Document:

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                                                                    Exhibit 10.3

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                     WILSON GREATBATCH LTD. EQUITY PLUS PLAN

                              MONEY PURCHASE PLAN

                                    Effective
                                 January 1, 1998

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                                Table of Contents

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ARTICLE I DEFINITIONS                                                          1
 Section 1.1 References                                                        1
 Section 1.2 Compensation                                                      1
 Section 1.3 Dates                                                             2
 Section 1.4 Employee                                                          2
 Section 1.5 Employer                                                          4
 Section 1.6 Fiduciaries                                                       4
 Section 1.7 Participant/Beneficiary                                           5
 Section 1.8 Participant Accounts                                              5
 Section 1.9 Plan                                                              5
 Section 1.10 Service                                                          5
 Section 1.11 Trust                                                            6
 Section 1.12 ESOP Specific Definitions                                        6

ARTICLE II PARTICIPATION                                                       8
 Section 2.1 Eligibility Service                                               8
 Section 2.2 Plan Participation                                                8
 Section 2.3 Termination of Participation                                      8
 Section 2.4 Re-Participation (Break In Service Rules)                         9

ARTICLE III ALLOCATIONS TO PARTICIPANT ACCOUNTS                               10
 Section 3.1 General Provisions                                               10
 Section 3.2 Allocation of Contributions and Forfeitures                      11
 Section 3.3 Rollover/Transfer Account                                        12
 Section 3.4 Allocation of Investment Results                                 12

ARTICLE IV PAYMENT OF PARTICIPANT ACCOUNTS                                    14
 Section 4.1 Vesting Service Rules                                            14
 Section 4.2 Vesting of Participant Accounts                                  14
 Section 4.3 Payment of Participant Account                                   17
 Section 4.4 Form of Distribution                                             21
 Section 4.5 In-Service Payments                                              21
 Section 4.6 Distributions under Domestic Relations Orders                    21

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                                Table of Contents

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ARTICLE V ADDITIONAL QUALIFICATION RULES                                       1
 Section 5.1 Limitations on Allocations under Code Section 415                 1
 Section 5.2 Joint and Survivor Annuity Requirements                           6
 Section 5.3 Distribution Requirements                                         8
 Section 5.4 Top-Heavy Provisions                                             11
 Section 5.6 ESOP Distribution Options                                        15

ARTICLE VI ADMINISTRATION OF THE PLAN                                         18
 Section 6.1 Fiduciary Responsibility                                         18
 Section 6.2 Plan Administrator                                               19
 Section 6.3 Claims Procedure                                                 21
 Section 6.4 Trust Fund                                                       21
 Section 6.5 Investment Policy                                                22
 Section 6.6 Valuation of the Trust Fund                                      23
 Section 6.7 Voting Company Stock                                             23
 Section 6.8 Current Obligations                                              24

ARTICLE VII AMENDMENT AND TERMINATION OF PLAN                                 25
 Section 7.1 Right to Discontinue and Amend                                   25
 Section 7.2 Amendments                                                       25
 Section 7.3 Protection of Benefits in Case of Plan Merger                    26
 Section 7.4 Termination of Plan                                              26

ARTICLE VIII MISCELLANEOUS PROVISIONS                                         27
 Section 8.1 Exclusive Benefit-- Non-Reversion                                27
 Section 8.2 Inalienability of Benefits                                       27
 Section 8.3 Employer-Employee Relationship                                   28
 Section 8.4 Binding Agreement                                                28
 Section 8.5 Separability                                                     28
 Section 8.6 Construction                                                     28
 Section 8.7 Copies of Plan                                                   28
 Section 8.8 Interpretation                                                   28
 Section 8.9 Securities and Exchange Commission Approval                      28
 Section 8.10 Nonterminable Right of Certain Holders                          28

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                     WILSON GREATBATCH LTD. EQUITY PLUS PLAN
                               MONEY PURCHASE PLAN

      This plan, executed on the date indicated at the end hereof, is made
effective as of January 1, 1998, by Wilson Greatbatch Ltd., a Corporation, with
its principal office located in Clarence, New York.

                                   WITNESSETH:

      WHEREAS, the Employer desires to establish a permanent qualified employee
stock ownership plan for its employees in order to enable its employees to share
in the growth and prosperity of the Corporation and to provide its employees and
their beneficiaries with financial security in the event of retirement,
disability or death; and

      WHEREAS, the Employer intends to establish a stock bonus plan to be
hereinafter called the Wilson Greatbatch Ltd. Equity Plus Plan - Stock Bonus
Plan to constitute an employee stock ownership plan in conjunction with the plan
established hereunder;

      NOW THEREFORE, the premises considered, the following are the provisions
of the qualified plan of the Employer.

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                              ARTICLE I DEFINITIONS

Section 1.1 References

      (a) Code means the Internal Revenue Code of 1986, as it may be amended
from time to time.

      (b) ERISA means the Employee Retirement Income Security Act of 1974, as
amended.

Section 1.2 Compensation

      (a) Compensation means, except as provided in paragraph (b) hereof, any
earnings reportable as W-2 wages for Federal income tax withholding purposes
plus elective contributions for the plan year.

      Elective contributions are amounts excludible from the employee's Federal
taxable income and contributed by the Employer, at the employee's election to:

      (1)   A cafeteria plan (excludible under Code Section 125);
      (2)   A Code Section 401(k) arrangement (excludible under Code Section
            402(e)(3));
      (3)   A simplified employee pension (excludible under Code Section
            402(h)); or
      (4)   A tax sheltered annuity (excludible under Code Section 403(b)).

      Any reference in this plan to compensation shall be a reference to the
definition in this Section 1.2, unless the plan reference specifies a
modification to this definition. The plan administrator shall take into account
only compensation actually paid by the Employer for the relevant period. A
compensation payment includes compensation by the Employer through another
person under the common paymaster provisions in Code Sections 3121 and 3306.
Compensation from a related Employer which is not a participating Employer under
this plan shall be excluded.

      (b) Exclusions From Compensation - Notwithstanding the provisions of
paragraph 1.2(a), the following types of remuneration shall be excluded from the
Participant's compensation:

      Bonuses

      Compensation received during the current plan year which was considered
deferred compensation in a prior plan year

      Moving Expense Payment

      SAR Payments

      Contributions to or benefits from this plan

      Educational Assistance Payments

      Referral Payments

      Taxable Fringe Benefits (Auto, Group Term Life)

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      (c) Limitations on Compensation - For any plan year beginning after
December 31, 1993, the plan administrator shall take into account only the first
$150,000 (or beginning January 1, 1995, such larger amount as the Commissioner
of Internal Revenue may prescribe) of any Participant's compensation for
determining all benefits provided under the plan. The compensation dollar
limitation for a plan year shall be the limitation amount in effect on January 1
of the calendar year in which the plan year begins. If the plan should determine
compensation on a period of time that contains fewer than 12 calendar months
(such as for a short plan year), the annual compensation dollar limitation shall
be an amount equal to the compensation dollar limitation for the plan year
multiplied by the ratio obtained by dividing the number of full months in the
period by 12.

      (d) Compensation for Nondiscrimination Test - For purposes of determining
whether the plan discriminates in favor of highly compensated employees,
compensation means compensation as defined in this Section 1.2(a), except that
the Employer will not give effect to any exclusion from compensation specified
in Section 1.2(b). Notwithstanding the above, the Employer may elect to exclude
from this nondiscrimination definition of compensation any items of compensation
excludable under Code Section 414(s) and the applicable Treasury regulations,
provided such adjusted definition conforms to the nondiscrimination requirements
of those regulations.

Section 1.3 Dates

      (a) Accounting Date means the date(s) on which investment results are
allocated to Participants' accounts, including the allocation date and any
interim accounting date(s) noted below:

            No interim investment allocation dates.

      (b) Allocation Date means the last day of each plan year which is the date
on which any contributions are allocated to Participants' accounts.

      (c) The Effective Date of the plan is January 1, 1998.

      (d) Plan Entry Date means the participation date(s) specified in Article
II.

      (e) Plan Year means the 12-consecutive month period beginning on January 1
and ending on December 31.

      (f) Limitation Year (for purposes of limitations on benefits and
contributions under Code Section 415) means the plan year.

Section 1.4 Employee

      (a) (1) Employee means any person employed by the Employer. The term
employee shall include any employee of the Employer maintaining the plan or of
any other Employer required to be aggregated with such Employer under Code
Sections 414(b), (c), (m) or (o). The term employee shall also include any
leased employee deemed to be an employee of any Employer as provided in Code
Sections 414(n) or (o) and as defined in paragraph (2).

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            (2) Leased Employee means an individual (who otherwise is not an
employee of the Employer) who, pursuant to a leasing agreement between the
Employer and any other person, has performed services for the Employer (or for
the Employer and any persons related to the Employer within the meaning of Code
Section 414(n)(6)) on a substantially full time basis for at least one year; and
such services are performed under the primary direction or control of the
Employer. If a leased employee is treated as an employee by reason of this
Section 1.4(a)(2), compensation from the leasing organization which is
attributable to services performed for the Employer shall be considered as
compensation under the plan. Contributions or benefits provided a leased
employee by the leasing organization which are attributable to services
performed for the Employer shall be treated as provided by the Employer.

      Safe harbor plan exception - The plan shall not treat a leased employee as
an employee if the leasing organization covers the employee in a safe harbor
plan and, prior to application of this safe harbor plan exception, 20% or less
of the Employer's employees (other than highly compensated employees) are leased
employees. A safe harbor plan is a money purchase pension plan providing
immediate participation, full and immediate vesting, and a nonintegrated
contribution formula equal to at least 10% of the employee's compensation
without regard to employment by the leasing organization on a specified date.
The safe harbor plan must determine the 10% contribution on the basis of
compensation as defined in Code Section 415(c)(3) plus elective contributions.

      (b) Highly Compensated Employee means any employee who:

            (1) was a more than 5% owner of the Employer (applying the
constructive ownership rules of Code Section 318, and applying the principles of
Code Section 318, for an unincorporated entity) at any time during the current
or the preceding year; or

            (2) for the preceding year -

                  (A) had compensation from the Employer in excess of $80,000
(as adjusted by the Secretary of the Treasury pursuant to Code Section 415(d),
except that the base period shall be the calendar quarter ending September 30,
1996), and

                  (B) if the Employer elects the application of this clause for
such preceding year, was in the top-paid group of employees for such preceding
year. For this purpose, an employee is in the top-paid group of employees for
any year if such employee is in the group consisting of the top 20% of the
employees when ranked on the basis of compensation paid during such year:

      The term highly compensated employee also includes any former employee who
separated from service (or has a deemed separation from service, as determined
under Treasury regulations) prior to the plan year, performs no service for the
Employer during the plan year, and was a highly compensated employee either for
the separation year or any plan year ending on or after his 55th birthday, based
on the applicable rules in effect for such plan year.

      For purposes of determining who is a highly compensated employee under
this Section 1.4(b), compensation means compensation as defined in Section
5.1(d)(2). The plan administrator shall make the determination of who is a
highly compensated employee, and, if the Employer so elects, this determination
shall include the determination of the number and identity of the top-paid 20%
group, consistent with Code Section 414(q) and

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regulations issued under that Code Section. The Employer may make a calendar
year data election with regard to the year preceding the current plan year to
determine the employees with compensation in excess of $80,000 and the top-paid
20% group, as prescribed by Treasury regulations. A top-paid 20% group election
or a calendar year data election must apply to all plans and arrangements of the
Employer.

Section 1.5 Employer

      Employer means Wilson Greatbatch Ltd., or any successor entity by merger,
purchase, consolidation, or otherwise; or an organization affiliated with the
Employer which may assume the obligations of this plan with respect to its
employees by becoming a party to this plan. Another Employer whether or not it
is affiliated with the sponsor Employer may adopt this plan to cover its
employees by filing with the sponsor Employer a written resolution adopting the
plan, upon which the sponsor Employer shall indicate its acceptance of such
Employer as an Employer under the plan. Each such Employer shall be deemed to be
the Employer only as to persons who are on its payroll.

      The following Employer(s) have adopted this plan and been accepted as a
participating Employer:

                    Employer                   Effective Date
                    --------                   --------------

             Greatbatch-Hittman, Inc.             1-1-1999

Section 1.6 Fiduciaries

      (a) Named Fiduciary means the person or persons having fiduciary
responsibility for the management and control of plan assets.

      (b) Plan Administrator means the person or persons appointed by the named
fiduciary to administer the plan.

      (c) Trustee means the trustee named in the trust agreement executed
pursuant to this plan, or any duly appointed successor trustee.

      (d) Investment Manager means a person or corporation other than the
trustee appointed for the investment of plan assets:

            (1) who has the power to manage acquire or dispose of any asset of
the Plan;

            (2) who is registered as an investment adviser under the Investment
Advisors Act of 1940, a bank as defined in such Act, or an insurance company
qualified to perform services described in (1) above under the laws of more than
one state; and

            (3) who has acknowledged in writing that he or she is a fiduciary
with respect to the Plan.

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Section 1.7 Participant/Beneficiary

      (a) Participant means an eligible employee of the Employer who becomes a
member of the plan pursuant to the provisions of Article II, or a former
employee who has an accrued benefit under the plan.

      (b) Beneficiary means a person designated by a Participant who is or may
become entitled to a benefit under the plan. A beneficiary who becomes entitled
to a benefit under the plan remains a beneficiary under the plan until the
trustee has fully distributed his benefit to him. A beneficiary's right to (and
the plan administrator's, or a trustee's duty to provide to the beneficiary)
information or data concerning the plan shall not arise until he first becomes
entitled to receive a benefit under the plan.

Section 1.8 Participant Accounts

      (a) Employer Contribution Account means the balance of the separate
account derived from Employer contributions, including forfeitures (if any).
(See Section 3.2.)

      (b) Rollover/Transfer Account means the balance of the separate account
derived from rollover contributions and/or transfer contributions. (See Section
3.3.)

      (c) Accrued Benefit means the Participant's account balance(s) as of the
accounting date falling on or before the day on which the accrued benefit is
being determined.

Section 1.9 Plan

      Plan means Wilson Greatbatch Ltd. Equity Plus Plan - Money Purchase Plan
as set forth herein and as it may be amended from time to time.

Section 1.10 Service

      (a) Service means any period of time the employee is in the employ of the
employer, including any period the employee is on an unpaid leave of absence
authorized by the employer under a uniform, nondiscriminatory policy applicable
to all employees. Separation from service means that the employee no longer has
an employment relationship with the employer.

      (b) Hour of Service means each hour for which an employee is paid or
entitled to payment for the performance of duties for the employer.

      (c) Break in Service means a period of severance of at least 12
consecutive months.

      (d) (1) Period of Severance means a continuous period of time during which
the employee is not employed by the employer and is not credited with an hour of
service. Such period begins on the date the employee retires, terminates
service, or if earlier, the 12 month anniversary of the date on which the
employee was otherwise first absent from service. An employee shall receive
credit for any period of severance of less than 12 consecutive months.

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            (2) In the case of an individual who is absent from work for
maternity or paternity reasons, the 12-consecutive month period beginning on the
first anniversary of the first date of such absence shall not constitute a break
in service. For purposes of this paragraph, an absence from work for maternity
or paternity reasons means an absence: (i) by reason of the pregnancy of the
individual, (ii) by reason of a birth of a child of the individual, (iii) by
reason of the placement of a child with the individual in connection with the
adoption of such child by such individual, or (iv) for purposes of caring for
such child for a period beginning immediately following such birth or placement.

      (e) Other Service Credited - If the employer is a member of an affiliated
service group (under Code Section 414(m)), a controlled group of corporations
(under Code Section 414(b)), or a group of trades or businesses under common
control (under Code Section 414(c)), or any other entity required to be
aggregated with the employer pursuant to Code Section 414(o), service shall be
credited for any employment for any period of time for any other member of such
group. Service shall also be credited for any leased employee who is considered
an employee for purposes of this plan under Code Section 414(n) or (o).

      (f) (1) Year of Service means a 12-consecutive month period of service
during which the employee does not incur a break in service.

            (2) Crediting Years of Service - Generally, no service shall be
credited for periods during which the employee performs no services for the
employer. Further, no more than one year of service will be credited for any 12
consecutive-month period unless otherwise required by Code Section 410 or 411.

            (3) Predecessor Service - Service as an employee of
Greatbatch-Hittman, Inc. shall be credited as service under the plan for the
purposes of eligibility and vesting.

      (g) Qualified Military Service - Notwithstanding any provision of this
plan to the contrary, contributions, benefits, and service credit with respect
to qualified military service will be provided in accordance with Code Section
414(u).

Section 1.11 Trust

      (a) Trust means the qualified trust created under the Employer's plan.

      (b) Trust Fund means all property held or acquired by the plan.

Section 1.12 ESOP Specific Definitions

      (a) ESOP means an employee stock ownership plan. For the purpose of this
plan, an employee stock ownership plan means two defined contribution plans one
of which is a stock bonus plan and the other of which is a money purchase plan
where both plans are qualified under Code Section 401(a), are designed to invest
primarily in qualifying Employer securities, and satisfy the regulatory
requirements prescribed by the Secretary of the Treasury.

      (b) Company Stock means common stock issued by the Employer (or by a
corporation which is a member of the controlled group of corporations of which
the Employer is a member) which is readily tradable on an established securities
market. If

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there is no common stock which meets the foregoing requirement, the term company
stock means common stock issued by the Employer (or by a corporation which is a
member of the same controlled group) having a combination of voting power and
dividend rights equal to or in excess of: (A) that class of common stock of the
Employer (or of any other such corporation) having the greatest voting power,
and (B) that class of stock of the Employer (or of any other such corporation)
having the greatest dividend rights. Noncallable preferred stock shall be deemed
to be company stock if such stock is convertible at any time into stock which
constitutes company stock hereunder and if such conversion is at a conversion
price which (as of the date of the acquisition by the trust) is reasonable. For
purposes of the preceding sentence, pursuant to Code regulations, preferred
stock shall be treated as noncallable if after the call there will be a
reasonable opportunity for a conversion which meets the requirements of the
preceding sentence.

      (c) Investment Accounts - For investment purposes, a Participant's
accounts may be placed in three accounts as described herein.

            (1) Company Stock Account means the investment account of a
Participant which is credited with the shares of company stock purchased and
paid for by the trust fund or contributed to the trust fund.

            (2) Other Investment Account means the investment account of a
Participant which is credited with his share of the net gain (or loss) of the
plan, forfeitures, and Employer contributions in other than company stock and
which is debited with payments made to pay for company stock.

            (3) Directed Investment Account means the investment account of a
Participant which he elects under the provisions of Section 3.4(c) and which is
credited with the net gain (or loss) on his directed investments.

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                            ARTICLE II PARTICIPATION

Section 2.1 Eligibility Service

      For purposes of determining an employee's initial or continued eligibility
to participate in the plan, an employee shall receive credit for the aggregate
of all time periods commencing with the employee's first day of employment or
reemployment and ending on the date a break in service begins, except for
periods of service disregarded under Section 2.4. The first day of employment or
reemployment is the first day the employee performs an hour of service.
Fractional periods of a year will be expressed in terms of days.

Section 2.2 Plan Participation

      (a) Eligibility

            (1) Age/service requirements - An employee who is a member of the
eligible class of employees shall be immediately eligible for plan
participation.

            (2) Eligible class of employees - All employees of the Employer
shall be eligible to be covered under the plan except for employees in the
following categories:

                  - Employees included in a unit of employees covered by a
collective bargaining agreement between the Employer and employee
representatives if retirement benefits were the subject of good faith bargaining
and if less than two percent of the employees of the Employer who are covered
pursuant to that agreement are professionals as defined in Regulation Section
1.410(b)-9(g). For this purpose, the term "employee representatives" does not
include any organization more than half of whose members are employees who are
owners, officers or executives of the Employer.

                  - Leased employees who are considered employees under the
plan, unless such exclusion would cause the plan to fail to satisfy the
participation test or the coverage test of Code Section 410 or the
nondiscrimination requirements of Code Section 401(a)(4).

                  - Interns.

                  - Cooperative Student Program Participants.

      (b) Entry Date - An eligible employee shall participate in the plan on the
December 31 entry date coinciding with or immediately following the date of his
employment. If an employee who is not a member of the eligible class of
employees becomes a member of the eligible class, such employee shall
participate immediately, if he would have otherwise previously become a
Participant.

Section 2.3 Termination of Participation

      A Participant shall continue to be an active Participant of the plan so
long as he is a member of the eligible class of employees and he does not incur
a one-year break in service due to termination of employment. He shall become an
inactive Participant when he

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incurs a one-year break in service due to termination of employment, or at the
end of the plan year during which he ceases to be a member of the eligible class
of employees. He shall cease participation completely upon the later of his
receipt of a total distribution of his nonforfeitable account balance under the
plan or the forfeiture of the nonvested portion of the account balance.

Section 2.4 Re-Participation (Break In Service Rules)

      (a) Vested Participant - A former Participant who had a nonforfeitable
right to all or a portion of his account balance derived from Employer
contributions at the time of his termination from service shall become a
Participant immediately upon returning to the employ of the Employer, if he is a
member of the eligible class of employees.

      (b) Nonvested Participant - In the case of a former Participant who did
not have any nonforfeitable right to his account balance derived from Employer
contributions at the time of his termination from service, years of service
before a period of consecutive one-year breaks in service shall not be taken
into account in computing service if the number of consecutive one-year breaks
in service in such period equals or exceeds the greater of 5 or the aggregate
number of years of service before such breaks in service. Such aggregate number
of years of service shall not include any years of service disregarded under the
preceding sentence by reason of prior breaks in service.

      If such former Participant's years of service before termination from
service are disregarded pursuant to the preceding paragraph, he shall be
considered a new employee for eligibility purposes. If such former Participant's
years of service before termination from service may not be disregarded pursuant
to the preceding paragraph, he shall participate immediately upon returning to
the employ of the Employer, if he is a member of the eligible class of
employees.

      (c) Return to Eligible Class - If a Participant becomes an inactive
Participant, because he is no longer a member of the eligible class of
employees, but does not incur a break in service; such inactive Participant
shall become an active Participant immediately upon returning to the eligible
class of employees. If such Participant incurs a break in service, eligibility
shall be determined under the re-participation rules in paragraphs (a) and (b)
above.

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                 ARTICLE III ALLOCATIONS TO PARTICIPANT ACCOUNTS

Section 3.1 General Provisions

      (a) Maintenance of Participant Accounts - The plan administrator shall
maintain one or more separate accounts covering each Participant under the plan.
Such account(s) shall be increased by contributions, investment income, and
market value appreciation of the fund. It shall be decreased by market value
depreciation of the fund, forfeiture of nonvested amounts, benefit payments,
withdrawals and expenses.

      (b) Amount and Payment of Employer Contribution

            (1) Amount of Contribution - For each plan year, the Employer
contribution to the plan shall be the amount which is determined under the
provisions of this Article and Section 6.9. For any plan year with respect to
which Employer contributions are applied to repay principal on a loan made to
the plan under Section 6.9, the total amount of Employer contributions shall not
exceed twenty-five percent (25%) of the aggregate Participant compensation for
the plan year. The Employer may contribute any amount in excess of the maximum
for the plan year, without limitation, for the purpose of paying interest on
such loans. Further, the Employer contribution shall not exceed the maximum
amount deductible under Code Section 404.

      The Employer contributes to this plan on the conditions that its
contribution is not due to a mistake of fact and that the Internal Revenue
Service will not disallow the deduction for its contribution. The trustee, upon
written request from the Employer, shall return to the Employer the amount of
the Employer's contribution made due to a mistake of fact or the amount of the
Employer's contribution disallowed as a deduction under Code Section 404. The
trustee shall not return any portion of the Employer's contribution under the
provisions of this paragraph more than one year after the earlier of: (A) The
date on which the Employer made the contribution due to a mistake of fact; or
(B) The time of disallowance of the contribution as a deduction, and then, only
to the extent of the disallowance. The trustee will not increase the amount of
the Employer contribution returnable under this Section for any earnings
attributable to the contribution, but the trustee will decrease the Employer
contribution returnable for any losses attributable to it. The trustee may
require the Employer to furnish whatever evidence it deems necessary to confirm
that the amount the Employer has requested be returned is properly returnable
under ERISA.

            (2) Payment of Contribution - The Employer shall make its
contribution to the plan in cash or company stock within the time prescribed by
the Code or applicable Treasury regulations. Company stock will be valued at its
then fair market value.

      (c) Limitations and Conditions - Notwithstanding the allocation procedures
set forth in this Article, the allocations to Participants' accounts shall be
limited or modified to the extent required to comply with the provisions of
Article V (limitations on allocations under Code Section 415 and top heavy
provisions under Code Section 416).

      In any limitation year in which the allocation to one or more
Participants' accounts would be in excess of the limitations on allocations
under Code Section 415, the annual additions under the Wilson Greatbatch Ltd.
Equity Plus - Stock Bonus Plan which the

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Employer also sponsors will be reduced to the extent necessary to comply with
such limitations first. If any further reduction is required, the annual
additions under this plan will then be reduced with respect to such
Participants. Finally, if any further reduction is required, the annual
additions under the Wilson Greatbatch Ltd. Equity Plus Plan - 401(k) Retirement
Plan (formerly the Wilson Greatbatch Ltd. Profit Sharing Retirement Plan) will
be reduced with respect to such Participants.

Section 3.2 Allocation of Contributions and Forfeitures

      (a) Conditions for Allocations - An active Participant shall be eligible
for an allocation of the Employer contribution as of an allocation date,
provided that he satisfies the following conditions:

            (1) He completed at least one (1) hour of service during the current
plan year.

                                       AND

            (2) He is employed by the Employer on the last day of the plan year,
unless his employment terminated during the plan year by reason of retirement,
disability, or death.

      Notwithstanding the above conditions for allocation of contributions, if
the plan would otherwise fail to satisfy the participation test or coverage test
of Code Section 410 or the nondiscrimination requirements of Code Section
401(a)(4), the plan administrator shall amend the plan in a nondiscriminatory
manner to provide for the participation of additional employees and/or to cause
additional active Participants to be eligible for an allocation.

      (b) (1) Amount of Contribution - For each plan year, the Employer will
contribute and allocate to each eligible Participant's account an amount equal
to 5% of each such eligible Participant's compensation.

            (2) Top-Heavy Plan Years

      In any year in which this plan is top-heavy (as defined in Section
5.4(e)(2)) when aggregated with the Wilson Greatbatch Ltd. Equity Plus Plan -
401(k) Retirement Plan and the Wilson Greatbatch Ltd. Equity Plus Plan - Stock
Bonus Plan which the Employer also sponsors, the top-heavy minimum benefit
requirement shall be met under this plan.

      For such a plan year, the contribution on behalf of each Participant who
participates in both plans shall be increased as necessary to equal 3% of his
compensation. If a Participant only participates in this plan, the contribution
on his behalf shall be increased as necessary to equal 3% of his compensation.

            (3) Compensation - For purposes of the allocation of the Employer
contribution, compensation means compensation as defined in Section 1.2 for the
entire plan year.

      (c) Allocation of Forfeitures - Forfeitures for the plan year shall be
used to reduce Employer contributions for the current plan year.

                                      A-11
<PAGE>

Section 3.3 Rollover/Transfer Account

      Rollover and transfer contributions shall not be permitted under this plan
and no amount shall be credited to the rollover/transfer account.

Section 3.4 Allocation of Investment Results

      (a) Company Stock Account - The company stock account of each Participant
shall be credited as of each allocation date with his allocable share of company
stock (including fractional shares) purchased and paid for by the plan or
contributed in kind by the Employer. Stock dividends on company stock held in
his company stock account shall be credited to his company stock account when
paid.

      (b) Other Investments Account - As of each allocation date, prior to the
allocation of Employer contributions, any earnings or losses (net appreciation
or net depreciation) of the trust fund shall be allocated in the same proportion
that each Participant's other investments account bears to the total of all
Participants' other investment accounts as of such date. For this purpose, each
account balance shall be equal to the average balance for the period commencing
on the day following the prior accounting date and ending on the current
accounting date.

      Cash dividends on company stock allocated to each Participant's other
investments account after the first month of the plan year shall not share in
any earnings or losses of the trust fund for such year. However, the
administrator may direct that cash dividends on company stock be segregated into
a separate account for each Participant in a federally insured savings account,
certificate of deposit in a bank or savings and loan association, money market
certificate, or other short term debut security acceptable to the trustee until
such time as the allocations pursuant to this plan have been made, at which time
they may remain segregated or be invested as part of the general trust fund, or
such cash dividends may be distributed pursuant to Section 4.3(c)(6).

      Earnings or losses include the increase (or decrease) in the fair market
value of assets of the trust fund (other than company stock in the Participants'
company stock accounts) since the preceding allocation date.

      (c) Directed Investment Account

            (1) Each qualified Participant may elect within ninety (90) days
after the close of each plan year during the qualified election period to direct
the trustee in writing as to the investment of 25 percent of the total number of
shares of company stock that have ever been allocated to such qualified
Participant's company stock account (reduced by the number of shares of company
stock previously invested pursuant to a prior election). In the case of the
election year in which the Participant can make his last election, the preceding
sentence shall be applied by substituting "50 percent" for "25 percent." If the
qualified Participant elects to direct the trustee as to the investment of his
company stock account, such direction shall be effective no later than 180 days
after the close of the plan year to which such direction applies.

      Notwithstanding the above, if the fair market value (determined pursuant
to Section 6.7(b) at the plan valuation date immediately preceding the first day
on which a qualified Participant is eligible to make an election) of company
stock acquired by or contributed to

                                      A-12
<PAGE>

the plan and allocated to a qualified Participant's company stock account is
$500 or less, then such company stock shall not be subject to this paragraph.
For purposes of determining whether the fair market value exceeds $500, company
stock held in accounts of all employee stock ownership plans (as defined in Code
Section 4975(e)(7)) and tax credit employee stock ownership plans (as defined in
Code Section 409(a)) maintained by the Employer or any affiliated Employer shall
be considered as held by the plan.

            (2) For the purposes of this Section the following definitions shall
apply:

                  (A) Qualified Participant means any Participant who has
completed ten years of participation as a Participant in this plan and has
attained age 55.

                  (B) Qualified election period means the six plan year period
beginning with the first plan year in which the Participant first became a
qualified Participant.

            (3) If a qualified Participant elects to direct the investment of
his company stock account, the trustee shall convert the designated amount of
company stock to its fair market value cash equivalent and shall transfer such
cash value to the Participant's rollover/transfer account in the Wilson
Greatbatch Ltd. Equity Plus Plan - 401(k) Retirement Plan which the Employer
also sponsors (of its successor plan) where said account shall be subject to the
Participant's investment direction.

                                      A-13
<PAGE>

                   ARTICLE IV PAYMENT OF PARTICIPANT ACCOUNTS

Section 4.1 Vesting Service Rules

      (a) Vesting Year of Service - For purposes of determining the
nonforfeitable interest in the Participant's account balance, the Participant
shall receive credit for the aggregate of all time periods commencing with the
Participant's first day of employment or reemployment and ending on the date a
break in service begins, except for periods of service disregarded below. The
first day of employment or reemployment is the first day the Participant
performs an hour of service. Fractional periods of a year will be expressed in
terms of days. One vesting year of service shall be credited for each 12 month
period.

      (b) Break in Service Rules

            (1) Vested Participant - A former Participant who had a
nonforfeitable right to all or a portion of his account balance derived from
Employer contributions at the time of his termination from service shall retain
credit for all vesting years of service prior to a break in service.

            (2) Nonvested Participant - In the case of a former Participant who
did not have any nonforfeitable right to his account balance derived from
Employer contributions at the time of his termination from service, years of
service before a period of consecutive one year breaks in service shall not be
taken into account in computing service if the number of consecutive one year
breaks in service in such period equals or exceeds the greater of 5 or the
aggregate number of years of service before such breaks in service. Such
aggregate number of years of service shall not include any years of service
disregarded under the preceding sentence by reason of prior breaks in service.

            (3) Vesting for Pre-Break and Post-Break Accounts - In the case of a
Participant who has 5 or more consecutive one-year breaks in service, all years
of service after such breaks in service shall be disregarded for the purpose of
vesting the Employer-derived account balance that accrued before such breaks in
service. Whether or not such Participant's pre-break service counts in vesting
the post-break Employer-derived account balance shall be determined according to
the rules set forth in sub-paragraphs (1) and (2) above. Separate accounts shall
be maintained for the Participant's pre-break and post-break Employer-derived
account balance. Both accounts shall share in the investment earnings and losses
of the fund.

Section 4.2 Vesting of Participant Accounts

      (a) Determination of Vesting

            (1) Normal Retirement - A Participant's right to his account balance
shall be 100% vested and nonforfeitable upon the attainment of age 59 1/2 or the
fifth anniversary of participation, if later. If the Employer enforces a
mandatory retirement age, the normal retirement age shall be the lesser of the
mandatory age or the age specified herein.

            (2) Late Retirement - If a Participant remains employed after his
normal retirement age, his account balance shall remain 100% vested and
nonforfeitable. Such

                                      A-14
<PAGE>

Participant shall continue to receive allocations to his account as he did
before his normal retirement age.

            (3) Early Retirement - Not applicable.

            (4) Disability - If a Participant separates from service due to
disability, such Participant's right to his account balance as of his date of
disability shall be 100% vested and nonforfeitable. Disability means inability
to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or which has lasted or can be expected to last for a continuous period of
not less than 12 months. The permanence and degree of such impairment shall be
supported by medical evidence. Notwithstanding such definition, a Participant
who is eligible for Social Security disability benefits shall automatically
satisfy the definition of disability. Disability shall be determined by the plan
administrator after consultation with a physician chosen by the administrator.
In the administration of this section, all employees shall be treated in a
uniform manner in similar circumstances.

            (5) (A) Death - In the event of the death of a Participant who has
an accrued benefit under the plan, (whether or not he is an active Participant),
100% of the Participant's account balance as of the date of death shall be paid
to his surviving spouse; except that, if there is no surviving spouse, or if the
surviving spouse has already consented in a manner which is (or conforms to) a
qualified election under the joint and survivor annuity provisions of Code
Section 417(a) and regulations issued pursuant thereto and as set forth in
Section 5.2, then such balance shall be paid to the Participant's designated
beneficiary.

                  (B) Beneficiary Designation - Subject to the spousal consent
requirements of Section 5.2, the Participant shall have the right to designate
his beneficiaries, including a contingent death beneficiary, and shall have the
right at any time to change such beneficiaries. The designation shall be made in
writing on a form signed by the Participant and supplied by and filed with the
plan administrator. If the Participant fails to designate a beneficiary, or if
the designated person or persons predecease the Participant, "beneficiary" shall
mean the spouse, children, parents, brothers and sisters, or estate of the
Participant, in the order listed.

            (6) Termination From Service

                  (A) On or before the anniversary date coinciding with or
subsequent to the termination of a Participant's employment for any reason other
than retirement, disability or death, the amount of the vested portion of such
Participant's account shall remain in a separate account for the Participant and
share in allocations pursuant to Section 3.4 until such time as a distribution
is made to the Participant.

      If a portion of a Participant's account is forfeited, company stock
allocated to the Participant's company stock account must be forfeited only
after any other investment allocable to the Participant has been depleted. If
interest in more than one class of company stock has been allocated to a
Participant's account, the Participant must be treated as forfeiting the same
proportion of each such class.

                  (B) Effective for a Participant who is employed on or after
January 5, 1998, if such Participant separates from the service of the Employer
other than by retirement, disability, or death, his vested interest in his
Employer contribution account

                                      A-15
<PAGE>

shall be equal to the account balance multiplied by the vesting percentage
determined based on his vesting years of service as follows:

                       Years of Service    Vesting Percentage
                       ----------------    ------------------
                          0 Years                   0%
                            1                      20%
                            2                      40%
                            3                      60%
                            4                      80%
                       5 or More Years            100%

                  (C) Effective for a Participant who is employed before January
5, 1998, if such Participant separates from the service of the Employer other
than by retirement, disability, or death, his vested interest in his Employer
contribution account shall be 100% immediately vested on the date of his
participation in the plan.

      (b) Cashout Distributions and Restoration

            (1) Cashout Distribution - If an employee terminates service and the
value of his vested account balance derived from Employer and employee
contributions is not (and have never been) greater than $5,000, the employee
shall receive a distribution of the value of the entire vested portion of such
account balance and the nonvested portion will be treated as a forfeiture. For
purposes of this section, if the value of an employee's vested account balance
is zero, he shall be deemed to have received a distribution of such vested
account balance as of his separation from service.

      If an employee terminates service and the value of his vested account
balance exceeds (or has previously exceeded) $5,000, he may elect to receive the
value of his vested account balance after such termination as provided in
Section 4.3; however, the nonvested portion shall be treated as a forfeiture. If
the employee elects to have distributed less than the entire vested portion of
the account balance derived from Employer contributions, the part of the
nonvested portion that will be treated as a forfeiture is the total nonvested
portion multiplied by a fraction, the numerator of which is the amount of the
distribution attributable to Employer contributions and the denominator of which
is the total value of the vested Employer derived account balance.

            (2) Restoration of Account - If an employee receives a cashout
distribution pursuant to this section and resumes employment covered under this
plan before he incurs 5 consecutive one-year breaks in service, his
Employer-derived account balance shall be restored to the amount on the date of
distribution, if he repays to the plan the full amount of the distribution
attributable to Employer contributions before the earlier of 5 years after the
first date on which he is subsequently re-employed by the Employer, or the date
he incurs 5 consecutive one-year breaks in service following the date of the
distribution. If an employee is deemed to receive a distribution pursuant to
this Section 4.2(b), and he resumes employment covered under this plan before he
incurs 5 consecutive one-year breaks in service, upon the reemployment of such
employee, his Employer-derived account balance will be restored to the amount on
the date of such deemed distribution.

      (c) Forfeitures - If a Participant terminates employment before his
account balance derived from Employer contributions is fully vested, the
nonvested portion of his account shall be forfeited on the earlier of:

                                      A-16
<PAGE>

                  (A) The last day of the vesting computation period in which
the Participant first incurs 5 consecutive one-year breaks in service, or

                  (B) The date the Participant receives his entire vested
accrued benefit.

      If a Participant returns to employment with the Employer, and if the
forfeited amount is restored pursuant to subparagraph (b), then any amount
required to restore such forfeitures shall be deducted from forfeitures
occurring in the plan year of restoration. If forfeitures are insufficient for
the restoration, the Employer may make a contribution to the plan for such plan
year to satisfy the restoration. However, by the end of the plan year following
the plan year of restoration, sufficient forfeitures or Employer contributions
shall be credited to the account to satisfy the restoration.

      (d) Unclaimed Benefits

            (1) Forfeiture - The plan does not require the trustee or the plan
administrator to search for, or to ascertain the whereabouts of, any Participant
or beneficiary. At the time the Participant's or beneficiary's benefit becomes
distributable under the plan, the plan administrator, by certified or registered
mail addressed to his last known address of record, shall notify any Participant
or beneficiary that he is entitled to a distribution under this plan. If the
Participant or beneficiary fails to claim his distributive share or make his
whereabouts known in writing to the plan administrator within twelve months from
the date of mailing of the notice, the plan administrator shall treat the
Participant's or beneficiary's unclaimed payable accrued benefit as forfeited
and shall be used to reduce Employer contributions in accordance with Section
3.2(c). A forfeiture under this paragraph shall occur at the end of the notice
period or, if later, the earliest date applicable Treasury regulations would
permit the forfeiture. These forfeiture provisions apply solely to the
Participant's or beneficiary's accrued benefit derived from Employer
contributions.

            (2) Restoration - If a Participant or beneficiary who has incurred a
forfeiture of his accrued benefit under the provisions of this subsection makes
a claim, at any time, for his forfeited accrued benefit, the plan administrator
shall restore the Participant's or beneficiary's forfeited accrued benefit to
the same dollar amount as the dollar amount of the accrued benefit forfeited,
unadjusted for any gains or losses occurring after the date of the forfeiture.
The plan administrator shall make the restoration during the plan year in which
the Participant or beneficiary makes the claim from forfeitures occurring in
that plan year. If forfeitures are insufficient for the restoration, the
Employer shall make a contribution to the plan to satisfy the restoration. The
plan administrator shall direct the trustee to distribute the Participant's or
beneficiary's restored accrued benefit to him not later than 60 days after the
close of the plan year in which the plan administrator restores the forfeited
accrued benefit.

Section 4.3 Payment of Participant Account

      (a) Time of Payment

            (1) Commencement of Benefits - Unless the Participant elects
otherwise, distribution of benefits shall begin no later than the 60th day after
the latest of the close of the plan year in which:

                                      A-17
<PAGE>

                  (A) The Participant attains age 65 (or the plan's normal
retirement age, if earlier);

                  (B) Occurs the 10th anniversary of the year in which the
Participant commenced participation in the plan; or

                  (C) the Participant terminates service with the Employer,
(i.e. late retirement).

      Notwithstanding the foregoing, the failure of a Participant to consent to
a distribution while a benefit is immediately distributable, within the meaning
of Section 5.2(b), shall be deemed to be an election to defer commencement of
payment of any benefit sufficient to satisfy this section.

            (2) Payment Upon Retirement, Disability, or Death - Subject to the
provisions set forth in subparagraph (1) and in the Distribution Requirements of
Section 5.3, if the Participant terminates employment due to retirement,
disability or death, his account shall be paid as soon as administratively
possible after the occurrence of the event creating the right to a distribution.

            (3) Payment Upon Other Termination of Employment - Subject to the
provisions set forth in subparagraph (1) and in the Distribution Requirements of
Section 5.3, if the Participant terminates employment other than by retirement,
disability or death, his account shall be paid within a reasonable period after
the end of the plan year in which severance occurs. However, the distribution
shall not include any company stock acquired with the proceeds of an exempt loan
until the close of the plan year in which such loan is repaid in full.

      (b) Distribution of Benefits

            (1) Subject to Section 4.3(b)(3), the administrator, pursuant to the
written election of the Participant (or if no election has been made prior to
the Participant's death, by his beneficiary), shall direct the trustee to
distribute to a Participant or his beneficiary any amount to which he is
entitled under the plan in one of the following methods:

                  (A) One lump-sum payment.

                  (B) Payments over a period certain in monthly, quarterly,
semiannual, or annual installments. The period over which such payment is to be
made shall not extend beyond the earlier of the Participant's life expectancy
(or the life expectancy of the Participant and his designated beneficiary) or
the limited distribution period provided for in (3) below. Such life expectancy
to be determined by Internal Revenue Service Life Expectancy Tables (currently
in IRS Publication 590).

