Document:

<PAGE>

                                                                  Execution Copy

                                                                   Exhibit 10.47

================================================================================

                          SECURITIES PURCHASE AGREEMENT

                                      among

                               CLEAN HARBORS, INC.

                                       and

                     THE BUYERS LISTED ON SCHEDULE A HERETO

                                September 6, 2002

================================================================================

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                   Page
                                                                                <C>
1. PURCHASE AND SALE OF PREFERRED SHARES.......................................... 2

2. BUYER'S REPRESENTATIONS AND WARRANTIES......................................... 2

3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.................................. 4

4. COVENANTS...................................................................... 29

5. TRANSFER AGENT INSTRUCTIONS.................................................... 31

6. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL................................. 32

7. CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.............................. 33

8. INDEMNIFICATION................................................................ 36

9. MISCELLANEOUS.................................................................. 37
</TABLE>

<PAGE>

                                    EXHIBITS

Exhibit A    -  Form of Certificate
Exhibit B    -  Form of Investors Rights Agreement
Exhibit C    -  Form of Voting Agreement
Exhibit D       Irrevocable Transfer Agent Instructions
Exhibit E       Sale Order
Exhibit F    -  Form of Company Counsel Opinion

                                      -ii-

<PAGE>

                                      INDEX
<TABLE>
<CAPTION>
                                                                                              Page
                                                                                           <C>
19.99% Rule..................................................................................  5
1933 Act.....................................................................................  1
1934 Act.....................................................................................  8
Agreement....................................................................................  1
Articles of Organization.....................................................................  6
Bankruptcy Code.............................................................................. 29
Business Day.................................................................................  2
Business Intellectual Property............................................................... 19
Business Trade Secrets....................................................................... 19
Buyers.......................................................................................  1
By-laws......................................................................................  7
CAA.......................................................................................... 24
Capital Stock................................................................................  7
CERCLA....................................................................................... 24
Certificate..................................................................................  1
Closing......................................................................................  2
Closing Date.................................................................................  2
Code......................................................................................... 15
Common Stock.................................................................................  1
Company......................................................................................  1
Company Financial Statements.................................................................  9
Congress..................................................................................... 34
Congress Loan Documents...................................................................... 35
Congress Loans............................................................................... 34
Copyrights................................................................................... 20
CSD Acquisition..............................................................................  1
CSD Acquisition Assets....................................................................... 28
CSD Acquisition Documents.................................................................... 28
CSD Balance Sheets...........................................................................  9
CSD Business.................................................................................  5
CWA.......................................................................................... 24
DTC.......................................................................................... 32
Employee Plans............................................................................... 15
Environmental Claims......................................................................... 23
Environmental Laws........................................................................... 24
Environmental Liabilities.................................................................... 24
Environmental Lien........................................................................... 24
Environmental Permits........................................................................ 24
EPCRA........................................................................................ 24
ERISA........................................................................................ 15
ERISA Affiliate.............................................................................. 15
FIFRA........................................................................................ 24
Financing Agreement..........................................................................  1
</TABLE>

                                      -iii-

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                              <C>
Foreign Pension Plan............................................................................................ 16
FRBP............................................................................................................ 34
GAAP............................................................................................................  8
Governmental Authority.......................................................................................... 24
Handle.......................................................................................................... 24
Hazardous Materials............................................................................................. 25
Indebtedness.................................................................................................... 12
Indemnified Liabilities......................................................................................... 37
Indemnitees..................................................................................................... 37
Initial Lenders.................................................................................................  1
Intellectual Property........................................................................................... 19
Intellectual Property Contracts................................................................................. 20
Investment Company Status....................................................................................... 29
Investors Rights Agreement......................................................................................  1
Irrevocable Transfer Agent Instructions......................................................................... 32
Legal Requirements.............................................................................................. 14
Licensed Intellectual Property.................................................................................. 20
Liens...........................................................................................................  6
Material Adverse Effect.........................................................................................  5
McKim...........................................................................................................  1
OSHA............................................................................................................ 24
Patents......................................................................................................... 20
PBGC............................................................................................................ 16
Permits......................................................................................................... 26
Policies........................................................................................................ 25
Preferred Shares................................................................................................  2
Preferred Stock.................................................................................................  1
Preferred Stock Certificates....................................................................................  2
Principal Market................................................................................................ 31
Purchase Price..................................................................................................  2
RCRA............................................................................................................ 24
Registered...................................................................................................... 20
Regulation D....................................................................................................  3
Release......................................................................................................... 25
Remedial Action................................................................................................. 25
Required Policies............................................................................................... 25
Resolutions..................................................................................................... 35
Rule 144........................................................................................................  3
Sale Order...................................................................................................... 34
SEC.............................................................................................................  3
SEC Documents...................................................................................................  8
Securities......................................................................................................  5
Series B Preferred Stock........................................................................................  6
Shareholder's Rights Plan....................................................................................... 28
Stockholder Approval............................................................................................ 32
Subsidiaries....................................................................................................  4
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                       <C>
Suit..................................................................... 18
Technology Systems....................................................... 20
Title IV Plan............................................................ 15
TOSCA.................................................................... 24
Trade Secrets............................................................ 20
Trademarks............................................................... 20
Transaction Documents....................................................  5
Voting Agreement.........................................................  2
Voting Shareholders......................................................  1
</TABLE>

                                     -iii-

<PAGE>

                          SECURITIES PURCHASE AGREEMENT

                  SECURITIES PURCHASE AGREEMENT (the "Agreement"), dated as of
September 6, 2002, by and among Clean Harbors, Inc., a Massachusetts
corporation, with headquarters located at 1501 Washington Street, Braintree,
Massachusetts 02184 (the "Company") and the Buyers listed on the signature pages
hereto (the "Buyers").

                  WHEREAS, the Company proposes to purchase substantially all of
the assets of the Chemical Services Division of Safety-Kleen Corp. and its
subsidiaries, each as a debtor-in-possession (collectively, "CSD"), pursuant to
Sections 363/365 of the United States Bankruptcy Code (the "CSD Acquisition");

                  WHEREAS, simultaneously herewith, the Company and certain of
its Subsidiaries, as borrowers, certain of the Company's Subsidiaries, as
guarantors, the lenders from time to time parties thereto, as lenders, (the
"Initial Lenders") and Ableco Finance, LLC, as agent for the Initial Lenders,
have entered into a Financing Agreement, dated as of the date hereof (such
agreement as in effect on the date hereof, the "Financing Agreement"), pursuant
to which the Initial Lenders have agreed to make senior and senior subordinated
loans and other extensions of credit to the Company to finance the CSD
Acquisition, to refinance certain indebtedness and for other proper purposes;

                  WHEREAS, the Buyers, each of whom is an affiliate of one of
the Initial Lenders, desire to purchase from the Company, and the Company
desires to sell and issue to the Buyers shares of Series C Convertible Preferred
Stock, par value $0.01 per share, of the Company (the "Preferred Stock"), which
are convertible into shares (the "Conversion Shares") of the Company's Common
Stock, par value $0.01 per share (the "Common Stock"), and have the rights,
restrictions, privileges and preferences set forth in the Certificate of Vote of
Directors Establishing a Series of a Class of Stock, (the "Certificate"), which
shall contain the vote and the description of Series C Convertible Preferred
Stock in the form attached hereto as Exhibit A;

                  WHEREAS, contemporaneously with the execution and delivery of
this Agreement, the Company, the Buyers and Alan S. McKim and the Trustees of
the Alan S. McKim Children's Trust, who are significant shareholders of the
Company (collectively, "McKim") are executing and delivering to each other an
Investors Rights Agreement substantially in the form attached hereto as Exhibit
B (the "Investors Rights Agreement"), pursuant to which the Company has agreed,
among other things, to provide to the Buyers certain registration rights under
the Securities Act of 1933, as amended (the "1933 Act") and the rules and
regulations promulgated thereunder and applicable state securities laws and
McKim has, among other things, agreed to grant the Buyers certain rights to
tag-along to sales of Common Stock by McKim;

                  WHEREAS, contemporaneously with the execution and delivery of
this Agreement, the Company and certain shareholders of the Company (the "Voting
Shareholders") are executing and delivering to the Buyers a Voting Agreement
substantially in the form attached hereto as Exhibit C (the "Voting Agreement"),
pursuant to which the Voting Shareholders have

                                      -1-

<PAGE>

agreed, among other things, to vote in favor of any matter brought to a vote of
the shareholders of the Company regarding the transactions contemplated hereby
and the other Transaction Documents (as defined herein); and

                  WHEREAS, the location of defined terms in this Agreement is
set forth on the Index of Terms attached hereto.

                  NOW, THEREFORE, in consideration of the foregoing premises and
the covenants and agreements contained herein, the parties agree as follows:

                  1. PURCHASE AND SALE OF PREFERRED SHARES.

                     a. Purchase of Preferred Shares. Subject to the
satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below
and in reliance on the representations, warranties, covenants and other
agreements herein, the Company shall issue and sell to each Buyer, and each
Buyer severally agrees to purchase from the Company, the respective number of
shares of Preferred Stock (the "Preferred Shares") set forth opposite such
Buyer's name on Schedule A (the "Closing") at a purchase price of $1,000 per
share, or an aggregate purchase price for all Preferred Shares of $25,000,000
the "Purchase Price").

                     b. The Closing. The date and time of the Closing (the
"Closing Date") shall be 10:00 a.m., New York City time, on September 9, 2002,
or if earlier, on the first Business Day after which all conditions to closing
identified in Sections 6 and 7 hereof have been satisfied or waived by the party
entitled to grant such waiver (or such later date as is mutually agreed to by
the Company and the Buyers). The Closing shall occur on the Closing Date at the
offices of Schulte Roth & Zabel LLP, 919 Third Avenue, New York, New York 10022.
For all purposes of this Agreement, the term "Business Day" means any day other
than Saturday, Sunday or other day on which commercial banks in The City of New
York are authorized or required by law to remain closed.

                     c. Payment and Delivery. Subject to the terms and
conditions of this Agreement, on the Closing Date,

                        (i)  each Buyer shall pay its respective share of the
Purchase Price set forth on Schedule A to the Company for the Preferred Shares
to be issued and sold to such Buyer by wire transfer of immediately available
funds in accordance with the Company's written wire instructions; and

                        (ii) the Company shall deliver to each Buyer stock
certificates (in the denominations as such Buyer shall request) (the "Preferred
Stock Certificates"), representing such number of the Preferred Shares which
such Buyer is then purchasing hereunder, in each case, duly executed on behalf
of the Company and registered in the name of such Buyer or its nominee(s).

                  2. BUYER'S REPRESENTATIONS AND WARRANTIES.

                  Each Buyer represents and warrants with respect to only itself
that:

                                      -2-

<PAGE>

                  a. Organization and Qualification. Such Buyer is an entity
duly authorized and validly existing under the laws of its jurisdiction of
organization and has the requisite power to carry on its business as it is now
being conducted and currently proposed to be conducted.

                  b. Authorization; Enforcement; Validity. This Agreement and
the Investors Rights Agreement have been duly and validly authorized, executed
and delivered on behalf of such Buyer and are legal, valid and binding
obligations of such Buyer, enforceable against such Buyer in accordance with
their terms, subject as to enforceability to general principles of equity and to
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and
other similar laws relating to, or affecting generally, the enforcement of
applicable creditors' rights and remedies.

                  c. Investment Purpose. Such Buyer is acquiring the Securities
for its own (or an Affiliate's) account and not with a view towards, or for
resale in connection with, the public sale or distribution thereof, except
pursuant to sales registered or exempted under the 1933 Act; provided, however,
that by making the representations herein, such Buyer does not agree to hold any
of the Securities for any minimum or other specific term and reserves the right
to dispose of the Securities at any time.

                  d. Accredited Investor Status. Such Buyer is an "accredited
investor" as that term is defined in Rule 501(a)(3) of Regulation D ("Regulation
D") as promulgated by the United States Securities and Exchange Commission (the
"SEC") under the 1933 Act.

                  e. Reliance on Exemptions. Such Buyer understands that the
Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of the United States federal and state
securities laws and that the Company is relying upon the truth and accuracy of,
and such Buyer's compliance with, the representations, warranties, agreements,
acknowledgments and understandings of such Buyer set forth herein in order to
determine the availability of such exemptions and the eligibility of such Buyer
to acquire the Securities.

                  f. Transfer or Resale. Such Buyer understands that except as
provided in the Investors Rights Agreement, the Securities have not been and are
not being registered under the 1933 Act or any state securities laws, and may
not be offered for sale, sold, assigned or transferred unless (i) subsequently
registered thereunder, (ii) such Securities to be sold, assigned or transferred
may be sold, assigned or transferred pursuant to an exemption from such
registration, or (iii) such Buyer provides the Company with reasonable
assurance, upon request by the Company, that such Securities can be sold,
assigned or transferred pursuant to Rule 144 promulgated under the 1933 Act (or
a successor rule thereto) ("Rule 144").

                  g. Legends. Such Buyer understands that, until such time as
the sale of the Securities have been registered under the 1933 Act as
contemplated by the Investors Rights Agreement, the stock certificates
representing the Securities, except as set forth below, shall bear a restrictive
legend in substantially the following form (and a stop-transfer order may be
placed against transfer of such stock certificates):

                                      -3-

<PAGE>

                     THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
                     BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                     AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
                     SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
                     OR ASSIGNED (I) EXCEPT PURSUANT TO (A) AN EFFECTIVE
                     REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
                     SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
                     SECURITIES LAWS OR (B) PURSUANT TO RULE 144 UNDER SAID ACT
                     OR (C) ANY OTHER EXEMPTION FROM REGISTRATION UNDER THE 1933
                     ACT RELATING TO THE DISPOSITION OF SECURITIES.

The legend set forth above shall be removed and the Company shall issue a
certificate without such legend to the holder of the Securities upon which it is
stamped, if, (i) such Securities are registered for resale under the 1933 Act,
(ii) in connection with a sale transaction, such holder provides the Company
with an opinion of counsel, in a form reasonably acceptable to the Company, to
the effect that a public sale, assignment or transfer of the Securities may be
made without registration under the 1933 Act, or (iii) such holder provides the
Company with reasonable assurances that the Securities can be sold pursuant to
Rule 144 without any restriction as to the number of securities acquired as of a
particular date that can then be immediately sold.

                  3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

                  The Company represents and warrants to each of the Buyers (it
being understood and agreed that, unless the context otherwise requires, such
representations and warranties are made assuming the completion of the CSD
Acquisition in accordance with the CSD Acquisition Documents and after giving
full effect thereto), that:

                     a. Organization and Qualification. The Company and its
"Subsidiaries" (which for purposes of this Agreement means any entity in which
the Company, directly or indirectly, owns 50% or more of the capital stock or
other equity, economic or similar interests or owns capital stock or holds an
equity, economic or similar interest which ownership entitles the Company to
elect 50% or more of the board of directors or similar governing body of such
entity, and assuming the CSD Acquisition has been completed) are entities duly
organized and validly existing in good standing under the laws of the
jurisdiction in which they are incorporated, and have the requisite corporate or
other power and authorization to own their properties and to carry on their
business as now being conducted and currently proposed to be conducted. Each of
the Company and its Subsidiaries is duly qualified as a foreign corporation to
do business and is in good standing in every jurisdiction in which its ownership
of property or the nature of the business conducted by it makes such
qualification necessary, except to the extent that the failure to be so
qualified or be in good standing would not have a Material Adverse Effect. As
used in this Agreement, "Material Adverse Effect" means any material adverse
effect on the business, properties, assets, operations, results of operations,
prospects or financial condition of the Company and its Subsidiaries, taken as a
whole, on the business, assets

                                      -4-

<PAGE>

(tangible and intangible), accounts receivable, rights, contracts, agreements,
instruments, equipment, inventory, intellectual property, claims, property (real
or otherwise), licenses, Permits, authorizations, approvals, bank accounts,
lockbox arrangements, banks and records and goodwill and liabilities of the
Chemical Services Division of Safety-Kleen Services, Inc. acquired or assumed
(by agreement, operation of law or otherwise) by the Company pursuant to the CSD
Acquisition Documents (the "CSD Business"), or on the transactions contemplated
hereby or by the agreements and instruments to be entered into in connection
herewith, or on the authority or ability of the Company to perform its
obligations under the Transaction Documents (as defined below) or the
Certificate. A true, complete and correct list of the Company's Subsidiaries is
set forth on Schedule 3(a).

                  b. Authorization; Enforcement; Validity. The Company has the
requisite corporate power and authority to enter into and perform its
obligations under this Agreement, the Investors Rights Agreement, the Voting
Agreement, the Irrevocable Transfer Agent Instructions (as defined in Section 5)
and each of the other agreements entered into by the parties hereto in
connection with the transactions contemplated by this Agreement, including the
Financing Agreement, the Congress Loan Documents and the CSD Acquisition
Documents (the "Transaction Documents"), and to issue the Preferred Shares and
the Conversion Shares issuable upon conversion of the Preferred Shares in
accordance with the terms of the Certificate (the Preferred Shares and the
Conversion Shares collectively referred to as the "Securities") in accordance
with the terms hereof and thereof. The execution and delivery of the Transaction
Documents by the Company and the execution and filing of the Certificate by the
Company and the consummation by it of the transactions contemplated hereby and
thereby, including, without limitation, the issuance and reservation for
issuance of the Preferred Shares and the Conversion Shares issuable upon
conversion thereof have been duly authorized by the Company's Board of Directors
and no further consent or authorization is required by the Company, its Board of
Directors or its stockholders (except to the extent that stockholder approval
may be required pursuant to the rules of the NASD for the issuance of a number
of Conversion Shares greater in the aggregate than 19.99% of the number of
shares of Common Stock outstanding immediately prior to the Closing Date (the
"19.99% Rule")). The Transaction Documents have been duly executed and delivered
by the Company. The Transaction Documents constitute the legal, valid and
binding obligations of the Company, enforceable against the Company in
accordance with their terms, except as such enforceability may be limited by
general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of creditors' rights and remedies. The
Certificate will be filed on or prior to the Closing Date with the Secretary of
State of the Commonwealth of Massachusetts and will be in full force and effect
on or prior to the Closing Date, enforceable against the Company in accordance
with its terms and shall not have been amended unless in compliance with its
terms.

                  c. Capitalization. The authorized capital stock of the Company
consists of (i) 20,000,000 shares of Common Stock, of which as of August 31,
2002 12,164,312 shares are issued and outstanding, no shares are held in
treasury, 2,087,625 shares are reserved for issuance pursuant to the Company's
stock option and purchase plans, and no shares are issuable or reserved for
issuance pursuant to securities (other than the Preferred Shares and shares
reserved for issuance pursuant to the Company's stock option and purchase plans
and 340,480 shares of Common Stock reserved for issuance pursuant to the
conversion of the Series

                                      -5-

<PAGE>

B Convertible Preferred Stock, par value $0.01 per share, of the Company (the
"Series B Preferred Stock")) and 1,237,808 shares of Common Stock reserved for
issuance pursuant to the exercise of outstanding warrants to purchase Common
Stock) exercisable or exchangeable for, or convertible into, shares of Common
Stock and (ii) 2,000,000 shares of preferred stock, 894,585 shares of which are
designated Series A Preferred Stock of the Company, none of which are issued and
outstanding and 156,416 shares of which of which are designated as Series B
Convertible Preferred Stock, 112,000 of which are issued and outstanding. All of
such outstanding shares have been, or upon issuance will be, validly issued and
are fully paid and nonassessable. Except as disclosed in Schedule 3(c), (A) no
Capital Stock of the Company or any of its Subsidiaries are subject to
preemptive rights or any other similar rights (arising under Massachusetts law,
the Company's Articles of Organization (defined below) or By-laws (defined
below) or any agreement or instrument to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound) or any pledges, claims, liens, mortgages, charges, encumbrances and
security interests of any kind or nature whatsoever (collectively, "Liens" )
granted or created by the Company; (B) there are no outstanding debt securities
issued by the Company or any of its Subsidiaries which are convertible or
exercisable into or exchangeable for Capital Stock of the Company or any of its
Subsidiaries; (C) there are no outstanding options, warrants, scrip, rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities or rights convertible into or exchangeable for, any Capital Stock of
the Company or any of its Subsidiaries, or contracts, commitments,
understandings or arrangements by which the Company or any of its Subsidiaries
is or may become bound to issue additional Capital Stock of the Company or any
of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls
or commitments of any character whatsoever relating to, or securities or rights
convertible into or exercisable or exchangeable for, any Capital Stock of the
Company or any of its Subsidiaries; (D) there are no agreements or arrangements
under which the Company or any of its Subsidiaries is obligated to register the
sale of any of their Capital Stock under the 1933 Act (other than the Investors
Rights Agreement); (E) there is no outstanding Capital Stock or instrument of
the Company or any of its Subsidiaries which contain any redemption or similar
provisions, and there are no contracts, commitments, understandings or
arrangements by which the Company or any of its Subsidiaries is or may become
bound to redeem any Capital Stock or any debt security of the Company or any of
its Subsidiaries (other than in the Certificate); (F) there is no outstanding
Capital Stock or instrument of the Company or any of its Subsidiaries containing
anti-dilution or similar provisions that will be triggered by the issuance of
the Securities as described in this Agreement; and (G) the Company does not have
any stock appreciation rights or "phantom stock" plans or agreements or any
similar plan or agreement. The Company has furnished to each Buyer (or its
representatives) true, complete and correct copies of the Company's Articles of
Organization, as amended and as in effect on the date hereof (the "Articles of
Organization"), and the Company's By-laws, as amended and as in effect on the
date hereof (the "By-laws"), and the terms of all securities convertible into or
exercisable or exchangeable for Capital Stock and the material rights of the
holders thereof in respect thereto, including, without limitation, stock options
granted under any benefit plan or stock option plan of the Company. For purposes
of this Agreement, the term "Capital Stock" means (A) with respect to any Person
that is a corporation, any and all shares, interests, participations or other
equivalents (however designated and whether or not voting) of corporate stock,
and (B) with respect to any Person that is not a corporation, any and all
partnership, membership or other equity interests of such Person.

                                      -6-

<PAGE>

               d.   Issuance of Securities. The Preferred Shares are duly
authorized and, upon issuance in accordance with the terms hereof, shall be (i)
validly issued, fully paid and non-assessable, (ii) free from all taxes, and
Liens with respect to the issuance thereof and (iii) entitled to the rights and
preferences set forth in the Certificate. As of the Closing Date, at least
2,380,953 shares of Common Stock (subject to adjustment pursuant to the
Company's covenant set forth in Section 4(e) below) will have been duly
authorized and reserved for issuance of the Conversion Shares. Upon conversion
or issuance in accordance with the Certificate, as applicable, the Conversion
Shares will be validly issued, fully paid and nonassessable and free from all
taxes, liens and charges with respect to the issue thereof, with the holders
being entitled to all rights accorded to a holder of Common Stock. Based in part
on the representations made by the Buyers in Section 2 hereof, the issuance by
the Company of the Securities is exempt from registration under the 1933 Act.

               e.   No Conflicts. The execution, delivery and performance of the
Transaction Documents by the Company, the performance by the Company of its
obligations under the Certificate, the consummation by the Company of the
transactions contemplated hereby and thereby (including, without limitation, the
reservation for issuance and issuance of the Conversion Shares) and the
performance by the Company and its Subsidiaries of their respective obligations
under the CSD Acquisition Documents and the consummation by the Company and its
Subsidiaries of the transactions contemplated by the CSD Acquisition Documents
do not and will not (i) result in a violation of the Articles of Organization or
the By-laws; (ii) conflict with, or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
material agreement, indenture, lease or instrument, permit, concession,
franchise or license to which the Company or any of its Subsidiaries is a party;
(iii) result in a violation of any law, rule, regulation, order, judgment or
decree (including federal and state securities laws and regulations and the
rules and regulations of the Principal Market (as defined below)) applicable to
the Company or any of its Subsidiaries or by which any property or asset of the
Company or any of its Subsidiaries is bound or affected. Neither the Company nor
its Subsidiaries is in violation, in any material respect, of any term of its
Articles of Organization or its By-laws or their organizational charter or
by-laws or other constituent documents, respectively. Except as disclosed in
Schedule 3(e) and as specifically contemplated by this Agreement and as required
under the 1933 Act or under any applicable state securities laws, the Company is
not required to obtain any consent, authorization or order of, or make any
filing or registration with, any court or Governmental Authority in order for it
to execute, deliver or perform any of its obligations under or contemplated by
the Transaction Documents, to perform its obligations under the Certificate in
accordance with the terms hereof or thereof, to complete the CSD Acquisition or
to perform its obligations under any of the CSD Acquisition Documents. Except as
disclosed in Schedule 3(e), all consents, authorizations, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof. The
Company and its Subsidiaries are unaware of any facts or circumstances which
might give rise to any of the foregoing. The Company is not in violation of the
listing requirements of the Principal Market and has no actual knowledge of any
facts which would reasonably lead to delisting or suspension of the Common Stock
by the Principal Market in the foreseeable future.

               f.   SEC Documents; Financial Statements.

