
          Break in  Service,  otherwise,  such  credit  shall be  applied to the
          immediately  following  computation period. An absence from employment
          for  maternity or paternity  reasons means an absence (a) by reason of
          pregnancy of the  Employee,  or (b) by reason of a birth of a child of
          the  Employee,  or (c) by reason of the  placement of a child with the
          Employee  in  connection  with  the  adoption  of such  child  by such
          Employee,  or (d) for  purposes  of caring for such child for a period
          beginning immediately following such birth or placement.
                                     7
<page>

1.41     Participant means  an Eligible Employee  who participates in accordance
         with the provisions of Section 2.3, and whose participation in the Plan
         has not been terminated in accordance with  the  provisions  of Section
         2.4.

1.42     Participating  Affiliate  means  any  corporation that is a member of a
         controlled group of corporations (within  the meaning of Section 414(b)
         of  the  Code) of  which  the  Sponsoring  Employer is a member and any
         unincorporated trade or business that is  a member of a group of trades
         or businesses under common control(within the meaning of Section 414(c)
         of the Code) of which the Sponsoring Employer  is a member, which, with
         the prior approval of the Sponsoring Employer and subject to such terms
         and conditions as may be imposed by such  Sponsoring Employer  and  the
         Trustee, shall  adopt  this Plan  in  accordance  with  the  provisions
         of Section 13.8  and  the  Trust Agreement.  Such entity shall continue
         to be a  Participating  Affiliate   until   such  entity terminates its
         participation in the Plan in accordance with Section 13.8.

1.43     Plan  means  the  Savings  Bank of the Finger Lakes, FSB 401(k) Savings
         Plan, as herein amended and restated and as it may be amended from time
         to time.

1.44     Plan Administrator means the person or persons who have been designated
         as  such  by  the Employer in accordance with the provisions of Section
         9.4.

1.45     Plan Year means the calendar year.

1.46     Postponed  Retirement  Date means the first day of the month coincident
         with or next following a  Participant's date of actual retirement which
         occurs after his Normal Retirement Date.

1.47     Prior Plan means the Savings Bank of the Finger Lakes, FSB 401(k)  Plan
         as in  effect on the date  immediately  preceding the Restatement Date.

1.48     Qualified  Nonelective  Contributions  means  contributions, other than
         Discretionary  Employer  Contributions, made by the Employer, which (a)
         Participants may not elect to  receive  in  cash in lieu of their being
         contributed   to  the  Plan;   (b)  are  one   hundred  percent  (100%)
         nonforfeitable when made; and (c) are not distributable under the terms
         of the Plan to Participants or their Beneficiaries until the earliest
         of:

          (i)  the  Participant's  death,  Disability or separation from service
               for other reasons;

          (ii) the  Participant's  attainment  of age  fifty-nine  and  one-half
               (59-1/2); or

          (iii) termination of the Plan.

          Special   Contributions  defined  under  Section  1.53  are  Qualified
          Nonelective Contributions.

1.49     Restatement Date means December 1, 1999.

                                     8
<page>
1.50     Retirement Date means the Participant's  Normal  Retirement Date, Early
         Retirement Date or Postponed  Retirement Date, whichever is applicable.

1.51     Rollover  Contribution  means  (a) a contribution  to the Plan of money
         received by an Employee  from a qualified plan or (b) a contribution to
         the Plan of money  transferred  directly from another qualified plan on
         behalf of the Employee,  which  the Code permits to be rolled over into
         the Plan.

1.52     Rollover  Contribution  Account  means the separate, individual account
         established   on    behalf   of  an  Employee  to  which  his  Rollover
         Contributions are credited together  with all earnings and appreciation
         thereon, and against which are charged any withdrawals, loans and other
         distributions  made  from such account  and any losses, depreciation or
         expenses allocable to amounts credited to such account.

1.53     Special  Contributions  means  the  contributions  made by the Employer
         pursuant   to   Section   3.5.   Special   Contributions  are Qualified
         Nonelective Contributions as defined under Section 1.48.

1.54     Sponsoring  Employer  means Savings Bank of  the  Finger Lakes, FSB, or
         anysuccessor  organization  which shall continue to maintain the Plan
         set forth herein.

1.55     Spouse  means  a  person  to  whom the Employee was legally married and
         which  marriage  had  not  been dissolved by formal divorce proceedings
         that had been completed prior to the date on which payments to the
         Employee are scheduled to commence.

1.56     Termination of Service means the date on which an Employee's service is
         terminated by reason  of  his resignation, retirement, discharge, death
         or Disability.

          Service in the Armed Forces of the United  States of America shall not
          constitute a  Termination  of Service but shall be  considered to be a
          period of employment  by the Employer  provided that (i) such military
          service  is  caused  by war or  other  emergency  or the  Employee  is
          required  to serve  under the laws of  conscription  in time of peace,
          (ii) the Employee  returns to employment  with the Employer within six
          (6) months  following  discharge from such military  service and (iii)
          such  Employee  is  reemployed  by the  Employer  at a time  when  the
          Employee  had a  right  to  reemployment  at his  former  position  or
          substantially similar position upon separation from such military duty
          in accordance with seniority rights as protected under the laws of the
          United States of America. Notwithstanding any provision of the Plan to
          the contrary, effective December 12, 1994, contributions, benefits and
          calculation of Years of Eligibility  Service with respect to qualified
          military service will be provided in accordance with Section 414(u) of
          the Code.

          A leave of absence  granted to an Employee by the  Employer  shall not
          constitute a  Termination  of Service  provided  that the  Participant
          returns to the active service of the Employer at the expiration of any
          such period for which leave has been granted.

                                     9
<page>
1.57     Trust Agreement  means the agreement or agreements between the Employer
         and any Trustee  pursuant  to  which  the  Trust  Fund shall be held in
         trust.

1.58     Trust Fund  means  the  Plan  assets  held in accordance with the Trust
         Agreement.

1.59     Trustee  means  the  RSGroup  Trust  Company,  Portland  Maine, or  any
         successor trustee of the Plan.

1.60     Units  means  the  units  of  measure  of  an  Employee's proportionate
         undivided  beneficial  interest  in  one  or  more  of  the  Investment
         Accounts, valued as of the close of business.

1.61     Valuation Date means each business day.

1.62     Vesting Computation Period means a Plan Year.

1.63     Year  of  Eligibility  Service  shall  mean  an Eligibility Computation
         Period  during  which  the  Employee  completes  at  least one thousand
         (1,000) Hours of Service.

1.64     Year of  Service  means a Vesting  Computation  Period during which the
         Employee completes at least one thousand (1,000) Hours of Service.

                                       10

<PAGE>

                                  Article II --

                          Eligibility and Participation

2.1      Eligibility

          (a)  Every   Employee  who  was  a  Participant   in  the  Prior  Plan
               immediately  prior to the Restatement Date shall continue to be a
               Participant on the Restatement Date.

          (b)  Every other  Employee who is not excluded under the provisions of
               Section 2.2,  shall become an Eligible  Employee upon  satisfying
               each of the following conditions:

               (i)  completion of one (1) Year of Eligibility Service; and

               (ii) attainment of age twenty-one (21).

          (c)  For purposes of determining  (i) if an Employee  completed a Year
               of  Eligibility  Service  and (ii) Years of  Eligibility  Service
               pursuant to Section 2.5,  employment with an Affiliated  Employer
               shall be deemed employment with the Employer.

          (d)  An Employee who  otherwise  satisfies  the  requirements  of this
               Section 2.1 and who is no longer excluded under the provisions of
               Section 2.2 shall immediately become an Eligible Employee.

2.2      Ineligible Employees

     The following  classes of Employees are  ineligible to  participate  in the
Plan:

          (a)  Leased Employees;

          (b)  Employees  in  a  unit  of  Employees  covered  by  a  collective
               bargaining agreement with the Employer pursuant to which employee
               benefits  were the  subject  of good faith  bargaining  and which
               agreement does not expressly  provide that Employees of such unit
               be covered under the Plan; and

          (c)  Employees  who are  nonresident  aliens and who receive no earned
               income from the Employer  which  constitutes  income from sources
               within the United States of America.

2.3      Participation

          Participation in the Plan is voluntary with respect to an election for
          Before-Tax  Contributions.  An  Eligible  Employee  may  elect to make
          Before-Tax  Contributions  in  accordance  with Section 3.1, as of the
          first  day  of  any  calendar  month  following  satisfaction  of  the

                                     11
<page>
          eligibility  requirements  set forth in Section 2.1. In  addition,  an
          Eligible  Employee  will  automatically  participate  in the Plan upon
          satisfaction of the eligibility requirements set forth in Section 2.1,
          with  respect  to  eligibility  for  (a)  Special   Contributions   in
          accordance   with   Section   3.4   or  (b)   Discretionary   Employer
          Contributions in accordance with Section 3.5.

          An  election  for  Before-Tax  Contributions  shall  be  evidenced  by
          completing  and filing the form  prescribed  by the Committee not less
          than ten (10) days  prior to the date  participation  is to  commence.
          Such  form  shall  include,  but not be  limited  to,  a  Compensation
          Reduction Agreement,  a designation of Beneficiary,  and an investment
          direction as described in Section 6.1. By  completing  and filing such
          form,  the  Eligible  Employee  authorizes  the  Employer  to make the
          applicable  payroll  deductions from  Compensation,  commencing on the
          first  applicable   payday  coincident  with  or  next  following  the
          effective date of the Eligible Employee's election to participate.  In
          the  case  of  Special   Contributions   or   Discretionary   Employer
          Contributions,  a Participant  shall complete a form prescribed by the
          Committee,  designating a Beneficiary  and an investment  direction as
          described in Section 6.1.

2.4      Termination of Participation

          Participation in the Plan shall terminate on the earlier of the date a
          Participant  dies or the entire  vested  interest  in the Net Value of
          such Participant's Accounts has been distributed.

2.5      Eligibility upon Reemployment

          If an Employee  incurs a One Year Break in Service prior to satisfying
          the eligibility requirements of Section 2.1, service prior to such One
          Year Break in Service  shall be  disregarded  and such  Employee  must
          satisfy the eligibility requirements of Section 2.1 as a new Employee.

          If an Employee incurs a One Year Break in Service after satisfying the
          eligibility requirements of Section 2.1 and:

          (a)  if such  Employee  is not  vested in any  Discretionary  Employer
               Contributions,  incurs a One  Year  Break in  Service  and  again
               performs an Hour of Service,  the Employee  shall receive  credit
               for Hours of Service prior to a One Year Break in Service only if
               the number of consecutive One Year Breaks in Service is less than
               the greater of: (i) five (5) years or (ii) the  aggregate  number
               of such Employee's  Years of Eligibility  Service credited before
               his One Year Break in Service. If such former Employee's Years of
               Eligibility  Service  prior to his One Year Break in Service  are
               recredited  under this Section 2.5, such former Employee shall be
               eligible to participate  immediately upon reemployment,  provided
               such  Employee  is not  excluded  from  participating  under  the
               provisions  of Section  2.2. If such former  Employee's  Years of
               Eligibility  Service  prior to his One Year Break in Service  are

                                     12
<page>
               not recredited under this Section 2.5, such Employee must satisfy
               the eligibility requirements of Section 2.1 as a new Employee;

          (b)  if  such  Employee  is  vested  in  any  Discretionary   Employer
               Contributions,  incurs a One  Year  Break in  Service  and  again
               performs an Hour of Service,  the Employee  shall receive  credit
               for Years of  Eligibility  Service prior to his One Year Break in
               Service  and  shall  be  eligible  to  participate  in  the  Plan
               immediately  upon  reemployment,  provided  such  Employee is not
               excluded from participating under the provisions of Section 2.2.

                                     13
<page>

                                 Article III --

                 Contributions and Limitations on Contributions

3.1      Before-Tax Contributions

          The  Employer  shall make  Before-Tax  Contributions  for each payroll
          period  in an  amount  equal to the  amount  by which a  Participant's
          Compensation  has been  reduced  with respect to such period under his
          Compensation Reduction Agreement. Subject to the limitations set forth
          in Sections  3.2 and 3.9, the amount of  reduction  authorized  by the
          Eligible Employee shall be whole percentages  and/or fractions thereof
          of  Compensation  and  shall  not be less  than one  percent  (1%) nor
          greater than fifteen percent (15%). The Before-Tax  Contributions made
          on behalf of a  Participant  shall be credited  to such  Participant's
          Before-Tax  Contribution  Account and shall be invested in  accordance
          with Article VI of the Plan.

3.2      Limitation on Before-Tax Contributions

          (a)  The  percentage of Before-Tax  Contributions  made on behalf of a
               Participant who is a Highly Compensated Employee shall be limited
               so that the Average Actual  Deferral  Percentage for the group of
               such  Highly  Compensated  Employees  for the Plan  Year does not
               exceed the greater of:

               (i)  the  Average  Actual  Deferral  Percentage  for the group of
                    Eligible Employees who were Non-Highly Compensated Employees
                    for the preceding Plan Year multiplied by 1.25; or

               (ii) the  Average  Actual  Deferral  Percentage  for the group of
                    Eligible Employees who were Non-Highly Compensated Employees
                    for the preceding Plan Year multiplied by two (2), provided,
                    that  the   difference  in  the  Average   Actual   Deferral
                    Percentage  for eligible  Highly  Compensated  Employees and
                    eligible  Non-Highly  Compensated  Employees does not exceed
                    two percent (2%). Use of this  alternative  limitation shall
                    be  subject  to the  provisions  of Income  Tax  Regulations
                    issued under Code Section  401(m)(9)  regarding the multiple
                    use of the  alternative  limitation  set  forth in  Sections
                    401(k) and 401(m) of the Code.

               The  preceding  Plan Year testing  method can only be modified if
               the Plan meets the  requirements  for changing to preceding  Plan
               Year  testing as set forth in  Internal  Revenue  Service  Notice
               98-1, or any  successor  future  guidance  issued by the Internal
               Revenue Service.

               The  above  subsections  (i) and  (ii)  shall be  subject  to the
               distribution provisions of the last paragraph of Section 3.9(f).
                                     14
<page>

               If the  Average  Actual  Deferral  Percentage  for the  group  of
               eligible Highly Compensated Employees exceeds the limitations set
               forth in the preceding paragraph, the amount of excess Before-Tax
               Contributions  for  a  Highly   Compensated   Employee  shall  be
               determined by  "leveling"  (as  hereafter  defined),  the highest
               Before-Tax  Contributions  made by Highly  Compensated  Employees
               until the Average Actual  Deferral  Percentage test for the group
               of  eligible  Highly  Compensated  Employees  complies  with such
               limitations.  For purposes of this  paragraph,  "leveling"  means
               reducing the Before-Tax  Contribution  of the Highly  Compensated
               Employee with the highest Before-Tax  Contribution  amount to the
               extent required to:

                    (A)  enable   the   Average   Actual   Deferral   Percentage
                         limitations to be met, or

                    (B)  cause such  Highly  Compensated  Employee's  Before-Tax
                         Contribution  amount to equal the dollar  amount of the
                         Before-Tax   Contribution  of  the  Highly  Compensated
                         Employee with the next highest Before-Tax  Contribution
                         amount  by  distribution  of  such  excess   Before-Tax
                         Contributions,   as  described  below,  to  the  Highly
                         Compensated  Employee  whose  Before-Tax  Contributions
                         equal the highest dollar amount,

               and  repeating  such process  until the Average  Actual  Deferral
               Percentage for the group of eligible Highly Compensated Employees
               complies with the Average Actual Deferral Percentage limitations.

               If  Before-Tax  Contributions  made on  behalf  of a  Participant
               during any Plan Year exceed the maximum  amount  applicable  to a
               Participant as set forth above, any such contributions, including
               any earnings  thereon as determined  under Section 3.6,  shall be
               characterized  as  Compensation  payable to the  Participant  and
               shall be paid to the Participant from his Before-Tax Contribution
               Account no later than two and one-half  (2-1/2)  months after the
               close of such Plan Year.

               In the event that the Plan satisfies the  requirements of Section
               401(k),  401(a)(4) or 410(b) of the Code only if aggregated  with
               one or more other  plans,  or if one or more other plans  satisfy
               the  requirements of Section  401(k),  401(a)(4) or 410(b) of the
               Code only if  aggregated  with the Plan,  then this  Section  3.2
               shall be applied by determining the Actual  Deferral  Percentages
               of Eligible Employees as if all such plans were a single plan.

               If any Highly Compensated Employee is a Participant in two (2) or
               more cash or deferred arrangements of the Employer,  for purposes
               of determining  the Actual  Deferral  Percentage  with respect to
               such   Highly   Compensated   Employee,   all  cash  or  deferred
               arrangements  shall  be  treated  as one  (1)  cash  or  deferred
               arrangement.

          (b)  Before-Tax  Contributions under this Plan, and elective deferrals
               (as  defined  under  Section  402(g) of the Code) under all other
               plans,  contracts or  arrangements of the Employer made on behalf
               of any Participant during the 1999 Plan Year shall not exceed ten

                                     15
<page>
               thousand  dollars  ($10,000).  During  the 2000 Plan  Year,  such
               amount shall be increased  to ten thousand  five hundred  dollars
               ($10,500).  For Plan Years  commencing  after  December 31, 2000,
               Before-Tax   Contributions  under  this  Plan  and  any  elective
               deferrals (as defined under Section 402(g) of the Code) under all
               other  plans,  contracts or  arrangements  of the Employer may be
               further  adjusted as  prescribed by the Secretary of the Treasury
               under Section  415(d) of the Code.  This Section  3.2(b) shall be
               subject to the  distribution  provisions of the last paragraph of
               Section 3.9(f).

          (c)  If  Before-Tax  Contributions  made on  behalf  of a  Participant
               during any Plan Year  exceed the dollar  limitation  set forth in
               subsection  (b),  such  contributions,   including  any  earnings
               thereon as determined  under Section 3.6, shall be  characterized
               as  Compensation  payable to the Participant and shall be paid to
               the Participant from his Before-Tax Contribution Account no later
               than April 15th of the calendar year  following the close of such
               Plan Year.

          (d)  Subject to the  requirements of Sections 401(a) and 401(k) of the
               Code,  the  maximum  amounts  under  subsections  (a) and (b) may
               differ in amount or percentage as between individual Participants
               or  classes  of  Participants,  and  any  Compensation  Reduction
               Agreement may be terminated,  amended,  or suspended  without the
               consent  of any  such  Participant  or  Participants  in order to
               comply with the provisions of such subsections (a) and (b).