            (2) Any payment meeting the requirements of an eligible rollover
distribution may be paid directly in a direct rollover at the election of the
distributee, at the time and in the manner provided by the plan administrator,
to an eligible retirement plan specified by the distributee.

                  (A) Eligible Rollover Distribution - An eligible rollover
distribution is 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

                                      A-18
<PAGE>

substantially equal periodic payments (not less frequently than annually) made
for the life expectancy of the distributee or the 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 Code Section 401(a)(9); the portion of any distribution that is
not includible in gross income (determined without regard to the exclusion for
net unrealized appreciation with respect to Employer securities) and dividends
paid on Employer securities as described in Code Section 404(k).

                  (B) Eligible Retirement Plan - An eligible retirement plan is
an individual retirement account described in Code Section 408(a), an individual
retirement annuity described in Code Section 408(b), an annuity plan described
in Code Section 403(a), or a qualified trust described in Code Section 401(a),
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.

                  (C) Distributee - A distributee includes an employee or former
employee. In addition, the employee's or former employee's surviving spouse and
the employee's or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Code Section
4l4(p), are distributees with regard to the interest of the spouse or former
spouse.

                  (D) Direct Rollover - A direct rollover is a payment by the
plan to the eligible retirement plan specified by the distributee.

            (3) Unless the Participant elects in writing a longer distribution
period, distributions to a Participant or his beneficiary attributable to
company stock shall be in substantially equal monthly, quarterly, semiannual, or
annual installments over a period not longer than five years. In the case of a
Participant with an account balance attributable to company stock in excess of
$500,000, the five year period shall be extended one additional year (but not
more than five additional years) for each $100,000 or fraction thereof by which
such balance exceeds $500,000. The dollar limits shall be adjusted at the same
time and in the same manner as provided in Code Section 4.15(d).

            (4) If installment payments are to be made from the fund in cash,
the plan administrator may direct the trustee to segregate all or any part of
the Participant's accrued benefit in a separate account. A segregated account
remains a part of the trust, but it alone shares in any income it earns, and it
alone bears any expense or loss it incurs.

            (5) Each optional form of benefit provided under the plan shall be
made available to all Participants on a nondiscriminatory basis. The plan may
not retroactively reduce or eliminate optional forms of benefits and any other
Code Section 411(d)(6) protected benefits, except as provided in Regulation
section 1.411(d)-4, Q&A-2(d) and in other relief granted statutorily or by the
Commissioner of Internal Revenue. Any reduction or elimination of optional forms
of benefits shall apply only to benefits accrued after the effective date of
such change.

            (6) Notwithstanding the above, if the sum of the vested Employer
contribution accounts under this plan and under the Wilson Greatbatch Ltd.
Equity Plus Plan - Stock Bonus Plan are no more than $5,000, the benefit shall
automatically be paid in a lump sum. If the total of such vested Employer
contribution accounts exceeds $5,000, the benefit

                                      A-19
<PAGE>

shall automatically be paid in installments, except to the extent that the
benefit is held under the directed investment account.

      (c) General Payment Provisions

            (1) Any part of a Participant's benefit which is retained in the
plan after the allocation date on which his participation ends will continue to
be treated as a company stock account, other investment account, or directed
investment account subject to Section 4.2(a)(6)(A). However, no further Employer
contributions will be credited.

            (2) All distributions due to be made under this plan shall be made
on the basis of the amount to the credit of the Participant as of the accounting
date coincident with or preceding the occurrence of the event calling for a
distribution.

      If a distributable event occurs after an allocation date and before
allocations have been made to the account of the Participant, the distribution
shall also include the amounts allocable to the account as of such allocation
date.

            (3) If any person entitled to receive benefits hereunder is
physically or mentally incapable of receiving or acknowledging receipt thereof,
and if a legal representative has been appointed for him, the plan administrator
may direct the benefit payment to be made to such legal representative.

            (4) In the event a distribution is to be made to a minor, then the
administrator may direct that such distribution be paid to the legal guardian,
or if none, to a parent of such beneficiary or a responsible adult with whom the
beneficiary maintains his residence, or to the custodian for such beneficiary
under the Uniform Gift to Minors Act or the Gift to Minors Act, if such is
permitted by the laws of the state in which said beneficiary resides. Such a
payment to the legal guardian, custodian or parent of a minor beneficiary shall
fully discharge the trustee, Employer, and plan from further liability on
account thereof.

            (5) Notwithstanding anything herein to the contrary if the Board of
Directors of Wilson Greatbatch Ltd. acting in a nondiscriminatory manner shall
so direct, cash dividends on shares of company stock shall be paid directly in
cash to the Participants in the plan or such dividends shall be paid to the plan
and distributed in cash to Participants within 90 days after the close of the
plan year in which the dividend is paid. In the absence of any direction from
the Board of Directors of Wilson Greatbatch Ltd., cash dividends in company
stock shall be paid to the plan and allocated to Participants' accounts.

      (d) Payment Election Procedures

      As described in Section 5.2(b), an account balance in excess of $5,000
shall not be immediately distributed without the consent of the Participant. The
Participant shall receive the notice required under Regulation Section
1.411(a)-11(c) no less than 30 days and no more than 90 days before the annuity
starting date with respect to the distribution. For any distribution in excess
of $200, the plan administrator shall give the Participant notice of his
eligible rollover distribution rights. The Participant shall receive such notice
in the same time period as the 411 notice is required to be provided. If a
distribution is one to which Code Sections 401(a)(11) and 417 do not apply, such
distribution may commence less than 30 days after the 411 notice is given,
provided that:

                                      A-20
<PAGE>

            (1) The plan administrator 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

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

Section 4.4 Form of Distribution

      (a) Distribution of a Participant's benefit shall be made in cash, as
provided under ERISA Regulation Section 54.4975-11(f)(1).

      (b) The trustee shall make distribution from the trust only on
instructions from the administrator.

      (c) Put Option - Distributions in the form of company stock are not
currently permitted under this plan.

      (d) Right of First Refusal - Distributions in the form of company stock
are not currently permitted under this plan.

Section 4.5 In-Service Payments

      (a) Withdrawals - A Participant may withdraw amounts from his account(s)
before his separation from service only under the circumstances and only to the
extent provided below.

      No payments other than cash dividends on shares of company stock paid
pursuant to Section 3.4(a) shall be made before separation from service.

      (b) Participant Loans - No Participant loans shall be permitted under the
plan.

Section 4.6 Distributions under Domestic Relations Orders

      Nothing contained in this plan prevents the trustee, in accordance with
the direction of the plan administrator, from complying with the provisions of a
qualified domestic relations order (as defined in Code Section 414(p)).

      A distribution will not be made to an alternate payee until the
Participant attains (or would have attained) his earliest retirement age. For
this purpose, earliest retirement age means the earlier of: (1) the date on
which the Participant is entitled to a distribution under this plan; or (2) the
later of the date the Participant attains age 50 or the earliest date on which
the Participant could begin receiving benefits under this plan if the
Participant separated from service.

      Nothing in this Section gives a Participant a right to receive
distribution at a time otherwise not permitted under the plan nor does it permit
the alternate payee to receive a form of payment not otherwise permitted under
the plan.

                                      A-21
<PAGE>

      The plan administrator shall establish reasonable procedures to determine
the qualified status of a domestic relations order. Upon receiving a domestic
relations order, the plan administrator promptly will notify the Participant and
any alternate payee named in the order, in writing, of the receipt of the order
and the plan's procedures for determining the qualified status of the order.
Within a reasonable period of time after receiving the domestic relations order,
the plan administrator shall determine the qualified status of the order and
shall notify the Participant and each alternate payee, in writing, of its
determination. The plan administrator shall provide notice under this paragraph
by mailing to the individual's address specified in the domestic relations
order, or in a manner consistent with Department of Labor regulations.

      If any portion of the Participant's nonforfeitable accrued benefit is
payable during the period the plan administrator is making its determination of
the qualified status of the domestic relations order, the plan administrator
shall make a separate accounting of the amounts payable. If the plan
administrator determines the order is a qualified domestic relations order
within 18 months of the date amounts first are payable following receipt of the
order, it shall direct the trustee to distribute the payable amounts in
accordance with the order. If the plan administrator does not make its
determination of the qualified status of the order within the 18-month
determination period, it shall direct the trustee to distribute the payable
amounts in the manner the plan would distribute if the order did not exist and
will apply the order prospectively if it later determines the order is a
qualified domestic relations order.

      The trustee will make any payments or distributions under this section by
separate benefit checks or other separate distribution to the alternate
payee(s).

                                      A-22
<PAGE>

                    ARTICLE V ADDITIONAL QUALIFICATION RULES

Section 5.1 Limitations on Allocations under Code Section 415

      (a) Single Plan Limitations

            (1) If the Participant does not participate in, and has never
participated in another qualified plan maintained by the Employer or a welfare
benefit fund, as defined in Code Section 419(e) maintained by the Employer, or
an individual medical account, as defined in Code Section 415(l)(2), maintained
by the Employer, which provides an annual addition as defined in Section
5.1(d)(1), the amount of annual additions which may be credited to the
Participant's account for any limitation year will not exceed the lesser of the
maximum permissible amount or any other limitation contained in this plan. If
the Employer contribution that would otherwise be contributed or allocated to
the Participant's account would cause the annual additions for the limitation
year to exceed the maximum permissible amount, the amount contributed or
allocated will be reduced so that the annual additions for the limitation year
will equal the maximum permissible amount.

            (2) Prior to determining the Participant's actual compensation for
the limitation year, the Employer may determine the maximum permissible amount
for a Participant on the basis of a reasonable estimation of the Participant's
compensation for the limitation year, uniformly determined for all Participants
similarly situated.

            (3) As soon as is administratively feasible after the end of the
limitation year, the maximum permissible amount for the limitation year will be
determined on the basis of the Participant's actual compensation for the
limitation year.

            (4) If pursuant to Section 5.1(a)(3) or as a result of the
allocation of forfeitures, there is an excess amount the excess will be disposed
of as follows:

                  (A) Any nondeductible voluntary employee contributions (and
any gain attributable thereto), to the extent they would reduce the excess
amount, will be returned to the Participant.

                  (B) If after the application of paragraph (A) an excess amount
still exists, the excess amount in the Participant's account shall be
reallocated to the remaining Participants who are eligible for an allocation of
Employer contribution for the plan year in which the limitation year ends, but
only to the extent that such reallocation will not exceed the maximum
permissible amount of each such remaining Participant.

                  (C) If after the application of paragraph (B) an excess amount
still exists, the excess amount will be held unallocated in a suspense account.
The suspense account will be applied to reduce future Employer contributions for
all Participants in the next limitation year, and each succeeding limitation
year if necessary.

                  (D) If a suspense account is in existence at any time during a
limitation year pursuant to this Section 5.1(a)(4), it will not participate in
the allocation of the trust's investment gains and losses. If a suspense account
is in existence at any time during a particular limitation year, all amounts in
the suspense account must be allocated and reallocated to Participants' accounts
before any Employer or any employee contributions

                                      B-1
<PAGE>

may be made to the plan for that limitation year. Excess amounts may not be
distributed to Participants or former Participants.

      (b) Combined Limitations -- Other Defined Contribution Plan

            (1) This Subsection applies if, in addition to this plan, the
Participant is covered under another qualified defined contribution plan (e.g.
Stock Bonus and 401(k)) maintained by the Employer, a welfare benefit fund, as
defined in Code Section 419(e) maintained by the Employer, or an individual
medical account, as defined in Code Section 415(l)(2), maintained by the
Employer, which provides an annual addition as defined in Section 5.1(d)(1),
during any limitation year. The annual additions which may be credited to a
Participant's account under this plan for any such limitation year will not
exceed the maximum permissible amount reduced by the annual additions credited
to a Participant's account under the other plans and welfare benefit funds for
the same limitation year. If the annual additions with respect to the
Participant under other defined contribution plans and welfare benefit funds
maintained by the Employer are less than the maximum permissible amount and the
Employer contribution that would otherwise be contributed or allocated to the
Participant's account under this plan would cause the annual additions for the
limitation year to exceed this limitation, the amount contributed or allocated
will be reduced so that the annual additions under all such plans and funds for
the limitation year will equal the maximum permissible amount. If the annual
additions with respect to the Participant under such other defined contribution
plans and welfare benefit funds in the aggregate are equal to or greater than
the maximum permissible amount, no amount will be contributed or allocated to
the Participant's account under this plan for the limitation year.

            (2) Prior to determining the Participant's actual compensation for
the limitation year, the Employer may determine the maximum permissible amount
for a Participant in the manner described in Section 5.1(a)(2).

            (3) As soon as is administratively feasible after the end of the
limitation year, the maximum permissible amount for the limitation year will be
determined on the basis of the Participant's actual compensation for the
limitation year.

            (4) If, pursuant to Section 5.1(b)(3) or as a result of the
allocation of forfeitures, a Participant's annual additions under this plan and
such other plans would result in an excess amount for a limitation year, the
excess amount will be deemed to consist of the annual additions last allocated,
except that annual additions attributable to a welfare benefit fund or
individual medical account will be deemed to have been allocated first
regardless of the actual allocation date.

            (5) If an excess amount was allocated to a Participant on an
allocation date of this plan which coincides with an allocation date of another
plan, the excess amount will be disposed of in the manner provided in Section
3.1(c).

            (6) Any excess amount attributed to this plan will be disposed of in
the manner described in Section 5.1(a)(4).

      (c) Combined Limitations -- Other Defined Benefit Plan

      If the Employer maintains, or at any time maintained, a qualified defined
benefit plan covering any Participant in this plan, the sum of the Participant's
defined benefit plan

                                      B-2
<PAGE>

fraction and defined contribution plan fraction will not exceed 1.0 in any
limitation year. Any excess amounts shall be disposed of in the manner provided
in Section 3.1(c). Any excess amount attributed to this plan will be disposed of
in the manner described in Section 5.1(a)(4).

      (d) Definitions (Code Section 415 Limitations)

            (1) Annual Additions - The sum of the following amounts credited to
a Participant's account for the limitation year:

                  (A) Employer contributions,

                  (B) employee contributions,

                  (C) forfeitures, and

                  (D) amounts allocated, after March 31, 1984, to an individual
medical account, as defined in Code Section 415(l)(2), which is part of a
pension or annuity plan maintained by the Employer are treated as annual
additions to a defined contribution plan. Also amounts derived from
contributions paid or accrued after December 31, 1985, in taxable years ending
after such date, which are attributable to post-retirement medical benefits,
allocated to the separate account of a key employee, as defined in Code Section
419A(d)(3), under a welfare benefit fund, as defined in Code Section 419(e),
maintained by the Employer are treated as annual additions to a defined
contribution plan.

      For this purpose, any excess amount applied under Section 5.1(a)(4) or
(b)(6) in the limitation year to increase the accounts of Participants who did
not have an excess amount or to reduce Employer contributions will be considered
annual additions for such limitation year.

      Annual additions shall not include forfeitures of company stock purchased
with the proceeds of an exempt loan and Employer contributions applied to the
payment of interest on an exempt loan if no more than one-third of the Employer
contribution for the year is allocated to the account of highly compensated
employees.

      Further, annual additions shall not include proceeds from the sale of
company stock as such proceeds constitute earnings on a plan asset allocable as
such.

            (2) Compensation - A Participant's earned income and any earnings
reportable as W-2 wages for Federal income tax withholding purposes.. W-2 wages
means wages as defined in Code Section 3401(a) 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 (such as the exception for
agricultural labor in Section 3401(a)(2)).

      Compensation shall include elective contributions as defined in Section
1.2(a). For or purposes of applying the limitations of this Section 5.1,
compensation for a limitation year is the compensation actually paid or
includible in gross income during such limitation year.

      Notwithstanding the preceding sentence, compensation for a Participant in
a defined contribution plan who is permanently and totally disabled (as defined
in Code Section 22(e)(3)) is the compensation such Participant would have
received for the limitation year if the Participant had been paid at the rate of
compensation paid immediately before

                                      B-3
<PAGE>

becoming permanently and totally disabled; such imputed compensation for the
disabled Participant may be taken into account only if the contributions made on
behalf of such Participant are nonforfeitable when made.

          (3) Defined Benefit Fraction - A fraction, the numerator of which is
the sum of the Participant's projected annual benefits under all the defined
benefit plans (whether or not terminated) maintained by the Employer, and the
denominator of which is the lesser of 125 percent of the dollar limitation
determined for the limitation year under Code Sections 415(b) and (d) or 140
percent of the highest average compensation, including any adjustments under
Code Section 415(b).

     Notwithstanding the above, if the Participant was a Participant as of the
first day of the first limitation year beginning after December 31, 1986, in one
or more defined benefit plans maintained by the Employer which were in existence
on May 6, 1986, the denominator of this fraction will not be less than 125
percent of the sum of the annual benefits under such plans which the Participant
had accrued as of the close of the last limitation year beginning before January
1, 1987, disregarding any changes in the terms and conditions of the plan after
May 5, 1986. The preceding sentence applies only if the defined benefit plans
individually and in the aggregate satisfied the requirements of Code Section 415
for all limitation years beginning before January 1, 1987.

          (4) Defined Contribution Dollar Limitation - $30,000, as adjusted
under Code Section 415(d).

          (5) Defined Contribution Fraction - A fraction, the numerator of which
is the sum of the annual additions to the Participant's account under all the
defined contribution plans (whether or not terminated) maintained by the
Employer for the current and all prior limitation years (including the annual
additions attributable to the Participant's nondeductible employee contributions
to all defined benefit plans, whether or not terminated, maintained by the
Employer, and the annual additions attributable to all welfare benefit funds, as
defined in Code Section 419(e), and individual medical accounts, as defined in
Code Section 415(l)(2), maintained by the Employer), and the denominator of
which is the sum of the maximum aggregate amounts for the current and all prior
limitation years of service with the Employer (regardless of whether a defined
contribution plan was maintained by the Employer). The maximum aggregate amount
in any limitation year is the lesser of 125 percent of the dollar limitation
determined under Code Sections 415(b) and (d) in effect under Code Section
415(c)(1)(A) or 35 percent of the Participant's compensation for such year.

     If the employee was a Participant as of the end of the first day of the
first limitation year beginning after December 31, 1986, in one or more defined
contribution plans maintained by the Employer which were in existence on May 6,
1986, the numerator of this fraction will be adjusted if the sum of this
fraction and the defined benefit fraction would otherwise exceed 1.0 under the
terms of this plan. Under the adjustment, an amount equal to the product of(1)
the excess of the sum of the fractions over 1.0 times (2) the denominator of
this fraction, will be permanently subtracted from the numerator of this
fraction. The adjustment is calculated using the fractions as they would be
computed as of the end of the last limitation year beginning before January 1,
1987, and disregarding any changes in the terms and conditions of the plan made
after May 5, 1986, but using the Code Section 415 limitation applicable to the
first limitation year beginning on or after January 1, 1987.

                                      B-4
<PAGE>

      The annual addition for any limitation year beginning before January 1,
1987, shall not be recomputed to treat all employee contributions as annual
additions.

            (6) Employer - For purposes of this Section 5.1, Employer shall mean
the Employer that adopts this plan, and all members of a controlled group of
corporations (as defined in Code Section 414(b) as modified by Section 415(h)),
all commonly controlled trades or businesses (as defined in Code Section 414(c)
as modified by Section 415(h)) or affiliated service groups (as defined in Code
Section 414(m)) of which the adopting Employer is a part, and any other entity
required to be aggregated with the Employer pursuant to regulations under Code
Section 414(o).

            (7) Excess Amount - The excess of the Participant's annual additions
for the limitation year over the maximum permissible amount.

            (8) Highest Average Compensation - The average compensation for the
three consecutive years of service with the Employer that produces the highest
average. A year of service with the Employer is the 12-consecutive month period
coinciding with the plan year.

            (9) Limitation Year - A calendar year, or the 12-consecutive month
period coinciding with the plan year, unless the Employer adopts another
12-consecutive month period by means of a written resolution. All qualified
plans maintained by the Employer must use the same limitation year. If the
limitation year is amended to a different 12-consecutive month period, the new
limitation year must begin on a date within the limitation year in which the
amendment is made.

            (10) Maximum Permissible Amount - The maximum annual addition that
may be contributed or allocated to a Participant's account under the plan for
any limitation year shall not exceed the lesser of:

                  (A) the defined contribution dollar limitation as defined in
Section 5.1(d)(4), or

                  (B) 25 percent of the Participant's compensation for the
limitation year.

      The compensation limitation referred to in (B) shall not apply to any
contribution for medical benefits (within the meaning of Code Section 401(h) or
Code Section 419A(f)(2)) which is otherwise treated as an annual addition under
Code Section 415(l)(1) or 419A(d)(2).

      If a short limitation year is created because of an amendment changing the
limitation year to a different 12-consecutive month period, the maximum
permissible amount will not exceed the defined contribution dollar limitation
multiplied by the following fraction:

                  Number of months in the short limitation year
                  ---------------------------------------------
                                       12

            (11) Projected Annual Benefit - The annual retirement benefit
(adjusted to an actuarially equivalent straight life annuity if such benefit is
expressed in a form other than a straight life annuity or qualified joint and
survivor annuity) to which the Participant would be entitled under the terms of
the plan assuming:

                                      B-5
<PAGE>

                  (A) the Participant will continue employment until normal
retirement age under the plan (or current age, if later), and

                  (B) the Participant's compensation for the current limitation
year and all other relevant factors used to determine benefits under the plan
will remain constant for all future limitation years.

Section 5.2 Joint and Survivor Annuity Requirements

      (a) Non-application to This Plan - No annuity form of payment is provided
under Section 4.3(b), all funds that are subject to a qualified Participant's
investment direction are transferred to the Wilson Greatbatch Ltd. Equity Plus
Plan - 401(k) Retirement Plan, and no direct or indirect transfer is accepted
under Section 3.7 from a defined benefit plan, money purchase pension plan
(including a target benefit plan), stock bonus or profit sharing plan which
would otherwise have provided for a life annuity form of payment to any
participant; therefore, the requirements of Code Sections 401(a)(11) and 417 do
not apply to this employee stock ownership plan, except for the provisions of
Section 5.2(b) and (c).

      (b) Restrictions on Immediate Distributions - If the value of a
Participant's vested account balance derived from Employer and employee
contributions exceeds (or at the time of any prior distribution exceeded)
$5,000, and the account balance is immediately distributable, the Participant
must consent to any distribution of such account balance. The consent of the
Participant shall be obtained in writing within the 90-day period ending on the
annuity starting date. The annuity starting date is the first day of the first
period for which an amount is paid as an annuity or any other form. The plan
administrator shall notify the Participant of the right to defer any
distribution until the Participant's account balance is no longer immediately
distributable. Such notification shall include a general description of the
material features, and an explanation of the relative values of, the optional
forms of benefit available under the plan in a manner that would satisfy the
notice requirements of Code Section 417(a)(3), and shall be provided no less
than 30 days and no more than 90 days prior to the annuity starting date.

      The consent of the Participant shall not be required to the extent that a
distribution is required to satisfy Code Section 401(a)(9) or Section 415. In
addition, upon termination of this plan if the plan does not offer an annuity
option (purchased from a commercial provider) and if the Employer or any entity
within the same controlled group as the Employer does not maintain another
defined contribution plan (other than an employee stock ownership plan as
defined in Code Section 4975(e)(7)), the Participant's account balance may,
without the Participant's consent, be distributed to the Participant. However,
if any entity within the same controlled group as the Employer maintains another
defined contribution plan (other than an employee stock ownership plan as
defined in Code Section 4975(e)(7)), the Participant's account balance will be
transferred, without the Participant's consent, to the other plan if the
Participant does not consent to an immediate distribution.

      An account balance is immediately distributable if any part of the account
balance could be distributed to the Participant before the Participant attains
(or would have attained if not deceased) the later of normal retirement age or
age 62.

                                      B-6
<PAGE>

      (c) Safe Harbor Rules

      This Paragraph (c) shall apply to a Participant in this stock bonus plan
if the following conditions are satisfied: (1) the Participant does not or
cannot elect payments in the form of a life annuity; and (2) on the death of a
Participant, the Participant's vested account balance will be paid to the
Participant's surviving spouse, but if there is no surviving spouse, or if the
surviving spouse has consented in a manner conforming to a qualified election,
then to the Participant's designated beneficiary. The surviving spouse may elect
to have distribution of the vested account balance commence within the 90-day
period following the date of the Participant's death. The account balance shall
be adjusted for gains or losses occurring after the Participant's death in
accordance with the provisions of the plan governing the adjustment of account
balances for other types of distributions. This Paragraph (c) shall not be
operative with respect to a Participant if the plan is a direct or indirect
transferee of a defined benefit plan, money purchase plan, target benefit plan,
stock bonus plan, or profit-sharing plan which is subject to the survivor
annuity requirements of Code Section 401(a)(11) and Section 417.

            (1) The Participant may waive the spousal death benefit described in
this Paragraph (c) at any time provided that no such waiver shall be effective
unless it satisfies the conditions of Paragraph (c)(3) that would apply to the
Participant's waiver of the qualified preretirement survivor annuity.

            (2) For purposes of this Paragraph (c), vested account balance shall
mean the aggregate value of the Participant's vested account balances derived
from Employer and employee contributions (including rollovers), whether vested
before or upon death, including the proceeds of insurance contracts, if any, on
the Participant's life. The provisions of this Subsection 5.2 shall apply to a
Participant who is vested in amounts attributable to Employer contributions,
employee contributions (or both) at the time of death or distribution.

            (3) Any waiver of a qualified preretirement survivor annuity shall
not be effective unless: (a) the Participant's spouse consents in writing to the
election; (b) the election designates a specific beneficiary, including any
class of beneficiaries or any contingent beneficiaries, which may not be changed
without spousal consent (or the spouse expressly permits designations by the
Participant without any further spousal consent); (c) the spouse's consent
acknowledges the effect of the election; and (d) the spouse's consent is
witnessed by a plan representative or notary public. Additionally, a
Participant's waiver shall not be effective unless the election designates a
form of benefit payment which may not be changed without spousal consent (or the
spouse expressly permits designations by the Participant without any further
spousal consent). If it is established to the satisfaction of a plan
representative that there is no spouse or that the spouse cannot be located, a
waiver will be deemed a qualified election.

      Any consent by a spouse obtained under this provision (or establishment
that the consent of a spouse may not be obtained) shall be effective only with
respect to such spouse. A consent that permits designations by the Participant
without any requirement of further consent by such spouse must acknowledge that
the spouse has the right to limit consent to a specific beneficiary, and a
specific form of benefit where applicable, and that the spouse voluntarily
elects to relinquish either or both of such rights. A revocation of a prior
waiver may be made by a Participant without the consent of the spouse at any
time before the commencement of benefits. The number of revocations shall not be
limited.

                                      B-7
<PAGE>

Section 5.3 Distribution Requirements

      Subject to Subsection 5.2 Joint and Survivor Annuity Requirements, the
requirements of this Subsection 5.3 shall apply to any distribution of a
Participant's interest and will take precedence over any inconsistent provisions
of this plan. Unless otherwise specified, the provisions of this Subsection
apply to calendar years beginning after December 31, 1984.

      All distributions required under this Subsection shall be determined and
made in accordance with the proposed regulations under Code Section 401(a)(9),
including the minimum distribution incidental benefit requirement of Section
1.401(a)(9)-2 of the Proposed Regulations.

      (a) Required Beginning Date - The entire interest of a Participant must be
distributed or begin to be distributed no later than the Participant's required
beginning date.

      (b) Limits on Distribution Periods - As of the first distribution calendar
year, distributions, if not made in a single sum, may only be made over one of
the following periods (or a combination thereof):

            (1) the life of the Participant,

            (2) the life of the Participant and a designated beneficiary,

            (3) a period certain not extending beyond the life expectancy of the
Participant, or

            (4) a period certain not extending beyond the joint and last
survivor expectancy of the Participant and a designated beneficiary.

      (c) Determination of Amount to Be Distributed Each Year - If the
Participant's interest is to be distributed in other than a single sum, the
following minimum distribution rules shall apply on or after the required
beginning date.

            (1) Individual Account

                  (A) If a Participant's benefit is to be distributed over (1) a
period not extending beyond the life expectancy (tables in IRS Publication 590)
of the Participant or the joint life and last survivor expectancy of the
Participant and the Participant's designated beneficiary or (2) a period not
extending beyond the life expectancy of the designated beneficiary, the amount
required to be distributed for each calendar year, beginning with distributions
for the first distribution calendar year, must at least equal the quotient
obtained by dividing the Participant's benefit by the applicable life
expectancy.

                  (B) The amount to be distributed each year, beginning with
distributions for the first distribution calendar year shall not be less than
the quotient obtained by dividing the Participant's benefit by the lesser of(1)
the applicable life expectancy or (2) if the Participant's spouse is not the
designated beneficiary, the applicable divisor determined from the table set
forth in Q&A-4 of Section 1.401(a)(9)-2 of the Proposed Regulations.
Distributions after the death of the Participant shall be distributed using the

                                      B-8
<PAGE>

applicable life expectancy in Paragraph (c)(1)(A) above as the relevant divisor
without regard to Proposed Regulation Section 1.401(a)(9)-2.

                  (C) The minimum distribution required for the Participant's
first distribution calendar year must be made on or before the Participant's
required beginning date. The minimum distribution for other calendar years,
including the minimum distribution for the distribution calendar year in which
the employee's required beginning date occurs, must be made on or before
December 31 of that distribution calendar year.

            (2) Other Forms - If the Participant's benefit is distributed in the
form of an annuity purchased from an insurance company, distributions thereunder
shall be made in accordance with the requirements of Code Section 401(a)(9) and
the proposed regulations thereunder.

      (d) Death Distribution Provisions

            (1) Distribution beginning before death - If the Participant dies
after distribution of his or her interest has begun, the remaining portion of
such interest will continue to be distributed at least as rapidly as under the
method of distribution being used prior to the Participant's death.

            (2) Distribution beginning after death - If the Participant dies
before distribution of his or her interest begins, distribution of the
Participant's entire interest shall be completed by December 31 of the calendar
year containing the fifth anniversary of the Participant's death except to the
extent that an election is made to receive distributions in accordance with (A)
or (B) below:

                  (A) If any portion of the Participant's interest is payable to
a designated beneficiary, distributions may be made over the life or over a
period certain not greater than the life expectancy of the designated
beneficiary commencing on or before December 31 of the calendar year immediately
following the calendar year in which the Participant died;

                  (B) If the designated beneficiary is the Participant's
surviving spouse, the date distributions are required to begin in accordance
with (A) above shall not be earlier than the later of (i) December 31 of the
calendar year immediately following the calendar year in which the Participant
died and (ii) December 31 of the calendar year in which the Participant would
have attained age 70 1/2.

      If the Participant has not made an election pursuant to this Paragraph
(d)(2) by the time of his or her death, the Participant's designated beneficiary
must elect the method of distribution no later than the earlier of (1) December
31 of the calendar year in which distributions would be required to begin under
this Paragraph, or (2) December 31 of the calendar year which contains the fifth
anniversary of the date of death of the Participant. If the Participant has no
designated beneficiary, or if the designated beneficiary does not elect a method
of distribution, distribution of the Participant's entire interest must be
completed by December 31 of the calendar year containing the fifth anniversary
of the Participant's death.

            (3) For purposes of Paragraph (d)(2) above, if the surviving spouse
dies after the Participant, but before payments to such spouse begin, the
provisions of Paragraph

                                      B-9
<PAGE>

(d)(2) with the exception of paragraph (B) therein, shall be applied as if the
surviving spouse were the Participant.

            (4) For purposes of this Paragraph (d), any amount paid to a child
of the Participant will be treated as if it had been paid to the surviving
spouse if the amount becomes payable to the surviving spouse when the child
reaches the age of majority.

            (5) For the purposes of this Paragraph (d), distribution of a
Participant's interest is considered to begin on the Participant's required
beginning date (or, if Subparagraph (3) above is applicable, the date
distribution is required to begin to the surviving spouse pursuant to
Subparagraph (2) above). If distribution in the form of an annuity irrevocably
commences to the Participant before the required beginning date, the date
distribution is considered to begin is the date distribution actually commences.

      (e) Definitions (Code Section 401(a)(9) Requirements)

            (1) Applicable Life Expectancy - The life expectancy (or joint and
last survivor expectancy) calculated using the attained age of the Participant
(or designated beneficiary) as of the Participant's (or designated
beneficiary's) birthday in the applicable calendar year reduced by one for each
calendar year which has elapsed since the date life expectancy was first
calculated. If life expectancy is being recalculated, the applicable life
expectancy shall be the life expectancy as so recalculated. The applicable
calendar year shall be the first distribution calendar year, and if life
expectancy is being recalculated such succeeding calendar year.

            (2) Designated Beneficiary - The individual who is designated as the
beneficiary under the plan in accordance with Code Section 401(a)(9) and the
proposed regulations thereunder.

            (3) Distribution Calendar Year - A calendar year for which a minimum
distribution is required. For distributions beginning before the Participant's
death, the first distribution calendar year is the calendar year immediately
preceding the calendar year which contains the Participant's required beginning
date. For distributions beginning after the Participant's death, the first
distribution calendar year is the calendar year in which distributions are
required to begin pursuant to Paragraph (d) above.

            (4) Life Expectancy - Life expectancy and joint and last survivor
expectancy are computed by use of the expected return multiples in Tables V and
VI of Section 1.72-9 of the Income Tax Regulations.

      Unless otherwise elected by the Participant (or spouse, in the case of
distributions described in Paragraph (d)(2)(B) above) by the time distributions
are required to begin, life expectancies shall be recalculated annually. Such
election shall be irrevocable as to the Participant (or spouse) and shall apply
to all subsequent years. The life expectancy of a nonspouse beneficiary may not
be recalculated.

            (5) Participant's Benefit

                  (A) The account balance as of the last valuation date in the
calendar year immediately preceding the distribution calendar year (valuation
calendar year) increased by the amount of any contributions or forfeitures
allocated to the account balance as of

                                      B-10
<PAGE>

dates in the valuation calendar year after the valuation date and decreased by
distributions made in the valuation calendar year after the valuation date.

                  (B) Exception for second distribution calendar year. For
purposes of Subparagraph (5)(A) above, if any portion of the minimum
distribution for the first distribution calendar year is made in the second
distribution calendar year on or before the required beginning date, the amount
of the minimum distribution made in the second distribution calendar year shall
be treated as if it had been made in the immediately preceding distribution
calendar year.

            (6) Required Beginning Date

                  (A) Non-5-percent owner - The required beginning date is April
1 of the calendar year following the later of: (i) the calendar year in which
the Participant attains age 70 1/2, or (ii) the calendar year in which the
Participant retires. If a Participant who is not a 5-percent owner attains age
70 1/2 after December 31, 1995 and before January 1, 1999, the Participant shall
be permitted to elect to commence the distribution of his benefits as if his
required beginning date were April 1 of the calendar year following the calendar
year in which he attains age 70 1/2.

                  (B) 5-percent owner - The required beginning date for a
Participant who is a 5-percent owner is April 1 of the calendar year following
the calendar year in which the Participant attains age 70 1/2. A Participant is
treated as a 5-percent owner for purposes of this Paragraph (e) if such
Participant is a 5-percent owner as defined in Code Section 416(i) (determined
in accordance with Section 416 but without regard to whether the plan is
top-heavy) at any time during the plan year ending with or within the calendar
year in which such owner attains age 66 1/2 or any subsequent plan year.

                  (C) Once distributions have begun to a 5-percent owner under
this Paragraph, they must continue to be distributed, even if the Participant
ceases to be a 5-percent owner in a subsequent year.

Section 5.4 Top-Heavy Provisions

      (a) Application of Provisions - If the plan is or becomes top-heavy in any
plan year beginning after December 31, 1983, the provisions of Subsection 5.4
will supersede any conflicting provisions in the plan.

      (b) Minimum Allocation

            (1) Except as otherwise provided in (3) and (4) below, the Employer
contributions and forfeitures allocated on behalf of any Participant who is not
a key employee shall not be less than the lesser of three percent of such
Participant's compensation (as defined in Section 1.2) or in the case where the
Employer has no defined benefit plan which designates this plan to satisfy Code
Section 401, the largest percentage of Employer contributions and forfeitures,
as a percentage of the key employee's compensation which may be taken into
account under Section 1.2(c), allocated on behalf of any key employee for that
year. The minimum allocation is determined without regard to any Social Security
contribution. This minimum allocation shall be made even though, under other
plan provisions, the Participant would not otherwise be entitled to receive an
allocation, or would have received a lesser allocation for the year because of
(i) the

                                      B-11
<PAGE>

Participant's failure to complete 1,000 hours of service (or any equivalent
provided in the plan), or (ii) the Participant's failure to make mandatory
employee contributions to the plan, or (iii) compensation less than a stated
amount.

            (2) For purposes of computing the minimum allocation, compensation
shall mean compensation as defined in Section 1.2(a) of the plan.

            (3) The provision in (1) above shall not apply to any Participant
who was not employed by the Employer on the last day of the plan year.

            (4) The provision in (1) above shall not apply to any Participant to
the extent the Participant is covered under any other plan or plans of the
Employer and the Employer has provided in Section 3.2 that the minimum
allocation or benefit requirement applicable to top-heavy plans will be met in
the other plan or plans. If this plan is intended to meet the minimum allocation
or benefit requirement applicable to another plan or plans, the Employer shall
so provide in Section 3.2.

            (5) The minimum allocation required (to the extent required to be
nonforfeitable under Code Section 4 16(b)) may not be forfeited under Code
Section 411(a)(3)(B) or 411(a)(3)(D).

      (c) Adjustments in Code Section 415 Limits - If the plan is top-heavy, the
defined benefit fraction and the defined contribution fraction shall be computed
by applying a factor of 1.0 (instead of 1.25) to the applicable dollar limits
under Code Section 415(b)(1)(A) and 415(C)(1)(A) for such year, unless the plan
meets both the following conditions:

            (1) Such plan would not be a top-heavy plan if "90%" were
substituted for "60%" in the top-heavy tests; and

            (2) The minimum Employer contribution percentage under paragraph (b)
is 4 percent instead of 3 percent.

      However, the reduced Code Section 415 factor of 1.0 shall not apply under
a top-heavy plan with respect to any individual so long as there are no Employer
contributions, forfeitures, or voluntary non-deductible contributions allocated
to such individual.

      (d) Minimum Vesting Schedules - For any plan year in which this plan is
top-heavy, the following minimum vesting schedule shall automatically apply to
the plan:

                      Years of Service    Vesting Percentage
                      ----------------    ------------------
                           0 Years                   0%
                             1                      20%
                             2                      40%
                             3                      60%
                             4                      80%
                       5 or More Years             100%

     The minimum vesting schedule shall apply to all benefits within the meaning
of Code Section 411(a)(7) except those attributable to employee contributions,
including benefits accrued before the effective date of Code Section 416 and
benefits accrued before the plan became top-heavy. Further, no decrease in a
Participant's nonforfeitable percentage may occur in the event the plan's status
as top-heavy changes for any plan year, and the

                                      B-12
<PAGE>

provisions of Section 7.2(d) shall apply. However, this Section does not apply
to the account balances of any employee who does not have an hour of service
after the plan has initially become top-heavy and such employee's account
balance attributable to Employer contributions and forfeitures will be
determined without regard to this Section.

      (e) Definitions (Code Section 416 Requirements)

            (1) Key Employee - Any employee or former employee (and the
beneficiaries of such employee) who at any time during the determination period
was an officer of the Employer if such individual's annual compensation exceeds
50 percent of the dollar limitation under Code Section 415(b)(1)(A), an owner
(or considered an owner under Code Section 318) of one of the ten largest
interests in the Employer if such individual's compensation exceeds 100 percent
of the dollar limitation under Code Section 415(c)(1)(A), a 5-percent owner of
the Employer, or a 1-percent owner of the Employer who has an annual
compensation of more than $150,000. Annual compensation means compensation as
defined in Code Section 415(c)(3), but including amounts contributed by the
Employer pursuant to a salary reduction agreement which are excludable from the
employee's gross income under Code Section 125, Section 402(a)(8), Section
402(h) or Section 403(b). The determination period is the plan year containing
the determination date and the four (4) preceding plan years.

      The determination of who is a key employee will be made in accordance with
Code Section 416(i)(1) and the regulations thereunder.

            (2) Top-Heavy Plan - For any plan year beginning after December 31,
1983, this plan is top-heavy if any of the following conditions exists:

                  (A) If the top-heavy ratio for this plan exceeds 60 percent
and this plan is not part of any required aggregation group or permissive
aggregation group of plans.

                  (B) If this plan is a part of a required aggregation group of
plans but not part of a permissive aggregation group and the top-heavy ratio for
the group of plans exceeds 60 percent.

                  (C) If this plan is a part of a required aggregation group and
part of a permissive aggregation group of plans and the top-heavy ratio for the
permissive aggregation group exceeds 60 percent.

            (3) Top-Heavy Ratio

                  (A) If the Employer maintains one or more defined contribution
plans (including any Simplified Employee Pension Plan) and the Employer has not
maintained any defined benefit plan which during the 5-year period ending on the
determination date(s) has or has had accrued benefits, the top-heavy ratio for
this plan alone or for the required or permissive aggregation group as
appropriate is a fraction, the numerator of which is the sum of the account
balances of all key employees as of the determination date(s) (including any
part of any account balance distributed in the 5-year period ending on the
determination date(s)), and the denominator of which is the sum of all account
balances (including any part of any account balance distributed in the 5-year
period ending on the determination date(s)), both computed in accordance with
Code Section 416 and the regulations thereunder. Both the numerator and
denominator of the top-heavy ratio are increased to reflect any contribution not
actually made as of the determination date, but

                                      B-13
<PAGE>

which is required to be taken into account on that date under Code Section 416
and the regulations thereunder.

                  (B) If the Employer maintains one or more defined contribution
plans (including any Simplified Employee Pension Plan) and the Employer
maintains or has maintained one or more defined benefit plans which during the
5-year period ending on the determination date(s) has or has had any accrued
benefits, the top-heavy ratio for any required or permissive aggregation group
as appropriate is a fraction, the numerator of which is the sum of account
balances under the aggregated defined contribution plan or plans for all key
employees, determined in accordance with (A) above, and the present value of
accrued benefits under the aggregated defined benefit plan or plans for all key
employees as of the determination date(s), and the denominator of which is the
sum of the account balances under the aggregated defined contribution plan or
plans for all Participants, determined in accordance with (A) above, and the
present value of accrued benefits under the defined benefit plan or plans for
all Participants as of the determination date(s), all determined in accordance
with Code Section 416 and the regulations thereunder. The accrued benefits under
a defined benefit plan in both the numerator and denominator of the top-heavy
ratio are increased for any distribution of an accrued benefit made in the
five-year period ending on the determination date.