                                      -7-

<PAGE>

               (i)  Except as set forth on Schedule 3(f), since January 1, 2001,
the Company has filed all reports, schedules, forms, statements and other
documents required to be filed by it with the SEC pursuant to the reporting
requirements of the Securities Exchange Act of 1934, as amended (the "1934 Act")
(all of the foregoing filed prior to the date hereof and all exhibits included
therein and financial statements and schedules thereto and documents
incorporated by reference therein being hereinafter referred to as the "SEC
Documents"). As of the date of filing of such SEC Documents, such SEC Documents,
as it may have been subsequently amended by filings made by the Company with the
SEC prior to the date hereof, complied in all material respects with the
requirements of the 1934 Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents. None of the SEC
Documents, as of the date filed and as they may have been subsequently amended
by filings made by the Company with the SEC prior to the date hereof, contained
any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading. As of their respective dates, the financial statements of the
Company included in the SEC Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto. Such financial statements have been
prepared in accordance with generally accepted accounting principles,
consistently applied, during the periods involved (except (i) as may be
otherwise indicated in such financial statements or the notes thereto, or (ii)
in the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary statements) and fairly present in all
material respects the consolidated financial position of the Company and its
Subsidiaries as of the dates thereof and the results of its operations and cash
flows for the periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments). None of the Company nor any of its
Subsidiaries have any material liabilities or obligations of any nature (whether
known or unknown, and whether absolute, accrued, contingent, matured,
liquidated, unasserted or otherwise) of a kind required by generally accepted
accounting principles ("GAAP") to be set forth on a financial statement that is
not fully and adequately reflected or reserved against in the financial
statements contained in the Company's most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q filed with the SEC, other than liabilities
expressly assumed in connection with the CSD Acquisition and liabilities and
obligations incurred since June 30, 2002 in the ordinary course of business
consistent with past practice that are not material in amount.

               (ii) The Company has delivered to each Buyer (or its
representatives) true, complete and correct copies of the audited balance sheets
of the CSD Business as of the fiscal years of the CSD Business ended August 31,
1999, 2000 and 2001, together with a report thereon from Arthur Andersen LLP
(collectively, the "CSD Balance Sheets"). The Company has also delivered to each
Buyer (or its representatives) true, complete and correct copies of the
unaudited consolidated balance sheet of the Company and its Subsidiaries as of
June 30, 2002 and the related consolidated statements of operations, cash flows
and stockholders' equity for the six month period then ended (the "Company
Financial Statements ". The CSD Balance Sheets and the Company Financial
Statements fairly present the consolidated financial condition of the Company
and its Subsidiaries or the CSD, as the case may be, as at the respective dates
thereof and the consolidated results of operations of the Company and its
Subsidiaries for the fiscal periods ended on such respective dates, all in
accordance with GAAP. To the best of the Company's knowledge, after due inquiry
of the

                                      -8-

<PAGE>

management of the CSD responsible for the preparation of the CSD Balance Sheets,
the CSD Balance Sheets fairly present in accordance with GAAP in all material
respects each item of working capital, line item by line item as of the dates
indicated thereon.

                    (iii) The Company has heretofore furnished to each Buyer (A)
projected quarterly balance sheets and statements of operations and cash flows
of the Company and its Subsidiaries (after giving effect to the CSD Acquisition)
for the period from October 1, 2002 through December 31, 2004 and (B) projected
annual balance sheets and statements of operations and cash flows of the Company
and its Subsidiaries for the fiscal years ending in 2002 through 2007. Such
projections are believed by the Company to be reasonable, have been prepared on
a reasonable basis and in good faith by the Company in light of (w) the
historical financial performance of the Company, (x) to the best knowledge of
management of the Company, after reasonable inquiry, the projected financial
performance of CSD, (y) current and reasonably foreseeable business conditions
and (z) believed by the Company to be reasonable at the time made and upon the
best information then reasonably available to the Company. The Company is not
aware of any facts or information that would lead it to believe that such
projections are incorrect or misleading in any material respect.

               g.   Full Disclosure. No other information provided by or on
behalf of the Company to the Buyers which is not included in the SEC Documents,
including, without limitation, information referred to in Section 2(f), contains
any untrue statement of a material fact or omits to state any material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they are or were made, not misleading. The Company is
not required to file and will not be required to file any agreement, note,
lease, mortgage, deed or other instrument entered into prior to the date hereof
and to which the Company or any Subsidiary is a party or by which the Company or
any Subsidiary is bound which has not been previously filed as an exhibit to its
reports filed with the SEC under the 1934 Act.

               h.   Absence of Certain Changes. Since June 30, 2002, neither the
Company nor any of its Subsidiaries has:

                    (i)   suffered any Material Adverse Effect or any event,
change occurrence or development, reasonably likely to cause or have a Material
Adverse Effect;

                    (ii)  conducted its business and operations other than in
the ordinary course of business and consistent with past practices;

                    (iii) except for the dividend of $1.00 per share paid in
cash on July 15, 2002, to the holders of the Company's 112,000 outstanding
shares of Series B Convertible Preferred Stock, declared, set aside or paid any
dividend on, or other distribution (whether in cash, stock or property, or any
combination thereof) in respect of, any of the Company's or any of its
Subsidiary's Capital Stock, or purchased, redeemed or otherwise acquired or
agreed to purchase, redeem or otherwise acquire, any Capital Stock of the
Company or its Subsidiaries or any options, warrants, calls or rights to acquire
any such Capital Stock, other than dividends from any wholly-owned Subsidiary of
the Corporation to the Corporation or another wholly-owned Subsidiary of the
Corporation;

                                      -9-

<PAGE>

               (iv)   undergone a material change in accounting method,
principles or practices, except as may be required by a concurrent change in
GAAP or disclosed in the footnotes to any of the financial statements included
in the SEC Documents;

               (v)    except as required by this Agreement, authorized for
issuance, sold, delivered, granted or issued any options, warrants, calls,
subscriptions or other rights for, or otherwise agreed or committed to issue,
sell, deliver or grant any shares of any class of Capital Stock of the Company
or any of its Subsidiaries or any securities convertible into or exchangeable or
exercisable for shares of any class of Capital Stock of the Company or its
Subsidiaries;

               (vi)   except in the ordinary course of business and consistent
with past practice and except in connection with the Financing Agreement, the
Congress Loan Documents and in connection with the CSD Acquisition, as described
in Schedule 3(h)(vi), (A) created or incurred any indebtedness for borrowed
money, (B) assumed, guaranteed, endorsed or otherwise as an accommodation become
responsible for the obligations of any other Person, (C) made any loans or
advances to any other Person, or (D) mortgaged, pledged or subjected to any
Lien, any asset having a book or market value in excess of $100,000;

               (vii)  granted any increase in the base compensation of, or made
any other material change in employment terms for, any of its directors,
officers and employees, except for increases or changes based upon changed
responsibilities or duties and increases or changes made in the ordinary course
of business consistent with past practice;

               (viii) adopted, modified or terminated any bonus, profit-sharing,
incentive, severance or other plan or contract for the benefit of any of its
directors, officers and employees other than changes which do not materially
increase the aggregate cost of such plan or contract;

               (ix)   except for the provision of services or sales in the
ordinary course of business and consistent with past practice, sold, leased,
licensed, transferred or otherwise disposed of any of its assets or property
having a book or market value in excess of $100,000;

               (x)    entered into any new line of business, or incurred or
committed to incur any capital expenditures, obligations or liabilities in
connection therewith in excess of $1,000,000 in the aggregate;

               (xi)   other than the CSD Acquisition, acquired or agreed to
acquire by merging or consolidating with, or agreed to acquire by purchasing a
substantial portion of the assets of, or in any other manner, any business of
any other Person for aggregate consideration valued at more than $500,000;

               (xii)  made any cancellation or waiver of (A) any right material
to the operation of the business of the Company or its Subsidiaries, or (B) any
debts or claims against any affiliate of the Company;

                                      -10-

<PAGE>

                    (xiii) made any disposition of, or failed to keep in effect
any material right in, to or for the use of any material Intellectual Property
of the Company or its Subsidiaries;

                    (xiv)  suffered any damage, destruction or loss, whether or
not covered by insurance, that has had or is reasonably likely to have a
Material Adverse Effect;

                    (xv)   entered into any agreement, arrangement or
transaction with any shareholder, employee, officer or director of the Company
or any of its Subsidiaries (other than customary agreements for services as
employees, officers and directors that have been filed as exhibits to an SEC
Document) or any Person controlling, controlled by or under common control with
the Company;

                    (xvi)  except in connection with the CSD Acquisition as
described in subsections (x) through (xii) of Section 6.01(r) of the Financing
Agreement, incurred or project to incur any closure, clean-up or remediation
costs with respect to any current or formerly owned or leased property of the
Company or any of its Subsidiaries in excess of $1,000,000 in the aggregate; or

                    (xvii) agreed to do any of the things described in the
preceding clauses (i) through (xvi).

               The Company has not taken any steps, and does not currently
expect to take any steps, to seek protection pursuant to any bankruptcy law nor
does the Company or any of its Subsidiaries have any knowledge or reason to
believe that its creditors intend to initiate involuntary bankruptcy proceedings
or any actual knowledge of any fact which would reasonably lead a creditor to do
so.

               i.   Material Contracts.

                    (i)    Neither the Company nor any of its Subsidiaries is a
party to or bound by, and neither they nor their properties are subject to, any
contracts, agreements or arrangements required to be disclosed in a Form 10-K or
10-Q under the Exchange Act which is not filed as an exhibit to one or more of
the SEC Documents filed and publicly available.

                    (ii)   Schedule 3(i) sets forth as of the date hereof (A) a
list of all written and oral contracts, agreements, instruments or arrangements
to which the Company or any of its Subsidiaries is a party or by which the
Company or such Subsidiary or any of their respective assets is bound which
would be required to be filed as exhibits to the Company's Annual Report on Form
10-K for the year ending December 31, 2001 or any subsequent Exchange Act filing
by the Company, including, without limitation, all such contracts, agreement,
instrument and arrangements relating to the CSD Business that would have been
required to be filed by the Company as an exhibit to an SEC Document had the CSD
Acquisition occurred prior to the date of this Agreement; and (B) the following
written and oral arrangements (all such written or oral agreements, arrangements
or commitments as are required to be set forth on Schedule 3(i) or filed as
exhibits to any SEC Document, collectively the "Material Contracts"):

                                      -11-

<PAGE>

                    (A) each partnership, joint venture or similar agreement of
the Company or any of its Subsidiaries with another Person that is material to
the operation of the business of the Company or any of its Subsidiaries or the
CSD Business;

                    (B) each contract or agreement under which the Company or
any of its Subsidiaries have created, incurred, assumed or guaranteed (or may
create, incur, assume or guarantee) Indebtedness of more than $100,000 in
principal amount or under which the Company or any of its Subsidiaries have
imposed (or may impose) a Lien on any of their respective assets, whether
tangible or intangible securing Indebtedness in excess of $100,000.
"Indebtedness" shall have the meaning ascribed to such term in the Certificate;

                    (C) each contract or agreement to which the Company or any
of its Subsidiaries is a party which involves an obligation or commitment to pay
or be paid an amount in excess of $1,000,000 per year;

                    (D) each contract or agreement which involves or contributes
to the Company or any of its Subsidiaries aggregate annual remuneration which
exceeds 2% of the Company's and its Subsidiaries' consolidated annual net
revenues for the twelve months ended December 31, 2000, December 31, 2001 or
December 31, 2002 (projected), in each case both before and after giving effect
to the CSD Acquisition;

                    (E) each contract or agreement relating to employment or
consulting which provides for annual compensation in excess of $100,000 and each
severance, termination, confidentiality, non-competition or indemnification
agreement or arrangement with any of the directors, officers, consultants or key
employees of the Company or any of its Subsidiaries;

                    (F) each contract or agreement to which the Company or any
of its Subsidiaries or affiliates is a party limiting, in any material respect,
the right of the Company or any of its Subsidiaries (x) to engage in, or to
compete with any Person in, any business, including each contract or agreement
containing exclusivity provisions restricting the geographical area in which, or
the method by which, any business may be conducted by the Company or any of its
Subsidiaries or affiliates or (y) to solicit any customer or client;

                    (G) all contracts or agreements between the Company or any
of its Subsidiaries and any shareholder, employee, officer or director of the
Company or any Subsidiary, and any Person controlling, controlled by or under
common control with the Company;

                    (H) each contract, agreement and franchise with any
municipality, county or city for waste collection, disposal, recycling or other
services which provides for aggregate payments in excess of $1,000,000 and is
for a term of one year or longer (whether or not subject to early termination);

                    (I) all other contracts or agreements which are material to
the Company and its Subsidiaries taken as a whole or the CSD Business or the
conduct of their respective businesses, other than those made in the ordinary
course of business or those which

                                      -12-

<PAGE>

are terminable by the Company or any of its Subsidiaries upon no greater than 60
days prior notice and without penalty or other adverse consequence;

                    (J)   all contracts or agreements pursuant to which the
Company or any of its Subsidiaries is required to make payment of any cure
amount under contract or agreement being assigned by the CSD to the Company or
any of its Subsidiaries; and

                    (K)   all other contracts or agreements obligating the
Company or any of its Subsidiaries to indemnify or guarantee the indemnification
of any other Person.

                    (iii) All the Material Contracts are valid, subsisting, in
full force and effect, binding upon the Company or one of its Subsidiaries in
accordance with their terms, and to the knowledge of the Company, binding upon
the other parties thereto in accordance with their terms. The Company and its
Subsidiaries have paid in full or accrued all amounts now due from them under
the Material Contracts (including all cure amounts due under contracts or
agreements referred to in Section 3(i)(ii)(J) above) and have satisfied in full
or provided for all of their liabilities and obligations under the Material
Contracts which are presently required to be satisfied or provided for, and are
not (with or without notice or lapse of time or both) in default in any material
respect under any of the Material Contracts nor to the knowledge of the Company
is any other party to any such Material Contract (with or without notice or
lapse of time or both) in default in any material respect thereunder. No notice
of termination or cancellation or intent to terminate or cancel has been given
by the Company or any Subsidiary to any other party to any Material Contract and
none of the Company nor any Subsidiary has received notice of termination or
cancellation of a Material Contract or the intention to terminate or cancel any
Material Contract from any other party thereto, and, to the Company's knowledge,
no basis exists for any such termination or cancellation of any Material
Contract.

               j.   Absence of Litigation. There is no action, suit, proceeding,
inquiry or investigation before or by any court or Governmental Authority,
self-regulatory organization or body pending or, to the knowledge of the Company
or any of its Subsidiaries, threatened against or affecting the Company, the CSD
Acquisition, the CSD Business or any of the Company's Subsidiaries or any of the
Company's or the Company's Subsidiaries' officers or directors in their
capacities as such, except as expressly set forth in Schedule 3(j), which seeks
injunctive or declaratory relief against or affecting the Company, any of its
Subsidiaries or any of their respective assets or properties or, with respect to
the Company and its Subsidiaries, that if adversely determined, could have a
Material Adverse Effect. To the knowledge of the Company, none of the directors
or officers of the Company have been a party to any securities related
litigation during the past five years.

               k.   Acknowledgment Regarding Buyer's Purchase of Securities.
The Company acknowledges and agrees that each of the Buyers is acting solely in
the capacity of an arm's length purchaser with respect to the Transaction
Documents and the Certificate and the transactions contemplated hereby and
thereby. The Company further acknowledges that each Buyer is not acting as a
financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to the Transaction Documents and the Certificate and the transactions
contemplated hereby and thereby and any advice given by any of the Buyers or any
of their respective representatives or agents in connection with the Transaction
Documents and the

                                      -13-

<PAGE>

Certificate and the transactions contemplated hereby and thereby is merely
incidental to such Buyer's purchase of the Securities. The Company further
represents to each Buyer that the Company's decision to enter into the
Transaction Documents has been based solely on the independent evaluation by the
Company and its representatives.

                    l.   Compliance with Law. Except as set forth on Schedule
3(l), none of the Company, any of its Subsidiaries or, to the Company's
knowledge, the CSD Business (i) has violated or conducted its business or
operations in violation of, and has not used or occupied its properties or
assets in material violation of, any statute, law, ordinance, rule, regulation,
permit, order, writ, judgment, injunction, decree or award issued, enacted or
promulgated by any Governmental Authority or any arbitrator ("Legal
Requirements"), (ii) to the Company's knowledge, has been alleged to be in
material violation of any Legal Requirement, and (iii) has received any notice
of any violation or alleged material violation of, or any citation for material
non-compliance with, any Legal Requirements.

                    m.   No General Solicitation. Neither the Company, nor any
of its affiliates, nor any person acting on its or their behalf, has engaged in
any form of general solicitation or general advertising (within the meaning of
Regulation D under the 1933 Act) in connection with the offer or sale of the
Securities.

                    n.   No Integrated Offering. Neither the Company, nor any of
its affiliates, nor any person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would require registration of the
issuance by the Company of any of the Securities under the 1933 Act or cause
this offering of the Securities to be integrated with prior offerings by the
Company for purposes of the 1933 Act or, except as set forth on Schedule 3(n),
any applicable stockholder approval provisions, including, without limitation,
under the rules and regulations of the Principal Market, nor will the Company or
any of its Subsidiaries take any action or steps that would require registration
of the issuance by the Company of any of the Securities under the 1933 Act or,
except as set forth on Schedule 3(n), cause the offering of the Securities to be
integrated with other offerings.

                    o.   Employee Benefit Plans; Labor Matters. (i) Schedule
3(o) lists all "employee benefit plans," as defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and all
material bonus, stock option, stock purchase, stock appreciation right,
incentive, deferred compensation, supplemental retirement, severance and other
similar material fringe or employee benefit plans, programs, policies or
arrangements, any material employment, consulting or executive compensation
agreements that are currently maintained or have been maintained within the last
six years by the Company or any trade or business under common control with the
Company (an "ERISA Affiliate"), within the meaning of Section 414 of the
Internal Revenue Code of 1986, as amended (the "Code"), or under which the
Company or any ERISA Affiliate has, or within the last six years had, any
liability or obligation to contribute, for the benefit of or relating to any
employee, former employee or retiree of the Company or any ERISA Affiliate
(collectively, for purposes of this Section 3(o), referred to as the "Employee
Plans").

                                      -14-

<PAGE>

                    (ii)  With respect to any Employee Plan, where applicable,
(A) such Employee Plan has been maintained in accordance with ERISA, the Code,
the terms of such Employee Plan and other applicable Legal Requirements; (B) a
favorable determination letter has been obtained from the IRS, and a copy
thereof delivered to each Buyer, for any such Employee Plan that is an "employee
pension benefit plan" within the meaning of Section 3(2) of ERISA and which is
intended to be qualified within the meaning of Section 401(a) of the Code, and
since such determination letter, no event has occurred that would disqualify
such Plan; (C) there has been no non-exempt "prohibited transaction" (including
without limitation as a result of any of the transactions contemplated hereby)
within the meaning of Section 4975(c) of the Code or Section 406 of ERISA
involving the assets of any Employee Plan; and (iv) neither the Company nor any
ERISA Affiliate is or was during the preceding six years obligated to contribute
to any multiemployer plan and neither the Company nor any ERISA Affiliate has
assumed any obligation of any predecessor of the Company with respect to any
multiemployer plan.

                    (iii) There are no pending actions which have been asserted
in writing or instituted (other than in respect of benefits due in the ordinary
course which, in the aggregate are not material) against the assets of any of
the Employee Plans or against the Company or any ERISA Affiliate or any
fiduciary of the Employee Plans with respect to the Employee Plans.

                    (iv)  Except as required by Section 4980B of the Code, no
Employee Plan or other arrangement provides medical or death benefits with
respect to current or former employees of the Company or any ERISA Affiliate
beyond their retirement or other termination of employment. Any continuation
coverage provided under any welfare benefits plans complies with Section 4980B
of the Code and is at the expense of the participant or beneficiary.

                    (v)   No Employee Plan has incurred an "accumulated funding
deficiency" and there has not been any unpaid required installments, within the
meaning of Section 412 of the Code, nor has there been issued a waiver or
variance of the minimum funding standards imposed by the Code with respect to
any Employee Plan that is subject to Title IV of ERISA (a "Title IV Plan"), nor
has any Lien been created under Section 302(f) of ERISA or security been
required under Section 307 of ERISA, nor are any excise taxes due or hereafter
to become due under Section 4971 or 4972 of the Code with respect to the funding
of any such plan for any plan year or other fiscal period ending on or before
the Closing Date. With respect to each Title IV Plan, there has not occurred any
reportable event within the meaning of Section 4043(b) of ERISA or the
regulations thereunder. The Pension Benefit Guaranty Corporation ("PBGC") has
not instituted or, to the knowledge of the Company or any ERISA Affiliate,
threatened a proceeding to terminate any Title IV Plan. All PBGC premiums due on
or before the Closing Date with respect to any Title IV Plan have been paid in
full, including late fees, interest and penalties, if and to the extent
applicable. True, correct and complete copies of the most recent actuarial
report which accurately reflects the funded status and contribution requirements
for each Title IV Plan have been delivered to each Buyer (or its
representatives). There has been no material adverse change in the assets,
liabilities or financial position of each Title IV Plan since the date of the
most recent actuarial report. Neither the Company nor any ERISA Affiliate has,
at any time within the five year period preceding the Closing Date, entered

                                      -15-

<PAGE>

into any transaction the principal purpose of which was to evade liability to
which the Company or such ERISA Affiliate would otherwise be subject under Title
IV of ERISA. The principal purpose of the Company in entering into the
transactions contemplated by this Agreement is not to evade liability to which
the Company would otherwise be subject under Title IV of ERISA.

                  (vi)   No Employee Plan or agreement, program, policy or other
arrangement by its terms or in effect would or could possibly require any
payment or transfer of money, property or other consideration on account of or
in connection with the transactions contemplated by this Agreement, including
but not limited to any employee (current, former or retired) of the Company or
any ERISA Affiliate (whether or not any such payment would constitute a
"parachute payment" or "excess parachute payment" within the meaning of Section
280G of the Code).

                  (vii)  Neither the Company nor any ERISA Affiliate has
incurred any obligations in connection with the termination of or withdrawal
from any Foreign Pension Plan (as defined below), or has any unfunded liability
with respect to benefits under any such Foreign Pension Plan. "Foreign Pension
Plan" means any plan, fund or other similar program maintained outside the
United States of America primarily for the benefit of employees residing outside
of the United States of America, or that has been maintained within the last six
years by the Company or any ERISA Affiliate or under which the Company or any
ERISA Affiliate has had any liability or obligation to contribute within the
past six years, which plan, fund or other similar program provides retirement
income for such employees, results in a deferral of income for such employees in
contemplation of retirement or provides payments to be made to such employees
upon termination of employment, and which plan is not subject to ERISA or the
Code.

                  (viii) Any terminated Employee Plan has been terminated in
accordance with applicable law, all benefits under any such terminated Employee
Plan have been fully paid to the participants and beneficiaries in accordance
with the terms of such Employee Plan, and neither the Company nor any ERISA
affiliate has any continuing liability or other obligation with respect to such
Employee Plan.

                  (ix)   Neither the Company nor its ERISA Affiliates has
incurred any material liability or obligation under the Worker Adjustment and
Retraining Notification Act or similar state Legal Requirements, which remains
unpaid or unsatisfied

                  (x)    Except as listed in Schedule 3(o), neither the Company
nor any ERISA Affiliate is a party to any employment, labor or collective
bargaining agreement. No labor organization or group of employees of the Company
or any ERISA Affiliate has made a pending demand for recognition or
certification to the Company or any ERISA Affiliate and there are no
representation or certification proceedings or petitions seeking a
representation proceeding presently pending or threatened to be brought or filed
with the National Labor Relations Board or any other labor relations tribunal or
authority relating to the Company or any ERISA Affiliate. Except as listed in
Schedule 3(o), there are no organizing activities involving the Company or any
ERISA affiliate pending with any labor organization or group of employees of the
Company.

                                      -16-

<PAGE>

                  (xi)  There are no unfair labor practice charges, grievances
or complaints pending or, to the knowledge of the Company or any ERISA Affiliate
threatened in writing by or on behalf of any employee or group of employees of
the Company or any ERISA Affiliate. There is no labor strike, work stoppage, or
lockout pending or affecting the Company or any ERISA Affiliate.

                  (xii) There are no complaints, charges, or claims against the
Company or any ERISA Affiliate pending, or to the knowledge of the Company or
any ERISA Affiliate, threatened in writing to be brought or filed, with any
authority or arbitrator based on, arising out of, in connection with, or
otherwise relating to the employment or termination of employment or any
individual by the Company. The Company and each ERISA Affiliate is in material
compliance with all Legal Requirements governing the employment of labor,
including, but not limited to, all such laws relating to wages, hours,
collective bargaining, discrimination, civil rights, safety and health, workers'
compensation and the collection and payment of withholding and/or Social
Security taxes and similar taxes.

              p.  Intellectual Property. Except as otherwise set forth on
Schedule 3(p):

                  (i)   Schedule 3(p) sets forth a true, correct and complete
list and summary description of all (A) Registered or material Owned
Intellectual Property (each identified as a Patent, Trademark, Trade Secret or
Copyright, as the case may be), (B) material Technology Systems, and (C)
material Intellectual Property Contracts.