3.3      Changes in Before-Tax Contributions

          Unless (a) an election is made to the  contrary,  or (b) a Participant
          receives a Hardship distribution pursuant to Section 7.3(c)(iii),  the
          percentage  of Before-Tax  Contributions  made under Section 3.1 shall
          continue  in  effect  so long as the  Participant  has a  Compensation
          Reduction  Agreement in force.  A Participant  may, by completing  the
          applicable  form,  prospectively  increase  or  decrease  the  rate of
          Before-Tax  Contributions made on his behalf to any of the percentages
          authorized  under  Section  3.1 or  suspend  Before-Tax  Contributions
          without  withdrawing from participation in the Plan. Such form must be
          filed at least  ten (10) days  prior to the  first day of the  payroll
          period  with  respect to which such change is to become  effective.  A
          Participant  who  has  Before-Tax  Contributions  made  on his  behalf
          suspended may resume such  contributions  by completing and filing the
          applicable  form. Not more often than once during any calendar quarter
          may an election be made which would prospectively increase,  decrease,
          suspend  or  resume  Before-Tax  Contributions  made  on  behalf  of a
          Participant.  A Participant may terminate his Before-Tax Contributions
          at any time.

          Notwithstanding  the foregoing,  a Participant who receives a Hardship
          distribution   pursuant   to  Section   7.3(c)(iii)   shall  have  his
          Compensation   Reduction  Agreement  deemed  null  and  void  and  all
          Before-Tax  Contributions  made on behalf of such Participant shall be
          suspended  until the later to occur of: (i) twelve (12)  months  after
          receipt of the Hardship distribution and (ii) the first payroll period
          which occurs ten (10) days  following the  completion  and filing of a
          Compensation   Reduction  Agreement   authorizing  the  resumption  of

                                     16
<page>

          Before-Tax  Contributions  to  be  made  on  his  behalf.   Before-Tax
          Contributions  following  a Hardship  distribution  made  pursuant  to
          Section 7.3(c)(iii) shall be subject to the following limitations:

          (A)  Before-Tax  Contributions  for  the  Participant's  taxable  year
               immediately   following   the  taxable   year  of  the   Hardship
               distribution  shall not exceed the applicable limit under Section
               402(g) of the Code for such next  taxable year less the amount of
               such Participant's  Before-Tax Contributions for the taxable year
               of the Hardship distribution, and

          (B)  the  percentage of Before-Tax  Contributions  for the twelve (12)
               month period following the mandatory twelve (12) month suspension
               period   shall  not   exceed   the   percentage   of   Before-Tax
               Contributions  made on behalf of the  Participant as set forth in
               the last Compensation  Reduction Agreement in effect prior to the
               Hardship distribution.

          Before-Tax  Contributions  based on Compensation for the period during
          which such  contributions  had been  suspended or decreased may not be
          made up at a later date.

3.4      Special Contributions

          In  addition  to any other  contributions,  the  Employer  may, in its
          discretion,  make  Special  Contributions  for  a  Plan  Year  to  the
          Before-Tax  Contribution  Account  of  any  Eligible  Employees.  Such
          Special Contributions may be limited to the amount necessary to insure
          that the Plan complies with the  requirements of Section 401(k) of the
          Code. The Special  Contributions made on behalf of a Participant shall
          be invested in accordance with Article VI of the Plan.

          The Employer may provide  that Special  Contributions  be made only on
          behalf  of each  Eligible  Employee  who is a  Non-Highly  Compensated
          Employee on the last day of the Plan Year. Such Special  Contributions
          shall be  allocated in  proportion  to each such  Eligible  Employee's
          Compensation for the Plan Year.

3.5      Discretionary Employer Contributions

          (a)  Subject to the  limitations  of Section 3.9, the Employer may, in
               its sole and absolute  discretion,  make  Discretionary  Employer
               Contributions to the Plan for a Plan Year. Discretionary Employer
               Contributions  shall be in an amount  determined by the Board and
               will be allocated to each Eligible Employee hereunder,  who is in
               the employ of the  Employer on the last day of the Plan Year,  in
               the same  proportion that such Eligible  Employee's  Compensation
               for the Plan Year bears to the total Compensation of all Eligible
               Employees hereunder.

          (b)  The  Discretionary  Employer  Contributions   allocated  to  each
               Participant shall be credited to such Participant's Discretionary
               Employer Contribution Account and shall be invested in accordance
               with   Article  VI  of  the  Plan.   Any  and  all   withdrawals,
               distributions  or  payments  from a  Participant's  Discretionary

                                     17
<page>
               Employer  Contribution  Account shall be made in accordance  with
               Article  VII,  or  Article   VIII  of  the  Plan,   whichever  is
               applicable.

3.6      Interest on Excess Contributions

          In the event Before-Tax  Contributions made on behalf of a Participant
          during a Plan Year exceed the maximum allowable amount as described in
          Section  3.2(a),  3.2(b)  ("Excess  Contributions")  and  such  Excess
          Contributions  and  earnings  thereon are  payable to the  Participant
          under the applicable  provisions of the Plan,  earnings on such Excess
          Contributions for the period commencing with the first day of the Plan
          Year in which the Excess  Contributions  were made and ending with the
          date of  payment to the  Participant  ("Allocation  Period")  shall be
          determined in accordance with the provisions of this Section 3.6.

          The  earnings  allocable  to excess  Before-Tax  Contributions  for an
          Allocation  Period shall be equal to the sum of (a) plus (b) where (a)
          and (b) are determined as follows:

          (a)  The  amount  of  earnings   attributable  to  the   Participant's
               Before-Tax Contribution Account for the Plan Year multiplied by a
               fraction,  the  numerator  of  which  is  the  excess  Before-Tax
               Contributions  and Special  Contributions  for the Plan Year, and
               the  denominator  of which is the sum of (i) the Net Value of the
               Participant's  Before-Tax Contribution Account as of the last day
               of the immediately preceding Plan Year and (ii) the contributions
               (including  the  Excess  Contributions)  made  to the  Before-Tax
               Contribution Account on the Participant's behalf during such Plan
               Year.

          (b)  The  amount  of  earnings   attributable  to  the   Participant's
               Before-Tax  Contribution  Account for the period  commencing with
               the first day of the Plan  Year in which  payment  is made to the
               Participant   and  ending   with  the  date  of  payment  to  the
               Participant  multiplied by a fraction,  the numerator of which is
               the excess  Before-Tax  Contributions  and Special  Contributions
               made to the Before-Tax  Contribution Account on the Participant's
               behalf during the Plan Year  immediately  preceding the Plan Year
               in  which  the  payment  is  made  to the  Participant,  and  the
               denominator  of  which  is the  Net  Value  of the  Participant's
               Before-Tax Contribution Account on the first day of the Plan Year
               in which the payment is made to the Participant.

3.7      Payment of Contributions

          As soon as possible after each payroll period, but not less often than
          once  a  month,  the  Employer  shall  deliver  to  the  Trustee,  the
          Before-Tax  Contributions required to be made to the Trust Fund during
          such  payroll  period  under  the  applicable  Compensation  Reduction
          Agreements.

          Special Contributions and Discretionary  Employer  Contributions shall
          be forwarded by the Employer to the Trustee no later than the time for
          filing the Employer's  federal income tax return,  plus any extensions
          thereon, for the Plan Year to which they are attributable.
                                     18
<page>

3.8      Rollover Contributions

          Subject  to such  terms  and  conditions  as may from  time to time be
          established by the Committee and the Trustee, an Employee,  whether or
          not a Participant, may contribute a Rollover Contribution to the Trust
          Fund;  provided,  however,  that such Employee  shall submit a written
          certification,  in form and substance  satisfactory  to the Committee,
          that  the  contribution  qualifies  as a  Rollover  Contribution.  The
          Committee  shall be entitled to rely on such  certification  and shall
          accept  the   contribution   on  behalf  of  the   Trustee.   Rollover
          Contributions shall be credited to an Employee's Rollover Contribution
          Account  and shall be invested in  accordance  with  Article VI of the
          Plan.

3.9      Section 415 Limits on Contributions

          (a)  For purposes of this Section 3.9, the following terms and phrases
               shall have the meanings hereafter ascribed to them:

               (i)  "Annual  Additions"  shall  mean  the  sum of the  following
                    amounts  credited  to  a  Participant's   Accounts  for  the
                    Limitation  Year:  (A)  Employer  contributions,   including
                    Before-Tax    Contributions   and   Discretionary   Employer
                    Contributions;  (B) any other  Employee  contributions;  (C)
                    forfeitures;  and (D)(1) amounts  allocated to an individual
                    medical  account,  as defined in  Section  415(l)(2)  of the
                    Code,  which is part of a pension or annuity plan maintained
                    by the Employer and (2) amounts derived from  contributions,
                    paid or accrued,  which are attributable to  post-retirement
                    medical benefits  allocated to the separate account of a key
                    employee,  as  defined in  Section  419A(d)(3)  of the Code,
                    under a welfare benefit fund as defined in Section 419(e) of
                    the Code,  maintained  by the Employer are treated as Annual
                    Additions.    Annual   Additions   include   the   following
                    contributions  credited to a Participant's  Accounts for the
                    Limitation  Year,  regardless of whether such  contributions
                    have been distributed to the Participant:

                    (I)  Before-Tax  Contributions  which exceed the limitations
                         set forth in Section 3.2(a); and

                    (II) Before-Tax  Contributions  made on  behalf  of a Highly
                         Compensated  Employee which exceed the  limitations set
                         forth in Section 3.2(b); and

               (ii) "Current Accrued Benefit" shall mean a Participant's  annual
                    accrued benefit under a defined benefit plan,  determined in
                    accordance  with the  meaning  of Section  415(b)(2)  of the
                    Code, as if the Participant had separated from service as of
                    the  close  of the last  Limitation  Year  beginning  before

                                     19
<page>
                    January   1,   1987.   In   determining   the  amount  of  a
                    Participant's  Current Accrued Benefit,  the following shall
                    be disregarded:

                    (A)  any change in the terms and  conditions  of the defined
                         benefit plan after May 5, 1986; and

                    (B)  any cost of living  adjustment  occurring  after May 5,
                         1986.

               (iii)"Defined Benefit Plan" and "Defined Contribution Plan" shall
                    have the meanings set forth in Section 415(k) of the Code.

               (iv) "Defined  Benefit Plan Fraction" for a Limitation Year shall
                    mean a fraction, (A) the numerator of which is the aggregate
                    projected  annual benefit  (determined as of the last day of
                    the Limitation  Year) of the  Participant  under all defined
                    benefit plans (whether or not terminated)  maintained by the
                    Employer, and (B) the denominator of which is the lesser of:
                    (I) the  product  of 1.25 (or such  adjustment  as  required
                    under  Section  12.4) and the  dollar  limitation  in effect
                    under  Section   415(b)(1)(A)  of  the  Code,   adjusted  as
                    prescribed  by the  Secretary of the Treasury  under Section
                    415(d)  of the  Code,  or (II)  the  product  of 1.4 and the
                    amount  which may be taken into account with respect to such
                    Participant under Section  415(b)(1)(B) of the Code for such
                    Limitation   Year.   Notwithstanding   the  above,   if  the
                    Participant was a participant in one or more defined benefit
                    plans of the  Employer  in  existence  on May 6,  1986,  the
                    dollar  limitation of the  denominator of this fraction will
                    not be less than one hundred  twenty-five  percent (125%) of
                    the Participant's Current Accrued Benefit.

               (v)  "Defined  Contribution  Plan Fraction" for a Limitation Year
                    shall mean a fraction, (A) the numerator of which is the sum
                    of the  Participant's  Annual  Additions  under all  defined
                    contribution plans (whether or not terminated) maintained by
                    the Employer  for the current year and all prior  Limitation
                    Years  (including  annual  additions   attributable  to  the
                    Participant's  nondeductible  employee  contributions to all
                    defined benefit plans (whether or not terminated) maintained
                    by the  Employer),  and (B) the  denominator of which is the
                    sum of the maximum  aggregate  amounts for the current  year
                    and all prior Limitation Years with the Employer (regardless
                    of whether a defined contribution plan was maintained by the
                    Employer). "Maximum aggregate amounts" shall mean the lesser
                    of (I) the product of 1.25 (or such  adjustment  as required
                    under  Section  12.4) and the  dollar  limitation  in effect
                    under  Section   415(c)(1)(A)  of  the  Code,   adjusted  as
                    prescribed  by the  Secretary of the Treasury  under Section
                    415(d)  of the  Code,  or (II)  the  product  of 1.4 and the
                    amount  that  may  be  taken  into  account   under  Section
                    415(c)(1)(B)  of  the  Code;  provided,  however,  that  the
                    Committee  may  elect,  on a uniform  and  nondiscriminatory
                    basis,  to apply  the  special  transition  rule of  Section
                    415(e)(7) of the Code applicable to Limitation  Years ending

                                     20
<page>

                    before January 1, 1983 in determining the denominator of the
                    Defined Contribution Plan Fraction.

                    If the Employee was a Participant as of the end of the first
                    day of the first  Limitation  Year beginning  after December
                    31,  1986,  in  one  or  more  defined   contribution  plans
                    maintained by the Employer which were in existence on May 6,
                    1986, the numerator of this fraction will be adjusted if the
                    sum of this fraction and the defined benefit  fraction would
                    otherwise exceed 1.0 under the terms of this Plan. Under the
                    adjustment, an amount equal to the product of (1) the excess
                    of  the  sum  of  the  fractions  over  1.0  times  (2)  the
                    denominator of this fraction, will be permanently subtracted
                    from the  numerator  of this  fraction.  The  adjustment  is
                    calculated  using the fractions as they would be computed as
                    of the end of the  last  Limitation  Year  beginning  before
                    January 1, 1987, and  disregarding  any changes in the terms
                    and conditions of the Plan made after May 5, 1986, but using
                    the  Section  415   limitation   applicable   to  the  first
                    Limitation  Year  beginning on or after January 1, 1987. The
                    annual  addition for any Limitation  Year  beginning  before
                    January  1,  1987,  shall  not be  recomputed  to treat  all
                    Employee contributions as Annual Additions.

               (vi) "Limitation Year" shall mean the calendar year.

               (vii)"Section  415   Compensation"   shall  be  a   Participant's
                    remuneration as defined in Income Tax  Regulations  Sections
                    1.415-2(d)(2),  (3) and (6). For  purposes of this  Section,
                    Section 415  Compensation  shall  include  (A) any  elective
                    deferral (as defined in Section  402(g)(3) of the Code,  and
                    (B) any  amount  which is  contributed  or  deferred  by the
                    Employer at the  election of the  Employee  and which is not
                    includable  in the gross income of the Employee by reason of
                    Section 125 or 457 of the Code.

          (b)  For  purposes  of  applying  the  Section  415  limitations,  the
               Employer  and all members of a controlled  group of  corporations
               (as  defined  under  Section  414(b) of the Code as  modified  by
               Section 415(h) of the Code),  all commonly  controlled  trades or
               businesses  (as  defined  under  Section  414(c)  of the  Code as
               modified by Section 415(h) of the Code),  all affiliated  service
               groups (as defined under Section 414(m) of the Code) of which the
               Employer is a member, any leasing  organization (as defined under
               Section  414(n) of the  Code)  that  employs  any  person  who is
               considered an Employee  under Section  414(n) of the Code and any
               other group provided for under any and all Income Tax Regulations
               promulgated by the Secretary of the Treasury under Section 414(o)
               of the Code, shall be treated as a single employer.

          (c)  If  the  Employer  maintains  more  than  one  qualified  Defined
               Contribution Plan on behalf of its Employees, such plans shall be
               treated as one Defined Contribution Plan for purposes of applying
               the Section 415 limitations of the Code.

                                     21
<page>
          (d)  Notwithstanding  anything  contained in the Plan to the contrary,
               in  no  event  shall  the  Annual  Additions  to a  Participant's
               Accounts for a Limitation Year exceed the lesser of:

               (i)  thirty thousand  dollars  ($30,000) as adjusted in multiples
                    of five  thousand  dollars  ($5,000)  for  increases  in the
                    cost-of-living   as  prescribed  by  the  Secretary  of  the
                    Treasury under Section 415(d) of the Code; or

               (ii) twenty-five  percent (25%) of the Participant's  Section 415
                    Compensation  for such Limitation Year. For purposes of this
                    subsection  (d)(ii),  Section  415  Compensation  shall  not
                    include (A) any contribution for medical benefits within the
                    meaning of Section  419A(f)(2) of the Code after  separation
                    from  service,  which  is  otherwise  treated  as an  Annual
                    Addition,  and (B) any amount otherwise treated as an Annual
                    Addition under Section 415(1)(1) of the Code.

          (e)  If, as a result of the  allocation of  forfeitures,  a reasonable
               error  in  estimating  a  Participant's  annual  Compensation,  a
               reasonable error in determining the amount of elective  deferrals
               that may be made with respect to any Participant, or as otherwise
               permitted by the Internal Revenue  Service,  the Annual Additions
               to a  Participant's  Accounts  for a  Limitation  Year exceed the
               limitation   set  forth  in  subsection   (d)  above  during  the
               Limitation  Year,  any or all of the following  contributions  on
               behalf of such Participant shall be immediately  adjusted to that
               amount which will result in such Annual  Additions  not exceeding
               the limitation set forth in subsection (d):

               (i)  Discretionary Employer Contributions;

               (ii) Before-Tax Contributions; and

               (iii) Special Contributions.

          (f)  If  the  Annual  Additions  to a  Participant's  Accounts  for  a
               Limitation  Year exceed the  limitations  set forth in subsection
               (d) above at the end of a Limitation  Year,  such excess  amounts
               shall not be treated as Annual  Additions in such Limitation Year
               but shall instead be treated in accordance with the following:

               (i)  such excess  amounts shall be used to reduce the  Before-Tax
                    Contributions  Discretionary  Employer  Contributions and/or
                    Special   Contributions   to  be  made  on  behalf  of  such
                    Participant in the succeeding Limitation Year, provided that
                    such  Participant  is  an  Eligible   Employee  during  such
                    succeeding  Limitation  Year. If such  Participant is not an
                    Eligible  Employee  or  ceases  to be an  Eligible  Employee
                    during such succeeding Limitation Year, any remaining excess
                    amounts  from  the  preceding   Limitation   Year  shall  be
                    allocated  during such  succeeding  Limitation  Year to each
                    Participant  then actively  participating  in the Plan. Such

                                     22
<page>
                    allocation   shall  be  in  proportion  to  the   Before-Tax
                    Contributions made to date on his behalf for such Limitation
                    Year,  or the  prior  Limitation  Year  with  respect  to an
                    allocation as of the beginning of a Limitation Year,  before
                    any  other   contributions   are  made  in  such  succeeding
                    Limitation Year; or

                    (ii) such excess amounts may be reduced by the  distribution
                         of such Participant's  Before-Tax Contributions to such
                         Participant.