                  (C) For purposes of (A) and (B) above the value of account
balances and the present value of accrued benefits will be determined as of the
most recent valuation date that falls within or ends with the 12-month period
ending on the determination date, except as provided in Code Section 416 and the
regulations thereunder for the first and second plan years of a defined benefit
plan. The account balances and accrued benefits of a Participant (1) who is not
a key employee but who was a key employee in a prior year, or (2) who has not
been credited with at least one hour of service with any Employer maintaining
the plan at any time during the 5-year period ending on the determination date
will be disregarded. The calculation of the top-heavy ratio, and the extent to
which distributions, rollovers, and transfers are taken into account will be
made in accordance with Code Section 416 and the regulations thereunder.
Deductible employee contributions will not be taken into account for purposes of
computing the top-heavy ratio. When aggregating plans the value of account
balances and accrued benefits will be calculated with reference to the
determination dates that fall within the same calendar year.

      The accrued benefit of a Participant other than a key employee shall be
determined under (1) the method, if any, that uniformly applies for accrual
purposes under all defined benefit plans maintained by the Employer, or (2) if
there is no such method, as if such benefit accrued not more rapidly than the
slowest accrual rate permitted under the fractional rule of Code Section
411(b)(1)(C).

            (4) Permissive Aggregation Group - The required aggregation group of
plans plus any other plan or plans of the Employer which, when considered as a
group with the required aggregation group, would continue to satisfy the
requirements of Code Sections 401(a)(4) and 410.

            (5) Required Aggregation Group - (1) Each qualified plan of the
Employer in which at least one key employee participates or participated at any
time during the determination period (regardless of whether the plan has
terminated), and (2) any other qualified plan of the Employer which enables a
plan described in (1) to meet the requirements of Code Sections 401(a)(4) or
410.

                                      B-14
<PAGE>

            (6) Determination Date - For any plan year subsequent to the first
plan year, the last day of the preceding plan year. For the first plan year of
the plan, the last day of that year.

            (7) Valuation Date - The allocation date as defined in Section
1.3(b), which shall be the date as of which account balances or accrued benefits
are valued for purposes of calculating the top-heavy ratio.

            (8) Present Value - Present value shall be based only on the
interest and mortality rates specified in the Employer's defined benefit plan.

            (9) Non-Key Employee - Any employee who is not a key employee.
Non-key employees include employees who are former key employees.

Section 5.6  ESOP Distribution Options

      (a) The Employer retains the sole discretion to implement the provisions
of this Section 5.6. Such discretion may only be exercised through a duly
adopted plan amendment. Except to the extent permitted by ERISA, the Code and
regulations thereunder, any such amendment shall only be effective
prospectively. No such amendment shall violate Code Section 411(d)(6).

      (b) Right to Receive Stock

      The right to receive distributions in the form of shares of company stock
shall be automatically terminated in the event of the sale or other disposition
by the trustee of all shares of company stock held by the trust.

      (c) Restricted Stock

            (1) Notwithstanding anything contained herein to the contrary, if
the Employer's charter or by-laws restrict ownership of substantially all shares
of company stock to employees and the trust fund, as described in Code Section
409(h)(2), the administrator shall distribute a Participant's account entirely
in cash without granting the Participant the right to demand distribution in
shares of company stock.

            (2) Except as otherwise provided herein, company stock distributed
by the trustee may be restricted as to sale or transfer by the by-laws or
articles of incorporation of the Employer, provided restrictions are applicable
to all company stock of the same class. If a Participant is required to offer
the sale of his company stock to the Employer before offering to sell his
company stock to a third party, in no event may the Employer pay a price less
than that offered to the distributee by another potential buyer making a bona
fide offer and in no event shall the trustee pay a price less than the fair
market value of the company stock.

      (d) Right of First Refusal

            (1) If any Participant, his beneficiary or any other person to whom
shares of company stock are distributed from the plan (the selling Participant)
shall, at any time that the stock is not publicly traded, desire to sell some or
all of such shares (the offered shares) to a third party, the selling
Participant shall give written notice of such desire to

                                      B-15
<PAGE>

the Employer and the administrator. The notice shall contain the number of
shares offered for sale, the proposed terms of the sale and the names and
addresses of both the selling Participant and third party. Both the trust fund
and the Employer shall each have the right of first refusal for a period of
fourteen (14) days from the date the selling Participant gives such written
notice to the Employer and the administrator to acquire the offered shares. The
fourteen day period shall run concurrently against the trust fund and the
Employer. As between the trust fund and the Employer, the trust fund shall have
priority to acquire the shares pursuant to the right of first refusal. The
selling price and terms shall not be less than the greater of the value of the
stock determined under Section 6.7(b) or the price and terms offered by the
third party.

            (2) If the trust fund and the Employer do not exercise their right
of first refusal within the required fourteen day period provided above, the
selling Participant shall have the right, at any time following the expiration
of such period, to dispose of the offered shares to the third party; provided,
however, that (i) no disposition shall be made to the third party on terms more
favorable to the third party than those set forth in the written notice
previously given by the selling Participant, and (ii) if such disposition shall
not be made to a third party on the terms offered to the Employer and the trust
fund, the offered shares shall again be subject to the right of first refusal
set forth above.

            (3) The closing pursuant to the exercise of the right of first
refusal shall take place at such place agreed upon between the administrator and
the selling Participant, but not later than ten (10) days after the Employer or
the trust fund shall have notified the selling Participant of the exercise of
the right of first refusal. At such closing, the selling Participant shall
deliver certificates representing the offered shares duly endorsed in blank for
transfer, or with stock powers attached duly executed in blank with all required
transfer tax stamps attached or provided for, and the Employer or the trust fund
shall deliver the purchase price, or an appropriate portion thereof, to the
selling Participant.

      (e) Put Option

            (1) If company stock is distributed to a Participant and such
company stock is not readily tradable on an established securities market, a
Participant has a right to require the Employer to repurchase the company stock
distributed to such Participant under a fair valuation formula. Such stock shall
be subject to the provisions of (c).

            (2) The put option must be exercisable only by a Participant, by the
Participant's donees, or by a person (including an estate or its distributee) to
whom the company stock passes by reason of a Participant's death. The put option
must permit a Participant (or beneficiary) to put the company stock to the
Employer. Under no circumstances may the put option bind the plan. However, it
shall grant the plan an option to assume the rights and obligations of the
Employer at the time that the put option is exercised. If it is known at the
time a loan is made that Federal or State law will be violated by the Employer's
honoring such put option, the put option must permit the company stock to be
put, in a manner consistent with such law, to a third party (e.g., an affiliate
of the Employer or a shareholder other than the plan) that has substantial net
worth at the time the loan is made and whose net worth is reasonably expected to
remain substantial.

      The put option shall commence as of the day following the date the company
stock is distributed to the Participant (or beneficiary) and end 60 days
thereafter and if not exercised within such 60-day period, an additional 60-day
option shall commence on the

                                      B-16
<PAGE>

first day of the fifth month of the plan year next following the date the stock
was distributed to the Participant (or such other 60-day period as provided in
Code regulations). However, in the case of company stock that is publicly traded
without restrictions when distributed but ceases to be so traded within either
of the 60-day periods described herein after distribution, the Employer must
notify each holder of such company stock in writing on or before the tenth day
after the date the company stock ceases to be so traded that for the remainder
of the applicable 60-day period the company stock is subject to the put option.
The number of days between the tenth day and the date on which notice is
actually given, if later than the tenth day, must be added to the duration of
the put option. The notice must inform distributees of the term of the put
options that they are to hold. The terms must satisfy the requirements of this
paragraph.

      The put option is exercised by the holder by notifying the Employer in
writing that the put option is being exercised. The notice shall state the name
and address of the holder and the number of shares to be sold. Upon receipt of a
written notification from the holder, the Employer shall immediately inform the
administrator of such notice. The administrator shall have 10 days to notify the
Employer if it wishes the trust fund to assume the rights and obligations of the
Employer with respect to the required purchase of company stock.

      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.
The price at which a put option must be exercisable is the value of the company
stock determined in accordance with Section 6.7(b) as of the allocation date
coincident with or immediately preceding the Employer's receipt of the written
notification. The total purchase price shall be paid to the holder within 30
days after the notification, provided however, that the Employer may defer such
payments on a reasonable basis, if it gives written notice to the holder within
the 30 day period. Such deferred payments shall be paid in substantially equal
monthly, quarterly, semiannual, or annual installments over a period certain
beginning not later than thirty (30) days after the exercise of the put option
and not extending beyond five (5) years. The deferral of payment is reasonable
if adequate security and a reasonable interest rate on the unpaid amounts are
provided. The amount to be paid under the put option involving installment
distributions must be paid not later than thirty (30) days after the exercise of
the put option. Payment under a put option must not be restricted by the
provisions of a loan or any other arrangement, including the terms of the
Employer's articles of incorporation, unless so required by applicable state
law.

      For purposes of this Section, total distribution means a distribution to a
Participant or his beneficiary within one taxable year of the Participant's
entire vested account.

            (3) An arrangement involving the plan that creates a put option must
not provide for the issuance of put options other than as provided under this
Section. The plan (and the trust fund) must not otherwise obligate itself to
acquire company stock from a particular holder thereof at an indefinite time
determined upon the happening of an event such as the death of the holder.

                                      B-17
<PAGE>

                      ARTICLE VI ADMINISTRATION OF THE PLAN

Section 6.1  Fiduciary Responsibility

      (a) Fiduciary Standards - A fiduciary shall discharge his duties with
respect to a plan solely in the interest of the Participants and beneficiaries
and --

      For the exclusive purpose of providing benefits to Participants and their
beneficiaries and defraying reasonable expenses of administering the plan;

      With the care, skill, prudence, and diligence under the circumstances then
prevailing that a prudent man 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;

      By diversifying the investments of the plan so as to minimize the risk of
large losses, unless under the circumstances it is clearly prudent not to do so;
and

      In accordance with the documents and instruments governing the plan
insofar as such documents and instruments are consistent with the provisions of
ERISA.

      (b) Allocation of Fiduciary Responsibility

            (1) It is intended to allocate to each fiduciary, either named or
otherwise, the individual responsibility for the prudent execution of the
functions assigned to him. None of the allocated responsibilities or any other
responsibilities shall be shared by two or more fiduciaries unless specifically
provided for in the plan.

            (2) When one fiduciary is required to follow the directions of
another fiduciary, the two fiduciaries shall not be deemed to share such
responsibility. Instead, the responsibility of the fiduciary giving the
directions shall be deemed to be his sole responsibility and the responsibility
of the fiduciary receiving directions shall be to follow those directions
insofar as such instructions on their face are proper under applicable law.

            (3) Any person or group of persons may serve in more than one
fiduciary capacity with respect to this plan.

            (4) A fiduciary under this plan may employ one or more persons,
including independent accountants, attorneys and actuaries to render advice with
regard to any responsibility such fiduciary has under the plan.

      (c) Indemnification by Employer - Unless resulting from the gross
negligence, willful misconduct or lack of good faith on the part of a fiduciary
who is an officer or employee of the Employer, the Employer shall indemnify and
save harmless such fiduciary from, against, for and in respect of any and all
damages, losses, obligations, liabilities, liens, deficiencies, costs and
expenses, including without limitation, reasonable attorney's fees and other
costs and expenses incident to any suit, action, investigation, claim or
proceedings suffered in connection with his acting as a fiduciary under the
plan.

      (d) Named Fiduciary - The person or persons named by the Employer as
having fiduciary responsibility for the management and control of plan assets
shall be known as the "named fiduciary" hereunder. Such responsibility shall
include the appointment of the

                                      B-18
<PAGE>

plan administrator (Section 6.2(a)), the trustee (Section 6.4(a)) and the
investment manager (Section 6.4(b)), and the deciding of benefit appeals
(Section 6.3).

      (e) Bonding - Every fiduciary, except a bank or an insurance company,
unless exempted by the ERISA and regulations thereunder, shall be bonded in an
amount not less than 10% of the amount of the funds such fiduciary handles;
provided, however, that the minimum bond shall be $1,000 and the maximum bond,
$500,000. The amount of funds handled shall be determined at the beginning of
each plan year by the amount of funds handled by such person, group, or class to
be covered and their predecessors, if any, during the preceding plan year, or if
there is no preceding plan year, then by the amount of the funds to be handled
during the then current year. The bond shall provide protection to the plan
against any loss by reason of acts of fraud or dishonesty by the fiduciary alone
or in connivance with others. The surety shall be a corporate surety company (as
such term is used in ERISA Section 412(a)(2)), and the bond shall be in a form
approved by the Secretary of Labor. Notwithstanding anything in the plan to the
contrary, the cost of such bonds shall be an expense of and may, at the election
of the administrator, be paid from the trust fund or by the Employer.

Section 6.2  Plan Administrator

      (a) Appointment of Plan Administrator

      The named fiduciary shall appoint a plan administrator who may be a person
or an administrative committee consisting of no more than five members.
Vacancies occurring upon resignation or removal of a plan administrator or a
committee member shall be filled promptly by the named fiduciary. Any
administrator may resign at any time by giving notice of his resignation to the
named fiduciary, and any administrator may be removed at any time by the named
fiduciary. The named fiduciary shall review at regular intervals the performance
of the administrator(s) and shall re-evaluate the appointment of such
administrator(s). After the named fiduciary has appointed the administrator and
has received a written notice of acceptance, the fiduciary responsibility for
administration of the plan shall be the responsibility of the plan administrator
or administrative committee.

      (b) Duties and Powers of Plan Administrator

      The plan administrator shall have the following duties and discretionary
powers and such other duties and discretionary powers as relate to the
administration of the plan:

            (1) To determine in a non-discriminatory manner all questions
relating to the eligibility of employees to become Participants.

            (2) To determine in a non-discriminatory manner eligibility for
benefits and to determine and certify the amount and kind of benefits payable to
Participants.

            (3) To authorize all disbursements from the fund.

            (4) To appoint or employ any independent person to perform necessary
plan functions and to assist in the fulfillment of administrative
responsibilities as he deems advisable, including legal and actuarial counsel.

                                      B-19
<PAGE>

            (5) When appropriate, to select an insurance company and annuity
contracts which, in his opinion, will best carry out the purposes of the plan.

            (6) To construe and interpret any ambiguities in the plan and to
make, publish, interpret, alter, amend or revoke rules for the regulation of the
plan which are consistent with the terms of the plan and with ERISA.

            (7) To prepare and distribute, in such manner as determined to be
appropriate, information explaining the plan.

            (8) To establish and communicate to Participants a procedure and
method to insure that each Participant will vote company stock allocated to such
Participant's company stock account pursuant to Section 6.8.

            (9) To assist any Participant regarding his rights, benefits, or
elections available under the plan.

      (c) Allocation of Fiduciary Responsibility Within Administrative Committee

      If the plan administrator is an administrative committee, the committee
shall choose from its members a chairman and a secretary. The committee may
allocate responsibility for those duties and powers listed in Section 6.2(b)(1)
and (2) (except determination of qualification for disability retirement) and
other purely ministerial duties to one or more members of the committee. The
committee shall review at regular intervals the performance of any committee
member to whom fiduciary responsibility has been allocated and shall re-evaluate
such allocation of responsibility. After the committee has made such allocations
of responsibilities and has received written notice of acceptance, the fiduciary
responsibilities for such administrative duties and powers shall then be
considered as the responsibilities of such committee member(s).

      (d) Miscellaneous Provisions

            (1) Administrative Committee Actions - The actions of such committee
shall be determined by the vote or other affirmative expression of a majority of
its members. Either the chairman or the secretary may execute any certificate or
other written direction on behalf of the committee. A member of the committee
who is a Participant shall not vote on any question relating specifically to
himself. If the remaining members of the committee, by majority vote thereof,
are unable to come to a determination of any such question, the named fiduciary
shall appoint a substitute member who shall act as a member of the committee for
the special vote.

            (2) Expenses - The plan administrator shall serve without
compensation for service as such. All reasonable expenses of the plan
administrator shall be paid by the Employer or from the fund.

            (3) Examination of Records - The plan administrator shall make
available to any Participant for examination during business hours such of the
plan records as pertain only to the Participant involved.

            (4) Information to the Plan Administrator - To enable the plan
administrator to perform the administrative functions, the Employer shall supply
full and timely

                                      B-20
<PAGE>

information to the plan administrator on all Participants as the plan
administrator may require.

Section 6.3  Claims Procedure

      (a) Notification - The plan administrator shall notify each Participant in
writing of his determination of benefits. If the plan administrator denies any
benefit, such written denial shall include:

            - The specific reasons for denial;

            - Reference to provisions on which the denial is based;

            - A description of and reason for any additional information needed
to process the claim; and

            - An explanation of the claims procedure.

      (b) Appeal - The Participant or his duly authorized representative may:

            - Request a review of the Participant's case in writing to the named
fiduciary;

            - Review pertinent documents;

            - Submit issues and comments in writing.

      The written request for review must be submitted no later than 60 days
after receiving written notification of denial of benefits.

      (c) Review - The named fiduciary must render a decision no later than 60
days after receiving the written request for review, unless circumstances make
it impossible to do so; but in no event shall the decision be rendered later
than 120 days after the request for review is received.

Section 6.4  Trust Fund

      (a) Appointment of Trustee

      The named fiduciary shall appoint a trustee for the proper care and
custody of all funds, securities and other properties in the trust, and for
investment of plan assets (or for execution of such orders as it receives from
an investment manager appointed for investment of plan assets). The duties and
powers of the trustee shall be set forth in a trust agreement executed by the
Employer, which is incorporated herein by reference. The named fiduciary shall
review at regular intervals the performance of the trustee and shall re-evaluate
the appointment of such trustee. After the named fiduciary has appointed the
trustee and has received a written notice of acceptance of its responsibility,
the fiduciary responsibility with respect to the proper care and custody of plan
assets shall be considered as the responsibility of the trustee. Unless
otherwise allocated to an investment manager, the fiduciary responsibility with
respect to investment of plan assets shall likewise be considered as the
responsibility of the trustee.

                                      B-21
<PAGE>

      (b) Appointment of Investment Manager

      The named fiduciary may appoint an investment manager who is other than
the trustee, which investment manager may be a bank or an investment advisor
registered with the Securities and Exchange Commission under the Investment
Advisors Act of 1940. Such investment manager, if appointed, shall have sole
discretion in the investment of plan assets, subject to the funding policy. The
named fiduciary shall review at regular intervals no less frequently than
annually, the performance of such investment manager and shall re-evaluate the
appointment of such investment manager. After the named fiduciary has appointed
an investment manager and has received a written notice of acceptance of its
responsibility, the fiduciary responsibility with respect to investment of plan
assets shall be considered as the responsibility of the investment manager.

Section 6.5  Investment Policy

      (a) The plan is designed to invest primarily in company stock. It is
specifically intended that this employee stock ownership plan qualify and
operate as an individual account plan. As such, and without limiting the
generality of the foregoing, the trustee is hereby specifically authorized to:

            (1) acquire, hold, sell, and distribute Company stock.

            (2) invest in Company stock and not limit its holdings of such stock
to ten percent of trust assets but may invest up to 100% of plan assets in
Company stock without regard to any plan or trust agreement requirement to
diversify investments as permitted under ERISA section 404(a)(2).

            (3) acquire or sell Company stock in a transaction with a
disqualified person or a party in interest (as those terms are defined in ERISA
and the Code) provided that no commission is charged and the transaction is for
adequate consideration.

      (b) With due regard to subparagraph (a) above, the administrator may also
direct the trustee to invest funds under the plan in other property described in
the Trust Agreement or in life insurance policies to the extent permitted by
subparagraph (c) below, or the trustee may hold such funds in cash or cash
equivalents.

      (c) The plan may not obligate itself to acquire company stock from a
particular holder thereof at an indefinite time determined upon the happening of
an event such as the death of the holder.

      (d) The plan may not obligate itself to acquire company stock under a put
option binding upon the plan. However, at the time a put option is exercised,
the plan may be given an option to assume the rights and obligations of the
Employer under a put option binding upon the Employer.

      (e) All purchases of company stock shall be made at a price which, in the
judgment of the administrator, does not exceed the fair market value thereof.
All sales of company stock shall be made at a price which, in the judgment of
the administrator, is not less than the fair market value thereof. The valuation
rules set forth in Section 6.7 shall be applicable.

                                      B-22
<PAGE>

Section 6.6  Valuation of the Trust Fund

      (a) The administrator shall direct the trustee, as of each allocation
date, and at such other date or dates deemed necessary by the administrator,
herein called valuation date, to determine the net worth of the assets
comprising the trust fund as it exists on the valuation date prior to taking
into consideration any contribution to be allocated for that plan year. In
determining such net worth, the trustee shall value the assets comprising the
trust fund at their fair market value as of the valuation date and shall deduct
all expenses for which the trustee has not yet obtained reimbursement from the
Employer or the trust fund.

      (b) Valuations must be made in good faith and based on all relevant
factors for determining the fair market value of securities. In the case of a
transaction between a plan and a disqualified person, value must be determined
as of the date of the transaction. For all other plan purposes, value must be
determined as of the most recent valuation date under the plan. An independent
appraisal will not in itself be a good faith determination of value in the case
of a transaction between the plan and a disqualified person. However, in other
cases, a determination of fair market value based on at least an annual
appraisal independently arrived at by a person who customarily makes such
appraisals and who is independent of any party to the transaction will be deemed
to be a good faith determination of value. Company stock not readily tradable on
an established securities market shall be valued by an independent appraiser
meeting requirements similar to the requirements of the Regulations prescribed
under Code Section 170(a)(1).

Section 6.7  Voting Company Stock

      The trustee shall vote all company stock held by it as part of the plan
assets at such time and in such manner as the administrator shall direct,
provided, however, that if any agreement entered into by the trust provides for
voting of any shares of company stock pledged as security for any obligation of
the plan, then such shares of company stock shall be voted in accordance with
such agreement. If the administrator shall fail or refuse to give the trustee
timely instructions as to how to vote any company stock as to which the trustee
otherwise has the right to vote, the trustee shall not exercise its power to
vote such company stock.

      If the by-laws of the Employer require the plan to vote an issue in a
manner that reflects a one-man, one-vote philosophy, each Participant or
beneficiary shall be entitled to cast one vote on an issue and the trustee shall
vote the shares held by the plan in proportion to the results of the votes cast
on the issue by the Participants and beneficiaries.

      In the event a tender offer is made for shares of company stock, each
Participant (or beneficiary) shall be entitled to direct the trustee as to
whether or not the shares of company stock allocated to his company stock
account shall be tendered pursuant to such offer. The trustee shall tender
shares of company stock held in the unallocated company stock suspense account
in the same proportion as Participants actually tender the shares allocated to
their individual accounts, provided, however, that the trustee shall not tender
any shares which are pledged as security for an exempt loan without first
obtaining any required approvals.

                                      B-23
<PAGE>

Section 6.8 Current Obligations

      Employer contributions in cash and other cash received by the trust fund
shall first be applied to pay any current obligations of the trust fund. Current
obligations means trust fund expenses and trust obligations arising from the
extension of credit to the trust and payable in cash within one year from the
date an Employer contribution is due.

                                      B-24
<PAGE>

                  ARTICLE VII AMENDMENT AND TERMINATION OF PLAN

Section 7.1  Right to Discontinue and Amend

      It is the expectation of the Employer that it will continue this plan
indefinitely and make the payments of its contributions hereunder, but the
continuance of the plan is not assumed as a contractual obligation of the
Employer and the right is reserved by the Employer, at any time, to reduce,
suspend or discontinue its contributions hereunder.

Section 7.2  Amendments

      Except as herein limited, the Employer shall have the right to amend this
plan at any time to any extent that it may deem advisable. Such amendment shall
be stated in writing, shall be authorized by action of the board of directors,
and shall be executed by the person designated in conjunction with the
authorization.

      The Employer's right to amend the plan shall be limited as follows:

      (a) No amendment shall increase the duties or liabilities of the plan
administrator, the trustee, or other fiduciary without their respective written
consent.

      (b) No amendments shall have the effect of vesting in the Employer any
interest in or control over any contracts issued pursuant hereto or any other
property in the fund.

      (c) No amendment to the plan shall be effective to the extent that it has
the effect of decreasing a Participant's accrued benefit. Notwithstanding the
preceding sentence, a Participant's account balance may be reduced to the extent
permitted under Code Section 412(c)(8). For purposes of this paragraph, a plan
amendment which has the effect of decreasing a Participant's account balance or
eliminating an optional form of benefit, with respect to benefits attributable
to service before the amendment shall be treated as reducing an accrued benefit.
Furthermore, if the vesting schedule of a plan is amended, in the case of an
employee who is a Participant as of the later of the date such amendment is
adopted or the date it becomes effective, the nonforfeitable percentage
(determined as of such date) of such employee's right to his Employer-derived
accrued benefit will not be less than his percentage computed under the plan
without regard to such amendment.

      (d) No amendment to the vesting schedule adopted by the Employer hereunder
shall deprive a Participant of his vested portion of his Employer contribution
account to the date of such amendment. If the plan's vesting schedule is
amended, or the plan is amended in any way that directly or indirectly affects
the computation of the Participant's nonforfeitable percentage or if the plan is
deemed amended by an automatic change to or from a top-heavy vesting schedule,
each Participant with at least 3 years of service with the Employer may elect,
within a reasonable period after the adoption of the amendment or change, to
have the nonforfeitable percentage computed under the plan without regard to
such amendment or change. For Participants who do not have at least one hour of
service in any plan year beginning after December 31, 1988, "5 years of service"
shall be substituted for "3 years of service" in the preceding sentence. The
period during which the election may be made shall commence with the date the
amendment is adopted or deemed to be made and shall end on the latest of:

                                      B-25
<PAGE>

            (1) 60 days after the amendment is adopted;

            (2) 60 days after the amendment becomes effective; or

            (3) 60 days after the Participant is issued written notice of the
amendment by the Employer or plan administrator.

Section 7.3  Protection of Benefits in Case of Plan Merger

      In the event of a merger or consolidation with, or transfer of assets to
any other plan, each Participant will receive a benefit immediately after such
merger, consolidation or transfer (if the plan then terminated) which is at
least equal to the benefit the Participant was entitled to immediately before
such merger, consolidation or transfer (if the plan had terminated).

Section 7.4  Termination of Plan

      (a) When Plan Terminates - This plan shall terminate upon the happening of
any of the following events: legal adjudication of the Employer as bankrupt; a
general assignment by the Employer to or for the benefit of its creditors; the
legal dissolution of the Employer; or termination of the plan by the Employer.

      (b) Allocation of Assets - Upon termination, partial termination or
complete discontinuance of Employer contributions, the account balance of each
affected Participant who is an active Participant or who is not an active
Participant but has neither received a complete distribution of his vested
accrued benefit nor incurred five one-year breaks in service shall be 100%
vested and nonforfeitable. The amount of the fund assets shall be allocated to
each Participant, subject to provisions for expenses of administration of the
liquidation, in the ratio that such Participant's account bears to all accounts.
If a Participant under this plan has terminated his employment at any time after
the anniversary date of the year in which the Employer made his final
contribution to the plan, and if any portion of the account of such terminated
Participant was forfeited and reallocated to the remaining Participants, such
forfeiture shall be reversed and the forfeited amount shall be credited to the
account of such terminated Participant.

                                      B-26
<PAGE>

                      ARTICLE VIII MISCELLANEOUS PROVISIONS

Section 8.1 Exclusive Benefit -- Non-Reversion

      The plan is created for the exclusive benefit of the employees of the
Employer and shall be interpreted in a manner consistent with its being a
qualified plan as defined in Section 401(a) of the Internal Revenue Code and
with ERISA. The corpus or income of the trust may not be diverted to or used for
other than the exclusive benefit of the Participants or their beneficiaries
(except for defraying reasonable expenses of administering the plan).

      Notwithstanding the above, a contribution paid by the Employer to the
trust may be repaid to the Employer under the following circumstances:

      (a) Any contribution made by the Employer because of a mistake of fact
must be returned to the Employer within one year of the contribution.

      (b) In the event the deduction of a contribution made by the Employer is
disallowed under Code Section 404, such contribution (to the extent disallowed)
must be returned to the Employer within one year of the disallowance of the
deduction.

      (c) If the Commissioner of Internal Revenue determines that the plan is
not initially qualified under the Internal Revenue Code, any contribution made
incident to that initial qualification by the Employer must be returned to the
Employer within one year after the date the initial qualification is denied, but
only if the application for the qualification is made by the time prescribed by
law for filing the Employer's return for the taxable year in which the plan is
adopted, or such later date as the Secretary of the Treasury may prescribe.

Section 8.2 Inalienability of Benefits

      No benefit or interest available hereunder including any annuity contract
distributed herefrom shall be subject to assignment or alienation, either
voluntarily or involuntarily. The preceding sentence shall also apply to the
creation, assignment, or recognition of a right to any benefit payable with
respect to a Participant pursuant to a domestic relations order, unless such
order is determined to be a qualified domestic relations order as defined in
Code Section 414(p), or any domestic relations order entered before January 1,
1985. A loan made to a Participant and secured by his nonforfeitable account
balance under Section 4.5(b) will not be treated as an assignment or alienation
and such securing account balance shall be subject to attachment by the plan in
the event of default.

      Notwithstanding the preceding paragraph, effective with respect to
judgments, orders, and decrees issued, and settlement agreements entered into,
on or after August 5, 1997, a Participant's benefit (and that of his spouse)
shall be reduced to satisfy liabilities of the Participant to the plan due to
(1) the Participant being convicted of committing a crime involving the plan,
(2) a civil judgment (or consent order or decree) entered by a court in an
action brought in connection with a violation of the fiduciary provisions of
Title I of ERISA, or (3) a settlement agreement between the Secretary of Labor
or the Pension Benefit Guaranty Corporation and the Participant in connection
with a violation of the fiduciary

                                      B-27
<PAGE>

provisions of ERISA. Any reduction made pursuant to this paragraph shall be done
in accordance with the requirements of ERISA Section 206(d).

Section 8.3  Employer-Employee Relationship

      This plan is not to be construed as creating or changing any contract of
employment between the Employer and its employees, and the Employer retains the
right to deal with its employees in the same manner as though this plan had not
been created.

Section 8.4  Binding Agreement

      This plan shall be binding on the heirs, executors, administrators,
successors and assigns as such terms may be applicable to any or all parties
hereto, and on any Participants, present or future.

Section 8.5  Separability

      If any provision of this plan shall be held invalid or unenforceable, such
invalidity or unenforceability shall not affect any other provision hereof and
this plan shall be construed and enforced as if such provision had not been
included.

Section 8.6  Construction

      The plan shall be construed in accordance with the laws of the state in
which the Employer was incorporated and with ERISA.

Section 8.7  Copies of Plan

      This plan may be executed in any number of counterparts, each of which
shall be deemed as an original, and said counterparts shall constitute but one
and the same instrument which may be sufficiently evidenced by any one
counterpart.

Section 8.8  Interpretation

      Wherever appropriate, words used in this plan in the singular may include
the plural or the plural may be read as singular, and the masculine may include
the feminine.

Section 8.9  Securities and Exchange Commission Approval

      The Employer may request an interpretative letter from the Securities and
Exchange Commission stating that the transfers of company stock contemplated
hereunder do not involve transactions requiring a registration of such company
stock under the Securities Act of 1933. In the event that a favorable
interpretative letter is not obtained, the Employer reserves the right to amend
the Plan and Trust retroactively to their effective dates in order to obtain a
favorable interpretative letter or to terminate the plan.

                                      B-28
<PAGE>

      IN WITNESS WHEREOF, the Employer has caused this Plan to be executed this
31st day of DECEMBER, 1998.

                                      EMPLOYER:
                                      Wilson Greatbatch Ltd.

                                      By: /s/ Larry T. DeAngelo
                                         -----------------------------------
                                      Title: V.P. Administration & Secretary
                                            --------------------------------

                                      B-29
<PAGE>

                                 FIRST AMENDMENT

                                       to

                    WILSON GREATBATCH LTD. EQUITY PLUS PLAN -
                               MONEY PURCHASE PLAN

            Under Article VII of the Wilson Greatbatch Ltd. Equity Plus Plan -
Money Purchase Plan (the "Plan"), Wilson Greatbatch Ltd. (the "Employer") has
the right to make written amendments to the Plan that are authorized by the
board of directors of the Employer and executed by an authorized officer of the
Employer. Therefore, the Employer hereby amends the Plan in the following
respects:

            1. Effective January 1, 1999, paragraphs (2) and (3) of Plan Section
4.3(a) are hereby deleted in their entirety, and are replaced with the following
provisions:

                        (2) Participant Elections to Commence Distributions - If
            a Participant terminates employment with the Employer, the
            Participant may make a written election directing the plan
            administrator to make a distribution of his or her vested accounts
            under the Plan. The form of distribution will be determined under
            the provisions of Section 4.3(b). The timing of the distribution
            depends on when the Participant elects to receive a distribution and
            the accounting date the Participant elects to use to determine the
            value of his or her account for distribution purposes. A Participant
            may elect an immediate distribution and request that the
            distribution amount be determined using the value of his or her
            vested plan account as of the accounting date that coincides with or
            immediately precedes the date the Participant submits the election,
            in which case the distribution will be processed as soon as
            practicable after the date the plan administrator receives the
            election. Alternatively, a Participant may elect to defer the
            distribution and request that the distribution amount be determined
            using the value of his or her vested plan account as of the next
            annual accounting date for valuing company stock that immediately
            follows the date the Participant submits the election, in which case
            the distribution will be processed as soon as practicable after that
            accounting date.

            2. Effective January 1, 1999, the first sentence of Plan Section
4.3(c)(2) is hereby deleted in its entirety.

            3. Effective January 1, 1999, the second and third paragraphs of
Section 6.7 are hereby deleted in their entirety, and are replaced with the
following provisions:

                  If a tender offer is made for shares of company stock, each
            Participant or beneficiary will be entitled to direct the trustee as
            to whether or not the shares allocated to his or her company stock
            account may be tendered under the offer.

                  All shares of company stock allocated to accounts for which
            the trustee did not receive tender instructions from a Participant
            or beneficiary and all shares held
<PAGE>

            in the unallocated company stock suspense account will be tendered
            or not tendered by the trustee in its discretion and in accordance
            with its fiduciary duties under ERISA. The trustee may not tender
            any shares that are pledged as security for an exempt loan without
            first obtaining any required approvals.

                  On all other corporate matters requiring pass-through voting
            rights under Code Section 409(e)(3), each Participant or beneficiary
            is entitled to direct the trustee on the manner in which to vote the
            shares of company stock allocated to his or her company stock
            account. All shares of company stock allocated to accounts for which
            the trustee did not receive timely voting instructions from
            Participants or beneficiaries and all shares held in the unallocated
            company stock suspense account will be voted by the trustee in its
            discretion and in accordance with its fiduciary duties under ERISA.

            In all other respects, the Plan will remain unchanged.

                                       WILSON GREATBATCH LTD.

      Date: March 27, 1999             By /s/ Larry T. DeAngelo
            ----------------             ---------------------------------
<PAGE>

                                SECOND AMENDMENT

                                       to

                    WILSON GREATBATCH LTD. EQUITY PLUS PLAN -
                               MONEY PURCHASE PLAN

            Under Article VII of the Wilson Greatbatch Ltd. Equity Plus Plan -
Money Purchase Plan (the "Plan"), Wilson Greatbatch Ltd. (the "Employer") has
the right to make written amendments to the Plan that are authorized by the
board of directors of the Employer and executed by an authorized officer of the
Employer. Therefore, the Employer hereby amends the Plan in the following
respects:

            1. Effective January 1, 1999, Plan Section 4.4 is hereby deleted in
its entirety, and is replaced by the following provision:

            Section 4.4 Form of Distribution

                  (a) Unless a Participant or a beneficiary demands that his or
            her benefits attributable to the Company Stock Account be
            distributed in the form of company stock, the plan administrator
            may, but is not obligated to, direct the trustee to distribute
            benefits in cash only. The amount of any cash payment to a
            Participant will be equal to the fair market value of the company
            stock that would otherwise have been distributed to the Participant,
            plus the value of his or her other investment account and directed
            investment account.

                  (b) The trustee may make distributions from the trust only on
            instructions from the plan administrator.

            2. Effective January 1, 1998, the words "stock bonus" are hereby
deleted from the first sentence of Plan Section 5.2(c).

            3. Effective January 1, 1999, Plan Section 5.6 is hereby deleted in
its entirety, and is replaced by the following provision:

            Section 5.5 ESOP Distribution Options

                  (a) Right to Receive Stock

                  The right to receive distributions in the form of shares of
            company stock is automatically terminated in the event of the sale
            or other disposition by the trustee of all shares of company stock
            held by the trust.
<PAGE>
                                        2

                  (b) Restricted Stock

                        (1) Notwithstanding any other provision of the Plan, if
            the Employer's charter or by-laws restrict ownership of
            substantially all shares of company stock to employees and the trust
            fund, as described in Code Section 409(h)(2), the administrator will
            distribute a Participant's account entirely in cash, without
            granting the Participant the right to demand distribution in shares
            of company stock.

                        (2) Except as otherwise provided under the plan, company
            stock distributed by the trustee may be restricted as to sale or
            transfer by the by-laws or articles of incorporation of the
            Employer, if the restrictions are applicable to all company stock of
            the same class. Certificates representing company stock distributed
            by the plan will bear a legend or notation required by applicable
            federal and state securities laws and regulations.

                  (c) Right of First Refusal

                        (1) If any Participant, his or her beneficiary or any
            other person to whom shares of company stock are distributed from
            the plan (the selling Participant) wants, at any time that the stock
            is not publicly traded, to sell some or all of his or her shares
            (the offered shares) to a third party, the selling Participant must
            give prior written notice of his or her plans to sell the stock to
            the Employer and the trustee. The notice must contain the number of
            shares offered for sale, the proposed terms of the sale and the
            names and addresses of both the selling Participant and third party.
            The trustee and the Employer each will have the right of first
            refusal for a period of 14 days from the date the selling
            Participant gives written notice to the Employer and to the trustee
            to acquire the offered shares. The 14-day period runs concurrently
            with respect to the trust fund and the Employer. As between the
            trust fund and the Employer, the trust fund has priority to acquire
            the shares pursuant to the right of first refusal. If the trustee or
            the Employer exercises their right of first refusal, the selling
            price and terms may not be less than the price and terms offered by
            the third party.

                        (2) If the trustee and the Employer do not exercise
            their right of first refusal within the required 14-day period, the
            selling Participant has the right, at any time following the
            expiration of the period, to dispose of the offered shares to the
            third party. Nevertheless, no disposition may be made to the third
            party on terms more favorable to the third party than those set
            forth in the written notice previously given by the selling
            Participant to the Employer and trustee. If the disposition is not
            made to a third party on the terms offered to the Employer and the
            trustee, the offered shares are again subject to the right of first
            refusal described above.

                        (3) The closing following the exercise of a right of
            first refusal
<PAGE>
                                       3

            will take place at such place agreed on between the administrator
            and the selling Participant, but not later than ten (10) days after
            the Employer or the trustee notifies the selling Participant of the
            exercise of the right of first refusal. At the closing, the selling
            Participant must deliver certificates representing the offered
            shares duly endorsed in blank for transfer, or with stock powers
            attached duly executed in blank with all required transfer tax
            stamps attached or provided for, and the Employer or the trustee
            must deliver the purchase price, or an appropriate portion thereof,
            to the selling Participant.

                  (d) Put Option

                        (1) If company stock is distributed to a Participant and
            the company stock is not readily tradeable on an established
            securities market, a Participant has a right to require the Employer
            to repurchase the company stock distributed to such Participant
            under a fair valuation formula. That stock shall be subject to the
            provisions of (c).

                        (2) The put option is exercisable only by a Participant,
            by the Participant's donees, or by a person (including an estate or
            its distributee) to whom the company stock passes by reason of a
            Participant's death. The put option must permit a Participant (or a
            beneficiary) to put the company stock to the Employer. Under no
            circumstance may the put option bind the plan. However, the put
            option grants the plan an option to assume the rights and
            obligations of the Employer at the time that the put option is
            exercised. If it is known at the time a loan is made that Federal or
            State law will be violated by the Employer honoring the put option,
            the put option must permit the company stock to be put, in a manner
            consistent with applicable law, to a third party (e.g., an affiliate
            of the Employer or a shareholder other than the plan) that has
            substantial net worth at the time the loan is made and whose net
            worth is reasonably expected to remain substantial.

                  The put option may be exercised during the period that begins
            on the date the company stock is distributed to the Participant (or
            a beneficiary) and ends 60 days thereafter. If the put option is not
            exercised within the 60-day period, an additional 60-day option
            commences on the 1st day of the 5th month of the plan year next
            following the date the stock was distributed to the Participant (or
            any other 60-day period as provided in Treasury regulations).
            However, in the case of company stock that is publicly traded
            without restrictions when distributed and ceases to be publicly
            traded within either of the 60-day periods described above, the
            Employer must notify each holder of the company stock in writing on
            or before the 10th day after the date the company stock ceases to be
            publicly traded that for the remainder of the applicable 60-day
            period the company stock is subject to the put option. The number of
            days between the 10th day and the date on which notice is actually
            given, if later than the 10th day, must be added to the duration of
            the put option. The notice must inform distributees of the term of
            the put options that they are to hold. The terms must satisfy the
            requirements of this
<PAGE>
                                       4

            paragraph.

                  The put option is exercised by the holder by notifying the
            Employer in writing that the put option is being exercised. The
            notice must state the name and address of the holder and the number
            of shares to be sold. When written notification from the holder is
            received, the Employer will immediately inform the administrator of
            the notice. The administrator will have 10 days to notify the
            Employer if it wishes the trust fund to assume the rights and
            obligations of the Employer with respect to the required purchase of
            company stock.

