Document:

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                                                                    Exhibit 10.2

                        AMENDED AND RESTATED CATHAY BANK

                          EMPLOYEE STOCK OWNERSHIP PLAN

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                                TABLE OF CONTENTS

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ARTICLE I      NAME, DEFINITIONS & FUNDING POLICY........................................1
   Section 1.1:  Full Name...............................................................1
   Section 1.2:  Definitions.............................................................1
   Section 1.3:  Other Definitions......................................................11
   Section 1.4:  Funding Policy.........................................................12

ARTICLE II     PARTICIPATION............................................................12
   Section 2.1:  Eligibility Requirements...............................................12
   Section 2.2:  Application For Participation And Beneficiary Designation..............12
   Section 2.3:  Participation..........................................................13
   Section 2.4:  Break In Service Rules For Eligibility Purposes........................13

ARTICLE III    CONTRIBUTIONS............................................................14
   Section 3.1:  Company Contributions..................................................14
   Section 3.2:  Payment Of Contributions To The Trustee................................14
   Section 3.3:  Participant Contributions..............................................14
   Section 3.4:  No Requirement For Profits.............................................14

ARTICLE IV     ALLOCATIONS TO PARTICIPANTS' ACCOUNTS....................................14
   Section 4.1:  Stock Account..........................................................14
   Section 4.2:  Cash Account...........................................................15
   Section 4.3:  Unallocated Stock Account..............................................15
   Section 4.4:  Allocation Of Gains And Losses.........................................15
   Section 4.5:  Allocation Of Company Contributions....................................15
   Section 4.6:  Allocation Of Cash Dividends On Stock..................................16
   Section 4.7:  Allocation Of Stock Dividends..........................................16
   Section 4.8:  Release And Allocation Of Leveraged Stock..............................16
   Section 4.9:  Notice Of Allocations..................................................17
   Section 4.10: Miscellaneous Allocation Rules.........................................18
   Section 4.11: Valuation Of Stock.....................................................19
   Section 4.12: Accounts In General....................................................19
   Section 4.13: Limitation On Annual Additions.........................................19

ARTICLE V     VESTING...................................................................22
   Section 5.1:  Vesting In Accounts....................................................22

ARTICLE VI     DISTRIBUTION OF BENEFITS.................................................23
   Section 6.1:  Distribution Of Benefits...............................................23
   Section 6.2:  Methods Of Distribution................................................23
   Section 6.3:  Timing Of Distributions................................................25
   Section 6.4:  Postponed Retirement...................................................27
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   Section 6.5:  Distributions Due Missing Persons......................................27
   Section 6.6:  Transfers To Another Qualified Plan....................................28

ARTICLE VII   SALE OF STOCK.............................................................29
   Section 7.1:  Option To Sell Shares Of Stock.........................................29
   Section 7.2:  Right Of First Refusal.................................................30

ARTICLE VIII  TOP-HEAVY PLAN LIMITATIONS................................................31
   Section 8.1:  Application Of Top-Heavy Rules.........................................31
   Section 8.2:  Definitions............................................................31
   Section 8.3:  60% Test - Special Rules...............................................34
   Section 8.4:  Minimum Vesting Requirement............................................36
   Section 8.5:  Minimum Contribution Requirement.......................................36

ARTICLE IX    INVESTMENTS...............................................................37
   Section 9.1:  Investment Of Company Contributions....................................37
   Section 9.2:  Leveraged Stock Authorized.............................................37
   Section 9.3:  Certain Nonterminable Provisions.......................................40
   Section 9.4:  Diversification Of Stock...............................................40
   Section 9.5:  Voting Of Stock........................................................41

ARTICLE X     THE COMMITTEE.............................................................42
   Section 10.1: Members................................................................42
   Section 10.2: Committee Action.......................................................42
   Section 10.3: Rights And Duties......................................................43
   Section 10.4: Information............................................................44
   Section 10.5: Compensation, Indemnity And Liability..................................45
   Section 10.6: Administrative Expenses Of The Plan....................................45

ARTICLE XI     AMENDMENT AND TERMINATION................................................45
   Section 11.1: Amendments.............................................................45
   Section 11.2: Discontinuance Of Plan.................................................46
   Section 11.3: Failure To Contribute..................................................47

ARTICLE XII    CLAIMS PROCEDURE.........................................................47
   Section 12.1: Presentation Of Claim..................................................47
   Section 12.2: Notification Of Decision...............................................47
   Section 12.3: Review Of A Denied Claim...............................................48
   Section 12.4: Decision On Review.....................................................49

ARTICLE XIII   MISCELLANEOUS............................................................50
   Section 13.1: Contributions Not Recoverable..........................................50
   Section 13.2: Limitation On Participants' Rights.....................................50
   Section 13.3: Receipt Or Release.....................................................51
   Section 13.4: Nonassignability.......................................................51
   Section 13.5: Governing Law..........................................................51
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   Section 13.6:   Headings.............................................................51
   Section 13.7:   Counterparts.........................................................51
   Section 13.8:   Successors And Assigns...............................................52
   Section 13.9:   Gender And Number....................................................52
   Section 13.10:  Merger, Consolidation Or Transfer Of Plan Assets.....................52
   Section 13.11:  Joinder Of Parties...................................................52
   Section 13.12:  The Trust............................................................52
   Section 13.13:  Participation By Affiliated Companies................................52
   Section 13.14:  Special Requirements For USERRA......................................52
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                        AMENDED AND RESTATED CATHAY BANK

                          EMPLOYEE STOCK OWNERSHIP PLAN

               CATHAY BANCORP, INC. has adopted the following complete amendment
and restatement of its employee stock ownership plan that evidences the plan
portion of an employee stock ownership plan and trust for the benefit of the
qualified employees of the Company. The terms of the Plan are as follows:

                                    ARTICLE I
                       NAME, DEFINITIONS & FUNDING POLICY

               Section 1.1: Full Name. This plan shall be known as the:

                                   CATHAY BANK
                          EMPLOYEE STOCK OWNERSHIP PLAN

It is hereby designated as constituting a defined contribution plan intended to
qualify as a stock bonus plan under Code Section 401 and to constitute an
employee stock ownership plan as described in ERISA Section 407(d)(6)(A) and
Code Section 4975(e)(7). The Plan is designed to invest primarily in qualifying
employer securities as defined in Code Section 409(l). The Trust established in
connection with the Plan shall be known as the:

                                   CATHAY BANK
                         EMPLOYEE STOCK OWNERSHIP TRUST

               Section 1.2: Definitions. As used in this document and in the
Trust, the following words and phrases shall have the following meanings, unless
a different meaning is specified or clearly indicated by the context:

               "Accounts" shall mean, collectively, the Stock Account and the
Cash Account that may be established under the Plan for a Participant. If both
of such Accounts are not established for a Participant, then, as to such a
Participant, "Accounts" shall mean the one of such Accounts that is established
for such Participant.

               "Adjustment Factor" shall mean the cost of living adjustment
factor prescribed by the Secretary of the Treasury under Code Section 415(d) for
years beginning after December 31, 1987, as applied to such items and in such
manner as the Secretary of the Treasury shall provide.

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               "Affiliated Company" shall mean:

                      (a) a member of a controlled group of corporations of
        which the Company is a member;

                      (b) an unincorporated trade or business that is under
        common control with the Company, as determined in accordance with Code
        Section 414(c) and the applicable Regulations;

                      (c) a member of an affiliated service group of which the
        Company is a member, as determined in accordance with Code Section
        414(m) and the applicable Regulations; or

                      (d) any other entity required to be aggregated with the
        Company pursuant to the Regulations under Code Section 414(o).

For these purposes, a "controlled group of corporations" shall mean a controlled
group of corporations as defined in Code Section 1563(a), determined without
regard to Code Sections 1563(a)(4) and 1563(e)(3)(C).

               "Anniversary Date" shall mean the last day of each Plan Year.

               "Article" shall mean an Article of the Plan.

               "Beneficiary" shall mean the person or persons, as the context
requires, last designated by a Participant to receive any benefit specified in
the Plan that is payable upon such Participant's death. If there is no
designated Beneficiary or surviving Beneficiary, the Beneficiary shall be the
Participant's surviving spouse; or, if none, the Participant's surviving
descendants (including adopted persons), who shall take on the principle of
representation; or, if none, the Participant's estate; or, if there is no legal
representative appointed to represent the Participant's estate and if the
Participant's vested interest does not exceed $2,000, a person (or the persons)
selected by the Committee who is related to the Participant by blood, adoption
or marriage.

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

               "Break in Service" shall mean a computation period in which an
Employee has failed to complete more than 500 Hours of Service (unless due to an
authorized, unpaid leave of absence granted by the Company in a
nondiscriminatory manner). The computation period shall be, for eligibility and
vesting purposes, the same computation period used in determining an Employee's
Years of Service. Solely for purposes of determining whether a Break in Service
has occurred in any

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computation period, an individual who is absent from work for maternity or
paternity reasons shall receive credit for the Hours of Service which would
otherwise have been credited to such individual but for such absence (or, in any
case in which such Hours of Service cannot be determined, eight Hours of Service
per work day of such absence). An absence from work for maternity or paternity
reasons means an absence (a) by reason of the pregnancy of the individual, (b)
by reason of a birth of a child of the individual, (c) by reason of the
placement of a child with the individual in connection with the adoption of such
child by such individual, or (d) for purposes of caring for such child for a
period beginning immediately following such birth or placement. The Hours of
Service credited under this provision shall in no event exceed 501 hours, and
they shall be credited (1) in the computation period in which the absence begins
if such crediting is necessary to prevent a Break in Service in that period, or
(2) in all other cases, in the following computation period.

               "Cash Account" shall mean the Account maintained by the Committee
for each Participant that is to be credited with such Participant's share of the
Trust's assets (other than Stock) that are allocated to Participants.

               "Code" shall mean the Internal Revenue Code of 1986, as amended,
and its successors.

               "Committee" shall mean the Committee appointed pursuant to
ARTICLE X.

               "Company" shall mean CATHAY BANCORP, INC.

               "Compensation" shall mean a Participant's Earnings during the
Plan Year, plus, for Plan Years beginning before January 1, 1998, any amount
that is contributed by the Company pursuant to a salary reduction agreement and
that is not includable in such Participant's gross income under Code Sections
125, 402(e)(3), 402(h) or 403(b). In addition to other applicable limitations
set forth in the Plan, and despite any other provision of the Plan, the
Compensation of each Participant shall not exceed the Compensation Limitation
(defined below). The Compensation Limitation is $150,000, as adjusted for
increases in the cost of living in accordance with Code Section 401(a)(17)(B).
The cost-of-living adjustment in effect for a calendar year applies to any
period, not exceeding 12 months, over which Compensation is determined beginning
in such calendar year. If such a determination period consists of fewer than 12
months, the Compensation Limitation will be multiplied by a fraction, the
numerator of which is the number of months in such determination period, and the
denominator of which is 12. If Compensation for any prior determination period
is taken into account in determining a Participant's benefits accruing in the
current Plan Year, the Compensation for such prior

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determination period is subject to the Compensation Limitation in effect for
such prior determination period.

               "Current Obligation" shall mean any obligation of the Trust
arising from the extension of credit to the Trust in connection with the
purchase by the Trust of Stock and that is either (a) payable in cash within one
year from the date of reference pursuant to the terms of the applicable credit
agreement, or (b) designated by the Committee as subject to current payment with
Trust assets available therefore pursuant to the terms of the Plan.

               "Defined Benefit Plan" and "Defined Contribution Plan" shall have
the same meanings as given these terms under ERISA.

               "Earnings" shall mean a Participant's annual "compensation", as
that term is defined in Code Section 415, that is actually paid or made
available to the Participant within the Plan Year. A Participant's Earnings
shall include such Participant's wages, salaries, fees for professional services
and other amounts received (without regard to whether or not an amount is paid
in cash) for personal services actually rendered in the course of employment
with the Company or any Affiliated Company to the extent that the amounts are
includable in gross income under the Code (including, but not limited to,
commissions paid salesmen, compensation for services on the basis of a
percentage of profits, commissions on insurance premiums, tips, bonuses, fringe
benefits, reimbursements, and expense allowances). "Earnings" shall not include:

                      (a) Any contribution made by the Company to a plan of
        deferred compensation to the extent that, before the application of the
        Code Section 415 limitations to that plan, the contributions are not
        includable in the gross income of the Participant for the taxable year
        in which contributed. In addition, the Company's contributions, if any,
        made on behalf of a Participant to a simplified employee pension plan
        described in Code Section 408(k) are not considered Earnings for the
        taxable year in which contributed to the extent such contributions are
        deductible by the Participant under Code Section 219(b)(7).
        Additionally, any distributions from a plan of deferred compensation are
        not considered Earnings, regardless of whether such amounts are
        includable in the gross income of the Participant when distributed.
        However, any amount received by a Participant pursuant to an unfunded
        non-qualified plan may be considered Earnings in the year such amounts
        are includable in the gross income of the Participant.

                      (b) Any amount realized from the exercise of a
        non-qualified stock option, or when restricted stock (or property) held
        by a Participant either becomes freely transferable or is no longer
        subject to a substantial risk of forfeiture.

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                      (c) Any amount realized from the sale, exchange or other
        disposition of stock acquired under a qualified stock option.

                      (d) Any other amount that receives special tax benefits,
        such as premiums for group term life insurance (but only to the extent
        that the premiums are not includable in the gross income of the
        Participant), or contributions made by the Company (whether or not under
        a salary reduction agreement) towards the purchase of an annuity
        contract described in Code Section 403(b) (whether or not the
        contributions are excludable from the gross income of the Participant).

                      (e) Despite the foregoing, "Earnings" with respect to a
        Participant who is a non-resident alien (within the meaning of Section
        7701(b) of the Code) shall mean wages within the meaning of Section
        3401(a) of the Code, but determined without regard to any rules that
        limit the remuneration included in wages based on the nature or location
        of the employment or the services performed.

For Plan Years beginning after December 31, 1997, Earnings paid or made
available during any Plan Year shall include any elective deferral (as defined
in Code Section 402(g)(3)), and any amount that is contributed or deferred by
the Company at the election of the Participant and that is not includable in the
gross income of the Participant by reason of Code Section 125, 132(f)(4)
(effective for Plan Years beginning after December 31, 2000) or 457.

               "Effective Date" shall mean, except as otherwise expressly
provided, January 1, 1997.

               "Eligibility Computation Period" for each Employee shall mean a
12 consecutive month period beginning on such Employee's Employment Commencement
Date.

               "Eligible Participant" shall mean, as of any Anniversary Date,
(a) each Participant who has completed at least 1,000 Hours of Service on such
Anniversary Date, and (b) each Participant who ceased to be an Employee during
the Plan Year ending with such Anniversary Date by reason of his or her
retirement on or after his or her Normal Retirement Date, death, or Total
Disability.

               "Employee" shall mean every common law employee of the Company
and any Affiliated Company that has adopted the Plan with the permission of the
Board of Directors who is classified in the payroll records of the Company or
any such Affiliated Company as a salaried employee. The term "Employee" shall
not include any person who is (a) employed by or through a leasing, temporary,
or similar agency or company, or (b) classified by the Company as a leased
employee (within

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the meaning of Code Section 414(n)(2)) of the Company or any such Affiliated
Company. If any person described in the preceding sentence is determined to be a
common law employee of the Company by court decision or otherwise, such person
shall nonetheless continue to be treated as not being an Employee.

               "Employer" shall mean, with respect to an Employee, the Company,
any Predecessor Employer, and any Affiliated Company.

               "Employment Commencement Date" for each Employee shall mean the
date such Employee is first credited with an Hour of Service.

               "Entry Date" shall mean the first day of the first month or the
first day of the seventh month (whichever applies) of each Plan Year.

               "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended from time to time, and its successors.

               "Fiduciary" shall mean a person who:

                      (a) exercises any discretionary authority, discretionary
        control, or discretionary responsibility respecting the management or
        administration of the Plan;

                      (b) exercises any authority or control respecting
        management or disposition of the Plan's assets; or

                      (c) renders investment advice for a fee or other
        compensation, direct or indirect, with respect to any asset of the Plan,
        or has any authority or responsibility to do so.

               "Financial Institution" shall mean a bank, trust company, or
other financial institution that is regulated by the United States or any State.

               "Freely Tradable Stock" shall mean Stock that, at the time of
reference, is readily tradable on an established market.

               "Hour of Service" shall mean:

                      (a) Each hour for which an Employee was paid by, or
        entitled to payment from, an Employer. Hours under this SUBSECTION (a)
        shall be credited to an Employee for the computation period or periods
        in which the

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        services were performed. Generally, Hours of Service shall be determined
        from the Employer's employment records. Despite the foregoing, if an
        Employee's Compensation is not determined on the basis of certain
        amounts for each hour worked (such as salaried, commission or piece-work
        employees) and if his or her hours are not required to be counted and
        recorded by any federal law (such as the Fair Labor Standards Act), such
        Employee's Hours of Service need not be determined from employment
        records. Instead, such Employee may be credited with 190 Hours of
        Service for each month in which he or she would be credited with at
        least one Hour of Service pursuant to this SUBSECTION (a);

                      (b) Each hour for which an Employee was paid by, or
        entitled to payment from, an Employer on account of a period during
        which no services were performed (irrespective of whether the employment
        relationship had terminated) due to vacation, holiday, illness,
        incapacity (including disability), layoff, jury duty, military duty or
        leave of absence. No more than 501 Hours of Service shall be credited
        under this SUBSECTION (b) for any single continuous period (whether or
        not such period occurs in a single computation period);

                      (c) Each hour for which back pay (irrespective of
        mitigation of damages) is either awarded against, or agreed to by, an
        Employer. The same Hours of Service shall not be credited under either
        SUBSECTION (a) or (b), whichever is applicable, and under this
        SUBSECTION (c). Hours of Service under this subsection (c) shall be
        credited for the computation period(s) to which the award or agreement
        pertains, rather than the computation period in which the award,
        agreement or payment is made; and

                      (d) Hours under SUBSECTIONS (a) through (c) above shall be
        calculated and credited pursuant to Section 2530.200b-2 of the
        Department of Labor Regulations, which is incorporated here by
        reference.