                    The  Employer  will,  at the end of the  Limitation  Year in
                    which such excess  amounts  were made,  choose the manner in
                    which  to  treat  such  excess  amounts  on  a  uniform  and
                    nondiscriminatory   basis   on   behalf   of  all   affected
                    Participants.  If such  excess  amounts  are  reduced by the
                    distribution  in  subsection   (ii),  the  amounts  of  such
                    distribution shall not be taken into account for purposes of
                    Sections   3.2(a)(i)  and  (ii),  or  in   determining   the
                    limitation in Section 3.2(b).

               (g)  If a  Participant  participates  in both (i) the Plan and/or
                    any  other  defined  contribution  plan  maintained  by  the
                    Employer  and  (ii)  any  defined   benefit  plan  or  plans
                    maintained  by  the   Employer,   the  sum  of  the  Defined
                    Contribution  Plan  Fraction  and the Defined  Benefit  Plan
                    Fraction  shall not exceed the sum of 1.0.  This  subsection
                    (g) shall not apply with respect to Plan Years  beginning on
                    or after January 1, 2000.

               (h)  If, for any Plan Year  commencing  prior to January 1, 2000,
                    the sum determined  under subsection (g) for any Participant
                    exceeds 1.0, the Defined  Contribution Plan Fraction of such
                    Participant as provided in the defined  contribution plan or
                    plans  maintained by the Employer  shall be reduced in order
                    that such sum shall not exceed 1.0.

                                       23
<PAGE>

                                  Article IV --

                             Vesting and Forfeitures

4.1      Vesting

          (a)  An Employee  shall always be fully vested in the Net Value of his
               Before-Tax  Contribution  Account,  and  the  Net  Value  of  his
               Rollover Contribution Account.

          (b)  A  Participant  shall become fully vested in the Net Value of his
               Discretionary  Employer  Contribution Account upon the earlier of
               such  Participant's (i) Normal Retirement Age or (ii) termination
               of  employment  by reason of death,  Disability  or reaching  his
               Retirement Date.

          (c)  A Participant who is not fully vested under  subsection (b) shall
               be  vested  in  the  Net  Value  of  his  Discretionary  Employer
               Contribution Account in accordance with the following schedule:

              Years of Service                                Vested Percentage

         Less than 2 years                                          0%
         2 years but less than 3 years                             20%
         3 years but less than 4 years                             40%
         4 years but less than 5 years                             60%
         5 years but less than 6 years                             80%
         6 years or more                                          100%

               For  purposes of  determining  a  Participant's  Years of Service
               under this subsection (c) and under Section 4.3,  employment with
               an  Affiliated  Employer  shall  be  deemed  employment  with the
               Employer.

               For purposes of determining a Participant's  vested percentage of
               the Net Value of his Discretionary Employer Contribution Account,
               all Years of Service shall be included.

          (d)  The vested Net Value of a  Participant's  Discretionary  Employer
               Contribution Account shall be determined as follows:

               (i)  the  Participant's   Discretionary   Employer   Contribution
                    Account shall first be increased to include (A) that portion
                    of such  Account  which  had been  previously  withdrawn  in
                    accordance with Sections 7.2 and 7.3 and (B) that portion of
                    such  Account  which had been  borrowed in  accordance  with
                    Article  VIII  and  is  outstanding  on  the  date  of  this
                    determination;

               (ii) the applicable  vested  percentage  determined in accordance
                    with subsection (c) shall then be applied to such Account as
                    determined in accordance with clause (i);

                                     24
<page>
               (iii)the amount  determined in accordance  with clause (ii) shall
                    then be reduced by (A) that  portion of such  Account  which
                    had been  previously  withdrawn in accordance  with Sections
                    7.2 and 7.3 and (B) that portion of such  Account  which had
                    been  borrowed  in  accordance  with  Article  VIII  and  is
                    outstanding on the date of this determination.

4.2      Forfeitures

          If a  Participant  who is not  fully  vested  in the Net  Value of his
          Discretionary  Contribution Account terminates  employment,  the Trust
          Fund Units  representing  the nonvested  portion of his Accounts shall
          constitute Forfeitures.  Forfeitures shall be treated as Discretionary
          Employer  Contributions  and shall be reallocated  in accordance  with
          Section 3.5 of the Plan.

          If a former  Participant  who is not fully  vested in the Net Value of
          his Accounts receives a distribution of his vested interest in the Net
          Value of his Accounts and is  subsequently  reemployed by the Employer
          prior to incurring five (5) consecutive One Year Breaks in Service, he
          shall have the Net Value of his Accounts as of the date he  previously
          terminated employment reinstated provided he repays the full amount of
          his  distribution  in cash or cash  equivalents  before the end of the
          five (5)  consecutive  One Year Breaks in Service  commencing with the
          date of distribution. The reinstated amount shall be unadjusted by any
          gains or losses occurring subsequent to the Participant's  termination
          of  employment  and  prior  to  repayment  of such  distribution.  Any
          forfeited amounts required to be reinstated hereunder shall be made by
          an additional Employer contribution for such Plan Year. If such former
          Participant does not repay the full amount of his distribution in cash
          or cash  equivalents  before the end of the five (5)  consecutive  One
          Year Breaks in Service  commencing with the date of distribution,  the
          Net  Value of his  Accounts  as of the date he  previously  terminated
          employment shall not be reinstated.

          If a former  Participant  who is not fully  vested in the Net Value of
          his  Accounts  elects  to defer  distribution  of his  vested  account
          interest or elects to receive installment payments pursuant to Section
          7.5(d),  the nonvested  portion of such former  Participant's  Account
          shall be  forfeited  as of the  date of his  Termination  of  Service;
          provided,  however,  that if such  former  Participant  is  reemployed
          before incurring five (5) consecutive One Year Breaks in Service,  the
          nonvested portion of his Accounts shall be reinstated in its entirety,
          unadjusted  by  any  gains  or  losses  occurring  subsequent  to  the
          distribution.

4.3      Vesting upon Reemployment

          (a)  For  purposes of this  Section  4.3,  "Year of Service"  means an
               Employee's Year of Service  determined in accordance with Section
               4.1(c).

          (b)  For the purpose of determining a Participant's vested interest in
               the Net Value of his Discretionary Employer Contribution Account:

                                     25
<page>

               (i)  if an Employee is not vested in any  Discretionary  Employer
                    Contributions,  incurs a One Year Break in Service and again
                    performs an Hour of Service,  such  Employee  shall  receive
                    credit for his Years of Service  prior to his One Year Break
                    in Service only if the number of consecutive One Year Breaks
                    in Service is less than the  greater  of: (A) five (5) years
                    or (B) the aggregate number of his Years of Service credited
                    before his One Year Break in Service.

               (ii) if a Participant  is partially  vested in any  Discretionary
                    Employer  Contributions,  incurs a One Year Break in Service
                    and again  performs  an Hour of  Service,  such  Participant
                    shall  receive  credit for his Years of Service prior to his
                    One Year Break in  Service;  provided,  however,  that after
                    five (5)  consecutive  One Year Breaks in Service,  a former
                    Participant's  vested  interest  in  the  Net  Value  of the
                    Discretionary  Employer Contribution Account attributable to
                    Years of  Service  prior to his One  Year  Break in  Service
                    shall not be  increased  as a result of his Years of Service
                    following his reemployment date.

               (iii)if a  Participant  is  fully  vested  in  any  Discretionary
                    Employer  Contributions,  incurs a One Year Break in Service
                    and again  performs  an Hour of  Service,  such  Participant
                    shall  receive  credit for all his Years of Service prior to
                    his One Year Break in Service.

                                       26

<PAGE>

                                  Article V --

                       Trust Fund and Investment Accounts

5.1      Trust Fund

          The  Employer has adopted the Trust  Agreement as the funding  vehicle
          with respect to the Investment Accounts.

          All contributions forwarded by the Employer to the Trustee pursuant to
          the  Trust  Agreement  shall  be held by them in  trust  and  shall be
          invested as provided  in Article VI and in  accordance  with the terms
          and provisions of the Trust Agreement.

          All  assets of the Plan  shall be held for the  exclusive  benefit  of
          Participants,  Beneficiaries or other persons entitled to benefits. No
          part of the corpus or income of the Trust  Fund shall be used for,  or
          diverted  to,  purposes  other  than  for  the  exclusive  benefit  of
          Participants,  Beneficiaries or other persons entitled to benefits and
          for defraying reasonable administrative expenses of the Plan and Trust
          Fund. No person shall have any interest in or right to any part of the
          earnings  of the Trust  Fund,  or any rights in, to or under the Trust
          Fund  or any  part  of its  assets,  except  to the  extent  expressly
          provided in the Plan.

          The Trustee  shall invest and reinvest the Trust Fund,  and the income
          therefrom,  without  distinction  between  principal  and  income,  in
          accordance with the terms and provisions of the Trust  Agreement.  The
          Trustee may maintain such part of the Trust Fund in cash uninvested as
          they shall deem necessary or desirable. The Trustee shall be the owner
          of and have  title to all the  assets of the Trust Fund and shall have
          full  power to manage  the  same,  except  as  otherwise  specifically
          provided in the Trust Agreement.

5.2      Interim Investments

          The  Trustee  may  temporarily   invest  any  amounts  designated  for
          investment  in any of  the  Investment  Accounts  of  the  Trust  Fund
          identified herein in an Investment Account which provides for a stable
          investment  return,  as determined by the Trustee and retain the value
          of such contributions therein pending the allocation of such values to
          the Investment Accounts designated for investment.

5.3      Account Values

          The Net  Value of the  Accounts  of an  Employee  means the sum of the
          total Net Value of each Account  maintained  on behalf of the Employee
          in the Trust Fund as determined as of the  Valuation  Date  coincident
          with or next following the event requiring the  determination  of such
          Net Value.  The assets of any Account  shall consist of the Trust Fund
          Units  credited to such Account.  The Trust Fund Units shall be valued
          from  time  to time by the  Trustee,  in  accordance  with  the  Trust
          Agreement,  but not less  often  than  monthly.  On the  basis of such
          valuations,  each Employee's Accounts shall be adjusted to reflect the

                                     27
<page>
          effect  of income  collected  and  accrued,  realized  and  unrealized
          profits and losses,  expenses  and all other  transactions  during the
          period ending on the applicable Valuation Date.

          Upon  receipt by the  Trustee of  Before-Tax  Contributions,  and,  if
          applicable,    Discretionary    Employer    Contributions,    Rollover
          Contributions and Special  Contributions,  such contributions shall be
          applied to  purchase  Trust Fund  Units for such  Employee's  Account,
          using the value of such Trust  Fund Units as of the close of  business
          on the date received. Whenever a distribution or withdrawal is made to
          a Participant,  Beneficiary or other person entitled to benefits,  the
          appropriate number of Trust Fund Units credited to such Employee shall
          be reduced  accordingly and each such distribution or withdrawal shall
          be charged against the Trust Fund Units of the Investment  Accounts of
          such Employee pro rata according to their respective values.

          For the purposes of this Section 5.3, fractions of Trust Fund Units as
          well as whole Trust Fund Units may be  purchased  or redeemed  for the
          Account of an Employee.

5.4      Voting Rights

          Each  Participant with units in the Employer Stock Fund shall have the
          right to participate  confidentially  in the exercise of voting rights
          appurtenant to shares held in such Investment  Account,  provided that
          such person had units in such Account as of the most recent  Valuation
          Date coincident with or preceding the applicable record date for which
          records  are  available.  Such  participation  shall  be  achieved  by
          completing  and filing with the inspector of elections,  or such other
          person  who  shall be  independent  of the  issuer  of  shares  as the
          Committee shall designate, at least ten (10) days prior to the date of
          the meeting of holders of shares at which such  voting  rights will be
          exercised,  a written  direction in the form and manner  prescribed by
          the  Committee.  The  inspector  of  elections,  or other such  person
          designated by the Committee  shall tabulate the directions  given on a
          strictly confidential basis, and shall provide the Committee with only
          the  final  results  of  the  tabulation.  The  final  results  of the
          tabulation  shall be followed by the  Committee in the direction as to
          the manner in which such voting rights shall be exercised.  As to each
          matter in which the holders of shares are entitled to vote:

          (a)  a number of affirmative  votes shall be cast equal to the product
               of:

               (i)  the total number of shares held in the  Employer  Stock Fund
                    as of the applicable record date; and

               (ii) a fraction,  the numerator of which is the  aggregate  value
                    (as of the Valuation  Date  coincident  with or  immediately
                    preceding  the  applicable  record date) of the units in the
                    Employer  Stock  Fund  of  all  persons  directing  that  an
                    affirmative  vote be cast,  and the  denominator of which is
                    the  aggregate  value (as of the Valuation  Date  coincident
                    with or immediately preceding the applicable record date) of
                    the  units  in  the  Employer  Stock  Fund  of  all  persons
                    directing that an affirmative or negative vote be cast; and
                                     28
<page>

          (b)  a number of negative votes shall be cast equal to the product of:

               (i)  the total number of shares held in the  Employer  Stock Fund
                    as of the applicable record date; and

               (ii) a fraction,  the numerator of which is the  aggregate  value
                    (as of the Valuation  Date  coincident  with or  immediately
                    preceding  the  applicable  record date) of the units in the
                    Employer Stock Fund of all persons directing that a negative
                    vote be cast, and the  denominator of which is the aggregate
                    value  (as  of  the  Valuation  Date   coincident   with  or
                    immediately  preceding  the  applicable  record date) of the
                    units in the  Employer  Stock Fund of all persons  directing
                    that an affirmative or negative vote be cast.

          The Committee shall furnish, or cause to be furnished,  to each person
          with units in the  Employer  Stock  Fund,  all annual  reports,  proxy
          materials and other  information  known to have been  furnished by the
          issuer of the  shares or by any proxy  solicitor,  to the  holders  of
          shares.

5.5      Tender Offers and Other Offers

          Each  Participant with units in the Employer Stock Fund shall have the
          right to participate confidentially in the response to a tender offer,
          or any  other  offer,  made to the  holders  of shares  generally,  to
          purchase, exchange, redeem or otherwise transfer shares; provided that
          such person has units in the Employer  Stock Fund as of the  Valuation
          Date  coincident  with or  immediately  preceding  the  first  day for
          delivering  shares or  otherwise  responding  to such  tender or other
          offer. Such  participation  shall be achieved by completing and filing
          with the  inspector  of  elections,  or such other person who shall be
          independent of the issuer of shares as the Committee shall  designate,
          at least ten (10) days prior to the last day for delivering  shares or
          otherwise  responding  to  such  tender  or  other  offer,  a  written
          direction  in the form and manner  prescribed  by the  Committee.  The
          inspector  of  elections,  or  other  such  person  designated  by the
          Committee   shall  tabulate  the   directions   given  on  a  strictly
          confidential  basis,  and shall  provide the  Committee  with only the
          final results of the  tabulation.  The final results of the tabulation
          shall be followed by the  Committee in the  direction as to the number
          of shares to be delivered.  On the last day for  delivering  shares or
          otherwise responding to such tender or other offer, a number of shares
          equal to the product of:

          (a)  the total number of shares held in the Employer Stock Fund; and

          (b)  a fraction,  the numerator of which is the aggregate value (as of
               the Valuation Date coincident  with or immediately  preceding the
               first day for delivering  shares or otherwise  responding to such

                                     29
<page>

               tender or other offer) of the units in the Employer Stock Fund of
               all persons  directing  that shares be  delivered  in response to
               such tender or other offer,  and the  denominator of which is the
               aggregate  value (as of the  Valuation  Date  coincident  with or
               immediately  preceding  the  first day for  delivering  shares or
               otherwise  responding to such tender or other offer) of the units
               in the Employer  Stock Fund of all persons  directing that shares
               be delivered or that the delivery of shares be withheld;

          shall be delivered in response to such tender or other offer. Delivery
          of the remaining  shares then held in the Employer Stock Fund shall be
          withheld.  The Committee shall furnish,  or cause to be furnished,  to
          each  person  whose  Account  is  invested  in whole or in part in the
          Employer.  Stock Fund, all  information  concerning  such tender offer
          furnished by the issuer of shares,  or information  furnished by or on
          behalf of the person making the tender or such other offer.

5.6      Dissenters' Rights

          Each  Participant with units in the Employer Stock Fund shall have the
          right to participate  confidentially  in the decision as to whether to
          exercise the  Dissenters'  rights  appurtenant  to shares held in such
          Investment  Account,  provided  that  such  person  had  units in such
          Account  as of the  most  recent  Valuation  Date  coincident  with or
          preceding the applicable  record date for which records are available.
          Such participation shall be achieved by completing and filing with the
          inspector of elections,  or such other person who shall be independent
          of the issuer of shares as the Committee shall designate, at least ten
          (10) days  prior to the date of the  meeting  of  holders of shares at
          which such dissenters'  rights will be exercised,  a written direction
          in the form and manner  prescribed by the Committee.  The inspector of
          elections,  or other such person  designated  by the  Committee  shall
          tabulate the directions  given on a strictly  confidential  basis, and
          shall  provide  the  Committee  with  only the  final  results  of the
          tabulation.  The final results of the tabulation  shall be followed by
          the  Committee  in the  directions  as to the  manner  in  which  such
          dissenters' rights shall be exercised.  As to each matter in which the
          holders of shares are  entitled to exercise  dissenters'  rights,  the
          number of shares for which dissenters'  rights will be exercised shall
          be equal to the product of:

          (a)  the total number of shares held in the Employer  Stock Fund as of
               the applicable record date; and

          (b)  a fraction,  the numerator of which is the aggregate value (as of
               the Valuation Date coincident  with or immediately  preceding the
               applicable  record date) of the units in the Employer  Stock Fund
               of all persons directing that the dissenters'  rights appurtenant
               to which shares be exercised, and the denominator of which is the
               aggregate  value (as of the  Valuation  Date  coincident  with or
               immediately  preceding the applicable  record date) of all of the
               units in the Employer Stock Fund.

          Dissenters'  rights  shall  not  be  exercised  with  respect  to  the
          remaining shares held in the Employer Stock Fund.