                  (ii)  All Business Intellectual Property is valid, subsisting
and enforceable. No Owned Intellectual Property has been abandoned, canceled or
adjudicated invalid (excepting any expirations in the ordinary course), or is
subject to any outstanding order, judgment or decree restricting its use or
adversely affecting or reflecting the Company's or the Subsidiaries' rights
thereto. To the Company's knowledge, no Licensed Intellectual Property has been
abandoned, canceled or adjudicated invalid (excepting any expirations in the
ordinary course), or is subject to any outstanding order, judgment or decree
restricting its use or adversely affecting or reflecting the Company's or the
Subsidiaries' rights thereto. The Owned Intellectual Property has been used with
all patent, trademark, copyright, confidential, proprietary, and other
Intellectual Property notices and legends prescribed by law or otherwise
permitted.

                  (iii) No suit, action, reissue, reexamination, public protest,
interference, arbitration, mediation, opposition, cancellation or other
proceeding (collectively, "Suit") is pending concerning any claim or position
that the Company or the Subsidiaries have violated any Intellectual Property
rights. No claim has been threatened or asserted against the Company or its
Subsidiaries or any of their indemnitees for violation of any Intellectual
Property rights. The Company and the Subsidiaries are not violating and have not
violated any Intellectual Property rights.

                  (iv)  No Suit is pending concerning any Intellectual Property
Contract, including any Suit concerning a claim or position that the Company or
the Subsidiaries or another Person has breached any Intellectual Property
Contract or that any Intellectual Property Contract is invalid or unenforceable.
No such claim has been threatened or asserted.

                                      -17-

<PAGE>

The Company and the Subsidiaries are in material compliance with, and have
conducted their business so as to comply, in all material respects, with all
terms of all Intellectual Property Contracts. There exists no event, condition
or occurrence which, with the giving of notice or lapse of time, or both, would
constitute a material breach or default by the Company or the Subsidiaries or
another Person under any Intellectual Property Contract. Each Person who is a
party to any Intellectual Property Contract had and has all rights, power and
authority necessary to enter into, be bound by and fully perform such
Intellectual Property Contract. No party to any Intellectual Property Contract
has given the Company or the Subsidiaries notice of its intention to cancel,
terminate or fail to renew any Intellectual Property Contract.

                  (v)    No Suit is pending concerning the Owned Intellectual
Property, including any Suit concerning a claim or position that the Owned
Intellectual Property has been violated or is invalid, unenforceable,
unpatentable, unregisterable, cancelable, not owned or not owned exclusively by
the Company or the Subsidiaries. No such claim has been threatened or asserted.
To the Company's knowledge, no valid basis for any such Suits or claims exists.

                  (vi)   To the Company's knowledge, no Suit is pending
concerning the Licensed Intellectual Property, including any Suit concerning a
claim or position that the Licensed Intellectual Property has been violated or
is invalid, unenforceable, unpatentable, unregisterable, cancelable, not owned
or not owned exclusively by the licensor of such Intellectual Property. No Suit
is pending concerning the right of the Company or the Subsidiaries to use the
Licensed Intellectual Property, including any Suit concerning a claim or
position that such right has been violated or is invalid, unenforceable, not
owned or not owned exclusively by the Company or the Subsidiaries. To the
Company's knowledge, no such claims have been threatened or asserted and no
valid basis for any such Suits or claims exists.

                  (vii)  To the Company's knowledge, no Person is violating any
Business Intellectual Property.

                  (viii) The Company and the Subsidiaries own or otherwise hold
valid rights to use all Intellectual Property used or contemplated to be used in
the respective businesses of the Company and the Subsidiaries. All such rights
are free of all Liens and are fully assignable by the Company and the
Subsidiaries to any Person, without payment, consent of any Person or other
condition or restriction. The Business Intellectual Property constitutes all
Intellectual Property necessary to operate the respective businesses of the
Company and the Subsidiaries as currently conducted or contemplated.

                  (ix)   The Company and the Subsidiaries have timely made all
filings and payments with the appropriate foreign and domestic agencies required
to maintain in subsistence all Registered Owned Intellectual Property. No due
dates for filings or payments concerning the Owned Intellectual Property
(including without limitation office action responses, affidavits of use,
affidavits of continuing use, renewals, requests for extension of time,
maintenance fees, application fees and foreign convention priority filings) fall
due within ninety (90) days of the Closing Date, whether or not such due dates
are extendable. The Company and the Subsidiaries are in compliance with all
applicable rules and regulations of such agencies with respect to Business
Intellectual Property. All documentation necessary to confirm and effect the

                                      -18-

<PAGE>

Company's and the Subsidiaries' ownership of Owned Intellectual Property, if
acquired from other Persons, has been recorded in the United States Patent and
Trademark Office, the United States Copyright Office and other official offices.

                  (x)    The Company and the Subsidiaries have taken all
reasonable measures to protect the secrecy, confidentiality and value of all
Trade Secrets used in their businesses (collectively, "Business Trade Secrets")
(including without limitation entering into appropriate confidentiality
agreements with all officers, directors, employees, and other Persons with
access to the Business Trade Secrets). To the Company's knowledge, the Business
Trade Secrets have not been disclosed to any Persons other than Company and
Subsidiaries employees or Company and Subsidiaries contractors who had a need to
know and use such Business Trade Secrets in the ordinary course of employment or
contract performance and who executed appropriate confidentiality agreements.

                  (xi)   The Technology Systems are adequate in all material
respects for their intended use and for the operation of such businesses as are
currently operated and as are currently contemplated to be operated by the
Companies and the Subsidiaries. The Intellectual Property Contracts set forth on
Schedule 3(p) provide the Company and Subsidiaries with all necessary rights in
connection with the use of the Technology Systems.

                  (xii)  As used in this Agreement, the following terms shall
have the following meanings:

                  (A)    "Business Intellectual Property" shall mean the Owned
Intellectual Property and the Licensed Intellectual Property.

                  (B)    "Intellectual Property" shall mean all foreign and
domestic (i) trademarks, service marks, brand names, certification marks,
collective marks, d/b/a's, Internet domain names, logos, symbols, trade dress,
assumed names, fictitious names, trade names, and other indicia of origin, all
applications and registrations for all of the foregoing, and all goodwill
associated therewith and symbolized thereby, including without limitation all
extensions, modifications and renewals of same (collectively, "Trademarks");
(ii) inventions, discoveries and ideas, whether patentable or not, and all
patents, registrations, and applications therefor, including without limitation
divisions, continuations, continuations-in-part and renewal applications, and
including without limitation renewals, extensions and reissues (collectively,
"Patents"); (iii) confidential and proprietary information, trade secrets and
know-how, including without limitation processes, schematics, databases,
formulae, drawings, prototypes, models, designs and customer lists
(collectively, "Trade Secrets"); (iv) published and unpublished works of
authorship, whether copyrightable or not (including without limitation computer
software), copyrights therein and thereto, and registrations and applications
therefor, and all renewals, extensions, restorations and reversions thereof
(collectively, "Copyrights"); and (v) all other intellectual property or
proprietary rights and claims or causes of action arising out of or related to
any infringement, misappropriation or other violation of any of the foregoing,
including without limitation rights to recover for past, present and future
violations thereof.

                  (C)    "Intellectual Property Contracts" shall mean all
agreements concerning the Business Intellectual Property, including without
limitation agreements granting

                                      -19-

<PAGE>

the Company and the Subsidiaries rights to use the Licensed Intellectual
Property, agreements granting rights to use Owned Intellectual Property,
confidentiality agreements, Trademark coexistence agreements, Trademark consent
agreements and nonassertion agreements.

                  (D)  "Licensed Intellectual Property" shall mean Intellectual
Property that the Company and the Subsidiaries are licensed or otherwise
permitted by other Persons to use, including without limitation all Intellectual
Property related to any Technology Systems owned by third parties.

                  (E)  "Owned Intellectual Property" shall mean Intellectual
Property owned by the Company and the Subsidiaries.

                  (F)  "Registered" shall mean issued, registered, renewed or
the subject of a pending application.

                  (G)  "Technology Systems" means the electronic data
processing, information, recordkeeping, communications, telecommunications and
computer systems (including all computer programs and software, databases,
firmware, hardware and related documentation) which are used by the Company
and/or the Subsidiaries in their respective businesses.

               q. Properties. (i) The Company and its Subsidiaries have good
and marketable title to, valid leasehold interests in, or valid licenses to use,
all property and assets of the Company and its Subsidiaries (including the
property and assets of the CSD), free and clear of all Liens, except as
described on Schedule 3(q) or such as do not materially affect the value of such
property and do not interfere with the use made and proposed to be made of such
property by the Company and any of its Subsidiaries. All such properties and
assets are in good working order and condition, ordinary wear and tear excepted.
Schedule 3(q) sets forth a complete and accurate list of the location, by state
and street address, of all real property owned, licensed or leased by the
Company and its Subsidiaries and identifies the interest (fee, leasehold or
license) of the Company or Subsidiary therein. The Company or its Subsidiaries
has valid leasehold interests in the leases described on Schedule 3(q) to which
it is a party. True, complete and correct copies of each such lease have been
delivered to each of the Buyers (or its representatives). Schedule 3(q) sets
forth with respect to each such lease, the commencement date, termination date,
renewal options (if any) and annual base rents. Each such lease is valid and
enforceable in accordance with its terms in all material respects and is in full
force and effect. To the best knowledge of the Company, no other party to any
such lease is in default of its obligations thereunder, and none of the Company
or any of its Subsidiaries (or any other party to any such lease) has at any
time delivered or received any notice of default which remains uncured under any
such lease and no event has occurred which, with the giving of notice or the
passage of time or both, would constitute a default under any such lease.

                  (ii) All Permits material to the Company or its Subsidiaries
required to have been issued to the Company or its Subsidiaries with respect to
the real property owned, licensed or leased by the Company or any of its
Subsidiaries to enable such property to be lawfully occupied and used for all of
the purposes for which it is currently occupied and used (separate and apart
from any other properties), have been lawfully issued and are in full force

                                      -20-

<PAGE>

and effect and all such real property complies with all applicable Legal
Requirements and Policies covering such properties in all material respects.

                  (iii) Neither the Company nor any of its Subsidiaries have
received any notice, nor has any knowledge, of any pending, threatened or
contemplated condemnation proceeding affecting any real property owned, licensed
or leased by the Company or any Subsidiary.

                  (iv)  No portion of any real property owned, licensed or
leased by the Company or any of its Subsidiaries has suffered any damage by fire
or other casualty loss which has not heretofore been completely repaired and
restored to its condition existing prior to such casualty. No portion of any
improvements (other than paving, parking and landscaped areas) constructed on
any of the real property owned, licensed or leased by the Company or any of its
Subsidiaries is located in a special flood hazard area as designated by any
Governmental Authority.

               r. Environmental Laws. Except as set forth on Schedule 3(r),

                  (i)   The Company's and its Subsidiaries' businesses,
Facilities (as defined in the Financing Agreement), operations, properties and
assets are in material compliance with Environmental Laws.

                  (ii)  The Company and its Subsidiaries have obtained and are
in material compliance with all material Environmental Permits necessary to
operate, use or occupy all of the Company's and its Subsidiaries' businesses,
facilities, operations, properties and assets, except for Environmental Permits
relating to the SK Facilities (as defined in the Financing Agreement) which are
not yet effective but for which requisite applications have been filed.

                  (iii) Except as provided in Section 6.01(r) of the Financing
Agreement, the Company and its Subsidiaries have obtained and are in full
compliance with all financial assurance requirements under RCRA and any similar
Environmental Law, as specifically set forth but not limited to 40 C.F.R. 264
and 265, necessary to operate, use or occupy all of the Company's and its
Subsidiaries' businesses, facilities, operations, properties and assets.

                  (iv)  The Company and its Subsidiaries are in material
compliance with all applicable writs, orders, consent decrees, judgments and
injunctions by any Governmental Authority, decrees, informational requests or
demands issued pursuant to, or arising under, any Environmental Laws.

                  (v)   The Company's and its Subsidiaries' will not be required
to spend more than $1,000,000 in the aggregate for any Facility or $5,000,000
for all Facilities to comply with any Environmental Laws that have been
promulgated and enacted by a Governmental Authority, but will not be effective
until after the date of this Agreement or the Closing Date, except to the extent
those expenditures are already specifically included within the aggregate
amounts described in clause (x) or (xi) below or in the capital expenditures
described in Section 7.02(g) of the Financing Agreement.

                                      -21-

<PAGE>

                  (vi)   Except for Releases for which the related Environmental
Liabilities are specifically included within the aggregate amounts described in
clauses (ix) through (xi) below, there has been no Release at any of the
facilities, assets or properties owned or operated by the Company, its
Subsidiaries or, to the knowledge of the Company and its Subsidiaries, a
predecessor in interest.

                  (vii)  Except for Environmental Claims specifically included
within the aggregate amounts described in clauses (ix) through (xi), no
Environmental Claims have been asserted against any treatment, storage or
disposal facility that received or Handled Hazardous Materials generated by the
Company, its Subsidiaries or any predecessor in interest which could reasonably
be expected to result in any Environmental Liabilities in excess of $1,000,000
for any Facility or $5,000,000 in the aggregate for all Facilities.

                  (viii) Except for Environmental Claims specifically included
within the aggregate amounts described in clauses (ix) through (xi) below, no
Environmental Claims have been asserted against the Company, its Subsidiaries
or, to the knowledge of the Company and its Subsidiaries, any predecessor in
interest nor does the Company or its Subsidiaries have knowledge or notice of
any threatened or pending Environmental Claims against the Company, its
Subsidiaries or any predecessor in interest which could reasonably be expected
to result in any Environmental Liabilities in excess of $1,000,000 individually
or $5,000,000 in the aggregate.

                  (ix)   The Company and its Subsidiaries will not assume any
Environmental Liabilities related to the acquisition of CSD that are more than
ten percent above $265,000,000, calculated in accordance with GAAP.

                  (x)    Excluding any Environmental Liabilities related to the
CSD Acquisition assumed by the Company and its Subsidiaries, the Company's and
its Subsidiaries will not spend more than ten percent above $29,250,000 for
closure, post closure and post closure care of the CH Facilities (as defined in
the Financing Agreement), as those terms are used in RCRA and any similar
Environmental Law, as specifically set forth but not limited to 40 C.F.R. 264
and 265.

                  (xi)   Excluding any Environmental Liabilities of CSD assumed
by the Company and its Subsidiaries, to the knowledge of the Company's and its
Subsidiaries, there are no Remedial Actions that will cost, in the aggregate,
more than $1,000,000 per calendar year for the foreseeable future.

                  (xii)  All representations, including without limitation
applications, warranty statements and accompanying materials provided in support
of such representations, provided by the Company and its Subsidiaries to obtain
any Policies, are truthful and complete in all respects, and the Company and its
Subsidiaries have done nothing to prejudice it's rights to obtain the benefits
of it's Policies by failing to comply with any of the provisions, conditions or
requirements of its Polices.

                  (xiii) there are no Environmental Liens associated or, to the
best knowledge of the Company, threatened to be associated with any of the CSD
Acquisition Assets

                                      -22-

<PAGE>

or the Company's or any of its Subsidiaries' businesses, Facilities, operations,
properties and assets.

                  (xiv)  except for work, repairs, contributions and Capital
Expenditures (as defined in the Financing Agreement) specifically included in
the aggregate amounts set forth in clauses (ix) through (xi) above or Section
7.02(g) of the Financing Agreement, to the best knowledge of the Company, (A) no
work, repairs, construction or Capital Expenditures are required to be made as a
condition of continued compliance of the Facilities or the Company's or any of
its Subsidiaries' business with any Environmental Laws, or any license,
Environmental Permit or approval issued pursuant thereto or (B) no license,
Environmental Permit or approval referred to above is about to be reviewed, made
subject to limitations or conditions, revoked, withdrawn or terminated.

                  (xv)   As used in this Agreement, the following terms shall
have the following meanings:

                  (A)    "Environmental Claims" refers to any complaint,
summons, citation, notice, directive, order, claim, litigation, investigation,
notice of violation, judicial or administrative proceeding, judgment, letter or
other communication from any Governmental Authority, or any third party
involving violations of Environmental Laws, Handling of Hazardous Materials or
Releases of Hazardous Materials from (i) any assets, properties or businesses of
the Company or any predecessor in interest; (ii) from adjoining properties or
businesses; or (iii) from or onto any facilities which received Hazardous
Materials generated or Handled by the Company, its Subsidiaries or any
predecessor in interest.

                  (B)    "Environmental Laws" includes the Comprehensive
Environmental Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C.
9601 et seq., as amended; the Resource Conservation and Recovery Act ("RCRA"),
42 U.S.C. 6901 et seq., as amended; the Clean Air Act ("CAA"), 42 U.S.C. 7401 et
seq., as amended; the Clean Water Act ("CWA"), 33 U.S.C. 1251 et seq., as
amended; the Occupational Safety and Health Act ("OSHA"), 29 U.S.C. 655 et seq.,
as amended; Toxic Substances Control Act ("TOSCA"), 15 U.S.C. 2601 et seq., as
amended; Hazardous Materials Transportation Act, 49 U.S.C. 5101 et seq., as
amended; the Federal Insecticide, Fungicide, and Rodenticide Act ("FIFRA"), 7
U.S.C. 136-136y et seq., as amended; the Emergency Planning and Community
Right-to-Know Act of 1986 (Title III of SARA or "EPCRA"); 42 U.S.C. 11001, et
seq., as amended, and any other foreign, federal, state, local or municipal
laws, statutes, regulations, guidance documents, rules or ordinances imposing
liability or establishing standards of conduct for Handling of Hazardous
Materials and the protection of the health, safety and the environment.

                  (C)    "Environmental Lien" means any Lien in favor of any
Governmental Authority for Environmental Liabilities.

                  (D)    "Environmental Liabilities" means any monetary
obligations, losses, liabilities (including strict liability), damages, punitive
damages, consequential damages, treble damages, costs and expenses (including
all reasonable out-of-pocket fees, disbursements and expenses of counsel,
out-of-pocket expert and consulting fees and out-of-pocket costs for
environmental site assessments, remedial investigation and feasibility

                                      -23-

<PAGE>

studies), fines, penalties, sanctions and interest incurred as a result of any
Environmental Claim filed by any Governmental Authority, Person or any third
party which relate to the CSD Acquisition Assets or any violations of
Environmental Laws, Handling of Hazardous Materials, Remedial Actions, Releases
or threatened Releases of Hazardous Materials from or onto (i) any property
presently or formerly owned by the Corporation or any of its Subsidiaries or a
predecessor in interest, or (ii) any facility that received Hazardous Materials
that were generated or Handled by the Company or any of its Subsidiaries or a
predecessor in interest.

                  (E) "Environmental Permits" means any permits, licenses,
certificates, exemptions, authorizations, registrations or approvals required by
any Governmental Authority or under Environmental Laws.

                  (F) "Governmental Authority" means any nation or government,
any foreign, federal, state, city, town, municipality, county, local or other
political subdivision thereof or thereto and any department, commission, board,
bureau, instrumentality, agency, organization, self-regulatory authority or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

                  (G) "Handle" means any manner of generating, accumulating,
storing, treating, disposing of, transporting, transferring, labeling, handling,
manufacturing or using, as any of such terms may further be defined in any
Environmental Law, of any Hazardous Materials.

                  (H) "Hazardous Materials"- shall include, without regard to
amount and/or concentration (i) any element, compound, or chemical that is
defined, listed or otherwise classified as a contaminant, pollutant, toxic
pollutant, toxic or hazardous substances, extremely hazardous substance or
chemical under Environmental Laws; (ii) any wastes regulated, defined, listed or
otherwise classified by Environmental Laws, including but not limited to
hazardous waste, agricultural wastes, biological waste, medical waste,
biohazardous or infectious waste, special waste, recyclable materials, sludge,
used oils, construction and demolition debris and solid waste; (iii) petroleum,
petroleum-based or petroleum-derived products; (iv) polychlorinated biphenyls;
(v) any substance exhibiting a hazardous waste characteristic including but not
limited to corrosivity, ignitibility, toxicity or reactivity as well as any
radioactive or explosive materials; and (vi) any raw materials, building
components, including but not limited to asbestos-containing materials and
manufactured products containing Hazardous Materials.

                  (I) "Release" means any spilling, leaking, pumping, emitting,
emptying, discharging, injecting, escaping, leaching, migrating, dumping, or
disposing of Hazardous Materials (including the abandonment or discarding of
barrels, containers or other closed receptacles containing Hazardous Materials)
into the environment.

                  (J) "Remedial Action" means all actions taken to (i) clean up,
remove, remediate, contain, treat, monitor, assess, evaluate or in any other way
address Hazardous Materials in the indoor or outdoor environment; (ii) prevent
or minimize a Release or threatened Release of Hazardous Materials so they do
not migrate or endanger or threaten to endanger public health or welfare or the
indoor or outdoor environment; (iii) perform pre-

                                      -24-

<PAGE>

remedial studies and investigations and post-remedial operation and maintenance
activities; or (iv) any other actions authorized by 42 U.S.C. 9601.

                  s. Insurance. Schedule 3(s) contains a list of all Policies
and sets forth, with respect to each such Policy, a description of the insured
loss coverage, the expiration date and time of coverage, the dollar limitations
of coverage, and a general description of each deductible feature. For purposes
of this Section 3(s), the term "Policies" means all insurance policies, bonds
and guarantees (including, without limitation, all performance and warranty
bonds required under outstanding contracts or purchase orders and otherwise
required pursuant to all Legal Requirements) and self insurance arrangements
that cover or purport to cover risks or losses to or associated with the
business, operations, premises, properties, assets, employees, agents and
directors (including, without limitation, those arising with respect to
environmental matters) to which the Company or any of its Subsidiaries
(including the CSD Business) is a party, a named insured or a beneficiary
thereof. The Company and its Subsidiaries maintain Policies (the "Required
Policies") with financially sound and reputable insurance companies against
risks of liability, product liability, environmental liability, casualty and
fire, theft and other losses and liabilities as required by any Legal
Requirements and as are customarily obtained to cover comparable businesses and
assets in amounts, scope and coverage which are consistent with industry
practice and adequate for the Company and its Subsidiaries (including the CSD
Business). The Required Policies are in full force and effect, and neither the
Company nor any of its Subsidiaries is in material default under any of them.
Except as set forth on Schedule 3(s), neither the Company nor any of its
Subsidiaries has received any notice of cancellation or intent to cancel or
increase the premiums with respect to any of the Policies, nor, to the Company's
knowledge, is there any basis for such action. None of the Company, any of its
Subsidiaries or, to the Company's knowledge, the CSD Business, has incurred any
material loss, damage, expense or liability covered by any Required Policy for
which it has not asserted a claim under such Required Policy. Except as set
forth on Schedule 3(s), none of the Company, any of its Subsidiaries or, to the
Company's knowledge, the CSD Business, has been refused any bonds, financial
assurance or insurance with respect to their respective assets or properties,
nor has its coverage been limited below usual and customary limits by any
bonding company, financial guarantor or insurance provider or with which it has
carried insurance during the last three years, except where such Person has been
able to obtain substitute bonds, guarantees or insurance, as applicable,
providing similar coverage at comparable costs, premiums and deductibles.

                  t. Regulatory Permits. Each of the Company and its
Subsidiaries has, and is in compliance with, all permits, licenses,
authorizations, approvals, entitlements and accreditations (collectively,
"Permits") required for the Company and its Subsidiaries lawfully to own, lease,
manage or operate, or to acquire, each business currently owned, leased, managed
or operated, or to be acquired, by such Person, except for certain Environmental
Permits relating to the SK Facilities (as defined in the Financing Agreement)
for which applications have been filed on or prior the Effective Date but which
are not yet effective as described in Section 6.01(r) of the Financing
Agreement. Except as set forth in Section 6.01(r) of the Financing Agreement, no
condition exists or event has occurred which, in itself or with the giving of
notice or lapse of time or both, would result in the suspension, revocation,
impairment, forfeiture or non-renewal of any such permit, license,
authorization, approval, entitlement or accreditation, and there is no claim
that any thereof is not in full force and effect. Schedule 3(t) contains a true,
complete and

                                      -25-

<PAGE>

correct list of all material Permits of the Company and its Subsidiaries
indicating thereon the expiration date of each such Permit. To the Company's
knowledge, each material Permit of the Company and its Subsidiaries that is
scheduled to expire within 24 months of the Closing Date will be renewable by
the Company or the applicable Subsidiary without undue cost or expense to the
Company or the applicable Subsidiary.

                  u. Internal Accounting Controls. Except as set forth on
Schedule 3(u), the Company and each of its Subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management's general or specific
authorization and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.

                  v. Unconditional Obligation. The Company understands and
acknowledges that the number of Conversion Shares issuable upon conversion of
the Preferred Shares will increase in certain circumstances. The Company further
acknowledges that its obligation to issue shares upon conversion of the
Preferred Shares in accordance with this Agreement and Certificate is, in each
case, absolute and unconditional (except to the extent set forth in Section 11
of the Certificate) regardless of the dilutive effect that such issuance may
have on the ownership interests of other stockholders of the Company.