                  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. The price at which a put option
            must be exercisable is the fair market value of the company stock,
            as determined by the plan administrator in good faith based on all
            the relevant factors, as of the allocation date coincident with or
            immediately preceding the Employer's receipt of the written
            notification. The total purchase price must be paid to the holder
            within 30 days after the notification. The Employer, however, may
            defer the payments on a reasonable basis, if it gives written notice
            to the holder within the 30 days period. The deferred payments must
            be paid in substantially equal monthly, quarterly, semiannual, or
            annual installments over a period certain beginning not later than
            30 days after the exercise of the put option and not extending
            beyond 5 years. The deferral of payment is reasonable if adequate
            security and a reasonable interest rate on the unpaid amounts are
            provided. The amount to be paid under the put option involving
            installment distributions must be paid not later than 30 days after
            the exercise of the put option. Payment under a put option must not
            be restricted by the provisions of a loan or any other arrangement,
            including the terms of the employer's articles of incorporation,
            unless so required by applicable state law.

                  For purposes of this Section, total distribution means a
            distribution within 1 taxable year to a Participant or his
            beneficiary of the Participant's entire vested account.

                        (3) An arrangement involving the plan that creates a put
            option must not provide for the issuance of put options other than
            as provided under this Section. The plan (and the trust fund) must
            not otherwise obligate itself to acquire company stock from an
            option holder at an indefinite time determined on the happening of
            an event, such as the death of the holder.
<PAGE>
                                       5

            In all other respects, the Plan will remain unchanged.

                                       WILSON GREATBATCH LTD.

      Date: May 31, 1999               By /s/ Larry T. DeAngelo
           --------------------          ----------------------------
<PAGE>

                     WILSON GREATBATCH EQUITY PLUS ESOP PLAN

                             MASTER TRUST AGREEMENT

      THIS AGREEMENT, made and entered into on the date of its execution, is
effective for all purposes as of March 11, 1998 by and between:

                      Wilson Greatbatch, Ltd. ("Employer")

                                       and

        Curt Cashmore, Larry T. DeAngelo, Scott Ferguson, Arthur Lalonde,
                        and Esther Takeuchi ("Trustee"),

   and shall be construed in accordance with the laws of the State of New York.

                                   WITNESSETH:

      WHEREAS the Employer has established the Wilson Greatbatch Equity Plus
ESOP Plan-Money Purchase Plan and the Wilson Greatbatch Equity Plus-Stock Bonus
Plan ("the participating plans"); and

      WHEREAS, the Employer desires to establish a Master Trust to allow for the
commingling of trust fund assets for investment purposes;

      NOW THEREFORE, the Employer and the Trustee do hereby agree to the
following provisions of this master trust agreement established for the purpose
of implementing said participating plans.

                                       1
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

Section 1.01: General

      The definitions set forth in the participating plans shall govern in this
master trust agreement.

      The term plan administrator shall mean the person or persons appointed
under the provisions of the participating plans. If the same persons are not
appointed to this position for all participating plans, then for the purposes of
this master trust agreement the term plan administrator shall mean the person or
persons appointed under the particular participating plan in question.

Section 1.02: Trustee

      The Trustee may be one or more individuals or an institution; the pronoun
"it" when referring to the Trustee shall mean he, she, they or it as necessary.

      Where the Trustee is more than one individual, the individuals shall
determine, subject to the approval of the Named Fiduciary, how responsibilities
shall be allocated. The actions of the Trustee shall be determined by the vote
or other affirmative expression of a majority of the appointed individuals.

                                   ARTICLE II

                           ESTABLISHMENT OF THE TRUST

Section 2.01: Establishment of the Trust

      The Employer hereby establishes with the Trustee a trust fund consisting
of such sums of money or other property, real or personal, as shall from time to
time be transferred to the Trustee. Such sums shall include any assets
transferred from the separate trust of a participating plan. All such money and
property, all investments and reinvestments made therewith and proceeds thereof
and all earnings and profits thereon, less any losses thereon and less the
payments which at the time of reference shall have been made by the Trustee, as
authorized herein, are referred to herein as the "fund" or "trust fund." The
fund shall be held by the Trustee in trust and dealt with in accordance with the
provisions of this agreement.

      Even though several participating plans may be funded under this master
trust agreement, the share of the fund allocable to each participating plan
shall be a separate trust fund for the exclusive benefit of the participants in
such participating plan and their beneficiaries and shall not be liable for any
expenses, debts, expenditures, or liabilities that are not properly allocable or
chargeable to such participating plan pursuant to the terms of this agreement.

      The Trustee hereby accepts this trust and agrees to hold all property
constituting the trust fund subject to the terms and conditions of this master
trust agreement and the participating plans.

      The trust is intended to be a qualified trust under section 401(a) of the
Internal Revenue Code of 1986, as amended, ("Code") and exempt from taxation
pursuant to Code section 501(a).

                                       2
<PAGE>

Section 2.02: Participation in the Fund

      In addition to the plans listed in this agreement, any pension or profit
sharing plan of the Employer may be funded in whole or in part through this
master trust provided all of the following conditions have been met:

            (a) such plan meets the requirements for qualification contained in
Code section 401;

            (b) the Employer has adopted this master trust as a funding vehicle
under such plan;

            (c) the Employer and the Trustee have consented to the Employer's
adoption of the master trust; and

            (d) the Employer has appointed the same Named Fiduciary as it has
appointed for the current participating plans.

                                   ARTICLE III

                       PROVISIONS RELATING TO THE TRUSTEE

Section 3.01: General Responsibilities

      The Trustee accepts the trust hereby created in accordance with the
documents and instruments governing the participating plans, insofar as they are
consistent with law and upon the express terms and conditions of the
participating plans, including the following:

            (a) The Trustee shall have exclusive authority and discretion to
manage, invest and control the trust fund, as provided in this agreement, and
shall have no other responsibilities other than those provided in this
agreement.

            (b) The Trustee shall exercise its powers and shall discharge its
duties with respect to the participating plans and this agreement solely in the
interests of the participants and beneficiaries and for the exclusive purpose of
providing benefits to participants and their beneficiaries and for defraying
reasonable expenses of administering the participating plans. The said powers
and duties shall be discharged with the care, skill, prudence and diligence
under the circumstances then prevailing that a prudent man acting in a like
capacity and familiar with such matters would use in the conduct of an
enterprise of like character and with like aims. The duty to invest shall be
discharged by diversifying the investments of the fund so as to minimize the
risk of large losses, unless under the circumstances it is clearly prudent not
to do so.

            (c) The Trustee shall maintain proper care and custody of all funds,
securities and other properties in the fund. The Trustee shall receive all
payments or other transfer of assets of the fund as shall be made from time to
time. However, the Trustee shall not be under any duty to determine the amount
of contributions to be paid by the Employer or to take any steps to collect such
amounts as may be due to it under each participating plan.

            (d) Whenever in the administration of a participating plan a
certification is required to be given to the Trustee or the Trustee shall deem
it necessary that a matter be proved prior to taking, permitting or omitting any
action hereunder, such certification shall be duly made and said matter may be
determined to be conclusively proved by an instrument delivered to the Trustee
signed by the Named Fiduciary, or, if

                                       3
<PAGE>

the matter shall concern the authority of the plan administrator, signed as
provided in Section 5.01; but in its discretion, the Trustee may in lieu thereof
accept other evidence of the matter or may acquire such further evidence as is
reasonable. The Trustee shall be protected in acting in good faith upon any
written document reasonably believed by the Trustee to be genuine and to have
been signed by the proper party or parties.

            (e) All moneys deposited with the Trustee under any provisions
hereof may be deposited by the Trustee in a trust account. The Trustee shall be
under no duty to invest or disburse such moneys except as provided in the
applicable participating plan and this agreement.

            (f) The Trustee may consult with legal counsel (who may be counsel
for the Employer) with respect to the interpretation of the master trust
agreement or its duties hereunder or with respect to any legal proceeding or any
question of law and shall be fully protected with respect to any act taken or
omitted by it in good faith pursuant to the advice of such counsel. Expenses or
fees incurred by the Trustee in its consultation shall be paid or reimbursed
from the fund.

            (g) The Trustee may make any payment required to be made hereunder
by mailing its check in the amount thereof by first class mail in a sealed
envelope addressed to the person to whom such payment is to be made according to
the certification of the plan administrator. The Trustee shall not be required
to make any investigation to determine the identity or mailing address of any
person entitled to benefits under a participating plan and shall be entitled to
withhold making payments or giving instructions to issuing companies pertaining
to the payment of benefits until the identity and mailing addresses of persons
entitled to benefits are certified to it by the plan administrator. The Trustee
shall not be responsible in any way respecting the purpose or propriety of such
payments except for the provisions of Section 3.03. In the event that any
dispute shall arise as to the identity or rights of persons entitled to benefits
hereunder, the Trustee may withhold payment of benefits until such dispute shall
have been determined by arbitration or by a court of competent jurisdiction or
shall have been settled by written stipulation by the parties concerned.

            (h) The Trustee shall receive reasonable compensation for its
services from the Employer or the trust fund on a basis as shall be mutually
agreed upon by the Employer and the Trustee. All reasonable unreimbursed
expenses of the fund, taxes and other items not payable out of the Trustee's
compensation shall be paid from the fund. However, if the Trustee is an
individual who is compensated as a full-time employee of the Employer, he shall
receive no compensation for serving as a Trustee and all reasonable expenses
incurred as Trustee shall be paid from the fund.

            (i) The Trustee shall pay from the fund all taxes of any kind or
nature which are imposed either as a result of the creation or operation of the
fund or because of any payment made under this agreement.

            (j) The Trustee shall keep full records of the administration of the
trust which the plan administrator shall have the right to examine at any time.
To the extent that the responsibilities set forth in Section 3.01(j)(1) are
accounting and bookkeeping responsibilities, the Named Fiduciary may delegate
such responsibilities to the Plan Administrator.

                  (1) A separate plan account shall be established and
maintained for each participating plan into which shall be paid the
contributions made by the Employer for such plan, which contributions, together
with any income, gains or profits, less distributions, expenses and losses,
shall comprise a separate trust fund for such participating plan. The
establishment of a separate plan account hereunder shall be for accounting and
bookkeeping purposes only and shall not require a segregation of any

                                       4
<PAGE>

part of the assets of the trust fund, and no participating plan, or a
participant or former participant of a participating plan, shall acquire any
right to or interest in any specific asset of the fund; provided, however, that
any insurance policy or annuity contract acquired for or under a participating
plan shall be segregated by the Trustee and separately maintained. The Trustee
shall hold, invest, reinvest, manage, administer and distribute the assets of
each separate plan account, as hereinafter set forth, for the exclusive benefit
of the employees participating in such participating plan and their
beneficiaries. If an Employer maintains more than one participating plan, the
Employer shall advise the Trustee and the Plan Administrator as to which
separate plan account contributions made by it are to be credited.

                  As of the end of each plan year or more frequently as
determined by the Trustee or directed by the Employer, any increase or decrease
in the net worth of the fund attributable to investment earnings, gains, losses,
expenses and unrealized appreciation or depreciation, as determined by the
Trustee, shall be credited to or deducted from each separate plan account as
follows:

                        (A) Any expenses or portions thereof which are
separately identifiable as attributable to a separate plan account, rather than
to the fund as a whole (such as actuarial fees), shall be charged against such
account. To the extent that any expenses or portions thereof are not separately
identifiable as attributable to a separate plan account, such expenses shall be
allocated among all separate plan accounts in proportion to the value that each
such account bears to the total of all such accounts.

                        (B) Investment earnings, gains, losses, and unrealized
appreciation or depreciation shall be allocated between all separate plan
accounts in proportion to the value that each such account bears to the total of
all such accounts.

                  (2) Within sixty (60) days following the close of each plan
year and within sixty (60) days after its resignation or removal, the Trustee
shall furnish the plan administrator with a statement of the entire fund. This
statement shall contain such information as is required to comply with the
reporting and disclosure requirements of the Employee Retirement Income Security
Act of 1974, as amended, ("ERISA"). The report shall show all purchases, sales,
receipts, disbursements and other transactions effected by the Trustee during
the year or period for which the report is filed, and shall contain an exact
description, the cost as shown on the Trustee's books, and where readily
ascertainable, the market value as of the end of such period of every item held
in the trust and the amount and nature of every obligation owed by the trust.
For purposes of determining the market value of securities held by the Trustee,
such securities shall be valued as of the close of business on the last day of
the reporting period.

                  The approval by the plan administrator of the final statement
of account upon the Trustee's resignation or removal or the participating plans'
termination shall be binding as to all matters embodied in the statement, on all
parties to the trust and on all participants to the same extent as if the
account of the Trustee had been settled by a judgment or decree in an action for
judicial settlement of its account in a court of competent jurisdiction in which
the Trustee, the Employer, the plan administrator and all persons having or
claiming any interest in the trust fund were parties. If the plan administrator
disapproves the Trustee's statement and the matter cannot be satisfactorily
adjusted by the parties, the Trustee shall have the right to apply to a court of
competent jurisdiction for judicial settlement of its account.

            (k) The Trustee is authorized to sue upon, defend, compromise or
otherwise settle any obligation or liability due to or from it as Trustee
hereunder, including any claim that may be asserted for taxes under present or
future laws or to contest the same

                                       5
<PAGE>

by appropriate legal proceedings; but it shall not be required to institute or
continue litigation unless it is in possession of money sufficient for that
purpose or unless it has been indemnified by the Employer against counsel fees
and all other expenses and liabilities to which it may, in its judgment, be
subject by such action, provided further that the Trustee shall be entitled out
of recoveries of any litigation to reimbursement for its expenses in connection
therewith. Further, the Trustee is authorized with regard to an obligation due
the fund to reduce the rate of interest thereon, extend or otherwise modify it,
or to foreclose upon default or otherwise enforce any such obligation; to bid in
property on foreclosure or to take a deed in lieu of foreclosure with or without
paying consideration therefor and in connection therewith to release the
obligation on the bond secured by the mortgage.

            (l) A third party dealing with the Trustee shall not be required to
make any inquiry whether the plan administrator has instructed the Trustee or
the Trustee is otherwise authorized to take or omit any action.

            (m) A participating plan fiduciary shall be liable for a breach of
fiduciary responsibility of another fiduciary of the participating plan or this
trust as provided by law, which may include the following circumstances:

                  (1) If it participates knowingly in, or knowingly undertakes
to conceal an act or omission of such other fiduciary, knowing such act or
omission is a breach;

                  (2) If, by its failure to comply with the prudent man standard
(established in paragraph (b) of this Master Trust Agreement or the
administrative provisions of the participating plans) in the administration of
its specific responsibilities which give rise to its status as a fiduciary, it
has enabled such other fiduciary to commit a breach; or

                  (3) If it has knowledge of a breach by some other fiduciary,
unless it makes reasonable efforts under the circumstances to remedy the breach.

            (n) Any liabilities under a participating plan shall be satisfied
only out of such plan's separate account. A liability shall not be satisfied by
any account of the trust fund if it is due to or arising from fraud, dishonesty,
misconduct of the Trustee or arising from acts which are in violation of the
Trustee's duties as set forth in paragraph (b) and Section 3.03 or which are
described in paragraph (m).

            (o) The Trustee is hereby authorized to execute all necessary
receipts and releases to any insurance companies concerned, and it shall be
under the duty, upon being advised by the plan administrator that the proceeds
of any life insurance, retirement income, endowment or annuity contact have
become payable, to take whatever steps may be indicated, with reasonable
diligence, in collecting such sums as may appear to be due.

            The Trustee shall have no responsibility for the form, genuineness,
validity, sufficiency or effect of any life insurance, retirement income,
endowment or annuity contract at any time included in the trust or for any act
of the Employer, the plan administrator, a participant or any other person which
may render any such contract void, or for the failure of any insurer to pay the
proceeds of any such contract as and when the same shall become payable or for
any delay occasioned by reason of any provision contained in any such contract,
or for the refusal of any insurer to take any action requested by the Trustee,
or for any reason whatsoever (except for the Trustee's own violation of the
prudent man rule in paragraph (b)) any contract shall lapse or otherwise become
uncollectible.

                                       6
<PAGE>

            (p) The Trustee may enter into any transaction authorized by this
agreement with trustees or legal representatives of any other trust or estate,
even though any such trustee or legal representative is also Trustee hereunder.

            (q) If the Trustee shall determine that the trust assets consist in
whole or in part of property not traded freely on a recognized market, or that
information necessary to ascertain the fair market value thereof is not readily
available to the Trustee, the Trustee shall request the Named Fiduciary to
instruct the Trustee as to the value of such property, for all purposes under
the participating plans and this agreement; and the Named Fiduciary shall comply
with such request. The value placed upon such property by the Named Fiduciary's
instructions to the Trustee shall be conclusive and binding upon the Trustee
subject to the Trustee's responsibility not to commit a prohibited transaction.
If the Named Fiduciary shall fail or refuse to instruct the Trustee as to the
value of such property within a reasonable time after receipt of the Trustee's
request to do so, the Trustee may engage a competent appraiser to fix the fair
market value of such property for all purposes hereunder. The determination of
any such appraiser as to the fair market value of such property shall be the
value reported hereunder. The reasonable fees and expenses incurred for any such
appraisal shall be deemed an expense of the Trustee and paid as provided herein.

Section 3.02: Resignation or Removal of Trustee

            (a) The Trustee may resign at any time upon delivering to the Named
Fiduciary of the participating plans a written notice of its resignation to take
effect not less than thirty (30) days after the delivery thereof, unless such
notice shall be waived.

            (b) Any Trustee appointed hereunder may be removed by the delivering
to the Trustee a written notice from the Named Fiduciary removing the Trustee,
to take effect at a date specified therein, which shall not be less than thirty
(30) days after delivery of such notice to such Trustee, unless such notice
shall be waived.

            (c) In case of resignation or removal of the Trustee, the Trustee
shall have the right to a settlement of its accounts as described in Section
3.01(j). Upon such settlement, the Trustee shall transfer to the successor
Trustee the trust fund as it may then be constituted and copies of such of its
records as relate to the trust and shall execute upon request all documents
necessary for transferring the assets of the trust and thereupon the Trustee
shall be discharged from further accountability for all matters embodied in such
settlement.

            (d) The Employer, upon its receipt of notice from the Named
Fiduciary of the resignation or removal of a Trustee, shall appoint forthwith a
successor Trustee. A successor Trustee so appointed may qualify as such by
executing, acknowledging and delivering to the Employer and to the resigned or
removed Trustee an instrument accepting such appointment; and upon delivery of
the fund, such successor Trustee without further act shall be vested with all of
the duties, rights, and powers of its predecessor Trustee with the same effect
as if it had been originally named as Trustee herein.

Section 3.03: Prohibited Transactions

      Notwithstanding any other provision of this agreement, the Trustee is
expressly prohibited from engaging in the following actions:

            (a) diversion of any part of the fund to any purpose other than the
exclusive benefit of participants and beneficiaries under the participating
plans.

                                       7
<PAGE>

            (b) engaging in any transaction which results in a diversion of any
part of the fund to the Employer or to any other person or entity with whom or
which such a transaction is prohibited by the Code or by ERISA, including with
regard to such persons or entities: lending any part of the fund without
adequate security and a reasonable rate of interest; paying any compensation in
excess of a reasonable allowance for services actually rendered; making any
purchase of securities or other property at more than fair market value; selling
any securities or other property for less than fair market value; or making any
part of the fund available on preferential basis.

                                   ARTICLE IV

Section 4.01: Investment of Participating Plan Assets

      The Trustee shall manage the fund in the manner and for the uses and
purposes herein provided. The Trustee is authorized to manage the fund in
accordance with the funding policy; provided, however, that if an investment
manager has been appointed or if the Named Fiduciary provides specific
investment directions, the Trustee shall be subject to the directions of said
investment manager or Named Fiduciary. To the extent that a participant has
given specific investment directions as allowed by the participating plans, the
Trustee shall be subject to such directions as transmitted to it by the plan
administrator. In addition to the powers given by law, the Trustee is
authorized, within its discretion and subject to the above conditions:

      (a) To invest and reinvest the fund or any part thereof without
distinction between principal and income in any common or preferred stocks,
bonds, mortgage notes, put and call options (including the granting of options
to purchase and sell securities) or other securities or any other form of
property, real or personal on margin or otherwise (including short sales), as
authorized by law for the investment of trust funds, including common or pooled
investment funds established and maintained by the Trustee or an affiliate of
the Trustee and stock in any registered investment company which may be advised
by the Trustee or any affiliate and from which the Trustee may receive
compensation as advisor. Whenever the fund acquires units in a common/collective
trust available only to trust funds qualified under Code section 401(a), the
provisions of the particular common/collective trust indenture, as amended from
time to time, with respect to investment duties, responsibilities and powers of
its trustee shall be deemed to be incorporated herein and be a part hereof to
the extent required by law. The trustee of the common/collective trust shall be
governed solely by such trust indenture. For purposes of valuation, the value of
the interest maintained by the fund in such common/collective trust shall be the
fair market value of the units held, determined in accordance with generally
recognized valuation procedures. The Employer expressly understands and agrees
that any such common/collective trust may provide for the lending of its
securities by its trustee and that the common/collective trust's trustee will
receive compensation from such trust for the lending thereof which is separate
from any compensation of the Trustee hereunder or any compensation of the
common/collective trust's trustee for the management of such trust. Further, the
Trustee shall diversify the investments of the fund so that the risk of loss
will be minimized.

      (b) To retain in cash or other property unproductive of income so much of
the fund as may be deemed advisable, or to invest in the savings department of a
banking institution, including a bank acting as Trustee, or a bank affiliated
with the Trustee, or in a loan association or building and loan association.
Such investments may include savings accounts, time deposits or certificates of
deposit with maturities of less or more than one year; however, such investments
shall be federally insured and shall bear a prevailing rate of interest.

                                       8
<PAGE>

      (c) To sell property held in the fund at either public or private sale for
cash or on credit at such times as it may deem appropriate; to exchange such
property; to grant options for the purchase or exchange thereof without need for
the purchasers to see to the application of the purchase money.

      (d) To oppose or consent to and participate in any plan of reorganization,
recapitalization, consolidation, sale, merger, extension or other similar plan
affecting property held in the fund; to consent to any contract, lease,
mortgage, purchase, sale or other action by any corporation pursuant to any such
plan; to accept and retain property issued under such plan.

      (e) To deposit property in the fund with any protective, reorganization or
similar committee; to delegate discretionary power thereto and to pay the
reasonable share in such committee's expenses and compensation and any
assessments levied with respect to any property so deposited.

      (f) To exercise all conversion and subscription rights pertaining to
property held in the fund.

      (g) To vote in person or by proxy the stocks, securities, or other
investments which it holds as Trustee; and to execute and deliver proxies,
powers of attorney, and other agreements which it deems advisable; to exchange
the securities of any corporation or issuing authority for other securities upon
such terms and conditions as it deems advisable; to consent to or oppose any
corporate action; to pay all assessments and subscriptions as it deems
advisable; to exercise options and, in general, to exercise in respect of all
stocks, securities, or other investments which it holds as Trustee all rights,
powers and privileges as might be exercised by an individual in his own right.

      (h) To cause securities and other properties to be registered and held in
its name as Trustee or in the name of a nominee, provided that the records of
the Trustee show that all such investments are part of the fund.

      (i) To borrow money (subject to the prohibitions of Section 3.03) for the
purposes of the participating plans and, for sums so borrowed, to issue a
promissory note or bond and mortgage and to secure payment thereof by the
pledging of securities held in the fund or mortgaging real property contained
therein, and to pay interest at a reasonable rate upon sums so borrowed;
however, no insurance contract shall be pledged except to secure a loan to pay
premiums thereon. Borrowing on insurance contracts to a premiums shall be on a
pro rata basis.

      (j) To invest the fund or any part thereof with an insurance company under
a deposit administration contract, an investment-only contract, or contracts of
like character offered by such insurance company; to apply for, purchase, hold
or transfer, pursuant to the participating plans, and in accordance with written
instructions from the plan administrator, any life insurance, retirement income,
endowment or annuity contract; to exercise any of the rights under any such
contract, in any manner for the purpose of benefiting the participating plans.

      (k) To invest in life insurance contracts on the lives of key employees of
the Employer; such contracts shall be owned by and shall name the Trustee as
beneficiary for the benefit of the trust fund as a whole and shall not be
allocated to the account of any particular participant.

      (l) To make participant loans, if permitted, in accordance with the
provisions of each participating plan.

                                       9
<PAGE>

      (m) To receive, hold, manage, improve, repair, lease, pledge, mortgage, or
otherwise dispose of all or any part of the fund upon such terms, prices and
conditions as it deems advisable; to execute such instruments, deeds, leases,
mortgages, contracts, agreements, assignments, transfers, bills of sale, and
other documents of any kind, as it deems advisable; to pay out of trust assets
normal brokerage charges, commissions, taxes and other costs incident to the
purchase and sale of securities which are included in the cost of securities
purchased, or charges against the proceeds in the case of sales.

      (n) To employ agents with or without discretionary powers (including
investment counsel, attorneys, auditors, depositaries and proxies) for advice
and to manage the investment of the trust property. All such parties shall have
the right to rely upon and execute the written instructions of the Trustee and
shall not be obliged to inquire into the propriety of the acts or directions of
the Trustee.

      (o) Notwithstanding other provisions of this Section, under no
circumstances may the Trustee invest in any Employer securities which are not
qualifying Employer securities (as defined in ERISA section 407(d)(1)) nor shall
the Trustee invest in any Employer real property which is not qualifying
Employer real property (as defined in ERISA section 407(d)(2)). Additionally,
the Trustee may not acquire any qualifying Employer security or qualifying
Employer real property if immediately after such acquisition the aggregate fair
market value of Employer securities and Employer real property held by the trust
fund exceeds ten percent of the fair market value of all trust assets, unless
the plan is an employee stock ownership plan or an individual account plan.

      (p) Generally, to do such acts, execute all such instruments, act on such
proceedings and to exercise all rights and privileges with relation to property
constituting the fund as if it were the absolute owner thereof.

Section 4.02:

      Upon instructions of the plan administrator, the Trustee shall purchase
from an insurance company single premium annuity contracts of such amount as the
plan administrator directs for the purpose of providing the benefits to which
the participants individually or severally shall be entitled under the
particular participating plan. Any such annuity contracts shall be
nontransferable.

Section 4.03:

      All title in every contract purchased and held hereunder shall be vested
in the Trustee.

Section 4.04: Appointment of Investment Manager

      The Named Fiduciary may at any time and from time to time appoint, and
revoke the appointment of, an investment manager ("Investment Manager"), who
shall be registered as an investment advisor under the Investment Advisers Act
of 1940, shall be exempt from such registration as a trust company or as a
commercial bank authorized to conduct trust business, or shall be an insurance
company qualified to perform investment services under the laws of more than one
state of the United States and who shall acknowledge in writing to the Employer
and the Trustee that he is a fiduciary with respect to the Master Trust and each
participating plan and shall provide to them a certificate evidencing such
qualification. The Investment Manager shall not be the agent of the Trustee. The
Named Fiduciary shall notify the Trustee in writing of any such appointment (or
revocation thereof), and the Trustee shall be protected in relying upon such
appointment continuing in effect until it receives written notice from the Named
Fiduciary of its revocation. So long as, and to the extent that, any such
Investment Manager is appointed, the following provisions shall apply:

                                       10
<PAGE>

      (a) The Trustee shall invest, reinvest and retain the trust fund in
accordance with the instructions received from such Investment Manager;

      (b) With respect to assets in the trust fund, the Trustee shall follow any
instructions received by it from such Investment Manager as to the exercise by
the Trustee of the powers conferred upon it under Section 4.01(a), (c), (d),
(f), (g), (j) and (m) hereof, and

      (c) That part of the trust fund not assigned to an Investment Manager
shall be invested, reinvested and retained by the Trustee in accordance with its
own discretion.

      (d) All instructions from the Investment Manager to the Trustee shall be
in writing (or by telephone or telegraph confirmed in writing) and shall be
complete in all reasonable and necessary details. The Trustee shall have no duty
to question such instructions nor shall the Trustee incur any liability for its
actions in following such instructions or for its omissions when no instructions
are received by it.

      (e) The Employer shall indemnify and hold the Trustee or its nominee
harmless against any and all claims, actions, demands, liabilities, losses,
damages or expenses of whatsoever kind and nature, which either arise from the
failure of the Trustee to pay for property purchased by the Investment Manager
for the trust fund by reason of the insufficiency of funds in the trust fund, or
from any actions taken by the Trustee in following investment direction of the
Investment Manager or inaction by the Trustee in the absence of investment
direction by an Investment Manager, or from the trading activities conducted by
the Investment Manager on behalf of the trust fund.

      (f) If the Named Fiduciary so directs, the Investment Manager may take and
keep custody and possession of all or part of the assets of the fund, and may
perform the other functions of Trustee as set forth in this agreement. The
accounts, books and records of the Trustee shall reflect the segregation of said
portions of the fund in separate investment management accounts. The Investment
Manager's records shall at all times reflect fund assets in its custody as
assets of this trust. The Trustee shall have no further responsibility for
either the safekeeping or management of such assets. Trustee shall continue to
perform its record-keeping function under Section 3.01(j) as to such assets, but
in doing so may rely on information furnished by the Investment Manager. Upon
notification by the Named Fiduciary and the receipt of physical custody of
assets held by the Investment Manager, the Trustee shall assume management
responsibility for such assets in accordance with Articles III and IV.

                                    ARTICLE V

           PROVISIONS RELATING TO THE PLAN ADMINISTRATOR AND EMPLOYER

Section 5.01: Plan Administrator

      Whenever a new plan administrator or a new member of an administrative
committee is appointed, the Named Fiduciary shall certify to the Trustee in
writing the name or names of the person or persons so appointed and the name of
the participating plan to which the person is so appointed, and the Trustee
shall be fully warranted in assuming that such person or persons shall continue
in office until advised differently in the same manner. Whenever the Trustee
must or may act upon the direction or approval of an administrative committee,
the Trustee may act upon written communication signed by its Chairman or
Secretary or any agent appointed in writing by all members of the committee to
act on their behalf, and the authority of any such agent shall be deemed to
continue until revoked in writing.

                                       11
<PAGE>

Section 5.02: Duties of Employer

      It shall be the duty of the Employer, subject to the provisions of each
participating plan, to pay over to the Trustee from time to time its
contributions to the trust fund as provided in each such participating plan and
to keep accurate books and records with respect to the employees and their
compensation.

      Whenever a new Named Fiduciary is appointed, the Employer shall certify to
the Trustee in writing the name or names of the person or persons so appointed,
and the Trustee shall be fully warranted in assuming that such person or persons
shall continue in office until advised differently in the same manner.

      The Employer shall deliver to the Trustee a copy of each participating
plan and any amendments thereto as soon as administratively feasible.

      The Employer shall indemnify the Trustee (if such Trustee is an individual
or individuals) by paying the costs of defending a suit, including any
settlement or judgment connected therewith, for any act or omission in
accordance with instructions received from the Employer or plan administrator
and in connection with which no gross negligence or lack of good faith can be
shown. The Employer may agree to further indemnify the Trustee as to certain or
all additional liability in connection with its duties as set forth herein, in
stead of permitting the trust fund to satisfy the liability as provided in
Section 3.01(n).

                                   ARTICLE VI

                        AMENDMENT OR TERMINATION OF TRUST

Section 6.01:

      The Employer may amend or terminate this master trust agreement at any
time; provided that no amendment affecting the Trustee may be made without its
consent, nor shall any amendment divest any benefit then vested in a participant
or his beneficiary under any participating plan. The Employer shall deliver to
the Trustee notice of any amendment or termination of a participating plan or
trust agreement.

Section 6.02:

      If a participating plan is terminated (including a partial termination),
if there is a complete discontinuance of contributions to a participating plan,
or if this master trust agreement is revoked or terminated; the Trustee shall
reserve from such plan's separate account such sums as the Trustee shall deem
necessary to settle its accounts and to discharge any obligation of the trust
fund for which the Trustee may be liable. Thereafter, the Trustee shall apply
and distribute the plans separate account portion of the trust fund in
accordance with the provisions of the participating plan and any written
instructions of the plan administrator pursuant thereto.

Section 6.03:

      The Trustee shall have a right to have its applicable accounts settled as
provided in Section 3.01(j) of this agreement. When the trust fund shall have
been so applied or distributed and the applicable accounts of the Trustee shall
have been so settled, the Trustee shall be released and discharged from all
further accountability or liability respecting the applicable accounts, or any
part thereof so applied or distributed.

                                       12
<PAGE>

Section 6.04:

      The trust shall continue until it has been entirely transferred, paid over
or distributed pursuant to the directions of the plan administrator. If,
pursuant to the provisions of a participating plan, the Employer's liability is
assumed by any other business organization; then such other business
organization shall be deemed to succeed to the position of Employer or to be an
additional Employer under this trust agreement, as appropriate.

                                   ARTICLE VII

                            MISCELLANEOUS PROVISIONS

Section 7.01: No Reversion to Employer

      The participating plans and this master trust agreement are created for
the exclusive benefit of the employees of the Employer and shall be interpreted
in a manner consistent with being a qualified plan as defined in Code Section
401(a) and with ERISA. Subject to Article VI and this Section 7.01, the trust is
irrevocable. The corpus and income of the trust may not be diverted to or used
for other than the exclusive benefit of the participants or their beneficiaries
(except for defraying reasonable expenses of administering the participating
plans).

      Notwithstanding the above, a contribution paid by the Employer to the
trust may be repaid to the Employer under the following circumstances:

            (a) Any contributions made by the Employer are subject to the
conditions that its contribution is not due to a mistake of fact and that the
Internal Revenue Service will not disallow the deduction for its contribution.
The Trustee, upon written request from the Employer, shall return to the
Employer the amount of the Employer's contribution made by mistake of fact or
disallowed as a deduction under Code section 404. The Trustee shall not return
any portion of the Employer's contribution under the provisions of this
paragraph more than one year after: (1) The date on which the Employer made the
contribution by mistake of fact; or (2) The time of disallowance of the
contribution as a deduction, and then, only to the extent of the disallowance.
The Trustee will not increase the amount of the Employer contribution returnable
under this paragraph for any earnings attributable to the contribution, but the
Trustee will decrease the Employer contribution returnable for any losses
attributable to it. The Trustee may require the Employer to furnish whatever
evidence it deems necessary to confirm that the amount the Employer has
requested be returned is properly returnable under ERISA.

            (b) In the event the deduction of a contribution made by the
Employer is disallowed under Code section 404, such contribution (to the extent
disallowed) must be returned to the Employer within one year of the disallowance
of the deduction.

            (c) If the Commissioner of Internal Revenue determines that a
participating plan is not initially qualified under the Code, all contribution
made incident to that initial qualification by the Employer must be returned to
the Employer within one year after the date the initial qualification is denied
after adjustment for any earnings, losses or necessary expenditures, but only if
the application for the qualification is made by the time prescribed by law for
filing the employer's return for the taxable year in which the plan is adopted,
or such later date as the Secretary of the Treasury may prescribe.

                                       13
<PAGE>

Section 7.02: Binding Agreement

      This agreement shall be binding on the heirs, executors, administrators,
successors and assigns as such terms may be applicable to any or all parties
hereto, and on any participants, present or future.

Section 7.03: Trust Fund Exclusive Source

      All payments of benefits under a participating plan shall be made
exclusively from its separate account by means of the assets of the trust fund
as they may be constituted at the time or times of payment, and no persons shall
be entitled to look to any other source for such payments.

Section 7.04: Separability Provision

      If any provision of this agreement shall be held invalid or unenforceable,
such invalidity or unenforceability shall not affect any other provision hereof,
and this agreement shall be construed and enforced as if such provision had not
been included.

Section 7.05: Construction

      This agreement shall be construed in accordance with the laws of the state
named in the preamble, except to the extent preempted by Federal law.

Section 7.06: Copies of Agreement

      This agreement may be executed in any number of counterparts, each of
which shall be deemed an original, and said counterparts shall constitute but
one and the same instrument which may be sufficiently evidenced by any one
counterpart.

Section 7.07: Other Employer

      If any other employer adopts a participating plan, it shall be deemed
thereby to have assented to the provisions of this agreement and to have become
a party hereto as fully and completely as if it had been named herein as an
Employer and had executed same.

Section 7.08: Successor Employer

      If a corporation with which the Employer is merged or consolidated, or a
corporation which acquires substantially all of the assets of the Employer,
elects to continue the participating plans, such surviving or acquiring
corporation may notify the Trustee, in writing; and thereafter every reference
to Employer herein shall be treated as a reference to such surviving or
acquiring corporation. If the Employer is liquidated or merged or consolidated
with another company and the participating plans are not continued, then the
plan administrator shall succeed to the functions of Employer under the
participating plans and this agreement.

Section 7.09: Enforcement

      The Employer or plan administrator shall have authority to enforce this
agreement on behalf of any person claiming any interest in the fund or under a
participating plan. To protect the fund from expenses which might otherwise be
incurred, it is agreed and imposed as a condition for securing any interest in
the fund that no other person may institute or maintain any action or proceeding
against Trustee or the fund in the absence of written authority from the
Employer or plan administrator or the judgment of a court of competent
jurisdiction.

                                       14
<PAGE>

Section 7.10: Alienation

      No distribution or payment under this agreement to any participant or his
beneficiary under the participating plans shall be subject in any manner to
anticipation, sale, transfer, assignment or encumbrance, whether voluntary or
involuntary; and no attempt to so anticipate, sell, transfer, assign or encumber
the same shall be valid or recognized by the Trustee, nor shall any such
distribution or payment be in any way liable for or subject to the debts,
contracts, liabilities or torts of any person entitled to such distribution or
payment, except to such extent as may be required by law or expressly provided
in the participating plans.

Section 7.11: ERISA

      Any provision of this agreement shall be interpreted as being consistent
with the Employee Retirement Income Security Act of 1974, as amended. Where such
interpretation is not possible, such provision shall be inapplicable, void and
severable, but only to the extent that it is inconsistent with such Act and the
regulations and rulings thereunder.

                                       15
<PAGE>

      IN WITNESS WHEREOF, the Employer and the Trustee have caused this
agreement to be executed by their duly authorized representatives on this 1st
day of March, 1998.

                                    EMPLOYER:

                                    By: /s/ Larry T. DeAngelo
                                       -----------------------------------
                                    Title: V.P. Administration & Secretary
                                          --------------------------------
                                    WILSON GREATBATCH, LTD.

                                    By: /s/ Curt Cashmore
                                       -----------------------------------
                                    TRUSTEE: CURT CASHMORE

                                    By: /s/ Larry T. DeAngelo
                                       -----------------------------------
                                    TRUSTEE: LARRY T. DEANGELO

                                    By: /s/ Scott Ferguson
                                       -----------------------------------
                                    TRUSTEE: SCOTT FERGUSON

                                    By: /s/ Arthur Lalonde
                                       -----------------------------------
                                    TRUSTEE: ARTHUR LALONDE

                                    By: /s/ Esther Takeuchi
                                       -----------------------------------
                                    TRUSTEE: ESTHER TAKEUCHI

                                       16
<PAGE>

                                 FIRST AMENDMENT

                                       to

                    WILSON GREATBATCH LTD. EQUITY PLUS PLAN -
                             MASTER TRUST AGREEMENT

            Under Article VI of the Wilson Greatbatch Ltd. Equity Plus Plan -
Master Trust Agreement (the "Agreement"), Wilson Greatbatch Ltd. (the
"Employer") and the Trustee have the right to amend the Agreement at any time.
Therefore, the Employer and the Trustee hereby amend the Plan in the following
respect:

            1. Effective January 1, 1999, the first sentence of Section 3.01(g)
is hereby deleted in its entirety, and is replaced by the following:

            The Trustee may make any payment or distribution directed by the
            plan administrator to be made from the trust by mailing a check for
            the specified amount, or by delivering the specified property, to
            the person to whom, or on whose behalf, the payment or distribution
            is to be made.

            In all other respects, the Agreement will remain unchanged.

                                     WILSON GREATBATCH LTD.

      Date: March 27, 1999           By /s/ Larry T. DeAngelo
           --------------------         -----------------------------

                                     TRUSTEE:

      Date: March 17, 1999           /s/ Curt Cashmore
            ---------------------------------------------------------
                                     Curt Cashmore

      Date: March 27, 1999           /s/ Larry T. Deangelo
            ---------------------------------------------------------
                                     Larry T. Deangelo

      Date: March 16, 1999           /s/ Barbara Davis
            ---------------------------------------------------------
                                     Barbara Davis

      Date: 3/24/99                  /s/ Arthur Lalonde
            ---------------------------------------------------------
                                     Arthur Lalonde

      Date: March 17, 1999           /s/ Esther Takeuchi
            ---------------------------------------------------------
                                     Esther Takeuchi
<PAGE>

                                SECOND AMENDMENT

                                       to

                    WILSON GREATBATCH LTD. EQUITY PLUS PLAN -
                               MONEY PURCHASE PLAN

            Under Article VII of the Wilson Greatbatch Ltd. Equity Plus Plan -
Money Purchase Plan (the "Plan"), Wilson Greatbatch Ltd. (the "Employer") has
the right to make written amendments to the Plan that are authorized by the
board of directors of the Employer and executed by an authorized officer of the
Employer. Therefore, the Employer hereby amends the Plan in the following
respects:

            1. Effective January 1, 1999, Plan Section 4.4 is hereby deleted in
its entirety, and is replaced by the following provision:

            Section 4.4 Form of Distribution

                  (a) Unless a Participant or a beneficiary demands that his or
            her benefits attributable to the Company Stock Account be
            distributed in the form of company stock, the plan administrator
            may, but is not obligated to, direct the trustee to distribute
            benefits in cash only. The amount of any cash payment to a
            Participant will be equal to the fair market value of the company
            stock that would otherwise have been distributed to the Participant,
            plus the value of his or her other investment account and directed
            investment account.

                  (b) The trustee may make distributions from the trust only on
            instructions from the plan administrator.

            2. Effective January 1, 1998, the words "stock bonus" are hereby
deleted from the first sentence of Plan Section 5.2(c).

            3. Effective January 1, 1999. Plan Section 5.6 is hereby deleted in
its entirety, and is replaced by the following provision:

            Section 5.5 ESOP Distribution Options

                  (a) Right to Receive Stock

                  The right to receive distributions in the form of shares of
            company stock is automatically terminated in the event of the sale
            or other disposition by the trustee of all shares of company stock
            held by the trust.
<PAGE>
                                       2

                  (b) Restricted Stock

                        (1) Notwithstanding any other provision of the Plan, if
            the Employer's charter or by-laws restrict ownership of
            substantially all shares of company stock to employees and the trust
            fund, as described in Code Section 409(h)(2), the administrator will
            distribute a Participant's account entirely in cash, without
            granting the Participant the right to demand distribution in shares
            of company stock.