               "Individual Medical Benefit Account" shall have the same meaning
as is given that term under Code Section 415(l)(2).

               "Investment Manager" shall mean a person or entity who (that) is
(a) registered as an investment advisor under the Investment Adviser's Act of
1940, (b) defined as a bank under that Act, or (c) an insurance company
qualified under the laws of more than one state to manage, acquire and dispose
of trust assets, and who has acknowledged in writing that he (she or it) is a
Fiduciary with respect to the Plan.

               "Leveraged Stock" shall mean any Stock that is acquired by the
Trustee on an installment contract from, or with the proceeds of a loan made or
guaranteed by, the Company or other disqualified person within the meaning of
Code Section 4975(e)(2).

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               "Named Fiduciary" shall have the same meaning as under Section
402(a) of ERISA and shall be determined as provided in SECTION 10.3.

               "Net Profits" shall mean, with respect to any Plan Year, the
Company's net income or profit for such Plan Year, as determined on the basis of
the Company's books of account in accordance with generally accepted accounting
principles, before reduction for income taxes or contributions made by the
Company to the Plan.

               "Non-allocation Period" shall mean, with respect to a transaction
for which an election under Code Section 1042(a) is made, the period beginning
on the date of the sale of the Stock and ending on the later of (a) the date
that is ten years after the date of the purchase of the Company Stock, or (b)
the date of the Plan allocation attributable to the final payment of acquisition
indebtedness incurred in connection with such sale.

               "Normal Retirement Age" shall mean a Participant's 65th birthday.

               "Normal Retirement Date" shall mean the first day of the month
that coincides with or immediately follows a Participant's Normal Retirement
Age.

               "Participant" shall mean any Employee who becomes eligible for
participation in accordance with the provisions of the Plan, and, unless the
context indicates otherwise, includes former Participants.

               "Plan" shall mean this document and the plan created by this
document (including, unless the context indicates to the contrary, the Trust
established in connection with the Plan), as it may be amended from time to
time.

               "Plan Year" shall mean the 12-month period that ends on December
31. The Plan Year shall be the "limitation year" for the Plan as defined in the
Code.

               "Predecessor Employer" shall mean any predecessor employer of an
Employee that maintained the Plan.

               "Prohibited Allocation Group" shall mean all persons who, with
respect to a transaction for which an election under Code Section 1042(a) is
made, are within any one or more of the following categories:

                      (a) During the Non-allocation Period, the seller of the
        Stock.

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                      (b) During the Non-allocation Period, any person who is
        related to such seller (within the meaning of Section 267(b) of the
        Code), except that it shall not include any lineal descendant of such
        seller if 5% or less of the shares of Stock (or other assets of the Plan
        in lieu thereof) attributable to such shares is allocated to all such
        lineal descendants. If the allocation provisions of ARTICLE IV would
        result in more than such 5% being so allocated, the Committee may limit
        such allocation to such 5% so that such lineal descendants are not
        included in the Prohibited Allocation Group.

                      (c) Any other person who owns (after the application of
        Section 318(a) of the Code) more than 25% of (i) any class of
        outstanding stock of the Company or any Affiliated Company, or (ii) the
        total value of any class of outstanding stock of the Company or any
        Affiliated Company. For this purpose, such person shall be deemed to own
        all Stock allocated to him or her in this or any other qualified
        employee benefit plan. Such person shall be included in the Prohibited
        Allocation Group if he or she meets such test either (i) at any time
        during the one-year period ending on the date of purchase of the Company
        Stock by the Trust, or (ii) on the date as of which such Stock is
        allocated to Participants.

               "Qualified Holder" shall mean (a) any Participant or any
Beneficiary(ies) or personal representative of a deceased Participant who has
received a distribution of Stock from the Plan), (b) any other party to whom
such Stock is transferred by gift or by reason of death, and (c) any trustee of
an individual retirement account (as defined under Code Section 408) to which
all or any portion of such distributed Stock is transferred pursuant to a
Rollover Contribution.

               "Regulations" shall mean the regulations issued under the Code or
ERISA, or both of them, as well as under any other legislation that applies to
the Plan.

               "Rollover Contribution" shall mean a qualified rollover
contribution as defined (before January 1, 1993) in Code Sections 402(a)(5),
402(a)(6), 402(a)(7), 403(a)(4), 408(d)(3) and 409(b)(3)(C), or (after December
31, 1992) in Code Sections 402(c), 403(a)(4), and 408(d)(3), but shall not
include a rollover contribution that is attributable to contributions made on
behalf of a Key Employee in a Top-heavy Plan, unless such a rollover
contribution is permissible under the Code or applicable Regulations.

               "Section" shall mean, when used in conjunction with some other
reference (such as the Code or ERISA), a section of such other reference. When
not used in conjunction with some other reference, Section shall refer to a
section of the Plan or Trust, as the context requires. References to a Section
include future amendments, and successors, to it.

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               "Secretary" shall mean the Secretary or an Assistant Secretary of
the Committee.

               "Secretary of the Treasury" shall mean the Secretary of the
Treasury, as defined in Code Section 7701(a)(11).

               "Signature Page" shall mean the page(s) at the end of the Plan
entitled "Signature Page."

               "Stock" shall mean common stock issued by the Company (or by a
corporation that is a member of the same controlled group of corporations)
having a combination of voting power and dividend rights equal to or in excess
of:

                      (a) that class of common stock of the Company (or of any
        other such corporation) having the greatest voting power, and

                      (b) that class of common stock of the Company (or of any
        other such corporation) having the greatest dividend rights.

               "Stock Account" shall mean the account maintained by the
Committee for each Participant that is to be credited which such Participant's
share of the Stock held in the Trust that is allocated to Participants.

               "Total Disability" or "Totally Disabled" shall each refer to a
physical or mental impairment that, in the Committee's opinion, (a) is expected
to be either of indefinite duration or result in death, and (b) renders a
Participant unable to satisfactorily perform his or her duties for the Company
or the duties of such other position or job that the Company makes available to
such Participant and for which such Participant is qualified by reason of his or
her training, education or experience. The Committee's opinion must be supported
by the opinion of a qualified physician designated or approved by the Committee.

               "Trust" shall mean the trust established in connection with the
Plan, as it may be amended from time to time.

               "Trustee" shall mean the person(s) or entity, or combination of
them, serving from time to time as the trustee(s) of the Trust.

               "Unallocated Stock Account" shall mean the account maintained by
the Committee for the purpose of holding any Leveraged Stock (until such Stock
is released and allocated pursuant to the applicable provisions of the Plan).

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               "Welfare Benefit Fund" shall have the same meaning as is given
that term in Code Section 419(e).

               "Year of Service" shall mean a computation period in which an
Employee has completed at least 1,000 Hours of Service. The initial computation
period shall be an Employee's Eligibility Computation Period, and shall
thereafter be the 12 consecutive month period beginning on the annual
anniversary date of such Employee's Employment Commencement Date.

               "1% Owner" shall be determined in the same manner as a 5% Owner,
defined below.

               "5% Owner" shall mean a Participant who (a) owns more than 5% of
the outstanding stock (or owns stock possessing more than 5% of the total
combined voting power of all classes of stock) of the Company (or any Affiliated
Company), if the Company (or the Affiliated Company, whichever applies) is a
corporation; or (b) owns more than 5% of the capital or profit interest in the
Company (or the Affiliated Company, whichever applies), if the Company (or the
Affiliated Company, whichever applies) is not a corporation. A similar rule
shall apply to the determination of a "1% Owner."

               Section 1.3: Other Definitions. As used in this document and in
the Trust, the following words and phrases shall have the meanings set forth in
the indicated Sections, unless a different meaning is specified or clearly
indicated by the context:

<TABLE>
<CAPTION>
               Term                                                       Section
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               <S>                                                        <C>
               "Aggregate Account"...........................................8.2
               "Aggregation Group"...........................................8.2
               "Annual Addition"............................................4.13
               "Claimant"...................................................12.1
               "Committee"..................................................10.1
               "Defined Benefit Plan Fraction"..............................4.13
               "Defined Contribution Plan Fraction".........................4.13
               "Determination Date"..........................................8.2
               "Eligible Retirement Plan"....................................6.6
               "Eligible Rollover Distribution...............................6.6
               "Key Employee"................................................8.2
               "Non-Key Employee"............................................8.2
               "Present Value of Accrued Benefit"............................8.2
               "Qualified Election Period"...................................9.4
               "Qualified Participant".......................................9.4
               "Relevant Time"...............................................5.2
</TABLE>

                                      -11-
<PAGE>

<TABLE>
               <S>                                                        <C>
               "Top-heavy Group".............................................8.2
               "Top-heavy Plan"..............................................8.2
               "Total Distribution"`.........................................7.1
               "Valuation Date"..............................................8.2
               "USERRA"....................................................13.14
               "1.0 Rule"...................................................4.13
</TABLE>

Section 1.4....: Funding Policy. The Plan is to be funded primarily through the
Company's contributions as provided for in the Plan. The Trust's assets shall be
invested as provided for in the trust document in an effort to safely maximize
potential retirement benefits (consistent with the Plan's designation as an
employee stock ownership plan), which shall be paid to Participants and
Beneficiaries as provided for in the Plan.

                                   ARTICLE II
                                  PARTICIPATION

               Section 2.1: Eligibility Requirements.

               (a) Each Employee shall become eligible to participate in the
Plan on the Entry Date coincident with or next following the date on which such
Employee shall have completed two Years of Service, provided that he or she is
still an Employee on such Entry Date.

               (b) Despite any other provision of the Plan, any Participant who
is included in a unit of employees covered by a collective bargaining agreement
wherein retirement benefits were the subject of good faith bargaining (within
the meaning of Code Section 410(b)(3)(A)) shall for the Plan Year(s) of such
inclusion, cease to share in future contributions to the Plan, unless such
collective bargaining agreement expressly provides for participation in the
Plan; provided, however, that as to any benefits already earned, such
Participant shall remain a Participant, subject to all the terms of the Plan.

               Section 2.2: Application For Participation And Beneficiary
Designation.

               (a) Each Employee who becomes eligible to participate in the Plan
shall be given an application for participation. That application shall (i)
specify the beginning date of such Employee's participation, (ii) contain such
Employee's acceptance of the benefits of the Plan and Trust and his or her
agreement to be bound by the terms of the Plan and Trust, and (iii) allow such
Employee to designate the Beneficiary whom he or she desires to receive benefits
in the event of his or her death. A Participant may, from time to time, change
his or her designated Beneficiary by filing a new written designation with the
Committee. The Company,

                                      -12-
<PAGE>

the Trustee, and the Committee may rely upon the designation of a Beneficiary
that was last filed in accordance with the Plan.

               (b) Despite the provisions of SUBSECTION (a) above, a married
Participant's Beneficiary shall in all events be such Participant's surviving
spouse, unless such spouse consents to such Participant's designation of a
Beneficiary other than such spouse. A spouse's consent to such a designation
must satisfy the following requirements: (i) it must be in writing; (ii) it must
acknowledge the effect of the Participant's designation of a Beneficiary other
than the spouse; and (iii) it must be witnessed by a designated Plan
representative or a notary public.

               Section 2.3: Participation. The participation of a Participant in
the Plan shall begin as of his or her Entry Date and shall continue until the
Participant's entire benefit has been distributed in accordance with the Plan's
terms. A Participant (or his or her Beneficiary) may not receive any
distribution of benefits except as provided for in the Plan.

               Section 2.4: Break In Service Rules For Eligibility Purposes.

               (a) Except as otherwise provided in this Section, all Years of
Service of an Employee shall be counted in determining such Employee's
eligibility to participate in the Plan.

               (b) In the case of any Employee who has incurred a Break in
Service, such Employee's Years of Service that were completed before such Break
in Service shall not be counted until he or she has completed a Year of Service
after such Break in Service.

               (c) This subsection shall apply to any Participant who does not
have any nonforfeitable right to any accrued benefit that is attributable to the
Company's contributions. Such a Participant's Years of Service before any period
of consecutive Breaks in Service shall not be counted if the number of such
consecutive Breaks in Service within such period equals or exceeds the greater
of (i) five or (ii) the aggregate number of such Participant's Years of Service
before such period. Such aggregate number of Years of Service shall not include
any Year of Service that is disregarded under the preceding sentence by reason
of such Participant's prior Breaks in Service.

               (d) In addition to the foregoing, in the case of any Employee who
incurs a Break in Service before satisfying the Plan's eligibility requirements,
such Employee's Years of Service that were completed before such Break in
Service shall not be counted. Further, a Participant who is re-employed shall
participate immediately upon the date of his or her re-employment.

                                      -13-
<PAGE>

                                   ARTICLE III
                                  CONTRIBUTIONS

               Section 3.1: Company Contributions. The Company has previously
made substantial contributions to the Trust. Subject to the Plan's other
provisions, for each Plan Year in which the Plan is in effect, the Company shall
contribute to the Trust, out of its current or accumulated Net Profits, such
amount, if any, as shall be determined by the Company. Despite the foregoing,
the Company shall be obligated to contribute such amount as shall be necessary
to provide the Trust with funds sufficient to pay any Current Obligation
(including principal, interest, and any acquisition charges) incurred for the
purpose of acquiring Stock. The Company's contribution shall be paid in cash,
Stock, or such other assets as the Company may determine; provided, however,
that the Company shall contribute sufficient cash assets to the extent necessary
to pay any Current Obligation. Furthermore, despite the foregoing, the Company's
contributions are conditioned upon their deductibility under the Code.

               Section 3.2: Payment Of Contributions To The Trustee. All
payments of the Company's contributions shall be made directly to the Trustee
and may be made on any date(s) selected by the Company. Despite the foregoing,
the Company's total contribution for each Plan Year must be paid on or before
the date on which the Company's federal income tax return is due, including any
extensions of time obtained for the filing of such return.

               Section 3.3: Participant Contributions. A Participant may not
make nondeductible, voluntary contributions to the Plan. Similarly, a
Participant may not make a Rollover Contribution to the Plan or a
trustee-to-trustee transfer described in Code Section 401(a)(31).

               Section 3.4: No Requirement For Profits. Despite any other
provision of the Plan, the Company may make all contributions to the Plan for
any Plan Year without regard to whether the Company has any Net Profits for the
taxable year or years ending with or within such Plan Year.

                                   ARTICLE IV
                      ALLOCATIONS TO PARTICIPANTS' ACCOUNTS

               Section 4.1: Stock Account. The Committee shall open and maintain
a Stock Account in the name of each Participant, and it shall be credited or
charged with any Stock allocable to such Participant as set forth below.

                                      -14-
<PAGE>

               Section 4.2: Cash Account. The Committee shall open and maintain
a Cash Account in the name of each Participant, and it shall be credited or
charged with any amount allocable to such Participant (other than Stock) as set
forth below.

               Section 4.3: Unallocated Stock Account. At such time as any
Leveraged Stock is held in the Trust, the Committee shall open and maintain an
Unallocated Stock Account, and it shall be credited with any unallocated
Leveraged Stock until such Stock is released and allocated as set forth below.

               Section 4.4: Allocation Of Gains And Losses. Subject to SECTION
4.5(a)(i) below, as of each Anniversary Date (but before any allocation is made
of the Company's contributions, if any, for the Plan Year ending on such
Anniversary Date, if, and to the extent, made prior to such date), the Committee
shall credit any income and investment gains (whether realized or unrealized) of
the Trust other than with respect to Stock, and shall charge any losses (whether
realized or unrealized) from such assets and unallocated expenses of the Trust,
to the Participants' Cash Accounts in the same proportion that the balance in
each such Cash Account as of such Anniversary Date bears to the total balance in
all Cash Accounts as of such Anniversary Date. In determining the unrealized
investment gains and losses to be credited or charged as of each Anniversary
Date pursuant to this Section, the Trustee shall value the assets of the Trust
at their fair market value as of each such Anniversary Date.

               Section 4.5: Allocation Of Company Contributions.

               (a) Subject to the limitations contained elsewhere in the Plan,
as of each Anniversary Date, the Company's contribution (if any) made on account
of the Plan Year ending on such Anniversary Date shall be allocated as follows:

                   (i) Any cash contribution shall be applied first to pay any
        Current Obligation of the Trust (as it becomes due) incurred for the
        purpose of acquiring Stock, and any excess remaining after such
        application (and any other asset contributed that is not Stock) shall,
        at the election of the Committee, either (A) be used to prepay any loan
        obligation of the Trust that arose in connection with the Trust's
        purchase of Stock, or (B) be allocated to the Cash Accounts of the
        Eligible Participants in accordance with the allocation formula set
        forth in SUBSECTION (b) below. Subject to SECTION 4.6 below, for the
        purpose of determining the method of allocation of the excess, the
        Current Obligation shall be deemed to have been paid first with cash
        dividends, and, if any portion of the Current Obligation shall remain
        unpaid after the application of all the cash dividends, the balance due
        shall be deemed paid with Company cash contributions for the Plan Year.

                                      -15-
<PAGE>

                   (ii) Any contribution of Stock shall be allocated to the
        Stock Accounts of the Eligible Participants in accordance with the
        allocation formula set forth in SUBSECTION (b) below.

               (b) For purposes of this Article, any item to be allocated
pursuant to the formula set forth in this SUBSECTION (b) shall be allocated to
the Cash Accounts, or Stock Accounts, as the case may be, of the Eligible
Participants in the same ratio as each Eligible Participant's number of Units
bears to the total number of Units of all such Eligible Participants. For
purposes of this SUBSECTION (b), each Eligible Participant shall be credited
with one Unit for each full $100 of Compensation and with one Unit for each Year
of Service.