                  w. No Materially Adverse Contracts, Etc. Neither the Company
nor any of its Subsidiaries is subject to any charter, corporate or other legal
restriction, or any judgment, decree, order, rule or regulation which in the
judgment of the Company's officers has or is expected in the future to have a
Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a
party to any contract or agreement which in the judgment of the Company's
officers has or is expected to have a Material Adverse Effect.

                  x. Customers and Suppliers. There exists no actual or
threatened termination, cancellation or limitation of, or modification to or
change in, the business relationship between (i) any of the Company or any of
its Subsidiaries, on the one hand, and any customer or any group thereof, on the
other hand, whose agreements with any of the Company or any of its Subsidiaries
are individually or in the aggregate material to the business or operations of
the Company and/or any of its Subsidiaries, or (ii) any of the Company or any of
its Subsidiaries, on the one hand, and any material supplier thereof, on the
other hand; and there exists no present state of facts or circumstances that
could give rise to or result in any such termination, cancellation, limitation,
modification or change (including without limitation, the transactions
contemplated hereby, pursuant to the Financing Agreement, the Congress Loan or
the CSD Acquisition). Schedule 3(x) lists the top fifty customers that are
common to the Company and its Subsidiaries (before giving effect to the CSD
Acquisition) showing the total revenues received during the most recently
completed fiscal year by the Company and its Subsidiaries (before giving effect
to the CSD Acquisition), on the one hand, and CSD, on the other hand. The
Company is not aware of any facts or circumstances that might give rise to a
material reduction or loss of business for the Company and its Subsidiaries
(after giving effect to

                                      -26-

<PAGE>

the CSD Acquisition) from any customers listed on Schedule 3(x) as a result of
the CSD Acquisition or otherwise.

                  y.  Tax Status. The Company and each of its Subsidiaries (i)
has made or filed all federal, foreign, state, local and municipal income and
all other tax returns, reports and declarations required by any jurisdiction to
which it is subject (unless and only to the extent that the Company and each of
its Subsidiaries has set aside on its books provisions reasonably adequate for
the payment of all unpaid and unreported taxes), (ii) has paid all taxes and
other governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those
being contested in good faith and for which the Company has made appropriate
reserves for on its books, and (iii) has set aside on its books provisions
reasonably adequate for the payment of all taxes for periods subsequent to the
periods to which such returns, reports or declarations (referred to in clause
(i) above) apply. There are no unpaid taxes in any material amount claimed to be
due by the taxing authority of any jurisdiction, and the Company knows of no
basis for any such claim.

                  z.  Transactions With Affiliates. Except as set forth on
Schedule 3(z), and other than the grant of stock options described on Schedule
3(c), none of the officers, directors, stockholders or employees of the Company
or any Subsidiary, any Person controlling, controlled by or under common control
with the Company, is presently a party to any transaction with the Company or
any of its Subsidiaries, including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real
or personal property to or from, or otherwise requiring payments to or from any
such officer, director or employee or, to the knowledge of the Company, any
corporation, partnership, trust or other entity in which any such officer,
director, or employee has a substantial interest or is an officer, director,
trustee or partner.

                  aa. Application of Takeover Protections. The Company and its
board of directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill
(including any distribution under a rights agreement), including, without
limitation, pursuant to any shareholder rights plan or similar agreement or
instrument or other similar anti-takeover provision under the Articles of
Organization or the laws of the state of its incorporation which is or could
become applicable to the Buyers as a result of the transactions contemplated by
this Agreement, including, without limitation, the Company's issuance of the
Securities and the Buyers' ownership of the Securities.

                  bb. Shareholder's Rights Plan. The Company has not adopted a
shareholder rights plan or similar arrangement relating to accumulations of
beneficial ownership of Common Stock or a change in control of the Company.

                  cc. CSD Acquisition Documents. (i) (A) The Company and each
Subsidiary (before giving effect to the CSD Acquisition), and to the Company's
knowledge, each other party to the Acquisition Agreement governing the CSD
Acquisition, each bill of sale, each assignment agreement, each assumption
agreement and all other agreements, instruments and documents entered into or
delivered in connection with the CSD Acquisition (including, without limitation
the final executed versions of each agreement attached as an exhibit to the CSD
acquisition agreement, each as amended, modified and supplement to date
(collectively, the

                                      -27-

<PAGE>

"CSD Acquisition Documents"), is not in default on any of its obligations under
such CSD Acquisition Document, (B) all representations and warranties made by
the Company in the CSD Acquisition Documents and in the certificates delivered
in connection therewith are true and correct in all material respects as of the
date hereof and, to the best knowledge of the Company, all material
representations and warranties made in the Acquisition Documents by or on behalf
of the sellers thereunder, or any other party thereto other than the Company,
are true and correct in all material respects as of the date hereof, (C) all
written information with respect to the Company and the CSD Acquisition, and, to
the best knowledge of the Company, the business and all of the property and
assets (tangible and intangible) sold, assigned or otherwise transferred to, or
assumed or otherwise acquired by, the Company and certain of its Subsidiaries
pursuant to the Acquisition Documents (the "CSD Acquisition Assets"), furnished
to the Buyers by the Company or on behalf of the Company, were, at the time the
same were so furnished, complete and correct in all material respects, or have
been subsequently supplemented by other written information, to the extent
necessary to give each Buyer a true and accurate knowledge of the subject matter
of each of them in relation to the Company, its Subsidiaries, the CSD
Acquisition, the CSD Business and the CSD Acquisition Assets acquired in
connection with the CSD Acquisition, in all material respects, (D) no
representation, warranty or statement made by the Company or, to its best
knowledge, the sellers or any other party thereto other than the Company, at the
time they were made in any CSD Acquisition Document, or any agreement,
certificate, statement or document required to be delivered pursuant to any CSD
Acquisition Document contains any untrue statement of material fact or omits to
state a material fact necessary in order to make the statements contained in
such CSD Acquisition Documents not misleading in light of the circumstances in
which they were made, and (E) in connection with the CSD Acquisition, the
Company and certain of its Subsidiaries are acquiring the CSD Acquisition Assets
and, on the date hereof, after giving effect to the transactions contemplated by
this Agreement and the Financing Agreement, by the CSD Acquisition Documents,
and the Sale Order (as defined herein), will have good title to such CSD
Acquisition Assets free and clear of all Liens other than the Liens created by
the Financing Agreement and the agreements and instruments entered into in
connection therewith and other than Liens permitted by such documents.

                  (ii) The Company (or its representatives) has delivered to
each Buyer a complete and correct copy of the CSD Acquisition Documents,
including all schedules and exhibits thereto and the Sale Order as currently in
effect, (B) each CSD Acquisition Document sets forth the entire agreement and
understanding of the parties thereto relating to the subject matter thereof, and
there are no other agreements, arrangements or understandings, written or oral,
relating to the matters covered thereby, (C) none of the CSD Acquisition
Documents nor the Sale Order has been amended or otherwise modified without the
prior written consent of the Buyers, (D) the execution, delivery and performance
of the CSD Acquisition Documents have been duly authorized by all necessary
action on the part of each such person or entity, (E) the CSD Acquisition has
been effected in accordance with the terms of the Sale Order, the Acquisition
Documents and all applicable law (including, without limitation, the United
States Bankruptcy Code (11 U.S.C. ss. 101, et seq.) (the "Bankruptcy Code"), as
amended, and any successor statute), (F) at the time of consummation of the CSD
Acquisition, there does not exist any judgment, order or injunction prohibiting
or imposing any material adverse condition upon the consummation of the CSD
Acquisition, (G) at the time of consummation thereof, all consents and approvals
of, and filings and registrations with, and all other actions in respect of, all

                                      -28-

<PAGE>

Legal Requirements required in order to consummate the CSD Acquisition shall
have been obtained, given, filed or taken and shall be in full force and effect,
(viii) all actions taken by the Company and its Subsidiaries pursuant to or in
furtherance of the CSD Acquisition have been taken in compliance in all material
respects with respective Acquisition Documents, the Bankruptcy Code and the Sale
Order, (ix) the Company and its Subsidiaries did not incur or assume any
liabilities or obligations pursuant to or in connection with the CSD Acquisition
other than those liabilities and obligations set forth on Schedule 3(cc)(ii),
and (x) each Acquisition Document is the legal, valid and binding obligation of
the parties thereto, enforceable against such parties in accordance with its
terms.

                  dd. Investment Company Status. The Company is not, and upon
consummation of the sale of the Securities and after giving effect to the CSD
Acquisition, will not be, an "investment company," a company controlled by an
"investment company" or an "affiliated person" of, or "promoter" or "principal
underwriter" for, an "investment company" as such terms are defined in the
Investment Company Act of 1940, as amended.

                  ee. Foreign Corrupt Practices. Neither the Company nor any of
its Subsidiaries, nor any director, officer, agent, employee or other person
acting on behalf of the Company or any Subsidiary has, in the course of his
actions for, or on behalf of, the Company or any Subsidiary used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful
expenses relating to political activity; made any direct or indirect unlawful
payment to any foreign or domestic government official or employee from
corporate funds; violated or is in violation of any provision of the U.S.
Foreign Corrupt Practices Act of 1977; or made any bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic
government official or employee.

                  ff. Solvency. The Company individually and together with its
Subsidiaries on a consolidated basis (both before and after giving effect to the
CSD Acquisition, the transactions contemplated by this Agreement, the Financing
Agreement and the Congress Loan Documents) is solvent (i.e., its assets have a
fair market value in excess of the amount required to pay its probable
liabilities on its existing debts as they become absolute and matured) and
currently the Company has no information that would lead it to reasonably
conclude that the Company would not have, nor does it intend to take any action
that would impair, its ability to pay its debts from time to time incurred in
connection therewith as such debts mature.

                  gg. Broker's or Finder's Commissions. Except as set forth on
Schedule 3(gg), no broker's or finder's fee or commission will be payable by or
on behalf of the Company or any of its Subsidiaries with respect to the issuance
and sale of the Securities.

              4.  COVENANTS.

                  a.  Reasonable Best Efforts. Each party shall use its
reasonable best efforts to timely satisfy each of the conditions to be satisfied
by it as provided in Sections 6 and 7 of this Agreement.

                  b.  Use of Proceeds. The Company will use the proceeds from
the sale of the Preferred Shares as described with particularity on Schedule
4(b).

                                      -29-

<PAGE>

               c. Financial Information.

                  (i)   So long as any of the Securities remain outstanding, the
Company will provide the following information to each Buyer:

                  (A)   as soon as practicable and in any event within 45 days
after the end of each quarterly period (other than the last quarterly period) in
each fiscal year, consolidated statements of operations, stockholders' equity
and cash flows of the Company and its Subsidiaries for the period from the
beginning of the current fiscal year to the end of such quarterly period, and a
consolidated balance sheet of the Company and its Subsidiaries as at the end of
such quarterly period, setting forth in each case in comparative form figures
for the corresponding period in the preceding fiscal year, and certified by the
Chief Financial Officer of the Company, subject to changes resulting from
year-end adjustments;

                  (B)   as soon as practicable and in any event within 90 days
after the end of each fiscal year, consolidated statements of operations,
stockholders' equity and cash flows of the Company and its Subsidiaries for such
year, and the consolidated balance sheet of the Company and its Subsidiaries as
at the end of such year, setting forth in each case in comparative form
corresponding consolidated figures from the preceding annual audit and certified
to the Company by independent public accountants of recognized national standing
selected by the Company;

                  (C)   promptly after their becoming available, copies of all
registration statements and reports which the Company or any of its Subsidiaries
shall have filed with the SEC or any national securities exchange or quotation
system;

                  (D)   promptly after the mailing thereof to the holders of
Common Stock of the Company, copies of all financial statements, reports and
proxy statements so mailed;

                  (E)   promptly after their becoming available, copies of all
reports and compliance certificates filed in connection with the Financing
Agreements and the Congress Facility; and

                  (F)   true, complete and correct copies of all documents,
reports, financial data and other information that each Buyer may reasonably
request.

                  (ii)  The Company shall permit the authorized representatives
designated by each Buyer to visit and inspect any of the properties of the
Company or any of its Subsidiaries, including their books of account, and to
discuss their affairs, finances and accounts with their officers, all at such
times as each Buyer may reasonably request.

                  (iii) Each Buyer shall have the right to consult with and
advise the management of the Company and its subsidiaries, upon reasonable
notice at reasonable times from time to time, on all matters relating to the
operation of the Company and its Subsidiaries.

               d. Reservation of Shares. The Company shall take all action
necessary to at all times have authorized, and reserved for the purpose of
issuance of shares of

                                      -30-

<PAGE>

Common Stock needed to provide for the issuance of the Conversion Shares
issuable upon conversion of all outstanding Preferred Shares (without regard to
any limitations on conversions) in accordance with the terms of the Certificate.

                  e. Listing. The Company shall promptly secure the listing of
all of the Registrable Securities (as defined in the Investors Rights Agreement)
upon each national securities exchange and automated quotation system, if any,
upon which shares of Common Stock are then listed (subject to official notice of
issuance) and shall maintain, so long as any other shares of Common Stock shall
be so listed, such listing of all Registrable Securities from time to time
issuable under the terms of the Transaction Documents and the Certificate. So
long as any Securities are outstanding, the Company shall maintain the Common
Stock's authorization for quotation on the Nasdaq National Market or for listing
on the New York Stock Exchange (as applicable, the "Principal Market"). So long
as any Preferred Shares are outstanding and other than in connection with
Organic Changes (as defined in the Certificate) that have been properly
authorized by the holders of Preferred Shares in accordance with the
Certificate, neither the Company nor any of its Subsidiaries shall take any
action which would be reasonably expected to result in the delisting or
suspension of the Common Stock from the Principal Market. The Company shall pay
all fees and expenses in connection with satisfying its obligations under this
Section 4(f).

                  f. Proxy Statement. The Company shall provide each stockholder
entitled to vote at the next meeting of stockholders of the Company, which
meeting shall occur on or before April 30, 2003 and the record date for such
meeting shall be established by the Company's Board of Directors on or before
March 15, 2003; a proxy statement, together with a form of proxies, which have
been previously approved by the Buyers and a counsel of their choice, soliciting
each such stockholder's affirmative vote at such stockholder meeting for
approval for the issuance of a number of Conversion Shares greater in the
aggregate than 19.99% of the number of shares of Common Stock outstanding
immediately prior to the Closing Date pursuant to applicable law, the rules of
the NASD and any other rules and regulations of the Principal Market (such
affirmative approval being referred to herein as the "Stockholder Approval"),
and the Company shall use its best efforts to solicit proxies to vote in favor
of such issuance and to cause the Board of Directors of the Company to recommend
to the stockholders that they approve such proposal.

                  g. Compliance with Law. The Company shall, and shall cause its
Subsidiaries, to comply in all material respects with all applicable Legal
Requirements (including, without limitation, all Environmental Laws).

              5.  TRANSFER AGENT INSTRUCTIONS.

                  The Company shall issue irrevocable instructions to its
transfer agent, and any subsequent transfer agent, to issue certificates or
credit shares to the applicable balance accounts at the Depository Trust Company
("DTC"), registered in the name of each Buyer or its respective nominee(s), for
the Conversion Shares in such amounts as specified from time to time by each
Buyer to the Company upon conversion of the Preferred Shares (the "Irrevocable
Transfer Agent Instructions"), a form of which is attached as Exhibit D hereto.
Prior to registration of the Conversion Shares under the 1933 Act, all such
certificates shall bear the

                                      -31-

<PAGE>

restrictive legend specified in Section 2(g) of this Agreement. The Company
warrants that no instruction other than the Irrevocable Transfer Agent
Instructions referred to in this Section 5 and stop transfer instructions to
give effect to Section 2(f) hereof (in the case of the Conversion Shares, prior
to registration of the Conversion Shares under the 1933 Act) will be given by
the Company to its transfer agent and that the Securities shall otherwise be
freely transferable on the books and records of the Company as and to the extent
provided in this Agreement, the Certificate and the Investors Rights Agreement.
If a Buyer provides the Company with an opinion of counsel, in a form reasonably
acceptable to the Company, to the effect that a public sale, assignment or
transfer of Securities may be made without registration under the 1933 Act or
the Buyer provides the Company with reasonable assurances that the Securities
can be sold pursuant to Rule 144 without any restriction as to the number of
securities acquired as of a particular date that can then be immediately sold,
the Company shall permit the transfer, and, in the case of the Conversion
Shares, promptly instruct its transfer agent to issue one or more certificates,
or credit shares to one or more balance accounts at DTC, in such name and in
such denominations as specified by such Buyer and without any restrictive
legend. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Buyers by vitiating the intent and
purpose of the transaction contemplated hereby. Accordingly, the Company
acknowledges that the remedy at law for a breach of its obligations under this
Section 5 will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of the provisions of this Section 5, that the Buyers shall
be entitled, in addition to all other available remedies, to an order and/or
injunction restraining any breach and requiring immediate issuance and transfer,
without the necessity of showing economic loss and without any bond or other
security being required.

            6.   CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

                  The obligation of the Company to issue and sell the Preferred
Shares to each Buyer at the Closing is subject to the satisfaction, at or before
the Closing Date, of each of the following conditions, provided that these
conditions are for the Company's sole benefit and may be waived by the Company
at any time in its sole discretion by providing each Buyer with prior written
notice thereof:

                  a. Such Buyer shall have executed each of the Transaction
Documents to which it is a party and delivered the same to the Company.

                  b. Such Buyer shall have delivered to the Company the Purchase
Price for the Preferred Shares being purchased by such Buyer at the Closing by
wire transfer of immediately available funds pursuant to the wire instructions
provided by the Company at least two (2) Business Days prior to the Closing.

                  c. The representations and warranties of such Buyer shall be
true and correct in all material respects as of the date when made and as of the
Closing Date as though made at that time (except for representations and
warranties that speak as of a specific date), and such Buyer shall have
performed, satisfied and complied in all material respects with the covenants,
agreements and conditions required by the Transaction Documents to be performed,
satisfied or complied with by such Buyer at or prior to the Closing Date.

                                      -32-

<PAGE>

             7.   CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.

                  The obligation of each Buyer hereunder to purchase the
Preferred Shares from the Company at the Closing is subject to the satisfaction,
at or before the Closing Date, of each of the following conditions, provided
that these conditions are for each Buyer's sole benefit and may be waived by
such Buyer at any time in its sole discretion by providing the Company with
prior written notice thereof:

                  a. (i) The Company shall have executed each of the Transaction
Documents and copies of the agreements and documents evidencing or otherwise
relating to the Financing Agreement (all certified as true, complete and correct
by the Chief Executive Officer or Chief Financial Officer of the Company) and
delivered the same to such Buyer, (ii) McKim shall have executed and delivered
to the Buyers the Investors Rights Agreement and (iii) each party to the Voting
Agreement shall have executed and delivered to the Buyers the Voting Agreement.

                  b. The Certificate shall have been filed with and made
effective by the Secretary of State of the Commonwealth of Massachusetts, and a
copy thereof stamped as filed by the Secretary of State of the Commonwealth of
Massachusetts shall have been delivered to such Buyer.

                  c. The order of the United States Bankruptcy Court approving
the CSD Acquisition (the "Sale Order") shall be in the form attached hereto as
Exhibit E and (i) shall continue to be in full force and effect without
modification, amendment or supplement, (ii) no appeal shall have been filed
within the time period specified by Rule 8002(a) of the Federal Rules of
Bankruptcy Procedure ("FRBP"), (iii) in the event a timely appeal has been
filed, the effectiveness of the Sale Order shall not have been stayed in
accordance with Rule 8005 of the FRBP and (iv) in the event such order was
stayed pending appeal, such stay shall have been terminated by a subsequent
court order.

                  d. The Company shall have consummated the CSD Acquisition
pursuant to the Acquisition Documents (without any further amendment or
modification thereto that has not been approved in writing by the Buyers). All
conditions precedent to the obligations of all parties to the Acquisition
Documents to the consummation of the CSD Acquisition shall have been satisfied
(or, with the prior written consent of the Buyers, waived) in the reasonable
judgment of such Buyer.

                  e. The Company and its Subsidiaries shall have obtained all
required licenses, waivers, consents and approvals, governmental and otherwise
in connection with the transactions contemplated by the Financing Agreement,
this Agreement and the operation of the Company's business (including the CSD
Acquisition), and such licenses, waivers and consents and approvals shall be in
full force and effect.

                  f. Such Buyer shall have determined, in its sole discretion,
that no event or development shall have occurred since June 30, 2002 which could
have a Material Adverse Effect and that no material disruption or adverse
developments in the financial markets

                                      -33-

<PAGE>

generally or affecting the securities of companies in the Company's industry
which makes it inadvisable for such Buyer to proceed with the purchase of the
Preferred Shares has occurred.

                  g. There shall exist no claim, action, suit, investigation,
litigation or proceeding, pending or threatened in any court or before any
arbitrator or Governmental Authority which relates to the CSD Acquisition, the
Sale Order, the Acquisition Documents, this Agreement or the Financing Agreement
or which, in the opinion of such Buyer, has any reasonable likelihood of having
a Material Adverse Effect.

                  h. The Company and its Subsidiaries shall have received the
proceeds of the advance under the $100,000,000 revolving credit facility ( the
"Congress Loans") to be provided by Congress Financial Corporation ("Congress")
and there shall be not less than $25 million in excess borrowings available
under the Congress Loan Documents as of the Closing Date, after giving effect to
the CSD Acquisition, the transactions contemplated hereby, under the Financing
Agreement and the Congress Loan Documents, and such Buyer shall have received
copies of the loan agreement, promissory note and other agreements, instrument,
certificates and documents securing, evidencing or otherwise relating to the
Congress Loans (the "Congress Loan Documents"), which shall be in form and
substance satisfactory to such Buyer and which shall be true, correct and
complete, as certified by the Chief Executive Officer or the Chief Financial
Officer of the Company.

                  i. The Common Stock (x) shall be designated for quotation or
listed on the Principal Market and (y) shall not have been suspended by the SEC
or the Principal Market from trading on the Principal Market nor shall
suspension by the SEC or the Principal Market have been threatened either (A) in
writing by the SEC or the Principal Market or (B) by falling below the minimum
listing maintenance requirements of the Principal Market.

                  j. The representations and warranties of the Company (both
before and after giving effect to the CSD Acquisition) shall be true, complete
and correct in all material respects (except for representations and warranties
qualified by materiality or Material Adverse Effect or such similar
qualification, which shall not be further qualified) as of the date when made
and as of the Closing Date as though made at that time (except for
representations and warranties that speak as of a specific date) and the Company
shall have performed, satisfied and complied with the covenants, agreements and
conditions required by the Transaction Documents to be performed, satisfied or
complied with by the Company at or prior to the Closing Date. Such Buyer shall
have received a certificate, executed by the Chief Executive Officer or the
Chief Financial Officer of the Company, dated as of the Closing Date, to the
foregoing effect and as to such other matters as may be reasonably requested by
such Buyer, including, without limitation, an update as of the Closing Date
regarding the representation contained in Section 3(c) above.

                  k. Such Buyer shall have received the opinion of Davis, Malm &
D'Agostine, P.C., dated as of the Closing Date, in form, scope and substance
satisfactory to such Buyer and in substantially the form attached hereto as
Exhibit F.

                                      -34-

<PAGE>

                  l. The Company shall have executed and delivered to such Buyer
the Preferred Stock Certificates (in such denominations as such Buyer shall
request) for the Preferred Shares being purchased by such Buyer at the Closing.

                  m. The Board of Directors of the Company shall have adopted
resolutions consistent with Section 3(b) above and in a form reasonably
acceptable to such Buyer (the "Resolutions").

                  n. As of the Closing Date, the Company shall have reserved out
of its authorized and unissued Common Stock, solely for the purpose of effecting
the conversion of the Preferred Shares, at least 2,380,953 shares of Common
Stock.

                  o. The Irrevocable Transfer Agent Instructions, in the form of
Exhibit D attached hereto, shall have been delivered to such Buyer, duly
executed by the Company and acknowledged in writing by the Company's transfer
agent.

                  p. The Company shall have delivered to such Buyer a
certificate evidencing the incorporation and good standing of the Company and
each Subsidiary in such entity's state of incorporation or organization issued
by the Secretary of State of such state of incorporation or organization as of a
date within five days of the Closing Date.

                  q. The Company shall have delivered to such Buyer a certified
copy of the Articles of Organization as certified (or, in the case of the
Certificate, stamped as filed) by the Secretary of State of the Commonwealth of
Massachusetts as of a date within five (5) days of the Closing Date.

                  r. The Company shall have delivered to such Buyer a
secretary's certificate, dated as of the Closing Date, certifying as to (A) the
Resolutions, (B) the Articles of Organization and (C) the By-laws, each as in
effect at the Closing.

                  s. The Company shall have made all filings under all
applicable federal and state securities laws necessary to consummate the
issuance of the Securities pursuant to this Agreement in compliance with such
laws.

                  t. The Company shall have delivered to such Buyer a letter
from the Company's transfer agent certifying the number of shares of Common
Stock outstanding as of a date within five days of the Closing Date.

                  u. Such Buyer shall be satisfied, in its sole discretion, with
the terms, amount and scope of all Policies in effect with respect to the
Company and its Subsidiaries (both before and after giving effect to the CSD
Acquisition).

                  v. Such Buyer shall be satisfied, in its sole discretion, with
all ERISA, environmental, tax and labor matters relating to the Company and its
Subsidiaries (both before and after giving effect to the CSD Acquisition).