                                     30
<page>

5.7      Power to Invest in Employer Securities

         The Committee may direct the Trustee to acquire or hold any security
         issued by the Employer or any Affiliated Employer which is a
         "qualifying employer security" as such term is defined under ERISA and
         to invest that portion of the assets of the Trust Funds in such
         securities.

                                       31
<PAGE>

                                  Article VI --

             Investment Directions, Changes of Investment Directions
                    and Transfers Between Investment Accounts

6.1      Investment Directions

          Upon electing to participate,  each Participant  shall direct that the
          contributions  made to his Accounts shall be applied to purchase Trust
          Fund Units in any one or more of the Investment  Accounts of the Trust
          Fund. Such direction  shall indicate the  percentage,  in multiples of
          one  percent  1%,  in which  Before-Tax  Contributions,  Discretionary
          Employer   Contributions,    Special   Contributions,   and   Rollover
          Contributions shall be made to the designated Investment Accounts.

          To  the  extent  a  Participant  shall  fail  to  make  an  investment
          direction,  contributions  made on his  behalf  shall  be  applied  to
          purchase Trust Fund Units in an Investment  Account which provides for
          a stable investment return, as determined by the Trustee.

6.2      Change of Investment Directions

          A Participant may change any investment  direction at any time, in the
          form and manner prescribed by the Committee, either: (a) by completing
          and filing a notice at least ten (10) days prior to the effective date
          of such direction,  or, (b) by telephone or other  electronic  medium.
          Any such change shall be subject to the same  conditions as if it were
          an initial direction and shall be applied only to any contributions to
          be invested on or after the effective date of such direction.

6.3      Transfers Between Investment Accounts

          A Participant or Beneficiary may, at any time, redirect the investment
          of his  Investment  Accounts such that a percentage of any one or more
          Investment  Accounts  may be  transferred  to any  one or  more  other
          Investment   Accounts  in  the  form  and  manner  prescribed  by  the
          Committee, either: (a) by filing a notice at least ten (10) days prior
          to the  effective  date of such change,  or, (b) by telephone or other
          electronic medium.  The requisite  transfers shall be valued as of the
          Valuation Date on which the direction is received by the Trustee.

6.4      Employees Other than Participants

          (a)  Investment Direction

               An Employee who is not a Participant  but who has made a Rollover
               Contribution  in accordance  with the  provisions of Section 3.8,
               shall direct, in the form and manner prescribed by the Committee,
               that such  contribution  be applied to the purchase of Trust Fund
               Units  in  any  one or  more  of the  Investment  Accounts.  Such

                                     32
<page>
               direction  shall  indicate  the  percentage,  in multiples of one
               percent  1%,  in  which   contributions  shall  be  made  to  the
               designated  Investment Accounts. To the extent any Employee shall
               fail to make an investment direction,  the Rollover Contributions
               shall be  applied  to the  purchase  of Trust  Fund  Units in the
               Investment Account which provides for a stable investment return,
               as determined by the Trustee.

          (b)  Transfers Between Investment Accounts

               An  Employee  who  is  not a  Participant  may,  subject  to  the
               provisions of Section 6.3, at any time,  redirect the  investment
               of his  Investment  Accounts such that a percentage of any one or
               more  Investment  Accounts may be  transferred to any one or more
               other  Investment  Accounts.  The  requisite  transfers  shall be
               valued  as of the  Valuation  Date  on  which  the  direction  is
               received by the Trustee.

6.5      Restrictions  on  Investments  in  the  Employer Stock Fund for Certain
         Participants

          Notwithstanding  anything in the Plan to the contrary, any Participant
          subject to the provisions of Section 16(b) of the Securities  Exchange
          Act of  1934  may be  subject  to  Section  16(b)  liability  if  such
          Participant  has  an  intra-plan  transfer,  in  accordance  with  the
          provisions of Section 6.3 and/or  Section 6.4,  involving the Employer
          Stock Fund within six (6) months of the next  preceding  transfer into
          or out of the  Employer  Stock  Fund.  In  addition,  any  Participant
          subject to the provisions of Section 16(b) of the Securities  Exchange
          Act of 1934  who  elects  to  receive  a cash  distribution  from  his
          Employer  Stock Fund account under the Plan,  including  redemption of
          such stock for purposes of cash  withdrawals  under Section 7.2 and/or
          Section 7.3 and/or loans under Article VIII,  may similarly be subject
          to Section 16(b)  liability for any short swing profits within six (6)
          months  of the next  preceding  transfer  into or out of the  Employer
          Stock Fund.

          However,  unless  otherwise  required by rules and  regulations of the
          Securities and Exchange  Commission,  Section 16(b) liability will not
          result from  distributions  made in  connection  with a  Participant's
          death, Disability,  termination of employment or retirement;  pursuant
          to a domestic  relations  order  described under Section 414(p) of the
          Code; as a result of the minimum distribution  requirements  described
          under Section 401(a)(9) of the Code; or as a result of the limitations
          described under Sections 401(k), 401(m), 402(g) and 415 of the Code.

                                       33
<PAGE>

                                 Article VII --

                               Payment of Benefits

7.1      General

          (a)  The  vested  interest  in the Net Value of any one or more of the
               Accounts  of a  Participant,  Beneficiary  or  any  other  person
               entitled  to  benefits  under the Plan  shall be paid only at the
               times, to the extent, in the manner,  and to the persons provided
               in this Article VII.

          (b)  Notwithstanding  the  foregoing,  if payments are to be made on a
               monthly basis and if payments are fifty dollars ($50.00) or less,
               the Committee, in its sole discretion, may determine to make such
               payments in a lump sum or in  quarterly,  semi-annual,  or annual
               installments.

          (c)  The Net Value of any one or more of the Accounts of a Participant
               shall be subject to the provisions of Section 8.7.

          (d)  Notwithstanding  any provisions of the Plan to the contrary,  any
               and all  withdrawals,  distributions  or payments  made under the
               provisions of this Article VII shall be made in  accordance  with
               Section  401(a)(9)  of the  Code  and  any  and  all  Income  Tax
               Regulations promulgated thereunder.

          (e)  Distributions  from the  Employer  Stock Fund under this  Article
               VII, shall be made in accordance with Section 7.10 hereunder.

7.2      Non-Hardship Withdrawals

          (a)  Subject to the terms and  conditions  contained  in this  Section
               7.2,  upon ten (10) days prior  written  notice to the  Committee
               each  Participant  who has attained age 59-1/2,  or each Employee
               who solely maintains a Rollover  Contribution Account and who has
               attained  age 59-1/2,  shall be  entitled to withdraw  all or any
               portion of his  Accounts in the  following  order of priority not
               more often than once during any Plan Year:

               (i)  the Net Value of his Before-Tax Contribution Account;

               (ii) the  Net  Value  of  the  Employee's  Rollover  Contribution
                    Account  provided that such  Participant  or Employee  shall
                    have satisfied such additional terms and conditions, if any,
                    as the Committee may deem necessary; and

               (iii)the vested  interest  in the Net Value of his  Discretionary
                    Employer Contribution Account.

          (b)  Withdrawals under this Section 7.2 shall be made in the following
               order of priority:

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               (i)  by the  redemption  of Trust  Fund  Units  from  each of the
                    Participant's  Accounts  in the order  set forth in  Section
                    7.2(a),  on a pro rata  basis from the  Investment  Accounts
                    thereunder,  other than the  Employer  Stock  Fund,  as were
                    selected by the Participant pursuant to Article VI; and

               (ii) by the  redemption  of  Trust  Fund  Units  invested  in the
                    Employer Stock Fund from each of the Participant's  Accounts
                    in the order set forth in Section  7.2(a),  as were selected
                    by the Participant pursuant to Article VI.

          (c)  Any  withdrawals  under this  Section 7.2 shall be subject to the
               restrictions of Section 6.5.

7.3      Hardship Distributions

          (a)  For purposes of this Section 7.3, a "Hardship" distribution shall
               mean a  distribution  that is (i) made on account of a  condition
               which has given rise to immediate and heavy  financial  need of a
               Participant  and (ii) necessary to satisfy such financial need. A
               determination   of  the  existence  of  an  immediate  and  heavy
               financial need and the amount necessary to meet the need shall be
               made   by   the    Committee   in    accordance    with   uniform
               nondiscriminatory  standards  with respect to similarly  situated
               persons.

          (b)  Immediate and Heavy Financial Need:

               A Hardship  distribution shall be deemed to be made on account of
               an immediate and heavy  financial need if the  distribution is on
               account of:

               (i)  expenses for medical care described  under Section 213(d) of
                    the Code which were previously  incurred by the Participant,
                    the  Participant's   Spouse  or  any  of  the  Participant's
                    dependents  as  defined  under  Section  152 of the  Code or
                    expenses   which  are  necessary  to  obtain   medical  care
                    described   under  Section   213(d)  of  the  Code  for  the
                    Participant,   the  Participant's   Spouse  or  any  of  the
                    Participant's dependents as defined under Section 152 of the
                    Code; or

               (ii) purchase   (excluding  mortgage  payments)  of  a  principal
                    residence of the Participant; or

               (iii)payment  of tuition  and  related  educational  fees for the
                    next twelve (12) months of post-secondary  education for the
                    Participant,  the Participant's  Spouse,  children or any of
                    the Participant's dependents as defined under Section 152 of
                    the Code; or

               (iv) the need to prevent the eviction of the Participant from his
                    principal  residence or  foreclosure  on the mortgage of the
                    Participant's principal residence; or

                                     35
<page>
               (v)  any other  condition  which  the  Commissioner  of  Internal
                    Revenue, through the publication of revenue rulings, notices
                    and other documents of general applicability, deems to be an
                    immediate and heavy financial need.

          (c)  Necessary to Satisfy Such Financial Need:

               (i)  A  distribution  will be treated as  necessary to satisfy an
                    immediate and heavy  financial need of a Participant if: (A)
                    the amount of the  distribution  is not in excess of (1) the
                    amount  required  to  relieve  the  financial  need  of  the
                    Participant and (2) if elected by the Participant, an amount
                    necessary  to pay any  federal,  state or local income taxes
                    and  penalties  reasonably  anticipated  to result from such
                    distribution,  and (B) such need may not be  satisfied  from
                    other  resources  that  are  reasonably   available  to  the
                    Participant.

               (ii) A  distribution  will be treated as  necessary  to satisfy a
                    financial need if the Committee  reasonably  relies upon the
                    Participant's   representation   that  the  need  cannot  be
                    relieved:

                    (A)  through  reimbursement  or compensation by insurance or
                         otherwise,

                    (B)  by reasonable  liquidation of the Participant's assets,
                         to the extent such  liquidation  would not itself cause
                         an immediate and heavy financial need,

                    (C)  by cessation of  Before-Tax  Contributions  or Employee
                         contributions, if any, under the Plan, or

                    (D)  by other  distributions  or nontaxable loans from plans
                         maintained by the Employer or by any other employer, or
                         by  borrowing  from  commercial  sources on  reasonable
                         commercial terms.

                    For purposes of this subsection  (c)(ii),  the Participant's
                    resources  shall be deemed to  include  those  assets of his
                    Spouse and minor children that are  reasonably  available to
                    the Participant.

               (iii)Alternatively,  a Hardship distribution will be deemed to be
                    necessary to satisfy an immediate and heavy  financial  need
                    of a Participant if (A) or (B) are met:

                    (A)  all of the following requirements are satisfied:

                    (I)  the  distribution is not in excess of (1) the amount of
                         the   immediate  and  heavy   financial   need  of  the
                         Participant and (2) if elected by the  Participant,  an
                         amount  necessary  to pay any  federal,  state or local
                         income taxes or  penalties  reasonably  anticipated  to
                         result from such distribution;

                                     36
<page>
                    (II) the Participant has obtained all  distributions,  other
                         than Hardship  distributions,  and all nontaxable loans
                         currently  available under all plans  maintained by the
                         Employer;

                    (III)the  Plan,  and  all  other  plans  maintained  by  the
                         Employer,   provide  that  the  Participant's  elective
                         contributions and Employee contributions,  if any, will
                         be  suspended  for at least  twelve (12)  months  after
                         receipt of the Hardship distribution; and

                    (IV) the  Plan,  and  all  other  plans  maintained  by  the
                         Employer,  provide  that the  Participant  may not make
                         elective  contributions for the  Participant's  taxable
                         year  immediately  following  the  taxable  year of the
                         Hardship distribution in excess of the applicable limit
                         under Section  402(g) of the Code for such next taxable
                         year,  less the amount of such  Participant's  elective
                         contributions  for the  taxable  year  of the  Hardship
                         distribution; or

          (B)  the  requirements  set  forth  in  additional  methods,  if  any,
               prescribed by the  Commissioner of Internal  Revenue (through the
               publication of revenue  rulings,  notices and other  documents of
               general applicability) are satisfied.

     (d)  A Participant who has withdrawn the maximum amounts  available to such
          Participant under Section 7.2 or a Participant who is not eligible for
          a withdrawal  thereunder,  may, in case of Hardship (as defined  under
          this Section 7.3),  apply not more often than once in any Plan Year to
          the  Committee  for a Hardship  distribution.  Any  application  for a
          Hardship  distribution  shall be made in writing to the  Committee  at
          least ten (10) days prior to the requested  date of payment.  Hardship
          distributions  may be made by a distribution of all or a portion of an
          Employee's (i) Before-Tax  Contributions,  (ii) earnings on Before-Tax
          Contributions  which accrued prior to January 1, 1989, (iii) Net Value
          of his Rollover  Contribution  Account and (iv) the vested interest in
          the Net Value of his Discretionary Employer Contribution Account.

     (e)  Distributions  under this  Section 7.3 shall be made in the  following
          order of priority:

          (i)  Participant's  Before-Tax  Contributions,  including  earnings on
               Before-Tax Contributions which accrued prior to January 1, 1989;

          (ii) the Net Value of the Employee's  Rollover  Contribution  Account;
               and

          (iii)the  vested  interest  in the  Net  Value  of  his  Discretionary
               Employer Contribution Account.

                                     37
<page>
     (f)  Distributions  under this  Section 7.3 shall be made in the  following
          order of priority:

          (i)  by  the   redemption  of  Trust  Fund  Units  from  each  of  the
               Participant's  or  Employee's  Accounts in the order set forth in
               Section  7.3(e)  above,  on a pro rata basis from the  Investment
               Accounts thereunder,  other than the Employer Stock Fund, as were
               selected by the  Participant or Employee  pursuant to Article VI;
               and

          (ii) by the  redemption  of Trust Fund Units  invested in the Employer
               Stock Fund from each of the Participant's or Employee's  Accounts
               in the order set forth in Section 7.3(e) above,  as were selected
               by the Participant or Employee pursuant to Article VI.

     (g)  A Participant who receives a Hardship  distribution under this Section
          7.3 may have his Before-Tax Contributions suspended in accordance with
          Section 3.3.

     (h)  Any  withdrawals  under  this  Section  7.3  shall be  subject  to the
          restrictions of Section 6.5.

7.4      Distribution of Benefits Following Retirement Or Termination of Service

     (a)  If an Employee  incurs a  Termination  of Service for any reason other
          than death, a distribution  of the vested interest in the Net Value of
          his  Accounts  shall be made to the  Employee in  accordance  with the
          provisions  of  Section  7.5  or  7.6  or  7.8.  The  amount  of  such
          distribution  shall be the  vested  interest  in the Net  Value of his
          Accounts.  The Net Value shall be determined as of the Valuation  Date
          coincident  with the date of  receipt  by the  Trustee  of the  proper
          documentation acceptable to the Trustee for such purpose.

     (b)  An election  by an Employee to receive the vested  interest in the Net
          Value of his  Accounts  in a form  other  than in the  normal  form of
          benefit  payment  set forth in  Sections  7.5(a) and (b) and  Sections
          7.6(a)  and  (b)  may  not be  revoked  or  amended  by him  after  he
          terminates his employment.  Notwithstanding the foregoing, an Employee
          who elected to receive payment of benefits as of a deferred  Valuation
          Date or in the form of installments, may, by completing and filing the
          form  prescribed by the  Committee,  change to another form of benefit
          payment.

     (c)  An Employee who incurs a  Termination  of Service and is reemployed by
          the Employer  prior to the  distribution  of all or part of the entire
          vested  interest in the Net Value of his Accounts in  accordance  with
          the provisions of Section 7.5 or 7.6, shall not be eligible to receive
          or to  continue  to  receive  such  distribution  during his period of
          reemployment  with  the  Employer.  Upon  such  Employee's  subsequent
          Termination  of Service,  his prior election to receive a distribution
          in a form other than the normal form of benefit  payment shall be null

                                     38
<page>
          and void and the  vested  interest  in the Net  Value of his  Accounts
          shall be  distributed  to him in  accordance  with the  provisions  of
          Section 7.5 or 7.6 or 7.8.

     (d)  An Employee's  vested interest in the Net Value of his Accounts in the
          Employer  Stock  Fund  shall be  distributed  to the  Participant,  in
          accordance with the provisions of Sections 7.5 and 7.6, by the Trustee
          as soon as  administratively  possible following the date the Employer
          is  informed by the Trustee of the  Participant's  vested  interest in
          such Accounts in the Employer  Stock Fund. The  distribution  shall be
          made in accordance  with Section 7.10 and the terms and  provisions of
          the Trust Agreement.

7.5      Payments upon Retirement or Disability

     (a)  If an  Employee  incurs a  Termination  of  Service  as of his  Normal
          Retirement  Date or his Postponed  Retirement  Date, or if an Employee
          incurs a Termination of Service as of his Early Retirement Date or due
          to Disability  and the Net Value of his Accounts is less than or equal
          to five thousand dollars ($5,000)), a lump sum distribution of the Net
          Value of his Accounts  shall be made to the Employee  within seven (7)
          days of the Valuation Date  coincident with the date of receipt by the
          Trustee  of the  proper  documentation  indicating  that the  Employee
          incurred a Termination of Service as of such  Retirement  Date or date
          of Disability.

     (b)  If an  Employee  incurs a  Termination  of  Service  as of his  Normal
          Retirement Date, Postponed Retirement Date or Early Retirement Date or
          if an Employee  incurs a Termination  of Service due to Disability and
          the Net Value of his Accounts exceeds five thousand dollars ($5,000)),
          a lump sum distribution of the vested interest in the Net Value of his
          Accounts  shall be made to the  Employee  within seven (7) days of the
          Valuation Date  coincident with the later of (i) the date the Employee
          attained Normal Retirement Date or Postponed  Retirement Date or would
          have attained his Normal  Retirement Date if he were still employed by
          the Employer, or (ii) the date of receipt by the Trustee of the proper
          documentation indicating such Retirement Date.