                        (2) Except as otherwise provided under the plan, company
            stock distributed by the trustee may be restricted as to sale or
            transfer by the bylaws or articles of incorporation of the Employer,
            if the restrictions are applicable to all company stock of the same
            class. Certificates representing company stock distributed by the
            plan will bear a legend or notation required by applicable federal
            and state securities laws and regulations.

                  (c) Right of First Refusal

                        (1) If any Participant, his or her beneficiary or any
            other person to whom shares of company stock are distributed from
            the plan (the selling Participant) wants, at any time that the stock
            is not publicly traded, to sell some or all of his or her shares
            (the offered shares) to a third party, the selling Participant must
            give prior written notice of his or her plans to sell the stock to
            the Employer and the trustee. The notice must contain the number of
            shares offered for sale, the proposed terms of the sale and the
            names and addresses of both the selling Participant and third party.
            The trustee and the Employer each will have the right of first
            refusal for a period of 14 days from the date the selling
            Participant gives written notice to the Employer and to the trustee
            to acquire the offered shares. The 14-day period runs concurrently
            with respect to the trust fund and the Employer. As between the
            trust fund and the Employer, the trust fund has priority to acquire
            the shares pursuant to the right of first refusal. If the trustee or
            the Employer exercises their right of first refusal, the selling
            price and terms may not be less than the price and terms offered by
            the third party.

                        (2) If the trustee and the Employer do not exercise
            their right of first refusal within the required 14-day period, the
            selling Participant has the right, at any time following the
            expiration of the period, to dispose of the offered shares to the
            third party. Nevertheless, no disposition may be made to the third
            party on terms more favorable to the third party than those set
            forth in the written notice previously given by the selling
            Participant to the Employer and trustee. If the disposition is not
            made to a third party on the terms offered to the Employer and the
            trustee, the offered shares are again subject to the right of first
            refusal described above.

                        (3) The closing following the exercise of a right of
            first refusal
<PAGE>
                                       3

            will take place at such place agreed on between the administrator
            and the selling Participant, but not later than ten (10) days after
            the Employer or the trustee notifies the selling Participant of the
            exercise of the right of first refusal. At the closing, the selling
            Participant must deliver certificates representing the offered
            shares duly endorsed in blank for transfer, or with stock powers
            attached duly executed in blank with all required transfer tax
            stamps attached or provided for, and the Employer or the trustee
            must deliver the purchase price, or an appropriate portion thereof,
            to the selling Participant.

                  (d) Put Option

                        (1) If company stock is distributed to a Participant and
            the company stock is not readily tradeable on an established
            securities market, a Participant has a right to require the Employer
            to repurchase the company stock distributed to such Participant
            under a fair valuation formula. That stock shall be subject to the
            provisions of (c).

                        (2) The put option is exercisable only by a Participant,
            by the Participant's donees, or by a person (including an estate or
            its distributee) to whom the company stock passes by reason of a
            Participant's death. The put option must permit a Participant (or a
            beneficiary) to put the company stock to the Employer. Under no
            circumstance may the put option bind the plan. However, the put
            option grants the plan an option to assume the rights and
            obligations of the Employer at the time that the put option is
            exercised. If it is known at the time a loan is made that Federal or
            State law will be violated by the Employer honoring the put option,
            the put option must permit the company stock to be put, in a manner
            consistent with applicable law, to a third party (e.g., an affiliate
            of the Employer or a shareholder other than the plan) that has
            substantial net worth at the time the loan is made and whose net
            worth is reasonably expected to remain substantial.

                  The put option may be exercised during the period that begins
            on the date the company stock is distributed to the Participant (or
            a beneficiary) and ends 60 days thereafter. If the put option is not
            exercised within the 60-day period, an additional 60-day option
            commences on the 1st day of the 5th month of the plan year next
            following the date the stock was distributed to the Participant (or
            any other 60-day period as provided in Treasury regulations).
            However, in the case of company stock that is publicly traded
            without restrictions when distributed and ceases to be publicly
            traded within either of the 60-day periods described above, the
            Employer must notify each holder of the company stock in writing on
            or before the 10th day after the date the company stock ceases to be
            publicly traded that for the remainder of the applicable 60-day
            period the company stock is subject to the put option. The number of
            days between the 10th day and the date on which notice is actually
            given, if later than the 10th day, must be added to the duration of
            the put option. The notice must inform distributees of the term of
            the put options that they are to hold. The terms must satisfy the
            requirements of this
<PAGE>
                                       4

            paragraph.

                  The put option is exercised by the holder by notifying the
            Employer in writing that the put option is being exercised. The
            notice must state the name and address of the holder and the number
            of shares to be sold. When written notification from the holder is
            received, the Employer will immediately inform the administrator of
            the notice. The administrator will have 10 days to notify the
            Employer if it wishes the trust fund to assume the rights and
            obligations of the Employer with respect to the required purchase of
            company stock.

                  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. The price at which a put option
            must be exercisable is the fair market value of the company stock,
            as determined by the plan administrator in good faith based on all
            the relevant factors, as of the allocation date coincident with or
            immediately preceding the Employer's receipt of the written
            notification. The total purchase price must be paid to the holder
            within 30 days after the notification. The Employer, however, may
            defer the payments on a reasonable basis, if it gives written notice
            to the holder within the 30 days period. The deferred payments must
            be paid in substantially equal monthly, quarterly, semiannual, or
            annual installments over a period certain beginning not later than
            30 days after the exercise of the put option and not extending
            beyond 5 years. The deferral of payment is reasonable if adequate
            security and a reasonable interest rate on the unpaid amounts are
            provided. The amount to be paid under the put option involving
            installment distributions must be paid not later than 30 days after
            the exercise of the put option. Payment under a put option must not
            be restricted by the provisions of a loan or any other arrangement,
            including the terms of the employer's articles of incorporation,
            unless so required by applicable state law.

                  For purposes of this Section, total distribution means a
            distribution within 1 taxable year to a Participant or his
            beneficiary of the Participant's entire vested account.

                        (3) An arrangement involving the plan that creates a put
            option must not provide for the issuance of put options other than
            as provided under this Section. The plan (and the trust fund) must
            not otherwise obligate itself to acquire company stock from an
            option holder at an indefinite time determined on the happening of
            an event, such as the death of the holder.
<PAGE>
                                       5

            In all other respects, the Plan will remain unchanged.

                                     WILSON GREATBATCH LTD.

      Date: May 31, 1999             By /s/ Larry T. DeAngelo
           ---------------------        ------------------------------<PAGE>

--------------------------------------------------------------------------------

                                                                    Exhibit 10.4

                     WILSON GREATBATCH LTD. EQUITY PLUS PLAN

                                STOCK BONUS PLAN

                                    Effective
                                 January 1, 1998

--------------------------------------------------------------------------------

<PAGE>

                                Table of Contents
--------------------------------------------------------------------------------

ARTICLE I DEFINITIONS                                                          1
 Section 1.1 References                                                        1
 Section 1.2 Compensation                                                      1
 Section 1.3 Dates                                                             2
 Section 1.4 Employee                                                          2
 Section 1.5 Employer                                                          4
 Section 1.6 Fiduciaries                                                       4
 Section 1.7 Participant/Beneficiary                                           5
 Section 1.8 Participant Accounts                                              5
 Section 1.9 Plan                                                              5
 Section 1.10 Service                                                          5
 Section 1.11 Trust                                                            6
 Section 1.12 Stock Bonus Specific Definitions                                 6

ARTICLE II PARTICIPATION                                                       8
 Section 2.1 Eligibility Service                                               8
 Section 2.2 Plan Participation                                                8
 Section 2.3 Termination of Participation                                      9
 Section 2.4 Re-Participation (Break In Service Rules)                         9

ARTICLE III ALLOCATIONS TO PARTICIPANT ACCOUNTS                               10
 Section 3.1 General Provisions                                               10
 Section 3.2 Allocation of Contributions and Forfeitures                      11
 Section 3.3 Rollover/Transfer Account                                        12
 Section 3.4 Allocation of Investment Results                                 12

ARTICLE IV PAYMENT OF PARTICIPANT ACCOUNTS                                    14
 Section 4.1 Vesting Service Rules                                            14
 Section 4.2 Vesting of Participant Accounts                                  14
 Section 4.3 Payment of Participant Account                                   17
 Section 4.4 Form of Distribution                                             21
 Section 4.5 In-Service Payments                                              21
 Section 4.6 Distributions under Domestic Relations Orders                    21

                                       i
<PAGE>

                                Table of Contents
--------------------------------------------------------------------------------

ARTICLE V ADDITIONAL QUALIFICATION RULES                                       1
 Section 5.1 Limitations on Allocations under Code Section 415                 1
 Section 5.2 Joint and Survivor Annuity Requirements                           6
 Section 5.3 Distribution Requirements                                         8
 Section 5.4 Top-Heavy Provisions                                             11

ARTICLE VI ADMINISTRATION OF THE PLAN                                         16
 Section 6.1 Fiduciary Responsibility                                         16
 Section 6.2 Plan Administrator                                               17
 Section 6.3 Claims Procedure                                                 19
 Section 6.4 Trust Fund                                                       19
 Section 6.5 Investment Policy                                                20
 Section 6.6 Valuation of the Trust Fund                                      21
 Section 6.7 Voting Company Stock                                             21
 Section 6.8 Current Obligations                                              22

ARTICLE VII AMENDMENT AND TERMINATION OF PLAN                                 23
 Section 7.1 Right to Discontinue and Amend                                   23
 Section 7.2 Amendments                                                       23
 Section 7.3 Protection of Benefits in Case of Plan Merger                    24
 Section 7.4 Termination of Plan                                              24

ARTICLE VIII MISCELLANEOUS PROVISIONS                                         25
 Section 8.1 Exclusive Benefit -- Non-Reversion                               25
 Section 8.2 Inalienability of Benefits                                       25
 Section 8.3 Employer-Employee Relationship                                   26
 Section 8.4 Binding Agreement                                                26
 Section 8.5 Separability                                                     26
 Section 8.6 Construction                                                     26
 Section 8.7 Copies of Plan                                                   26
 Section 8.8 Interpretation                                                   26
 Section 8.9 Securities and Exchange Commission Approval                      26

                                       ii
<PAGE>

                     WILSON GREATBATCH LTD. EQUITY PLUS PLAN
                                STOCK BONUS PLAN

      This plan, executed on the date indicated at the end hereof, is made
effective as of January 1, 1998, by Wilson Greatbatch Ltd., a Corporation, with
its principal office located in Clarence, New York.

                              W I T N E S S E T H :

      WHEREAS, the Employer desires to establish a permanent qualified employee
stock ownership plan for its employees in order to enable its employees to share
in the growth and prosperity of the Corporation and to provide its employees and
their beneficiaries with financial security in the event of retirement,
disability or death; and

      WHEREAS, the Employer intends to establish a money purchase plan to be
hereinafter called the Wilson Greatbatch Ltd. Equity Plus Plan - Money Purchase
Plan to constitute an employee stock ownership plan in conjunction with the plan
established hereunder;

      NOW THEREFORE, the premises considered, the following are the provisions
of the qualified plan of the Employer.

<PAGE>

                              ARTICLE I DEFINITIONS

Section 1.1 References

      (a) Code means the Internal Revenue Code of 1986, as it may be amended
from time to time.

      (b) ERISA means the Employee Retirement Income Security Act of 1974, as
amended.

Section 1.2 Compensation

      (a) Compensation means, except as provided in paragraph (b) hereof, any
earnings reportable as W-2 wages for Federal income tax withholding purposes
plus elective contributions for the plan year.

      Elective contributions are amounts excludible from the employee's Federal
taxable income and contributed by the Employer, at the employee's election to:

      (1) A cafeteria plan (excludible under Code Section 125);
      (2) A Code Section 401(k) arrangement (excludible under Code Section
          402(e)(3));
      (3) A simplified employee pension (excludible under Code
          Section 402(h)); or
      (4) A tax sheltered annuity (excludible under Code Section 403(b)).

      Any reference in this plan to compensation shall be a reference to the
definition in this Section 1.2, unless the plan reference specifies a
modification to this definition. The plan administrator shall take into account
only compensation actually paid by the Employer for the relevant period. A
compensation payment includes compensation by the Employer through another
person under the common paymaster provisions in Code Sections 3121 and 3306.
Compensation from a related Employer which is not a participating Employer under
this plan shall he excluded.

      (b) Exclusions From Compensation - Notwithstanding the provisions of
paragraph 1.2(a), the following types of remuneration shall be excluded from the
Participant's compensation:

      Bonuses

      Compensation received during the current plan year which was considered
deferred compensation in a prior plan year.

      Moving Expense Payment

      SAR Payments

      Contributions to or benefits from this plan.

      Educational Assistance Payments

      Referral Payments

      Taxable Fringe Benefits (Auto, Group Term Life)

                                      A-1
<PAGE>

      (c) Limitations on Compensation - For any plan year beginning after
December 31, 1993, the plan administrator shall take into account only the first
$150,000 (or beginning January 1, 1995, such larger amount as the Commissioner
of Internal Revenue may prescribe) of any Participant's compensation for
determining all benefits provided under the plan. The compensation dollar
limitation for a plan year shall be the Limitation amount in effect on January 1
of the calendar year in which the plan year begins. If the plan should determine
compensation on a period of time that contains fewer than 12 calendar months
(such as for a short plan year), the annual compensation dollar limitation shall
be an amount equal to the compensation dollar limitation for the plan year
multiplied by the ratio obtained by dividing the number of full months in the
period by 12.

      (d) Compensation for Nondiscrimination Test - For purposes of determining
whether the plan discriminates in favor of highly compensated employees,
compensation means compensation as defined in this Section 1.2(a), except that
the Employer will not give effect to any exclusion from compensation specified
in Section 1.2(b). Notwithstanding the above, the Employer may elect to exclude
from this nondiscrimination definition of compensation any items of compensation
excludable under Code Section 414(s) and the applicable Treasury regulations,
provided such adjusted definition conforms to the nondiscrimination requirements
of those regulations.

Section 1.3 Dates

      (a) Accounting Date means the date(s) on which investment results are
allocated to Participants' accounts, including the allocation date and any
interim accounting date(s) noted below:

      There shall be a one-time special accounting and allocation date of March
12, 1998.

      (b) Allocation Date means the last day of each plan year which is the date
on which any contributions are allocated to Participants' accounts.

      (c) The Effective Date of the plan is January 1, 1998.

      (d) Plan Entry Date means the participation date(s) specified in Article
II.

      (e) Plan Year means the 12-consecutive month period beginning on January 1
andending on December 31.

      (f) Limitation Year (for purposes of limitations on benefits and
contributions under Code Section 415) means the plan year.

Section 1.4 Employee

      (a) (1) Employee means any person employed by the Employer. The term
employee shall include any employee of the Employer maintaining the plan or of
any other Employer required to be aggregated with such Employer under Code
Sections 414(b), (c), (m) or (o). The term employee shall also include any
leased employee deemed to be an employee of any Employer as provided in Code
Sections 414(n) or (o) and as defined in paragraph (2).

                                      A-2
<PAGE>

      (2) Leased Employee means an individual (who otherwise is not an employee
of the Employer) who, pursuant to a leasing agreement between the Employer and
any other person, has performed services for the Employer (or for the Employer
and any persons related to the Employer within the meaning of Code Section
414(n)(6)) on a substantially full time basis for at least one year; and such
services are performed under the primary direction or control of the Employer.
If a leased employee is treated as an employee by reason of this Section 1
 .4(a)(2), compensation from the leasing organization which is attributable to
services performed for the Employer shall be considered as compensation under
the plan. Contributions or benefits provided a leased employee by the leasing
organization which are attributable to services performed for the Employer shall
be treated as provided by the Employer.

      Safe harbor plan exception - The plan shall not treat a leased employee as
an employee if the leasing organization covers the employee in a safe harbor
plan and, prior to application of this safe harbor plan exception, 20% or less
of the Employer's employees (other than highly compensated employees) are leased
employees. A safe harbor plan is a money purchase pension plan providing
immediate participation, full and immediate vesting, and a nonintegrated
contribution formula equal to at least 10% of the employee's compensation
without regard to employment by the leasing organization on a specified date.
The safe harbor plan must determine the 10% contribution on the basis of
compensation as defined in Code Section 415(c)(3) plus elective contributions.

      (b) Highly Compensated Employee means any employee who:

            (1) was a more than 5% owner of the Employer (applying the
constructive ownership rules of Code Section 318, and applying the principles of
Code Section 318, for an unincorporated entity) at any time during the current
or the preceding year; or

            (2) for the preceding year -

                  (A) had compensation from the Employer in excess of $80,000
(as adjusted by the Secretary of the Treasury pursuant to Code Section 415(d),
except that the base period shall be the calendar quarter ending September 30,
1996), and

                  (B) if the Employer elects the application of this clause for
such preceding year, was in the top-paid group of employees for such preceding
year. For this purpose, an employee is in the top-paid group of employees for
any year if such employee is in the group consisting of the top 20% of the
employees when ranked on the basis of compensation paid during such year.

      The term highly compensated employee also includes any former employee who
separated from service (or has a deemed separation from service, as determined
under Treasury regulations) prior to the plan year, performs no service for the
Employer during the plan year, and was a highly compensated employee either for
the separation year or any plan year ending on or after his 55th birthday, based
on the applicable rules in effect for such plan year.

      For purposes of determining who is a highly compensated employee under
this Section 1.4(b), compensation means compensation as defined in Section
5.1(d)(2). The plan administrator shall make the determination of who is a
highly compensated employee, and, if the Employer so elects, this determination
shall include the determination of the number and identity of the top-paid 20%
group, consistent with Code Section 414(q) and

                                      A-3
<PAGE>

regulations issued under that Code Section. The Employer may make a calendar
year data election with regard to the year preceding the current plan year to
determine the employees with compensation in excess of $80,000 and the top-paid
20% group, as prescribed by Treasury regulations. A top-paid 20% group election
or a calendar year data election must apply to all plans and arrangements of the
Employer.

Section 1.5 Employer

      Employer means Wilson Greatbatch Ltd., or any successor entity by merger,
purchase, consolidation, or otherwise; or an organization affiliated with the
Employer which may assume the obligations of this plan with respect to its
employees by becoming a party to this plan. Another Employer whether or not it
is affiliated with the sponsor Employer may adapt this plan to cover its
employees by filing with the sponsor Employer a written resolution adopting the
plan, upon which the sponsor Employer shall indicate its acceptance of such
Employer as an Employer under the plan. Each such Employer shall be deemed to be
the Employer only as to persons who are on its payroll.

      The following Employer(s) have adopted this plan and been accepted as a
participating Employer:

               Employer                               Effective Date
               --------                               --------------

         Greatbatch-Hittman, Inc.                        1-1-1999

Section 1.6 Fiduciaries

      (a) Named Fiduciary means the person or persons having fiduciary
responsibility for the management and control of plan assets.

      (b) Plan Administrator means the person or persons appointed by the named
fiduciary to administer the plan.

      (c) Trustee means the trustee named in the trust agreement executed
pursuant to this plan, or any duly appointed successor trustee.

      (d) Investment Manager means a person or corporation other than the
trustee appointed for the investment of plan assets:

            (1) who has the power to manage acquire or dispose of any asset of
the Plan;

            (2) who is registered as an investment adviser under the Investment
Advisors Act of 1940, a bank as defined in such Act, or an insurance company
qualified to perform services described in (1) above under the laws of more than
one state; and

            (3) who has acknowledged in writing that he or she is a fiduciary
with respect to the Plan.

                                      A-4
<PAGE>

Section 1.7 Participant/Beneficiary

      (a) Participant means an eligible employee of the Employer who becomes a
member of the plan pursuant to the provisions of Article II, or a former
employee who has an accrued benefit under the plan.

      (b) Beneficiary means a person designated by a Participant who is or may
become entitled to a benefit under the plan. A beneficiary who becomes entitled
to a benefit under the plan remains a beneficiary under the plan until the
trustee has fully distributed his benefit to him. A beneficiary's right to (and
the plan administrator's, or a trustee's duty to provide to the beneficiary)
information or data concerning the plan shall not arise until he first becomes
entitled to receive a benefit under the plan.

Section 1.8 Participant Accounts

      (a) Employer Contribution Account means the balance of the separate
account derived from Employer contributions, including forfeitures (if any).
(See Section 3.2.)

      (b) Rollover/Transfer Account means the balance of the separate account
derived from rollover contributions and/or transfer contributions. (See Section
3.3.)

      (c) Accrued Benefit means the Participant's account balance(s) as of the
accounting date falling on or before the day on which the accrued benefit is
being determined.

Section 1.9 Plan

      Plan means Wilson Greatbatch Ltd. Equity Plus Plan - Stock Bonus Plan as
set forth herein and as it may be amended from time to time.

Section 1.10 Service

      (a) Service means any period of time the employee is in the employ of the
employer, including any period the employee is on an unpaid leave of absence
authorized by the employer under a uniform, nondiscriminatory policy applicable
to all employees. Separation from service means that the employee no longer has
an employment relationship with the employer.

      (b) Hour of Service means each hour for which an employee is paid or
entitled to payment for the performance of duties for the employer.

      (c) Break in Service means a period of severance of at least 12
consecutive months.

      (d)   (1) Period of Severance means a continuous period of time during
which the employee is not employed by the employer and is not credited with an
hour of service. Such period begins on the date the employee retires, terminates
service, or if earlier, the 12 month anniversary of the date on which the
employee was otherwise first absent from service. An employee shall receive
credit for any period of severance of less than 12 consecutive months.

                                      A-5
<PAGE>

            (2) In the case of an individual who is absent from work for
maternity or paternity reasons, the 12-consecutive month period beginning on the
first anniversary of the first date of such absence shall not constitute a break
in service. For purposes of this paragraph, an absence from work for maternity
or paternity reasons means an absence: (i) by reason of the pregnancy of the
individual, (ii) by reason of a birth of a child of the individual, (iii) by
reason of the placement of a child with the individual in connection with the
adoption of such child by such individual, or (iv) for purposes of caring for
such child for a period beginning immediately following such birth or placement.

      (e) Other Service Credited - If the employer is a member of an affiliated
service group (under Code Section 414(m)), a controlled group of corporations
(under Code Section 414(b)). or a group of trades or businesses under common
control (under Code Section 414(c)), or any other entity required to be
aggregated with the employer pursuant to Code Section 414(o), service shall be
credited for any employment for any period of time for any other member of such
group. Service shall also be credited for any leased employee who is considered
an employee for purposes of this plan under Code Section 414(n) or (o).

      (f)   (1) Year of Service means a 12-consecutive month period of service
during which the employee does not incur a break in service.

            (2) Crediting Years of Service - Generally, no service shall be
credited for periods during which the employee performs no services for the
employer. Further, no more than one year of service will be credited for any 12
consecutive-month period unless otherwise required by Code Section 410 or 411.

            (3) Predecessor Service - Service as an employee of
Greatbatch-Hittman, Inc. shall be credited as service under the plan for the
purposes of eligibility and vesting.

      (g) Qualified Military Service - Notwithstanding any provision of this
plan to the contrary, contributions, benefits, and service credit with respect
to qualified military service will be provided in accordance with Code Section
414(u).

Section 1.11 Trust

      (a) Trust means the qualified trust created under the Employer's plan.

      (b) Trust Fund means all property held or acquired by the plan.

Section 1.12 Stock Bonus Specific Definitions

      (a) ESOP means an employee stock ownership plan. For the purpose of this
plan, an employee stock ownership plan means two defined contribution plans one
of which is a stock bonus plan and the other of which is a money purchase plan
where both plans are qualified under Code Section 401(a), are designed to invest
primarily in qualifying Employer securities, and satisfy the regulatory
requirements prescribed by the Secretary of the Treasury.

      (b) Company Stock means common stock issued by the Employer (or by a
corporation which is a member of the controlled group of corporations of which
the Employer is a member) which is readily tradable on an established securities
market. If

                                      A-6
<PAGE>

there is no common stock which meets the foregoing requirement, the term company
stock means common stock issued by the Employer (or by a corporation which is a
member of the same controlled group) having a combination of voting power and
dividend rights equal to or in excess of: (A) that class of common stock of the
Employer (or of any other such corporation) having the greatest voting power,
and (B) that class of stock of the Employer (or of any other such corporation)
having the greatest dividend rights. Noncallable preferred stock shall be deemed
to be company stock if such stock is convertible at any time into stock which
constitutes company stock hereunder and if such conversion is at a conversion
price which (as of the date of the acquisition by the trust) is reasonable. For
purposes of the preceding sentence, pursuant to Code regulations, preferred
stock shall be treated as noncallable if after the call there will be a
reasonable opportunity for a conversion which meets the requirements of the
preceding sentence.

      (c) Investment Accounts - For investment purposes, a Participant's
accounts may be placed in three accounts as described herein.

            (1) Company Stock Account means the investment account of a
Participant which is credited with the shares of company stock purchased and
paid for by the trust fund or contributed to the trust fund.

            (2) Other Investment Account means the investment account of a
Participant which is credited with his share of the net gain (or loss) of the
plan, forfeitures, and Employer contributions in other than company stock and
which is debited with payments made to pay for company stock.

            (3) Directed Investment Account means the investment account of a
Participant which he elects under the provisions of Section 3.4(c) and which is
credited with the net gain (or loss) on his directed investments.

                                      A-7
<PAGE>

                            ARTICLE II PARTICIPATION

Section 2.1 Eligibility Service

      For purposes of determining an employee's initial or continued eligibility
to participate in the plan, an employee shall receive credit for the aggregate
of all time periods commencing with the employee's first day of employment or
reemployment and ending on the date a break in service begins, except for
periods of service disregarded under Section 2.4. The first day of employment or
reemployment is the first day the employee performs an hour of service.
Fractional periods of a year will be expressed in terms of days.

Section 2.2 Plan Participation

      (a) Eligibility

            (1) Age/service requirements - An employee who is a member of the
eligible class of employees shall be immediately eligible for plan
participation.

            (2) Eligible class of employees - All employees of the Employer
shall be eligible to be covered under the plan except for employees in the
following categories:

                  - Employees included in a unit of employees covered by a
collective bargaining agreement between the Employer and employee
representatives if retirement benefits were the subject of good faith bargaining
and if less than two percent of the employees of the Employer who are covered
pursuant to that agreement are professionals as defined in Regulation Section
1.410(b)-9(g). For this purpose, the term "employee representatives" does not
include any organization more than half of whose members are employees who are
owners, officers or executives of the Employer.

                  - Leased employees who are considered employees under the
plan, unless such exclusion would cause the plan to fail to satisfy the
participation test or the coverage test of Code Section 410 or the
nondiscrimination requirements of Code Section 401(a)(4).

                  - Interns

                  - Cooperative Student Program Participants

      (b) Entry Date - An eligible employee shall participate in the plan on the
December 31 entry date coinciding with or immediately following the date of his
employment. If an employee who is not a member of the eligible class of
employees becomes a member of the eligible class, such employee shall
participate immediately, if he would have otherwise previously become a
Participant.

      (c) Initial Eligibility Requirement and Entry Date for First Plan Year

      Notwithstanding the preceding, any employee who is a member of the
eligible class of employees and who was employed by the Employer on January 5,
1998 shall participate in

                                      A-8
<PAGE>

the plan as of March 12, 1998, regardless of credited service, provided the
person remains employed as of such entry date.

Section 2.3 Termination of Participation

      A Participant shall continue to be an active Participant of the plan so
long as he is a member of the eligible class of employees and he does not incur
a one-year break in service due to termination of employment. He shall become an
inactive Participant when he incurs a one-year break in service due to
termination of employment, or at the end of the plan year during which he ceases
to be a member of the eligible class of employees. He shall cease participation
completely upon the later of his receipt of a total distribution of his
nonforfeitable account balance under the plan or the forfeiture of the nonvested
portion of the account balance.

Section 2.4 Re-Participation (Break In Service Rules)

      (a) Vested Participant - A former Participant who had a nonforfeitable
right to all or a portion of his account balance derived from Employer
contributions at the time of his termination from service shall become a
Participant immediately upon returning to the employ of the Employer, if he is a
member of the eligible class of employees.

      (b) Nonvested Participant - In the case of a former Participant who did
not have any nonforfeitable right to his account balance derived from Employer
contributions at the time of his termination from service, years of service
before a period of consecutive one-year breaks in service shall not be taken
into account in computing service if the number of consecutive one-year breaks
in service in such period equals or exceeds the greater of 5 or the aggregate
number of years of service before such breaks in service. Such aggregate number
of years of service shall not include any years of service disregarded under the
preceding sentence by reason of prior breaks in service.

      If such former Participant's years of service before termination from
service are disregarded pursuant to the preceding paragraph, he shall be
considered a new employee for eligibility purposes. If such former Participant's
years of service before termination from service may not be disregarded pursuant
to the preceding paragraph, he shall participate immediately upon returning to
the employ of the Employer, if he is a member of the eligible class of
employees.

      (c) Return to Eligible Class - If a Participant becomes an inactive
Participant, because he is no longer a member of the eligible class of
employees, but does not incur a break in service; such inactive Participant
shall become an active Participant immediately upon returning to the eligible
class of employees. If such Participant incurs a break in service, eligibility
shall be determined under the re-participation rules in paragraphs (a) and (b)
above.

                                      A-9
<PAGE>

                 ARTICLE III ALLOCATIONS TO PARTICIPANT ACCOUNTS

Section 3.1 General Provisions

      (a) Maintenance of Participant Accounts - The plan administrator shall
maintain one or more separate accounts covering each Participant under the plan.
Such account(s) shall be increased by contributions, investment income, and
market value appreciation of the fund. It shall be decreased by market value
depreciation of the fund, forfeiture of nonvested amounts, benefit payments,
withdrawals and expenses.

      (b) Amount and Payment of Employer Contribution

            (1) Amount of Contribution - For each plan year, the Employer
contribution to the plan shall be the amount which is determined under the
provisions of this Article and Section 6.9. The Employer may not make a
contribution to the plan for any plan year to the extent the contribution would
exceed fifteen percent of the aggregate Participant compensation (as defined in
Code Section 415(c)(3)) for the plan year. Further, the Employer contribution
shall not exceed the maximum amount deductible under Code Section 404.

      The Employer contributes to this plan on the conditions that its
contribution is not due to a mistake of fact and that the Internal Revenue
Service will not disallow the deduction for its contribution. The trustee, upon
written request from the Employer, shall return to the Employer the amount of
the Employer's contribution made due to a mistake of fact or the amount of the
Employer's contribution disallowed as a deduction under Code Section 404. The
trustee shall not return any portion of the Employer's contribution under the
provisions of this paragraph more than one year after the earlier of: (A) The
date on which the Employer made the contribution due to a mistake of fact; or
(B) The time of disallowance of the contribution as a deduction, and then, only
to the extent of the disallowance. The trustee will not increase the amount of
the Employer contribution returnable under this Section for any earnings
attributable to the contribution, but the trustee will decrease the Employer
contribution returnable for any losses attributable to it. The trustee may
require the Employer to furnish whatever evidence it deems necessary to confirm
that the amount the Employer has requested be returned is properly returnable
under ERISA.

            (2) Payment of Contribution - The Employer shall make its
contribution to the plan in cash or company stock within the time prescribed by
the Code or applicable Treasury regulations. Subject to the consent of the
trustee, the Employer may make its contribution in other property, provided the
contribution of such property is not a prohibited transaction under the Code or
ERISA. Company stock and other property will be valued at their then fair market
value.

      (c) Limitations and Conditions - Notwithstanding the allocation procedures
set forth in this Article, the allocations to Participants' accounts shall be
limited or modified to the extent required to comply with the provisions of
Article V (limitations on allocations under Code Section 415 and top heavy
provisions under Code Section 416).

      In any limitation year in which the allocation to one or more
Participants' accounts would be in excess of the limitations on allocations
under Code Section 415, the annual

                                      A-10
<PAGE>

additions under this plan will be reduced to the extent necessary to comply with
such limitations first. If further reduction is required, the annual additions
under the Wilson Greatbatch Ltd. Equity Plus Plan - Money Purchase Plan will be
reduced with respect to such Participants. Finally, if further reduction is
required, annual additions under the Wilson Greatbatch Ltd. Equity Plus Plan -
401(k) Retirement Plan (formerly the Wilson Greatbatch Ltd. Profit Sharing
Retirement Plan) will be reduced with respect to such participants.

Section 3.2 Allocation of Contributions and Forfeitures

      (a) Amount of Contribution - The Employer shall determine, in its sole
discretion, the amount of Employer contribution to be made to the plan each
year; provided, however, that the Employer shall contribute such amount as may
be required for restoration of a forfeited amount under Section 4.2.

      (b) Conditions for Allocations - An active Participant shall be eligible
for an allocation of the Employer contribution and forfeitures as of an
allocation date, provided that he satisfies the following conditions:

            (1) He completed at least one (1) hour of service during the current
plan year.

                                       AND

            (2) He is employed by the Employer on the last day of the plan year,
unless his employment terminated during the plan year by reason of retirement,
disability, or death.

      Notwithstanding the above conditions for allocation of contributions, if
the plan would otherwise fail to satisfy the participation test or coverage test
of Code Section 410 or the nondiscrimination requirements of Code Section
401(a)(4), the plan administrator shall amend the plan in a nondiscriminatory
manner to provide for the participation of additional employees and/or to cause
additional active Participants to be eligible for an allocation.

      (c)   (1) Allocation Formula

                (A) Effective for allocations made on or after December 31,
1998, the Employer contribution and forfeitures for the plan year shall be
allocated to the account of each eligible Participant in the ratio that such
Participant's compensation bears to the compensation of all Participants.

                (B) There shall be a special allocation as of March 12, 1998.
The Employer contribution of company stock made with respect to this allocation
date shall be allocated to the account of each Participant who participated as
of March 12, 1998 as follows:

                                      A-11
<PAGE>

                                  Vesting Years of
                                     Service                Number of Shares
                                  ----------------          ----------------

                                      0 - 4.99                   100
                                      5 - 9.99                   200
                                     10 - 14.99                  300
                                     15 - 19.99                  400
                                     20 - 24.99                  500
                                  25 or More Years               600

      However, the amount allocated to a Participant who is a reduced schedule
employee shall be proportionately reduced based upon his hours of service
credited for the 1997 calendar year as compared to 1,000 hours of service.

            (2) Top-Heavy Plan Years

      In any year in which this plan is top-heavy (as defined in Section
5.4(e)(2)) when aggregated with the Wilson Greatbatch Ltd. Equity Plus Plan -
401(k) Retirement Plan and the Wilson Greatbatch Ltd. Equity Plus Plan - Money
Purchase Plan which the Employer also sponsors, the top-heavy minimum benefit
requirement shall be met under the Wilson Greatbatch Ltd. Equity Plus Plan -
Money Purchase Plan.

      If a Participant only participates in this plan, his account will receive
an allocation that is not less than an amount equal to 3% of such Participant's
compensation.

            (3) Compensation - For purposes of the allocation of the Employer
contribution, compensation means compensation as defined in Section 1.2 for the
entire plan year.

Section 3.3 Rollover/Transfer Account

      Rollover and transfer contributions shall not be permitted under this plan
and no amount shall be credited to the rollover/transfer account.

Section 3.4 Allocation of Investment Results

      (a) Company Stock Account - The company stock account of each Participant
shall be credited as of each allocation date with forfeitures of company stock
and his allocable share of company stock (including fractional shares) purchased
and paid for by the plan or contributed in kind by the Employer. Stock dividends
on company stock held in his company stock account shall be credited to his
company stock account when paid.

      (b) Other Investments Account - As of each allocation date, prior to the
allocation of Employer contributions and forfeitures, any earnings or losses
(net appreciation or net depreciation) of the trust fund shall be allocated in
the same proportion that each Participant's other investments account bears to
the total of all Participants' other investment accounts as of such date. For
this purpose, each account balance shall be equal to the average balance for the
period commencing on the day following the prior accounting date and ending on
the current accounting date.

                                      A-12
<PAGE>

      Cash dividends on company stock allocated to each Participant's other
investments account after the first month of the plan year shall not share in
any earnings or losses of the trust fund for such year. However, the
administrator may direct that cash dividends on company stock be segregated into
a separate account for each Participant in a federally insured savings account,
certificate of deposit in a bank or savings and loan association, money market
certificate, or other short term debut security acceptable to the trustee until
such time as the allocations pursuant to this plan have been made, at which time
they may remain segregated or be invested as part of the general trust fund, or
such cash dividends may be distributed pursuant to Section 4.3(c)(6).

      Earnings or losses include the increase (or decrease) in the fair market
value of assets of the trust fund (other than company stock in the Participants'
company stock accounts) since the preceding allocation date.

      (c) Directed Investment Account

            (1) Each qualified Participant may elect within ninety (90) days
after the close of each plan year during the qualified election period to direct
the trustee in writing as to the investment of 25 percent of the total number of
shares of company stock that have ever been allocated to such qualified
Participant's company stock account (reduced by the number of shares of company
stock previously invested pursuant to a prior election). In the case of the
election year in which the Participant can make his last election, the preceding
sentence shaft be applied by substituting "50 percent" for "25 percent." If the
qualified Participant elects to direct the trustee as to the investment of his
company stock account, such direction shall be effective no later than 180 days
after the close of the plan year to which such direction applies.

      Notwithstanding the above, if the fair market value (determined pursuant
to Section 6.7(b) at the plan valuation date immediately preceding the first day
on which a qualified Participant is eligible to make an election) of company
stock acquired by or contributed to the plan and allocated to a qualified
Participant's company stock account is $500 or less, then such company stock
shall not be subject to this paragraph. For purposes of determining whether the
fair market value exceeds $500, company stock held in accounts of all employee
stock ownership plans (as defined in Code Section 4975(e)(7)) and tax credit
employee stock ownership plans (as defined in Code Section 409(a)) maintained by
the Employer or any affiliated Employer shall be considered as held by the plan.

            (2) For the purposes of this Section the following definitions shall
apply:

                  (A) Qualified Participant means any Participant who has
completed ten years of participation as a Participant in this plan and has
attained age 55.

                  (B) Qualified election period means the six plan year period
beginning with the first plan year in which the Participant first became a
qualified Participant.

            (3) If a qualified Participant elects to direct the investment of
his company stock account, the trustee shall convert the designated amount of
company stock to its fair market value cash equivalent and shall transfer such
cash value to the Participant's rollover/transfer account in the Wilson
Greatbatch Ltd. Equity Plus Plan - 401(k) Retirement Plan which the Employer
also sponsors (or its successor plan) where said account shall be subject to the
Participant's investment direction.

                                      A-13
<PAGE>

                   ARTICLE IV PAYMENT OF PARTICIPANT ACCOUNTS

Section 4.1 Vesting Service Rules

      (a) Vesting Year of Service - For purposes of determining the
nonforfeitable interest in the Participant's account balance, the Participant
shall receive credit for the aggregate of all time periods commencing with the
Participant's first day of employment or reemployment and ending on the date a
break in service begins, except for periods of service disregarded below. The
first day of employment or reemployment is the first day the Participant
performs an hour of service. Fractional periods of a year will be expressed in
terms of days. One vesting year of service shall be credited for each 12 month
period.

      (b) Break in Service Rules

            (1) Vested Participant - A former Participant who had a
nonforfeitable right to all or a portion of his account balance derived from
Employer contributions at the time of his termination from service shall retain
credit for all vesting years of service prior to a break in service.

            (2) Nonvested Participant - In the case of a former Participant who
did not have any nonforfeitable right to his account balance derived from
Employer contributions at the time of his termination from service, years of
service before a period of consecutive one year breaks in service shall not be
taken into account in computing service if the number of consecutive one year
breaks in service in such period equals or exceeds the greater of 5 or the
aggregate number of years of service before such breaks in service. Such
aggregate number of years of service shall not include any years of service
disregarded under the preceding sentence by reason of prior breaks in service.

            (3) Vesting for Pre-Break and Post-Break Accounts - In the case of a
Participant who has 5 or more consecutive one-year breaks in service, all years
of service after such breaks in service shall be disregarded for the purpose of
vesting the Employer-derived account balance that accrued before such breaks in
service. Whether or not such Participant's pre-break service counts in vesting
the post-break Employer-derived account balance shall be determined according to
the rules set forth in sub-paragraphs (1) and (2) above. Separate accounts shall
be maintained for the Participant's pre-break and post-break Employer-derived
account balance. Both accounts shall share in the investment earnings and losses
of the fund.

Section 4.2 Vesting of Participant Accounts

      (a) Determination of Vesting

            (1) Normal Retirement - A Participant's right to his account balance
shall be 100% vested and nonforfeitable upon the attainment of age 59 1/2 or the
fifth anniversary of participation, if later. If the Employer enforces a
mandatory retirement age, the normal retirement age shall be the lesser of the
mandatory age or the age specified herein.

            (2) Late Retirement - If a Participant remains employed after his
normal retirement age, his account balance shall remain 100% vested and
nonforfeitable. Such

                                      A-14
<PAGE>

Participant shall continue to receive allocations to his account as he did
before his normal retirement age.

            (3) Early Retirement - Not applicable.

            (4) Disability - If a Participant separates from service due to
disability, such Participant's right to his account balance as of his date of
disability shall be 100% vested and nonforfeitable. Disability means inability
to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or which has lasted or can be expected to last for a continuous period of
not less than 12 months. The permanence and degree of such impairment shall be
supported by medical evidence. Notwithstanding such definition, a Participant
who is eligible for Social Security disability benefits shall automatically
satisfy the definition of disability. Disability shall be determined by the plan
administrator after consultation with a physician chosen by the administrator.
In the administration of this section, all employees shall be treated in a
uniform manner in similar circumstances.

            (5)   (A) Death - In the event of the death of a Participant who has
an accrued benefit under the plan, (whether or not he is an active Participant).
100% of the Participant's account balance as of the date of death shall be paid
to his surviving spouse; except that, if there is no surviving spouse, or if the
surviving spouse has already consented in a manner which is (or conforms to) a
qualified election under the joint and survivor annuity provisions of Code
Section 417(a) and regulations issued pursuant thereto and as set forth in
Section 5.2. then such balance shall be paid to the Participant's designated
beneficiary.

                  (B) Beneficiary Designation - Subject to the spousal consent
requirements of Section 5.2, the Participant shall have the right to designate
his beneficiaries, including a contingent death beneficiary, and shall have the
right at any time to change such beneficiaries. The designation shall be made in
writing on a form signed by the Participant and supplied by and filed with the
plan administrator. If the Participant fails to designate a beneficiary, or if
the designated person or persons predecease the Participant, "beneficiary" shall
mean the spouse, children, parents, brothers and sisters, or estate of the
Participant, in the order listed.