                                      -35-

<PAGE>

                  w. Such Buyer shall be satisfied, in its sole discretion, with
the terms, conditions and indemnities of each contract, agreement or instrument
being assumed or guaranteed by the Company in connection with the CSD
Acquisition.

                  x. After giving effect to the payment of the purchase price
for the CSD Acquisition and all expenses of the Company and its Subsidiaries in
connection therewith, the Financing Agreement and the Congress Loans, there
shall be not less than $25,000,000 of unrestricted borrowing availability under
the Congress Loan Documents, as certified to such Buyer in writing by the Chief
Executive Officer or Chief Financial Officer of the Company.

                  y. Such Buyer shall have received such other agreements,
instruments, certificates and other documents as it may determine are customary
for the transactions contemplated by the Transaction Documents, in each case in
form and substance satisfactory to such Buyer.

              8.  INDEMNIFICATION.

              In consideration of each Buyer's execution and delivery of the
Transaction Documents and acquiring the Securities thereunder and in addition to
all of the Company's other obligations under the Transaction Documents and the
Certificate, the Company shall defend, protect, indemnify and hold harmless each
Buyer and each other holder of Preferred Shares and all of their stockholders,
officers, directors, managers, members, employees and direct or indirect
investors and any of the foregoing persons' agents or other representatives
(including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the "Indemnitees")
from and against any and all actions, causes of action, suits, claims, losses,
costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Indemnitee is a party to the action
for which indemnification hereunder is sought), and including reasonable
attorneys' fees and disbursements (the "Indemnified Liabilities"), incurred by
any Indemnitee as a result of, or arising out of, or relating to (a) any
misrepresentation or breach of any representation or warranty made by the
Company in the Transaction Documents, the Certificate or any other certificate,
instrument or document contemplated hereby or thereby, (b) any breach of any
covenant, agreement or obligation of the Company contained in the Transaction
Documents, the Certificate or any other certificate, instrument or document
contemplated hereby or thereby, (c) any cause of action, suit or claim brought
or made against such Indemnitee (other than a cause of action, suit or claim
which is (x) brought or made by the Company and (y) is not a shareholder
derivative suit) and arising out of or resulting from (i) the execution,
delivery, performance or enforcement of the Transaction Documents, the
Certificate or any other certificate, instrument or document contemplated hereby
or thereby, (ii) any transaction financed or to be financed in whole or in part,
directly or indirectly, with the proceeds of the issuance of the Securities or
(iii) the status of such Buyer or holder of Securities as an investor in the
Company. To the extent that the foregoing undertaking by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities which is
permissible under applicable law. Except as otherwise set forth herein, the
mechanics and procedures with respect to the rights and obligations under this
Section 8 shall be the same as those set forth in Section 5 of the Investors
Rights Agreement, including, without

                                      -36-

<PAGE>

limitation, those procedures with respect to the settlement of claims and the
Company's rights to assume the defense of claims.

          9.  MISCELLANEOUS.

              a. Governing Law; Jurisdiction; Jury Trial. All questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of New York,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of New
York. Each party hereby irrevocably submits to the non-exclusive jurisdiction of
the state and federal courts sitting in The City of New York, Borough of
Manhattan, for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein, and
hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

              b. Counterparts. This Agreement may be executed in two or more
identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party; provided that a facsimile signature
shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not
a facsimile signature.

              c. Headings. The headings of this Agreement are for convenience of
reference and shall not form part of, or affect the interpretation of, this
Agreement.

              d. Severability. If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.

              e. Entire Agreement; Amendments. This Agreement supersedes all
other prior oral or written agreements between each Buyer, the Company, their
affiliates and persons acting on their behalf with respect to the matters
discussed herein, and this Agreement and the instruments referenced herein
contain the entire understanding of the parties with respect to the matters
covered herein and therein and, except as specifically set forth herein or
therein,

                                      -37-

<PAGE>

neither the Company nor any Buyer makes any representation, warranty, covenant
or undertaking with respect to such matters. No provision of this Agreement may
be amended or waived other than by an instrument in writing signed by the
Company and the holders of at least a majority of the Preferred Shares then
outstanding. No such amendment shall be effective to the extent that it applies
to less than all of the holders of the Preferred Shares then outstanding. No
consideration shall be offered or paid to any person to amend or consent to a
waiver or modification of any provision of any of the Transaction Documents or
the Certificate unless the same consideration also is offered to all of the
parties to the Transaction Documents or holders of Preferred Shares, as the case
may be.

              f. Notices. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) Business Day after deposit
with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

              If to the Company:

                       Clean Harbors, Inc.
                       1501 Washington Street
                       Braintree, MA 02185
                       Attention: Chief Financial Officer
                       Telephone: 781-849-1800, Ext. 4450
                       Facsimile: 781-848-1632

              With a copy to:

                       Davis, Malm & D'Agostine, P.C.
                       One Boston Place
                       Boston, Massachusetts 02108
                       Attention: C. Michael Malm, Esq.
                       Telephone: 617-365-2500
                       Facsimile: 617-525-6215

              If to the Transfer Agent:

                       American Stock Transfer & Trust Company
                       6201 15/th/ Avenue
                       Brooklyn, NY 11219
                       Attention: Fran Noftel or Donna Ansbro
                       Telephone: 718-921-8200
                       Facsimile: 718-921-8337

                                      -38-

<PAGE>

              If to a Buyer, to it at the address and facsimile number set forth
on the Schedule of Buyers, with copies to such Buyer's representatives as set
forth on the Schedule of Buyers, or at such other address and/or facsimile
number and/or to the attention of such other person as the recipient party has
specified by written notice given to each other party five days prior to the
effectiveness of such change. Written confirmation of receipt (A) given by the
recipient of such notice, consent, waiver or other communication, (B)
mechanically or electronically generated by the sender's facsimile machine
containing the time, date, recipient facsimile number and an image of the first
page of such transmission or (C) provided by a nationally recognized overnight
delivery service shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from a nationally recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

              g. Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties and their respective successors and
assigns, including any purchasers of the Preferred Shares. The Company shall not
assign this Agreement or any rights or obligations hereunder without the prior
written consent of the holders of at least a majority of the Preferred Shares
then outstanding, including by merger or consolidation. A Buyer may assign some
or all of its rights hereunder without the consent of the Company; provided,
however, that the transferee has agreed in writing to be bound by the applicable
provisions of this Agreement.

              h. No Third Party Beneficiaries. This Agreement is intended for
the benefit of the parties hereto and their respective permitted successors and
assigns, and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

              i. Survival. The representations and warranties of the Company and
the Buyers contained in Sections 2 and 3, the agreements and covenants set forth
in Sections 4, 5 and 9, and the indemnification provisions set forth in Section
8, shall survive the Closing. Each Buyer shall be responsible only for its own
representations, warranties, agreements and covenants hereunder.

              j. Publicity. The Company and each Buyer shall have the right to
approve before issuance any press releases or any other public statements with
respect to the transactions contemplated hereby; provided, however, that the
Company shall be entitled, without the prior approval of any Buyer, to make any
press release or other public disclosure with respect to such transactions as is
required by applicable law and regulations (although each Buyer shall be
consulted by the Company in connection with any such press release or other
public disclosure prior to its release and shall be provided with a copy thereof
and in no event may the Company disclose publicly the identity of any Buyer or
their nominees or affiliates without the prior consent of such Buyer).

              k. Further Assurances. Each party shall do and perform, or cause
to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents,
as the other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

                                      -39-

<PAGE>

              l. Placement Agent. Except as disclosed in writing to the Buyers,
the Company acknowledges that it has not engaged any Person as placement agent
or broker in connection with the sale of the Preferred Shares. The Company shall
be responsible for the payment of any placement agent's fees, financial advisory
fees, or brokers' commissions (other than for persons engaged by or on behalf of
any Buyer) relating to or arising out of the transactions contemplated hereby.
The Company shall pay, and hold each Buyer harmless against, any liability, loss
or expense (including, without limitation, attorney's fees and out-of-pocket
expenses) arising in connection with any such claim.

              m. No Strict Construction. The language used in this Agreement
will be deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party.

              n. Remedies. Each Buyer and each holder of the Securities shall
have all rights and remedies set forth in the Transaction Documents and the
Certificate and all rights and remedies which such holders have been granted at
any time under any other agreement or contract and all of the rights which such
holders have under any law. Any person having any rights under any provision of
this Agreement shall be entitled to enforce such rights specifically (without
posting a bond or other security), to recover damages by reason of any breach of
any provision of this Agreement and to exercise all other rights granted by law.

              o. Payment Set Aside. To the extent that the Company makes a
payment or payments to any Buyer hereunder or pursuant to the Investors Rights
Agreement, the Certificate or the Buyers enforce or exercise their rights
hereunder or thereunder, and such payment or payments or the proceeds of such
enforcement or exercise or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside, recovered from, disgorged
by or are required to be refunded, repaid or otherwise restored to the Company,
a trustee, receiver or any other person under any law (including, without
limitation, any bankruptcy law, state or federal law, common law or equitable
cause of action), then to the extent of any such restoration the obligation or
part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred.

                            [signature page follows]

                                      -40-

<PAGE>

         IN WITNESS WHEREOF, the Buyers and the Company have caused this
Securities Purchase Agreement to be duly executed as of the date first written
above.

COMPANY:

CLEAN HARBORS, INC.

By: /s/ Stephen H. Moynihan
    -------------------------------
    Name:  Stephen H. Moynihan
    Title: Senior Vice President

<PAGE>

                                               BUYERS:

                                               CERBERUS CH LLC

                                               By: Cerberus Partners, L.P.
                                                   its Managing Member

                                               By: Cerberus Associates, L.L.C.
                                                   its General Partner

                                               By:  /s/ Kevin Genda
                                                   ---------------------------
                                                    Name:  Kevin P. Genda
                                                    Title: Senior Vice President

<PAGE>

                                         OAK HILL SECURITIES FUND, L.P.

                                         By: Oak Hill Securities GenPar, L.P.
                                             its General Partner

                                         By: Oak Hill Securities MGP, Inc.
                                             its General Partner

                                         By: /s/ William H. Bohmsack, Jr.
                                             -----------------------------------
                                               Name:  William H. Bohmsack, Jr.
                                               Title: Vice President

                                         OAK HILL SECURITIES FUND II, L.P.

                                         By: Oak Hill Securities GenPar II, L.P.
                                             its General Partner

                                         By: Oak Hill Securities MGP II, Inc.
                                             its General Partner

                                         By: /s/ William H. Bohmsack, Jr.
                                             -----------------------------------
                                               Name:  William H. Bohmsack, Jr.
                                               Title: Vice President

                                         LERNER ENTERPRISES, L.P.

                                         By: Oak Hill Asset Management, Inc.
                                             As advisor and attorney-in-fact to
                                             Lerner Enterprises, L.P.

                                         By: /s/ William H. Bohmsack, Jr.
                                             -----------------------------------
                                               Name:  William H. Bohmsack, Jr.
                                               Title: Vice President

<PAGE>

                                         P&PK FAMILY LTD. PARTNERSHIP

                                         By: Oak Hill Asset Management, Inc.
                                             As advisor and attorney-in-fact to
                                             P&PK Family Ltd. Partnership

                                         By: /s/ William H. Bohmsack, Jr.
                                            ------------------------------------
                                              Name:  William H. Bohmsack, Jr.
                                              Title: Vice President

                                         CARDINAL INVESTMENT PARTNERS I, L.P.

                                        By: Oak Hill Advisors, L.P.
                                            As advisor and attorney-in-fact to
                                            Cardinal Investment Partners I, L.P.

                                        By: Oak Hill Advisors MGP, Inc.
                                            its General Partner

                                        By: /s/ William H. Bohmsack, Jr.
                                            ------------------------------------
                                              Name:  William H. Bohmsack, Jr.
                                              Title: Managing Director

<PAGE>

                                   SCHEDULE A

<TABLE>
<CAPTION>
                                           Number of             Amount of
         Investor Address                  Preferred           Commitment of         Investor's Representatives' Address
       and Facsimile Number                 Shares           Preferred Shares               and Facsimile Number
--------------------------------------   --------------    --------------------    ----------------------------------------
<S>                                      <C>               <C>                     <C>
Cerberus CH LLC                              16,750            $16,750,000         Schulte Roth & Zabel LLP
450 Park Avenue, 28/th/ Floor                                                      919 Third Avenue
New York, NY 10022                                                                 New York, NY 10022
Telephone: (212) 891-2100                                                          Attn: Stuart Freedman, Esq.
Facsimile: (212) 891-1540                                                          Telephone: (212) 756-2000
Attention: Kevin Genda and Daniel Wolf                                             Facsimile: (212) 593-5955

Oak Hill Securities Fund, L.P.                                                     Paul, Weiss, Rifkind, Wharton & Garrison
65 East 55/th/ Street                                                              1285 Avenue of the Americas
New York, New York 10022                      3,465            $ 3,465,000         New York, NY 10019
Telephone: (212) 326-1552                                                          Telephone: (212) 373-3000
Facsimile: (212) 838-8411                                                          Facsimile: (212) 757-3990
Attention: William H. Bohnsack, Jr.                                                Attention: Eric Goodison

Oak Hill Securities Fund II, L.P.                                                  Paul, Weiss, Rifkind, Wharton & Garrison
65 East 55/th/ Street                                                              1285 Avenue of the Americas
New York, New York 10022                      3,465            $ 3,465,000         New York, NY 10019
Telephone: (212) 326-1552                                                          Telephone: (212) 373-3000
Facsimile: (212) 838-8411                                                          Facsimile: (212) 757-3990
Attention: William H. Bohnsack, Jr.                                                Attention: Eric Goodison

Lerner Enterprises, L.P.                                                           Paul, Weiss, Rifkind, Wharton & Garrison
65 East 65/th/ Street                                                              1285 Avenue of the Americas
New York, New York 10022                       730             $   730,000         New York, NY 10019
Telephone: (212) 326-1552                                                          Telephone: (212) 373-3000
Facsimile: (212) 838-8411                                                          Facsimile: (212) 757-3990
Attention: William H. Bohnsack, Jr.                                                Attention: Eric Goodison

P&PK Family Ltd. Partnership                                                       Paul, Weiss, Rifkind, Wharton & Garrison
65 East 55/th/ Street                                                              1285 Avenue of the Americas
New York, New York 10021                       165             $   165,000         New York, NY 10019
Telephone: (212) 326-1552                                                          Telephone: (212) 373-3000
Facsimile: (212) 838-8411                                                          Facsimile: (212) 757-3990
Attention: William H. Bohnsack, Jr.                                                Attention: Eric Goodison

Cardinal Investment Partners I, L.P.                                               Paul, Weiss, Rifkind, Wharton & Garrison
65 East 55/th/ Street                          425             $   425,000         1285 Avenue of the Americas
New York, New York 10021                                                           New York, NY 10019
Telephone: (212) 326-1552                                                          Telephone: (212) 373-3000
Facsimile: (212) 838-8411                                                          Facsimile: (212) 757-3990
Attention: William H. Bohnsack, Jr.                                                Attention: Eric Goodison
</TABLE><PAGE>

                                                                    Exhibit 10.3

               THE PROVIDENT BANK EMPLOYEE SAVINGS INCENTIVE PLAN

<PAGE>

                                TABLE OF CONTENTS

                                   ARTICLE I
                                  DEFINITIONS

                                   ARTICLE II
                                 ADMINISTRATION

2.1     POWERS AND RESPONSIBILITIES OF THE EMPLOYER ........................13
2.2     DESIGNATION OF ADMINISTRATIVE AUTHORITY ............................14
2.3     ALLOCATION AND DELEGATION OF RESPONSIBILITIES ......................14
2.4     POWERS AND DUTIES OF THE ADMINISTRATOR .............................14
2.5     RECORDS AND REPORTS ................................................15
2.6     APPOINTMENT OF ADVISERS ............................................15
2.7     INFORMATION FROM EMPLOYER ..........................................16
2.8     PAYMENT OF EXPENSES ................................................16
2.9     MAJORITY ACTIONS ...................................................16
2.10    CLAIMS PROCEDURE ...................................................16
2.11    CLAIMS REVIEW PROCEDURE ............................................16

                                  ARTICLE III
                                  ELIGIBILITY

3.1     CONDITIONS OF ELIGIBILITY ..........................................17
3.2     EFFECTIVE DATE OF PARTICIPATION ....................................17
3.3     DETERMINATION OF ELIGIBILITY .......................................18
3.4     TERMINATION OF ELIGIBILITY .........................................18
3.5     OMISSION OF ELIGIBLE EMPLOYEE ......................................18
3.6     INCLUSION OF INELIGIBLE EMPLOYEE ...................................18
3.7     REHIRED EMPLOYEES AND BREAKS IN SERVICE ............................18

                                   ARTICLE IV
                          CONTRIBUTION AND ALLOCATION

4.1     FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION ......................19
4.2     TIME OF PAYMENT OF EMPLOYER CONTRIBUTION ...........................19

<PAGE>

4.3     ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS ...............19
4.3A    SPECIFIED MINIMUM EMPLOYER CONTRIBUTIONS ...........................24
4.4     MAXIMUM ANNUAL ADDITIONS ...........................................25
4.5     ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS ..........................29
4.6     ROLLOVERS AND PLAN-TO-PLAN TRANSFERS FROM QUALIFIED PLANS ..........30
4.7     VOLUNTARY CONTRIBUTIONS AND MATCHING EMPLOYER CONTRIBUTIONS ........31
4.8     DIRECTED INVESTMENT ACCOUNT ........................................32
4.9     ACTUAL CONTRIBUTION PERCENTAGE TESTS ...............................36
4.10    ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS .................39
4.11    QUALIFIED MILITARY SERVICE .........................................41

                                   ARTICLE V
                                   VALUATIONS

5.1     VALUATION OF THE TRUST FUND ........................................42
5.2     METHOD OF VALUATION ................................................42

                                   ARTICLE VI
                   DETERMINATION AND DISTRIBUTION OF BENEFITS

6.1     DETERMINATION OF BENEFITS UPON RETIREMENT ..........................42
6.2     DETERMINATION OF BENEFITS UPON DEATH ...............................42
6.3     DETERMINATION OF BENEFITS IN EVENT OF DISABILITY ...................44
6.4     DETERMINATION OF BENEFITS UPON TERMINATION .........................44
6.5     DISTRIBUTION OF BENEFITS ...........................................46
6.6     DISTRIBUTION OF BENEFITS UPON DEATH ................................49
6.7     TIME OF SEGREGATION OR DISTRIBUTION ................................50
6.8     DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY ..................50
6.9     LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN .....................50
6.10    PRE-RETIREMENT DISTRIBUTION ........................................51
6.11    ADVANCE DISTRIBUTION FOR HARDSHIP ..................................51
6.12    QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION ....................52
6.13    DIRECT ROLLOVER ....................................................52

<PAGE>
                                  ARTICLE VII
                       AMENDMENT, TERMINATION AND MERGERS

7.1     AMENDMENT ..........................................................53
7.2     TERMINATION ........................................................54
7.3     MERGER, CONSOLIDATION OR TRANSFER OF ASSETS ........................55

                                  ARTICLE VIII
                                   TOP HEAVY

8.1     TOP HEAVY PLAN REQUIREMENTS ........................................55
8.2     DETERMINATION OF TOP HEAVY STATUS ..................................55

                                   ARTICLE IX
                                 MISCELLANEOUS

9.1     PARTICIPANT'S RIGHTS ...............................................58
9.2     ALIENATION .........................................................58
9.3     CONSTRUCTION OF PLAN ...............................................59
9.4     GENDER AND NUMBER ..................................................59
9.5     LEGAL ACTION .......................................................59
9.6     PROHIBITION AGAINST DIVERSION OF FUNDS .............................59
9.7     EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE .........................60
9.8     INSURER'S PROTECTIVE CLAUSE ........................................60
9.9     RECEIPT AND RELEASE FOR PAYMENTS ...................................60
9.10    ACTION BY THE EMPLOYER .............................................60
9.11    NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY .................61
9.12    HEADINGS ...........................................................61
9.13    APPROVAL BY INTERNAL REVENUE SERVICE ...............................61
9.14    UNIFORMITY .........................................................62

<PAGE>

               THE PROVIDENT BANK EMPLOYEE SAVINGS INCENTIVE PLAN

         THIS PLAN, hereby adopted this __________ day of ___________________,
by The Provident Bank (herein referred to as the "Employer").

                              W I T N E S S E T H:

         WHEREAS, the Employer heretofore established a Profit Sharing Plan
effective January 1, 1975, (hereinafter called the "Effective Date") known as
the Provident Savings Bank Employee Savings Incentive Plan and which plan shall
hereinafter be known as The Provident Bank Employee Savings Incentive Plan
(herein referred to as the "Plan") in recognition of the contribution made to
its successful operation by its employees and for the exclusive benefit of its
eligible employees; and

         WHEREAS, under the terms of the Plan, the Employer has the ability to
amend the Plan, provided the Trustee joins in such amendment if the provisions
of the Plan affecting the Trustee are amended;

         NOW, THEREFORE, effective January 1, 1997, except as otherwise
provided, the Employer in accordance with the provisions of the Plan pertaining
to amendments thereof, hereby amends the Plan in its entirety and restates the
Plan to provide as follows:

                                    ARTICLE I
                                   DEFINITIONS

         1.1 "Act" means the Employee Retirement Income Security Act of 1974, as
it may be amended from time to time.

         1.2 "Administrator" means the person or entity designated by the
Employer pursuant to Section 2.2 to administer the Plan on behalf of the
Employer.

         1.3 "Affiliated Employer" means any corporation which is a member of a
controlled group of corporations (as defined in Code Section 414(b)) which
includes the Employer; any trade or business (whether or not incorporated) which
is under common control (as defined in Code Section 414(c)) with the Employer;
any organization (whether or not incorporated) which is a member of an
affiliated service group (as defined in Code Section 414(m)) which includes the
Employer; and any other entity required to be aggregated with the Employer
pursuant to Regulations under Code Section 414(o).

         1.4 "Aggregate Account" means, with respect to each Participant, the
value of all accounts maintained on behalf of a Participant, whether
attributable to Employer or Employee contributions, subject to the provisions of
Section 8.2.

                                       1

<PAGE>

         1.5 "Anniversary Date" means the last day of the Plan Year.

         1.5A "Applicable Tax Year" means the Tax Year in which the Plan Year
begins.

         1.6 "Beneficiary" means the person (or entity) to whom the share of a
deceased Participant's total account is payable, subject to the restrictions of
Sections 6.2 and 6.6.

         1.7 "Code" means the Internal Revenue Code of 1986, as amended or
replaced from time to time.

         1.8 "Compensation" with respect to any Participant means such
Participant's wages as defined in Code Section 3401(a) and all other payments of
compensation by the Employer (in the course of the Employer's trade or business)
for a Plan Year for which the Employer is required to furnish the Participant a
written statement under Code Sections 6041(d), 6051(a)(3) and 6052. Compensation
must be determined without regard to any rules under Code Section 3401(a) 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 Code Section 3401(a)(2)).

         For purposes of this Section, the determination of Compensation shall
be made by:

                  (a)      excluding commissions, except that commissions shall
                           be included for dedicated salespeople but not in
                           excess of the highest dollar amount of commissions
                           that could be received which, when added to other
                           includible wages and payments, is one dollar ($1)
                           less than the Highly Paid Employee dollar limit for
                           the determination year (and not for the preceding
                           year), as determined under the Code Section 414 (q)
                           (1) (e.g., the Highly Paid Employee dollar limit for
                           the determination year 2001 is $85,000 and for 2002
                           is $90,000).

                  (b)      excluding bonuses.

                  (c)      including amounts which are contributed by the
                           Employer pursuant to a salary reduction agreement and
                           which are not includible in the gross income of the
                           Participant under Code Sections 125, 132(f)(4) for
                           Plan Years beginning after December 31, 2000,
                           402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and
                           Employee contributions described in Code Section
                           414(h)(2) that are treated as Employer contributions.

         For a Participant's initial year of participation, Compensation shall
be recognized for the entire Plan Year.

         Compensation in excess of $150,000 (or such other amount provided in
the Code) shall be disregarded. Such amount shall be adjusted for increases in
the cost of living in accordance with Code Section 401(a)(17)(B), except that
the dollar increase in effect on January 1 of any calendar year shall be
effective for the Plan Year beginning with or within such calendar year. For any
short Plan Year the Compensation limit shall be an amount equal to the
Compensation limit for the calendar year in which the Plan Year begins
multiplied by the ratio obtained by dividing the number of full months in the
short Plan Year by twelve (12).