     (c)  In lieu of the normal form of benefit  payment set forth in subsection
          (b), an Employee who incurs a  Termination  of Service as of his Early
          Retirement  Date or incurs a Termination  of Service due to Disability
          and the Net  Value  of his  Accounts  exceeds  five  thousand  dollars
          ($5,000)), may file an election form to receive the vested interest in
          the Net Value of his  Accounts as a lump sum  distribution  as of some
          other Valuation Date following his Termination of Service and prior to
          his Normal  Retirement  Date. The vested  interest in the Net Value of
          his  Accounts  shall be  distributed  to such  Employee  as a lump sum
          distribution  within seven (7) days of the Valuation  Date  coincident
          with the date of  receipt by the  Trustee of the proper  documentation
          indicating the Employee's distribution date.

                                     39
<page>
     (d)  In lieu of the normal form of benefit payment set forth in subsections
          (a) and (b), an Employee who incurs a Termination of Service as of his
          Retirement  Date or incurs a Termination  of Service due to Disability
          may,  subject  to the  required  minimum  distribution  provisions  of
          Sections  7.9(b) and  7.9(c),  file an  election  form to receive  the
          vested  interest  in the Net  Value  of his  Accounts  in the  form of
          installments  over a period not to exceed ten (10)  years.  The vested
          interest in the Net Value of his Accounts  shall be  determined  as of
          such Valuation  Date or Valuation  Dates in each such Plan Year as may
          be  elected  by such  Employee  and  shall be based on the  respective
          values of the Employee's  Trust Fund Units in each Investment  Account
          as of such  Valuation  Date or  Valuation  Dates.  The  amount  of the
          installment  payment shall be  distributed  by the redemption of Trust
          Fund Units from the Employee's Accounts on a pro rata basis among such
          Employee's Investment Accounts.  Any portion of the vested interest in
          the Net Value of the Accounts of such former  Employee which shall not
          have been so paid shall continue to be held for his benefit or for the
          benefit of his Beneficiary in the Employee's  Investment Accounts.  If
          an Employee elects to receive his benefit  pursuant to this subsection
          (d), the installment  period may not extend beyond the life expectancy
          of such  Employee  or the life  expectancy  of such  Employee  and his
          Beneficiary.

     (e)  In lieu of the normal form of benefit payment set forth in subsections
          (a) and (b), an Employee who incurs a Termination of Service as of his
          Retirement  Date or incurs a Termination  of Service due to Disability
          may elect to defer receipt of the vested  interest in the Net Value of
          his Accounts beyond his Normal Retirement Date or Postponed Retirement
          Date. The  applicable  form must be filed at least ten (10) days prior
          to the Employee's Normal Retirement Date. If such an election is made,
          the vested interest in the Net Value of his Accounts shall continue to
          be  held  in  the  Trust  Fund.   Subject  to  the  required   minimum
          distribution  provisions  of Sections  7.9(b) and  7.9(c),  the vested
          interest in the Net Value of his Accounts  shall (i) be distributed to
          such Employee as a lump sum distribution  within seven (7) days of the
          Valuation Date  coincident  with the date of receipt by the Trustee of
          the  proper   documentation   indicating   the   Employee's   deferred
          distribution date or (ii), upon the election of the Employee, commence
          to be distributed in installments in accordance with the provisions of
          subsection (d).

     (f)  In lieu of the normal form of benefit payment set forth in subsections
          (a) and (b), an Employee who incurs a Termination of Service as of his
          Retirement  Date or incurs a Termination  of Service due to Disability
          may,  at least ten (10) days prior to the date on which his benefit is
          scheduled  to  be  paid,  file  an  election  form  that  a  lump  sum
          distribution  equal to the  vested  interest  in the Net  Value of his
          Accounts be paid in a Direct  Rollover  pursuant to Section  7.8.  The
          amount of such lump sum  distribution  shall be  determined  as of the
          Valuation Date  coincident  with the date of receipt by the Trustee of
          the proper documentation.

                                     40
<page>
7.6      Payments upon Termination of Service for Reasons Other Than  Retirement
         or Disability

     (a)  If an Employee incurs a Termination of Service as of a date other than
          a  Retirement  Date or for  reasons  other  than  Disability,  has not
          elected to receive his benefit pursuant to an optional form of benefit
          payment in accordance  with the  provisions of subsection  (c), (d) or
          (e)  and  the  vested  interest  in the Net  Value  of the  Employee's
          Accounts is equal to or less than five thousand  dollars  ($5,000),  a
          lump sum  distribution  of the vested interest in the Net Value of his
          Accounts  shall be made to the  Employee  within seven (7) days of the
          Valuation Date  coincident  with the date of receipt by the Trustee of
          the proper documentation  indicating that he incurred a Termination of
          Service.

     (b)  If an Employee incurs a Termination of Service as of a date other than
          a  Retirement  Date or for  reasons  other  than  Disability,  has not
          elected to receive his benefit pursuant to an optional form of benefit
          payment in accordance  with the  provisions of subsection  (c), (d) or
          (e)  and  the  vested  interest  in the Net  Value  of the  Employee's
          Accounts   exceeds  five  thousand  dollars   ($5,000),   a  lump  sum
          distribution  of the vested  interest in the Net Value of his Accounts
          shall be made to the Employee  within seven (7) days of the  Valuation
          Date coincident with the later of (i) the date the Employee would have
          attained his Normal  Retirement  Date if he were still employed by the
          Employer  or (ii) the date of  receipt  by the  Trustee  of the proper
          documentation   indicating   the   Employee's   attainment  of  Normal
          Retirement Date.

     (c)  In lieu of the normal form of benefit  payment set forth in subsection
          (b),  an  Employee  who incurs a  Termination  of Service as of a date
          other than a Retirement Date or for reasons other than Disability, may
          file an election form to receive the vested  interest in the Net Value
          of his Accounts as a lump sum  distribution as of some other Valuation
          Date  following  his  Termination  of Service and prior to the date he
          would have attained his Normal Retirement Date. The vested interest in
          the Net Value of his Accounts shall be distributed to such Employee as
          a lump sum  distribution as of some other Valuation Date following the
          date of receipt by the Trustee of the proper documentation  indicating
          the Employee's distribution date.

     (d)  In lieu of the normal form of benefit payment set forth in subsections
          (a) and (b), an Employee who incurs a  Termination  of Service as of a
          date  other  than  his  Retirement  Date  or for  reasons  other  than
          Disability  may, at least ten (10) days prior to the date on which his
          benefit is scheduled to be paid, file an election form that a lump sum
          distribution  equal to the  vested  interest  in the Net  Value of his
          Accounts be paid in a Direct  Rollover  pursuant to Section  7.8.  The
          amount of such lump sum  distribution  shall be  determined  as of the
          Valuation Date  coincident  with the date of receipt by the Trustee of
          the proper documentation.

                                     41
<page>
     (e)  If an Employee incurs a Termination of Service as of a date other than
          a Retirement  Date or for reasons  other than  Disability  and has not
          elected  to  receive  the  vested  interest  in the Net  Value  of his
          Accounts pursuant to an optional form of benefit payment in accordance
          with  subsection  (c) or (d), the Employer shall notify the Trustee of
          such termination.

7.7      Payments Upon Death

     (a)  In  the  case  of a  married  Participant,  the  Spouse  shall  be the
          designated   Beneficiary.    Notwithstanding   the   foregoing,   such
          Participant  may  effectively  elect to  designate a person or persons
          other than the Spouse as  Beneficiary.  Such an election  shall not be
          effective unless (i) such Participant's Spouse irrevocably consents to
          such election in writing,  (ii) such election designates a Beneficiary
          which may not be changed without spousal consent or the consent of the
          Spouse expressly  permits  designation by the Participant  without any
          requirement  of further  consent  by the  Spouse,  (iii) the  Spouse's
          consent acknowledges  understanding of the effect of such election and
          (iv) the consent is witnessed by a Plan representative or acknowledged
          before a notary public.  Notwithstanding this consent requirement,  if
          the   Participant   establishes  to  the   satisfaction  of  the  Plan
          representative  that such written  consent cannot be obtained  because
          there is no  Spouse  or the  Spouse  cannot be  located,  the  consent
          hereunder  shall not be  required.  Any consent  necessary  under this
          provision shall be valid only with respect to the Spouse who signs the
          consent.

     (b)  In the case of a single  Participant,  Beneficiary  means a person  or
          persons who have been designated under the Plan by such Participant or
          who are otherwise entitled to a benefit under the Plan.

     (c)  The  designation  of a Beneficiary  who is other than a  Participant's
          Spouse and the designation of any contingent Beneficiary shall be made
          in writing by the Participant in the form and manner prescribed by the
          Committee  and shall not be effective  unless filed prior to the death
          of such person. If more than one person is designated as a Beneficiary
          or a  contingent  Beneficiary,  each  designated  Beneficiary  in such
          Beneficiary  classification  shall  have an  equal  share  unless  the
          Participant  directs  otherwise.  For  purposes of this  Section  7.7,
          "person"  includes an  individual,  a trust,  an estate,  or any other
          person or entity designated as a Beneficiary.

     (d)  A married  Participant  who has  designated a person or persons  other
          than the  Spouse as  Beneficiary  may,  without  the  consent  of such
          Spouse,  revoke such prior election by submitting written notification
          of such revocation.  Such revocation shall result in the reinstatement
          of the Spouse as the  designated  Beneficiary  unless the  Participant
          effectively  designates  another  person as  Beneficiary in accordance
          with the  provisions of subsection  (a). The number of election  forms
          and revocations shall not be limited.

                                     42
<page>
     (e)  Upon the death of a Participant  the remaining  vested interest in the
          Net Value of his Accounts shall become payable, in accordance with the
          provisions  of  subsection  (g),  to  his  Beneficiary  or  contingent
          Beneficiary.  If there is no such  Beneficiary,  the remaining  vested
          interest  in the Net Value of his  Accounts  shall be  payable  to the
          executor or  administrator  of his estate,  or, if no such executor or
          administrator  is  appointed  and  qualifies  within a time  which the
          Committee  shall,  in its sole  and  absolute  discretion,  deem to be
          reasonable,  then to such  one or more of the  descendants  and  blood
          relatives of such deceased  Participant as the Committee,  in its sole
          and absolute discretion, may select.

     (f)  If a designated  Beneficiary  entitled to payments hereunder shall die
          after  the death of the  Participant  but  before  the  entire  vested
          interest  in the Net Value of Accounts  of such  Participant  has been
          distributed,  then the remaining  vested  interest in the Net Value of
          Accounts of such  Participant  shall be paid, in  accordance  with the
          provisions of subsection (g), to the surviving  Beneficiary who is not
          a  contingent  Beneficiary,   or,  if  there  are  no  such  surviving
          Beneficiaries then living, to the designated contingent  Beneficiaries
          as shall be living at the time such payment is to be made. If there is
          no  designated  contingent  Beneficiary  then  living,  the  remaining
          interest  in the  Net  Value  of his  Accounts  shall  be  paid to the
          executor  or  administrator  of the  estate  of the last to die of the
          Beneficiaries who are not contingent Beneficiaries.

     (g)  If a  Participant  dies before his entire  vested  interest in the Net
          Value of his Accounts has been  distributed  to him, the  remainder of
          such  vested  interest  shall  be  paid  to  his  Beneficiary  or,  if
          applicable, his contingent Beneficiary,  in a lump sum distribution as
          soon as  practicable  following the date of the  Participant's  death.
          Notwithstanding the foregoing, if, prior to the Participant's death:

          (i)  the  Participant  had  elected  to  receive a  deferred  lump sum
               distribution  and had not yet received  such  distribution,  such
               Beneficiary  shall  receive  a lump  sum  distribution  as of the
               earlier of: (A) the Valuation Date set forth in the Participant's
               election or (B) the last  Valuation  Date which occurs within one
               (1) year of the Participant's death; or

          (ii) the  Participant had elected to receive and had begun receiving a
               distribution in the form of installments,  such Beneficiary shall
               receive  distributions over the remaining  installment period, at
               the times set forth in such election.

               If the  Beneficiary is the  Participant's  Spouse and if benefits
               are payable to such  Beneficiary as an immediate or deferred lump
               sum  distribution,  such Spouse may defer the  distribution up to
               the date on which the Participant would have attained age seventy
               and  one-half  (70-1/2).  If  such  Spouse  dies  prior  to  such
               distribution,  the  prior  sentence  shall be  applied  as if the
               Spouse were the Participant.

                                     43
<page>
     (h)  Notwithstanding  anything in the Plan to the contrary,  the provisions
          of subsections (a) through (g) shall also apply to a person who is not
          a  Participant  but who has made a  contribution  to and  maintains  a
          Rollover Contribution Account under the Plan.

7.8      Direct Rollover of Eligible Rollover Distributions

          For  purposes of this Section 7.8,  the  following  definitions  shall
          apply:

          (a)  "Direct  Rollover"  means a payment  by the Plan to the  Eligible
               Retirement Plan specified by the Distributee.

          (b)  "Distributee" means an Employee or former Employee.  In addition,
               the  Employee's  or former  Employee's  surviving  spouse and the
               Employee's  or former  Employee's  Spouse or former spouse who is
               the alternate payee under a qualified  domestic  relations order,
               as defined in Section 414(p) of the Code, are  Distributees  with
               regard to the interest of the Spouse or former spouse.

          (c)  "Eligible Retirement Plan" means an individual retirement account
               described in Section 408(a) of the Code, an individual retirement
               annuity  described in Section 408(b) of the Code, an annuity plan
               described  in Section  403(a) of the Code,  or a qualified  trust
               described  in  Section  401(a)  of the  Code,  that  accepts  the
               Distributee's  Eligible Rollover  Distribution.  However,  in the
               case  of an  Eligible  Rollover  Distribution  to  the  surviving
               Spouse, an Eligible  Retirement Plan is an individual  retirement
               account or individual retirement annuity.

          (d)  "Eligible Rollover Distribution" means any distribution of all or
               any  portion of the  balance  to the  credit of the  Distributee,
               except that an Eligible  Rollover  Distribution does not include:
               any distribution  that is one of a series of substantially  equal
               periodic  payments (not less  frequently  than annually) made for
               the life (or life  expectancy)  of the  Distributee  or the joint
               lives (or joint life  expectancies)  of the  Distributee  and the
               Distributee's  designated Beneficiary,  or for a specified period
               of ten (10) years or more;  any  distribution  to the extent such
               distribution is required under Section 401(a)(9) of the Code; the
               portion  of any  distribution  that is not  includible  in  gross
               income  (determined  without  regard  to the  exclusion  for  net
               unrealized appreciation with respect to employer securities); and
               effective January 1, 2000, any Hardship distribution described in
               Section 401(k)(2)(B)(i)(IV) of the Code.

          Notwithstanding  any  provision of the Plan to the contrary that would
          otherwise  limit a  Distributee's  election  under this Section 7.8, a
          Distributee may elect, at the time and in the manner prescribed by the
          Plan  Administrator,  to have  any  portion  of an  Eligible  Rollover
          Distribution paid directly to an Eligible Retirement Plan specified by
          the Distributee in a Direct Rollover.

                                     44
<page>
7.9      Commencement of Benefits

          (a)  Unless the Employee elects otherwise in accordance with the Plan,
               in no event shall the payment of benefits commence later than the
               sixtieth (60th) day after the close of the Plan Year in which the
               latest of the following  events occur:  (i) the attainment by the
               Employee  of  age   sixty-five   (65),   (ii)  the  tenth  (10th)
               anniversary  of the  year  in  which  the  Participant  commenced
               participation in the Plan or Prior Plan, or (iii) the termination
               of  the  Employee's  employment  with  the  Employer;   provided,
               however,  that if the amount of the payment  required to commence
               on the date determined  under this sentence cannot be ascertained
               by such date, a payment  retroactive  to such date may be made no
               later than sixty (60) days after the  earliest  date on which the
               amount of such payment can be ascertained under the Plan.

          (b)  Distributions to five-percent owners:

               The  vested  interest  in the  Net  Value  of the  Accounts  of a
               five-percent  owner (as  described in Section  416(i) of the Code
               and  determined  with  respect  to the Plan  Year  ending  in the
               calendar  year in which such  individual  attains age seventy and
               one-half   (70-1/2))  must  be  distributed  or  commence  to  be
               distributed  no later than the first day of April  following  the
               calendar  year in which such  individual  attains age seventy and
               one-half  (70-1/2).  The vested  interest in the Net Value of the
               Accounts  of an  Employee  who is not a  five-percent  owner  (as
               described in Section 416(i) of the Code) for the Plan Year ending
               in the calendar year in which such person attains age seventy and
               one-half  (70-1/2)  but who  becomes  a  five-percent  owner  (as
               described  in  Section  416(i) of the Code) for a later Plan Year
               must be  distributed  or commence to be distributed no later than
               the first  day of April  following  the last day of the  calendar
               year that  includes the last day of the first Plan Year for which
               such individual is a five-percent  owner (as described in Section
               416(i) of the Code).

          (c) Distributions to other than five-percent owners:

               The  vested  interest  in the Net  Value  of the  Accounts  of an
               Employee  who is not a  five-percent  owner and who  attained age
               seventy and one-half  (70-1/2) prior to January 1, 1988,  must be
               distributed or commence to be distributed no later than the first
               day of April  following  the  calendar  year in which  occurs the
               later  of:  (i)  his   termination  of  employment  or  (ii)  his
               attainment of age seventy and one-half (70-1/2).

               Except as  otherwise  provided in the  following  paragraph,  the
               vested  interest in the Net Value of the Accounts of any Employee
               who attains age seventy and one-half  (70-1/2) after December 31,
               1987,  must be distributed or commence to be distributed no later
               than the first day of April  following the later of: (A) the 1989
               calendar year or (B) the calendar  year in which such  individual
               attains age seventy and one-half (70-1/2).
                                     45
<page>

               Effective  January 1, 1997,  an  Employee  otherwise  required to
               receive a distribution under the preceding  paragraph,  may elect
               to defer  distribution  of the Net Value of his  Accounts  to the
               date of his termination of employment.

               Notwithstanding  the  foregoing,  the vested  interest in the Net
               Value  of  the  Accounts  of  (I)  any  Employee  who  becomes  a
               Participant  on or after January 1, 1997 or (II) any Employee who
               attains age seventy and one-half  (70-1/2) on or after January 1,
               2001,  must be distributed or commence to be distributed no later
               than the first day of April  following the calendar year in which
               occurs the later of: (1) his termination of employment or (2) his
               attainment of age seventy and one-half (70-1/2).