               Section 4.6: Allocation Of Cash Dividends On Stock. Any cash
dividends received by the Trustee on account of the Stock shall, at the
discretion of the Committee, either (a) be used to make any payment on any
installment contract or loan used to acquire Leveraged Stock, or (b) be
allocated to the Participants' Cash Accounts and the Unallocated Stock Account
in proportion to the shares of Stock held in the Participants' Stock Accounts
and the Unallocated Stock Account, respectively, as of the record date of such
dividend. The Committee may not elect to use method (a) above unless the Stock
is allocated in a manner in compliance with Code Section 404(k)(2)(B).

               Section 4.7: Allocation Of Stock Dividends. Any Stock received by
the Trustee as a stock dividend (or stock split or as a result of a
reorganization or other recapitalization of the Company) shall be credited to
the Participants' Stock Accounts and to the Unallocated Stock Account in
proportion to the shares of Stock held therein as of the record date of such
dividend. Any cash received by the Trustee in lieu of fractional shares in
connection with such a stock dividend shall be allocated as provided in SECTION
4.6(b) above.

               Section 4.8: Release And Allocation Of Leveraged Stock.

               (a) All Leveraged Stock acquired by the Trust shall be held in
the Unallocated Stock Account until released and allocated in accordance with
the provisions of this Section. As of each Anniversary Date, Leveraged Stock
acquired in a particular transaction shall be released from the Unallocated
Stock Account as follows:

                   (i) Subject to the requirements of Treasury Regulation
        Section 54.4975-7(b)(8)(ii) and SUBSECTION (ii) below, for each Plan
        Year until any loan or installment obligation that was incurred to
        purchase Leveraged Stock (a "loan") is fully repaid, the number of
        shares of Leveraged Stock released from the Unallocated Stock Account
        shall equal the number of unreleased shares immediately before such
        release for the then current Plan Year multiplied by a fraction, the
        numerator of which is the amount of principal

                                      -16-
<PAGE>

        paid on such loan for such Plan Year and the denominator of which is the
        sum of such numerator plus the principal to be paid on such loan for all
        future years during the duration of the term of such loan (determined
        without reference to any possible extensions of renewals thereof).
        Despite the foregoing, in the event such loan shall be repaid with the
        proceeds of a subsequent loan, such repayment shall not operate to
        release all such Leveraged Stock but rather such release shall be
        effected pursuant to the foregoing provisions of this Section on the
        basis of payments of principal on such substitute loan.

                   (ii) To the extent that SUBSECTION (i) is not applicable by
        reason of Treasury Regulation Section 54.4975-7(b)(8)(ii), or if the
        Committee irrevocably so elects at the time of the first payment on any
        loan, then SUBSECTION (i) shall be applied with respect to all payments
        on such loan by deeming all references to "principal" therein to be
        references to "principal and interest."

               (b) The Committee shall specify, and advise the Trustee with
respect to:

                   (i) the amount (if any) of the Company's contribution that is
        to be applied (together with the earnings thereon) to pay any Current
        Obligation, and

                   (ii) the amount (if any) of cash dividends held pursuant to
        SECTION 4.6 that is to be applied to pay any Current Obligation.

               (c) Subject to the last sentence of SECTION 4.6, as of each
Anniversary Date, the value of any Leveraged Stock released from the Unallocated
Stock Account for such Plan Year shall be allocated among the Eligible
Participants in the same proportion as such Participants would have received
allocations pursuant to SECTION 4.5, as if such released Stock had been
contributed during such Plan Year.

               (d) It is intended that the preceding provisions shall be applied
and construed in a manner consistent with the requirements and provisions of
Treasury Regulation Section 54.4975-7(b)(8).

               Section 4.9: Notice Of Allocations.

               (a) After the close of each Plan Year, the Committee shall notify
each Participant as to the allocations made during the Plan Year pursuant to
this ARTICLE IV, which notice shall include the information set forth below.

               (b) The balance in the Participant's Cash Account and the number
of shares held in the Participant's Stock Account as of the most recent
Anniversary Date;

                                      -17-
<PAGE>

               (c) The amount of Company Contributions and Leveraged Stock (if
any) allocated to the Participant's Accounts for that Plan Year;

               (d) The adjustment to the Participant's Accounts to reflect the
Participant's share of undistributed dividends held at year end (if any) and the
net income (or loss) of the Trust for that Plan Year;

               (e) The new balance in the Participant's Cash Accounts and the
number of shares held in the Participant's Stock Account, as of the Anniversary
Date of that Plan Year; and

               (f) Such other information as may be required by the applicable
Regulations.

               Section 4.10: Miscellaneous Allocation Rules.

               (a) Allocations of all assets other than Stock shall be made on
the basis of, and expressed in terms of, dollar value. Allocations of Stock
shall be made on the basis of the number of shares of Stock (including
fractional shares).

               (b) The Committee may establish accounting procedures for the
purpose of making the allocations, valuations and adjustments to Participants'
Accounts provided for in this Article IV. From time to time, the Committee may
modify such accounting procedures for the purpose of achieving equitable,
nondiscriminatory, and administratively feasible allocations among the Accounts
of Participants in accordance with the general concepts of the Plan and the
provisions of this Article IV.

               (c) Despite any other provision of the Plan, if shares of Stock
are purchased by the Trust in a transaction for which an election pursuant to
Code Section 1042(a) is made, none of such shares, nor any other assets of the
Plan in lieu thereof, shall accrue for the benefit of or be allocated, directly
or indirectly, under this Plan or any other qualified employee benefit plan of
the Company or any Affiliated Company, to the Accounts of any member of the
Prohibited Allocation Group. In the event that any member of the Prohibited
Allocation Group is a Participant in the Plan, (i) if there are no Company
contributions to be allocated as of an Anniversary Date other than shares of
Stock and/or other assets which are subject to this provision, such Participant
shall receive no allocation thereof, (ii) no portion of the Cash Account balance
of such Participant may be used to acquire shares of Stock and/or other assets
which are subject to this provision, and (iii) if there are Company
contributions to be allocated as of an Anniversary Date and such includes both
shares of Stock and/or other assets which are subject to this provision and
share and/or other assets which are not subject to this provision, the
allocation shall be made so that such Participant receives no allocation of
Stock or other assets whatsoever to the extent of the percentage of Compensation
received by the other Participants attributable to Stock and/or other assets
which are subject to this provision, provided that if there is additional Stock
and/or other assets to be

                                      -18-
<PAGE>

allocated, then such additional allocations shall be made to all Participants as
otherwise provided in the Article IV. All allocations of Stock and other assets
shall in all respects comply with the provisions of Section 409(n) of the Code
and the Regulations thereunder, all of which are incorporated herein by
reference.

               Section 4.11: Valuation Of Stock.

               (a) If, on any Anniversary Date or other valuation date required
under the terms of the Plan, Trust, or Regulation Section 54.4975-11(d)(5), the
Stock is not Freely Tradable Stock, the Company shall furnish the Committee with
a certificate of value setting forth the fair market value of the Stock as of
such date. Such valuation shall be made (i) in good faith and in accordance with
Regulation Section 54.4975-11(d)(5) and ERISA Section 3(18); and (ii) by an
independent appraiser who satisfies the requirements of the Regulations under
Code Section 170(a)(1). The Committee shall use such value for all purposes
under the Plan until a new certificate of value is furnished to the Committee,
or until the Stock becomes Freely Tradable Stock. If the Stock is Freely
Tradable Stock, the Committee shall use the market price of the Stock as its
value. This certificate of value shall be furnished to Qualified Holders of
Stock that has been distributed to a terminated Participant or a Beneficiary.

               (b) Any Stock acquired by the Trust with cash shall be valued
initially at the purchase price paid by the Trust. All such initial valuations
are subject to revaluation as of any subsequent date of valuation that may apply
pursuant to the terms of this Plan and/or applicable law.

               Section 4.12: Accounts In General.

               (a) The credits made to a Participant's Accounts shall not vest
in such Participant any right, title or interest in the Trust, except to the
extent, at the time or times, and upon the terms and conditions set forth in the
Plan. Neither the Company, the Trustee, nor the Committee, to any extent,
warrant, guarantee or represent that the value of any Participant's Accounts at
any time will equal or exceed the amount previously allocated or contributed to
such Accounts.

               (b) If at any time there shall be allocated to a Participant's
Stock Accounts more than one class of Stock, the Committee shall direct the
Trustee with respect to whether sub-accounts for each such class of stock shall
be maintained, and if so, all references in this Plan to Stock Accounts shall
include and refer to all such sub-accounts.

               Section 4.13: Limitation On Annual Additions.

               (a) The following limitations shall apply to the allocations to
each Participant's Accounts in any Plan Year:

                                      -19-
<PAGE>

                   (i) As used in the Plan, a Participant's "Annual Addition"
        shall mean the sum for any Plan Year of:

                        (A) Such Participant's share of the Company's
               contributions; plus

                        (B) Such Participant's share of any forfeiture; plus

                        (C) Such Participant's allocable share of the Company's
               contributions to any Individual Medical Benefit Account; and plus

                        (D) With respect to any Participant who is a Key
               Employee, any amount derived from the Company's contributions
               paid or accrued after December 31, 1985 in taxable years ending
               after such date, and that is attributable to post-retirement
               medical benefits allocated to such Participant's account under a
               Welfare Benefit Fund maintained by the Company.

                   (ii) Despite the forgoing, if, for any Plan Year, (A) there
        is Leveraged Stock and (B) no more than one-third of the Company's
        contributions are allocated to highly compensated employees (as defined
        in Code Section 414(q)), then the Annual Addition of a Participant shall
        not include (A) his or her share of the Company's contributions for such
        Plan Year that are deductible under Code Section 404(a)(9)(B), (B) his
        or her share of forfeitures of Stock acquired with the proceeds of a
        loan or installment obligation described in Code Section 404(a)(9)(A),
        or (C) Leveraged Stock that is released from the Unallocated Stock
        Account in accordance with SECTION 4.8.

                   (iii) Any excess amount applied under SUBSECTION (c) below in
        a Plan Year to reduce the Company's contributions on behalf of any
        Participant shall be considered to be an Annual Addition for such
        Participant for such Plan Year.

                   (iv) Subject to the adjustments set forth below, during any
        Plan Year the maximum Annual Addition for any Participant shall in no
        event exceed the lesser of:

                        (A) $30,000, as adjusted by the Adjustment Factor; or

                        (B) 25% of the Participant's Earnings for such Plan
               Year.

                   (v) The earnings limitation referred to in SUBSECTION
        (a)(iv)(B) above shall not apply to (A) any contribution for medical
        benefits (within the meaning of Code Section 419A(f)(2)) after
        separation from service

                                      -20-
<PAGE>

        that is otherwise treated as an Annual Addition, or (B) any amount
        otherwise treated as an Annual Addition under Code Section 415(l)(1).

               (b) For Plan Years beginning before January 1, 2000, the
following additional limitations shall apply to any Participant when such
Participant, in addition to his or her participation in the Plan (and any
Welfare Benefit Fund), is also a participant in a Defined Benefit Plan
maintained by the Company or an Affiliated Company:

                   (i) The amount of (A) the Annual Additions to such
        Participant's account(s) or (B) such Participant's normal retirement
        benefit in any such plan(s) shall be reduced by each such plan's
        committee to the extent necessary to prevent the sum of the Defined
        Benefit Plan Fraction (defined below) and the Defined Contribution Plan
        Fraction (defined below) for any such year from exceeding 1.0 (the "1.0
        Rule") (benefits under Welfare Benefit Funds shall be reduced first,
        then benefits under profit sharing plans, then benefits under other
        Defined Contribution Plans, and, finally, benefits under Defined Benefit
        Plans).

                   (ii) For the purpose of applying the 1.0 Rule, the Defined
        Benefit Plan Fraction and the Defined Contribution Plan Fraction shall
        be applied in a manner consistent with the provisions of Code Section
        415 and the Regulations under it.

                   (iii) As used above, "Defined Benefit Plan Fraction" shall
        mean a fraction, the numerator of which is the Participant's projected
        annual benefit under the Defined Benefit Plan (determined as of the end
        of the plan year for such plan), and the denominator of which is the
        lesser of:

                        (A) 1.25 multiplied by the dollar limitation in effect
               for such plan year (determined under Code Section 415(b)(1)(A));
               or

                        (B) 1.4 multiplied by 100% of such Participant's
               average Earnings for his or her highest three consecutive years,
               including such plan year (determined under Code Section
               415(b)(1)(B)).

                   (iv) As used above, "Defined Contribution Plan Fraction"
        shall mean a fraction, the numerator of which is the sum of the annual
        additions to the Participant's account(s) as of the end of the Plan
        Year, and the denominator of which is the sum of the lesser of the
        following amounts determined for such Plan Year and for each of such
        Participant's prior years of service with the Company:

                        (A) 1.25 multiplied by the dollar limitation in effect
               for such Plan Year (determined under Code Section 415(c)(1)(A),
               but without regard to Code Section 415(c)(6)); or

                                      -21-
<PAGE>

                         (B) 1.4 multiplied by 25% of such Participant's
               Earnings for such Plan Year (determined under Code Section
               415(c)(1)(B), or Code Section 415(c)(7), if applicable).

               (c) If, for any Plan Year, it is necessary to limit the Annual
Addition of any Participant pursuant to SUBSECTIONS (a) or (b) above, the
following reallocations shall be made:

                      (i) First, the amount of such Participant's nondeductible,
        voluntary contributions for that Plan Year that are included in his or
        her Annual Addition shall be refunded to him or her;

                      (ii) Second, the amount of the Company's contributions,
        inclusive of forfeitures, that is allocable to such Participant and that
        cause such Participant's Annual Addition to exceed the applicable
        limitation shall, instead, be allocated to all other Participants who
        are not subject to this limitation, in proportion to their Compensation
        for such Plan Year; and

                      (iii) Third, if the amount of the Company's contributions,
        inclusive of forfeitures, is so great as to cause all Participants for
        such Plan Year to be subject to the limitations of this Section, then
        the excess of the Company's contributions that cannot be allocated for
        such Plan Year shall be held unallocated in a suspense account and
        applied against and reduce the Company's future contributions.

               (d) If a suspense account is in existence at any time during a
Plan Year pursuant to SUBSECTION (c)(iii) above, it shall not participate in the
Trust's income, gains and losses.

               (e) The limitations of this Section with respect to any
Participant who, at any time, has been a participant in any other Defined
Contribution Plan (whether or not terminated) or in more than one Defined
Benefit Plan (whether or not terminated) maintained by the Company or by an
Affiliated Company shall apply as if all such Defined Contribution Plans or all
such Defined Benefit Plans in which the Participant has been a participant were
one plan.

                                    ARTICLE V
                                     VESTING

               Section 5.1: Vesting In Accounts. Each Participant shall at all
times be 100% vested in his or her Accounts.

                                      -22-
<PAGE>

                                   ARTICLE VI
                            DISTRIBUTION OF BENEFITS

               Section 6.1: Distribution Of Benefits.

               (a) Benefits become distributable to a Participant or to the
Beneficiary of a deceased Participant upon the first to occur of (i) the
Anniversary Date that coincides with or first follows such Participant's Normal
Retirement Date, Total Disability, or death, or (ii) the third Anniversary Date
that follows the date a Participant ceases to be an Employee prior to his or her
Normal Retirement Date for a reason other than Total Disability or death. Such
benefits shall be the vested amounts credited to his or her Accounts as of the
Anniversary Date that coincides with or immediately precedes the first
distribution of his or her benefits, adjusted as of such Anniversary Date if
required by ARTICLE IV. However, a Participant (or the Beneficiary of a deceased
Participant) must make a claim for such Participant's benefits prior to any
distribution. Despite the foregoing, the Committee, in its sole discretion, may
waive the claim requirement if such Participant or Beneficiary is unable to
submit a claim.

               (b) Despite the foregoing provisions, the Committee may, in its
sole discretion, elect to pay a Participant who ceases to be an Employee prior
to his or her Normal Retirement Date for a reason other than his or her death or
Total Disability an immediate lump sum distribution of the amount specified in
SUBSECTION (a) above. The Participant's consent to such a distribution is
required if the portion of such distribution representing the vested portion in
his or her Accounts is (or ever has been) in excess of $3,500 (or $5,000, for
Plan Years beginning after August 5, 1997).

               Section 6.2: Methods Of Distribution.

               (a) When a Participant's benefits become distributable, the
Committee shall with reasonable promptness direct the Trustee to distribute such
Participant's benefit as follows:

                   (i) If a Participant's benefits become distributable by
        reason of his or her death, the benefit shall be distributed to such
        deceased Participant's Beneficiary as an immediate lump sum.

                   (ii) If a Participant's benefits become distributable for a
        reason other than his or her death, the benefit shall be distributed
        with such Participant's consent as an immediate lump sum or in
        installments as set forth below.

                        (A) The Participant may elect, by completing an
               appropriate form furnished by the Committee, that his or her
               benefits be distributed as follows:

                                      -23-
<PAGE>

                             (1) The Participant may elect that his or her
                      benefits be distributed in up to five equal or nearly
                      equal annual installments, paid monthly, quarterly, or
                      annually.

                             (2) If the fair market value of a Participant's
                      Stock Account exceeds $500,000 multiplied by the
                      Adjustment Factor as of the date distribution is required
                      to begin under SECTION 6.3 below, the Participant may
                      elect that his or her benefits be distributed in
                      substantially equal annual payments over a period of five
                      years plus an additional one year (up to an additional
                      five years) for each $100,000 increment (or fraction of
                      such increment) by which the value of the Participant's
                      Stock Account exceeds $500,000.

                             (3) In addition, the Participant may elect that his
                      or her benefits shall be paid in equal or nearly equal
                      monthly, quarterly, semi-annual, or annual installments
                      over a period not exceeding the life expectancy of the
                      Participant, or the joint life and last survivor
                      expectancy of the Participant and his or her Beneficiary.
                      The expected return multiples of Section 1.72-9 of the
                      Regulations under the Code shall be used to determine such
                      life expectancy.

                         (B) Despite the foregoing, if the vested amount
               credited to such Participant's Accounts is not (nor ever has
               been) in excess of $3,500 (or $5,000, for Plan Years beginning
               after August 5, 1997), the Committee may direct the Trustee to
               distribute such benefit as an immediate lump sum, without such
               Participant's consent.