                                       2

<PAGE>

         For Plan Years beginning after December 31, 1996, for purposes of
determining Compensation, the family member aggregation rules of Code Section
401(a)(17) and Code Section 414(q)(6) (as in effect prior to the Small Business
Job Protection Act of 1996) are eliminated.

         If any class of Employees is excluded from the Plan, then Compensation
for any Employee who becomes eligible or ceases to be eligible to participate
during a Plan Year shall only include Compensation while the Employee is an
Eligible Employee.

         1.9 "Contract" or "Policy" means any life insurance policy, retirement
income policy or annuity contract (group or individual) issued pursuant to the
terms of the Plan. In the event of any conflict between the terms of this Plan
and the terms of any contract purchased hereunder, the Plan provisions shall
control.

         1.10 "Designated Investment Alternative" means a specific investment
identified by name by the Employer (or such other Fiduciary who has been given
the authority to select investment options) as an available investment under the
Plan to which Plan assets may be invested by the Trustee pursuant to the
investment direction of a Participant.

         1.11 "Directed Investment Option" means one or more of the following:

                           (a) a Designated Investment Alternative.

                           (b) any other investment permitted by the Plan and
                  the Participant Direction Procedures to which Plan assets may
                  be invested by the Trustee pursuant to the investment
                  direction of a Participant.

         1.12 [Reserved.]

         1.13 "Eligible Employee" means any Employee except that Employees who
are Leased Employees within the meaning of Code Sections 414(n)(2) and 414(o)(2)
shall not be eligible to participate in this Plan.

         Employees whose employment is governed by the terms of a collective
bargaining agreement between Employee representatives (within the meaning of
Code Section 7701(a)(46)) and the Employer under which retirement benefits were
the subject of good faith bargaining between the parties will not be eligible to
participate in this Plan unless such agreement expressly provides for coverage
in this Plan.

         Employees of Affiliated Employers shall not be eligible to participate
in this Plan unless such Affiliated Employers have specifically adopted this
Plan in writing.

         Employees classified by the Employer as independent contractors who are
subsequently determined by the Internal Revenue Service to be Employees shall
not be Eligible Employees.

         1.14 "Employee" means any person who is employed by the Employer or
Affiliated Employer, and excludes any person who is employed as an independent
contractor. Employee

                                       3

<PAGE>

shall include Leased Employees within the meaning of Code Sections 414(n)(2) and
414(o)(2) unless such Leased Employees are covered by a plan described in Code
Section 414(n)(5) and such Leased Employees do not constitute more than 20% of
the recipient's non-highly compensated work force.

         1.15 "Employer" means The Provident Bank and any successor which shall
maintain this Plan, any predecessor which has maintained this Plan, and
affiliates within the meaning of code sections 414(b), (c), (m) or (o) who adopt
this plan as their own. The Employer is a corporation, with principal offices in
the State of New Jersey.

         1.15A "Employer Stock Fund" Means a Designated Investment Alternative
established to invest primarily in qualifying Employer securities.

         1.16 "Excess Aggregate Contributions" means, with respect to any Plan
Year, the excess of the aggregate amount of the after-tax voluntary Employee
contributions and Matching Employer Contributions made pursuant to Section 4.7
and any qualified non-elective contributions taken into account pursuant to
Section 4.9(c) on behalf of Highly Compensated Participants for such Plan Year,
over the maximum amount of such contributions permitted under the limitations of
Section 4.9(a) (determined by hypothetically reducing contributions made on
behalf of Highly Compensated Participants in order of the actual contribution
ratios beginning with the highest of such ratios).

         1.17 "Fiduciary" means any person who (a) exercises any discretionary
authority or discretionary control respecting management of the Plan or
exercises any authority or control respecting management or disposition of its
assets, (b) renders investment advice for a fee or other compensation, direct or
indirect, with respect to any monies or other property of the Plan or has any
authority or responsibility to do so, or (c) has any discretionary authority or
discretionary responsibility in the administration of the Plan.

         1.18 "Fiscal Year" means the Employer's accounting year of 12 months
commencing on January 1st of each year and ending the following December 31st.

         1.19 "Forfeiture" means that portion of a Participant's Account that is
not Vested, and occurs on the earlier of:

                           (a) the distribution of the entire Vested portion of
                  the Participant's Account of a Former Participant who has
                  severed employment with the Employer, or

                           (b) the last day of the Plan Year in which a Former
                  Participant who has severed employment with the Employer
                  incurs five (5) consecutive 1-Year Breaks in Service.

         Regardless of the preceding provisions, if a Former Participant is
eligible to share in the allocation of Employer contributions or Forfeitures in
the year in which the Forfeiture would otherwise occur, then the Forfeiture will
not occur until the end of the first Plan Year for which the Former Participant
is not eligible to share in the allocation of Employer contributions or
Forfeitures. Furthermore, the term "Forfeiture" shall also include amounts
deemed to be Forfeitures pursuant to any other provision of this Plan.

                                       4

<PAGE>

         1.20 "Former Participant" means a person who has been a Participant,
but who has ceased to be a Participant for any reason.

         1.21 "415 Compensation" with respect to any Participant means such
Participant's wages as defined in Code Section 3401(a) and all other payments of
compensation by the Employer (in the course of the Employer's trade or business)
for a Plan Year for which the Employer is required to furnish the Participant a
written statement under Code Sections 6041(d), 6051(a)(3) and 6052. "415
Compensation" must be determined without regard to any rules under Code Section
3401(a) 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 Code Section 3401(a)(2)).

         For "limitation years" beginning after December 31, 1997, for purposes
of this Section, the determination of "415 Compensation" shall include any
elective deferral (as defined in Code Section 402(g)(3)), and any amount which
is contributed or deferred by the Employer at the election of the Participant
and which is not includible in the gross income of the Participant by reason of
Code Sections 125, 132(f)(4) for "limitation years" beginning after December 31,
2000 or Code Section 457.

         1.22 "414(s) Compensation" means any definition of compensation that
satisfies the nondiscrimination requirements of Code Section 414(s) and the
Regulations thereunder. The period for determining 414(s) Compensation must be
either the Plan Year or the calendar year ending with or within the Plan Year.
An Employer may further limit the period taken into account to that part of the
Plan Year or calendar year in which an Employee was a Participant in the
component of the Plan being tested. The period used to determine 414(s)
Compensation must be applied uniformly to all Participants for the Plan Year.

         For Plan Years beginning after December 31, 1996, for purposes of this
Section, the family member aggregation rules of Code Section 414(q)(6) (as in
effect prior to the Small Business Job Protection Act of 1996) are eliminated.

         1.23 "Highly Compensated Employee" means, for Plan Years beginning
after December 31, 1996, an Employee described in Code Section 414(q) and the
Regulations thereunder, and generally means any Employee who:

                           (a) was a "five percent owner" as defined in Section
                  1.29(c) at any time during the "determination year" or the
                  "look-back year"; or

                           (b) for the "look-back year" had "415 Compensation"
                  from the Employer in excess of $80,000. The $80,000 amount is
                  adjusted at the same time and in the same manner as under Code
                  Section 415(d), except that the base period is the calendar
                  quarter ending September 30, 1996.

         The "determination year" means the Plan Year for which testing is being
performed, and the "look-back year" means the immediately preceding twelve (12)
month period.

                                       5

<PAGE>

         A highly compensated former Employee is based on the rules applicable
to determining Highly Compensated Employee status as in effect for the
"determination year," in accordance with Regulation 1.414(q)-1T, A-4 and IRS
Notice 97-45 (or any superseding guidance).

         In determining whether an Employee is a Highly Compensated Employee for
a Plan Year beginning in 1997, the amendments to Code Section 414(q) stated
above are treated as having been in effect for years beginning in 1996.

         For purposes of this Section, for Plan Years beginning prior to January
1, 1998, the determination of "415 Compensation" shall be made by including
amounts that would otherwise be excluded from a Participant's gross income by
reason of the application of Code Sections 125, 402(e)(3), 402(h)(1)(B), and, in
the case of Employer contributions made pursuant to a salary reduction
agreement, Code Section 403(b).

         In determining who is a Highly Compensated Employee, Employees who are
non-resident aliens and who received no earned income (within the meaning of
Code Section 911(d)(2)) from the Employer constituting United States source
income within the meaning of Code Section 861(a)(3) shall not be treated as
Employees. Additionally, all Affiliated Employers shall be taken into account as
a single employer and Leased Employees within the meaning of Code Sections
414(n)(2) and 414(o)(2) shall be considered Employees unless such Leased
Employees are covered by a plan described in Code Section 414(n)(5) and are not
covered in any qualified plan maintained by the Employer. The exclusion of
Leased Employees for this purpose shall be applied on a uniform and consistent
basis for all of the Employer's retirement plans. Highly compensated former
employees shall be treated as Highly Compensated Employees without regard to
whether they performed services during the "determination year."

         1.24 "Highly Compensated Participant" means any Highly Compensated
Employee who is eligible to participate in the component of the Plan being
tested.

         1.25 "Hour of Service" means, for purposes of vesting, each hour for
which an Employee is paid or entitled to payment for the performance of duties
for the Employer.

         1.26 "Hour of Service" means, for purposes of eligibility for
participation, (1) each hour for which an Employee is directly or indirectly
compensated or entitled to compensation by the Employer for the performance of
duties (these hours will be credited to the Employee for the computation period
in which the duties are performed); (2) each hour for which an Employee is
directly or indirectly compensated or entitled to compensation by the Employer
(irrespective of whether the employment relationship has terminated) for reasons
other than performance of duties (such as vacation, holidays, sickness, jury
duty, disability, lay-off, military duty or leave of absence) during the
applicable computation period (these hours will be calculated and credited
pursuant to Department of Labor regulation 2530.200b-2 which is incorporated
herein by reference); (3) each hour for which back pay is awarded or agreed to
by the Employer without regard to mitigation of damages (these hours will be
credited to the Employee for the computation period or periods to which the
award or agreement pertains rather than the computation period in which the
award, agreement or payment is made). The same Hours of Service shall not be
credited both under (1) or (2), as the case may be, and under (3).

                                       6

<PAGE>

         Notwithstanding (2) above, (i) no more than 501 Hours of Service are
required to be credited to an Employee on account of any single continuous
period during which the Employee performs no duties (whether or not such period
occurs in a single computation period); (ii) an hour for which an Employee is
directly or indirectly paid, or entitled to payment, on account of a period
during which no duties are performed is not required to be credited to the
Employee if such payment is made or due under a plan maintained solely for the
purpose of complying with applicable worker's compensation, or unemployment
compensation or disability insurance laws; and (iii) Hours of Service are not
required to be credited for a payment which solely reimburses an Employee for
medical or medically related expenses incurred by the Employee.

         For purposes of (2) above, a payment shall be deemed to be made by or
due from the Employer regardless of whether such payment is made by or due from
the Employer directly, or indirectly through, among others, a trust fund, or
insurer, to which the Employer contributes or pays premiums and regardless of
whether contributions made or due to the trust fund, insurer, or other entity
are for the benefit of particular Employees or are on behalf of a group of
Employees in the aggregate.

         For purposes of this Section, Hours of Service will be credited for
employment with other Affiliated Employers. The provisions of Department of
Labor regulations 2530.200b-2(b) and (c) are incorporated herein by reference.

         1.27 "Income" means the income or losses allocable to Excess Aggregate
Contributions which shall equal the allocable gain or loss for the Plan Year.
The income allocable to Excess Aggregate Contributions for the Plan Year is
determined by multiplying the income for the Plan Year by a fraction. The
numerator of the fraction is the Excess Aggregate Contributions for the Plan
Year. The denominator of the fraction is the total account balance attributable
to after-tax voluntary Employee contributions and Matching Employer
Contributions made pursuant to Section 4.7 and any qualified non-elective
contributions taken into account pursuant to Section 4.9(c) as of the end of the
Plan Year, reduced by the gain allocable to such total amount for the Plan Year
and increased by the loss allocable to such total amount for the Plan Year.

         1.28 "Investment Manager" means an entity that (a) has the power to
manage, acquire, or dispose of Plan assets and (b) acknowledges fiduciary
responsibility to the Plan in writing. Such entity must be a person, firm, or
corporation registered as an investment adviser under the Investment Advisers
Act of 1940, a bank, or an insurance company.

         1.29 "Key Employee" means an Employee as defined in Code Section 416(i)
and the Regulations thereunder. Generally, any Employee or former Employee (as
well as each of the Employee's or former Employee's Beneficiaries) is considered
a Key Employee if the Employee, at any time during the Plan Year that contains
the "Determination Date" or any of the preceding four (4) Plan Years, has been
included in one of the following categories:

                           (a) an officer of the Employer (as that term is
                  defined within the meaning of the Regulations under Code
                  Section 416) having annual "415 Compensation" greater than 50
                  percent of the amount in effect under Code Section
                  415(b)(1)(A) for any such Plan Year.

                                       7

<PAGE>

                           (b) one of the ten employees having annual "415
                  Compensation" from the Employer for a Plan Year greater than
                  the dollar limitation in effect under Code Section
                  415(c)(1)(A) for the calendar year in which such Plan Year
                  ends and owning (or considered as owning within the meaning of
                  Code Section 318) both more than one-half percent interest and
                  the largest interests in the Employer.

                           (c) a "five percent owner" of the Employer. "Five
                  percent owner" means any person who owns (or is considered as
                  owning within the meaning of Code Section 318) more than five
                  percent (5%) of the outstanding stock of the Employer or stock
                  possessing more than five percent (5%) of the total combined
                  voting power of all stock of the Employer or, in the case of
                  an unincorporated business, any person who owns more than five
                  percent (5%) of the capital or profits interest in the
                  Employer. In determining percentage ownership hereunder,
                  employers that would otherwise be aggregated under Code
                  Sections 414(b), (c), (m) and (o) shall be treated as separate
                  employers.

                           (d) a "one percent owner" of the Employer having an
                  annual "415 Compensation" from the Employer of more than
                  $150,000. "One percent owner" means any person who owns (or is
                  considered as owning within the meaning of Code Section 318)
                  more than one percent (1%) of the outstanding stock of the
                  Employer or stock possessing more than one percent (1%) of the
                  total combined voting power of all stock of the Employer or,
                  in the case of an unincorporated business, any person who owns
                  more than one percent (1%) of the capital or profits interest
                  in the Employer. In determining percentage ownership
                  hereunder, employers that would otherwise be aggregated under
                  Code Sections 414(b), (c), (m) and (o) shall be treated as
                  separate employers. However, in determining whether an
                  individual has "415 Compensation" of more than $150,000, "415
                  Compensation" from each employer required to be aggregated
                  under Code Sections 414(b), (c), (m) and (o) shall be taken
                  into account.

         For purposes of this Section, the determination of "415 Compensation"
shall be made by including amounts which are contributed by the Employer
pursuant to a salary reduction agreement and which are not includible in the
gross income of the Participant under Code Sections 125, 132(f)(4) for Plan
Years beginning after December 31, 2000, 402(e)(3), 402(h)(1)(B), 403(b) or
457(b), and Employee contributions described in Code Section 414(h)(2) that are
treated as Employer contributions.

         1.30 "Late Retirement Date" means a Participant's actual Retirement
Date after having reached Normal Retirement Date.

         1.31 "Leased Employee" means, for Plan Years beginning after December
31, 1996, any person (other than an Employee of the recipient Employer) who
pursuant to an agreement between the recipient Employer and any other person or
entity ("leasing organization") has performed services for the recipient (or for
the recipient and related persons determined in accordance with Code Section
414(n)(6)) on a substantially full time basis for a period of at least one year,
and such services are performed under primary direction or control by the
recipient Employer. Contributions or benefits provided a Leased Employee by the
leasing organization which are attributable to services performed for the
recipient Employer shall be treated as provided by the recipient Employer.
Furthermore, Compensation for a Leased Employee shall

                                       8

<PAGE>

only include Compensation from the leasing organization that is attributable to
services performed for the recipient Employer. A Leased Employee shall not be
considered an Employee of the recipient Employer:

                           (a) if such employee is covered by a money purchase
                  pension plan providing:

                           (1) a nonintegrated Employer contribution rate of at
                           least 10% of compensation, as defined in Code Section
                           415(c)(3), but for Plan Years beginning prior to
                           January 1, 1998, including amounts which are
                           contributed by the Employer pursuant to a salary
                           reduction agreement and which are not includible in
                           the gross income of the Participant under Code
                           Sections 125, 402(e)(3), 402(h)(1)(B), 403(b) or
                           457(b), and Employee contributions described in Code
                           Section 414(h)(2) that are treated as Employer
                           contributions, and for Plan Years beginning prior to
                           January 1, 2001, excluding amounts that are not
                           includible in gross income under Code Section
                           132(f)(4);

                           (2) immediate participation;

                           (3) full and immediate vesting; and

                           (b) if Leased Employees do not constitute more than
                  20% of the recipient Employer's nonhighly compensated work
                  force.

         1.31A "Matching Account" means the account established and maintained
by the Administrator for each Participant with respect to the Participant's
total interest in the Plan resulting from the Participant's Matching Employer
Contributions as described in Section 4.7(c).

         1.32 "Non-Highly Compensated Participant" means, for Plan Years
beginning after December 31, 1996, any Participant who is not a Highly
Compensated Employee and who is eligible to participate in the component of the
Plan being tested. However, for the purposes of Section 4.9(a), if the prior
year testing method is used, a Non Highly Compensated Participant shall be
determined using the definition of Highly Compensated Employee in effect for the
preceding Plan Year.

         1.33 "Non-Key Employee" means any Employee or former Employee (and such
Employee's or former Employee's Beneficiaries) who is not, and has never been a
Key Employee.

         1.34 "Normal Retirement Age" means the Participant's 65th birthday. A
Participant shall become fully Vested in the Participant's Account upon
attaining Normal Retirement Age.

         1.35 "Normal Retirement Date" means the Participant's Normal Retirement
Age.

         1.36 "1-Year Break in Service" means, for purposes of vesting, a Period
of Severance of at least 12 consecutive months.

                                       9

<PAGE>

         1.37 "1-Year Break in Service" means, for purposes of eligibility for
participation, the applicable computation period during which an Employee has
not completed more than 500 Hours of Service with the Employer. Further, solely
for the purpose of determining whether a Participant has incurred a 1-Year Break
in Service, Hours of Service shall be recognized for "authorized leaves of
absence" and "maternity and paternity leaves of absence." Years of Service and
1-Year Breaks in Service shall be measured on the same computation period.

         "Authorized leave of absence" means an unpaid, temporary cessation from
active employment with the Employer pursuant to an established nondiscriminatory
policy, whether occasioned by illness, military service, or any other reason.

         A "maternity or paternity leave of absence" means an absence from work
for any period by reason of the Employee's pregnancy, birth of the Employee's
child, placement of a child with the Employee in connection with the adoption of
such child, or any absence for the purpose of caring for such child for a period
immediately following such birth or placement. For this purpose, Hours of
Service shall be credited for the computation period in which the absence from
work begins, only if credit therefore is necessary to prevent the Employee from
incurring a 1-Year Break in Service, or, in any other case, in the immediately
following computation period. The Hours of Service credited for a "maternity or
paternity leave of absence" shall be those which would normally have been
credited but for such absence, or, in any case in which the Administrator is
unable to determine such hours normally credited, eight (8) Hours of Service per
day. The total Hours of Service required to be credited for a "maternity or
paternity leave of absence" shall not exceed the number of Hours of Service
needed to prevent the Employee from incurring a 1-Year Break in Service.

         1.38 "Participant" means any Eligible Employee who participates in the
Plan pursuant to Section 3.2 and who has not for any reason become ineligible to
participate further in the Plan.

         1.39 "Participant Direction Procedures" means such instructions,
guidelines or policies, the terms of which are incorporated herein, as shall be
established pursuant to Section 4.8 and observed by the Administrator and
applied and provided to Participants who have Participant's Directed Accounts.

         1.40 "Participant's Account" means the account established and
maintained by the Administrator for each Participant with respect to such
Participant's total interest in the Plan resulting from the Employer
contributions.

         1.41 "Participant's Directed Account" means that portion of a
Participant's interest in the Plan with respect to which the Participant has
directed the investment in accordance with the Participant Direction Procedure.

         1.42 "Participant's Transfer/Rollover Account" means, if applicable,
the account established and maintained by the Administrator for each Participant
with respect to the Participant's total interest in the Plan resulting from
amounts transferred to this Plan from a direct plan-to-plan transfer and/or with
respect to such Participant's interest in the Plan resulting from amounts
transferred from another qualified plan or "conduit" Individual Retirement
Account in accordance with Section 4.6.

                                       10

<PAGE>

         A separate accounting shall be maintained with respect to that portion
of the Participant's Transfer/Rollover Account attributable to transfers (within
the meaning of Code Section 414(l)) and "rollovers."

         1.43 "Period of Service" means the aggregate of all periods commencing
with the Employee's first day of employment or reemployment with the Employer or
Affiliated Employer and ending on the date a 1-Year Break in Service begins. The
first day of employment or reemployment is the first day the Employee performs
an Hour of Service. An Employee will also receive partial credit for any Period
of Severance of less than twelve (12) consecutive months. Fractional periods of
a year will be expressed in terms of days.

         1.44 "Period of Severance" means a continuous period of time during
which the Employee is not employed by the Employer. Such period begins on the
date the Employee retires, quits or is discharged, or if earlier, the twelve
(12) month anniversary of the date on which the Employee was otherwise first
absent from service.

         In the case of an individual who is absent from work for maternity or
paternity reasons, the twelve (12) consecutive month period beginning on the
first anniversary of the first day of such absence shall not constitute a 1-Year
Break in Service. For purposes of this paragraph, an absence from work for
maternity or paternity reasons means an absence (a) by reason of the pregnancy
of the individual, (b) by reason of the birth of a child of the individual, (c)
by reason of the placement of a child with the individual in connection with the
adoption of such child by such individual, or (d) for purposes of caring for
such child for a period beginning immediately following such birth or placement.

         1.45 "Plan" means this instrument, including all amendments thereto.

         1.46 "Plan Year" means the 12-month period commencing on December 31,
2000 or any subsequent December 31 and ending on the following December 30; the
period commencing on January 1, 2000 and ending on December 30, 2000; or for
periods before 2000, the calendar year.

         1.46A "Qualified Employer Securities" has the same meaning as defined
in the Act.

         1.47 "Regulation" means the Income Tax Regulations as promulgated by
the Secretary of the Treasury or a delegate of the Secretary of the Treasury,
and as amended from time to time.

         1.48 "Retired Participant" means a person who has been a Participant,
but who has become entitled to retirement benefits under the Plan.

         1.49 "Retirement Date" means the date as of which a Participant retires
for reasons other than Total and Permanent Disability, whether such retirement
occurs on a Participant's Normal Retirement Date or Late Retirement Date (see
Section 6.1).

         1.49A "Specified Minimum Employer Contribution" means an amount
contributed by the Employer to the Trust Fund as described in Section 4.3A of
the Plan.

         1.49B "Tax Year" means the fiscal year of the Employer, January 1st
through December 31st.

                                       11

<PAGE>

         1.50 "Terminated Participant" means a person who has been a
Participant, but whose employment has been terminated other than by death, Total
and Permanent Disability or retirement.

         1.51 "Top Heavy Plan" means a plan described in Section 8.2(a).

         1.52 "Top Heavy Plan Year" means a Plan Year during which the Plan is a
Top Heavy Plan.

         1.53 "Total and Permanent Disability" means a physical or mental
condition of a Participant resulting from bodily injury, disease, or mental
disorder which renders such Participant incapable of continuing usual and
customary employment with the Employer. The disability of a Participant shall be
determined by a licensed physician chosen by the Administrator or based on
medical evidence using uniform and non-discriminatory criteria as established by
the Plan Administrator. Notwithstanding the foregoing, eligibility for Social
Security disability benefits or for long term disability benefits under an
insured plan sponsored by the Employer shall be deemed conclusive proof of
disability. The determination shall be applied uniformly to all Participants.

         1.54 "Trustee" means the person or entity named as trustee herein or in
any separate trust forming a part of this Plan, and any successors.

         1.55 "Trust Fund" means the assets of the Plan and Trust as the same
shall exist from time to time.

         1.56 "Valuation Date" means, the Anniversary Date and may include any
other date or dates deemed necessary or appropriate by the Administrator for the
valuation of the Participants' accounts during the Plan Year, which, effective
October 1, 2002, includes any day that the Trustee, any transfer agent appointed
by the Trustee or the Employer or any stock exchange used by such agent, are
open for business.

         1.57 "Vested" means the nonforfeitable portion of any account
maintained on behalf of a Participant.

         1.58 "Voluntary Contribution Account" means the account established and
maintained by the Administrator for each Participant with respect to the
Participant's total interest in the Plan resulting from the Participant's
after-tax voluntary Employee contributions made pursuant to Section 4.7.

         1.59 "Year of Service" means the computation period of twelve (12)
consecutive months, herein set forth, during which an Employee has at least 1000
Hours of Service.