7.10     Manner of Payment of Distributions from the Employer Stock Fund

          Distributions   from  the  Employer   Stock  Fund  shall  be  made  to
          Participants and Beneficiaries in cash.  Notwithstanding the foregoing
          and except for withdrawals  under Sections 7.2 and 7.3 and loans under
          Article  VIII,  the  Participant  or  Beneficiary  may elect that such
          distributions   be  made  wholly  or  partially  in  shares.   If  the
          Participant or Beneficiary  elects that such distributions may be made
          wholly or partially in shares, subject to such terms and conditions as
          may be  established  from time to time by the  Committee,  the maximum
          number  of shares to be  distributed  shall be equal to the  number of
          whole shares that could be purchased on the date of distribution based
          on the  fair  market  value  of  shares  determined  as of the date of
          payment and on the fair market value of the  Participant's  Trust Fund
          units in the Employer  Stock Fund on the valuation  date preceding the
          distribution.  An amount of money equal to any remaining amount of the
          payment that is less than the fair market value of a whole share shall
          be  distributed  in cash.  For purposes of this Section 7.10, the fair
          market  value  of  a  share  shall  be  determined  on a  uniform  and
          nondiscriminatory  basis in such  manner as the  Trustee  may,  in its
          discretion, prescribe.

                                       46
<PAGE>

                                 Article VIII --

                              Loans to Participants

8.1      Definitions and Conditions

          (a)  For  purposes  of this  Article  VIII,  the  following  terms and
               phrases shall have the meanings hereafter ascribed to them:

               (i)  "Borrower"  means a Participant or a "Party in Interest" (as
                    defined  under  Section  3(14) of ERISA)  who  maintains  an
                    Account,  provided such  Participant or Party in Interest is
                    not  receiving  a benefit  payment  in  accordance  with the
                    provisions of Section 7.5(d) or 7.7.

               (ii) "Loan  Account"  means  the  separate,   individual  account
                    established  on behalf of a Borrower in accordance  with the
                    provisions of Section 8.4(d).

          (b)  To the extent permitted under the provisions of this Article VIII
               and  subject  to the terms and  conditions  set forth  herein,  a
               Borrower may request a loan from his Accounts.  Any loans made in
               accordance  with this  Article  VIII  shall not be subject to the
               provisions of Article VI.

8.2      Loan Amount

          Upon a finding by the Committee that all  requirements  hereunder have
          been met,  a  Borrower  may  request a loan from his  Accounts,  in an
          amount up to the lesser of: (a) fifty  percent  (50%) of the Net Value
          as of the close of business on the date the loan is  processed  of the
          Before-Tax Contribution Account, Rollover Contribution Account and the
          vested Net Value of his Discretionary  Employer  Contribution Account,
          or (b)  fifty  thousand  dollars  ($50,000),  reduced  by the  highest
          outstanding loan balance during the preceding twelve (12) months.  The
          minimum loan permitted  shall be one thousand  dollars  ($1,000).  For
          purposes of this Section  8.2, the Net Value of a Borrower's  Accounts
          includes  all  outstanding  loans within the  Borrower's  Loan Account
          under Section 8.4(d).

8.3      Term of Loan

          All loans  shall be for a fixed  term of not more than five (5) years,
          except that a loan which shall be used to acquire any  dwelling  which
          within a reasonable  time is to be used as the principal  residence of
          the Borrower,  may, in the discretion of the Committee,  be made for a
          term of not more than fifteen (15) years.  Interest on a loan shall be
          based on a reasonable rate of interest.  Such rate shall be the "prime
          rate" as set forth in the first publication of The Wall Street Journal
          issued  during  the month in which  the  Borrower  requests  the loan,
          rounded to the nearest  quarter of one percent (1/4 of 1%),  increased
          by one (1)  percentage  point.  Such rate shall remain in effect until
          the Loan Account is closed.
                                     47
<page>

8.4      Operational Provisions

          (a)  An  application  for a loan shall be filed in the form and manner
               prescribed  by the Committee and shall be subject to the fees set
               forth in  Section  9.11.  If the  Committee  shall  approve  such
               application,  the  Committee  shall  establish the amount of such
               loan and such loan shall be  effected  as of the  Valuation  Date
               next following receipt by the Trustee.

          (b)  The amount of the loan shall be  distributed  from the Investment
               Accounts in which the  Borrower's  Accounts are invested,  in the
               following order of priority:

               (i)  Before-Tax Contribution Account;

               (ii) Rollover Contribution Account; and

               (iii) vested Discretionary Employer Contribution Account.

          Distributions from each of the foregoing Accounts shall be made in the
          following order of priority:

                    (A)  by the  redemption of Trust Fund Units from each of the
                         Borrower's  Accounts in the order set forth above, on a
                         pro rata  basis  from  among  the  Investment  Accounts
                         (other than the  Employer  Stock Fund)  thereunder,  as
                         were selected pursuant to Section 6.1.

                    (B)  by the  redemption of Trust Fund Units  invested in the
                         Employer   Stock  Fund  from  each  of  the  Borrower's
                         Accounts in the order set forth above, as were selected
                         by the Borrower pursuant to Article VI.

          (c)  The  proceeds of a loan shall be  distributed  to the Borrower as
               soon as practicable after the Valuation Date as of which the loan
               is processed;  provided,  however,  that the Borrower  shall have
               satisfied such reasonable  conditions as the Committee shall deem
               necessary,  including, without limitation: (i) the delivery of an
               executed  promissory  note for the amount of the loan,  including
               interest, payable to the order of the Trustee; (ii) an assignment
               to the Plan of such  Borrower's  interest in his  Accounts to the
               extent  of such  loan;  and  (iii) if the  Borrower  is  actively
               employed by the  Employer,  an  authorization  to the Employer to
               make payroll  deductions  in order to repay his loan to the Plan.
               The aforementioned promissory note shall be duly acknowledged and
               executed by the Borrower and shall be held by the Trustee, or the
               Committee as agent for the Trustee, as an asset of the Borrower's
               Loan Account pursuant to subsection (d).

          (d)  A Loan Account  shall be  established  for each  Borrower with an
               outstanding loan pursuant to this Article VIII. Each Loan Account
               shall be comprised of a Borrower's (i) executed  promissory  note
               and (ii)  installment  payments of principal  and  interest  made
               pursuant to Section 8.5(a). Upon full payment and satisfaction of
               the outstanding  Loan Account  balance,  a Borrower's  promissory
               note shall be marked paid in full, returned to the Borrower,  and
               his Loan Account thereupon closed.
                                     48
<page>

          (e)  As of each Valuation Date coincident with or next succeeding each
               payment of  principal  and  interest on a loan,  the then current
               balance of each  Borrower's  Loan Account shall be debited by the
               amount of such payment and such amount shall be  transferred  for
               investment in accordance  with Section 8.5(c) to the  appropriate
               Borrower's Account.  If the Committee  established a lien against
               the  Borrower's   Accounts   pursuant  to  Section  8.6(b),   and
               foreclosure  of  such  lien  is  deferred  until  the  Borrower's
               Termination of Service  pursuant to Section  8.6(b)(i),  for each
               month that foreclosure of the lien is deferred,  the then current
               balance of the  Borrower's  Loan  Account  shall be charged  with
               interest on the unpaid principal and interest thereon.

          (f)  No more than a maximum of two (2) loans shall be  outstanding  to
               any Borrower  under this Article VIII at any time.  The foregoing
               operational   provisions   of  this   Section   8.4  shall  apply
               individually to each outstanding loan.

          (g)  Any  loans  under  this  Article  VIII  shall be  subject  to the
               restrictions of Section 6.5.

8.5      Repayments

          (a)  If the  Borrower  is on the  payroll of the  Employer  and unless
               otherwise  agreed  to  by  the  Committee,   repayments  of  loan
               principal,  or the unpaid balance  thereof,  and interest thereon
               shall be made through  payroll  deductions.  The first  repayment
               shall be deducted as of the first payroll date occurring no later
               than three (3) weeks  after the  Committee  submits the loan form
               for processing.

               If the  Borrower is not on the payroll of the Employer and unless
               otherwise  agreed  to  by  the  Committee,   repayments  of  loan
               principal,  or the unpaid balance thereof,  and interest thereon,
               shall be made in cash or cash  equivalencies  to the  Employer in
               equal monthly installments for payment to his Loan Account.

          (b)  Any  amount  repaid to the Plan by a Borrower  with  respect to a
               loan,  including  interest thereon,  shall be invested as if such
               amount were a  contribution  to be invested  in  accordance  with
               Section 6.1.

          (c)  With respect to each  Borrower's  Loan Account,  any repayment of
               principal and interest made by a Borrower  shall be credited,  as
               of the Valuation Date  coincident  with or next  succeeding  such
               payment,  to the  Borrower's  Accounts  in the order of  priority
               established  under  Section  8.4(b).  No Account  having a lesser
               degree of priority shall be credited until the Account having the
               immediately  preceding degree of priority has been restored by an
               amount equal to that which had been borrowed from such Account.

                                     49
<page>
          (d)  A Borrower may prepay his entire loan, plus all interest  accrued
               and unpaid thereon, as of any Valuation Date. A Borrower will not
               be  permitted  to make  partial  prepayments  to his or her  Loan
               Accounts.

          (e)  In the event the Plan is terminated,  the entire unpaid principal
               amount  of the loan  hereunder,  together  with any  accrued  and
               unpaid  interest  thereon,   shall  become  immediately  due  and
               payable.

8.6      Default

          (a)  If a  Borrower  fails to make any  payment  on any loan  when due
               under this Article VIII,  the entire unpaid  principal  amount of
               such loan, together with any accrued and unpaid interest thereon,
               shall be deemed in default and become due and payable ninety (90)
               days after the initial date of payment delinquency.

          (b)  If a Borrower  fails to make any  payment on a loan and is deemed
               to be in default  pursuant to subsection (a), the Committee shall
               establish  a lien  against the  Borrower's  Accounts in an amount
               equal to any unpaid  principal  and  interest.  The lien shall be
               foreclosed by applying the value of the  Borrower's  Loan Account
               (determined as of the next Valuation Date  immediately  following
               foreclosure)  in  satisfaction  of  said  unpaid   principal  and
               interest as follows:

               (i)  if the Borrower is in the  employment of the Employer,  upon
                    the Borrower's Termination of Service; or

               (ii) if the Borrower is not in the  employment  of the  Employer,
                    immediately upon default.

               Thereupon,  the vested  interest in the balance of the Borrower's
               Accounts shall be  distributed in accordance  with the applicable
               provisions of the Plan.

     (c)  The Committee may, in accordance with uniform rules established by it,
          restrict the right of any  Borrower  who has  defaulted on a loan from
          the Plan to: (i) make  withdrawals  and/or  loans from his  Before-Tax
          Contribution  Account,  and/or  Rollover  Contribution  Account and/or
          Discretionary Employer Contribution Account for a period not exceeding
          twelve  (12) months or (ii) if the  Borrower is an Eligible  Employee,
          authorize  Before-Tax  Contributions  to be made on his behalf or make
          any other  contributions to the Plan for a period not exceeding twelve
          (12) months.

8.7      Coordination of Outstanding Account and Payment of Benefits

     (a)  If the  Borrower  has an  outstanding  Loan  Account and is either (i)
          scheduled to receive or elects to receive a lump sum  distribution  in
          accordance  with the  provisions of Article VII, or (ii)  scheduled to
          receive the last installment payment under a previous election made in
          accordance with the provisions of Article VII to receive payments in a
          form other than the normal form of benefit payments, then, at the time

                                     50
<page>
          of the  distribution  or payment  under clause (i) or (ii) above,  the
          entire unpaid  principal  amount of the loan together with any accrued
          and unpaid interest thereon, shall become immediately due and payable.
          No Plan distribution, except as permitted under Section 7.2 or Section
          7.3,  shall be made to any Borrower  unless and until such  Borrower's
          Loan  Account,   including  accrued  interest  thereunder,   has  been
          liquidated  and  closed.  If a Borrower  fails to pay the  outstanding
          balance of his Loan Account hereunder, such loan shall be satisfied as
          if a default had occurred pursuant to Section 8.6.

     (b)  Any  reference in the Plan to the Net Value of a  Borrower's  Accounts
          available for distribution to any Borrower, shall mean the value after
          the satisfaction of the entire unpaid principal loan amount or amounts
          and any accrued,  unpaid interest thereon, as provided in this Article
          VIII.

                                     51
<page>

                                  Article IX --

                                 Administration

9.1      General Administration of the Plan

          The operation and  administration  of the Plan shall be subject to the
          management  and  control of the Named  Fiduciaries  designated  by the
          Sponsoring  Employer.  The designation of such Named Fiduciaries,  the
          terms of their  appointment,  and their  duties  and  responsibilities
          allocated  among  them shall be as set forth in this  Article  IX. Any
          actions  taken   hereunder   shall  be   conclusive   and  binding  on
          Participants, Retired Participants, Employees, Beneficiaries and other
          persons,  and shall not be overturned unless found to be arbitrary and
          capricious by a court of competent jurisdiction.

9.2      Designation of Named Fiduciaries

          The management and control of the operation and  administration of the
          Plan shall be allocated in the following manner:

          (a)  The Trustee as a Named  Fiduciary  shall perform those  functions
               set forth in the Trust Agreement or the Plan that are assigned to
               the Trustee.

          (b)  The Sponsoring  Employer shall designate one or more  individuals
               to  serve as  member(s)  of an  employee  benefits  Committee  to
               perform those  functions set forth in the Trust  Agreement or the
               Plan that are assigned to such Committee.

          (c)  The Sponsoring  Employer shall designate one or more  individuals
               to serve as Plan Administrator and to perform those functions set
               forth in the Trust Agreement or the Plan that are assigned to the
               Plan Administrator.

9.3      Responsibilities of Fiduciaries

          The  Named   Fiduciaries   shall  have  only  those  powers,   duties,
          responsibilities  and obligations that are  specifically  allocated to
          them under the Plan or the Trust Agreement.

          To the extent  permitted by ERISA,  each Named Fiduciary may rely upon
          any direction, information or action of another Named Fiduciary or the
          Sponsoring  Employer  as being  proper  under  the  Plan or the  Trust
          Agreement  and is not  required to inquire  into the  propriety of any
          such direction,  information or action and no Named Fiduciary shall be
          responsible  for any act or failure to act of another Named  Fiduciary
          or the Sponsoring Employer.

          Neither the Named  Fiduciaries  nor the Employer  guarantees the Trust
          Fund in any manner against  investment  loss or  depreciation in asset
          value.

                                     52
<page>
          The  allocation  of   responsibility   between  the  Trustee  and  the
          Sponsoring  Employer  may  be  changed  by  written  agreement.   Such
          reallocation shall be evidenced by Employer  Resolutions and shall not
          be deemed an amendment to the Plan.

9.4      Plan Administrator

          The Sponsoring  Employer shall designate the Sponsoring  Employer,  or
          one  or  more  persons,   or  a  group  of  persons  to  act  as  Plan
          Administrator.

          The Plan Administrator shall have the power and responsibility to: (a)
          furnish   summary  plan   descriptions,   annual   reports  and  other
          notifications   and   disclosure   statements  to   Participants   and
          Beneficiaries,  (b) maintain records and addresses of Participants and
          Beneficiaries,  (c) designate  any  independent  qualified  accountant
          required to act with respect to the Plan under ERISA,  and (d) provide
          notification of determinations under the claim procedure of the Plan.

          Any person or persons  designated  as Plan  Administrator  shall serve
          until their  successor or successors are  designated and qualified.  A
          Plan  Administrator  may resign upon written  notice to the Sponsoring
          Employer  or may be  removed  as Plan  Administrator  but  only  for a
          failure or inability,  in the opinion of the Sponsoring  Employer,  of
          the  Plan  Administrator  to  carry  out  his  responsibilities  in an
          effective  manner.  Termination of employment  with the Employer shall
          terminate designation as Plan Administrator.

          The Plan  Administrator  is  designated  as the  Plan's  agent for the
          service of legal process.

9.5      Committee

          The members of the  Committee  designated by the  Sponsoring  Employer
          under  Section  9.2(b) shall serve for such term(s) as the  Sponsoring
          Employer shall determine and until their successors are designated and
          qualified. The term of any member of the Committee may be renewed from
          time to time  without  limitation  as to the number of  renewals.  Any
          member of the  Committee  may (a) resign upon at least sixty (60) days
          written  notice to the  Sponsoring  Employer  or (b) be  removed  from
          office but only for his  failure or  inability,  in the opinion of the
          Sponsoring Employer, to carry out his responsibilities in an effective
          manner. Termination of employment with the Employer shall be deemed to
          give rise to such failure or inability.

          The powers  and  duties  allocated  to the  Committee  shall be vested
          jointly  and  severally  in  its  members.   Notwithstanding  specific
          instructions  to the contrary,  any  instrument or document  signed on
          behalf of the Committee by any member of the Committee may be accepted
          and  relied  upon  by the  Trustee  as the act of the  Committee.  The
          Trustee  shall not be required to inquire  into the  propriety  of any
          such action taken by the  Committee  nor shall they be held liable for
          any actions taken by them in reliance thereon.

          The Sponsoring Employer may, pursuant to Employer Resolutions,  change
          the number of individuals  comprising  the  Committee,  their terms of

                                     53
<page>
          office or other  conditions  of their  incumbency  provided that there
          shall be at all times at least one individual member of the Committee.
          Any such change shall not be deemed an amendment to the Plan.

9.6      Powers and Duties of the Committee

          The  Committee  shall have  authority  to perform all acts it may deem
          necessary  or  appropriate  in order to exercise the duties and powers
          imposed or  granted by ERISA,  the Plan,  the Trust  Agreement  or any
          Employer Resolutions. Such duties and powers shall include, but not be
          limited to, the following:

          (a)  Power to  Construe - Except as  otherwise  provided  in the Trust
               Agreement,  the  Committee  shall have the power to construe  the
               provisions of the Plan and to determine  any questions  which may
               arise thereunder.

          (b)  Power to Make Rules and  Regulations - The  Committee  shall have
               the power to make such reasonable rules and regulations as it may
               deem  necessary or appropriate to perform its duties and exercise
               its powers. Such rules and regulations shall include,  but not be
               limited to, those governing (i) the manner in which the Committee
               shall act and manage its own affairs,  (ii) the  procedures to be
               followed  in  order  for  Employees  or  Beneficiaries  to  claim
               benefits,   and  (iii)  the   procedures   to  be   followed   by
               Participants, Beneficiaries or other persons entitled to benefits
               with respect to notifications,  elections,  designations or other
               actions  required  by the  Plan or  ERISA.  All  such  rules  and
               regulations  shall be applied in a uniform and  nondiscriminatory
               manner.