            (6) Termination From Service

                  (A) On or before the anniversary date coinciding with or
subsequent to the termination of a Participant's employment for any reason other
than retirement, disability or death, the amount of the vested portion of such
Participant's account shall remain in a separate account for the Participant and
share in allocations pursuant to Section 3.4 until such time as a distribution
is made to the Participant.

      If a portion of a Participant's account is forfeited, company stock
allocated to the Participant's company stock account must be forfeited only
after any other investment allocable to the Participant has been depleted. If
interest in more than one class of company stock has been allocated to a
Participant's account, the Participant must be treated as forfeiting the same
proportion of each such class.

                  (B) Effective for a Participant who is employed on or after
January 5, 1998, if such Participant separates from the service of the Employer
other than by retirement, disability, or death, his vested interest in his
Employer contribution account

                                      A-15
<PAGE>

shall be equal to the account balance multiplied by the vesting percentage
determined based on his vesting years of service as follows:

                   Years of Service            Vesting Percentage
                   ----------------            ------------------
                       0 Years                          0%
                          1                            20%
                          2                            40%
                          3                            60%
                          4                            80%
                   5 or More Years                    100%

                  (C) Effective for a Participant who is employed before January
5, 1998, if such Participant separates from the service of the Employer other
than by retirement, disability, or death, his vested interest in his Employer
contribution account shall be 100% immediately vested on the date of his
participation in the plan.

      (b) Cashout Distributions and Restoration

            (1) Cashout Distribution - If an employee terminates service and the
value of his vested account balance derived from Employer and employee
contributions is not (and have never been) greater than $5,000, the employee
shall receive a distribution of the value of the entire vested portion of such
account balance and the nonvested portion will be treated as a forfeiture. For
purposes of this section, if the value of an employee's vested account balance
is zero, he shall be deemed to have received a distribution of such vested
account balance as of his separation from service.

      If an employee terminates service and the value of his vested account
balance exceeds (or has previously exceeded) $5,000, he may elect to receive the
value of his vested account balance after such termination as provided in
Section 4.3; however, the nonvested portion shall be treated as a forfeiture. If
the employee elects to have distributed less than the entire vested portion of
the account balance derived from Employer contributions, the part of the
nonvested portion that will be treated as a forfeiture is the total nonvested
portion multiplied by a fraction, the numerator of which is the amount of the
distribution attributable to Employer contributions and the denominator of which
is the total value of the vested Employer derived account balance.

            (2) Restoration of Account - If an employee receives a cashout
distribution pursuant to this section and resumes employment covered under this
plan before he incurs 5 consecutive one-year breaks in service, his
Employer-derived account balance shall be restored to the amount on the date of
distribution, if he repays to the plan the full amount of the distribution
attributable to Employer contributions before the earlier of 5 years after the
first date on which he is subsequently re-employed by the Employer, or the date
he incurs 5 consecutive one-year breaks in service following the date of the
distribution. If an employee is deemed to receive a distribution pursuant to
this Section 4.2(b), and he resumes employment covered under this plan before he
incurs 5 consecutive one-year breaks in service, upon the reemployment of such
employee, his Employer-derived account balance will be restored to the amount on
the date of such deemed distribution.

      (c) (1) Forfeitures - If a Participant terminates employment before his
account balance derived from Employer contributions is fully vested, the
nonvested portion of his account shall be forfeited on the earlier of:

                                      A-16
<PAGE>

                  (A) The last day of the vesting computation period in which
the Participant first incurs 5 consecutive one-year breaks in service, or

                  (B) The date the Participant receives his entire vested
accrued benefit.

      If a Participant returns to employment with the Employer, and if the
forfeited amount is restored pursuant to subparagraph (b), then any amount
required to restore such forfeitures shall be deducted from forfeitures
occurring in the plan year of restoration. If forfeitures are insufficient for
the restoration, the Employer may make a contribution to the plan for such plan
year to satisfy the restoration. However, by the end of the plan year following
the plan year of restoration, sufficient forfeitures or Employer contributions
shall be credited to the account to satisfy the restoration.

            (2) Disposition of Forfeitures - Forfeitures first shall be used to
reduce administrative expenses; any remaining forfeitures shall be used to
reduce the Employer contribution for the plan year in which such forfeitures
occur.

      (d) Unclaimed Benefits

            (1) Forfeiture - The plan does not require the trustee or the plan
administrator to search for, or to ascertain the whereabouts of, any Participant
or beneficiary. At the time the Participant's or beneficiary's benefit becomes
distributable under the plan, the plan administrator, by certified or registered
mail addressed to his last known address of record, shall notify any Participant
or beneficiary that he is entitled to a distribution under this plan. If the
Participant or beneficiary fails to claim his distributive share or make his
whereabouts known in writing to the plan administrator within twelve months from
the date of mailing of the notice, the plan administrator shall treat the
Participant's or beneficiary's unclaimed payable accrued benefit as forfeited
and shall reallocate such forfeiture in accordance with Section 4.2(c)(2). A
forfeiture under this paragraph shall occur at the end of the notice period or,
if later, the earliest date applicable Treasury regulations would permit the
forfeiture. These forfeiture provisions apply solely to the Participant's or
beneficiary's accrued benefit derived from Employer contributions.

            (2) Restoration - If a Participant or beneficiary who has incurred a
forfeiture of his accrued benefit under the provisions of this subsection makes
a claim, at any time, for his forfeited accrued benefit, the plan administrator
shall restore the Participant's or beneficiary's forfeited accrued benefit to
the same dollar amount as the dollar amount of the accrued benefit forfeited,
unadjusted for any gains or losses occurring after the date of the forfeiture.
The plan administrator shall make the restoration during the plan year in which
the Participant or beneficiary makes the claim from forfeitures occurring in
that plan year. If forfeitures are insufficient for the restoration, the
Employer shall make a contribution to the plan to satisfy the restoration. The
plan administrator shall direct the trustee to distribute the Participant's or
beneficiary's restored accrued benefit to him not later than 60 days after the
close of the plan year in which the plan administrator restores the forfeited
accrued benefit.

                                      A-17
<PAGE>

Section 4.3 Payment of Participant Account

      (a) Time of Payment

            (1) Commencement of Benefits - Unless the Participant elects
otherwise, distribution of benefits shall begin no later than the 60th day after
the latest of the close of the plan year in which:

                  (A) The Participant attains age 65 (or the plan's normal
retirement age, if earlier);

                  (B) Occurs the 10th anniversary of the year in which the
Participant commenced participation in the plan; or

                  (C) the Participant terminates service with the Employer,
(i.e. late retirement).

      Notwithstanding the foregoing, the failure of a Participant (and spouse
where the spouse's consent is required) to consent to a distribution while a
benefit is immediately distributable, within the meaning of Section 5.2(b),
shall be deemed to be an election to defer commencement of payment of any
benefit sufficient to satisfy this section.

            (2) Payment Upon Retirement, Disability, or Death - Subject to the
provisions set forth in subparagraph (1) and in the Distribution Requirements of
Section 5.3, if the Participant terminates employment due to retirement,
disability or death, his account shall be paid as soon as administratively
possible after the occurrence of the event creating the right to a distribution.

            (3) Payment Upon Other Termination of Employment - Subject to the
provisions set forth in subparagraph (1) and in the Distribution Requirements of
Section 5.3, if the Participant terminates employment other than by retirement,
disability or death, his account shall be paid within a reasonable period after
the end of the plan year in which severance occurs.

      (b) Distribution of Benefits

            (1) Subject to Section 4.3(b)(3), the administrator, pursuant to the
written election of the Participant (or if no election has been made prior to
the Participant's death, by his beneficiary), shall direct the trustee to
distribute to a Participant or his beneficiary any amount to which he is
entitled under the plan in one of the following methods:

                  (A) One lump-sum payment.

                  (B) Payments over a period certain in monthly, quarterly,
semiannual, or annual installments. The period over which such payment is to be
made shall not extend beyond the earlier of the Participant's life expectancy
(or the life expectancy of the Participant and his designated beneficiary) or
the limited distribution period provided for in (3) below. Such life expectancy
to be determined by Internal Revenue Service Life Expectancy Tables (currently
in IRS Publication 590).

                                      A-18
<PAGE>

            (2) Any payment meeting the requirements of an eligible rollover
distribution may be paid directly in a direct rollover at the election of the
distributee, at the time and in the manner provided by the plan administrator,
to an eligible retirement plan specified by the distributes.

                  (A) Eligible Rollover Distribution - An eligible rollover
distribution is 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
expectancy of the distributee or the 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 Code Section 401(a)(9); the portion of any distribution that is not
includible in gross income (determined without regard to the exclusion for net
unrealized appreciation with respect to Employer securities) and dividends paid
on Employer securities as described in Code Section 404(k).

                  (B) Eligible Retirement Plan - An eligible retirement plan is
an individual retirement account described in Code Section 408(a), an individual
retirement annuity described in Code Section 408(b), an annuity plan described
in Code Section 403(a), or a qualified trust described in Code Section 401(a),
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.

                  (C) Distributee - A distributee includes an employee or former
employee. In addition, the employee's or former employee's surviving spouse and
the employee's or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Code Section
414(p), are distributees with regard to the interest of the spouse or former
spouse.

                  (D) Direct Rollover - A direct rollover is a payment by the
plan to the eligible retirement plan specified by the distributee.

            (3) Unless the Participant elects in writing a longer distribution
period, distributions to a Participant or his beneficiary attributable to
company stock shall be in substantially equal monthly, quarterly, semiannual, or
annual installments over a period not longer than five years. In the case of a
Participant with an account balance attributable to company stock in excess of
$500,000, the five year period shall be extended one additional year (but not
more than five additional years) for each $100,000 or fraction thereof by which
such balance exceeds $500,000. The dollar limits shall be adjusted at the same
time and in the same manner as provided in Code Section 415(d).

            (4) If installment payments are to be made from the fund in cash,
the plan administrator may direct the trustee to segregate all or any part of
the Participant's accrued benefit in a separate account. A segregated account
remains a part of the trust, but it alone shares in any income it earns, and it
alone bears any expense or loss it incurs.

            (5) Notwithstanding the above, if the sum of the vested Employer
contribution accounts under this plan and under the Wilson Greatbatch Ltd.
Equity Plus Plan - Money Purchase Plan are no more than $5,000, the benefit
shall automatically be paid in a lump sum. If the total of such vested Employer
contribution accounts exceeds $5,000, the benefit

                                      A-19
<PAGE>

shall automatically be paid in installments, except to the extent that the
benefit is held under the directed investment account in the Wilson Greatbatch
Ltd. Equity Plus Plan - Money Purchase Plan.

      (c) General Payment Provisions

            (1) Any part of a Participant's benefit which is retained in the
plan after the allocation date on which his participation ends will continue to
be treated as a company stock account, other investment account, or directed
investment account subject to Section 4.2(a)(6)(A). However, no further Employer
contributions or forfeitures will be credited.

            (2) All distributions due to be made under this plan shall be made
on the basis of the amount to the credit of the Participant as of the accounting
date coincident with or preceding the occurrence of the event calling for a
distribution.

      If a distributable event occurs after an allocation date and before
allocations have been made to the account of the Participant, the distribution
shall also include the amounts allocable to the account as of such allocation
date.

            (3) If any person entitled to receive benefits hereunder is
physically or mentally incapable of receiving or acknowledging receipt thereof
and if a legal representative has been appointed for him, the plan administrator
may direct the benefit payment to be made to such legal representative.

            (4) In the event a distribution is to be made to a minor, then the
administrator may direct that such distribution be paid to the legal guardian,
or if none, to a parent of such beneficiary or a responsible adult with whom the
beneficiary maintains his residence, or to the custodian for such beneficiary
under the Uniform Gift to Minors Act or the Gift to Minors Act, if such is
permitted by the laws of the state in which said beneficiary resides. Such a
payment to the legal guardian, custodian or parent of a minor beneficiary shall
fully discharge the trustee, Employer, and plan from further liability on
account thereof.

            (5) Each optional form of benefit provided under the plan shall be
made available to all Participants on a nondiscriminatory basis. The plan may
not retroactively reduce or eliminate optional forms of benefits and any other
Code Section 411(d)(6) protected benefits, except as provided in Regulation
section 1.411(d)-4, Q&A-2(d) and in other relief granted statutorily or by the
Commissioner of Internal Revenue. Any reduction or elimination of optional forms
of benefits shall apply only to benefits accrued after the effective date of
such change.

            (6) Notwithstanding anything herein to the contrary if the Board of
Directors of Wilson Greatbatch, Ltd. acting in a nondiscriminatory manner shall
so direct, cash dividends on shares of company stock shall be paid directly in
cash to the Participants in the plan or such dividends shall be paid to the plan
and distributed in cash to Participants within 90 days after the close of the
plan year in which the dividend is paid. In the absence of any direction from
the Board of Directors of Wilson Greatbatch, Ltd., cash dividends in company
stock shall be paid to the plan and allocated to Participants' accounts.

                                      A-20
<PAGE>

      (d) Payment Election Procedures

      As described in Section 5.2(b), an account balance in excess of $5,000
shall not be immediately distributed without the consent of the Participant. The
Participant shall receive the notice required under Regulation Section
1.411(a)-11(c) no less than 30 days and no more than 90 days before the annuity
starting date with respect to the distribution. For any distribution in excess
of $200, the plan administrator shall give the Participant notice of his
eligible rollover distribution rights. The Participant shall receive such notice
in the same time period as the 411 notice is required to be provided. If a
distribution is one to which Code Sections 401(a)(11) and 417 do not apply, such
distribution may commence less than 30 days after the 411 notice is given,
provided that:

            (1) The plan administrator 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

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

Section 4.4 Form of Distribution

      (a) Distribution of a Participant's benefit shall be made in cash.

      (b) The trustee shall make distribution from the trust only on
instructions from the administrator.

Section 4.5 In-Service Payments

      (a) Withdrawals - A Participant may withdraw amounts from his account(s)
before his separation from service only under the circumstances and only to the
extent provided below.

      No payments shall be made before separation from service.

      (b) Participant Loans - No Participant loans shall be permitted under the
plan.

Section 4.6 Distributions under Domestic Relations Orders

      Nothing contained in this plan prevents the trustee, in accordance with
the direction of the plan administrator, from complying with the provisions of a
qualified domestic relations order (as defined in Code Section 414(p)).

      A distribution will not be made to an alternate payee until the
Participant attains (or would have attained) his earliest retirement age. For
this purpose, earliest retirement age means the earlier of: (1) the date on
which the Participant is entitled to a distribution under this plan; or (2) the
later of the date the Participant attains age 50 or the earliest date on which
the Participant could begin receiving benefits under this plan if the
Participant separated from service.

                                      A-21
<PAGE>

      Nothing in this Section gives a Participant a right to receive
distribution at a time otherwise not permitted under the plan nor does it permit
the alternate payee to receive a form of payment not otherwise permitted under
the plan.

      The plan administrator shall establish reasonable procedures to determine
the qualified status of a domestic relations order. Upon receiving a domestic
relations order, the plan administrator promptly will notify the Participant and
any alternate payee named in the order, in writing, of the receipt of the order
and the plan's procedures for determining the qualified status of the order.
Within a reasonable period of time after receiving the domestic relations order,
the plan administrator shall determine the qualified status of the order and
shall notify the Participant and each alternate payee, in writing, of its
determination. The plan administrator shall provide notice under this paragraph
by mailing to the individual's address specified in the domestic relations
order, or in a manner consistent with Department of Labor regulations.

      If any portion of the Participant's nonforfeitable accrued benefit is
payable during the period the plan administrator is making its determination of
the qualified status of the domestic relations order, the plan administrator
shall make a separate accounting of the amounts payable. If the plan
administrator determines the order is a qualified domestic relations order
within 18 months of the date amounts first are payable following receipt of the
order, it shall direct the trustee to distribute the payable amounts in
accordance with the order. If the plan administrator does not make its
determination of the qualified status of the order within the 18-month
determination period, it shall direct the trustee to distribute the payable
amounts in the manner the plan would distribute if the order did not exist and
will apply the order prospectively if it later determines the order is a
qualified domestic relations order.

      The trustee will make any payments or distributions under this section by
separate benefit checks or other separate distribution to the alternate
payee(s).

                                      A-22
<PAGE>

                    ARTICLE V ADDITIONAL QUALIFICATION RULES

Section 5.1 Limitations on Allocations under Code Section 415

      (a) Single Plan Limitations

            (1) If the Participant does not participate in, and has never
participated in another qualified plan maintained by the Employer or a welfare
benefit fund, as defined in Code Section 419(e) maintained by the Employer, or
an individual medical account, as defined in Code Section 415(l)(2), maintained
by the Employer, which provides an annual addition as defined in Section
5.1(d)(1), the amount of annual additions which may be credited to the
Participant's account for any limitation year will not exceed the lesser of the
maximum permissible amount or any other limitation contained in this plan. If
the Employer contribution that would otherwise be contributed or allocated to
the Participant's account would cause the annual additions for the limitation
year to exceed the maximum permissible amount, the amount contributed or
allocated will be reduced so that the annual additions for the limitation year
will equal the maximum permissible amount.

            (2) Prior to determining the Participant's actual compensation for
the limitation year, the Employer may determine the maximum permissible amount
for a Participant on the basis of a reasonable estimation of the Participant's
compensation for the limitation year, uniformly determined for all Participants
similarly situated.

            (3) As soon as is administratively feasible after the end of the
limitation year, the maximum permissible amount for the limitation year will be
determined on the basis of the Participant's actual compensation for the
limitation year.

            (4) If pursuant to Section 5.1(a)(3) or as a result of the
allocation of forfeitures, there is an excess amount the excess will be disposed
of as follows:

                  (A) Any nondeductible voluntary employee contributions (and
any gain attributable thereto), to the extent they would reduce the excess
amount, will be returned to the Participant.

                  (B) If after the application of paragraph (A) an excess amount
still exists, the excess amount in the Participant's account shall be
reallocated to the remaining Participants who are eligible for an allocation of
Employer contribution for the plan year in which the limitation year ends, but
only to the extent that such reallocation will not exceed the maximum
permissible amount of each such remaining Participant.

                  (C) If after the application of paragraph (B) an excess amount
still exists, the excess amount will be held unallocated in a suspense account.
The suspense account will be applied to reduce future Employer contributions for
all Participants in the next limitation year, and each succeeding limitation
year if necessary.

                  (D) If a suspense account is in existence at any time during a
limitation year pursuant to this Section 5.1(a)(4), it will not participate in
the allocation of the trust's investment gains and losses. If a suspense account
is in existence at any time during a particular limitation year, all amounts in
the suspense account must be allocated and reallocated to Participants' accounts
before any Employer or any employee contributions

                                       B-1
<PAGE>

may be made to the plan for that limitation year. Excess amounts may not be
distributed to Participants or former Participants.

      (b) Combined Limitations - Other Defined Contribution Plan

            (1) This Subsection applies if, in addition to this plan, the
Participant is covered under another qualified defined contribution plan (e.g.
ESOP and 401(k) Plan) maintained by the Employer, a welfare benefit fund, as
defined in Code Section 419(e) maintained by the Employer, or an individual
medical account, as defined in Code Section 415(1)(2), maintained by the
Employer, which provides an annual addition as defined in Section 5.1(d)(1),
during any limitation year. The annual additions which may be credited to a
Participant's account under this plan for any such limitation year will not
exceed the maximum permissible amount reduced by the annual additions credited
to a Participant's account under the other plans and welfare benefit funds for
the same limitation year. If the annual additions with respect to the
Participant under other defined contribution plans and welfare benefit funds
maintained by the Employer are less than the maximum permissible amount and the
Employer contribution that would otherwise be contributed or allocated to the
Participant's account under this plan would cause the annual additions for the
limitation year to exceed this limitation, the amount contributed or allocated
will be reduced so that the annual additions under all such plans and funds for
the limitation year will equal the maximum permissible amount. If the annual
additions with respect to the Participant under such other defined contribution
plans and welfare benefit funds in the aggregate are equal to or greater than
the maximum permissible amount, no amount will be contributed or allocated to
the Participant's account under this plan for the limitation year.

            (2) Prior to determining the Participant's actual compensation for
the limitation year, the Employer may determine the maximum permissible amount
for a Participant in the manner described in Section 5.1(a)(2).

            (3) As soon as is administratively feasible after the end of the
limitation year, the maximum permissible amount for the limitation year will be
determined on the basis of the Participant's actual compensation for the
limitation year.

            (4) If, pursuant to Section 5.1(b)(3) or as a result of the
allocation of forfeitures, a Participant's annual additions under this plan and
such other plans would result in an excess amount for a limitation year, the
excess amount will be deemed to consist of the annual additions last allocated,
except that annual additions attributable to a welfare benefit fund or
individual medical account will be deemed to have been allocated first
regardless of the actual allocation date.

            (5) If an excess amount was allocated to a Participant on an
allocation date of this plan which coincides with an allocation date of another
plan, the excess amount will be disposed of In the manner provided in Section
3.1(c).

            (6) Any excess amount attributed to this plan will be disposed of in
the manner described in Section 5.1(a)(4).

      (c) Combined Limitations - Other Defined Benefit Plan

      If the Employer maintains, or at any time maintained, a qualified defined
benefit plan covering any Participant in this plan, the sum of the Participant's
defined benefit plan

                                       B-2
<PAGE>

fraction and defined contribution plan fraction will not exceed 1.0 in any
limitation year. Any excess amounts shall be disposed of in the manner provided
in Section 3.1(c). Any excess amount attributed to this plan will be disposed of
in the manner described in Section 5.1(a)(4).

      (d) Definitions (Code Section 415 Limitations)

            (1) Annual Additions - The sum of the following amounts credited to
a Participant's account for the limitation year:

                  (A) Employer contributions,

                  (B) employee contributions,

                  (C) forfeitures, and

                  (D) amounts allocated, after March 31, 1984, to an individual
medical account, as defined in Code Section 415(l)(2), which is part of a
pension or annuity plan maintained by the Employer are treated as annual
additions to a defined contribution plan. Also amounts derived from
contributions paid or accrued after December 31, 1985, in taxable years ending
after such date, which are attributable to post-retirement medical benefits,
allocated to the separate account of a key employee, as defined in Code Section
419A(d)(3), under a welfare benefit fund, as defined in Code Section 419(e),
maintained by the Employer are treated as annual additions to a defined
contribution plan.

      For this purpose, any excess amount applied under Section 5.1(a)(4) or
(b)(6) in the limitation year to increase the accounts of Participants who did
not have an excess amount or to reduce Employer contributions will be considered
annual additions for such limitation year.

      Annual additions shall not include forfeitures of company stock purchased
with the proceeds of an exempt loan and Employer contributions applied to the
payment of interest on an exempt loan if no more than one-third of the Employer
contribution for the year is allocated to the account of highly compensated
employees.

      Further, annual additions shall not include proceeds from the sale of
company stock as such proceeds constitute earnings on a plan asset allocable as
such.

            (2) Compensation - A Participant's earned income and any earnings
reportable as W-2 wages for Federal income tax withholding purposes.. W-2 wages
means wages as defined in Code Section 3401(a) 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 (such as the exception for
agricultural labor in Section 3401(a)(2)).

      Compensation shall include elective contributions as defined in Section
1.2(a). For purposes of applying the limitations of this Section 5.1,
compensation for a limitation year is the compensation actually paid or
includible in gross income during such limitation year.

      Notwithstanding the preceding sentence, compensation for a Participant in
a defined contribution plan who is permanently and totally disabled (as defined
in Code Section 22(e)(3)) is the compensation such Participant would have
received for the limitation year if the Participant had been paid at the rate of
compensation paid immediately before

                                       B-3
<PAGE>

becoming permanently and totally disabled; such imputed compensation for the
disabled Participant may be taken into account only if the contributions made on
behalf of such Participant are nonforfeitable when made.

            (3) Defined Benefit Fraction - A fraction, the numerator of which is
the sum of the Participant's projected annual benefits under all the defined
benefit plans (whether or not terminated) maintained by the Employer, and the
denominator of which is the lesser of 125 percent of the dollar limitation
determined for the limitation year under Code Sections 415(b) and (d) or 140
percent of the highest average compensation, including any adjustments under
Code Section 415(b).

      Notwithstanding the above, if the Participant was a Participant as of the
first day of the first limitation year beginning after December 31, 1986, in one
or more defined benefit plans maintained by the Employer which were in existence
on May 6, 1986, the denominator of this fraction will not be less than 125
percent of the sum of the annual benefits under such plans which the Participant
had accrued as of the close of the last limitation year beginning before January
1, 1987, disregarding any changes in the terms and conditions of the plan after
May 5, 1986. The preceding sentence applies only if the defined benefit plans
individually and in the aggregate satisfied the requirements of Code Section 415
for all limitation years beginning before January 1, 1987.

            (4) Defined Contribution Dollar Limitation - $30,000, as adjusted
under Code Section 415(d).

            (5) Defined Contribution Fraction - A fraction, the numerator of
which is the sum of the annual additions to the Participant's account under all
the defined contribution plans (whether or not terminated) maintained by the
Employer for the current and all prior limitation years (including the annual
additions attributable to the Participant's nondeductible employee contributions
to all defined benefit plans, whether or not terminated, maintained by the
Employer, and the annual additions attributable to all welfare benefit funds, as
defined in Code Section 419(e), and individual medical accounts, as defined in
Code Section 415(l)(2), maintained by the Employer), and the denominator of
which is the sum of the maximum aggregate amounts for the current and all prior
limitation years of service with the Employer (regardless of whether a defined
contribution plan was maintained by the Employer). The maximum aggregate amount
in any limitation year is the lesser of 125 percent of the dollar limitation
determined under Code Sections 415(b) and (d) in effect under Code Section
415(c)(1)(A) or 35 percent of the Participant's compensation for such year.

      If the employee was a Participant as of the end of the first day of the
first limitation year beginning after December 31, 1986, in one or more defined
contribution plans maintained by the Employer which were in existence on May 6,
1986, the numerator of this fraction will be adjusted if the sum of this
fraction and the defined benefit fraction would otherwise exceed 1.0 under the
terms of this plan. Under the adjustment, an amount equal to the product of(1)
the excess of the sum of the fractions over 1.0 times (2) the denominator of
this fraction, will be permanently subtracted from the numerator of this
fraction. The adjustment is calculated using the fractions as they would be
computed as of the end of the last limitation year beginning before January 1,
1987, and disregarding any changes in the terms and conditions of the plan made
after May 5, 1986, but using the Code Section 415 limitation applicable to the
first limitation year beginning on or after January 1, 1987.

                                       B-4
<PAGE>

      The annual addition for any limitation year beginning before January 1,
1987, shall not be recomputed to treat all employee contributions as annual
additions.

            (6) Employer - For purposes of this Section 5.1, Employer shall mean
the Employer that adopts this plan, and all members of a controlled group of
corporations (as defined in Code Section 414(b) as modified by Section 415(h)),
all commonly controlled trades or businesses (as defined in Code Section 414(c)
as modified by Section 415(h)) or affiliated service groups (as defined in Code
Section 414(m)) of which the adopting Employer is a part, and any other entity
required to be aggregated with the Employer pursuant to regulations under Code
Section 414(o).

            (7) Excess Amount - The excess of the Participant's annual additions
for the limitation year over the maximum permissible amount.

            (8) Highest Average Compensation - The average compensation for the
three consecutive years of service with the Employer that produces the highest
average. A year of service with the Employer is the 12-consecutive month period
coinciding with the plan year

            (9) Limitation Year - A calendar year, or the 12-consecutive month
period coinciding with the plan year, unless the Employer adopts another
12-consecutive month period by means of a written resolution. All qualified
plans maintained by the Employer must use the same limitation year. If the
limitation year is amended to a different 12-consecutive month period, the new
limitation year must begin on a date within the limitation year in which the
amendment is made.

            (10) Maximum Permissible Amount - The maximum annual addition that
may be contributed or allocated to a Participant's account under the plan for
any limitation year shall not exceed the lesser of:

                  (A) the defined contribution dollar limitation as defined in
Section 5.1(d)(4), or

                  (B) 25 percent of the Participant's compensation for the
limitation year.

      The compensation limitation referred to in (B) shall not apply to any
contribution for medical benefits (within the meaning of Code Section 401(h) or
Code Section 419A(f)(2)) which is otherwise treated as an annual addition under
Code Section 415(l)(1) or 419A(d)(2).

      If a short limitation year is created because of an amendment changing the
limitation year to a different 12-consecutive month period, the maximum
permissible amount will not exceed the defined contribution dollar limitation
multiplied by the following fraction:

                  Number of months in the short limitation year
                  ---------------------------------------------
                                       12

            (11) Projected Annual Benefit - The annual retirement benefit
(adjusted to an actuarially equivalent straight life annuity if such benefit is
expressed in a form other than a straight life annuity or qualified joint and
survivor annuity) to which the Participant would be entitled under the terms of
the plan assuming:

                                       B-5
<PAGE>

                  (A) the Participant will continue employment until normal
retirement age under the plan (or current age, if later), and

                  (B) the Participant's compensation for the current limitation
year and all other relevant factors used to determine benefits under the plan
will remain constant for all future limitation years.

Section 5.2 Joint and Survivor Annuity Requirements

      (a) Non-application to This Plan - No annuity form of payment is provided
under Section 4.3(b), all funds that are subject to a qualified Participant's
investment direction are transferred to the Wilson Greatbatch Ltd. Equity Plus
Plan - 401(k) Retirement Plan, and no direct or indirect transfer is accepted
under Section 3.7 from a defined benefit plan, money purchase pension plan
(including a target benefit plan), stock bonus or profit sharing plan which
would otherwise have provided for a life annuity form of payment to any
participant; therefore, the requirements of Code Sections 401(a)(11) and 417 do
not apply to this employee stock ownership plan, except for the provisions of
Section 5.2(b) and (c).

      (b) Restrictions on Immediate Distributions - If the value of a
Participant's vested account balance derived from Employer and employee
contributions exceeds (or at the time of any prior distribution exceeded)
$5,000, and the account balance is immediately distributable, the Participant
must consent to any distribution of such account balance. The consent of the
Participant shall be obtained in writing within the 90-day period ending on the
annuity starting date. The annuity starting date is the first day of the first
period for which an amount is paid as an annuity or any other form. The plan
administrator shall notify the Participant of the right to defer any
distribution until the Participant's account balance is no longer immediately
distributable. Such notification shall include a general description of the
material features, and an explanation of the relative values of, the optional
forms of benefit available under the plan in a manner that would satisfy the
notice requirements of Code Section 417(a)(3), and shall be provided no less
than 30 days and no more than 90 days prior to the annuity starting date.

      The consent of the Participant shall not be required to the extent that a
distribution is required to satisfy Code Section 401(a)(9) or Section 415. In
addition, upon termination of this plan if the plan don not offer an annuity
option (purchased from a commercial provider) and if the Employer or any entity
within the same controlled group as the Employer does not maintain another
defined contribution plan (other than an employee stock ownership plan as
defined in Code Section 4975(e)(7)), the Participant's account balance may,
without the Participant's consent, be distributed to the Participant. However,
if any entity within the same controlled group as the Employer maintains another
defined contribution plan (other than an employee stock ownership plan as
defined in Code Section 4975(e)(7)), the Participant's account balance will be
transferred, without the Participant's consent, to the other plan if the
Participant does not consent to an immediate distribution.

      An account balance is immediately distributable if any part of the account
balance could be distributed to the Participant before the Participant attains
(or would have attained if not deceased) the later of normal retirement age or
age 62.

                                       B-6
<PAGE>

      (c) Safe Harbor Rules

      This Paragraph (c) shall apply to a Participant in this stock bonus plan
if the following conditions are satisfied: (1) the Participant does not or
cannot elect payments in the form of a life annuity; and (2) on the death of a
Participant, the Participant's vested account balance will be paid to the
Participant's surviving spouse, but if there is no surviving spouse, or if the
surviving spouse has consented in a manner conforming to a qualified election,
then to the Participant's designated beneficiary. The surviving spouse may elect
to have distribution of the vested account balance commence within the 90-day
period following the date of the Participant's death. The account balance shall
be adjusted for gains or losses occurring after the Participant's death in
accordance with the provisions of the plan governing the adjustment of account
balances for other types of distributions. This Paragraph (c) shall not be
operative with respect to a Participant if the plan is a direct or indirect
transferee of a defined benefit plan, money purchase plan, target benefit plan,
stock bonus plan, or profit-sharing plan which is subject to the survivor
annuity requirements of Code Section 401(a)(11) and Section 417.

            (1) The Participant may waive the spousal death benefit described in
this Paragraph (c) at any time provided that no such waiver shall be effective
unless it satisfies the conditions of Paragraph (c)(3) that would apply to the
Participant's waiver of the qualified preretirement survivor annuity.

            (2) For purposes of this Paragraph (c), vested account balance shall
mean the aggregate value of the Participant's vested account balances derived
from Employer and employee contributions (including rollovers), whether vested
before or upon death, including the proceeds of insurance contracts, if any, on
the Participant's life. The provisions of this Subsection 5.2 shall apply to a
Participant who is vested in amounts attributable to Employer contributions,
employee contributions (or both) at the time of death or distribution.

            (3) Any waiver of a qualified preretirement survivor annuity shall
not be effective unless: (a) the Participant's spouse consents in writing to the
election; (b) the election designates a specific beneficiary, including any
class of beneficiaries or any contingent beneficiaries, which may not be changed
without spousal consent (or the spouse expressly permits designations by the
Participant without any further spousal consent); (c) the spouse's consent
acknowledges the effect of the election; and (d) the spouse's consent is
witnessed by a plan representative or notary public. Additionally, a
Participant's waiver shall not be effective unless the election designates a
form of benefit payment which may not be changed without spousal consent (or the
spouse expressly permits designations by the Participant without any further
spousal consent). If it is established to the satisfaction of a plan
representative that there is no spouse or that the spouse cannot be located, a
waiver will be deemed a qualified election.

      Any consent by a spouse obtained under this provision (or establishment
that the consent of a spouse may not be obtained) shall be effective only with
respect to such spouse. A consent that permits designations by the Participant
without any requirement of further consent by such spouse must acknowledge that
the spouse has the right to limit consent to a specific beneficiary, and a
specific form of benefit where applicable, and that the spouse voluntarily
elects to relinquish either or both of such rights. A revocation of a prior
waiver may be made by a Participant without the consent of the spouse at any
time before the commencement of benefits. The number of revocations shall not be
limited.

                                       B-7
<PAGE>

Section 5.3 Distribution Requirements

      Subject to Subsection 5.2 Joint and Survivor Annuity Requirements, the
requirements of this Subsection 5.3 shall apply to any distribution of a
Participant's interest and will take precedence over any inconsistent provisions
of this plan. Unless otherwise specified, the provisions of this Subsection
apply to calendar years beginning after December 31, 1984.

      All distributions required under this Subsection shall be determined and
made in accordance with the proposed regulations under Code Section 401(a)(9),
including the minimum distribution incidental benefit requirement of Section
1.401(a)(9)-2 of the Proposed Regulations.

      (a) Required Beginning Date - The entire interest of a Participant must be
distributed or begin to be distributed no later than the Participant's required
beginning date.

      (b) Limits on Distribution Periods - As of the first distribution calendar
year, distributions, if not made in a single sum, may only be made over one of
the following periods (or a combination thereof):

            (1) the life of the Participant,

            (2) the life of the Participant and a designated beneficiary,

            (3) a period certain not extending beyond the life expectancy of the
Participant, or

            (4) a period certain not extending beyond the joint and last
survivor expectancy of the Participant and a designated beneficiary.

      (c) Determination of Amounts to Be Distributed Each Year - If the
Participant's interest is to be distributed in other than a single sum, the
following minimum distribution rules shall apply on or after the required
beginning date.

            (1) Individual Account

                  (A) If a Participant's benefit is to be distributed over (1) a
period not extending beyond the life expectancy (tables in IRS Publication 590)
of the Participant or the joint life and last survivor expectancy of the
Participant and the Participant's designated beneficiary or (2) a period not
extending beyond the life expectancy of the designated beneficiary, the amount
required to be distributed for each calendar year, beginning with distributions
for the first distribution calendar year, must at least equal the quotient
obtained by dividing the Participant's benefit by the applicable life
expectancy.

                  (B) The amount to be distributed each year, beginning with
distributions for the first distribution calendar year shall not be less than
the quotient obtained by dividing the Participant's benefit by the lesser of (1)
the applicable life expectancy or (2) if the Participant's spouse is not the
designated beneficiary, the applicable divisor determined from the table set
forth in Q&A-4 of Section 1.40l(a)(9)-2 of the Proposed Regulations.
Distributions after the death of the Participant shall be distributed using the

                                       B-8
<PAGE>

applicable life expectancy in Paragraph (c)(1)(A) above as the relevant divisor
without regard to Proposed Regulation Section 1.401(a)(9)-2.

                  (C) The minimum distribution required for the Participant's
first distribution calendar year must be made on or before the Participant's
required beginning date. The minimum distribution for other calendar years,
including the minimum distribution for the distribution calendar year in which
the employee's required beginning date occurs, must be made on or before
December 31 of that distribution calendar year.

            (2) Other Forms - If the Participant's benefit is distributed in the
form of an annuity purchased from an insurance company, distributions thereunder
shall be made in accordance with the requirements of Code Section 401(a)(9) and
the proposed regulations thereunder.

      (d) Death Distribution Provisions

            (1) Distribution beginning before death - If the Participant dies
after distribution of his or her interest has begun, the remaining portion of
such interest will continue to be distributed at least as rapidly as under the
method of distribution being used prior to the Participant's death.

            (2) Distribution beginning after death - If the Participant dies
before distribution of his or her interest begins, distribution of the
Participant's entire interest shall be completed by December 31 of the calendar
year containing the fifth anniversary of the Participant's death except to the
extent that an election is made to receive distributions in accordance with (A)
or (B) below:

                  (A) If any portion of the Participant's interest is payable to
a designated beneficiary, distributions may be made over the life or over a
period certain not greater than the life expectancy of the designated
beneficiary commencing on or before December 31 of the calendar year immediately
following the calendar year in which the Participant died;

                  (B) If the designated beneficiary is the Participant's
surviving spouse, the date distributions are required to begin in accordance
with (A) above shall not be earlier than the later of (i) December 31 of the
calendar year immediately following the calendar year in which the Participant
died and (ii) December 31 of the calendar year in which the Participant would
have attained age 70 1/2.

      If the Participant has not made an election pursuant to this Paragraph
(d)(2) by the time of his or her death, the Participant's designated beneficiary
must elect the method of distribution no later than the earlier of (1) December
31 of the calendar year in which distributions would be required to begin under
this Paragraph, or (2) December 31 of the calendar year which contains the fifth
anniversary of the date of death of the Participant. If the Participant has no
designated beneficiary, or if the designated beneficiary does not elect a method
of distribution, distribution of the Participant's entire interest must be
completed by December 31 of the calendar year containing the fifth anniversary
of the Participant's death.

            (3) For purposes of Paragraph (d)(2) above, if the surviving spouse
dies after the Participant, but before payments to such spouse begin, the
provisions of Paragraph

                                       B-9
<PAGE>

(d)(2) with the exception of paragraph (B) therein, shall be applied as if the
surviving spouse were the Participant.

            (4) For purposes of this Paragraph (d), any amount paid to a child
of the Participant will be treated as if it had been paid to the surviving
spouse if the amount becomes payable to the surviving spouse when the child
reaches the age of majority

            (5) For the purposes of this Paragraph (d), distribution of a
Participant's interest is considered to begin on the Participant's required
beginning date (or, if Subparagraph (3) above is applicable, the date
distribution is required to begin to the surviving spouse pursuant to
Subparagraph (2) above). If distribution in the form of an annuity irrevocably
commences to the Participant before the required beginning date, the date
distribution is considered to begin is the date distribution actually commences.

      (e) Definitions (Code Section 401(a)(9) Requirements)

            (1) Applicable Life Expectancy - The life expectancy (or joint and
last survivor expectancy) calculated using the attained age of the Participant
(or designated beneficiary) as of the Participant's (or designated
beneficiary's) birthday in the applicable calendar year reduced by one for each
calendar year which has elapsed since the date life expectancy was first
calculated. If life expectancy is being recalculated, the applicable life
expectancy shall be the life expectancy as so recalculated. The applicable
calendar year shall be the first distribution calendar year, and if life
expectancy is being recalculated such succeeding calendar year.

            (2) Designated Beneficiary - The individual who is designated as the
beneficiary under the plan in accordance with Code Section 401(a)(9) and the
proposed regulations thereunder.

            (3) Distribution Calendar Year - A calendar year for which a minimum
distribution is required. For distributions beginning before the Participant's
death, the first distribution calendar year is the calendar year immediately
preceding the calendar year which contains the Participant's required beginning
date. For distributions beginning after the Participant's death, the first
distribution calendar year is the calendar year in which distributions are
required to begin pursuant to Paragraph (d) above.

            (4) Life Expectancy - Life expectancy and joint and last survivor
expectancy are computed by use of the expected return multiples in Tables V and
VI of Section 1.72-9 of the Income Tax Regulations.

      Unless otherwise elected by the Participant (or spouse, in the case of
distributions described in Paragraph (d)(2)(B) above) by the time distributions
are required to begin, life expectancies shall be recalculated annually. Such
election shall be irrevocable as to the Participant (or spouse) and shall apply
to all subsequent years. The life expectancy of a nonspouse beneficiary may not
be recalculated.

            (5) Participant's Benefit

                  (A) The account balance as of the last valuation date in the
calendar year immediately preceding the distribution calendar year (valuation
calendar year) increased by the amount of any contributions or forfeitures
allocated to the account balance as of

                                      B-10
<PAGE>

dates in the valuation calendar year after the valuation date and decreased by
distributions made in the valuation calendar year after the valuation date.

                  (B) Exception for second distribution calendar year. For
purposes of Subparagraph (5)(A) above, if any portion of the minimum
distribution for the first distribution calendar year is made in the second
distribution calendar year on or before the required beginning date, the amount
of the minimum distribution made in the second distribution calendar year shall
be treated as if it had been made in the immediately preceding distribution
calendar year.

            (6) Required Beginning Date

                  (A) Non-5-percent owner - The required beginning date is April
1 of the calendar year following the later of: (i) the calendar year in which
the Participant attains age 70 1/2, or (ii) the calendar year in which the
Participant retires. If a Participant who is not a 5-percent owner attains age
70 1/2 after December 31, 1995 and before January 1, 1999, the Participant shall
be permitted to elect to commence the distribution of his benefits as if his
required beginning date were April 1 of the calendar year following the calendar
year in which he attains age 70 1/2.