                   (iii) If a Participant's benefits become distributable for a
        reason other than his or her death, and if such Participant dies before
        his or her entire benefits have been distributed, his or her Beneficiary
        shall receive a death benefit equal to the balance of the remaining
        installments (if any) or deferred lump sum (if any) due such deceased
        Participant.

                   (iv) Despite any other provision of the Plan, the benefits in
        the Participant's Stock Account shall be distributed in the form of
        Stock.

                   (v) Despite the foregoing provisions, the Committee may at
        any time, with the consent of a Participant or his or her Beneficiary,
        direct the Trustee to accelerate any installment payment to such
        Participant or Beneficiary or to reduce the period over which future
        installments are to be made, in which latter event the Trustee shall
        adjust the amount of such installments accordingly. In addition, a
        Participant may at any time withdraw any or all of his or her
        undistributed benefit, and a Participant's Beneficiary shall, unless
        such Participant provided otherwise, have a similar withdrawal

                                      -24-
<PAGE>

        right. If less than all of the undistributed benefit is withdrawn, the
        remaining installment payments shall be adjusted accordingly.

                   (vi) Notwithstanding any other provision in this Section, if
        a distribution of a Participant's benefit consists of more than one
        class of Leveraged Stock, the Participant must receive substantially the
        same proportion of each such class.

               (b) The complete distribution of a Participant's benefit as
provided for above shall constitute full payment and satisfaction of any
obligation of the Company, the Trustee or the Committee to such Participant or
to the Beneficiary of a deceased Participant.

               (c) If a distribution is one to which Code Sections 401(a)(11)
and 417 do not apply, such distribution may commence fewer than 30 days after
the notice required under Section 1.411(a)-11(c) of the Regulations under the
Code is given, provided that:

                   (i) the Committee clearly informs the Participant that the
        Participant has a right to a period of at least 30 days after receiving
        the notice to consider the decision of whether or not to elect a
        distribution (and, if applicable, a particular distribution option), and

                   (ii) the Participant, after receiving the notice,
        affirmatively elects a distribution.

               Section 6.3: Timing Of Distributions.

               (a) The following provisions shall govern the timing of the
distribution of a Participant's benefit.

               (b) If a Participant's benefits become distributable because of
his or her death or Total Disability, such benefits shall begin to be
distributed as soon as is administratively practical following the Committee's
receipt of written proof of such Participant's death or Total Disability. If a
Participant's benefits become distributable for a reason other than his or her
death or Total Disability, such Participant's benefits shall begin to be
distributed as soon as is administratively practical after the date on which
such Participant's benefits became distributable. Despite the foregoing, and
subject to SUBSECTIONS (c) and (d) below, a Participant's benefit must begin to
be distributed no later than 60 days after the latest of the close of the Plan
Year in which:

                   (i) the Participant attained age 65 (or Normal Retirement
        Age, if earlier);

                   (ii) occurred the tenth anniversary of the year in which the
        Participant began participation in the Plan; or

                                      -25-
<PAGE>

                   (iii) the Participant ceased to be an Employee.

Despite the foregoing, a Participant may elect a later date on which the
distribution of his or her benefit is to begin, in a manner consistent with the
applicable Regulations. Any failure by a Participant (or, if he or she is
married, such Participant's spouse in the event of such Participant's death) to
consent to an immediate distribution of his or her benefit (provided that such
benefit is otherwise then immediately distributable pursuant to the foregoing
provisions) shall be deemed to be an election to defer distribution to the later
of age 62 or such Participant's Normal Retirement Age.

               (c) Despite any other provision of the Plan, one of the following
provisions shall apply:

                   (i) A Participant's benefit shall be distributed to him or
        her not later than April 1 of the calendar year following the later of
        (A) the calendar year in which the Participant attains age 70 1/2, or
        (B) the calendar year in which the Participant retires, if such
        Participant is not a 5% Owner with respect to the Plan Year ending in
        the calendar year in which he or she attains age 70 1/2; or

                   (ii) Alternatively, distributions to a Participant must begin
        no later than the date determined under SUBSECTION (c)(i) above and must
        be made, in accordance with the applicable Regulations, over the life of
        the Participant or over the lives of such Participant and his or her
        designated Beneficiary (or over a period not extending beyond the life
        expectancy of the Participant or the life expectancy of the Participant
        and his or her designated Beneficiary).

               (d) If a Participant dies before his or her entire interest has
been distributed to him or her, the remaining portion of such Participant's
interest must be distributed at least as rapidly as under the method of
distribution being used as of the date of the Participant's death.

               (e) If a Participant dies before distribution of his or her
benefit has begun, the entire benefit of such Participant must be distributed
within five years after his or her death.

               (f) For purposes of SUBSECTION (e) above, any portion of a
Participant's benefit that is payable to or for the benefit of his or her
Beneficiary shall be treated as distributed on the date on which such
distribution begins if:

                   (i) such portion will be distributed in accordance with the
        applicable Regulations over such Beneficiary's life (or over a period
        not extending beyond such Beneficiary's life expectancy), and

                   (ii) such distribution must begin not later than the date
        that is one year after the date of such Participant's death (or such
        later date as the Secretary of the Treasury may by Regulations
        prescribe). However, if such

                                      -26-
<PAGE>

        Beneficiary is the Participant's surviving spouse, then the date on
        which the distribution is required to begin shall be not later than the
        date on which the Participant would have attained age 70 1/2, and if
        such spouse dies before the distribution to him or her begins, this
        subsection shall be applied as if such spouse were the Participant.

               (g) For purposes of SUBSECTION (f) above, the life expectancy of
a Participant and his or her spouse (other than in the case of life annuity) may
be redetermined on an annual or less frequent basis, and under Regulations
prescribed by the Secretary of the Treasury, any amount paid to a child of a
Participant shall be treated as if it had been paid to such Participant's
surviving spouse if such amount will become payable to such spouse upon such
child attaining majority (or any other designated event permitted under the
applicable Regulations).

               (h) Despite the foregoing provisions, the Committee shall not
permit any Participant to receive his or her benefits under a method of
distribution that violates the Regulations under Code Section 401(a)(9),
including the minimum distribution incidental benefit requirements of proposed
Regulation 1.401(a)(9)-2, or any successor or final Regulation.

               (i) With respect to distributions under the Plan made for
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 on January 17,
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 as may be specified in guidance published by the Internal Revenue
Service.

               Section 6.4: Postponed Retirement. If a Participant continues to
be an Employee beyond his or her Normal Retirement Date, his or her
corresponding participation in the Plan shall likewise continue. In such a case,
to the extent permitted by law and the applicable Regulations, the distribution
of such Participant's benefits will be postponed until he or she actually ceases
to be an Employee. Such Participant's benefits will become payable as of the
first day of the month next following his or her actually ceasing to be an
Employee.

               Section 6.5: Distributions Due Missing Persons. If the Trustee is
unable to distribute any benefit due to a missing Participant or Beneficiary,
the Trustee shall (a) so advise the Committee and (b) hold such benefit as a
segregated part of the Trust, in which event such benefit shall participate in
the income, gains and losses realized by such segregated Trust fund. The
Committee shall then send a written notice to such Participant or Beneficiary at
his or her last known address, as reflected in the Company's or Committee's
records. If such Participant or Beneficiary shall not have presented himself or
herself to the Company or to the Committee

                                      -27-
<PAGE>

within three years of the date of such written notice, any undistributed benefit
(and any income, gains and losses realized by such segregated part) may be
applied against and reduce the Company's future contributions to the Plan.
Despite the foregoing, if at any subsequent time a valid claim for any
undistributed benefit is presented to the Committee, such benefit that was so
applied (and any income, gains and losses realized by such segregated part)
shall be paid directly by the Company to such claimant.

               Section 6.6: Transfers To Another Qualified Plan.

               (a) If a Participant who is a distributee of any Eligible
Rollover Distribution (as defined below) elects to have such distribution paid
directly to an Eligible Retirement Plan and who specifies the Eligible
Retirement Plan to which such distribution is to be paid (in such form and at
such time as the Committee may prescribe), then such distribution shall be made
in the form of a direct trustee-to-trustee transfer to such Eligible Retirement
Plan, provided that such Eligible Retirement Plan accepts such a transfer. The
foregoing sentence shall apply only to the extent that such Eligible Rollover
Distribution would be includable in gross income if not transferred as provided
in such sentence (determined without regard to Code Sections 402(c) and
403(a)(4)).

               (b) "Eligible Rollover Distribution" shall mean 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 years or
more; any distribution to the extent such distribution is required under Section
401(a)(9) of the Code; any hardship distribution described in Code Section
401(k)(2)(B)(i)(IV) received after December 31, 1998; and the portion of any
distribution that is not includable in gross income (determined without regard
to the exclusion for net unrealized appreciation with respect to employer
securities).

               (c) "Eligible Retirement Plan" shall mean an individual
retirement account described in Section 408(a) of the Code, and 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) A Participant's (i) surviving spouse and (ii) 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 surviving spouse, spouse, or former spouse and shall have
the same rights as a

                                      -28-
<PAGE>

Participant to make a transfer in accordance with this SECTION 6.6 as to the
interest of the surviving spouse, spouse, or former spouse.

                                   ARTICLE VII
                                  SALE OF STOCK

               Section 7.1: Option To Sell Shares Of Stock.

               (a) If a Qualified Holder receives a distribution consisting in
whole or in part of Stock that is not Freely Tradable Stock at the time of
distribution, then such distributed Stock shall be subject to a put option in
the hands of the Qualified Holder, according to the provisions set forth below.

               (b) During the 60-day period following any distribution of such
Stock, a Qualified Holder shall have the right to require the Company to
purchase all or any portion of such distributed Stock held by such Qualified
Holder. A Qualified Holder shall exercise such right by giving written notice to
the Company of the number of shares of distributed Stock that the Qualified
Holder intends to sell to the Company. Such notice must be given within such
60-day period. The purchase price to be paid for any such option Stock shall be
its fair market value determined as of the most recent valuation according to
the valuation rules specified in ARTICLE IV.

               (c) If a Qualified Holder fails to exercise his or her put option
right under SUBSECTION (b), he or she shall have an additional right to exercise
such option in the first 60-day period of the next following Plan Year. If a
Qualified Holder fails to exercise his or her put option in this 60-day period,
such option right shall expire and the Qualified Holder shall have no further
right to require the Company to purchase such distributed Stock.

               (d) In the application of SUBSECTION (b) and (c), the period
during which a put option is exercisable does not include any time when a
distributee is unable to exercise it because the party bound by the put option
is prohibited from honoring it by applicable federal or state law.

               (e) In the event that a Qualified Holder shall exercise a put
option under this Section, then the Company shall pay the purchase price of such
Stock as follows:

                   (i) If Stock is distributed to a Qualified Holder as part of
        a Total Distribution, then the Company shall pay the purchase price of
        such Stock in substantially equal installment payments made no less
        frequently than annually for no more than five years. The first such
        payment shall be made within 30 days after the date such put option is
        exercised. If the purchase price of the Stock is paid under this
        installment method, then the Company shall, at a minimum, (A) provide
        adequate security, and (B) state a

                                      -29-
<PAGE>

        reasonable rate of interest (at least equal to the imputed compound rate
        in effect as of the Exercise Date pursuant to the Regulations under Code
        Section 483 or 1274, whichever shall be applicable) for the full unpaid
        balance of the option price.

                   (ii) If Stock is distributed to a Qualified Holder other than
        as a Total Distribution (i.e., on an installment basis), then the
        Company shall pay the purchase price of such Stock within 30 days after
        the date the put option is exercised.

                   (iii) "Total Distribution" shall mean a distribution to a
        Participant or a Beneficiary, within one taxable year, of the
        Participant's entire Account balance to the credit of the Participant.

               (f) The protections and rights provided in this Section are
nonterminable and continue to exist despite (i) the repayment of any loan, the
proceeds of which are used to purchase Leveraged Stock, and (ii) the cessation
of the Plan's status as an employee stock ownership plan.

               (g) The foregoing put options under SUBSECTIONS (b) and (c) shall
be effective solely against the Company and shall not obligate the Plan or the
other Company in any manner; provided, however, that with the Company's consent,
the Plan or the other Company may elect to purchase any Stock that otherwise
must be purchased by the Company pursuant to a Qualified Holder's exercise of
any such option.

               (h) At the time of distribution of Stock that is not Freely
Tradable Stock to a Qualified Holder, the Company shall furnish to such
Qualified Holder the most recent certificate of value prepared by the Company
with respect to such Stock. In addition, the Company shall furnish to such
Qualified Holder a copy of each subsequent certificate of value until the put
options provided for in this Section with respect to such distributed Stock
expire.

               (i) Except as is expressly provided above with respect to any
distributed Stock that is not Freely Tradable Stock, no Participant shall have
any put option rights with respect to Stock distributed under this Plan, and
neither the Company nor this Plan shall have any obligation whatsoever to
purchase any such distributed Stock from any Participant or other Qualified
Holder.

               Section 7.2: Right Of First Refusal.

               (a) In the event a Qualified Holder holds Stock that is not
Freely Tradable Stock, the Qualified Holder may not transfer, assign or
otherwise dispose of any Stock unless the Qualified Holder has given the Company
and the Trustee of the Trust the right of first refusal in accordance with the
provisions set forth below.

                                      -30-
<PAGE>

               (b) The Qualified Holder must give written notice to the Company
that the Qualified Holder has received an offer by a third party to purchase the
Stock or that the Qualified Holder desires to transfer the Stock by gift,
bequest or otherwise. The Company's right of first refusal shall lapse seven
days after the Qualified Holder gives such notice to the Company.

               (c) After the Company's right of first refusal lapses, the
Trustee of the Trust shall have a right of first refusal, which will lapse seven
days after the Company's right of first refusal lapses.

               (d) If the Company and the Trustee do not exercise the right of
first refusal within the respective seven-day periods, then on the 30th day
following the expiration of the Trustee's seven-day period to purchase the
Stock, the Qualified Holder may transfer the stock to a donee, or in the case of
a sale, to a bona fide purchaser in the same quantity, and at the same price and
terms that the Stock was offered to the Company and the Trustee.

               (e) The selling price of the Stock and other terms under the
right of first refusal must not be less favorable to the Qualified Holder than
the greater of (i) the value of the security as determined under Regulation
Section 54.4975-11(d)(5), or (ii) if applicable, the purchase price and other
terms offered by a buyer (other than the Company or the Plan) making a good
faith offer to purchase the Stock.

               (f) The Company may require that a Participant or Beneficiary
entitled to a distribution of Stock sign an appropriate stock transfer agreement
(that evidences the right of first refusal) prior to receiving a certificate for
Stock.

                                  ARTICLE VIII
                           TOP-HEAVY PLAN LIMITATIONS

               Section 8.1: Application Of Top-Heavy Rules. If the Plan is or
becomes a Top-heavy Plan, the limitations and requirements contained in this
Article shall apply and shall supersede any conflicting provision of the Plan.

               Section 8.2: Definitions.

               (a) Top-heavy Plan. A "Top-heavy Plan" shall mean, with respect
to any plan year, (i) any Defined Benefit Plan maintained by the Company or an
Affiliated Company if, as of the Determination Date, the total Present Value of
Accrued Benefits under such plan for Key Employees exceeds 60% of the total
Present Value of Accrued Benefits under such plan for all participants in such
plan; and (ii) any Defined Contribution Plan maintained by the Company or an
Affiliated Company if, as of the Determination Date, the total Aggregate
Accounts of Key Employees under the plan exceeds 60% of the total Aggregate
Accounts of all

                                      -31-
<PAGE>

participants under such plan. Each plan of the Company required to be included
in an Aggregation Group shall be treated as a Top-heavy Plan if the Aggregation
Group is a Top-heavy Group.

               (b) Top-heavy Group. A "Top-heavy Group" shall mean any
Aggregation Group if the sum of (i) the total Present Value of Accrued Benefits
for Key Employees under all Defined Benefit Plans included in the Aggregation
Group (determined as of the Determination Date for each such plan), and (ii) the
total of the Aggregate Accounts of Key Employees under all Defined Contribution
Plans included in the Aggregation Group (determined as of the Determination Date
for each such plan) exceeds 60% of a similar sum determined for all participants
in such plans. For purposes of determining whether the plans in a Top-heavy
Group exceed the foregoing 60% test, the plans shall be aggregated by adding
together the results for each plan as of the Determination Dates for such plans
that fall within the same calendar year.

               (c) Aggregation Group. An "Aggregation Group" shall mean each
plan of the Company or of an Affiliated Company in which a Key Employee is a
participant, and each plan of the Company or of an Affiliated Company that
enables the plan(s) containing a Key Employee to meet the antidiscrimination
requirements of Code Sections 401(a)(4) or 410, including terminating or
terminated plans maintained within the last five years ending on the
Determination Date that would, but for such termination, be part of the
Aggregation Group. The Company can elect to include in the Aggregation Group any
plan not otherwise required to be included, if such group, after such election,
would continue to meet the antidiscrimination requirements of Code Sections
401(a)(4) and 410; provided, however, that any such plan will not be otherwise
deemed a Top-heavy Plan by reason of such election.

               (d) Determination Date. With respect to any plan year,
"Determination Date" shall mean the last day of the preceding plan year or, in
the case of the first plan year of any plan, the last day of such plan year.

               (e) Present Value of Accrued Benefit: A participant's "Present
Value of Accrued Benefit" as of any Determination Date shall be calculated:

                   (i) as of the most recent valuation date ("Valuation Date")
        which is within the 12-month period ending on such Determination Date;

                   (ii) for the first plan year, as if (A) the participant
        terminated service as of the Determination Date, or (B) the participant
        terminated service as of the Valuation Date, but taking into account the
        estimated Present Value of Accrued Benefit as of the Determination Date;

                   (iii) for any other plan year, as if the participant
        terminated service as of the Valuation Date; and

                   (iv) using the interest rate and mortality assumptions set
        forth in the Defined Benefit Plan.