          (c)  Powers and Duties with  Respect to  Information  - The  Committee
               shall have the power and responsibility:

               (i)  to obtain such  information  as shall be  necessary  for the
                    proper discharge of its duties;

               (ii) to furnish to the Employer,  upon  request,  such reports as
                    are reasonable and appropriate;

               (iii)to  receive,  review  and  retain  periodic  reports  of the
                    financial condition of the Trust Fund; and

               (iv) to  receive,   collect  and  transmit  to  the  Trustee  all
                    information required by the Trustee in the administration of
                    the Accounts of the Employee as contemplated in Section 9.7.

          (d)  Power of  Delegation  - The  Committee  shall  have the  power to
               delegate   fiduciary   responsibilities   (other   than   trustee
               responsibilities defined under Section 405(c)(3) of ERISA) to one
               or more  persons  who are not  members of the  Committee.  Unless
               otherwise  expressly  indicated by the Sponsoring  Employer,  the
               Committee  must  reserve the right to terminate  such  delegation
               upon reasonable notice.

                                     54
<page>
          (e)  Power of  Allocation  - Subject to the  written  approval  of the
               Sponsoring  Employer,  the  Committee  shall  have  the  power to
               allocate among its members specified  fiduciary  responsibilities
               (other  than  trustee   responsibilities  defined  under  Section
               405(c)(3) of ERISA).  Any such allocation shall be in writing and
               shall specify the persons to whom such allocation is made and the
               terms and conditions thereof.

          (f)  Duty to Report - Any member of the  Committee  to whom  specified
               fiduciary  responsibilities  have been allocated under subsection
               (e)  shall  report  to  the  Committee  at  least  annually.  The
               Committee  shall  report  to the  Sponsoring  Employer  at  least
               annually  regarding the  performance of its  responsibilities  as
               well as the  performance  of any  persons  to whom any powers and
               responsibilities have been further delegated.

          (g)  Power to Employ  Advisors and Retain Services - The Committee may
               employ  such  legal  counsel,  enrolled  actuaries,  accountants,
               pension  specialists,  clerical  help and other persons as it may
               deem   necessary   or   desirable   in  order  to   fulfill   its
               responsibilities under the Plan.

9.7      Certification of Information

          The  Committee  shall certify to the Trustee on such periodic or other
          basis  as  may  be  agreed  upon,   relevant   facts   regarding   the
          establishment of the Accounts of an Employee,  periodic  contributions
          with respect to such Accounts,  investment elections and modifications
          thereof and withdrawals and distributions therefrom. The Trustee shall
          be fully  protected in maintaining  individual  Account records and in
          administering  the  Accounts  of the  Employee  on the  basis  of such
          certifications  and shall have no duty of inquiry  or  otherwise  with
          respect to any  transactions or  communications  between the Committee
          and  Employees   relating  to  the   information   contained  in  such
          certifications.

9.8      Authorization of Benefit Payments

          The Committee shall forward to the Trustee any application for payment
          of  benefits  within a  reasonable  time  after it has  approved  such
          application. The Trustee may rely on any such information set forth in
          the  approved   application   for  the  payment  of  benefits  to  the
          Participant, Beneficiary or any other person entitled to benefits.

9.9      Payment of Benefits to Legal Custodian

          Whenever, in the Committee's opinion, a person entitled to receive any
          benefit  payment is a minor or deemed to be  physically,  mentally  or
          legally incompetent to receive such benefit,  the Committee may direct
          the  Trustee to make  payment for his  benefit to such  individual  or
          institution  having  legal  custody  of such  person  or to his  legal
          representative.  Any  benefit  payment  made in  accordance  with  the
          provisions  of this Section 9.9 shall  operate as a valid and complete
          discharge  of any  liability  for  payment of such  benefit  under the
          provisions of the Plan.

                                     55
<page>
9.10     Service in More Than One Fiduciary Capacity

          Any  person or group of persons  may serve in more than one  fiduciary
          capacity  with  respect to the Plan,  regardless  of whether  any such
          person is an officer,  employee,  agent or other  representative  of a
          party in interest.

9.11     Payment of Expenses

          The Employer will pay the ordinary administrative expenses of the Plan
          and compensation of the Trustee.

          The Employer may, if determined by the Committee, charge Employees all
          or part of the reasonable  expenses  associated  with  withdrawals and
          other  distributions,  or Account transfers.  The Employer will charge
          Employees  loan  origination  fees  and all  annual  maintenance  fees
          associated with loans.

                                       56
<PAGE>

                                  Article X --

                            Benefit Claims Procedure

10.1     Definition

          For purposes of this Article X, "Claimant" shall mean any Participant,
          Beneficiary or any other person entitled to benefits under the Plan or
          his duly authorized representative.

10.2     Claims

          A Claimant  may file a written  claim for a Plan benefit with the Plan
          Administrator  on the  appropriate  form to be  supplied  by the  Plan
          Administrator.  The Plan Administrator shall, in its sole and absolute
          discretion,   review  the  Claimant's  application  for  benefits  and
          determine the disposition of such claim.

10.3     Disposition of Claim

          The Plan Administrator shall notify the Claimant as to the disposition
          of the claim for  benefits  under this Plan  within  ninety  (90) days
          after the appropriate form has been filed unless special circumstances
          require an extension of time for  processing.  If such an extension of
          time is required,  the Plan Administrator shall furnish written notice
          of the  extension  to the  Claimant  prior to the  termination  of the
          initial  ninety (90) day period.  The extension  notice shall indicate
          the special circumstances requiring the extension of time and the date
          the Plan Administrator expects to render a decision. In no event shall
          such extension exceed a period of one  hundred-eighty  (180) days from
          the receipt of the claim.

10.4     Denial of Claim

          If a claim for benefits  under this Plan is denied in whole or in part
          by the Plan Administrator,  a notice written in a manner calculated to
          be  understood  by  the  Claimant   shall  be  provided  by  the  Plan
          Administrator  to the  Claimant  and such  notice  shall  include  the
          following:

          (a)  a statement  that the claim for the benefits  under this Plan has
               been denied;

          (b)  the  specific  reasons for the denial of the claim for  benefits,
               citing the  specific  provisions  of the Plan which set forth the
               reason or reasons for the denial;

          (c)  a description of any additional material or information necessary
               for the  Claimant  to perfect the claim for  benefits  under this
               Plan and an  explanation  of why such material or  information is
               necessary; and

          (d)  appropriate  information  as to  the  steps  to be  taken  if the
               Claimant wishes to appeal such decision.

                                     57
<page>
10.5     Inaction by Plan Administrator

          A claim  for  benefits  shall  be  deemed  to be  denied  if the  Plan
          Administrator  shall not take any action on such claim  within  ninety
          (90)  days  after  receipt  of the  application  for  benefits  by the
          Claimant  or,  if  later,   within  the  extended   processing  period
          established  by  the  Plan  Administrator  by  written  notice  to the
          Claimant, in accordance with Section 10.3.

10.6     Right to Full and Fair Review

          A Claimant  who is denied,  in whole or in part,  a claim for benefits
          under the Plan may file an appeal of such denial.  Such appeal must be
          made in writing by the Claimant or his duly authorized  representative
          and must be filed  with the  Committee  within  sixty  (60) days after
          receipt of the  notification  under Section 10.4 or the date his claim
          is  deemed  to be denied  under  Section  10.5.  The  Claimant  or his
          representative  may review  pertinent  documents and submit issues and
          comments in writing.

10.7     Time of Review

          The Committee, independent of the Plan Administrator,  shall conduct a
          full and fair  review of the denial of claim for  benefits  under this
          Plan to a Claimant within sixty (60) days after receipt of the written
          request for review described in Section 10.6; provided,  however, that
          an  extension,  not to exceed  sixty (60)  days,  may apply in special
          circumstances. Written notice shall be furnished to the Claimant prior
          to the commencement of the extension period.

10.8     Final Decision

          The  Claimant  shall be notified  in writing of the final  decision of
          such full and fair review by such  Committee.  Such decision  shall be
          written in a manner calculated to be understood by the Claimant, shall
          state the specific reasons for the decision and shall include specific
          references to the pertinent Plan provisions upon which the decision is
          based.  In no event shall the  decision be  furnished  to the Claimant
          later than sixty (60) days after the  receipt of a request for review,
          unless  special   circumstances  require  an  extension  of  time  for
          processing,  in which case a  decision  shall be  rendered  within one
          hundred-twenty (120) days after receipt of such request for review.

                                       58
<PAGE>

                                  Article XI --

                     Amendment, Termination, and Withdrawal

11.1     Amendment and Termination

          The  Employer   expects  to  continue  the  Plan   indefinitely,   but
          specifically  reserves the right, in its sole and absolute discretion,
          at any time, by appropriate action of the Board, to terminate its Plan
          or to amend,  in whole or in part, any or all of the provisions of the
          Plan.  Subject to the provisions of Section 13.7, no such amendment or
          termination  shall permit any part of the Trust Fund to be used for or
          diverted to purposes other than for exclusive benefit of Participants,
          Beneficiaries  or other  persons  entitled  to  benefits,  and no such
          amendment or termination shall reduce the interest of any Participant,
          Beneficiary  or other person who may be entitled to benefits,  without
          his consent.  In the event of a termination or partial  termination of
          the Plan, or upon complete  discontinuance of contributions  under the
          Plan,  the Accounts of each  affected  Participant  shall become fully
          vested and shall be distributable in accordance with the provisions of
          Article VII. In the event of a complete  termination  of the Plan, the
          Accounts of each  affected  Participant  shall become fully vested and
          may  alternatively be distributable as a lump sum distribution  within
          seven  (7)  days of the  Valuation  Date  coincident  with the date of
          receipt  by the  Trustee of the proper  documentation  indicating  the
          Participant's distribution date.

          If any amendment changes the vesting schedule, any Participant who has
          three (3) or more Years of Service  may,  by filing a written  request
          with the Employer,  elect to have his vested percentage computed under
          the vesting schedule in effect prior to the amendment.

          The period during which the  Participant  may elect to have his vested
          percentage  computed  under the prior vesting  schedule shall commence
          with the date the amendment is adopted and shall end on the latest of:

          (a)  sixty (60) days after the amendment is adopted;

          (b)  sixty (60) days after the amendment becomes effective; or

          (c)  sixty (60) days after the Participant is issued written notice of
               the amendment from the Employer.

11.2     Withdrawal from the Trust Fund

          An Employer may  withdraw  its Plan from the Trust Fund in  accordance
          with and subject to the provisions of the Trust Agreement.

                                       59
<PAGE>

--------------------------------------------------------------------------------

                                 Article XII --

                            Top-Heavy Plan Provisions

12.1     Introduction

          Any other provisions of the Plan to the contrary notwithstanding,  the
          provisions  contained  in this  Article  XII shall be  effective  with
          respect to any Plan Year in which this Plan is a  Top-Heavy  Plan,  as
          hereinafter defined.

12.2     Definitions

          For  purposes of this Article  XII,  the  following  words and phrases
          shall have the meanings  stated herein  unless a different  meaning is
          plainly required by the context.

          (a)  "Account,"  for the purpose of determining  the Top-Heavy  Ratio,
               means  the sum of (i) a  Participant's  Accounts  as of the  most
               recent  Valuation Date and (ii) an adjustment  for  contributions
               due as of the Determination Date.

          (b)  "Determination  Date" means,  with respect to any Plan Year,  the
               last day of the  preceding  Plan Year.  With respect to the first
               Plan Year,  "Determination  Date" means the last day of such Plan
               Year.

          (c)  "Five-Percent Owner" means, if the Employer is a corporation, any
               Employee who owns (or is  considered as owning within the meaning
               of Section 318 of the Code modified by Section  416(i)(1)(B)(iii)
               of the  Code)  more than  five  percent  (5%) of the value of the
               outstanding stock of, or more than five percent (5%) of the total
               combined  voting power of all the stock of, the Employer.  If the
               Employer is not a  corporation,  a  Five-Percent  Owner means any
               Employee  who owns more than five  percent (5%) of the capital or
               profits interest in the Employer.

          (d)  "Key Employee"  means any Employee or former  Employee (or, where
               applicable,  such person's  Beneficiary)  in the Plan who, at any
               time during the Plan Year  containing the  Determination  Date or
               any of the  preceding  four (4) Plan  Years,  is:  (i) an Officer
               having Top-Heavy Earnings from the Employer of greater than fifty
               percent  (50%) of the dollar  limitation  in effect under Section
               415(b)(1)(A)  of the  Code;  (ii) one of the ten  (10)  Employees
               having  Top-Heavy  Earnings  from the  Employer  of more than the
               dollar  limitation  in effect under Section  415(c)(1)(A)  of the
               Code and owning (or  considered  as owning  within the meaning of
               Section 318 of the Code modified by Section  416(i)(1)(B)(iii) of
               the  Code)  both  more  than a  one-half  of one  percent  (1/2%)
               interest in value and the largest  interests  in the value of the
               Employer;  (iii) a Five-Percent Owner of the Employer;  or (iv) a
               One-Percent Owner of the Employer having Top-Heavy  Earnings from
               the Employer  greater  than one hundred  fifty  thousand  dollars
               ($150,000).  For purposes of computing the Top-Heavy  Earnings in
               subsections (d)(i), (d)(ii) and (d)(iv), the aggregation rules of
               Sections 414(b), (c), (m) and (o) of the Code shall apply.

                                     60
<page>
          (e)  "Non-Key  Employee"  means an  Employee or former  Employee  (or,
               where  applicable,  such person's  Beneficiary)  who is not a Key
               Employee.

          (f)  "Officer" means an Employee who is an administrative executive in
               the regular and continued  service of his Employer;  any Employee
               who has the title but not the  authority of an officer  shall not
               be  considered  an Officer  for  purposes  of this  Article  XII.
               Similarly,  an Employee who does not have the title of an officer
               but has the  authority  of an  officer  shall  be  considered  an
               Officer.  For purposes of this Article XII, the maximum number of
               Officers  that  must  be  taken  into   consideration   shall  be
               determined as follows:  (i) three (3), if the number of Employees
               is less than thirty (30); (ii) ten percent (10%) of the number of
               Employees,  if the number of Employees is between thirty (30) and
               five  hundred  (500);  or (iii)  fifty  (50),  if the  number  of
               Employees is greater than five hundred (500). In determining such
               limit, the term "Employer" shall be determined in accordance with
               Sections  414(b),  (c),  (m) and (o) of the Code  and  "Employee"
               shall include Leased Employees and exclude employees described in
               Section 414(q)(5) of the Code.

          (g)  "One-Percent Owner" means, if the Employer is a corporation,  any
               Employee who owns (or is  considered as owning within the meaning
               of Section 318 of the Code modified by Section  416(i)(1)(B)(iii)
               of the  Code)  more  than one  percent  (1%) of the  value of the
               outstanding  stock of, or more than one percent (1%) of the total
               combined  voting power of all the stock of, the Employer.  If the
               Employer  is not a  corporation,  a  One-Percent  Owner means any
               Employee  who owns more than one  percent  (1%) of the capital or
               profits interest in the Employer.

          (h)  A "Permissive Aggregation Group" consists of one or more plans of
               the Employer that are part of a Required  Aggregation Group, plus
               one or more  plans  that are not part of a  Required  Aggregation
               Group but that satisfy the requirements of Sections 401(a)(4) and
               410 of the  Code  when  considered  together  with  the  Required
               Aggregation  Group.  If two (2) or more defined benefit plans are
               included in the aggregation group, the same actuarial assumptions
               must be used with  respect to all such plans in  determining  the
               Present Value of Accrued Benefits.

          (i)  "Present  Value  of  Accrued  Benefits"  shall be  determined  in
               accordance  with  the  actuarial  assumptions  set  forth  in the
               defined  benefit plan and the assumed benefit  commencement  date
               shall be  determined  taking  into  account  any  nonproportional
               subsidy.  The accrued benefit of any Employee shall be determined
               under the method used for accrual  purposes  for all plans of the
               Employer,  or if no such method is described,  as if such benefit
               accrued not more rapidly than the slowest  accrual rate permitted
               under Section 411(b)(1)(C) of the Code.

          (j)  "Related  Rollover  Contributions"  means rollover  contributions
               received by the Plan that are not  initiated  by the Employee nor
               made from another plan maintained by the Employer.

                                     61
<page>

          (k)  A  "Required  Aggregation  Group"  consists  of each  plan of the
               Employer  (whether  or not  terminated)  in which a Key  Employee
               participates  or  participated  at any time  during the Plan Year
               containing  the  Determination  Date  or  any  of  the  four  (4)
               preceding Plan Years and each other plan of the Employer (whether
               or not terminated) which enables any plan in which a Key Employee
               participates or participated to meet the  requirements of Section
               401(a)(4) or 410 of the Code. If two (2) or more defined  benefit
               plans are included in the aggregation  group,  the same actuarial
               assumptions  must be used  with  respect  to all  such  plans  in
               determining the Present Value of Accrued Benefits.

          (l)  A "Super  Top-Heavy  Plan"  means a Plan in  which,  for any Plan
               Year:

               (i)  the Top-Heavy  Ratio (as defined under  subsection  (o)) for
                    the Plan exceeds  ninety  percent  (90%) and the Plan is not
                    part of any  Required  Aggregation  Group (as defined  under
                    subsection (k)) or Permissive  Aggregation Group (as defined
                    under subsection (h)); or

               (ii) the Plan is a part of a Required  Aggregation  Group (but is
                    not  part  of  a  Permissive   Aggregation  Group)  and  the
                    Top-Heavy  Ratio  for the  group  of  plans  exceeds  ninety
                    percent (90%); or

               (iii)the Plan is a part of a Required  Aggregation Group and part
                    of a Permissive  Aggregation  Group and the Top-Heavy  Ratio
                    for the Permissive  Aggregation Group exceeds ninety percent
                    (90%).

          (m)  "Top-Heavy Earnings" means, for any year, compensation as defined
               under  Section  414(q)(4)  of the Code,  up to a  maximum  of one
               hundred sixty thousand  dollars  ($160,000) (and increased to one
               hundred seventy thousand dollars for the 2000 Plan Year) adjusted
               in multiples of ten thousand  dollars  ($10,000) for increases in
               the  cost-of-living,  as  prescribed  by  the  Secretary  of  the
               Treasury under Section 401(a)(17)(B) of the Code.