                  (B) 5-percent owner - The required beginning date for a
Participant who is a 5-percent owner is April 1 of the calendar year following
the calendar year in which the Participant attains age 70 1/2. A Participant is
treated as a 5-percent owner for purposes of this Paragraph (e) if such
Participant is a 5-percent owner as defined in Code Section 416(i) (determined
in accordance with Section 416 but without regard to whether the plan is
top-heavy) at any time during the plan year ending with or within the calendar
year in which such owner attains age 66 1/2 or any subsequent plan year.

                  (C) Once distributions have begun to a 5-percent owner under
this Paragraph, they must continue to be distributed, even if the Participant
ceases to be a 5-percent owner in a subsequent year.

Section 5.4 Top-Heavy Provisions

      (a) Application of Provisions - If the plan is or becomes top-heavy in any
plan year beginning after December 31, 1983, the provisions of Subsection 5.4
will supersede any conflicting provisions in the plan.

      (b) Minimum Allocation

            (1) Except as otherwise provided in (3) and (4) below, the Employer
contributions and forfeitures allocated on behalf of any Participant who is not
a key employee shall not be less than the lesser of three percent of such
Participant's compensation (as defined in Section 1.2) or in the case where the
Employer has no defined benefit plan which designates this plan to satisfy Code
Section 401, the largest percentage of Employer contributions and forfeitures,
as a percentage of the key employee's compensation which may be taken into
account under Section 1.2(c), allocated on behalf of any key employee for that
year. The minimum allocation is determined without regard to any Social Security
contribution. This minimum allocation shall be made even though, under other
plan provisions, the Participant would not otherwise be entitled to receive an
allocation, or would have received a lesser allocation for the year because
of (i) the

                                      B-11
<PAGE>

Participant's failure to complete 1,000 hours of service (or any equivalent
provided in the plan), or (ii) the Participant's failure to make mandatory
employee contributions to the plan, or (iii) compensation less than a stated
amount.

            (2) For purposes of computing the minimum allocation, compensation
shall mean compensation as defined in Section 1.2(a) of the plan.

            (3) The provision in (1) above shall not apply to any Participant
who was not employed by the Employer on the last day of the plan year.

            (4) The provision in (1) above shall not apply to any Participant to
the extent the Participant is covered under any other plan or plans of the
Employer and the Employer has provided in Section 3.2 that the minimum
allocation or benefit requirement applicable to top-heavy plans will be met in
the other plan or plans. If this plan is intended to meet the minimum allocation
or benefit requirement applicable to another plan or plans, the Employer shall
so provide in Section 3.2.

            (5) The minimum allocation required (to the extent required to be
nonforfeitable under Code Section 416(b)) may not be forfeited under Code
Section 411(a)(3)(B) or 411(a)(3)(D).

      (c) Adjustments in Code Section 415 Limits - If the plan is top-heavy, the
defined benefit fraction and the defined contribution fraction shall be computed
by applying a factor of 1.0 (instead of 1.25) to the applicable dollar limits
under Code Section 415(b)(1)(A) and 415(C)(1)(A) for such year, unless the plan
meets both the following conditions:

            (1) Such plan would not be a top-heavy plan if "90%" were
substituted for "60%" in the top-heavy tests; and

            (2) The minimum Employer contribution percentage under paragraph (b)
is 4 percent instead of 3 percent.

      However, the reduced Code Section 415 factor of 1.0 shall not apply under
a top-heavy plan with respect to any individual so long as there are no Employer
contributions, forfeitures, or voluntary non-deductible contributions allocated
to such individual.

      (d) Minimum Vesting Schedules - For any plan year in which this plan is
top-heavy, the following minimum vesting schedule shall automatically apply to
the plan:

                     Years of Service            Vesting Percentage
                     ----------------            ------------------
                         0 Years                          0%
                            1                            20%
                            2                            40%
                            3                            60%
                            4                            80%
                      5 or More Years                   100%

      The minimum vesting schedule shall apply to all benefits within the
meaning of Code Section 411(a)(7) except those attributable to employee
contributions, including benefits accrued before the effective date of Code
Section 416 and benefits accrued before the plan became top-heavy. Further, no
decrease in a Participant's nonforfeitable percentage may

                                      B-12
<PAGE>

occur in the event the plan's status as top-heavy changes for any plan year, and
the provisions of Section 7.2(d) shall apply. However, this Section does not
apply to the account balances of any employee who does not have an hour of
service after the plan has initially become top-heavy and such employee's
account balance attributable to Employer contributions and forfeitures will be
determined without regard to this Section.

      (e) Definitions (Code Section 416 Requirements)

            (1) Key Employee - Any employee or former employee (and the
beneficiaries of such employee) who at any time during the determination period
was an officer of the Employer if such individual's annual compensation exceeds
50 percent of the dollar limitation under Code Section 415(b)(1)(A), an owner
(or considered an owner under Code Section 318) of one of the ten largest
interests in the Employer if such individual's compensation exceeds 100 percent
of the dollar limitation under Code Section 415(c)(1)(A), a 5-percent owner of
the Employer, or a 1-percent owner of the Employer who has an annual
compensation of more than $150,000. Annual compensation means compensation as
defined in Code Section 415(c)(3), but including amounts contributed by the
Employer pursuant to a salary reduction agreement which are excludable from the
employee's gross income under Code Section 125, Section 402(a)(8), Section
402(h) or Section 403(b). The determination period is the plan year containing
the determination date and the four (4) preceding plan years.

      The determination of who is a key employee will be made in accordance with
Code Section 416(i)(1) and the regulations thereunder.

            (2) Top-Heavy Plan - For any plan year beginning after December 31,
1983, this plan is top-heavy if any of the following conditions exists:

                  (A) If the top-heavy ratio for this plan exceeds 60 percent
and this plan is not part of any required aggregation group or permissive
aggregation group of plans.

                  (B) If this plan is a part of a required aggregation group of
plans but not part of a permissive aggregation group and the top-heavy ratio for
the group of plans exceeds 60 percent.

                  (C) If this plan is a part of a required aggregation group and
part of a permissive aggregation group of plans and the top-heavy ratio for the
permissive aggregation group exceeds 60 percent.

            (3) Top-Heavy Ratio

                  (A) If the Employer maintains one or more defined contribution
plans (including any Simplified Employee Pension Plan) and the Employer has not
maintained any defined benefit plan which during the 5-year period ending on the
determination date(s) has or has had accrued benefits, the top-heavy ratio for
this plan alone or for the required or permissive aggregation group as
appropriate is a fraction, the numerator of which is the sum of the account
balances of all key employees as of the determination date(s) (including any
part of any account balance distributed in the 5-year period ending on the
determination date(s)), and the denominator of which is the sum of all account
balances (including any part of any account balance distributed in the 5-year
period ending on the determination date(s)), both computed in accordance with
Code Section 416 and the regulations thereunder. Both the numerator and
denominator of the top-heavy ratio are

                                      B-13
<PAGE>

increased to reflect any contribution not actually made as of the determination
date, but which is required to be taken into account on that date under Code
Section 416 and the regulations thereunder.

                  (B) If the Employer maintains one or more defined contribution
plans (including any Simplified Employee Pension Plan) and the Employer
maintains or has maintained one or more defined benefit plans which during the
5-year period ending on the determination date(s) has or has had any accrued
benefits, the top-heavy ratio for any required or permissive aggregation group
as appropriate is a fraction, the numerator of which is the sum of account
balances under the aggregated defined contribution plan or plans for all key
employees, determined in accordance with (A) above, and the present value of
accrued benefits under the aggregated defined benefit plan or plans for all key
employees as of the determination date(s), and the denominator of which is the
sum of the account balances under the aggregated defined contribution plan or
plans for all Participants, determined in accordance with (A) above, and the
present value of accrued benefits under the defined benefit plan or plans for
all Participants as of the determination date(s), all determined in accordance
with Code Section 416 and the regulations thereunder. The accrued benefits under
a defined benefit plan in both the numerator and denominator of the top-heavy
ratio are increased for any distribution of an accrued benefit made in the
five-year period ending on the determination date.

                  (C) For purposes of (A) and (B) above the value of account
balances and the present value of accrued benefits will be determined as of the
most recent valuation date that falls within or ends with the 12-month period
ending on the determination date, except as provided in Code Section 416 and the
regulations thereunder for the first and second plan years of a defined benefit
plan. The account balances and accrued benefits of a Participant (1) who is not
a key employee but who was a key employee in a prior year, or (2) who has not
been credited with at least one hour of service with any Employer maintaining
the plan at any time during the 5-year period ending on the determination date
will be disregarded. The calculation of the top-heavy ratio, and the extent to
which distributions, rollovers, and transfers are taken into account will be
made in accordance with Code Section 416 and the regulations thereunder.
Deductible employee contributions will not be taken into account for purposes of
computing the top-heavy ratio. When aggregating plans the value of account
balances and accrued benefits will be calculated with reference to the
determination dates that fall within the same calendar year.

      The accrued benefit of a Participant other than a key employee shall be
determined under (1) the method, if any, that uniformly applies for accrual
purposes under all defined benefit plans maintained by the Employer, or (2) if
there is no such method, as if such benefit accrued not more rapidly than the
slowest accrual rate permitted under the fractional rule of Code Section
411(b)(1)(C).

            (4) Permissive Aggregation Group - The required aggregation group of
plans plus any other plan or plans of the Employer which, when considered as a
group with the required aggregation group, would continue to satisfy the
requirements of Code Sections 401(a)(4) and 410.

            (5) Required Aggregation Group - (1) Each qualified plan of the
Employer in which at least one key employee participates or participated at any
time during the determination period (regardless of whether the plan has
terminated), and (2) any other

                                      B-14
<PAGE>

qualified plan of the Employer which enables a plan described in (1) to meet the
requirements of Code Sections 401(a)(4) or 410.

            (6) Determination Date - For any plan year subsequent to the first
plan year, the last day of the preceding plan year. For the first plan year of
the plan, the last day of that year.

            (7) Valuation Date - The allocation date as defined in Section
1.3(b), which shall be the date as of which account balances or accrued benefits
are valued for purposes of calculating the top-heavy ratio.

            (8) Present Value - Present value shall be based only on the
interest and mortality rates specified in the Employer's defined benefit plan.

            (9) Non-Key Employee - Any employee who is not a key employee.
Non-key employees include employees who are former key employees.

                                      B-15
<PAGE>

                      ARTICLE VI ADMINISTRATION OF THE PLAN

Section 6.1 Fiduciary Responsibility

      (a) Fiduciary Standards - A fiduciary shall discharge his duties with
respect to a plan solely in the interest of the Participants and beneficiaries
and -

      For the exclusive purpose of providing benefits to Participants and their
beneficiaries and defraying reasonable expenses of administering the plan;

      With the care, skill, prudence, and diligence under the circumstances then
prevailing that a prudent man 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;

      By diversifying the investments of the plan so as to minimize the risk of
large losses, unless under the circumstances it is clearly prudent not to do so;
and

      In accordance with the documents and instruments governing the plan
insofar as such documents and instruments are consistent with the provisions of
ERISA.

      (b) Allocation of Fiduciary Responsibility

            (1) It is intended to allocate to each fiduciary, either named or
otherwise, the individual responsibility for the prudent execution of the
functions assigned to him. None of the allocated responsibilities or any other
responsibilities shall be shared by two or more fiduciaries unless specifically
provided for in the plan.

            (2) When one fiduciary is required to follow the directions of
another fiduciary, the two fiduciaries shall not be deemed to share such
responsibility. Instead, the responsibility of the fiduciary giving the
directions shall be deemed to be his sole responsibility and the responsibility
of the fiduciary receiving directions shall be to follow those directions
insofar as such instructions on their face are proper under applicable law.

            (3) Any person or group of persons may serve in more than one
fiduciary capacity with respect to this plan.

            (4) A fiduciary under this plan may employ one or more persons,
including independent accountants, attorneys and actuaries to render advice with
regard to any responsibility such fiduciary has under the plan.

      (c) Indemnification by Employer - Unless resulting from the gross
negligence, willful misconduct or lack of good faith on the part of a fiduciary
who is an officer or employee of the Employer, the Employer shall indemnify and
save harmless such fiduciary from, against, for and in respect of any and all
damages, losses, obligations, liabilities, liens, deficiencies, costs and
expenses, including without limitation, reasonable attorney's fees and other
costs and expenses incident to any suit, action, investigation, claim or
proceedings suffered in connection with his acting as a fiduciary under the
plan.

      (d) Named Fiduciary - The person or persons named by the Employer as
having fiduciary responsibility for the management and control of plan assets
shall be known as

                                      B-16
<PAGE>

the "named fiduciary" hereunder. Such responsibility shall include the
appointment of the plan administrator (Section 6.2(a)), the trustee (Section
6.4(a)) and the investment manager (Section 6.4(b)), and the deciding of benefit
appeals (Section 6.3).

      (e) Bonding - Every fiduciary, except a bank or an insurance company,
unless exempted by the ERISA and regulations thereunder, shall be bonded in an
amount not less than 10% of the amount of the funds such fiduciary handles;
provided, however, that the minimum bond shall be $1,000 and the maximum bond,
$500,000. The amount of funds handled shall be determined at the beginning of
each plan year by the amount of funds handled by such person, group, or class to
be covered and their predecessors, if any, during the preceding plan year, or if
there is no preceding plan year, then by the amount of the funds to be handled
during the then current year. The bond shall provide protection to the plan
against any loss by reason of acts of fraud or dishonesty by the fiduciary alone
or in connivance with others. The surety shall be a corporate surety company (as
such term is used in ERISA Section 412(a)(2)), and the bond shall be in a form
approved by the Secretary of Labor. Notwithstanding anything in the plan to the
contrary, the cost of such bonds shall be an expense of and may, at the election
of the administrator, be paid from the trust fund or by the Employer.

Section 6.2 Plan Administrator

      (a) Appointment of Plan Administrator

      The named fiduciary shall appoint a plan administrator who may be a person
or an administrative committee consisting of no more than five members.
Vacancies occurring upon resignation or removal of a plan administrator or a
committee member shall be filled promptly by the named fiduciary. Any
administrator may resign at any time by giving notice of his resignation to the
named fiduciary, and any administrator may be removed at any time by the named
fiduciary. The named fiduciary shall review at regular intervals the performance
of the administrator(s) and shall re-evaluate the appointment of such
administrator(s). After the named fiduciary has appointed the administrator and
has received a written notice of acceptance, the fiduciary responsibility for
administration of the plan shall be the responsibility of the plan administrator
or administrative committee.

      (b) Duties and Powers of Plan Administrator

      The plan administrator shall have the following duties and discretionary
powers and such other duties and discretionary powers as relate to the
administration of the plan:

            (1) To determine in a non-discriminatory manner all questions
relating to the eligibility of employees to become Participants.

            (2) To determine in a non-discriminatory manner eligibility for
benefits and to determine and certify the amount and kind of benefits payable to
Participants.

            (3) To authorize all disbursements from the fund.

            (4) To appoint or employ any independent person to perform necessary
plan functions and to assist in the fulfillment of administrative
responsibilities as he deems advisable, including legal and actuarial counsel.

                                      B-17
<PAGE>

            (5) When appropriate, to select an insurance company and annuity
contracts which, in his opinion, will best carry out the purposes of the plan.

            (6) To construe and interpret any ambiguities in the plan and to
make, publish, interpret, alter, amend or revoke rules for the regulation of the
plan which are consistent with the terms of the plan and with ERISA.

            (7) To prepare and distribute, in such manner as determined to be
appropriate, information explaining the plan.

            (8) To establish and communicate to Participants a procedure and
method to insure that each Participant will vote company stock allocated to such
Participant's company stock account pursuant to Section 6.8.

            (9) To assist any Participant regarding his rights, benefits, or
elections available under the plan.

      (c) Allocation of Fiduciary Responsibility Within Administrative Committee

      If the plan administrator is an administrative committee, the committee
shall choose from its members a chairman and a secretary. The committee may
allocate responsibility for those duties and powers listed in Section 6.2(b)(1)
and (2) (except determination of qualification for disability retirement) and
other purely ministerial duties to one or more members of the committee. The
committee shall review at regular intervals the performance of any committee
member to whom fiduciary responsibility has been allocated and shall re-evaluate
such allocation of responsibility. After the committee has made such allocations
of responsibilities and has received written notice of acceptance, the fiduciary
responsibilities for such administrative duties and powers shall then be
considered as the responsibilities of such committee member(s).

      (d) Miscellaneous Provisions

            (1) Administrative Committee Actions - The actions of such committee
shall be determined by the vote or other affirmative expression of a majority of
its members. Either the chairman or the secretary may execute any certificate or
other written direction on behalf of the committee. A member of the committee
who is a Participant shall not vote on any question relating specifically to
himself. If the remaining members of the committee, by majority vote thereof,
are unable to come to a determination of any such question, the named fiduciary
shall appoint a substitute member who shall act as a member of the committee for
the special vote.

            (2) Expenses - The plan administrator shall serve without
compensation for service as such. All reasonable expenses of the plan
administrator shall be paid by the Employer or from the fund.

            (3) Examination of Records - The plan administrator shall make
available to any Participant for examination during business hours such of the
plan records as pertain only to the Participant involved.

            (4) Information to the Plan Administrator - To enable the plan
administrator to perform the administrative functions, the Employer shall supply
full and timely

                                      B-18
<PAGE>

information to the plan administrator on all Participants as the plan
administrator may require.

Section 6.3 Claims Procedure

      (a)   Notification - The plan administrator shall notify each Participant
in writing of his determination of benefits. If the plan administrator denies
any benefit, such written denial shall include:

            - The specific reasons for denial;

            - Reference to provisions on which the denial is based;

            - A description of and reason for any additional information needed
to process the claim; and

            - An explanation of the claims procedure.

      (b)   Appeal - The Participant or his duly authorized representative may:

            - Request a review of the Participant's case in writing to the named
fiduciary;

            - Review pertinent documents;

            - Submit issues and comments in writing.

      The written request for review must be submitted no later than 60 days
after receiving written notification of denial of benefits.

      (c) Review - The named fiduciary must render a decision no later than 60
days after receiving the written request for review, unless circumstances make
it impossible to do so; but in no event shall the decision be rendered later
than 120 days after the request for review is received.

Section 6.4 Trust Fund

      (a) Appointment of Trustee

      The named fiduciary shall appoint a trustee for the proper care and
custody of all funds, securities and other properties in the trust, and for
investment of plan assets (or for execution of such orders as it receives from
an investment manager appointed for investment of plan assets). The duties and
powers of the trustee shall be set forth in a trust agreement executed by the
Employer, which is incorporated herein by reference. The named fiduciary shall
review at regular intervals the performance of the trustee and shall re-evaluate
the appointment of such trustee. After the named fiduciary has appointed the
trustee and has received a written notice of acceptance of its responsibility,
the fiduciary responsibility with respect to the proper care and custody of plan
assets shall be considered as the responsibility of the trustee. Unless
otherwise allocated to an investment manager, the fiduciary responsibility with
respect to investment of plan assets shall likewise be considered as the
responsibility of the trustee.

                                      B-19
<PAGE>

      (b) Appointment of Investment Manager

      The named fiduciary may appoint an investment manager who is other than
the trustee, which investment manager may be a bank or an investment advisor
registered with the Securities and Exchange Commission under the Investment
Advisors Act of 1940. Such investment manager, if appointed, shall have sole
discretion in the investment of plan assets, subject to the funding policy. The
named fiduciary shall review at regular intervals no less frequently than
annually, the performance of such investment manager and shall re-evaluate the
appointment of such investment manager. After the named fiduciary has appointed
an investment manager and has received a written notice of acceptance of its
responsibility, the fiduciary responsibility with respect to investment of plan
assets shall be considered as the responsibility of the investment manager.

Section 6.5 Investment Policy

      (a) The plan is designed to invest primarily in company stock. It is
specifically intended that this plan qualify and operate as an eligible
individual account plan as defined in ERISA section 407(d)(3). As such, and
without limiting the generality of the foregoing, the trustee is hereby
specifically authorized to:

            (1) acquire, hold, sell, and distribute Company stock.

            (2) invest in Company stock and not limit its holdings of such stock
to ten percent of trust assets but may invest up to 100% of plan assets in
Company stock without regard to any plan or trust agreement requirement to
diversify investments as permitted under ERISA section 404(a)(2).

            (3) acquire or sell Company stock in a transaction with a
disqualified person or a party in interest (as those terms are defined in ERISA
and the Code) provided that no commission is charged and the transaction is for
adequate consideration.

      (b) With due regard to subparagraph (a) above, the administrator may also
direct the trustee to invest funds under the plan in other property described in
the Trust Agreement or in life insurance policies to the extent permitted by
subparagraph (c) below, or the trustee may hold such funds in cash or cash
equivalents.

      (c) The plan may not obligate itself to acquire company stock from a
particular holder thereof at an indefinite time determined upon the happening of
an event such as the death of the holder.

      (d) The plan may not obligate itself to acquire company stock under a put
option binding upon the plan. However, at the time a put option is exercised,
the plan may be given an option to assume the rights and obligations of the
Employer under a put option binding upon the Employer.

      (e) All purchases of company stock shall be made at a price which, in the
judgment of the administrator, does not exceed the fair market value thereof.
All sales of company stock shall be made at a price which, in the judgment of
the administrator, is not less than the fair market value thereof. The valuation
rules set forth in Section 6.7 shall be applicable.

                                      B-20
<PAGE>

Section 6.6 Valuation of the Trust Fund

      (a) The administrator shall direct the trustee, as of each allocation
date, and at such other date or dates deemed necessary by the administrator,
herein called valuation date, to determine the net worth of the assets
comprising the trust fund as it exists on the valuation date prior to taking
into consideration any contribution to be allocated for that plan year. In
determining such net worth, the trustee shall value the assets comprising the
trust fund at their fair market value as of the valuation date and shall deduct
all expenses for which the trustee has not yet obtained reimbursement from the
Employer or the trust fund.

      (b) Valuations must be made in good faith and based on all relevant
factors for determining the fair market value of securities. In the case of a
transaction between a plan and a disqualified person, value must be determined
as of the date of the transaction. For all other plan purposes, value must be
determined as of the most recent valuation date under the plan. An independent
appraisal will not in itself be a good faith determination of value in the case
of a transaction between the plan and a disqualified person. However, in other
cases, a determination of fair market value based on at least an annual
appraisal independently arrived at by a person who customarily makes such
appraisals and who is independent of any party to the transaction will be deemed
to be a good faith determination of value. Company stock not readily tradable on
an established securities market shall be valued by an independent appraiser
meeting requirements similar to the requirements of the Regulations prescribed
under Code Section 170(a)(1).

Section 6.7 Voting Company Stock

      The trustee shall vote all company stock held by it as part of the plan
assets at such time and in such manner as the administrator shall direct,
provided, however, that if any agreement entered into by the trust provides for
voting of any shares of company stock pledged as security for any obligation of
the plan, then such shares of company stock shall be voted in accordance with
such agreement. If the administrator shall fail or refuse to give the trustee
timely instructions as to how to vote any company stock as to which the trustee
otherwise has the right to vote, the trustee shall not exercise its power to
vote such company stock.

      If the by-laws of the Employer require the plan to vote an issue in a
manner that reflects a one-man, one-vote philosophy, each Participant or
beneficiary shall be entitled to cast one vote on an issue and the trustee shall
vote the shares held by the plan in proportion to the results of the votes cast
on the issue by the Participants and beneficiaries.

      In the event a tender offer is made for shares of company stock, each
Participant (or beneficiary) shall be entitled to direct the trustee as to
whether or not the shares of company stock allocated to his company stock
account shall be tendered pursuant to such offer. The trustee shall tender
shares of company stock held in the unallocated company stock suspense account
in the same proportion as Participants actually tender the shares allocated to
their individual accounts, provided, however, that the trustee shall not tender
any shares which are pledged as security for an exempt loan without first
obtaining any required approvals.

                                      B-21
<PAGE>

Section 6.8 Current Obligations

      Employer contributions in cash and other cash received by the trust fund
shall first be applied to pay any current obligations of the trust fund. Current
obligations means trust fund expenses and trust obligations arising from the
extension of credit to the trust and payable in cash within one year from the
date an Employer contribution is due.

                                      B-22
<PAGE>

                ARTICLE VII AMENDMENT AND TERMINATION OF PLAN

Section 7.1 Right to Discontinue and Amend

      It is the expectation of the Employer that it will continue this plan
indefinitely and make the payments of its contributions hereunder, but the
continuance of the plan is not assumed as a contractual obligation of the
Employer and the right is reserved by the Employer, at any time, to reduce,
suspend or discontinue its contributions hereunder.

      Section 7.2 Amendments

      Except as herein limited, the Employer shall have the right to amend this
plan at any time to any extent that it may deem advisable. Such amendment shall
be stated in writing, shall be authorized by action of the board of directors,
and shall be executed by the person designated in conjunction with the
authorization.

      The Employer's right to amend the plan shall be limited as follows:

      (a) No amendment shall increase the duties or liabilities of the plan
administrator, the trustee, or other fiduciary without their respective written
consent.

      (b) No amendments shall have the effect of vesting in the Employer any
interest in or control over any contracts issued pursuant hereto or any other
property in the fund.

      (c) No amendment to the plan shall be effective to the extent that it has
the effect of decreasing a Participant's accrued benefit. Notwithstanding the
preceding sentence, a Participant's account balance may be reduced to the extent
permitted under Code Section 412(c)(8). For purposes of this paragraph, a plan
amendment which has the effect of decreasing a Participant's account balance or
eliminating an optional form of benefit, with respect to benefits attributable
to service before the amendment shall be treated as reducing an accrued benefit.
Furthermore, if the vesting schedule of a plan is amended, in the case of an
employee who is a Participant as of the later of the date such amendment is
adopted or the date it becomes effective, the nonforfeitable percentage
(determined as of such date) of such employee's right to his Employer-derived
accrued benefit will not be less than his percentage computed under the plan
without regard to such amendment.

      (d) No amendment to the vesting schedule adopted by the Employer hereunder
shall deprive a Participant of his vested portion of his Employer contribution
account to the date of such amendment. If the plan's vesting schedule is
amended, or the plan is amended in any way that directly or indirectly affects
the computation of the Participant's nonforfeitable percentage or if the plan is
deemed amended by an automatic change to or from a top-heavy vesting schedule,
each Participant with at least 3 years of service with the Employer may elect,
within a reasonable period after the adoption of the amendment or change, to
have the nonforfeitable percentage computed under the plan without regard to
such amendment or change. For Participants who do not have at least one hour of
service in any plan year beginning after December 31, 1988, "5 years of service"
shall be substituted for "3 years of service" in the preceding sentence. The
period during which the election may be made shall commence with the date the
amendment is adopted or deemed to be made and shall end on the latest of:

                                      B-23

<PAGE>

            (1) 60 days after the amendment is adopted;

            (2) 60 days after the amendment becomes effective; or

            (3) 60 days after the Participant is issued written notice of the
amendment by the Employer or plan administrator.

Section 7.3 Protection of Benefits in Case of Plan Merger

      In the event of a merger or consolidation with, or transfer of assets to
any other plan, each Participant will receive a benefit immediately after such
merger, consolidation or transfer (if the plan then terminated) which is at
least equal to the benefit the Participant was entitled to immediately before
such merger, consolidation or transfer (if the plan had terminated).

Section 7.4 Termination of Plan

      (a) When Plan Terminates - This plan shall terminate upon the happening of
any of the following events: legal adjudication of the Employer as bankrupt; a
general assignment by the Employer to or for the benefit of its creditors; the
legal dissolution of the Employer; or termination of the plan by the Employer.

      (b) Allocation of Assets - Upon termination, partial termination or
complete discontinuance of Employer contributions, the account balance of each
affected Participant who is an active Participant or who is not an active
Participant but has neither received a complete distribution of his vested
accrued benefit nor incurred five one-year breaks in service shall be 100%
vested and nonforfeitable. The amount of the fund assets shall be allocated to
each Participant, subject to provisions for expenses of administration of the
liquidation, in the ratio that such Participant's account bears to all accounts.
If a Participant under this plan has terminated his employment at any time after
the anniversary date of the year in which the Employer made his final
contribution to the plan, and if any portion of the account of such terminated
Participant was forfeited and reallocated to the remaining Participants, such
forfeiture shall be reversed and the forfeited amount shall be credited to the
account of such terminated Participant.

                                      B-24
<PAGE>

                      ARTICLE VIII MISCELLANEOUS PROVISIONS

Section 8.1 Exclusive Benefit - Non-Reversion

      The plan is created for the exclusive benefit of the employees of the
Employer and shall be interpreted in a manner consistent with its being a
qualified plan as defined in Section 401(a) of the Internal Revenue Code and
with ERISA. The corpus or income of the trust may not be diverted to or used for
other than the exclusive benefit of the Participants or their beneficiaries
(except for defraying reasonable expenses of administering the plan).

      Notwithstanding the above, a contribution paid by the Employer to the
trust may be repaid to the Employer under the following circumstances:

      (a) Any contribution made by the Employer because of a mistake of fact
must be returned to the Employer within one year of the contribution.

      (b) In the event the deduction of a contribution made by the Employer is
disallowed under Code Section 404, such contribution (to the extant disallowed)
must be returned to the Employer within one year of the disallowance of the
deduction.

      (c) If the Commissioner of Internal Revenue determines that the plan is
not initially qualified under the Internal Revenue Code, any contribution made
incident to that initial qualification by the Employer must be returned to the
Employer within one year after the date the initial qualification is denied, but
only if the application for the qualification is made by the time prescribed by
law for filing the Employer's return for the taxable year in which the plan is
adopted, or such later date as the Secretary of the Treasury may prescribe.

Section 8.2 Inalienability of Benefits

      No benefit or interest available hereunder including any annuity contract
distributed herefrom shall be subject to assignment or alienation, either
voluntarily or involuntarily. The preceding sentence shall also apply to the
creation, assignment, or recognition of a right to any benefit payable with
respect to a Participant pursuant to a domestic relations order, unless such
order is determined to be a qualified domestic relations order as defined in
Code Section 4l4(p), or any domestic relations order entered before January 1,
1985. A loan made to a Participant and secured by his nonforfeitable account
balance under Section 4.5(b) will not be treated as an assignment or alienation
and such securing account balance shall be subject to attachment by the plan in
the event of default.

      Notwithstanding the preceding paragraph, effective with respect to
judgments, orders, and decrees issued, and settlement agreements entered into,
on or after August 5, 1997, a Participant's benefit (and that of his spouse)
shall be reduced to satisfy liabilities of the Participant to the plan due to
(1) the Participant being convicted of committing a crime involving the plan,
(2) a civil judgment (or consent order or decree) entered by a court in an
action brought in connection with a violation of the fiduciary provisions of
Title I of ERISA, or (3) a settlement agreement between the Secretary of Labor
or the Pension Benefit Guaranty Corporation and the Participant in connection
with a violation of the fiduciary

                                      B-25
<PAGE>

provisions of ERISA. Any reduction made pursuant to this paragraph shall be done
in accordance with the requirements of ERISA Section 206(d).

Section 8.3 Employer-Employee Relationship

      This plan is not to be construed as creating or changing any contract of
employment between the Employer and its employees, and the Employer retains the
right to deal with its employees in the same manner as though this plan had not
been created.

Section 8.4 Binding Agreement

      This plan shall be binding on the heirs, executors, administrators,
successors and assigns as such terms may be applicable to any or all parties
hereto, and on any Participants, present or future.

Section 8.5 Separability

      If any provision of this plan shall be held invalid or unenforceable, such
invalidity or unenforceability shall not affect any other provision hereof and
this plan shall be construed and enforced as if such provision had not been
included.

Section 8.6 Construction

      The plan shall be construed in accordance with the laws of the state in
which the Employer was incorporated and with ERISA.

Section 8.7 Copies of Plan

      This plan may be executed in any number of counterparts, each of which
shall be deemed as an original, and said counterparts shall constitute but one
and the same instrument which may be sufficiently evidenced by any one
counterpart.

Section 8.8 Interpretation

      Wherever appropriate, words used in this plan in the singular may include
the plural or the plural may be read as singular, and the masculine may include
the feminine.

Section 8.9 Securities and Exchange Contmiaaion Apnroval

      The Employer may request an interpretative letter from the Securities and
Exchange Commission stating that the transfers of company stock contemplated
hereunder do not involve transactions requiring a registration of such company
stock under the Securities Act of 1933. In the event that a favorable
interpretative letter is not obtained, the Employer reserves the right to amend
the Plan and Trust retroactively to their effective dates in order to obtain a
favorable interpretative letter or to terminate the plan.

                                      B-26
<PAGE>

      IN WITNESS WHEREOF, the Employer has caused this Plan to be executed this
31st day of December, 1998.

                             EMPLOYER:
                             Wilson Greatbatch Ltd.

                             By: /s/ Larry T. DeAngelo
                                -------------------------------------
                             Title: V.P. Administration & Secretary
                                    ---------------------------------

                                      B-27
<PAGE>

                                 FIRST AMENDMENT

                                       to

                    WILSON GREATBATCH LTD. EQUITY PLUS PLAN -
                                STOCK BONUS PLAN

            Under Article VII of the Wilson Greatbatch Ltd. Equity Plus Plan -
Stock Bonus Plan (the "Plan"), Wilson Greatbatch Ltd. (the "Employer") has the
right to make written amendments to the Plan that are authorized by the board of
directors of the Employer and executed by an authorized officer of the Employer.
Therefore, the Employer hereby amends the Plan in the following respects:

            1. Effective January 1, 1999, paragraphs (2) and (3) of Plan Section
4.3(a) are hereby deleted in their entirety, and are replaced with the following
provisions:

                  (2) Participant Elections to Commence Distributions - If a
            Participant terminates employment with the Employer, the Participant
            may make a written election directing the plan administrator to make
            a distribution of his or her vested accounts under the Plan. The
            form of distribution will be determined under the provisions of
            Section 4.3(b). The timing of the distribution depends on when the
            Participant elects to receive a distribution and the accounting date
            the Participant elects to use to determine the value of his or her
            account for distribution purposes. A Participant may elect an
            immediate distribution and request that the distribution amount be
            determined using the value of his or her vested plan account as of
            the accounting date that coincides with or immediately precedes the
            date the Participant submits the election, in which case the
            distribution will be processed as soon as practicable after the date
            the plan administrator receives the election. Alternatively, a
            Participant may elect to defer the distribution and request that the
            distribution amount be determined using the value of his or her
            vested plan account as of the next annual accounting date for
            valuing company stock that immediately follows the date the
            Participant submits the election, in which case the distribution
            will be processed as soon as practicable after that accounting date.

            2. Effective January 1, 1999, the first sentence of Plan Section
4.3(c)(2) is hereby deleted in its entirety.

            3. Effective January 1, 1999, Plan Section 4.4 is hereby deleted in
its entirety, and is replaced by the following provision:

            Section 4.4 Form of Distribution

                  (a) Unless a Participant or a beneficiary demands that his or
            her

<PAGE>
                                       2

            benefits attributable to the Company Stock Account be distributed in
            the form of company stock, the plan administrator may, but is not
            obligated to, direct the trustee to distribute benefits in cash
            only. The amount of any cash payment to a Participant will be equal
            to the fair market value of the company stock that would otherwise
            have been distributed to the Participant, plus the value of his or
            her other investment account and directed investment account.

                  (b) The trustee may make distributions from the trust only on
            instructions from the plan administrator.

            4. Effective January 1, 1999, the following new Section 5.5 is
hereby added at the end of Article V of the Plan:

            Section 5.5 ESOP Distribution Options

                  (a) Right to Receive Stock

                  The right to receive distributions in the form of shares of
            company stock is automatically terminated in the event of the sale
            or other disposition by the trustee of all shares of company stock
            held by the trust.

                  (b) Restricted Stock

                        (1) Notwithstanding any other provision of the Plan, if
            the Employer's charter or by-laws restrict ownership of
            substantially all shares of company stock to employees and the trust
            fund, as described in Code Section 409(h)(2), the administrator will
            distribute a Participant's account entirely in cash, without
            granting the Participant the right to demand distribution in shares
            of company stock.

                        (2) Except as otherwise provided under the plan, company
            stock distributed by the trustee may be restricted as to sale or
            transfer by the bylaws or articles of incorporation of the Employer,
            if the restrictions are applicable to all company stock of the same
            class. Certificates representing company stock distributed by the
            plan will bear a legend or notation required by applicable federal
            and state securities laws and regulations.

                  (c) Right of First Refusal

                        (1) If any Participant, his or her beneficiary or any
            other person to whom shares of company stock are distributed from
            the plan (the selling

<PAGE>
                                       3

            Participant) wants, at any time that the stock is not publicly
            traded, to sell some or all of his or her shares (the offered
            shares) to a third party, the selling Participant must give prior
            written notice of his or her plans to sell the stock to the Employer
            and the trustee. The notice must contain the number of shares
            offered for sale, the proposed terms of the sale and the names and
            addresses of both the selling Participant and third party. The
            trustee and the Employer each will have the right of first refusal
            for a period of 14 days from the date the selling Participant gives
            written notice to the Employer and to the trustee to acquire the
            offered shares. The 14-day period runs concurrently with respect to
            the trust fund and the Employer. As between the trust fund and the
            Employer, the trust fund has priority to acquire the shares pursuant
            to the right of first refusal. If the trustee or the Employer
            exercises their right of first refusal, the selling price and terms
            may not be less than the price and terms offered by the third party.

                        (2) If the trustee and the Employer do not exercise
            their right of first refusal within the required 14-day period, the
            selling Participant has the right, at any time following the
            expiration of the period, to dispose of the offered shares to the
            third party. Nevertheless, no disposition may be made to the third
            party on terms more favorable to the third party than those set
            forth in the written notice previously given by the selling
            Participant to the Employer and trustee. If the disposition is not
            made to a third party on the terms offered to the Employer and the
            trustee, the offered shares are again subject to the right of first
            refusal described above.

                        (3) The closing following the exercise of a right of
            first refusal will take place at such place agreed on between the
            administrator and the selling Participant, but not later than ten
            (10) days after the Employer or the trustee notifies the selling
            Participant of the exercise of the right of first refusal. At the
            closing, the selling Participant must deliver certificates
            representing the offered shares duly endorsed in blank for transfer,
            or with stock powers attached duly executed in blank with all
            required transfer tax stamps attached or provided for, and the
            Employer or the trustee must deliver the purchase price, or an
            appropriate portion thereof, to the selling Participant.

                  (d) Put Option

                        (1) if company stock is distributed to a Participant and
            the company stock is not readily tradeable on an established
            securities market, a Participant has a right to require the Employer
            to repurchase the company stock distributed to such Participant
            under a fair valuation formula. That stock shall be subject to the
            provisions of (c).

                        (2) The put option is exercisable only by a Participant,
            by the

<PAGE>
                                       4

            Participant's donees, or by a person (including an estate or its
            distributee) to whom the company stock passes by reason of a
            Participant's death. The put option must permit a Participant (or a
            beneficiary) to put the company stock to the Employer. Under no
            circumstance may the put option bind the plan. However, the put
            option grants the plan an option to assume the rights and
            obligations of the Employer at the time that the put option is
            exercised. If it is known at the time a loan is made that Federal or
            State law will be violated by the Employer honoring the put option,
            the put option must permit the company stock to be put, in a manner
            consistent with applicable law, to a third parry (e.g., an affiliate
            of the Employer or a shareholder other than the plan) that has
            substantial net worth at the time the loan is made and whose net
            worth is reasonably expected to remain substantial.

                  The put option may be exercised during the period that begins
            on the date the company stock is distributed to the Participant (or
            a beneficiary) and ends 60 days thereafter. If the put option is not
            exercised within the 60-day period, an additional 60-day option
            commences on the 1st day of the 5th month of the plan year next
            following the date the stock was distributed to the Participant (or
            any other 60-day period as provided in Treasury regulations).
            However, in the case of company stock that is publicly traded
            without restrictions when distributed and ceases to be publicly
            traded within either of the 60-day periods described above, the
            Employer must notify each holder of the company stock in writing on
            or before the 10th day after the date the company stock ceases to be
            publicly traded that for the remainder of the applicable 60-day
            period the company stock is subject to the put option. The number of
            days between the 10th day and the date on which notice is actually
            given, if later than the 10th day, must be added to the duration of
            the put option. The notice must inform distributees of the term of
            the put options that they are to hold. The terms must satisfy the
            requirements of this paragraph.

                  The put option is exercised by the holder by notifying the
            Employer in writing that the put option is being exercised. The
            notice must state the name and address of the holder and the number
            of shares to be sold. When written notification from the holder is
            received, the Employer will immediately inform the administrator of
            the notice. The administrator will have 10 days to notify the
            Employer if it wishes the trust fund to assume the rights and
            obligations of the Employer with respect to the required purchase of
            company stock.

                  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. The price at which a put option
            must be exercisable is the fair market value of the company stock,
            as determined by the plan administrator in good faith based on all

<PAGE>
                                       5

            the relevant factors, as of the allocation date coincident with or
            immediately preceding the Employer's receipt of the written
            notification. The total purchase price must be paid to the holder
            within 30 days after the notification. The Employer, however, may
            defer the payments on a reasonable basis, if it gives written notice
            to the holder within the 30 days period. The deferred payments must
            be paid in substantially equal monthly, quarterly, semiannual, or
            annual installments over a period certain beginning not later than
            30 days after the exercise of the put option and not extending
            beyond 5 years. The deferral of payment is reasonable if adequate
            security and a reasonable interest rate on the unpaid amounts are
            provided. The amount to be paid under the put option involving
            installment distributions must be paid not later than 30 days after
            the exercise of the put option. Payment under a put option must not
            be restricted by the provisions of a loan or any other arrangement,
            including the terms of the employer's articles of incorporation,
            unless so required by applicable state law.

                  For purposes of this Section, total distribution means a
            distribution within 1 taxable year to a Participant or his
            beneficiary of the Participant's entire vested account.

                        (3) An arrangement involving the plan that creates a put
            option must not provide for the issuance of put options other than
            as provided under this Section. The plan (and the trust fund) must
            not otherwise obligate itself to acquire company stock from an
            option holder at an indefinite time determined on the happening of
            an event, such as the death of the holder.