         For purposes of eligibility for participation, the computation periods
shall be measured from the date on which the Employee first performs an Hour of
Service and anniversaries thereof. The participation computation periods
beginning after a 1-Year Break in Service shall be measured from the date on
which an Employee again performs an Hour of Service and anniversaries thereof.

                                       12

<PAGE>

         Notwithstanding the foregoing, for any short Plan Year, the
determination of whether an Employee has completed a Year of Service shall be
made in accordance with Department of Labor regulation 2530.203-2(c).

         Years of Service with any Affiliated Employer shall be recognized.

                                   ARTICLE II
                                 ADMINISTRATION

2.1      POWERS AND RESPONSIBILITIES OF THE EMPLOYER

                           (a) In addition to the general powers and
                  responsibilities otherwise provided for in this Plan, the
                  Employer shall be empowered to appoint and remove the Trustee
                  and the Administrator from time to time as it deems necessary
                  for the proper administration of the Plan to ensure that the
                  Plan is being operated for the exclusive benefit of the
                  Participants and their Beneficiaries in accordance with the
                  terms of the Plan, the Code, and the Act. The Employer may
                  appoint counsel, specialists, advisers, agents (including any
                  nonfiduciary agent) and other persons as the Employer deems
                  necessary or desirable in connection with the exercise of its
                  fiduciary duties under this Plan. The Employer may compensate
                  such agents or advisers from the assets of the Plan as
                  fiduciary expenses (but not including any business (settlor)
                  expenses of the Employer), to the extent not paid by the
                  Employer.

                           (b) The Employer may, by written agreement or
                  designation, appoint at its option an Investment Manager
                  (qualified under the Investment Company Act of 1940 as
                  amended), investment adviser, or other agent to provide
                  direction to the Trustee with respect to any or all of the
                  Plan assets. Such appointment shall be given by the Employer
                  in writing in a form acceptable to the Trustee and shall
                  specifically identify the Plan assets with respect to which
                  the Investment Manager or other agent shall have authority to
                  direct the investment.

                           (c) The Employer shall establish a "funding policy
                  and method," i.e., it shall determine whether the Plan has a
                  short run need for liquidity (e.g., to pay benefits) or
                  whether liquidity is a long run goal and investment growth
                  (and stability of same) is a more current need, or shall
                  appoint a qualified person to do so. The Employer or its
                  delegate shall communicate such needs and goals to the
                  Trustee, who shall coordinate such Plan needs with its
                  investment policy. The communication of such a "funding policy
                  and method" shall not, however, constitute a directive to the
                  Trustee as to the investment of the Trust Funds. Such "funding
                  policy and method" shall be consistent with the objectives of
                  this Plan and with the requirements of Title I of the Act.

                           (d) The Employer shall periodically review the
                  performance of any Fiduciary or other person to whom duties
                  have been delegated or allocated by it under the provisions of
                  this Plan or pursuant to procedures established hereunder.
                  This requirement may be satisfied by formal periodic review by
                  the Employer or by a qualified person specifically designated
                  by the Employer, through day-to-day conduct and evaluation, or
                  through other appropriate ways.

                                       13

<PAGE>

2.2      DESIGNATION OF ADMINISTRATIVE AUTHORITY

         The Employer shall appoint one or more Administrators. Any person,
including, but not limited to, the Employees of the Employer, shall be eligible
to serve as an Administrator. Any person so appointed shall signify acceptance
by filing written acceptance with the Employer. An Administrator may resign by
delivering a written resignation to the Employer or be removed by the Employer
by delivery of written notice of removal, to take effect at a date specified
therein, or upon delivery to the Administrator if no date is specified.

         The Employer, upon the resignation or removal of an Administrator,
shall promptly designate a successor to this position. If the Employer does not
appoint an Administrator, the Employer will function as the Administrator.

2.3      ALLOCATION AND DELEGATION OF RESPONSIBILITIES

         If more than one person is appointed as Administrator, the
responsibilities of each Administrator may be specified by the Employer and
accepted in writing by each Administrator. In the event that no such delegation
is made by the Employer, the Administrators may allocate the responsibilities
among themselves, in which event the Administrators shall notify the Employer
and the Trustee in writing of such action and specify the responsibilities of
each Administrator. The Trustee thereafter shall accept and rely upon any
documents executed by the appropriate Administrator until such time as the
Employer or the Administrators file with the Trustee a written revocation of
such designation.

2.4      POWERS AND DUTIES OF THE ADMINISTRATOR

         The primary responsibility of the Administrator is to administer the
Plan for the exclusive benefit of the Participants and their Beneficiaries,
subject to the specific terms of the Plan. The Administrator shall administer
the Plan in accordance with its terms and shall have the power and discretion to
construe the terms of the Plan and to determine all questions arising in
connection with the administration, interpretation, and application of the Plan.
Any such determination by the Administrator shall be conclusive and binding upon
all persons. The Administrator may establish procedures, correct any defect,
supply any information, or reconcile any inconsistency in such manner and to
such extent as shall be deemed necessary or advisable to carry out the purpose
of the Plan; provided, however, that any procedure, discretionary act,
interpretation or construction shall be done in a nondiscriminatory manner based
upon uniform principles consistently applied and shall be consistent with the
intent that the Plan shall continue to be deemed a qualified plan under the
terms of Code Section 401(a), and shall comply with the terms of the Act and all
regulations issued pursuant thereto. The Administrator shall have all powers
necessary or appropriate to accomplish the Administrator's duties under the
Plan.

         The Administrator shall be charged with the duties of the general
administration of the Plan as set forth under the terms of the Plan, including,
but not limited to, the following:

                  (a) the discretion to determine all questions relating to the
         eligibility of Employees to participate or remain a Participant
         hereunder and to receive benefits under the Plan;

                                       14

<PAGE>

                  (b) to compute, certify, and direct the Trustee with respect
         to the amount and the kind of benefits to which any Participant shall
         be entitled hereunder;

                  (c) to authorize and direct the Trustee with respect to all
         discretionary or otherwise directed disbursements from the Trust;

                  (d) to maintain all necessary records for the administration
         of the Plan;

                  (e) to interpret the provisions of the Plan and to make and
         publish such rules for regulation of the Plan as are consistent with
         the terms hereof;

                  (f) to determine the size and type of any Contract to be
         purchased from any insurer, and to designate the insurer from which
         such Contract shall be purchased;

                  (g) to compute and certify to the Employer and to the Trustee
         from time to time the sums of money necessary or desirable to be
         contributed to the Plan;

                  (h) to consult with the Employer and the Trustee regarding the
         short and long-term liquidity needs of the Plan in order that the
         Trustee can exercise any investment discretion in a manner designed to
         accomplish specific objectives;

                  (i) to act as the named Fiduciary responsible for
         communications with Participants as needed to maintain Plan compliance
         with Act Section 404(c), including, but not limited to, the receipt and
         transmitting of Participant's directions as to the investment of their
         account(s) under the Plan and the formulation of policies, rules, and
         procedures pursuant to which Participants may give investment
         instructions with respect to the investment of their accounts;

                  (j) to determine the validity of, and take appropriate action
         with respect to, any qualified domestic relations order received by it;
         and

                  (k) to assist any Participant regarding the Participant's
         rights, benefits, or elections available under the Plan.

2.5      RECORDS AND REPORTS

         The Administrator shall keep a record of all actions taken and shall
keep all other books of account, records, policies, and other data that may be
necessary for proper administration of the Plan and shall be responsible for
supplying all information and reports to the Internal Revenue Service,
Department of Labor, Participants, Beneficiaries and others as required by law.

2.6      APPOINTMENT OF ADVISERS

         The Administrator, or the Trustee with the consent of the
Administrator, may appoint counsel, specialists, advisers, agents (including
nonfiduciary agents) and other persons as

                                       15

<PAGE>

the Administrator or the Trustee deems necessary or desirable in connection with
the administration of this Plan, including but not limited to agents and
advisers to assist with the administration and management of the Plan, and
thereby to provide, among such other duties as the Administrator may appoint,
assistance with maintaining Plan records and the providing of investment
information to the Plan's investment fiduciaries and to Plan Participants.

2.7      INFORMATION FROM EMPLOYER

         The Employer shall supply full and timely information to the
Administrator on all pertinent facts as the Administrator may require in order
to perform its function hereunder and the Administrator shall advise the Trustee
of such of the foregoing facts as may be pertinent to the Trustee's duties under
the Plan. The Administrator may rely upon such information as is supplied by the
Employer and shall have no duty or responsibility to verify such information.

2.8      PAYMENT OF EXPENSES

         All expenses of administration may be paid out of the Trust Fund unless
paid by the Employer. Such expenses shall include any expenses incident to the
functioning of the Administrator, or any person or persons retained or appointed
by any Named Fiduciary incident to the exercise of their duties under the Plan,
including, but not limited to, fees of accountants, counsel, Investment
Managers, agents (including nonfiduciary agents) appointed for the purpose of
assisting the Administrator or the Trustee in carrying out the instructions of
Participants as to the directed investment of their accounts and other
specialists and their agents, the costs of any bonds required pursuant to Act
Section 412, and other costs of administering the Plan. Until paid, the expenses
shall constitute a liability of the Trust Fund.

2.9      MAJORITY ACTIONS

         Except where there has been an allocation and delegation of
administrative authority pursuant to Section 2.3, if there is more than one
Administrator, then they shall act by a majority of their number, but may
authorize one or more of them to sign all papers on their behalf.

2.10     CLAIMS PROCEDURE

         Claims for benefits under the Plan may be filed in writing with the
Administrator. Written notice of the disposition of a claim shall be furnished
to the claimant within ninety (90) days after the application is filed, or such
period as is required by applicable law or Department of Labor regulation. In
the event the claim is denied, the reasons for the denial shall be specifically
set forth in the notice in language calculated to be understood by the claimant,
pertinent provisions of the Plan shall be cited, and, where appropriate, an
explanation as to how the claimant can perfect the claim will be provided. In
addition, the claimant shall be furnished with an explanation of the Plan's
claims review procedure.

2.11     CLAIMS REVIEW PROCEDURE

         Any Employee, former Employee, or Beneficiary of either, who has been
denied a benefit by a decision of the Administrator pursuant to Section 2.10
shall be entitled to request the Administrator to give further consideration to
a claim by filing with the Administrator a written request for a hearing. Such
request, together with a written statement of the reasons why the

                                       16

<PAGE>

claimant believes the claim should be allowed, shall be filed with the
Administrator no later than sixty (60) days after receipt of the written
notification provided for in Section 2.10. The Administrator shall then conduct
a hearing within the next sixty (60) days, at which the claimant may be
represented by an attorney or any other representative of such claimant's
choosing and expense and at which the claimant shall have an opportunity to
submit written and oral evidence and arguments in support of the claim. At the
hearing (or prior thereto upon five (5) business days written notice to the
Administrator) the claimant or the claimant's representative shall have an
opportunity to review all documents in the possession of the Administrator which
are pertinent to the claim at issue and its disallowance. Either the claimant or
the Administrator may cause a court reporter to attend the hearing and record
the proceedings. In such event, a complete written transcript of the proceedings
shall be furnished to both parties by the court reporter. The full expense of
any such court reporter and such transcripts shall be borne by the party causing
the court reporter to attend the hearing. A final decision as to the allowance
of the claim shall be made by the Administrator within sixty (60) days of
receipt of the appeal (unless there has been an extension of sixty (60) days due
to special circumstances, provided the delay and the special circumstances
occasioning it are communicated to the claimant within the sixty (60) day
period). Such communication shall be written in a manner calculated to be
understood by the claimant and shall include specific reasons for the decision
and specific references to the pertinent Plan provisions on which the decision
is based.

                                   ARTICLE III
                                   ELIGIBILITY

3.1      CONDITIONS OF ELIGIBILITY

         Any Eligible Employee who has completed one (1) Year of Service shall
be eligible to participate hereunder as of the date such Employee has satisfied
such requirements. However, any Employee who was a Participant in the Plan prior
to the effective date of this amendment and restatement shall continue to
participate in the Plan.

3.2      EFFECTIVE DATE OF PARTICIPATION

         An Eligible Employee shall become a Participant effective as of the
first day of the calendar quarter coinciding with or next following the date
such Employee met the eligibility requirements of Section 3.1, provided said
Employee was still employed as of such date (or if not employed on such date, as
of the date of rehire or, if later, the date that the Employee would have
otherwise entered the Plan had the Employee not terminated employment).

         If an Employee, who has satisfied the Plan's eligibility requirements
and would otherwise have become a Participant, shall go from a classification of
a noneligible Employee to an Eligible Employee, such Employee shall become a
Participant on the date such Employee becomes an Eligible Employee or, if later,
the date that the Employee would have otherwise entered the Plan had the
Employee always been an Eligible Employee.

         If an Employee, who has satisfied the Plan's eligibility requirements
and would otherwise become a Participant, shall go from a classification of an
Eligible Employee to a noneligible class of Employees, such Employee shall
become a Participant in the Plan on the date such Employee again becomes an
Eligible Employee, or, if later, the date that the Employee would have otherwise
entered the Plan had the Employee always been an Eligible Employee.

                                       17

<PAGE>

3.3      DETERMINATION OF ELIGIBILITY

         The Administrator shall determine the eligibility of each Employee for
participation in the Plan based upon information furnished by the Employer. Such
determination shall be conclusive and binding upon all persons, as long as the
same is made pursuant to the Plan and the Act. Such determination shall be
subject to review pursuant to Section 2.11.

3.4      TERMINATION OF ELIGIBILITY

         In the event a Participant shall go from a classification of an
Eligible Employee to an ineligible Employee, such Former Participant shall
continue to vest in the Plan for each Period of Service completed while a
noneligible Employee, until such time as the Participant's Account is forfeited
or distributed pursuant to the terms of the Plan. Additionally, the Former
Participant's interest in the Plan shall continue to share in the earnings of
the Trust Fund.

3.5      OMISSION OF ELIGIBLE EMPLOYEE

         If, in any Plan Year, any Employee who should be included as a
Participant in the Plan is erroneously omitted and discovery of such omission is
not made until after a contribution by the Employer for the year has been made
and allocated, then the Employer shall make a subsequent contribution, if
necessary after the application of Section 4.3(c), so that the omitted Employee
receives a total amount which the Employee would have received (including both
Employer contributions and earnings thereon) had the Employee not been omitted.
Such contribution shall be made regardless of whether it is deductible in whole
or in part in any taxable year under applicable provisions of the Code.

3.6      INCLUSION OF INELIGIBLE EMPLOYEE

         If, in any Plan Year, any person who should not have been included as a
Participant in the Plan is erroneously included and discovery of such inclusion
is not made until after a contribution for the year has been made and allocated,
the Employer shall be entitled to recover the contribution made with respect to
the ineligible person provided the error is discovered within twelve (12) months
of the date on which it was made. Otherwise, the amount contributed with respect
to the ineligible person shall constitute a Forfeiture for the Plan Year in
which the discovery is made.

3.7      REHIRED EMPLOYEES AND BREAKS IN SERVICE

                           (a) If any Participant becomes a Former Participant
                  due to severance from employment with the Employer and is
                  reemployed by the Employer, the Former Participant shall
                  become a Participant as of the reemployment date.

                           (b) If any Participant becomes a Former Participant
                  due to severance of employment with the Employer and is
                  reemployed by the Employer before five (5) consecutive 1-Year
                  Breaks in Service, and such Former Participant had received a
                  distribution of the entire Vested interest prior to
                  reemployment, then the forfeited account shall be reinstated
                  only if the Former Participant repays the full amount which
                  had been distributed. Such repayment must be made before the

                                       18

<PAGE>

                  earlier of five (5) years after the first date on which the
                  Participant is subsequently reemployed by the Employer or the
                  close of the first period of five (5) consecutive 1-Year
                  Breaks in Service commencing after the distribution. If a
                  distribution occurs for any reason other than a severance of
                  employment, the time for repayment may not end earlier than
                  five (5) years after the date of distribution. In the event
                  the Former Participant does repay the full amount distributed,
                  the undistributed forfeited portion of the Participant's
                  Account must be restored in full, unadjusted by any gains or
                  losses occurring subsequent to the Valuation Date preceding
                  the distribution. The source for such reinstatement may be
                  Forfeitures occurring during the Plan Year. If such source is
                  insufficient, then the Employer will contribute an amount
                  which is sufficient to restore any such forfeited
                  Participant's Accounts provided, however, that if a
                  discretionary contribution is made for such year, such
                  contribution shall first be applied to restore any such
                  Participant's Accounts and the remainder shall be allocated in
                  accordance with Sections 4.3, 4.3A or 4.7, as applicable.

                                   ARTICLE IV
              CONTRIBUTIONS, ALLOCATIONS AND INVESTMENT PROVISIONS

4.1      FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION

                           (a) For each Plan Year, the Employer shall contribute
                  to the Plan such amount as shall be determined by the Employer
                  including any Matching Employer Contributions made pursuant to
                  Section 4.7 and any other discretionary contributions as
                  described under Section 4.3A.

                           (b) The Employer contribution shall not be limited to
                  years in which the Employer has current or accumulated net
                  profit. Additionally, to the extent necessary, the Employer
                  shall contribute to the Plan the amount necessary to provide
                  the top heavy minimum contribution. All contributions shall be
                  made in cash or in such property as is acceptable to the
                  Trustee.

4.2      TIME OF PAYMENT OF EMPLOYER CONTRIBUTION

         The Employer may make its contribution to the Plan for a particular
Plan Year at such time as the Employer, in its sole discretion, determines. If
the Employer makes a contribution for a particular Plan Year after the close of
that Plan Year, the Employer will designate to the Trustee the Plan Year for
which the Employer is making its contribution.

4.3      ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS

                           (a) The Administrator shall establish and maintain an
                  account in the name of each Participant to which the
                  Administrator shall credit as of each Anniversary Date, or
                  other Valuation Date, all amounts allocated to each such
                  Participant as set forth herein.

                           (b) The Employer shall provide the Administrator with
                  all information required by the Administrator to make a proper
                  allocation of the Employer

                                       19

<PAGE>

                  contribution for each Plan Year. Within a reasonable period of
                  time after the date of receipt by the Administrator of such
                  information, the Administrator shall allocate such
                  contribution to each applicable Participant's Account in the
                  manner described in Section 4.3A or Section 4.7.

                           (c) On or before each Anniversary Date any amounts
                  which became Forfeitures since the last Anniversary Date may
                  be made available to reinstate previously forfeited account
                  balances of Former Participants, if any, in accordance with
                  Section 3.7(d), be used to satisfy any contribution that may
                  be required pursuant to Section 3.5 and/or 6.9. The remaining
                  Forfeitures, if any, shall be used to reduce the contribution
                  of the Employer hereunder for the Plan Year in which such
                  Forfeitures occur.

                           (d) Participants shall be eligible to share in the
                  allocation of contributions for a Plan Year in accordance with
                  the following:

                           (1) Any applicable Participant, pursuant to Section
                           4.3A or 4.7, who is actively employed during the Plan
                           Year shall be eligible to share in the allocation of
                           contributions for that Plan Year.

                           (2) For any Top Heavy Plan Year, Employees not
                           otherwise eligible to share in the allocation of
                           contributions as provided above, shall receive the
                           minimum allocation provided for in Section 4.3(f) if
                           eligible pursuant to the provisions of Section
                           4.3(h).

                           (e) As of each Valuation Date, any earnings or losses
                  (net appreciation or net depreciation) of the Trust Fund shall
                  be allocated in the same proportion that each Participant's
                  and Former Participant's nonsegregated accounts bear to the
                  total of all Participants' and Former Participants'
                  nonsegregated accounts as of such date. Earnings or losses
                  with respect to a Participant's Directed Account shall be
                  allocated in accordance with Section 4.8.

                           Participants' transfers from other qualified plans
                  and after-tax voluntary Employee contributions deposited in
                  the general Trust Fund shall share in any earnings and losses
                  (net appreciation or net depreciation) of the Trust Fund in
                  the same manner provided above. Each segregated account
                  maintained on behalf of a Participant shall be credited or
                  charged with its separate earnings and losses.

                           (f) Minimum Allocations Required for Top Heavy Plan
                  Years: Notwithstanding the foregoing, for any Top Heavy Plan
                  Year, the sum of the Employer contributions allocated to the
                  Participant's Account of each Employee shall be equal to at
                  least three percent (3%) of such Employee's "415 Compensation"
                  (reduced by contributions and forfeitures, if any, allocated
                  to each Employee in any defined contribution plan included
                  with this Plan in a Required Aggregation Group). However, if
                  (1) the sum of the Employer contributions allocated to the
                  Participant's Account of each Key Employee for such Top Heavy
                  Plan Year is less than three percent (3%) of each Key
                  Employee's "415 Compensation" and (2) this Plan is not
                  required to be included in an Aggregation

                                       20

<PAGE>

                  Group to enable a defined benefit plan to meet the
                  requirements of Code Section 401(a)(4) or 410, the sum of the
                  Employer contributions allocated to the Participant's Account
                  of each Employee shall be equal to the largest percentage
                  allocated to the Participant's Account of any Key Employee.

                           (g) For purposes of the minimum allocations set forth
                  above, the percentage allocated to the Participant's Account
                  of any Key Employee shall be equal to the ratio of the sum of
                  the Employer contributions allocated on behalf of such Key
                  Employee divided by the "415 Compensation" for such Key
                  Employee.

                           (h) For any Top Heavy Plan Year, the minimum
                  allocations set forth above shall be allocated to the
                  Participant's Account of all Employees who are Participants
                  and who are employed by the Employer on the last day of the
                  Plan Year, including Employees who have (1) failed to complete
                  a Year of Service; (2) declined to make mandatory
                  contributions (if required) to the Plan; and (3) been excluded
                  from participation because of their level of Compensation.

                           (i) In lieu of the above, in any Plan Year in which
                  an Employee is a Participant in both this Plan and a defined
                  benefit pension plan included in a Required Aggregation Group
                  which is top heavy, the Employer shall not be required to
                  provide such Employee with both the full separate defined
                  benefit plan minimum benefit and the full separate defined
                  contribution plan minimum allocation.

                           Therefore, for any Plan Year when the Plan is a Top
                  Heavy Plan, an Employee who is participating in this Plan and
                  a defined benefit plan maintained by the Employer shall
                  receive a minimum monthly accrued benefit in the defined
                  benefit plan equal to the product of (1) one-twelfth (1/12th)
                  of "415 Compensation" averaged over the five (5) consecutive
                  "limitation years" (or actual "limitation years," if less)
                  which produce the highest average and (2) the lesser of (i)
                  two percent (2%) multiplied by years of service when the plan
                  is top heavy or (ii) twenty percent (20%).

                           (j) Notwithstanding the foregoing, for Plan Years
                  beginning prior to January 1, 2000, the minimum benefit
                  requirement for a Top Heavy Plan shall be determined in the
                  following manner:

                           (1) Each Employee who is a Participant during a Top
                           Heavy Plan Year shall be provided the minimum
                           allocation pursuant to Section 4.3(f).

                           (2) In lieu of the above, in any Plan Year in which
                           an Employee is a Participant in both this Plan and a
                           defined benefit pension plan included in a Required
                           Aggregation Group which is top heavy, the Employer
                           shall not be required to provide such Employee with
                           both the full separate defined benefit plan minimum
                           benefit and the full separate defined contribution
                           plan minimum allocation.

                           Therefore, for any Plan Year when the Plan is a Top
                           Heavy Plan, an Employee who is participating in this
                           Plan and a defined benefit plan

                                       21

<PAGE>

                           maintained by the Employer shall receive a minimum
                           monthly accrued benefit in the defined benefit plan
                           equal to the product of (1) one-twelfth (1/12th) of
                           "415 Compensation" averaged over the five (5)
                           consecutive "limitation years" (or actual "limitation
                           years," if less) which produce the highest average
                           and (2) the lesser of (i) two percent (2%) multiplied
                           by years of service when the plan is top heavy or
                           (ii) twenty percent (20%).

                           (k) For the purposes of this Section, "415
                  Compensation" in excess of $150,000 (or such other amount
                  provided in the Code) shall be disregarded. Such amount shall
                  be adjusted for increases in the cost of living in accordance
                  with Code Section 401(a)(17)(B), except that the dollar
                  increase in effect on January 1 of any calendar year shall be
                  effective for the Plan Year beginning with or within such
                  calendar year. If "415 Compensation" for any prior
                  determination period is taken into account in determining a
                  Participant's minimum benefit for the current Plan Year, the
                  "415 Compensation" for such determination period is subject to
                  the applicable annual "415 Compensation" limit in effect for
                  that prior period. For this purpose, in determining the
                  minimum benefit in Plan Years beginning on or after January 1,
                  1989, the annual "415 Compensation" limit in effect for
                  determination periods beginning before that date is $200,000
                  (or such other amount as adjusted for increases in the cost of
                  living in accordance with Code Section 415(d) for
                  determination periods beginning on or after January 1, 1989,
                  and in accordance with Code Section 401(a)(17)(B) for
                  determination periods beginning on or after January 1, 1994).
                  For determination periods beginning prior to January 1, 1989,
                  the $200,000 limit shall apply only for Top Heavy Plan Years
                  and shall not be adjusted. For any short Plan Year the "415
                  Compensation" limit shall be an amount equal to the "415
                  Compensation" limit for the calendar year in which the Plan
                  Year begins multiplied by the ratio obtained by dividing the
                  number of full months in the short Plan Year by twelve (12).