                                      -32-
<PAGE>

                      (v) solely for the purposes of determining if the Plan, or
        any other plan included in the Aggregation Group, is a Top-heavy Plan,
        the accrued benefit of a Non-Key Employee shall be determined under (A)
        the method, if any, that uniformly applies for accrual purposes under
        all plans maintained by the Company and all Affiliated Companies, or (B)
        if there is no such method, as if such benefit accrued not more rapidly
        than the slowest accrual rate permitted under the fractional accrual
        rate of Code Section 411(b)(1)(C).

For the foregoing purposes, the Valuation Date must be the same valuation date
used for computing the defined benefit plan minimum funding costs, regardless of
whether a valuation is performed that year.

               (f) Aggregate Account: A participant's "Aggregate Account" shall
be determined as follows:

                   (i) For Defined Contribution Plans not subject to the minimum
        funding requirements of Code Section 412, a participant's Aggregate
        Account as of any Determination Date shall be the sum of:

                        (A) such participant's account balance as of the most
               recent valuation date ("Valuation Date") occurring within the
               12-month period ending on such Determination Date; plus

                        (B) an adjustment for contributions due as of such
               Determination Date. Such adjustment is generally the amount of
               any contributions actually made after the Valuation Date but
               before the Determination Date. In the first plan year, such
               adjustment shall also reflect any contributions actually made
               after the Determination Date that are allocated as of a date in
               that first plan year.

                   (ii) For Defined Contribution Plans subject to the minimum
        funding requirements of Code Section 412, a participant's Aggregate
        Account as of any Determination Date shall be the sum of:

                        (A) such participant's account balance as of the most
               recent valuation date ("Valuation Date") occurring within the
               12-month period ending on such Determination Date, including
               contributions that would be allocated as of a date not later than
               such Determination Date; plus

                        (B) an adjustment for contributions due as of such
               Determination Date. Such adjustment shall reflect the amount of
               any contribution actually made (or due to be made) after the
               Valuation Date but before the expiration of the extended payment
               period described in Code Section 412(c)(10).

                                      -33-
<PAGE>

               (g) Key Employee. "Key Employee" shall mean any participant of
any plan maintained by the Company or an Affiliated Company who, at any time
during the plan year or any of the four preceding plan years, was:

                   (i) an officer of the Company or an Affiliated Company whose
        annual Compensation exceeds 50% of the amount in effect under Code
        Section 415(b)(1)(A) for any such plan year (provided, however, that no
        more than 50 employees (or, if lesser, the greater of three employees or
        10% of all employees) shall be treated as officers; provided further,
        however, that if the total number of officers exceeds this numerical
        limitation, only the highest compensated officers shall be included);

                   (ii) one of the ten employees who (A) has annual Compensation
        for a plan year greater than the dollar limitation in effect under Code
        Section 415(c)(1)(A) for the calendar year in which such plan year ends,
        and (B) owns (or is considered to own under Code Section 318) both more
        than a 1/2% interest and the largest interests in the Company or an
        Affiliated Company;

                   (iii) 5% Owner of the Company or an Affiliated Company; or

                   (iv) 1% Owner of the Company or an Affiliated Company whose
        annual Compensation exceed $150,000, or such other amount as may be
        allowed under Code Section 416(i) and the applicable Regulations.

In making this determination of a 5% Owner and a 1% Owner for purposes of this
Section, (i) the Code Section 318(a)(2) corporate attribution rules, as modified
by Code Section 416(i)(1)(B)(iii), shall apply, and (ii) the business
aggregation rules of Code Section 414 shall not apply. For purposes of the
foregoing definition, (i) the beneficiary of a Key Employee shall be treated as
a Key Employee, and (ii) the beneficiary of a former Key Employee shall be
treated as a former Key Employee. Inherited benefits will retain the character
of the benefits of the Key Employee who performed the services for the Company.
For purposes of the foregoing, the identification of the Key Employee will be
determined in accordance with Code Section 416(i).

               (h) Non-Key Employee. "Non-Key Employee" shall mean any
Participant who is not a Key Employee, including any Participant who is a former
Key Employee.

               Section 8.3: 60% Test - Special Rules. For purposes of applying
the 60% test described in SECTION 8.2(a), the following special rules shall
apply:

               (a) Participant Contributions. Benefits derived from both
participant contributions (whether voluntary or mandatory, but not deductible
contributions) and the Company's contributions shall be considered.

                                      -34-
<PAGE>

               (b) Previous Distributions. In determining the Present Value of
Accrued Benefit or the Aggregate Account of any participant under any plan (or
plans that form the Aggregation Group), such present value or account shall be
increased by the aggregate of distributions made to such participant from such
plan (or plans forming the Aggregation Group) during the five-year period ending
on the Determination Date. For this purpose, "participant" shall include an
employee who is no longer employed by the Company or an Affiliated Company.
Despite the foregoing, any distribution to a participant that is made after the
Valuation Date and before the Determination Date for any plan year shall not be
considered a distribution to the extent it is already included in such
participant's Present Value of Accrued Benefit or Aggregate Account as of such
Valuation Date.

               (c) Rollover Contributions. Rollover contributions shall be
treated as follows:

                   (i) The following rules shall apply to related rollovers and
        plan-to-plan transfers (ones either not initiated by the participant or
        made to a plan maintained by the Company or any Affiliated Company). If
        the plan provides such rollover or plan-to-plan transfer, it shall not
        be counted as a distribution for purposes of this SECTION 8.3. If the
        plan receives such rollover or plan-to-plan transfer, it shall consider
        such rollover or plan-to-plan transfer as part of the participant's
        Present Value of Accrued Benefit or Aggregate Account, regardless of the
        date on which such rollover or plan-to-plan transfer was received.

                   (ii) The following rules apply to unrelated rollovers and
        plan-to-plan transfers (ones which are both initiated by a participant
        and made from a plan maintained by one employer to a plan maintained by
        another employer). If the plan provides such rollover or plan-to-plan
        transfer, it shall always consider such rollover or plan-to-plan
        transfer as a distribution for purposes of this SECTION 8.3. If the plan
        receives such rollover or plan-to-plan transfer, it shall not consider
        such rollover or plan-to-plan transfer as part of the participant's
        Present Value of Accrued Benefit or Aggregate Account if it was accepted
        after December 31, 1983.

               (d) Change Of Status. The accrued benefit or account of a
participant who was formerly a Key Employee, but who ceased to be a Key Employee
in any plan year, will not be taken into account for such plan year.

               (e) No Service For Last Five Years. If any individual has not
performed services for any employer maintaining the plan during the five-year
period ending on the Determination Date, the accrued benefit or account of such
individual shall not be taken into account.

                                      -35-
<PAGE>

               Section 8.4: Minimum Vesting Requirement. As the Plan's normal
vesting schedule equals or exceeds the top-heavy vesting schedule, the normal
vesting schedule shall continue to apply if the Plan becomes a Top-heavy Plan.

               Section 8.5: Minimum Contribution Requirement.

               (a) If the Plan is a Top-heavy Plan, then in no event shall the
Company's annual contribution on behalf of any Non-Key Employee be less than 3%
of such Participant's Earnings. This minimum contribution shall be made even
though, under the other provisions of the Plan, the Participant would not
otherwise be entitled to a contribution on his or her behalf, or would have
received a lesser contribution for the Plan Year, because of (i) the
Participant's failure to complete 1,000 Hours of Service, (ii) the Participant's
failure to make mandatory employee contributions to the Plan, or (iii) the
Participant's exclusion from the Plan because such Participant's Earnings is
less than the Plan's stated amount. Despite the foregoing, no minimum
contribution needs to be made under this Section on behalf of a Participant who
was not an Employee on the last day of the Plan Year.

               (b) For Plan Years beginning on or after January 1, 1985, any
Company contribution that is attributable to a salary reduction or similar
arrangement shall be considered for purposes of satisfying the minimum
contribution required by this Section. For Plan Years beginning on or after
January 1, 1989, elective contributions under Code Section 401(k) on behalf of
Key Employees are taken into account in determining the minimum required
contribution under Code Section 416(c)(2), but such contributions on behalf of
Non-Key Employees may not be treated as employer contributions for purposes of
the minimum contribution or benefit requirements of Code Section 416.

               (c) If the Company maintains one or more qualified plans in
addition to the Plan, and if the Plan is a Top-heavy Plan, then in accordance
with the applicable Regulations, only one such plan need be designated by the
Company to provide the minimum benefit provided for in this Section. However, if
for Plan Years beginning before January 1, 2000, such multiple plans, including
the Plan, include a Defined Benefit Plan and a Defined Contribution Plan, the
1.0 Rule (as it may be modified by the top-heavy plan transitional rule under
Code Section 416(h)(3)) shall be in effect if, and only if, the following two
requirements are satisfied:

                   (i) Minimum Benefit Requirement. The "3%" set forth in this
        Section shall be replaced by "4%".

                   (ii) The 90% Test. The sum of the Present Value of Accrued
        Benefits plus the Aggregate Accounts held for all Key Employees under
        the plans cannot exceed 90% of a similar sum determined for all
        participants.

For purposes of the 1.0 Rule, all references to "1.25" shall be replaced by
"1.0," if either of the above additional requirements is not met.

                                      -36-
<PAGE>

               (d) Despite the foregoing, if (i) the total annual contribution
allocated to the Accounts of each Key Employee is less than 3% of each Key
Employee's Earnings and (ii) this Plan is not required to be included in an
Aggregation Group to enable a Defined Benefit Plan to meet the requirements of
Code Section 401(a)(4) or 410, then the total minimum annual contribution on
behalf of each Non-Key Employee shall be equal to the largest percentage
contribution on behalf of any Key Employee.

                                   ARTICLE IX
                                   INVESTMENTS

               Section 9.1: Investment Of Company Contributions. The Plan is
designed to invest primarily in Stock, and the Trustee is specifically
authorized to invest up to 100% of the Trust's assets in Stock. All purchases of
Stock shall be made at prices that, in the Committee's judgment, do not exceed
the fair market value of the Stock, determined as required by SECTION 4.11
above. The Trustee may purchase Stock for cash or on terms, as directed by the
Committee. Despite the foregoing, sufficient liquidity shall be maintained to
meet the reasonably anticipated requirements of the Trust for payment of
expenses of administration, investment and management and for distribution of
benefits to Participants and Beneficiaries. To the extent the Trustee is not
directed to acquire Stock, the Trustee may, subject to the direction of the
Committee, invest and reinvest the Trust's assets, together with the income
therefrom, in assets other than Stock to the extent consistent with preserving
the Plan's status as an employee stock ownership plan as defined under Code
Section 4975(e)(7).

               Section 9.2: Leveraged Stock Authorized.

               (a) The Committee shall have the power to direct the Trustee to
borrow or raise money, in such amounts and under such conditions and terms as
directed by the Committee, for the purpose of purchasing or otherwise acquiring
Stock. Any such borrowing may be made from the Company, any shareholder in the
Company, or from any other party. In connection with any such borrowing, and
subject to any applicable margin requirement rule, regulation or statute, the
Committee may direct the Trustee to issue its promissory note on behalf of the
Trust. No person lending money to the Trustee shall be obligated to see to the
application of the money lent or to inquire into the validity, expediency or
propriety of such borrowing. Any such borrowing from the Company, or from any
other "disqualified person" (as defined in Code Section 4975(e)(2)), or any
other "party in interest" (as defined in ERISA Section 3(14)), shall be subject
to the provisions set forth below.

               (b) The proceeds of the loan shall be used (within a reasonable
period of time after receipt) only to acquire Stock, to pay any charges or fees
incurred

                                      -37-
<PAGE>

in connection with the stock acquisition or loan, and/or to make payments under
any such loan (including prior loans).

               (c) Other than the categories of assets specified in SUBSECTION
(d) below, the loan shall be without recourse against the Plan or Trust. The
only Trust assets which may be used as collateral for the loan shall be the
Stock acquired with the proceeds of the loan or Stock used as collateral on a
prior loan that was repaid with the current outstanding loan.

               (d) No person entitled to payment under the loan shall have any
recourse, for any payments due under the loan, against any Plan assets other
than the following categories of assets:

                   (i) Unallocated Leveraged Stock (whether or not
        collateralized) acquired with the proceeds of the loan and held in the
        Unallocated Stock Account (but only prior to the release therefrom and
        allocation to Participants' Accounts as provided under this Plan);

                   (ii) Company contributions (other than contributions of
        Stock) made to meet obligations under the loan;

                   (iii) Earnings attributable to the unallocated Leveraged
        Stock while held in the Unallocated Stock Account (including dividends
        thereon while held in the Unallocated Stock Account); and

                   (iv) Earnings attributable to the investment of the Company
        Contributions made to meet obligations under the loan.

Recourse against such assets shall be permissible to the extent allowed under
applicable law governing creditor's remedies, but in no event to an extent
greater than permitted under SUBSECTION (e) below or such other applicable
limitations as may be required in order for such loan transaction to qualify for
the prohibited transaction exemption provided under Code Section 4975(d)(3).

               (e) The provisions of this SUBSECTION (e) shall apply in case of
a default in the repayment of the loan:

                   (i) In the event of a default, the value of Plan assets
        transferred to the lender in satisfaction of such loan shall not exceed
        the amount of the default.

                   (ii) If the lender is a disqualified person (as defined in
        Code Section 4975(e)(2)), a transfer of Plan assets upon default shall
        be made only upon and to the extent of the failure of the Plan to meet
        the payment schedule of the loan.

                   (iii) For purposes of this SUBSECTION (e), the making of a
        guarantee by the Company shall not be deemed to make the Company a

                                      -38-
<PAGE>

        lender; provided, however, that this provision shall not impose any
        personal liability on the Trustee.

               (f) The terms of the loan must provide that shares of Stock
purchased with the proceeds of the loan shall be placed in the Unallocated Stock
Account. The shares in the Unallocated Stock Account shall be released from the
Unallocated Stock Account (and allocated to the Stock Accounts) as set forth
above. Despite the foregoing, in addition to or in lieu of pledging the acquired
Stock as collateral for the repayment of any loan, the Company may guarantee the
repayment and/or may use Company assets to secure the repayment, and nothing
herein shall require that the repayment of the loan be secured by Stock acquired
with the proceeds thereof.

               (g) If the proceeds of a loan are used to acquire Leveraged
Stock, the following items shall be accounted for separately in the books of
account of the Plan until the loan is repaid:

                   (i) The contributions (other than contributions of Stock)
        that are made under the Plan to meet obligations under the loan;

                   (ii) The earnings attributable to unallocated Leveraged Stock
        (purchased with the proceeds of the loan) while held in the Unallocated
        Stock Account (including dividends thereon); and

                   (iii) Earnings attributable to the investment of the
        contributions made to meet obligations under the loan.

               (h) In the event that there shall be more than one class of
Stock, the class or classes of Leveraged Stock acquired by the Trustee with the
proceeds of the loan, and the relative proportions of the classes of Stock held
by the Trustee, shall comply with any applicable requirements established
pursuant to Regulations under Code Section 4975 so as to insure that the loan
and/or the acquisition of Leveraged Company does not constitute a prohibited
transaction within the meaning of the applicable provisions of the Code and
ERISA.

               (i) The loan shall be primarily for the benefit of Participants
and their Beneficiaries and shall bear no more than a reasonable rate of
interest.

               (j) The Committee shall determine, and advise the Trustee with
respect to, the amount of interest charges that are due from time to time by
reason of any variable interest rate (or other similar provision) under any loan
used by the Trustee to acquire Leveraged Stock. The Trustee may rely on the
Committee's determination and directions with respect to the amount of the
interest charges, and the Trustee shall be released from any and all liability
attributable to its reliance thereon.

               (k) Any loan entered into by the Plan to purchase Stock shall be
for a definite term, and shall not be payable upon demand of any person, except
where

                                      -39-
<PAGE>

there has been a default. Any such payment upon default shall be subject to the
rules of SUBSECTION (e) above.

               Section 9.3: Certain Nonterminable Provisions. Except as is
expressly provided in the Plan with respect to any distributed Leveraged Stock
that is not Freely Tradeable Stock, no such Leveraged Stock shall be subject to
a put, call, or other option, or buy-sell or similar arrangement while held by
and when distributed from the Plan, whether or not at such time the Plan
constitutes an employee stock ownership plan. The provisions of this Section
shall not terminate notwithstanding that the loan used to acquire such Leveraged
Stock shall be repaid or that the Plan ceases at any time to constitute an
employee stock ownership plan.

               Section 9.4: Diversification Of Stock.

               (a) Election By Qualified Participant. Despite any other
provision of the Plan, each Participant who is a Qualified Participant may
direct the Committee to distribute 25% of the value of the Participant's Stock
Account balance, reduced by the amount of assets for which a prior election
under this Section has been made. Such direction must be made within 90 days
after the last day of each Plan Year during the Participant's Qualified Election
Period. Within 90 days after the close of the last Plan Year in the
Participant's Qualified Election Period, a Qualified Participant may direct the
Committee to distribute 50% of the value of such account balance, reduced by the
amount of assets for which a prior election under this Section has been made.
The Qualified Participant's direction (i) shall be provided to the Committee in
writing, and (ii) shall be effective no later than 180 days after the close of
the Plan Year to which the direction applies.

               (b) Definitions. For the purposes of this Section, the following
definitions shall apply:

                   (i) "Qualified Participant" shall mean a Participant who has
        attained age 55 and who has completed at least ten years of
        participation in the Plan.

                   (ii) "Qualified Election Period" shall mean, with respect to
        any Participant, the six Plan Year period beginning with the first Plan
        Year in which the Participant first becomes a Qualified Participant.

               (c) Timing Of Distributions. At the election of the Qualified
Participant, the Committee shall direct the Trustee to distribute the portion of
the Participant's account that is covered by the election within 90 days after
the last day of the period during which the election can be made. Such
distribution shall be subject to the put option and right of first refusal
requirements set forth in Article VII. This SUBSECTION (c) shall apply despite
any other provision of the Plan; provided, however, that if any distribution
pursuant to this Section is in excess of $3,500 (or

                                      -40-
<PAGE>

$5,000 for Plan Years beginning after August 5, 1997), the Participant must
consent to such distribution as set forth in the Plan.