            5. Effective January 1, 1999, the second and third paragraphs of
Section 6.7 are hereby deleted in their entirety, and are replaced with the
following provisions:

                  If a tender offer is made for shares of company stock, each
            Participant or beneficiary will be entitled to direct the trustee as
            to whether or not the shares allocated to his or her company stock
            account may be tendered under the offer.

                  All shares of company stock allocated to accounts for which
            the trustee did not receive tender instructions from a Participant
            or beneficiary and all shares held in the unallocated company stock
            suspense account will be tendered or not tendered by the trustee in
            its discretion and in accordance with its fiduciary duties under
            ERISA. The trustee may not tender any shares that are pledged as
            security for an exempt loan without first obtaining any required
            approvals.

                  On all other corporate matters requiring pass-through voting
            rights under Code Section 409(e)(3), each Participant or beneficiary
            is entitled to direct the trustee on the manner in which to vote the
            shares of company stock allocated to his or her company stock
            account. All shares of company stock allocated to accounts for which
            the trustee did not receive timely voting instructions from

<PAGE>
                                       6

            Participants or beneficiaries and all shares held in the unallocated
            company stock suspense account will be voted by the trustee in its
            discretion and in accordance with its fiduciary duties under ERISA.

            In all other respects, the Plan remains unchanged.

                                       WILSON GREATBATCH LTD.

Date: March 27, 1999                   By /s/ Larry T. DeAngelo
      ----------------                    -----------------------------------
<PAGE>

                     WILSON GREATBATCH EQUITY PLUS ESOP PLAN

                             MASTER TRUST AGREEMENT

      THIS AGREEMENT, made and entered into on the date of its execution, is
effective for all purposes as of March 11, 1998 by and between:

                      Wilson Greatbatch, Ltd. ("Employer")

                                       and

        Curt Cashmore, Larry T. DeAngelo, Scott Ferguson, Arthur Lalonde,
                        and Esther Takeuchi ("Trustee"),

  and sha1l be construed in accordance with the laws of the State of New York.

                                   WITNESSETH:

      WHEREAS the Employer has established the Wilson Greatbatch Equity Plus
ESOP Plan-Money Purchase Plan and the Wilson Greatbatch Equity Plus-Stock Bonus
Plan ("the participating plans"); and

      WHEREAS, the Employer desires to establish a Master Trust to allow for the
unmingling of trust fund assets for investment purposes;

      NOW THEREFORE, the Employer and the Trustee do hereby agree to the
following provisions of this master trust agreement established for the purpose
of implementing said participating plans.

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

Section 1:01: General

      The definitions set forth in the participating plans shall govern in this
master trust agreement.

      The term plan administrator shall mean the person or persons appointed
under the provisions of the participating plans. If the same persons are not
appointed to this position for all participating plans, then for the purposes of
this master trust agreement the term plan administrator shall mean the person or
persons appointed under the particular participating plan in question.

Section 1.02: Trustee

      The Trustee may be one or more individuals or an institution; the pronoun
"it" when referring to the Trustee shall mean he, she, they or it as necessary.

      Where the Trustee is more than one individual, the individuals shall
determine, subject to the approval of the Named Fiduciary, how responsibilities
shall be allocated. The actions of the Trustee shall be determined by the vote
or other affirmative expression of a majority of the appointed individuals.

                                   ARTICLE II

                           ESTABLISHMENT OF THE TRUST

Section 2.01: Establishment of the Trust

      The Employer hereby establishes with the Trustee a trust fund consisting
of such sums of money or other property, real or personal, as shall from time to
time be transferred to the Trustee. Such sums shall include any assets
transferred from the separate trust of a participating plan. All such money and
property, all investments and reinvestments made therewith and proceeds thereof
and all earnings and profits thereon, less any losses thereon and less the
payments which at the time of reference shall have been made by the Trustee, as
authorized herein, are referred to herein as the "fund" or "trust fund." The
fund shall be held by the Trustee in trust and dealt with in accordance with the
provisions of this agreement.

      Even though several participating plans may be funded under this master
trust agreement, the share of the fund allocable to each participating plan
shall be a separate trust fund for the exclusive benefit of the participants in
such participating plan and their beneficiaries and shall not be liable for any
expenses, debts, expenditure, or liabilities that are not properly allocable or
chargeable to such participating plan pursuant to the terms of this agreement.

      The Trustee hereby accepts this trust and agrees to hold all property
constituting the trust fund subject to the terms and conditions of this master
trust agreement and the participating plans.

      The trust is intended to be a qualified trust under section 401(a) of the
Internal Revenue Code of 1986, as amended, ("Code") and exempt from taxation
pursuant to Code section 501(a).

                                        2

<PAGE>

Section 2.02: Participation in the Fund

      In addition to the plans listed in this agreement, any pension or profit
sharing plan of the Employer may be funded in whole or in part through this
master trust provided all of the following conditions have been met:

            (a) such plan meets the requirements for qualification contained in
Code section 401;

            (b) the Employer has adopted this master trust as a funding vehicle
under such plan;

            (c) the Employer and the Trustee have consented to the Employer's
adoption of the master trust; and

            (d) the Employer has appointed the same Named Fiduciary as it has
appointed for the current participating plans.

                                  ARTICLE III

                      PROVISIONS RELATING TO THE TRUSTEE

Section 3.01: General Responsibilities

      The Trustee accepts the trust hereby created in accordance with the
documents and instruments governing the participating plans, insofar as they are
consistent with law and upon the express terms and conditions of the
participating plans, including the following:

            (a) The Trustee shall have exclusive authority and discretion to
manage, invest and control the trust fund, as provided in this agreement, and
shall have no other responsibilities other than those provided in this
agreement.

            (b) The Trustee shall exercise its powers and shall discharge its
duties with respect to the participating plans and this agreement solely in the
interests of the participants and beneficiaries and for the exclusive purpose of
providing benefits to participants and their beneficiaries and for defraying
reasonable expenses of administering the participating plans. The said powers
and duties shall be discharged with the care, skill, prudence and diligence
under the circumstances then prevailing that a prudent man acting in a like
capacity and familiar with such matters would use in the conduct of an
enterprise of like character and with like aims. The duty to invest shall be
discharged by diversifying the investments of the fund so as to minimize the
risk of large losses, unless under the circumstances it is clearly prudent not
to do so.

            (c) The Trustee shall maintain proper care and custody of all funds,
securities and other properties in the fund. The Trustee shall receive all
payments or other transfer of assets of the fund as shall be made from time to
time. However, the Trustee shall not be under any duty to determine the amount
of contributions to be paid by the Employer or to take any steps to collect such
amounts as may be due to it under each participating plan.

            (d) Whenever in the administration of a participating plan a
certification is required to be given to the Trustee or the trustee shall deem
it necessary that a matter be proved prior to taking, permitting or omitting any
action hereunder, such certification shall be duly made and said matter may be
determined to be conclusively roved by an instrument delivered to the Trustee
signed by the Named Fiduciary, or, if

                                        3

<PAGE>

the matter shall concern the authority of the plan administrator, signed as
provided in Section 5.01; but in its discretion, the Trustee may in lieu thereof
accept other evidence of the matter or may acquire such further evidence as is
reasonable. The Trustee shall be protected in acting in good faith upon any
written document reasonably believed by the Trustee to be genuine and to have
been signed by the proper party or parties.

            (e) All moneys deposited with the Trustee under any provisions
hereof may be deposited by the Trustee in a trust account. The Trustee shall be
under no duty to invest or disburse such moneys except as provided in the
applicable participating plan and this agreement.

            (f) The Trustee may consult with legal counsel (who may be counsel
for the Employer) with respect to the interpretation of the master trust
agreement or its duties hereunder or with respect to any legal proceeding or any
question of law and shall be fully protected with respect to any act taken or
omitted by it in good faith pursuant to the advice of such counsel. Expenses or
fees incurred by the Trustee in its consultation shall be paid or reimbursed
from the fund.

            (g) The Trustee may make any payment required to be made hereunder
by mailing its check in the amount thereof by first class mail in a sealed
envelope addressed to the person to whom such payment is to be made according to
the certification of the plan administrator. The Trustee shall not be required
to make any investigation to determine the identity or mailing address of any
person entitled to benefits under a participating plan and shall be entitled to
withhold making payments or giving instructions to issuing companies pertaining
to the payment of benefits until the identity and mailing addresses of persons
entitled to benefits are certified to it by the plan administrator. The Trustee
shall not be responsible in any way respecting the purpose or propriety of such
payments except for the provisions of Section 3.03. In the event that any
dispute shall arise as to the identity or rights of persons entitled to benefits
hereunder, the Trustee may withhold payment of benefits until such dispute shall
have been determined by arbitration or by a court of competent jurisdiction or
shall have been settled by written stipulation by the parties concerned.

            (h) The Trustee shall receive reasonable compensation for its
services from the Employer or the trust fund on a basis as shall be mutually
agreed upon by the Employer and the Trustee. All reasonable unreimbursed
expenses of the fund, taxes and other items not payable out of the Trustee's
compensation shall be paid from the fund. However, if the Trustee is an
individual who is compensated as a full-time employee of the Employer, he shall
receive no compensation for serving as a Trustee and all reasonable expenses
incurred as Trustee shall be paid from the fund.

            (i) The Trustee shall pay from the fund all taxes of any kind or
nature which are imposed either as a result of the creation or operation of the
fund or because of any payment made under this agreement.

            (j) The Trustee shall keep full records of the administration of the
trust which the plan administrator shall have the right to examine at any time.
To the extent that the responsibilities set forth in Section 3.01(j)(1) are
accounting and bookkeeping responsibilities, the Named Fiduciary may delegate
such responsibilities to the Plan Administrator.

                  (1) A separate plan account shall be established and
maintained for each participating plan into which shall be paid the
contributions made by the Employer for such plan, which contributions, together
with any income, gains or profits, less distributions, expenses and losses,
shall comprise a separate trust fund for such participating plan. The
establishment of a separate plan account hereunder shall be for accounting and
bookkeeping purposes only and shall not require a segregation of any

                                        4

<PAGE>

part of the assets of the trust fund, and no participating plan, or a
participant or former participant of a participating plan, shall acquire any
right to or interest in any specific asset of the fund; provided, however, that
any insurance policy or annuity contract acquired for or under a participating
plan shall be segregated by the Trustee and separately maintained. The Trustee
shall hold, invest, reinvest, manage, administer and distribute the assets of
each separate plan account, as hereinafter set forth, for the exclusive benefit
of the employees participating in such participating plan and their
beneficiaries. If an Employer maintains more than one participating plan, the
Employer shall advise the Trustee and the Plan Administrator as to which
separate plan account contributions made by it are to be credited.

                  As of the end of each plan year or more frequently as
determined by the Trustee or directed by the Employer, any increase or decrease
in the net worth of the fund attributable to investment earnings, gains, losses,
expenses and unrealized appreciation or depreciation, as determined by the
Trustee, shall be credited to or deducted from each separate plan account as
follows:

                        (A) Any expenses or portions thereof which are
separately identifiable as attributable to a separate plan account, rather than
to the fund as a whole (such as actuarial fees), shall be charged against such
account. To the extent that any expenses or portions thereof are not separately
identifiable as attributable to a separate plan account, such expenses shall be
allocated among all separate plan accounts in proportion to the value that each
such account bears to the total of all such accounts.

                        (B) Investment earnings, gains, losses, and unrealized
appreciation or depreciation shall be allocated between all separate plan
accounts in proportion to the value that each such account bears to the total of
all such accounts.

                  (2) Within sixty (60) days following the close of each plan
year and within sixty (60) days after its resignation or removal, the Trustee
shall furnish the plan administrator with a statement of the entire fund. This
statement shall contain such information as is required to comply with the
reporting and disclosure requirements of the Employee Retirement Income Security
Act of 1974, as amended, ("ERISA"). The report shall show all purchases, sales,
receipts, disbursements and other transactions effected by the Trustee during
the year or period for which the report is filed, and shall contain an exact
description, the cost as shown on the Trustee's books, and where readily
ascertainable, the market value as of the end of such period of every item held
in the trust and the amount and nature of every obligation owed by the trust.
For purposes of determining the market value of securities held by the Trustee,
such securities shall be valued as of the close of business on the last day of
the reporting period.

                  The approval by the plan administrator of the final statement
of account upon the Trustee's resignation or removal or the participating plans'
termination shall be binding as to all matters embodied in the statement, on all
parties to the trust and on all participants to the same extent as if the
account of the Trustee had been settled by a judgment or decree in an action for
judicial settlement of its account in a court of competent jurisdiction in which
the Trustee, the Employer, the plan administrator and all persons having or
claiming any interest in the trust fund were parties. If the plan administrator
disapproves the Trustee's statement and the matter cannot be satisfactorily
adjusted by the parties, the Trustee shall have the right to apply to a court of
competent jurisdiction for judicial settlement of its account.

            (k) The Trustee is authorized to sue upon, defend, compromise or
otherwise settle any obligation or liability due to or from it as Trustee
hereunder, including any aim that may be asserted for taxes under present or
future laws or to contest the same

                                        5

<PAGE>

by appropriate legal proceedings; but it shall not be required to institute or
continue litigation unless it is in possession of money sufficient for that
purpose or unless it has been indemnified by the Employer against counsel fees
and all other expenses and liabilities to which it may, in its judgment, be
subject by such action, provided further that the Trustee shall be entitled out
of recoveries of any litigation to reimbursement for its expenses in connection
therewith. Further, the Trustee is authorized with regard to an obligation due
the fund to reduce the rate of interest thereon, extend or otherwise modify it,
or to foreclose upon default or otherwise enforce any such obligation; to bid in
property on foreclosure or to take a deed in lieu of foreclosure with or without
paying consideration therefor and in connection therewith to release the
obligation on the bond secured by the mortgage.

            (l) A third party dealing with the Trustee shall not be required to
make any inquiry whether the plan administrator has instructed the Trustee or
the Trustee is otherwise authorized to take or omit any action.

            (m) A participating plan fiduciary shall be liable for a breach of
fiduciary responsibility of another fiduciary of the participating plan or this
trust as provided by law, which may include the following circumstances:

                  (1) If it participates knowingly in, or knowingly undertakes
to conceal an act or omission of such other fiduciary, knowing such act or
omission is a breach;

                  (2) If, by its failure to comply with the prudent man standard
(established in paragraph (b) of this Master Trust Agreement or the
administrative provisions of the participating plans) in the administration of
its specific responsibilities which give rise to its status as a fiduciary, it
has enabled such other fiduciary to commit a breach; or

                  (3) If it has knowledge of a breach by some other fiduciary,
unless it makes reasonable efforts under the circumstances to remedy the breach.

            (n) Any liabilities under a participating plan shall be satisfied
only out of such plans separate account. A liability shall not be satisfied by
any account of the trust fund if it is due to or arising from fraud, dishonesty,
misconduct of the Trustee or arising from acts which are in violation of the
Trustee's duties as set forth in paragraph (b) and Section 303 or which are
described in paragraph (m).

            (o) The Trustee is hereby authorized to execute all necessary
receipts and releases to any insurance companies concerned, and it shall be
under the duty, upon being advised by the plan administrator that the proceeds
of any life insurance, retirement income, endowment or annuity contact have
become payable, to take whatever steps may be indicated, with reasonable
diligence, in collecting such sums as may appear to be due.

            The Trustee shall have no responsibility for the form, genuineness,
validity, sufficiency or effect of any life insurance, retirement income,
endowment or annuity contract at any time included in the trust or for any act
of the Employer, the plan administrator, a participant or any other person which
may render any such contract void, or for the failure of any insurer to pay the
proceeds of any such contract as and when the same shall become payable or for
any delay occasioned by reason of any provision contained in any such contract,
or for the refusal of any insurer to take any action requested by the Trustee,
or for any reason whatsoever (except for the Trustee's own violation of the
prudent man rule in paragraph (b)) any contract shall lapse or otherwise become
uncollectible.

                                       6

<PAGE>

            (p) The Trustee may enter into any transaction authorized by this
agreement with trustees or legal representatives of any other trust or estate,
even though any such trustee or legal representative is also Trustee hereunder.

            (q) If the Trustee shall determine that the trust assets consist in
whole or in part of property not traded freely on a recognized market, or that
information necessary to ascertain the fair market value thereof is not readily
available to the Trustee, the Trustee shall request the Named Fiduciary to
instruct the Trustee as to the value of such property, for all purposes under
the participating plans and this agreement; and the Named Fiduciary shall comply
with such request. The value placed upon such property by the Named Fiduciary's
instructions to the Trustee shall be conclusive and binding upon the Trustee
subject to the Trustee's responsibility not to commit a prohibited transaction.
If the Named Fiduciary shall fail or refuse to instruct the Trustee as to the
value of such property within a reasonable time after receipt of the Trustee's
request to do so, the Trustee may engage a competent appraiser to fix the fair
market value of such property for all purposes hereunder. The determination of
any such appraiser as to the fair market value of such property shall be the
value reported hereunder. The reasonable fees and expenses incurred for any such
appraisal shall be deemed an expense of the Trustee and paid as provided herein.

Section 3.02: Resignation or Removal or Trustees

            (a) The Trustee may resign at any time upon delivering to the Named
Fiduciary of the participating plans a written notice of its resignation to take
effect not less than thirty (30) days after the delivery thereof, unless such
notice shall be waived.

            (b) Any Trustee appointed hereunder may be removed by the delivering
to the Trustee a written notice from the Named Fiduciary removing the Trustee,
to take effect at a date specified therein, which shall not be less than thirty
(30) days after delivery of such notice to such Trustee, unless such notice
shall be waived.

            (c) In case of resignation or removal of the Trustee, the Trustee
shall have the right to a settlement of its accounts as described in Section
3.01(j). Upon such settlement, the Trustee shall transfer to the successor
Trustee the trust fund as it may then be constituted and copies of such of its
records as relate to the trust and shall execute upon request all documents
necessary for transferring the assets of the trust and thereupon the Trustee
shall be discharged from further accountability for all matters embodied in such
settlement.

            (d) The Employer, upon its receipt of notice from the Named
Fiduciary of the resignation or removal of a Trustee, shall appoint forthwith a
successor Trustee. A successor Trustee so appointed may qualify as such by
executing, acknowledging and delivering to the Employer and to the resigned or
removed Trustee an instrument accepting such appointment, and upon delivery of
the fund, such successor Trustee without further act shall be vested with all of
the duties, rights, and powers of its predecessor Trustee with the same effect
as if it had been originally named as Trustee herein.

Section 3.03: Prohibit-Transactions

      Notwithstanding any other provision of this agreement, the Trustee is
expressly prohibited from engaging in the following actions:

            (a) diversion of any part of the fund to any purpose other than the
exclusive benefit of participants and beneficiaries under the participating
plans.

                                       7

<PAGE>

            (b) engaging in any transaction which results in a diversion of any
part or the fund to the Employer or to any other person or entity with whom or
which such a transaction is prohibited by the Code or by ERISA, including with
regard to such persons or entities: lending any part of the fund without
adequate security and a reasonable rate of interest; paying any compensation in
excess of a reasonable allowance for services actually rendered; making any
purchase of securities or other property at more than fair market value; selling
any securities or other property for less than fair market value; or making any
part of the fund available on preferential basis.

                                   ARTICLE IV

Section 4.01: Investment in Participating Plan Assets

      The Trustee shall manage the fund in the manner and for the uses and
purposes herein provided. The Trustee is authorized to manage the fund in
accordance with the funding policy; provided, however, that if an investment
manager has been appointed or if the Named Fiduciary provides specific
investment directions, the Trustee shall be subject to the directions of said
investment manager or Named Fiduciary. To the extent that a participant has
given specific investment directions as allowed by the participating plans, the
Trustee shall be subject to such directions as transmitted to it by the plan
administrator. In addition to the powers given by law, the Trustee is
authorized, within its discretion and subject to the above conditions:

            (a) To invest and reinvest the fund or any part thereof without
distinction between principal and income in any common or preferred stocks,
bonds, mortgage notes, put and call options (including the granting of options
to purchase and sell securities) or other securities or any other form of
property, real or personal on margin or otherwise (including short sales), as
authorized by law for the investment of trust funds, including common or pooled
investment funds established and maintained by the Trustee or an affiliate of
the Trustee and stock in any registered investment company which may be advised
by the Trustee or any affiliate and from which the Trustee may receive
compensation as advisor. Whenever the fund acquires units in a common/collective
trust available only to trust funds qualified under Code section 401(a), the
provisions of the particular common collective trust indenture, as amended from
time to time, with respect to investment duties, responsibilities and powers of
its trustee shall be deemed to be incorporated herein and be a part hereof to
the extent required by law. The trustee of the common/collective trust shall be
governed solely by such trust indenture. For purposes of valuation, the value of
the interest maintained by the fund in such common/collective trust shall be the
fair market value of the units held, determined in accordance with generally
recognized valuation procedures. The Employer expressly understands and agrees
that any such common/collective trust may provide for the lending of its
securities by its trustee and that the common/collective trust's trustee will
receive compensation from such trust for the lending thereof which is separate
from any compensation of the Trustee hereunder or any compensation of the
common/collective trust's trustee for the management of such trust. Further, the
Trustee shall diversify the investments of the fund so that the risk of loss
will be minimized.

            (b) To retain in cash or other property unproductive of income so
much of the fund as may be deemed advisable, or to invest in the savings
department of a banking institution, including a bank acting as Trustee, or a
bank affiliated with the Trustee, or in a loan association or building and loan
association. Such investments may include savings accounts, time deposits or
certificates of deposit with maturities of less or more than one year; however,
such investments shall be federally insured and shall bear a prevailing rate of
interest.

                                        8

<PAGE>

            (c) To sell property held in the fund at either public or private
sale for cash or on credit at such times as it may deem appropriate; to exchange
such property; to grant options for the purchase or exchange thereof without
need for the purchasers to see to the application of the purchase money.

            (d) To oppose or consent to and participate in any plan of
reorganization, recapitalization, consolidation, sale, merger, extension or
other similar plan affecting property held in the fund; to consent to any
contract, lease, mortgage, purchase, sale or other action by any corporation
pursuant to any such plan; to accept and retain property issued under such plan.

            (e) To deposit property in the fund with any protective,
reorganization or similar committee; to delegate discretionary power thereto and
to pay the reasonable share in such committee's expenses and compensation and
any assessments levied with respect to any property so deposited.

            (f) To exercise all conversion and subscription rights pertaining to
property held in the fund.

            (g) To vote in person or by proxy the stocks, securities, or other
investments which it holds as Trustee; and to execute and deliver proxies,
powers of attorney, and other agreements which it deems advisable; to exchange
the securities of any corporation or issuing authority for other securities upon
such terms and conditions as it deems advisable; to consent to or oppose any
corporate action; to pay all assessments and subscriptions as it deems
advisable; to exercise options and, in general, to exercise in respect of all
stocks, securities, or other investments which it holds as Trustee all rights,
powers and privileges as might be exercised by an individual in his own right.

            (h) To cause securities and other properties to be registered and
held in its name as Trustee or in the name of a nominee, provided that the
records of the Trustee show that all such investments are part of the fund.

            (1) To borrow money (subject to the prohibitions of Section 3.03)
for the purposes of the participating plans and, for sums so borrowed, to issue
a promissory note or bond and mortgage and to secure payment thereof by the
pledging of securities held in the fund or mortgaging real property contained
therein, and to pay interest at a reasonable rate upon sums so borrowed;
however, no insurance contract shall be pledged except to secure a loan to pay
premiums thereon. Borrowing on insurance contracts to pay premiums shall be on a
pro rata basis.

            (j) To invest the fund or any part thereof with an insurance company
under a deposit administration contract, an investment-only contract, or
contracts of like character offered by such insurance company; to apply for,
purchase, hold or transfer, pursuant to the participating plans, and in
accordance with written instructions from the plan administrator, any life
insurance, retirement income, endowment or annuity contract; to exercise any of
the rights under any such contract, in any manner for the purpose of benefiting
the participating plans.

            (k) To invest in life insurance contracts on the lives of key
employees of the Employer; such contracts shall be owned by and shall name the
Trustee as beneficiary for the benefit of the trust fund as a whole and shall
not be allocated to the account of any particular participant.

            (l) To make participant loans, if permitted, in accordance with the
provisions of each participating plan.

                                        9

<PAGE>

            (m) to receive, hold, manage, improve, repair, lease, pledge,
mortgage, or otherwise dispose of all or any part of the fund upon such terms,
prices and conditions as it deems advisable; to execute such instruments, deeds,
leases, mortgages, contracts, agreements, assignments, transfers, bills of sale,
and other documents of any kind, as it deems advisable; to pay out of trust
assets normal brokerage charges, commissions, taxes and other costs incident to
the purchase and sale of securities which are included in the cost of securities
purchased, or charges against the proceeds in the case of sales.

            (n) To employ agents with or without discretionary powers (including
investment counsel, attorneys, auditors, depositaries and proxies) for advice
and to manage the investment of the trust property. All such parties shall have
the right to rely upon and execute the written instructions of the Trustee and
shall not be obliged to inquire into the propriety of the acts or directions of
the Trustee.

            (o) Notwithstanding other provisions of this Section, under no
circumstances may the Trustee invest in any Employer securities which are not
qualifying Employer securities (as defined in ERISA section 407(d)(1)) nor shall
the Trustee invest in any Employer real property which is not qualifying
Employer real property (as defined in ERISA section 407(d)(2)). Additionally,
the Trustee may not acquire any qualifying Employer security or qualifying
Employer real property if immediately after such acquisition the aggregate fair
market value of Employer securities and Employer real property held by the trust
fund exceeds ten percent of the fair market value of all trust assets, unless
the plan is an employee stock ownership plan or an individual account plan.

            (p) Generally, to do such acts, execute all such instruments, act on
such proceedings and to exercise all rights and privileges with relation to
property constituting the fund as if it were the absolute owner thereof.

Section 4.02:

      Upon instructions of the plan administrator, the Trustee shall purchase
from an insurance company single premium annuity contracts of such amount as the
plan administrator directs for the purpose of providing the benefits to which
the participants individually or severally shall be entitled under the
particular participating plan. Any such annuity contracts shall be
nontransferable.

Section 4.03:

      All title in every contract purchased and held hereunder shall be vested
in the Trustee.

Section 4.04: Appointment of Investment Manager

      The Named Fiduciary may at any time and from time to time appoint, and
revoke the appointment of, an investment manager ("Investment Manager"), who
shall be registered as an investment advisor under the Investment Advisers Act
of 1940, shall be exempt from such registration as a trust company or as a
commercial bank authorized to conduct trust business, or shall be an insurance
company qualified to perform investment services under the laws of more than one
state of the United States and who shall acknowledge in writing to the Employer
and the Trustee that he is a fiduciary with respect to the Master Trust and each
participating plan and shall provide to them a certificate evidencing such
qualification. The Investment Manager shall not be the agent of the Trustee. The
Named Fiduciary shall notify the Trustee in writing of any such appointment (or
revocation thereof), and the Trustee shall be protected in relying upon such
appointment continuing in effect until it receives written notice from the Named
Fiduciary of its revocation. So long as, and to the extent that, any such
Investment Manager is appointed, the following provisions shall apply:

                                       10

<PAGE>

            (a) The Trustee shall invest, reinvest and retain the trust fund in
accordance with the instructions received from such Investment Manager;

            (b) With respect to assets in the trust fund, the Trustee shall
follow any instructions received by it from such Investment Manager as to the
exercise by the Trustee of the powers conferred upon it under Section 4.01(a),
(c), (d), (f), (g), (j) and (m) hereof; and

            (c) That part of the trust fund not assigned to an Investment
Manager shall be invested, reinvested and retained by the Trustee in accordance
with its own discretion.

            (d) All instructions from the Investment Manager to the Trustee
shall be in writing (or by telephone or telegraph confirmed in writing) and
shall be complete in all reasonable and necessary details. The Trustee shall
have no duty to question such instructions nor shall the Trustee incur any
liability for its actions in following such instructions or for its omissions
when no instructions are received by it.

            (e) The Employer shall indemnify and hold the Trustee or its nominee
harmless against any and all claims, actions, demands, liabilities, losses,
damages or expenses of whatsoever kind and nature, which either arise from the
failure of the Trustee to pay for property purchased by the Investment Manager
for the trust fund by reason of the insufficiency of funds in the trust fund, or
from any actions taken by the Trustee in following investment direction of the
Investment Manager or inaction by the Trustee in the absence of investment
direction by an Investment Manager, or from the trading activities conducted by
the Investment Manager on behalf of the trust fund.

            (f) If the Named Fiduciary so directs, the Investment Manager may
take and keep custody and possession of all or part of the assets of the fund,
and may perform the other functions of Trustee as set forth in this agreement.
The accounts, books and records of the Trustee shall reflect the segregation of
said portions of the fund in separate investment management accounts. The
Investment Manager's records shall at all times reflect fund assets in its
custody as assets of this trust. The Trustee shall have no further
responsibility for either the safekeeping or management of such assets. Trustee
shall continue to perform its record-keeping function under Section 3.01(j) as
to such assets, but in doing so may rely on information furnished by the
Investment Manager. Upon notification by the Named Fiduciary and the receipt of
physical custody of assets held by the Investment Manager, the Trustee shall
assume management responsibility for such assets in accordance with Articles III
and IV.

                                    ARTICLE V

          PROVISIONS RELATING TO THE PLAN ADMINISTRATOR AND EMPLOYER

Section 5.01: Plan Administrator

      Whenever a new plan administrator or a new member of an administrative
committee is appointed, the Named Fiduciary shall certify to the Trustee in
writing the name or named of the person or persons so appointed and the name of
the participating plan to which the person is so appointed, and the Trustee
shall be fully warranted in assuming that such person or persons shall continue
in office until advised differently in the same manner. Whenever the Trustee
must or may act upon the direction or approval of an administrative committee,
the Trustee may act upon written communication signed by its Chairman or
Secretary or any agent appointed in writing by all members of the committee to
act on their behalf, and the authority of any such gent shall be deemed to
continue until revoked in writing.

                                       11

<PAGE>

Section 5.02: Duties of Employer

      It shall be the duty of the Employer, subject to the provisions of each
participating plan, to pay over to the Trustee from time to time its
contributions to the trust fund as provided in each such participating plan and
to keep accurate books and records with respect to the employees and their
compensation.

      Whenever a new Named Fiduciary is appointed, the Employer shall certify to
the Trustee in writing the name or names of the person or persons so appointed,
and the Trustee shall be fully warranted in assuming that such person or persons
shall continue in office until advised differently in the same manner.

      The Employer shall deliver to the Trustee a copy of each participating
plan and any amendments thereto as soon as administratively feasible.

      The Employer shall indemnify the Trustee (if such Trustee is an individual
or individuals) by paying the costs of defending a suit, including any
settlement or judgment connected therewith, for any act or omission in
accordance with instructions received from the Employer or plan administrator
and in connection with which no gross negligence or lack of good faith can be
shown. The Employer may agree to further indemnify the Trustee as to certain or
all additional liability in connection with its duties as set forth herein,
instead of permitting the trust fund to satisfy the liability as provided in
Section 8.O1(n).

                                   ARTICLE VI

                        AMENDMENT OR TERMINATION OF TRUST

Section 6.01:

      The Employer may amend or terminate this master trust agreement at any
time; provided that no amendment affecting the Trustee may be made without its
consent, nor shall any amendment divest any benefit then vested in a participant
or his beneficiary under any participating plan. The Employer shall deliver to
the Trustee notice of any amendment or termination of a participating plan or
trust agreement.

Section 6.02:

      If a participating plan is terminated (including a partial termination),
if there is a complete discontinuance of contributions to a participating plan,
or if this master trust agreement is revoked or terminated; the Trustee shall
reserve from such plan's separate account such sums as the Trustee shall deem
necessary to settle its accounts and to discharge any obligation of the trust
fund for which the Trustee may be liable. Thereafter, the Trustee shall apply
and distribute the plan's separate account portion of the trust fund In
accordance with the provisions of the participating plan and any written
instructions of the plan administrator pursuant thereto.

Section 6.03:

      The Trustee shall have a right to have its applicable accounts settled as
provided in Section 3.01(j) of this agreement. When the trust fund shall have
been so applied or distributed and the applicable accounts of the Trustee shall
have been so settled, the Trustee shall be released and discharged from all
further accountability or liability respecting the applicable accounts, or any
part thereof so applied or distributed.

                                       12

<PAGE>

Section 6.04:

      The trust shall continue until it has been entirely transferred, paid over
or distributed pursuant to the directions of the plan administrator. If,
pursuant to the provisions of a participating plan, the Employer's liability is
assumed by any other business organization; then such other business
organization shall be deemed to succeed to the position of Employer or to be an
additional Employer under this trust agreement, as appropriate.

                                   ARTICLE VII

                            MISCELLANEOUS PROVISIONS

Section 7.01: No Reversion to Employer

      The participating plans and this master trust agreement are created for
the exclusive benefit of the employees of the Employer and shall be interpreted
in a manner consistent with being a qualified plan as defined in Code Section
401(a) and with ERISA. Subject to Article VI and this Section 7.01, the trust is
irrevocable. The corpus and income of the trust may not be diverted to or used
for other than the exclusive benefit of the participants or their beneficiaries
(except for defraying reasonable expenses of administering the participating
plans).

      Notwithstanding the above, a contribution paid by the Employer to the
trust may be repaid to the Employer under the following circumstances:

            (a) Any contributions made by the Employer are subject to the
conditions that its contribution is not due to a mistake of fact and that the
Internal Revenue service will not disallow the deduction for its contribution.
The Trustee, upon written request from the Employer, shall return to the
Employer the amount of the Employers contribution made by mistake of fact or
disallowed as a deduction under Code section 404. The Trustee shall not return
any portion of the Employer's contribution under the provisions of this
paragraph more than one year after: (1) The date on which the Employer made the
contribution by mistake of fact; or (2) The time of disallowance of the
contribution as a deduction, and then, only to the extent of the disallowance.
The Trustee will not increase the amount of the Employer contribution returnable
under this paragraph for any earnings attributable to the contribution, but the
Trustee will decrease the Employer contribution returnable for any losses
attributable to it. The Trustee may require the Employer to furnish whatever
evidence it deems necessary to confirm that the amount the Employer has
requested be returned is properly returnable under ERISA.

            (b) In the event the deduction of a contribution made by the
Employer is disallowed under Code section 404, such contribution (to the extent
disallowed) must be returned to the Employer within one year of the disallowance
of the deduction.

            (c) If the Commissioner of Internal Revenue determines that a
participating plan is not initially qualified under the Code, all contribution
made incident to that initial qualification by the Employer must be returned to
the Employer within one year after the date the initial qualification is denied
after adjustment for any earnings, losses or necessary expenditures, but only if
the application for the qualification is made by the time prescribed by law for
filing the employer's return for the taxable year in which the plan is adopted,
or such later date as the Secretary of the Treasury may prescribe.

                                       13

<PAGE>

Section 7.02: Binding Agreement

      This agreement shall be binding on the heirs, executors, administrators,
successors and assigns as such terms may be applicable to any or all parties
hereto, and on any participants, present or future.

Section 7.03: Trust Fund Exclusive Source

      All payments of benefits under a participating plan shall be made
exclusively from its separate account by means of the assets of the trust fund
as they may be constituted at the time or times of payment, and no persons shall
be entitled to look to any other source for such payments.

Section 7.04: Separability Provision

      If any provision of this agreement shall be held invalid or unenforceable,
such invalidity or unenforceability shall not affect any other provision hereof;
and this agreement shall be construed and enforced as if such provision had not
been included.

Section 7.05: Construction

      This agreement shall be construed in accordance with the laws of the state
named in the preamble, except to the extent preempted by Federal law.

Section 7.06: Copies of Agreement

      This agreement may be executed in any number of counterparts, each of
which shall be deemed an original, and said counterparts shall constitute but
one and the same instrument which may be sufficiently evidenced by any one
counterpart.

Section 7.07: Other Employer

      If any other employer adopts a participating plan, it shall be deemed
thereby to have assented to the provisions of this agreement and to have become
a party hereto as fully and completely as if it had been named herein as an
Employer and had executed same.

Section 7.08: Successor Employer

      If a corporation with which the Employer is merged or consolidated, or a
corporation which acquires substantially all of the assets of the Employer,
elects to continue the participating plans, such surviving or acquiring
corporation may notify the Trustee, in writing; and thereafter every reference
to Employer herein shall be treated as a reference to such surviving or
acquiring corporation. If the Employer is liquidated or merged or consolidated
with another company and the participating plans are not continued, then the
plan administrator shall succeed to the functions of Employer under the
participating plans and this agreement.

Section 7.09: Enforcement

      The Employer or plan administrator shall have authority to enforce this
agreement on behalf of any person claiming any interest in the fund or under a
participating plan. To protect the fund from expenses which might otherwise be
incurred, it is agreed and imposed as a condition for securing any interest in
the fund that no other person may institute or maintain any action or proceeding
against Trustee or the fund in the absence of written authority from the
Employer or plan administrator or the judgment of a court of competent
jurisdiction.

                                       14
<PAGE>

Section 7.10. Alienation

      No distribution or payment under this agreement to any participant or his
beneficiary under the participating plans shall be subject in any manner to
participation, sale, transfer, assignment or encumbrance, whether voluntary or
involuntary; and no attempt to so anticipate, sell, transfer, assign or encumber
the same shall be valid or recognized by the Trustee, nor shall any such
distribution or payment be in any way liab1e for or subject to the debts,
contracts, liabilities or torts of any person entitled to such distribution or
payment, except to such extent as may be required by law or expressly provided
in the participating plans.

Section 7.11: ERISA

      Any provision of this agreement shall be interpreted as being consistent
with the Employee Retirement Income Security Act of 1974, as amended. Where such
interpretation is not possible, such provision shall be inapplicable, void and
severable, but only to the extent that it is inconsistent with such Act and the
regulations and rulings thereunder.

                                       15

<PAGE>

      IN WITNESS WHEREOF, the Employer and the Trustee have caused this
agreement be executed by their duly authorized representatives on this 1st day
of March, 1998.

                                         EMPLOYER:

                                         By: /s/Larry T. DeAngelo
                                             -----------------------------------
                                         Title: V.P. Administration Secretary
                                         WILSON GREATBATCH, LTD.

                                         By: /s/Curt Cashmore
                                             -----------------------------------
                                         TRUSTEE: CURT CASHMORE

                                         By: /s/Larry  T. DeAngelo
                                             -----------------------------------
                                         TRUSTEE: LARRY T. DEANGELO

                                         By: /s/Scott Ferguson
                                             -----------------------------------
                                         TRUSTEE: SCOTT FERGUSON

                                         By: /s/Arthur Lalonde
                                             -----------------------------------
                                         TRUSTEE: ARTHUR LALONDE

                                         By: /s/Esther Takeuchi
                                             -----------------------------------
                                         TRUSTEE: ESTHER TAKEUCHI

                                       16
<PAGE>

                             WILSON GREATBATCH, LTD.
                                  BOARD MINUTES

The Board of Directors of Wilson Greatbatch, Ltd. hereby adopts the following
with respect to the Wilson Greatbatch Equity Plus ESOP Plan:

RESOLVED that the proposed plan document for the Wilson Greatbatch Equity Plus
ESOP Plan-Money Purchase Plan and for the Wilson Greatbatch Equity Plus ESOP
Plan-Stock Bonus Plan be adopted effective January 1, 1998. Curt Cashmore is
hereby authorized and directed to execute the plans and to execute such
amendments as may be required by the Internal Revenue Service to obtain a
favorable determination letter regarding the qualified status of the plans.

BE IT FURTHER RESOLVED that the following persons are hereby appointed the
plans' named fiduciary to have responsibility for the operation and
administration of the plans and for management and control of plan assets:

                            Curt Cashmore
                            Larry T. DeAngelo
                            Scott Ferguson
                            Arthur Lalonde
                            Esther Takeuchi

BE IT FURTHER RESOLVED that the named fiduciary act as plan administrator at any
time that there is no appointed plan administrator to be responsible for the
operation and administration of the plans and that the named fiduciary appoint
as plan administrator at this time the following persons:

                            Curt Cashmore
                            Larry T. DeAngelo
                            Scott Ferguson
                            Arthur Lalonde
                            Esther Takeuchi

BE IT FURTHER RESOLVED that Curt Cashmore, Larry T. DeAngelo, Scott Ferguson,
Arthur Lalonde, and Esther Takeuchi are hereby appointed as the Trustee to have
responsibility for the management and control of plan assets and that the
president of the corporation is hereby authorized and directed to execute the
Trust Agreement (and to execute the amendment attached thereto and made
effective as of the effective date of the Trust Agreement).

I do hereby certify the foregoing to be a true and correct excerpt from the
minutes of the Board of Directors meeting held on February 10, 1998 (Meeting
Date).

       December 31, 1998                            Larry T. DeAngelo
       -----------------                           -------------------
             Date                                  Corporate Secretary

<PAGE>

                                 FIRST AMENDMENT

                                       to

                   WILSON GREATBATCH LTD. EQUITY PLUS PLAN -
                             MASTER TRUST AGREEMENT

      Under Article VI of the Wilson Greatbatch Ltd. Equity Plus Plan - Master
Trust Agreement (the "Agreement"), Wilson Greatbatch Ltd. (the "Employer") and
the Trustee have the right to amend the Agreement at any time. Therefore, the
Employer and the Trustee hereby amend the Plan in the following respect:

      1. Effective January 1, 1999, the first sentence of Section 3.01(g) is
hereby deleted in its entirety, and is replaced by the following:

            The Trustee may make any payment or distribution directed by
            the plan  administrator to be made from the trust by mailing
            a check  for the  specified  amount,  or by  delivering  the
            specified  property,  to the  person  to  whom,  or on whose
            behalf, the payment or distribution is to be made.

            In all other respects, the Agreement will remain unchanged.

                                          WILSON GREATBATCH LTD.

Date: March 27, 1999                      By /s/ Larry T. DeAngelo
      --------------                      ---------------------------------

                                          TRUSTEE:

Date: March 17, 1999                      /s/ Curt Cashmore
      --------------                      ---------------------------------
                                          Curt Cashmore

Date: March 27, 1999                      /s/ Larry T. DeAngelo
      --------------                      ---------------------------------
                                          Larry T. DeAngelo

Date: March 16, 1999                      /s/ Barbara Davis
      --------------                      ---------------------------------
                                          Barbara Davis

Date: March 24, 1999                       /s/ Arthur Lalonde
      --------------                      ---------------------------------
                                          Arthur Lalonde

Date: March 17, 1999                      /s/ Esther Takeuchi
      --------------                      ---------------------------------
                                          Esther Takeuchi

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