          (n)  A "Top-Heavy Plan" means a Plan in which, for any Plan Year:

               (i)  the Top-Heavy  Ratio (as defined under  subsection  (o)) for
                    the Plan  exceeds  sixty  percent  (60%) and the Plan is not
                    part of any  Required  Aggregation  Group (as defined  under
                    subsection (k)) or Permissive  Aggregation Group (as defined
                    under subsection (h)); or

               (ii) the Plan is a part of a  Required  Aggregation  Group but is
                    not part of a Permissive Aggregation Group and the Top-Heavy
                    Ratio for the group of plans exceeds sixty percent (60%); or

               (iii)the Plan is a part of a Required  Aggregation Group and part
                    of a Permissive  Aggregation  Group and the Top-Heavy  Ratio
                    for the Permissive  Aggregation  Group exceeds sixty percent
                    (60%).
                                     62
<page>

          (o)  "Top-Heavy Ratio" means:

               (i)  if the  Employer  maintains  one or more  qualified  defined
                    contribution  plans and the Employer has not  maintained any
                    qualified  defined  benefit  plans which during the five (5)
                    year period  ending on the  Determination  Date have or have
                    had accrued benefits, the Top-Heavy Ratio for the Plan alone
                    or  for  the  Required   Aggregation   Group  or  Permissive
                    Aggregation  Group,  as  appropriate,  is  a  fraction,  the
                    numerator of which is the sum of the Account  balances under
                    the aggregated  defined  contribution  plan or plans for all
                    Key Employees as of the  Determination  Date,  including any
                    part of any Account balance distributed in the five (5) year
                    period  ending  on  the  Determination  Date  but  excluding
                    distributions     attributable    to    Related     Rollover
                    Contributions,  if any, and the  denominator of which is the
                    sum of all Account  balances under the aggregated  qualified
                    defined  contribution  plan or plans for all Participants as
                    of the Determination Date, including any part of any Account
                    balance  distributed  in the five (5) year period  ending on
                    the   Determination   Date   but   excluding   distributions
                    attributable  to  Related  Rollover  Contributions,  if any,
                    determined  in  accordance  with Section 416 of the Code and
                    the regulations thereunder.

               (ii) if the  Employer  maintains  one or more  qualified  defined
                    contribution   plans  and  the  Employer  maintains  or  has
                    maintained one or more qualified defined benefit plans which
                    during the five (5) year period ending on the  Determination
                    Date have or have had any accrued  benefits,  the  Top-Heavy
                    Ratio  for any  Required  Aggregation  Group  or  Permissive
                    Aggregation  Group,  as  appropriate,  is  a  fraction,  the
                    numerator of which is the sum of the Account  balances under
                    the aggregated  qualified defined contribution plan or plans
                    for all Key  Employees,  determined in  accordance  with (i)
                    above,  and the sum of the Present Value of Accrued Benefits
                    under the aggregated qualified defined benefit plan or plans
                    for all Key Employees as of the Determination  Date, and the
                    denominator  of  which  is the sum of the  Account  balances
                    under the aggregated  qualified defined contribution plan or
                    plans  determined  in  accordance  with (i)  above,  for all
                    Participants  and the sum of the  Present  Value of  Accrued
                    Benefits under the aggregated qualified defined benefit plan
                    or plans for all Participants as of the Determination  Date,
                    all  determined in  accordance  with Section 416 of the Code
                    and the regulations thereunder. The accrued benefits under a
                    qualified  defined  benefit plan in both the  numerator  and
                    denominator  of the  Top-Heavy  Ratio are  adjusted  for any
                    distribution of an accrued benefit made in the five (5) year
                    period ending on the Determination Date.

               (iii)For  purposes  of (i) and (ii)  above,  the value of Account
                    balances and the Present  Value of Accrued  Benefits will be
                    determined as of the most recent  Valuation  Date that falls
                    within  the  twelve   (12)  month   period   ending  on  the
                    Determination Date, except as provided in Section 416 of the
                    Code and the regulations thereunder for the first and second

                                     63
<page>
                    Plan Years of a qualified  defined benefit plan. The Account
                    balances  and  Present  Value  of  Accrued   Benefits  of  a
                    Participant (A) who is a Non-Key  Employee but who was a Key
                    Employee in a prior year,  or (B) who has not been  credited
                    with  at  least  an  Hour  of  Service   with  any  employer
                    maintaining  the Plan at any time  during  the five (5) year
                    period ending on the Determination Date will be disregarded.
                    The  calculation of the Top-Heavy  Ratio,  and the extent to
                    which distributions, rollovers, and transfers are taken into
                    account will be made in  accordance  with Section 416 of the
                    Code and the regulations thereunder. When aggregating plans,
                    the  value of  Account  balances  and the  Present  Value of
                    Accrued  Benefits will be calculated  with  reference to the
                    Determination Date that falls within the same calendar year.

          (p)  "Valuation  Date",  for the purpose of  computing  the  Top-Heavy
               Ratio (as defined under subsection (o)) under subsections (l) and
               (n) means the last date of the Plan Year.

          For  purposes of  subsections  (h), (j) and (k), the rules of Sections
          414(b),  (c), (m) and (o) of the Code shall be applied in  determining
          the meaning of the term "Employer".

12.3     Minimum Contributions

          If the Plan becomes a Top-Heavy  Plan,  then any  provision of Article
          III to the contrary  notwithstanding,  the following  provisions shall
          apply:

          (a)  Subject to  subsection  (b), the  Employer  shall  contribute  on
               behalf of each Participant who is employed by the Employer on the
               last day of the Plan Year and who is a Non-Key Employee an amount
               with  respect to each  Top-Heavy  year  which,  when added to the
               amount   of   Special   Contributions,   Discretionary   Employer
               Contributions and Forfeitures made on behalf of such Participant,
               shall not be less than the lesser of: (i) three  percent  (3%) of
               such  Participant's  Section 415  Compensation  (as defined under
               Section   3.9(a)(vii)   of  the  Plan  and  modified  by  Section
               401(a)(17)  of the Code),  or (ii) if the Employer has no defined
               benefit plan which is  designated  to satisfy  Section 416 of the
               Code, the largest of the total of each Key Employee's  Before-Tax
               Contributions,  Special  Contributions,   Discretionary  Employer
               Contributions  and Forfeitures,  as a percentage of each such Key
               Employee's  Top-Heavy  Earnings;  provided,  however,  that in no
               event shall any  contributions be made under this Section 12.3 in
               an amount which will cause the percentage of  contributions  made
               by the  Employer  on behalf of any  Participant  who is a Non-Key
               Employee to exceed the percentage at which contributions are made
               by the  Employer  on  behalf  of the Key  Employee  for  whom the
               percentage  of the  total of  Before-Tax  Contributions,  Special
               Contributions,    Discretionary    Employer   Contributions   and
               Forfeitures,   is  highest  in  such  Top-Heavy  year.  Any  such
               contribution  shall be  allocated to the  Discretionary  Employer

                                     64
<page>
               Contribution  Account of each such  Participant and, for purposes
               of  vesting  and  withdrawals  only,  shall  be  deemed  to  be a
               Discretionary Employer Contribution.  Any such contribution shall
               not be deemed to be a Discretionary Employer Contribution for any
               other purpose.

          (b)  Notwithstanding the foregoing,  this Section 12.3 shall not apply
               to any Participant to the extent that such Participant is covered
               under  any other  plan or plans of the  Employer  (determined  in
               accordance  with Sections  414(b),  (c), (m) and (o) of the Code)
               and such other  plan  provides  that the  minimum  allocation  or
               benefit  requirement  will be met by such other plan  should this
               Plan become Top-Heavy.  If such other plan does not provide for a
               minimum  allocation  or  benefit  requirement,  a minimum of five
               percent  (5%) of a  Participant's  Section 415  Compensation,  as
               defined in Section  12.3(a)  above,  shall be provided under this
               Plan.

          (c)  For  purposes  of  this  Article  XII,  the  following  shall  be
               considered as a contribution made by the Employer:

               (i)  Qualified Nonelective Contributions;

               (ii) Before-Tax  Contributions  made by the Employer on behalf of
                    Key Employees; and

               (iii)Discretionary  Employer  Contributions  made by the Employer
                    on behalf of Key Employees and Non-Key Employees.

          (d)  Subject to the provisions of subsection (b), all Non-Key Employee
               Participants  who are employed by the Employer on the last day of
               the Plan Year shall  receive  the  defined  contribution  minimum
               provided under subsection (a). A Non-Key Employee may not fail to
               accrue  a  defined   contribution  minimum  merely  because  such
               Employee was excluded  from  participation  or failed to accrue a
               benefit  because  (i)  his  Compensation  is less  than a  stated
               amount,  or (ii) he failed to make  Before-Tax  Contributions  or
               (iii) he  completed  less  than  one  thousand  (1,000)  Hours of
               Service.

12.4     Impact on Section 415 Maximum Benefits

          For any  Plan  Year in  which  the  Plan  is a Super  Top-Heavy  Plan,
          Sections  3.9(a)(iv) and (v) shall be read by substituting  the number
          1.0 for the number 1.25 wherever it appears therein. For any Plan Year
          in which the Plan is a Top-Heavy Plan but not a Super  Top-Heavy Plan,
          the Plan shall be treated as a Super Top-Heavy Plan under this Section
          12.4,  unless  each  Non-Key  Employee  who is  entitled  to a minimum
          contribution or benefit receives an additional minimum contribution or
          benefit. If the Non-Key Employee is entitled to a minimum contribution
          under  Section  12.3(a),  the Plan  shall  not be  treated  as a Super
          Top-Heavy  Plan under this  Section  12.4 if the minimum  contribution
          satisfies  Section  12.3(a) when four percent (4%) is substituted  for
          three percent (3%) in Section  12.3(a)(i).  If the Non-Key Employee is
          entitled to a minimum  contribution  under Section  12.3(b),  the Plan
          shall not be treated  as a Super  Top-Heavy  Plan  under this  Section

                                     65
<page>
          12.4, if the minimum contribution satisfies Section 12.3(b) when seven
          and one-half percent (7-1/2%) is substituted for five percent (5%).

12.5     Vesting

          If the Plan becomes a Top-Heavy Plan, then, the Vested Percentage of a
          Participant who has at least one (1) Hour of Service with the Employer
          after the Plan becomes  Top-Heavy shall not be less than the following
          Vested  Percentage  of his accrued  benefit,  determined in accordance
          with the following table:

      Period of Service                               Vested Percentage

    Less than 2 years                                             0%
    2 years but less than 3 years                                20%
    3 years but less than 4 years                                40%
    4 years but less than 5 years                                60%
    5 years but less than 6 years                                80%
    6 years or more                                             100%

          Notwithstanding  the foregoing  provision,  each  Participant  with at
          least three (3) Years of Service with the Employer  shall at all times
          have  his  vested  percentage   computed  under  the  greater  of  the
          provisions of this Section 12.5 or the  provisions of Section  4.1(c),
          if applicable.

          For those Plan Years in which the Plan ceases to be a Top-Heavy  Plan,
          the  vesting  schedule  shall be  determined  in  accordance  with the
          provisions of Section  4.1(c),  if applicable,  except that the vested
          percentage of a  Participant's  accrued benefit before the Plan ceased
          to be a Top-Heavy Plan shall not be reduced.

                                       66
<PAGE>

                                 Article XIII --

                            Miscellaneous Provisions

13.1     No Right to Continued Employment

          Neither the  establishment of the Plan, nor any provisions of the Plan
          or of the Trust Agreement  establishing  the Trust Fund nor any action
          of any Named Fiduciary,  Plan Administrator or the Employer,  shall be
          held  or  construed  to  confer  upon  any  Employee  any  right  to a
          continuation of his employment by the Employer.  The Employer reserves
          the right to dismiss any Employee or otherwise  deal with any Employee
          to the same  extent and in the same  manner  that it would if the Plan
          had not been adopted.

13.2     Merger, Consolidation, or Transfer

          The Plan shall not be merged or  consolidated  with,  nor transfer its
          assets  or  liabilities  to,  any other  plan  unless  each  Employee,
          Participant,  Beneficiary  and other person entitled to benefits under
          the Plan, would (if such other plan then terminated) receive a benefit
          immediately after the merger, consolidation or transfer which is equal
          to or greater than the benefit he would have been  entitled to receive
          if  the  Plan  had   terminated   immediately   before   the   merger,
          consolidation or transfer.

13.3     Nonalienation of Benefits

          Except,  effective  August 5,  1997,  to the extent of any offset of a
          Participant's  benefits as a result of any judgment,  order, decree or
          settlement  agreement  provided in Section  401(a)(13)(C) of the Code,
          benefits  payable under the Plan shall not be subject in any manner to
          anticipation,   alienation,   sale,  transfer,   assignment,   pledge,
          encumbrance,  charge,  garnishment,  execution,  or levy of any  kind,
          either  voluntary  or  involuntary  and any attempt to so  anticipate,
          alienate, sell, transfer,  assign, pledge, encumber,  charge, garnish,
          execute,  levy or  otherwise  affect  any  right to  benefits  payable
          hereunder,  shall be void.  Notwithstanding  the  foregoing,  the Plan
          shall  permit the payment of benefits in  accordance  with a qualified
          domestic relations order as defined under Section 414(p) of the Code.

13.4     Missing Payee

          Any other  provision  in the Plan or Trust  Agreement  to the contrary
          notwithstanding,  if the  Trustee  is  unable to make  payment  to any
          Employee,  Participant,  Beneficiary or other person to whom a payment
          is due ("Payee") under the Plan because the identity or whereabouts of
          such Payee cannot be ascertained  after  reasonable  efforts have been
          made to identify or locate such person (including  mailing a certified
          notice of the payment  due to the last known  address of such Payee as
          shown on the records of the Employer), such payment and all subsequent
          payments  otherwise  due to such Payee shall be forfeited  twenty-four
          (24) months  after the date such payment  first  became due.  However,

                                     67
<page>
          such  payment  and  any   subsequent   payments  shall  be  reinstated
          retroactively,  without interest,  no later than sixty (60) days after
          the date on which the Payee is identified and located.

13.5     Affiliated Employers

          All employees of all Affiliated  Employers  shall, for purposes of the
          limitations  in Article  XII and for  measuring  Hours of Service  and
          Periods of Service,  be treated as employed by a single  employer.  No
          employee of an Affiliated  Employer shall become a Participant of this
          Plan unless  employed by the Employer or an Affiliated  Employer which
          has adopted the Plan.

13.6     Successor Employer

          In  the   event  of  the   dissolution,   merger,   consolidation   or
          reorganization of the Employer,  the successor  organization may, upon
          satisfying the provisions of the Trust  Agreement and the Plan,  adopt
          and continue this Plan.  Upon  adoption,  the  successor  organization
          shall  be  deemed  the  Employer  with  all  its  powers,  duties  and
          responsibilities and shall assume all Plan liabilities.

13.7     Return of Employer Contributions

          Any other  provision  of the Plan or Trust  Agreement  to the contrary
          notwithstanding,  upon the Employer's  request and with the consent of
          the Trustee,  a contribution to the Plan by the Employer which was (a)
          made by mistake of fact, or (b) conditioned upon initial qualification
          of the Plan with the Internal Revenue Service, or (c) conditioned upon
          the deductibility by the Employer of such contributions  under Section
          404 of the Code, shall be returned to the Employer within one (1) year
          after:  (i) the payment of a contribution  made by mistake of fact, or
          (ii) the denial of such qualification or (iii) the disallowance of the
          deduction (to the extent disallowed), as the case may be.

          Any such return  shall not exceed the lesser of (A) the amount of such
          contributions (or, if applicable, the amount of such contribution with
          respect  to which a  deduction  is  denied or  disallowed)  or (B) the
          amount of such  contributions  net of a proportionate  share of losses
          incurred by the Plan  during the period  commencing  on the  Valuation
          Date as of  which  such  contributions  are  made  and  ending  on the
          Valuation Date as of which such  contributions are returned.  All such
          refunds  shall be limited in amount,  circumstances  and timing to the
          provisions of Section 403(c) of ERISA.

13.8     Adoption of Plan by Affiliated Employer

          An Affiliated  Employer of the Sponsoring  Employer may adopt the Plan
          and Trust Agreement upon satisfying the  requirements set forth in the
          Trust Agreement.  Upon such adoption,  such Affiliated  Employer shall
          become a  Participating  Affiliate  in the Plan,  which  Plan shall be
          deemed a "single  plan"  within the meaning of Income Tax  Regulations
          Section 1.414(l)-1(b)(1).
                                     68
<page>

          For purposes of Article IX,  Employer  shall mean only the  Sponsoring
          Employer and each  Participating  Affiliate  shall be deemed to accept
          and designate the Named Fiduciaries, Committee, Plan Administrator and
          voter of Trust Fund Units designated by the Sponsoring Employer to act
          on its behalf in accordance  with the provisions of the Plan and Trust
          Agreement.

          The  Sponsoring  Employer  shall solely  exercise for and on behalf of
          such Participating Affiliate the powers reserved to the Employer under
          Articles  IX and XI.  However,  such  Participating  Affiliate  may at
          anytime  terminate  its  future  participation  in the  Plan  for  the
          purposes and in the manner set forth in the Trust Agreement.

13.9     Construction of Language

          Wherever  appropriate  in the Plan,  words used in the singular may be
          read  in the  plural;  words  used  in the  plural  may be read in the
          singular;  and words  importing the  masculine  gender shall be deemed
          equally  to refer to the female  gender.  Any  reference  to a section
          number  shall  refer  to a  section  of this  Plan,  unless  otherwise
          indicated.

13.10    Headings

          The  headings  of  articles  and  sections  are  included  solely  for
          convenience  of reference,  and if there be any conflict  between such
          headings and the text of the Plan, the text shall control.

13.11    Governing Law

          The Plan shall be governed by and construed and enforced in accordance
          with the laws of the State of New York, except to the extent that such
          laws  are  preempted  by the  Federal  laws of the  United  States  of
          America.

     IN WITNESS  WHEREOF,  pursuant to  resolutions of the Board of Directors of
savings Bank of the Finger Lakes, FSB, duly adopted on October 18, 1999, and the
authorization contained in said resolutions, the Plan is hereby executed.

                                           SAVINGS BANK OF THE FINGER LAKES, FSB

                                          By:     /s/ Terry L. Hammond
                                                  ------------------------------
                                                  Executive Vice President & CFO
                                                  (Print Name and Title)

                                       69

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