               Section 9.5: Voting Of Stock.

               (a) Effective January 18, 1991, if the Trustee holds any Stock
with voting rights, the Trustee shall vote such stock as follows:

                   (i) When notice of a stockholders' meeting must be mailed to
        stockholders, the Committee shall cause to be prepared and delivered to
        each Participant and Beneficiary who has Stock allocated to his or her
        Account, a notice that:

                       (A) states the full number of shares of Stock allocated
               to the Participant's Account, and

                       (B) instructs the Trustee as to how the Trustee shall
               vote the shares at the meeting or adjournment concerning each
               such matter.

        The Committee shall instruct each Participant and Beneficiary to
        complete and return the notice to the Trustee.

                   (ii) The Trustee shall vote all shares of Company stock
        allocated to the Accounts of Participants as instructed in the notice.

                   (iii) Regarding Stock for which the Trustee has not received
        a notice that sets forth a Participant's or Beneficiary's instructed
        votes within five days prior to such meeting, including all fractional
        shares of Stock and all shares of Stock held in the Unallocated Stock
        Account, the Trustee shall vote such shares as directed by the
        Committee.

               (b) The Committee shall in no event make any recommendation to
any Participant regarding the exercise of the Participant's voting rights or any
other rights under the provisions of this Section, nor shall the Committee make
any recommendation as to whether any such rights should or should not be
exercised by the Participant.

               (c) All rights (other than voting rights) of Stock, such as
tender rights, held in the Trust shall be exercised in the same manner and to
the same extent as provided above with respect to the voting rights of the
Stock.

                                      -41-
<PAGE>

                                    ARTICLE X
                                  THE COMMITTEE

               Section 10.1: Members.

               (a) The Committee shall consist of one or more members as
determined by the Board of Directors. Its members shall serve at the pleasure of
the Board of Directors. A person so appointed shall become a member by filing a
written notice of acceptance with the Board of Directors. A member of the
Committee may resign by delivering a written notice of resignation to the Board
of Directors. The Board of Directors may remove any member of the Committee by
delivering a written notice of such removal to him or her. A resignation or
removal shall be effective on the date specified in such notice or resolution.
The Trustee shall be promptly notified by the Board of Directors of any change
in the membership of the Committee, and shall be supplied with specimen
signatures of each Committee member.

               (b) Vacancies in the membership of the Committee shall be filled
promptly by the Board of Directors. If the Company is not in existence when a
vacancy in the Committee membership arises, such vacancy shall be filled as
follows, in the indicated order of priority:

               1st:   The remaining member(s) of the Committee shall appoint new
                      member(s) to fill all vacancies.

               2nd:   A majority of the adults then entitled to benefits from
                      the Plan shall appoint new member(s) to fill all
                      vacancies. If such an adult is not able to participate in
                      such appointment, then his or her spouse, if any, shall
                      act for him or her. If there is no such spouse, then such
                      adult's guardian or conservator shall act for him or her.

               3rd:   If vacancies on the Committee are not filled pursuant to
                      the foregoing, then a court of competent jurisdiction
                      shall fill such vacancies. The Trust shall pay the
                      expenses incurred in connection with such court
                      appointment.

               Section 10.2: Committee Action.

               (a) The Committee shall choose a Secretary and an Assistant
Secretary (either of whom is referred to below as the "Secretary") who shall
keep minutes of the Committee's proceedings and all records and documents
pertaining to the Committee's administration of the Plan. Any action of the
Committee shall be taken pursuant to the vote of a majority, or pursuant to the
written consent of a majority, of its members. A quorum of the Committee shall
consist of two members. The Secretary may sign any certificate or other document
on behalf of the Committee. The Trustee and all other persons dealing with the
Committee may

                                      -42-
<PAGE>

conclusively rely upon any certificate or other document that is signed by the
Secretary and that purports to have been duly authorized by the Committee.

               (b) A member of the Committee shall not vote or act upon any
matter that relates solely to himself or herself as a Participant. If a matter
arises affecting one member of the Committee as a Participant and the other
members of the Committee are unable to agree on the disposition of such matter,
the Board of Directors shall appoint a substitute member of the Committee in the
place and stead of the affected member, for the sole purpose of passing upon and
deciding that particular matter. If the Company is not in existence then, such
substitute member of the Committee shall be appointed in the manner provided for
in this Article when there is a vacancy in the Committee's membership.

               Section 10.3: Rights And Duties.

               (a) Except as otherwise set forth in SUBSECTIONS (b), (c) and (d)
below, all fiduciary responsibility respecting the management or administration
of the Plan and its assets are vested in the Committee, and the Committee shall
be the Named Fiduciary with respect to the Plan's assets, and the
"administrator" of the Plan as defined in Section 3(16)(A) of ERISA.

               (b) The Trustee shall (i) have custody of the Plan's assets, (ii)
have the powers designated in the trust document, and (iii) be the Named
Fiduciary with respect to the custody of the Plan's assets.

               (c) The Committee may designate one or more Investment Managers
(including the Trustee, if the Trustee is authorized to be an Investment
Manager) to manage the investment of the Plan's assets, and such Investment
Manager(s) shall be the Named Fiduciary with respect to the management and
investment of the Plan's assets.

               (d) The Committee may designate one or more persons or entities
to carry out any of its functions under the Plan, other than those of managing
and controlling the Plan's assets, which may only be done pursuant to
SUBSECTIONS (b) or (c) immediately above.

               (e) The Committee, on behalf of the Participants and their
Beneficiaries, shall enforce the Plan in accordance with its terms, and shall be
charged with the general administration of the Plan, except to the extent that
powers are retained by the Company. The Committee shall have the discretion and
authority to interpret the Plan. The Committee's powers shall include (without
limitation) the power:

                   (i) to determine all questions relating to the eligibility of
        Employees to participate in the Plan;

                                      -43-
<PAGE>

                   (ii) to determine, compute and certify to the Trustee the
        amount and kind of benefits payable to the Participants and their
        Beneficiaries;

                   (iii) to authorize all disbursements by the Trustee from the
        Trust;

                   (iv) to direct the Trustee with respect to all investments of
        the principal or income of the Trust and with respect to other matters
        concerning the Trust's assets;

                   (v) to maintain all the necessary records for the
        administration of the Plan, other than those maintained by the Trustee;
        and

                   (vi) to adopt, amend and interpret rules for the regulation
        of the Plan that are not inconsistent with its terms and the applicable
        law and Regulations.

               (f) Members of the Committee and other Fiduciaries shall
discharge their duties with the care, skill, prudence and diligence under the
circumstances then prevailing that a prudent person, acting in a like capacity
and familiar with such matters, would use in the conduct of an enterprise of a
like character and with like aims. Subject to any right of Participants to
direct how their Accounts will be invested and other provisions of the Plan, the
Committee shall diversify the Plan's investments so as to minimize the risk of
large losses, unless, under the circumstances, it is clearly prudent not to do
so, or unless the Plan specifically provides for the acquisition and holding of
qualifying employer real property or securities, as defined in Sections
407(d)(4) and (5) of ERISA.

               (g) A member of the Committee or other Fiduciary shall be liable
for a breach of fiduciary responsibility of another member or another Fiduciary
only if:

                   (i) such member or Fiduciary participates knowingly in, or
        knowingly undertakes to conceal, an act or omission of such other member
        or Fiduciary, knowing that such act or omission is a breach;

                   (ii) such member or Fiduciary has enabled such other member
        or Fiduciary to commit a breach by virtue of his or her failure to
        comply with the duty of care set forth above in the administration of
        such member's or Fiduciary's own responsibilities as a Fiduciary; or

                   (iii) such member or Fiduciary has knowledge of a breach by
        such other member or Fiduciary, unless such member or Fiduciary makes
        reasonable efforts under the circumstances to remedy such breach.

               Section 10.4: Information. To enable the Committee to perform its
functions, the Company shall supply complete and timely information to the
Committee on all matters relating to the compensation of all Participants, their

                                      -44-
<PAGE>

employment, their retirement, death, or the cause for termination of employment,
and such other pertinent information as the Committee may require. The Committee
shall advise the Trustee of such of the foregoing information as may be
pertinent to the Trustee's administration of the Trust.

               Section 10.5: Compensation, Indemnity And Liability.

               (a) The members of the Committee shall serve without compensation
for their services. No member of the Committee or other Fiduciary need be
bonded, except as required by federal or state law or regulation. The Committee
is authorized to employ such legal counsel or other persons as it may deem
advisable to assist it in the performance of its duties under the Plan.

               (b) The Company shall indemnify and hold each member of the
Committee harmless against any and all expenses and liabilities arising out of
membership on the Committee, excepting only expenses and liabilities arising out
of such member's own willful misconduct or gross negligence.

               Section 10.6: Administrative Expenses Of The Plan. All expenses
of administering the Plan shall by paid by the Trustee and shall be a charge
against the trust estate, except to the extent that such expenses may be paid by
the Company. The expense of maintaining errors and omissions liability
insurance, if any, covering members of the Committee, the Trustee, or any other
Fiduciary shall be paid by the Company.

                                   ARTICLE XI
                            AMENDMENT AND TERMINATION

               Section 11.1: Amendments. The Company, through its Board of
Directors, may amend the Plan from time to time, and may amend or cancel any
such amendment. Each amendment must be set forth in a document that is signed by
the Company, and the Plan shall be deemed to have been amended in the manner and
at the time set forth in such document, and all Participants shall be bound by
it. Despite the foregoing, any such amendment shall be subject to the following
provisions:

               (a) No amendment shall be effective that attempts to cause any
asset of the Plan to be used for, or diverted to, purposes other than for the
exclusive benefit of the Participants or their Beneficiaries, except for such
changes, if any, that are required to permit the Plan to meet the applicable
requirements of the Code, or as may be made to assure the deductibility for tax
purposes of any contribution by the Company.

                                      -45-
<PAGE>

               (b) No amendment shall have any retroactive effect that would
deprive any Participant of any benefit already vested, nor shall the vesting
provisions of the Plan be amended, unless each Participant with at least three
Years of Service is permitted to elect to continue to have the prior vesting
provisions apply to him or her, except for such changes, if any, that are
required to permit the Plan to meet applicable requirements of the Code, or as
may be made to assure the deductibility for tax purposes of any contribution by
the Company. Any such election must be made during the period beginning with the
date the amendment is adopted and ending 60 days after the latest of:

                   (i) the date the amendment is adopted;

                   (ii) the date the amendment becomes effective; or

                   (iii) the date on which the Participant receives written
        notice of the amendment from the Company or the Committee.

               (c) No amendment shall create or effect any discrimination in
favor of Participants who are highly compensated Employees.

               (d) No amendment shall increase the duties or liabilities of the
Trustee without the Trustee's written consent.

               (e) No amendment shall decrease any Participant's account balance
or eliminate an optional form of distribution.

               Section 11.2: Discontinuance Of Plan.

               (a) The Company expects that the Plan and the contributions under
it will be continued indefinitely, and the Trust is irrevocable. However,
continuance of the Plan is not assumed as a contractual obligation of the
Company, and the Company, through their respective boards of directors, reserve
the right to reduce, temporarily suspend, or discontinue contributions under the
Plan if, and to the extent, permitted under ERISA or the Code. Upon a complete
discontinuance of contributions, the interest of each Participant in each of his
or her Accounts shall become 100% vested, if it is not already fully vested. In
addition, upon a partial termination (within the meaning of Code Section
411(d)(3)), the interest of each affected Participant in each of his or her
Accounts shall become 100% vested, if it is not already fully vested.

               (b) The Company, through its Board of Directors, may terminate
the Plan at any time upon delivering a written notice to the Trustee. Upon the
Plan's termination, the interest of each Participant in each of his or her
Accounts shall become 100% vested, if it is not already fully vested. Then the
Trustee, at the direction of the Committee, shall, as is necessary, liquidate
the Stock in the Unallocated Stock Account and use the net proceeds of such
liquidation to pay any loan or installment obligation that was incurred to
purchase Leveraged Stock. The

                                      -46-
<PAGE>

net proceeds in excess of the amount used to repay such loan shall be allocated
to the Participants' Cash Accounts as set forth in Section 4.5(a)(i). The
Trustee, at the direction of the Committee, shall also liquidate the Trust's
assets other than Stock and allocate the net proceeds of such liquidated assets
to the Participants' Cash Accounts, as set forth in Section 4.5(a)(i).

               (c) The Plan shall automatically terminate upon the happening of
any of the following events:

                   (i) adjudication of the Company as a bankrupt;

                   (ii) general assignment by the Company to or for the benefit
        of creditors; or

                   (iii) dissolution of the business of the Company,

provided, however, that the Plan may be continued by any successor business
organization or any business organization into which the Company is merged or
consolidated that employs some or all of the Participants, if such business
organization agrees with the Trustee in writing to accept the obligations of the
Plan and to continue it in full force and effect in accordance with Section
13.10.

               Section 11.3: Failure To Contribute. The Company's failure to
contribute to the Trust for any Plan Year shall not, of itself, be a
discontinuance of contributions to the Plan.

                                   ARTICLE XII
                                CLAIMS PROCEDURE

               Section 12.1: Presentation Of Claim. Any Participant or
Beneficiary of a deceased Participant or duly authorized representative of
either (such Participant or Beneficiary or duly authorized representative being
referred to below as a "Claimant") may deliver to the Committee a written claim
for a determination with respect to the amounts (i) credited to (or deducted
from) such Claimant's Accounts, or (ii) distributable to such Claimant from the
Plan. If such a claim relates to the contents of a notice received by the
Claimant, the claim must be made within 60 days after such notice was received
by the Claimant. The claim must state with particularity the benefit
determination desired by the Claimant.

               Section 12.2: Notification Of Decision. The Committee shall
consider a Claimant's claim within a reasonable time, but not later than 90 days
after receipt of the claim by the Plan, unless the Committee determines that
special circumstances

                                      -47-
<PAGE>

require an extension of time for processing the claim. If the Committee
determines that an extension of time for processing is required, written notice
of the extension shall be furnished to the Claimant prior to the termination of
the initial 90-day period. In no event shall such extension exceed a period of
90 days from the end of such initial period. The extension notice shall indicate
the special circumstances requiring an extension of time and the date by which
the Committee expects to render the benefit determination. Once the benefit
determination is made in accordance with the foregoing, the Committee shall
notify the Claimant in writing:

               (a) that the Claimant's requested benefit determination has been
made, and that the claim has been allowed in full; or

               (b) that the Committee has reached a conclusion adverse, in whole
or in part, to the Claimant's requested benefit determination. The Committee's
notice of adverse benefit determination must be written in a manner calculated
to be understood by the Claimant, and it must contain:

                   (i) the specific reason(s) for the adverse benefit
        determination;

                   (ii) reference to the specific provisions of the Plan upon
        which such adverse benefit determination was based;

                   (iii) a description of any additional material or information
        necessary for the Claimant to perfect the claim, and an explanation of
        why such material or information is necessary; and

                   (iv) a description of the Plan's claim review procedures set
        forth in Section 12.3 and the time limits applicable to such procedures,
        including a statement of the Claimant's right to bring a civil action
        under ERISA Section 502(a) following an adverse benefit determination on
        review.

               Section 12.3: Review Of A Denied Claim. Within 60 days after
receiving a notice from the Committee of an adverse benefit determination, a
Claimant may file with the Board of Directors a written request for a review of
such adverse determination. Thereafter, but not later than 30 days after the
review procedure began, the Claimant:

               (a) may submit written comments, documents, records, and other
information relating to the claim for benefits;

               (b) shall be provided, upon request and free of charge,
reasonable access to, and copies of, all documents, records, and other
information relevant to the Claimant's claim for benefits; and/or

               (c) may request a hearing, which the Board of Directors, in its
discretion, may grant.

                                      -48-
<PAGE>

               The Board of Directors shall take into account all comments,
documents, records, and other information submitted by the Claimant relating to
the claim, without regard to whether such information was submitted or
considered in the initial benefit determination.

               Section 12.4: Decision On Review. The Board of Directors shall
render its decision on review within a reasonable time, and not later than 60
days after the receipt of the Claimant's review request, unless a hearing is
held or other special circumstances require additional time, in which case the
Board of Directors' decision must be rendered within 120 days after the receipt
of the Claimant's review request. If the Board of Directors determines that an
extension of time for processing is required, written notice of the extension
shall be furnished to the Claimant prior to the termination of the initial
60-day period. In no event shall such extension exceed a period of 60 days from
the end of the initial period. The extension notice shall indicate the special
circumstances requiring an extension of time and the date by which the Board of
Directors expects to render the benefit determination on review. The Board of
Directors' decision must be written in a manner calculated to be understood by
the Claimant, and it must contain:

               (a) specific reasons for the decision;

               (b) reference to the specific Plan provisions upon which the
decision was based;

               (c) a statement that the Claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies of, all documents,
records, and other information relevant to the Claimant's claim for benefits;

               (d) a statement of the Claimant's right to bring an action under
ERISA Section 502(a) concerning an adverse benefit determination; and

               (e) such other matters as the Board of Directors deems relevant.

               For purposes of this Article, a document, record, or other
information shall be considered "relevant" to a Claimant's claim if such
document, record, or other information was relied upon in making the benefit
determination; was submitted, considered, or generated in the course of making
the benefit determination, without regard to whether such document, record, or
other information was relied upon in making the benefit determination; or
demonstrates compliance with the administrative processes and safeguards
required under ERISA in making the benefit determination.

                                      -49-
<PAGE>

                                  ARTICLE XIII
                                  MISCELLANEOUS

               Section 13.1: Contributions Not Recoverable. Subject to the next
two sentences, it shall be impossible for any part of the Trust's principal or
income to be used for, or diverted to, purposes other than the exclusive benefit
of the Participants or their Beneficiaries. Despite any other provision of the
Plan, the Company shall be entitled to recover (within one year of the specified
event):

               (a) any contribution made to the Trust if (i) the Commissioner of
Internal Revenue, or his delegate, determines that the Plan and the Trust do not
meet the applicable requirements of the Code upon their initial qualification,
with the result that the Trust is not exempt from federal income tax, (ii) such
contribution was conditioned on such initial qualification of the Plan and
Trust, (iii) the application for determination of such initial qualification was
made within the time prescribed by law for filing the Company's tax return for
the taxable year in which the Plan and Trust was adopted, or such later date as
the Secretary of the Treasury may prescribe, and (iv) such contribution is
returned to the Company within one year after the date the initial qualification
is denied;

               (b) any contribution by the Company that was made by a mistake of
fact, provided that such a contribution is returned to the Company within one
year of the contribution;

               (c) any contribution by the Company (or any portion of it) that
was disallowed by the Internal Revenue Service as a deduction, provided that
such contribution (or such portion of it), to the extent disallowed, is returned
to the Company within one year of the disallowance of the deduction; and

               (d) upon termination of the Plan, any assets held in a suspense
account pursuant to SECTION 4.13(c)(iii).

SUBSECTIONS (b) and (c) above shall be operative only if, and to the extent,
expressly authorized by the applicable Regulations, or a Revenue Ruling, Revenue
Procedure, or other official promulgation of the Internal Revenue Service.

               Section 13.2: Limitation On Participants' Rights. Participation
in the Plan and Trust shall not give any Employee the right to be retained in
the Company's employ or any right or interest in the Trust other than as
provided in the Plan. The Company reserves the right to dismiss any Employee
without any liability for any claim against the Trust (except to the extent
provided in the Plan) or against the Company. All benefits payable under the
Plan shall be provided solely from the assets of the Trust.

                                      -50-
<PAGE>

               Section 13.3: Receipt Or Release. Any payment to any Participant
or Beneficiary pursuant to the Plan shall, to the extent of it, be in full
satisfaction of all claims against the Trustee, the Committee, the Board of
Directors, and the Company, and the Committee may require such Participant or
Beneficiary, as a condition precedent to such payment, to sign a receipt and
release to such effect.

               Section 13.4: Nonassignability.

               (a) None of the benefits, payments, proceeds or claims of any
Participant or Beneficiary shall be subject to any claim of any creditor and, in
particular, they shall not be subject to attachment or garnishment or other
legal process by any creditor. In addition, no Participant or Beneficiary shall
have any right to alienate, anticipate, commute, pledge, encumber or assign any
of the benefits or payments or proceeds that he or she may expect to receive,
contingently or otherwise, under the Plan.

               (b) Any restriction or prohibition against the assignment or
alienation of benefits under the Plan shall not apply to (i) a "qualified
domestic relations order" ("QDRO"), as that term is defined in Code Section
414(p), or (ii) a benefit reduction or offset in accordance with Code Section
401(a)(13)(C). To the extent provided in any QDRO, a former spouse of a
Participant shall be treated as the spouse or surviving spouse of such
Participant for all purposes under the Plan. Notwithstanding any other provision
in this Plan, a lump sum distribution may be made to an alternate payee under a
QDRO at any time after the Committee has determined that such QDRO satisfies the
requirements of Code Section 414(p) and Section 206(d) of ERISA, and regardless
of whether or not the Participant who is a party to such QDRO is then eligible
to receive a distribution under the Plan.

               Section 13.5: Governing Law. The Plan and the Trust shall be
construed, administered, and governed in all respects under and by applicable
federal law and, if they are not inconsistent with federal law, the laws of the
State of California. If any provision is susceptible to more than one
interpretation, the controlling interpretation shall be the one that is
consistent with the Plan being a qualified plan under Code Section 401. If any
provision of the Plan is held by a court of competent jurisdiction to be invalid
or unenforceable, the other provisions shall continue to be fully effective.

               Section 13.6: Headings. Headings and subheadings in the Plan are
inserted for convenience of reference only, and they are not to be considered in
construing the provisions of the Plan.

               Section 13.7: Counterparts. This Agreement may be signed in
counterparts, each of which shall be deemed an original, and all such
counterparts

                                      -51-
<PAGE>

shall constitute but one and the same document, which may be sufficiently
evidenced by any one counterpart.

               Section 13.8: Successors And Assigns. This Agreement shall inure
to the benefit of, and be binding upon, the parties to it, and their successors
and assigns.

               Section 13.9: Gender And Number. As used in the Plan, the
masculine, feminine and neuter gender, and the singular and plural number, each
include the other(s), unless the context indicates otherwise.

               Section 13.10: Merger, Consolidation Or Transfer Of Plan Assets.
The Plan shall not be merged or consolidated with, nor shall its assets or
liabilities be transferred to, any other plan (the "new plan") unless each
Participant would receive in such new plan a benefit immediately after such
merger, consolidation or transfer, if such new plan were then terminated, that
is equal to, or greater than, the benefit he or she would have been entitled to
receive immediately before such merger, consolidation or transfer, if the Plan
had been terminated then.

               Section 13.11: Joinder Of Parties. In any action or other
judicial proceeding affecting the Plan, it shall be necessary to join as parties
only the Trustee, the Committee and the Company, and no Participant or other
person having an interest in the Plan shall be entitled to any notice or service
of process.

               Section 13.12: The Trust. This Plan and the Trust are both part
of and constitute a single integrated employee benefit plan and trust and shall
be construed together.

               Section 13.13: Participation By Affiliated Companies. Upon the
written consent of the Board of Directors, any Affiliated Company may adopt the
Plan. Any Affiliated Company that executes the Signature Page of the Plan shall,
without the need for any further act, be deemed to have adopted the Plan with
the consent of the Board of Directors.

               Section 13.14: Special Requirements For USERRA.

               (a) Despite any other provision of the Plan, an Employee
re-employed under Chapter 43 of Title 38, United States Code ("USERRA") shall
not incur a Break in Service by reason of such Employee's period of Qualified
Military Service.

                                      -52-
<PAGE>

               (b) Each period of Qualified Military Service served by an
Employee shall, upon reemployment under USERRA with the Company, constitute
service with the Company for the purpose of determining the nonforfeitability of
the Employee's accrued benefits under the Plan and for the purpose of
determining the accrual of benefits under the Plan.

               (c) An Employee re-employed under USERRA shall be entitled to
accrued benefits that are contingent on the making of, or derived from, employee
contributions or elective deferrals only to the extent the Employee makes
payment to the Plan with respect to such contributions or deferrals. No such
payment may exceed the amount the Employee would have been permitted or required
to contribute had the Employee remained continuously employed by the Company
throughout the period of Qualified Military Service. Any payment to the Plan
shall be made during the period beginning on the date of reemployment and whose
duration is three times the period of the Qualified Military Service (but not
greater than five years).

               (d) For purposes of this Section, "Qualified Military Service"
shall mean any service in the uniformed services (as defined in USERRA) by any
Employee if such Employee is entitled to reemployment rights under USERRA with
respect to such service.

                                * * * * * * * * *

                            [Signature Page Follows]

                                      -53-
<PAGE>

                                 Signature Page

               The Company has signed the Plan on the date indicated below, to
be effective as of the Effective Date.

                                            "Company"

Dated:  ___________, 2001                   CATHAY BANCORP, INC.

                                            By _________________________________

                                               Its _____________________________

Dated:  ___________, 2001                   CATHAY BANK

                                            By _________________________________

                                               Its _____________________________

                                      -54-<PAGE>

                                                                     EXHIBIT 4.1

                          FOREST CITY ENTERPRISES, INC.

                          REGISTRATION RIGHTS AGREEMENT

                  This Registration Rights Agreement (this "AGREEMENT") is
entered into as of March 12, 2002 by and among Forest City Enterprises, Inc.,
an Ohio corporation (the "COMPANY"), and those holders (individually, a "HOLDER"
and collectively, the "HOLDERS") of the Class A Common Stock of the Company set
forth on EXHIBIT A attached hereto. Capitalized terms used herein and not
defined in context will have the respective meanings given to them in SECTION 2.

                                    AGREEMENT
                                    ---------

                  In consideration of the mutual covenants herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

1.       REGISTRATION

         1.1      DEMAND REGISTRATION.

                  (a) Procedure. Subject to the conditions of this SECTION 1.1,
on one occasion following the date of this Agreement, the Holders of all of the
Registrable Securities may request that the Company register under the
Securities Act the resale of up to $60 million of the Registrable Securities
pursuant to a registration statement on Form S-3 or any successor form thereto
(together with all amendments, supplements and exhibits thereto, the
"REGISTRATION STATEMENT") to be filed with the SEC. In such event, the Company
will use reasonable efforts to file, as expeditiously as reasonably possible and
in any event within 180 days of the receipt of such request, the Registration
Statement under the Securities Act to register all Registrable Securities that
the Holders request to be registered.

                  (b) Underwritten Offerings. If the Holders intend to
distribute the Registrable Securities covered by their request by means of an
underwriting, they will so advise the Company as a part of their request made
pursuant to this SECTION 1.1. The right of any Holder to registration pursuant
to this SECTION 1.1 will be conditioned upon such Holder's participation in the
underwriting arrangements required by this SECTION 1.1 and the inclusion of such
Holder's Registrable Securities in the underwriting, to the extent requested and
provided herein. The Company will (together with all Holders proposing to
distribute their securities through such underwriting) enter into an
underwriting agreement in customary form with the managing underwriter selected
for such underwriting by the Company. If any Holder of Registrable Securities
disapproves of the terms of the underwriting, such Person may elect to withdraw
therefrom by written notice to the Company, the managing underwriter and the
remaining Holders. The Registrable Securities so withdrawn will also be
withdrawn from registration and will not be transferred prior to 180 days
following the effective date of such registration. Any such withdrawn
Registrable Securities will cease to be "Registrable Securities," and the Holder
thereof will not have any further rights pursuant to this Agreement.

<PAGE>

                  (c) Limitations. The Company will not be required to effect a
registration of the Registrable Securities under the Securities Act or any
registration or qualification under state securities laws pursuant to this
SECTION 1.1:

                      (i) during the period beginning on the date on which the
Company gives notice to the Holders of its estimated date of filing of, and
ending on the date 180 days immediately following the effective date of, a
registration statement related to an underwritten public offering; PROVIDED that
the Company is actively employing in good faith all reasonable efforts to cause
such underwritten public offering to become effective;

                      (ii) if the Company determines reasonably and in good
faith that a Disadvantageous Condition exists, in which event the Company will
have the right to defer the filing of the Registration Statement; PROVIDED;
HOWEVER, that in no event may the Company defer filing hereunder for more than
two periods of up to 120 days each in any twelve month period; or

                      (iii) in any particular jurisdiction in which the Company
would be required to execute a general consent to service of process in
effecting such registration or qualification.

                  (d) Suspension. Notwithstanding anything to the contrary in
this SECTION 1.1, the Company may suspend, for up to 120 days in its sole
discretion, use of the Registration Statement if it has been declared effective
by the SEC at any time if the Company determines reasonably and in good faith
that a Disadvantageous Condition exists. In the event of a Disadvantageous
Condition, the Company will provide notice to the Holders of the Company's
determination that a Disadvantageous Condition exists. The Company shall use its
reasonable efforts to cause the period during which the Registration Statement
is to remain effective pursuant to SUBSECTION 1.3(a) to be extended by the
number of days of any such suspension on account of a Disadvantageous Condition.

         1.2      EXPENSES OF REGISTRATION. Except as specifically provided
herein, all Registration Expenses (including Selling Expenses) incurred in
connection with any registration pursuant to SECTION 1.1 will be borne by the
Holders of the Registrable Securities so registered pro rata on the basis of the
number of shares so registered.

         1.3      REGISTRATION PROCEDURES. Whenever required to effect the
registration of any Registrable Securities, the Company will, as expeditiously
as reasonably possible:

                  (a) Prepare and File Registration Statement. Prepare and file
with the SEC the Registration Statement and use reasonable efforts to cause the
Registration Statement to become effective, and use reasonable efforts to keep
the Registration Statement effective at all times until the earlier of (i) the
two-year anniversary of the date that the Registration Statement became
effective or (ii) the date on which each Holder shall have sold all of its
Registrable Securities covered by the Registration Statement;

                  (b) Amendments and Supplements. Prepare and file with the SEC
such amendments and supplements to the Registration Statement and the prospectus
used in

                                       2
<PAGE>

connection with the Registration Statement as may be necessary to comply with
the provisions of the Securities Act with respect to the disposition of all
securities covered by the Registration Statement for the period set forth in
paragraph (a) above;

                  (c) Furnish Registration Statement and Prospectus. Furnish to
the Holders participating in such registration and to the underwriters or agents
of the Holders, if any, such reasonable number of copies of the Registration
Statement and any preliminary or final prospectus, in conformity with the
requirements of the Securities Act, as they may reasonably request in order to
facilitate the disposition of Registrable Securities owned by such Holders;

                  (d) State Securities Laws. Use its reasonable best efforts to
register and qualify the securities covered by the Registration Statement under
such other securities or Blue Sky laws of such states or jurisdictions as is
reasonably requested by the Holders; PROVIDED, HOWEVER, that the Company will
not be required in connection therewith or as a condition thereto to qualify to
do business or to file a general consent to service of process in any such
states or jurisdictions where the Company is not currently so qualified or
registered;

                  (e) Underwriting Agreement. In the event of any underwritten
public offering, enter into and perform its obligations under an underwriting
agreement, in usual and customary form, with the managing underwriter(s) of such
offering;

                  (f) Notice of Changes. Notify each Holder of Registrable
Securities covered by the Registration Statement at any time when a prospectus
relating thereto is required to be delivered under the Securities Act of the
happening of any event as a result of which the prospectus included in the
Registration Statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in the light of the
circumstances then existing and, at the request of such Holder, prepare and
furnish to such Holder a reasonable number of copies of a supplement or an
amendment of such prospectus as may be necessary so that, as thereafter
delivered to the purchasers of the securities covered by the Registration
Statement, such prospectus does not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statement therein not misleading or incomplete in light of the
circumstances then existing; and

                  (g) Listing on Securities Exchange. Use its reasonable efforts
to cause all such Registrable Securities registered hereunder to be listed on
The New York Stock Exchange or any other national securities exchange, or quoted
in a U.S. automated inter-dealer quotation system, as the case may be, on which
similar securities issued by the Company are then listed or quoted.

         1.4      TERMINATION OF REGISTRATION RIGHTS. A Holder's registration
rights hereunder will expire at such time as all Registrable Securities held by
and issuable to such Holder may be sold under Rule 144 during any 90-day period
without being subject to the volume limitations contained therein.

                                       3
<PAGE>

         1.5      DELAY OF REGISTRATION; FURNISHING INFORMATION.

                  (a) Delay of Registration. No Holder has any right to obtain
or seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this SECTION 1.

                  (b) Furnishing Information. It is a condition precedent to the
obligations of the Company to take any action pursuant to SECTION 1.1 with
respect to Registrable Securities of a Holder that such Holder furnish to the
Company such information regarding such Holder, the Registrable Securities held
by such Holder and the intended method of disposition of such securities by such
Holder as is required to effect the registration of such Holder's Registrable
Securities.

         1.6      INDEMNIFICATION. In the event any Registrable Securities are
included in the Registration Statement pursuant to SECTION 1.1:

                  (a) By the Company. To the extent permitted by law, the
Company will indemnify and hold harmless each Holder and each Person, if any,
who controls such Holder within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act, against any losses, claims, damages, or
liabilities (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal or state securities law,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (each, a "VIOLATION") by the Company:

                      (i) any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement, or any preliminary or
final prospectus contained therein, or any amendment or supplement thereto;

                      (ii) the omission or alleged omission to state therein a
material fact required to be stated therein, or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading; or

                      (iii) any violation or alleged violation by the Company of
the Securities Act, the Exchange Act, any state securities law or any rule or
regulation under any of them in connection with the offering covered by the
Registration Statement.

                  The Company will pay to each such Holder or controlling Person
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
PROVIDED, HOWEVER, that the indemnity agreement contained in this SUBSECTION
1.6(a) will not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the written
consent of the Company, which consent will not be unreasonably withheld, nor
will the Company be liable in any such case for any such loss, claim, damage,
liability or action to the extent that it arises out of or is based upon a
Violation that occurs in reliance upon and in conformity with information
furnished expressly for use in connection with such registration by such Holder
or controlling Person of such Holder.

                                       4
<PAGE>

                  (b) By Selling Holders. To the extent permitted by law, each
Holder will, if Registrable Securities held by such Holder are included in the
securities as to which such registration, qualifications or compliance is being
effected, indemnify and hold harmless the Company, each of its directors, its
officers and each Person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act, and any
other Holder or other Person selling securities under the Registration Statement
or any of such other Holder's or any Person who controls such Holder or other
Person within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act, against any losses, claims, damages or liabilities (joint or
several) to which the Company or any such director, officer, controlling Person
or other such Holder or controlling Person of such other Holder or other Person
may become subject under the Securities Act, the Exchange Act or other federal
or state securities law, insofar as such losses, claims, damages or liabilities
(or actions in respect thereto) arise out of or are based upon any Violation, in
each case to the extent (and only to the extent) that such Violation occurs in
reliance upon and in conformity with written information furnished expressly by
such Holder for use in connection with such registration. Each such Holder will
pay any legal or other expenses reasonably incurred by the Company or any such
director, officer, controlling Person or other Holder or controlling Person of
such other Holder or other Person in connection with investigating or defending
any such loss, claim, damage, liability or action if it is judicially determined
that there was such a Violation; PROVIDED, HOWEVER, that the indemnity agreement
contained in this SUBSECTION 1.6(b) will not apply to amounts paid in settlement
of any such loss, claim, damage, liability or action if such settlement is
effected without the consent of the Holder, which consent will not be
unreasonably withheld; and PROVIDED FURTHER, that in no event will the total
amounts payable in indemnity by a Holder under this SUBSECTION 1.6(b) in respect
of any Violation exceed the net proceeds received by such Holder in the
registered offering out of which such Violation arises.

                  (c) Notice. Promptly after receipt by an indemnified party
under this SECTION 1.6 of notice of the commencement of any action (including
any governmental action), such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this SECTION 1.6,
deliver to the indemnifying party a written notice of the commencement thereof,
and the indemnifying party will have the right to participate in, and, to the
extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume the defense thereof with counsel; PROVIDED,
HOWEVER, that an indemnified party (together with all other indemnified parties
that may be represented without conflict by the same counsel) will have the
right to retain one separate counsel, with the reasonable fees and expenses to
be paid by the indemnifying party, if representation of such indemnified party
by the counsel retained by the indemnifying party would be inappropriate due to
actual differing interests between such indemnified party and any other party
represented by such counsel in such proceeding and such differing interests are
confirmed in writing by legal counsel of the indemnified party or parties
seeking separate counsel. The failure of any indemnified party to give notice as
provided herein will not relieve the indemnifying party of its obligations under
this SECTION 1.6 unless the failure to give such notice is materially
prejudicial to any indemnifying party's ability to defend such action.

                                       5
<PAGE>

                  (d) Defect Eliminated in Final Prospectus. The foregoing
indemnity agreements of the Company and Holders are subject to the condition
that, insofar as they relate to any Violation made in a preliminary prospectus
but eliminated or remedied in the amended prospectus on file with the SEC at the
time the Registration Statement becomes effective or the amended prospectus
filed with the SEC pursuant to SEC Rule 424(b) (the "FINAL PROSPECTUS"), such
indemnity agreement will not inure to the benefit of any Person if a copy of the
Final Prospectus was furnished to the indemnified party and was not furnished to
the Person asserting the loss, liability, claim or damage at or prior to the
time such action is required by the Securities Act.

                  (e) Contribution. If the indemnification provided for in this
SECTION 1.6 is held by a court of competent jurisdiction to be unavailable to an
indemnified party with respect to any losses, claims, damages or liabilities
referred to herein, the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, will, to the extent permitted by applicable law,
contribute to the amount paid or payable by such indemnified party as a result
of such loss, claim, damage or liability in such proportion as is appropriate to
reflect the relative fault of the indemnifying party on the one hand and of the
indemnified party on the other in connection with the Violation(s) that resulted
in such loss, claim, damage or liability, as well as any other relevant
equitable considerations. The relative fault of the indemnifying party and of
the indemnified party will be determined by a court of law by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission to state a material fact relates to information supplied by
the indemnifying party or by the indemnified party and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. In any such case, (A) no such Holder will be
required to contribute any amount in excess of the net proceeds received by such
Holder in connection with the Registration Statement; and (B) no Person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) will be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

                  (f) Survival. The obligations of the Company and Holders under
this SECTION 1.6 will survive completion of any offering of Registrable
Securities in the Registration Statement and the termination of this Agreement.
No indemnifying party, in the defense of any such claim or litigation, will,
except with the consent of each indemnified party, consent to entry of any
judgment or enter into any settlement that does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such indemnified party
of a release from all liability in respect to such claim or litigation.

         1.7      "MARKET STAND-OFF". In the event of an underwritten public
offering of the Company's Class A Common Stock (or other securities), each
Holder agrees that it will not sell, transfer, make any short sale of, grant any
option for the purchase of, or enter into any hedging or similar transaction
with the same economic effect as a sale, any Class A Common Stock (or other
securities) of the Company held by such Holder, whether or not pursuant to the
Registration Statement pursuant to SECTION 1.1, for a period specified by the
representative of the underwriters of Class A Common Stock (or other securities)
of the Company not to exceed

                                       6
<PAGE>

the period starting with the filing with the SEC, and 180 days following the
effective date of, any registration statement related to such underwritten
public offering.

                  For purposes of this SECTION 1.7, the term "Company" includes
any wholly-owned subsidiary of the Company into which the Company merges or
consolidates. In order to enforce the foregoing covenant, the Company has the
right to place restrictive legends on the certificates representing the shares
subject to this SECTION 1.7 and to impose stop transfer instructions with
respect to the Registrable Securities and such other securities (and the
securities of the Company held by every other Person subject to the foregoing
restriction) until the end of such period. Each Holder will enter into any
agreement reasonably required by the underwriters to implement the foregoing
within any reasonable timeframe so requested. Each Holder will execute and
deliver such other agreements as may be reasonably requested by the Company or
the underwriter that are consistent with the foregoing or that are necessary to
give further effect thereto. In addition, if requested by the Company or the
representative of the underwriters of Class A Common Stock (or other securities)
of the Company, each Holder will provide, within ten days of such request, such
information as may be required by the Company or such representative in
connection with the completion of any public offering of the Company's
securities pursuant to a registration statement filed under the Securities Act.
The Company may impose stop-transfer instructions with respect to the shares of
Class A Common Stock (or other securities) of the Company subject to the
foregoing restriction until the end of said 180-day period. Each Holder agrees
that any transferee of any shares of Registrable Securities will be bound by
this SECTION 1.7.

2.       DEFINITIONS.

         2.1      GENERALLY. As used in this Agreement, the following terms have
the following respective meanings:

                  (a) "CLASS A COMMON STOCK" means the Class A common stock,
$.33 1/3 par value per share, of the Company.

                  (b) "DISADVANTAGEOUS CONDITION" means the existence of a
condition such that the preparation and filing of a registration statement
before effectiveness and/or the use of an effective registration statement to
make resales would (i) interfere with or affect the negotiation or completion of
any plan or proposal by the Company to engage in any significant transaction
that is being contemplated by the Company (whether or not a final decision has
been made to undertake such transaction) at the time the right to delay is
undertaken, (ii) require disclosure of information that the Company has a bona
fide business purpose for preserving as confidential or (iii) lead the Company's
management to believe, in good faith, that it would be prudent to prohibit sales
under such registration statement.

                  (c) "EXCHANGE ACT" means the Securities Exchange Act of 1934.

                  (d) "PERSON" means any natural person, corporation,
partnership, association, joint stock company, trust, joint venture, limited
liability company or other entity.

                                       7
<PAGE>

                  (e) "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of
effectiveness of such registration statement or document.

                  (f) "REGISTRABLE SECURITIES" means Class A Common Stock issued
by the Company to a Holder as of the date of this Agreement (as such shares may
be adjusted upon the occurrence of any stock dividend or subdivision,
combination or split of such shares). Notwithstanding the foregoing, Registrable
Securities do not include any securities sold by a Person to the public either
pursuant to a registration statement or Rule 144 or sold in a private
transaction.

                  (g) "REGISTRATION EXPENSES" means all expenses incurred by the
Company in complying with SECTION 1.1 hereof, including, without limitation, all
registration and filing fees, printing expenses, fees and disbursements of
counsel for the Company, fees and disbursements of the independent accountants
of the Company, fees and disbursements of a special counsel for the Holders,
blue sky fees and expenses and the expense of any special audits incident to or
required by any such registration (but excluding the compensation of regular
employees of the Company which will be paid in any event by the Company).

                  (h) "SEC" means the Securities and Exchange Commission.

                  (i) "SECURITIES ACT" means the Securities Act of 1933.

                  (j) "SELLING EXPENSES" means all underwriting discounts,
selling commissions and concessions and stock transfer taxes applicable to the
securities registered for the account of the Holders.

3.       Miscellaneous.

         3.1      AMENDMENT AND WAIVER.

                  (a) Amendments. Except as otherwise expressly provided, this
Agreement may be amended or modified in whole or in part only by a writing that
makes reference to this Agreement executed by the Company and the Holders
holding at least a majority of the then outstanding shares of Registrable
Securities. Any amendment effected in accordance with this SECTION 3.1 will be
binding upon all of the parties hereto.

                  (b) Waivers. Except as otherwise expressly provided, the
obligations of any party hereunder may be waived (either generally or in a
particular instance and either retroactively or prospectively) only by a writing
that makes reference to this Agreement executed by the Holders holding at least
majority of the then outstanding shares of Registrable Securities. Any waiver by
any party of any violation of, breach of, or default under any provision of this
Agreement or any other agreement provided for herein is not to be construed as,
or constitute, a continuing waiver of such provision, or waiver of any other
violation of, breach of, or default under any other provision of this Agreement
or any other agreement provided for herein. Any waiver effected in accordance
with this SECTION 3.1 will be binding upon all of the parties hereto.

                                       8
<PAGE>

                  (c) Record Holders. For the purposes of determining the number
of Holders entitled to vote or exercise any rights hereunder, the Company will
be entitled to rely solely on the list of record holders of its stock as
maintained by or on behalf of the Company.

         3.2      DELAYS OR OMISSIONS. It is agreed that no delay or
omission to exercise any right, power or remedy accruing to any party, upon any
breach, default or noncompliance by another party under this Agreement will
impair any such right, power or remedy, nor will it be construed to be a waiver
of any such breach, default or noncompliance, or any acquiescence therein, or of
any similar breach, default or noncompliance thereafter occurring. It is further
agreed that any waiver, permit, consent or approval of any kind or character on
any party's part of any breach, default or noncompliance under this Agreement,
or any waiver on such party's part of any provisions or conditions of the
Agreement must be in writing and will be effective only to the extent
specifically set forth in such writing. All remedies, either under this
Agreement, by law, or otherwise afforded to any party, are cumulative and not
alternative.

         3.3      ENTIRE AGREEMENT. This Agreement sets forth the entire
understanding of the parties hereto and supersedes in its entirety all prior
contracts, agreements, arrangements, communications, discussions,
representations and warranties, whether oral or written, between or among any of
the parties with respect to the subject matter hereof.

         3.4      GOVERNING LAW. This Agreement is to be in all respects
governed by and construed in accordance with the internal substantive laws of
Ohio, without giving effect to the principles of conflicts of law thereof, and
the laws of the United States applicable therein. Each party hereto will submit
to the exclusive jurisdiction of the federal and state courts of Ohio with
respect to the breach or the performance of this Agreement or the enforcement of
any and all rights, duties, liabilities, obligations, powers and other relations
between the parties arising under this Agreement.

         3.5      NOTICES. All notices required or permitted hereunder must be
in writing and will be deemed effectively given: (a) upon personal delivery to
the party to be notified, (b) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient, if not, then on the next business
day, (c) five days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, to a domestic address, (d) ten days
after having been sent by registered or certified mail, return receipt
requested, postage prepaid, to an international address, (e) one day after
deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt, to a domestic address or (f)
three days after deposit with an internationally recognized overnight courier,
specifying next day delivery, with written verification of receipt, to an
international address. All communications must be addressed (i) in the case of
the Company, to the address set forth on the signature page hereto or such other
address as the Company may designate by ten days advanced written notice to the
other parties hereto; or (ii) in the case of any Holder, to the address of such
Holder as set forth on the signature page or EXHIBIT A of this Agreement or such
other address as such Holder may designate by ten days advanced written notice
to the other parties hereto.

                                       9
<PAGE>

         3.6      COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which will be deemed to be an original, and all of which
together will constitute one and the same instrument.

         3.7      SUCCESSORS AND ASSIGNS. This Agreement is binding upon and
inures to the benefit of the parties hereto and their respective heirs,
executors, legal representatives, successors and permitted assigns, except as is
expressly provided otherwise herein. No party hereto may assign or transfer its
rights hereunder without the prior written consent of the other parties hereto.

         3.8      THIRD PARTIES. Except as contemplated under SECTION 1.6,
nothing expressed or implied in this Agreement is intended, or is to be
construed, to confer upon or give any Person other than the parties hereto any
rights or remedies under or by reason of this Agreement.

         3.9       EXHIBITS. The exhibits attached to this Agreement are
incorporated herein and are a part of this Agreement for all purposes.

         3.10      HEADINGS. The headings in this Agreement are solely for
convenience of reference and are not to be given any effect in the construction
or interpretation of this Agreement.

         3.11      SEVERABILITY. Each section, subsection and lesser section of
this Agreement constitutes a separate and distinct undertaking, covenant and/or
provision hereof. Any provision of this Agreement finally determined to be
unlawful, invalid, illegal or unenforceable in any respect will be deemed
severed from this Agreement, but every other provision of this Agreement will
remain in full force and effect, and such unlawful, invalid, illegal or
unenforceable provision will be reformed and construed so that it will be
lawful, valid, legal and enforceable and reflect the original intent of the
parties hereto, to the maximum extent permitted by law.

         3.12     FURTHER INSTRUMENTS AND ACTIONS. The parties will execute such
further instruments and take such further action as may reasonably be necessary
to carry out the intent of this Agreement. Each party hereto will cooperate
affirmatively with all other parties hereto, to the extent reasonably requested
by such parties, to enforce rights and obligations herein provided.

         3.13      FACSIMILE SIGNATURES. This Agreement may be executed and
delivered by facsimile and upon such delivery the facsimile signature will be
deemed to have the same effect as if the original signature had been delivered
to the other party.

         3.14      CONSTRUCTION. All pronouns contained herein, and any
variations thereof, will be deemed to refer to the masculine, feminine or
neutral, singular or plural, as to the identity of the parties hereto may
require.

                                       10
<PAGE>

                  In Witness Whereof, the parties hereto have executed this
Registration Rights Agreement as of the date set forth in the first paragraph
hereof.

                                     COMPANY:

                                     FOREST CITY ENTERPRISES, INC.

                                     By: /s/ Charles A. Ratner
                                        -------------------------------------
                                        Name:  Charles A. Ratner
                                        Title: President and Chief
                                               Executive Officer

                                     Address for Notices:
                                        1100 Terminal Tower
                                        50 Public Square
                                        Cleveland, Ohio 44113

                                     HOLDERS:

                                     By: /s/ Deborah Ratner Salzberg
                                        -------------------------------------
                                        Deborah Ratner Salzberg
                                        Representative of and Attorney-in-Fact
                                        for the Holders

                                     Address for Notices:
                                        50 Public Square
                                        Suite 1600
                                        Cleveland, Ohio 44113

                                       11
<PAGE>

                                    EXHIBIT A

                               SCHEDULE OF HOLDERS

<Table>
<Caption>

                                                                                      CLASS A
(SELLING SHAREHOLDER)                    ADDRESS                                      OFFERED
---------------------                    -------                                      --------
<S>                                     <C>                                           <C>

Kevin Ratner 1986 Trust dtd              50 Public Square, Suite 1600                  52,278
12/18/86                                 Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Charles Ratner 1986 Family Trust dtd     50 Public Square, Suite 1600                  25,922
12/18/86 FBO Kevin Ratner                Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Rachel Ratner 1988 Trust dtd             50 Public Square, Suite 1600                  52,278
11/26/88                                 Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Charles Ratner 1986 Family Trust dtd     50 Public Square, Suite 1600                  25,922
12/18/86 FBO Rachel Ratner               Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Jonathan Ratner 1992 Trust dtd           50 Public Square, Suite 1600                  52,278
1/2/92                                   Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Charles Ratner 1986 Family Trust dtd     50 Public Square, Suite 1600                  25,921
12/18/86 FBO Adam Ratner                 Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Max Ratner 1988 Grandchildren's Trust    50 Public Square, Suite 1600                  31,222
dtd 12/21/88 FBO Adam Ratner             Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Charles Ratner 1986 Family Trust dtd     50 Public Square, Suite 1600                  25,921
12/18/86 FBO Jonathan Ratner             Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
James Ratner 1986 Family Trust dtd       50 Public Square, Suite 1600                  73,438
12/18/86 FBO Austin G. Ratner            Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
James Ratner 1986 Family Trust dtd       50 Public Square, Suite 1600                  73,438
12/18/86 FBO Daniel G. Ratner            Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Mark Ratner 1986 Family Trust dtd        50 Public Square, Suite 1600                  73,438
12/18/86 FBO Daniel E. Ratner            Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Mark Ratner 1986 Family Trust dtd        50 Public Square, Suite 1600                  73,438
12/18/86 FBO Stacy Ratner                Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Ronald Ratner 1986 Family Trust dtd      50 Public Square, Suite 1600                  73,438
12/18/86 FBO Matthew Ratner              Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Ronald Ratner 1986 Family Trust dtd      50 Public Square, Suite 1600                  73,437
12/18/86 FBO Sarah Ratner                Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Brian Ratner 1986 Family Trust dtd       50 Public Square, Suite 1600                  22,500
1/29/86 FBO Emily Ratner                 Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Albert B. Ratner 1989 Grandchildren's    50 Public Square, Suite 1600                  39,242
Trust dtd 6/12/89 FBO David Ratner       Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Brian Ratner 1986 Family Trust dtd       50 Public Square, Suite 1600                  22,500
1/29/86 FBO David Ratner                 Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Albert B. Ratner 1989 Grandchildren's    50 Public Square, Suite 1600                  38,725
Trust dtd 6/12/89 FBO Emily Ratner       Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Albert B. Ratner 1989 Grandchildren's    50 Public Square, Suite 1600                  73,307
Trust dtd 6/12/89 FBO Eric Salzberg      Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
Albert B. Ratner 1989 Grandchildren's    50 Public Square, Suite 1600                  71,357
Trust dtd 6/12/89 FBO Anna Salzberg      Cleveland, Ohio 44113
----------------------------------------------------------------------------------------------
The Berimore Company                     14600 Detroit Road, #1450                    303,500
                                         Lakewood, Ohio 44107-4257
----------------------------------------------------------------------------------------------
Fannye R. Shafran Trust                  14600 Detroit Road, #1450                      7,482
Generation Skipping                      Lakewood, Ohio 44107-4257
----------------------------------------------------------------------------------------------
Nathan P. Shafran Trust                  14600 Detroit Road, #1450                     12,394
Generation Skipping                      Lakewood, Ohio 44107-4257
----------------------------------------------------------------------------------------------
Fannye R. Shafran Trust                  14600 Detroit Road, #1450                    176,624
                                         Lakewood, Ohio 44107-4257
----------------------------------------------------------------------------------------------

                                                    GRAND TOTAL                     1,500,000

</Table>

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