                           (l) Notwithstanding anything in this Section to the
                  contrary, all information necessary to properly reflect a
                  given transaction may not be available until after the date
                  specified herein for processing such transaction, in which
                  case the transaction will be reflected when such information
                  is received and processed. Subject to express limits that may
                  be imposed under the Code, the processing of any contribution,
                  distribution or other transaction may be delayed for any
                  legitimate business reason (including, but not limited to,
                  failure of systems or computer programs, failure of the means
                  of the transmission of data, force majeure, the failure of a
                  service provider to timely receive values or prices, and the
                  correction for errors or omissions or the errors or omissions
                  of any service provider). The processing date of a transaction
                  will be binding for all purposes of the Plan.

                           (m) Notwithstanding anything to the contrary, if this
                  is a Plan that would otherwise fail to meet the requirements
                  of Code Section 410(b)(1) and the Regulations thereunder
                  because Employer contributions would not be allocated to a
                  sufficient number or percentage of Participants for a Plan
                  Year, then the following rules shall apply:

                                       22

<PAGE>

                           (1) The group of Participants eligible to share in
                           the Employer's contribution for the Plan Year shall
                           be expanded to include the minimum number of
                           Participants who would not otherwise be eligible as
                           are necessary to satisfy the applicable test
                           specified above. The specific Participants who shall
                           become eligible under the terms of this paragraph
                           shall be those who have not separated from service
                           prior to the last day of the Plan Year and have
                           completed the greatest number of Hours of Service in
                           the Plan Year.

                           (2) If after application of paragraph (1) above, the
                           applicable test is still not satisfied, then the
                           group of Participants eligible to share in the
                           Employer's contribution for the Plan Year shall be
                           further expanded to include the minimum number of
                           Participants who have separated from service prior to
                           the last day of the Plan Year as are necessary to
                           satisfy the applicable test. The specific
                           Participants who shall become eligible to share shall
                           be those Participants who have completed the greatest
                           number of Hours of Service in the Plan Year before
                           terminating employment.

                           (3) Nothing in this Section shall permit the
                           reduction of a Participant's accrued benefit.
                           Therefore any amounts that have previously been
                           allocated to Participants may not be reallocated to
                           satisfy these requirements. In such event, the
                           Employer shall make an additional contribution equal
                           to the amount such affected Participants would have
                           received had they been included in the allocations,
                           even if it exceeds the amount which would be
                           deductible under Code Section 404. Any adjustment to
                           the allocations pursuant to this paragraph shall be
                           considered a retroactive amendment adopted by the
                           last day of the Plan Year.

4.3A     SPECIFIED MINIMUM EMPLOYER CONTRIBUTIONS

         Notwithstanding any provision of the Plan to the contrary, the
following provisions shall govern the treatment of Specified Minimum Employer
Contributions:

                           (a) Frequency and Eligibility. For each Plan Year,
                  the Employer shall make a discretionary Specified Minimum
                  Employer Contribution on behalf of the group of Employees who
                  are both Employees and Plan Participants from the first day
                  through the last day of the Applicable Tax Year ("First Day
                  Participants"). The Specified Minimum Employer Contribution
                  will be based on Compensation earned by the First Day
                  Participants in the Applicable Tax Year. The Specified Minimum
                  Employer Contribution for each Plan Year shall be in an amount
                  determined by the Board of Managers by appropriate resolution
                  on or before the last day of the Applicable Tax Year.

                           (b) Allocation Method. Each First Day Participant's
                  share shall be determined as follows:

                           (i) The Specified Minimum Employer Contribution shall
                           be allocated during the Plan Year [December 31st
                           (last day of the Applicable Tax Year) through
                           December 30th] as Matching

                                       23

<PAGE>

                  Employer Contributions described in Section 4.7 of the Plan,
                  to the account of each First Day Participant. Such Matching
                  Employer Contributions shall be made without regard to any
                  last-day requirement, or any other Year of Service or
                  hour-of-service requirement.

                  (ii) Second, if any of the Specified Minimum Employer
                  Contribution remains after the allocation in paragraph(b)(i),
                  above, the remainder shall, to the extent allowable under
                  Section 415 of the Internal Revenue Code, be allocated as
                  described in Section 4.7, as an additional Matching Employer
                  Contribution on the last day of the Plan Year to each First
                  Day Participant's Matching Account, as defined in Section 4.7,
                  in the ratio that each such First Day Participant's Employee
                  contributions during the Plan Year bears to the Employee
                  contributions of all First Day Participants during the Plan
                  Year.

                  The Specified Minimum Employer Contributions allocated as an
                  additional Matching Employer Contribution shall be treated in
                  the same manner as Matching Employer Contributions for all
                  purposes of the Plan.

                  (iii) Third, any balance of the Specified Minimum Employer
                  Contribution remaining unallocated after the allocation in
                  paragraph (b)(ii) above, shall be allocated to each First Day
                  Participant in the ratio that the First Day Participant's
                  Compensation during the Plan Year bears to the total
                  Compensation of all First Day Participants during the Plan
                  Year.

                  (iv) Fourth, any balance of the Specified Minimum Employer
                  Contribution remaining unallocated after the allocation in
                  paragraph (b)(iii) above, shall be allocated to each
                  Participant in the ratio that such Participant's Compensation
                  during the Plan Year bears to the total Compensation of all
                  such Participants during the Plan Year.

                  (v) The Administrator shall reduce the proportionate
                  allocation under paragraphs(b)(i), (ii), (iii) and (iv) above,
                  to Participants who are Highly Compensated Employees to the
                  extent necessary to comply with the provisions of Section
                  401(a)(4) of the Internal Revenue Code and the regulations
                  thereunder. Any such amount will be allocated and reallocated
                  to the remaining Participants to the extent allowed under
                  Section 415 of the Internal Revenue Code.

                  Notwithstanding any other provision of the Plan to the
                  contrary, any allocation of Matching Employer Contributions to
                  a First Day Participant's Matching Account shall be made under
                  either Section 4.7 or this Section, as appropriate, but not
                  both Sections.

                                       24

<PAGE>

                  (c) Timing, Medium and Posting. The Employer shall make the
                  Specified Minimum Employer Contribution in cash, in one or
                  more installments without interest, at any time during the
                  Plan Year, and for purposes of deducting such contribution,
                  not later than the Employer's federal tax filing date,
                  including extensions, for its Tax Year that ends within such
                  Plan Year. The Trustee shall post such amount to each First
                  Day Participant's Matching Account once the allocations under
                  (i) through (v) above are determined.

                  The Specified Minimum Employer Contribution shall be held in a
                  suspense account until posted. Such suspense account shall not
                  participate in the allocation of investment gains, losses,
                  income and deductions of the trust as a whole, but shall be
                  invested separately. All gains, losses, income and deductions
                  attributable to such suspense account shall be applied to
                  reduce Plan fees and expenses. In no event will amounts remain
                  in the suspense account after the end of the Plan Year.

                  (d) Deduction Limitation. In no event shall the Specified
                  Minimum Employer Contribution, when aggregated with other
                  Employer and Participant contributions for the Employer's Tax
                  Year that ends within such Plan Year, exceed the amount
                  deductible by the Employer for federal income tax purposes for
                  such Tax Year.

4.4      MAXIMUM ANNUAL ADDITIONS

                           (a) Notwithstanding the foregoing, for "limitation
                  years" beginning after December 31, 1994, the maximum "annual
                  additions" credited to a Participant's accounts for any
                  "limitation year" shall equal the lesser of: (1) $30,000
                  adjusted annually as provided in Code Section 415(d) pursuant
                  to the Regulations, or (2) twenty-five percent (25%) of the
                  Participant's "415 Compensation" for such "limitation year."
                  If the Employer contribution that would otherwise be
                  contributed or allocated to the Participant's accounts would
                  cause the "annual additions" for the "limitation year" to
                  exceed the maximum "annual additions," the amount contributed
                  or allocated will be reduced so that the "annual additions"
                  for the "limitation year" will equal the maximum "annual
                  additions," and any amount in excess of the maximum "annual
                  additions," which would have been allocated to such
                  Participant may be allocated to other Participants. For any
                  short "limitation year," the dollar limitation in (1) above
                  shall be reduced by a fraction, the numerator of which is the
                  number of full months in the short "limitation year" and the
                  denominator of which is twelve (12).

                           (b) For purposes of applying the limitations of Code
                  Section 415, "annual additions" means the sum credited to a
                  Participant's accounts for any "limitation year" of (1)
                  Employer contributions, (2) Employee contributions, (3)
                  forfeitures, (4) 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 and (5) 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 plan (as defined in Code

                                       25

<PAGE>

                  Section 419(e)) maintained by the Employer. Except, however,
                  the "415 Compensation" percentage limitation referred to in
                  paragraph (a)(2) above shall not apply to: (1) any
                  contribution for medical benefits (within the meaning of Code
                  Section 419A(f)(2)) after separation from service which is
                  otherwise treated as an "annual addition," or (2) any amount
                  otherwise treated as an "annual addition" under Code Section
                  415(l)(1).

                           (c) For purposes of applying the limitations of Code
                  Section 415, the transfer of funds from one qualified plan to
                  another is not an "annual addition." In addition, the
                  following are not Employee contributions for the purposes of
                  Section 4.4(b)(2): (1) rollover contributions (as defined in
                  Code Sections 402(e)(6), 403(a)(4), 403(b)(8) and 408(d)(3));
                  (2) repayments of loans made to a Participant from the Plan;
                  (3) repayments of distributions received by an Employee
                  pursuant to Code Section 411(a)(7)(B) (cash-outs); (4)
                  repayments of distributions received by an Employee pursuant
                  to Code Section 411(a)(3)(D) (mandatory contributions); and
                  (5) Employee contributions to a simplified employee pension
                  excludable from gross income under Code Section 408(k)(6).

                           (d) For purposes of applying the limitations of Code
                  Section 415, the "limitation year" shall be the calendar year.

                           (e) For the purpose of this Section, all qualified
                  defined benefit plans (whether terminated or not) ever
                  maintained by the Employer shall be treated as one defined
                  benefit plan, and all qualified defined contribution plans
                  (whether terminated or not) ever maintained by the Employer
                  shall be treated as one defined contribution plan.

                           (f) For the purpose of this Section, if the Employer
                  is a member of a controlled group of corporations, trades or
                  businesses under common control (as defined by Code Section
                  1563(a) or Code Section 414(b) and (c) as modified by Code
                  Section 415(h)), is a member of an affiliated service group
                  (as defined by Code Section 414(m)), or is a member of a group
                  of entities required to be aggregated pursuant to Regulations
                  under Code Section 414(o), all Employees of such Employers
                  shall be considered to be employed by a single Employer.

                           (g) For the purpose of this Section, if this Plan is
                  a Code Section 413(c) plan, each Employer who maintains this
                  Plan will be considered to be a separate Employer.

                           (h)(1) If a Participant participates in more than one
                  defined contribution plan maintained by the Employer which
                  have different Anniversary Dates, the maximum "annual
                  additions" under this Plan shall equal the maximum "annual
                  additions" for the "limitation year" minus any "annual
                  additions" previously credited to such Participant's accounts
                  during the "limitation year."

                           (2) If a Participant participates in both a defined
                           contribution plan subject to Code Section 412 and a
                           defined contribution plan not subject to Code Section
                           412 maintained by the Employer which have the same

                                       26

<PAGE>

                           Anniversary Date, "annual additions" will be credited
                           to the Participant's accounts under the defined
                           contribution plan subject to Code Section 412 prior
                           to crediting "annual additions" to the Participant's
                           accounts under the defined contribution plan not
                           subject to Code Section 412.

                           (3) If a Participant participates in more than one
                           defined contribution plan not subject to Code Section
                           412 maintained by the Employer which have the same
                           Anniversary Date, the maximum "annual additions"
                           under this Plan shall equal the product of (A) the
                           maximum "annual additions" for the "limitation year"
                           minus any "annual additions" previously credited
                           under subparagraphs (1) or (2) above, multiplied by
                           (B) a fraction (i) the numerator of which is the
                           "annual additions" which would be credited to such
                           Participant's accounts under this Plan without regard
                           to the limitations of Code Section 415 and (ii) the
                           denominator of which is such "annual additions" for
                           all plans described in this subparagraph.

                           (i) If an Employee is (or has been) a Participant in
                  one or more defined benefit plans and one or more defined
                  contribution plans maintained by the Employer, the sum of the
                  defined benefit plan fraction and the defined contribution
                  plan fraction for any "limitation year" may not exceed 1.0.

                           (j) The defined benefit plan fraction for any
                  "limitation year" is 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.

                           (k) The defined contribution plan fraction for any
                  "limitation year" is 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

                                       27

<PAGE>

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

                           (l) Notwithstanding the foregoing, for any
                  "limitation year" in which the Plan is a Top Heavy Plan, 100
                  percent shall be substituted for 125 percent in Sections
                  4.4(j) and 4.4(k).

                           (m) If the sum of the defined benefit plan fraction
                  and the defined contribution plan fraction shall exceed 1.0 in
                  any "limitation year" for any Participant in this Plan, the
                  Administrator shall limit, to the extent necessary, the
                  "annual additions" to such Participant's accounts for such
                  "limitation year." If, after limiting the "annual additions"
                  to such Participant's accounts for the "limitation year," the
                  sum of the defined benefit plan fraction and the defined
                  contribution plan fraction still exceed 1.0, the Administrator
                  shall then adjust the numerator of the defined contribution
                  plan fraction so that the sum of both fractions shall not
                  exceed 1.0 in any "limitation year" for such Participant.

                           (n) Notwithstanding anything contained in this
                  Section to the contrary, the limitations, adjustments and
                  other requirements prescribed in this Section shall at all
                  times comply with the provisions of Code Section 415 and the
                  Regulations thereunder. Effective as of the first day of the
                  first "limitation year" beginning on or after January 1, 2000
                  (the "effective date"), and notwithstanding any other
                  provision of the Plan, the accrued benefit for any Participant
                  shall be determined without applying the limitations of Code
                  Section 415(e) as in effect on the day immediately prior to
                  the "effective date."

                                       28

<PAGE>

4.5      ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS

                           (a) If, as a result of a reasonable error in
                  estimating a Participant's Compensation or other facts and
                  circumstances to which Regulation 1.415-6(b)(6) shall be
                  applicable, the "annual additions" under this Plan would cause
                  the maximum "annual additions" to be exceeded for any
                  Participant, the "excess amount" will be disposed of in one of
                  the following manners, as uniformly determined by the
                  Administrator for all Participants similarly situated.

                           (1) Any after-tax voluntary Employee contributions
                           (plus attributable gains), to the extent they would
                           reduce the "excess amount," will be distributed to
                           the Participant;

                           (2) If, after the application of subparagraph (1)
                           above, an "excess amount" still exists, and the
                           Participant is covered by the Plan at the end of the
                           "limitation year," the "excess amount" will be used
                           to reduce the Employer contribution for such
                           Participant in the next "limitation year," and each
                           succeeding "limitation year" if necessary;

                           (3) If, after the application of subparagraphs (1)
                           and (2) above, an "excess amount" still exists, and
                           the Participant is not covered by the Plan at the end
                           of the "limitation year," the "excess amount" will be
                           held unallocated in a "Section 415 suspense account."
                           The "Section 415 suspense account" will be applied to
                           reduce future Employer contributions for all
                           remaining Participants in the next "limitation year,"
                           and each succeeding "limitation year" if necessary;

                           (4) If a "Section 415 suspense account" is in
                           existence at any time during the "limitation year"
                           pursuant to this Section, it will not participate in
                           the allocation of investment gains and losses of the
                           Trust Fund. If a "Section 415 suspense account" is in
                           existence at any time during a particular "limitation
                           year," all amounts in the "Section 415 suspense
                           account" must be allocated and reallocated to
                           Participants' accounts before any Employer
                           contributions or any Employee contributions may be
                           made to the Plan for that "limitation year." Except
                           as provided in (1) above, "excess amounts" may not be
                           distributed to Participants or Former Participants.

                           (b) For purposes of this Article, "excess amount" for
                  any Participant for a "limitation year" shall mean the excess,
                  if any, of (1) the "annual additions" which would be credited
                  to the Participant's account under the terms of the Plan
                  without regard to the limitations of Code Section 415 over (2)
                  the maximum "annual additions" determined pursuant to Section
                  4.4.

                           (c) For purposes of this Section, "Section 415
                  suspense account" shall mean an unallocated account equal to
                  the sum of "excess amounts" for all Participants in the Plan
                  during the "limitation year."

                                       29

<PAGE>

4.6      ROLLOVERS AND PLAN-TO-PLAN TRANSFERS FROM QUALIFIED PLANS

                           (a) With the consent of the Administrator, and under
                  a uniform and non-discriminatory policy for all Employees,
                  amounts may be transferred (within the meaning of Code Section
                  414(l)) to this Plan from other tax qualified plans under Code
                  Section 401(a) by Eligible Employees, provided the trust from
                  which such funds are transferred permits the transfer to be
                  made and the transfer will not jeopardize the tax exempt
                  status of the Plan or Trust or create adverse tax consequences
                  for the Employer. Prior to accepting any transfers to which
                  this Section applies, the Administrator may require an opinion
                  of counsel that the amounts to be transferred meet the
                  requirements of this Section. The amounts transferred shall be
                  set up in a separate account herein referred to as a
                  Participant's Transfer/Rollover Account. Furthermore, for
                  vesting purposes, the Participant's portion of the
                  Participant's Transfer/Rollover Account attributable to any
                  transfer shall be subject to Section 6.4(b).

                           Except as permitted by Regulations (including
                  Regulation 1.411(d)-4), amounts attributable to elective
                  contributions (as defined in Regulation 1.401(k)-1(g)(3)),
                  including amounts treated as elective contributions, which are
                  transferred from another qualified plan in a plan-to-plan
                  transfer (other than a direct rollover) shall be subject to
                  the distribution limitations provided for in Regulation
                  1.401(k)-1(d).

                           (b) With the consent of the Administrator, and under
                  a uniform and non-discriminatory policy for all Employees, the
                  Plan may accept a "rollover" by Eligible Employees, provided
                  the "rollover" will not jeopardize the tax exempt status of
                  the Plan or create adverse tax consequences for the Employer.
                  Prior to accepting any "rollovers" to which this Section
                  applies, the Administrator may require the Employee to
                  establish (by providing opinion of counsel or otherwise) that
                  the amounts to be rolled over to this Plan meet the
                  requirements of this Section. The amounts rolled over shall be
                  set up in a separate account herein referred to as a
                  "Participant's Transfer/Rollover Account." Such account shall
                  be fully Vested at all times and shall not be subject to
                  Forfeiture for any reason.

                           For purposes of this Section, the term "qualified
                  plan" shall mean any tax qualified plan under Code Section
                  401(a), or, any other plans from which distributions are
                  eligible to be rolled over into this Plan pursuant to the
                  Code. The term "rollover" means: (i) amounts transferred to
                  this Plan directly from another qualified plan; (ii)
                  distributions received by an Employee from other "qualified
                  plans" which are eligible for tax-free rollover to a
                  "qualified plan" and which are transferred by the Employee to
                  this Plan within sixty (60) days following receipt thereof;
                  (iii) amounts transferred to this Plan from a conduit
                  individual retirement account provided that the conduit
                  individual retirement account has no assets other than assets
                  which (A) were previously distributed to the Employee by
                  another "qualified plan," (B) were eligible for tax-free
                  rollover to a "qualified plan" and (C) were deposited in such
                  conduit individual retirement account within sixty (60) days
                  of receipt thereof; (iv) amounts distributed to the Employee
                  from a conduit individual retirement account meeting the
                  requirements of clause (iii) above, and transferred by the
                  Employee to this Plan within sixty (60) days of

                                       30

<PAGE>

                  receipt thereof from such conduit individual retirement
                  account; and (v) any other amounts which are eligible to be
                  rolled over to this Plan pursuant to the Code.

                           (c) Amounts in a Participant's Transfer/Rollover
                  Account shall be held by the Trustee pursuant to the
                  provisions of this Plan and may not be withdrawn by, or
                  distributed to the Participant, in whole or in part, except as
                  provided in paragraph (d) of this Section. The Trustee shall
                  have no duty or responsibility to inquire as to the propriety
                  of the amount, value or type of assets transferred, nor to
                  conduct any due diligence with respect to such assets;
                  provided, however, that such assets are otherwise eligible to
                  be held by the Trustee under the terms of this Plan.

                           (d) The Administrator, at the election of the
                  Participant, shall direct the Trustee to distribute all or a
                  portion of the amount credited to the Participant's
                  Transfer/Rollover Account. Any distributions of amounts held
                  in a Participant's Transfer/Rollover Account shall be made in
                  a manner which is consistent with and satisfies the provisions
                  of Section 6.5, including, but not limited to, all notice and
                  consent requirements of Code Section 411(a)(11) and the
                  Regulations thereunder. Furthermore, such amounts shall be
                  considered as part of a Participant's benefit in determining
                  whether an involuntary cash-out of benefits may be made
                  without Participant consent.

                           (e) The Administrator may direct that Employee
                  transfers and rollovers made after a Valuation Date be
                  segregated into a separate account for each Participant 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 be directed by the
                  Participant pursuant to Section 4.8.

                           (f) This Plan shall not accept any direct or indirect
                  transfers (as that term is defined and interpreted under Code
                  Section 401(a)(11) and the Regulations thereunder) from a
                  defined benefit plan, money purchase 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
                  the Participant.

                           (g) Notwithstanding anything herein to the contrary,
                  a transfer directly to this Plan from another qualified plan
                  (or a transaction having the effect of such a transfer) shall
                  only be permitted if it will not result in the elimination or
                  reduction of any "Section 411(d)(6) protected benefit" as
                  described in Section 7.1.

4.7      VOLUNTARY CONTRIBUTIONS AND MATCHING EMPLOYER CONTRIBUTIONS

                           (a) Each Participant may, in accordance with
                  nondiscriminatory procedures established by the Administrator,
                  elect to make after-tax voluntary Employee contributions to
                  the Plan in increments of one percent (1 %) in an amount not
                  less than one percent (1%) of Compensation, nor more than five
                  percent (5%) of Compensation. Such contributions must
                  generally be paid to the Trustee within a reasonable period of
                  time after being received by the Employer.

                                       31

<PAGE>

                  The balance in each Participant's Voluntary Contribution
                  Account shall be fully Vested at all times and shall not be
                  subject to Forfeiture for any reason.

                           (b) An Employer may elect, in its sole discretion, to
                  make Matching Employer Contributions for a Plan Year for each
                  Participant on whose behalf Employee contributions as
                  described above have been made during the Plan Year. The Board
                  of Managers shall have the authority, in its sole discretion,
                  to set the amount of Matching Employer Contributions to be
                  allocated to an applicable Participant's Matching Account in
                  any amount for any quarter, and the Board of Managers may, in
                  its sole discretion, suspend or alter Matching Employer
                  Contributions for any quarter in the future.

                           (c) For any Plan Year, the Matching Employer
                  Contributions shall be an amount equal to a percentage of the
                  aggregate amount of after-tax voluntary Employee contributions
                  for all Participants for such Plan Year (or such other
                  percentage as may be determined by the Board of Managers).

4.8      DIRECTED INVESTMENT ACCOUNT AND PARTICIPANT VOTING RIGHTS WITH RESPECT
         TO QUALIFYING EMPLOYER SECURITIES

                           (a) Participants may, subject to a procedure
                  established by the Administrator (the Participant Direction
                  Procedures) and applied in a uniform nondiscriminatory manner,
                  direct the Trustee, in writing (or in such other form which is
                  acceptable to the Trustee), to invest all of their accounts in
                  specific assets, specific funds or other investments permitted
                  under the Plan and Trust Agreement and the Participant
                  Direction Procedures. That portion of the interest of any
                  Participant so directing will thereupon be considered a
                  Participant's Directed Account.

                           (b) As of each Valuation Date, all Participant's
                  Directed Accounts shall be charged or credited with the net
                  earnings, gains, losses and expenses as well as any
                  appreciation or depreciation in the market value using
                  publicly listed fair market values when available or
                  appropriate as follows:

                           (1) to the extent that the assets in a Participant's
                           Directed Account are accounted for as pooled assets
                           or investments, the allocation of earnings, gains and
                           losses of each Participant's Directed Account shall
                           be based upon the total amount of funds so invested
                           in a manner proportionate to the Participant's share
                           of such pooled investment; and

                           (2) to the extent that the assets in the
                           Participant's Directed Account are accounted for as
                           segregated assets, the allocation of earnings, gains
                           and losses from such assets shall be made on a
                           separate and distinct basis.

                           (c) The Participant Direction Procedures shall
                  provide an explanation of the circumstances under which
                  Participants and their Beneficiaries may give investment
                  instructions, including, but need not be limited to, the
                  following:

                                       32

<PAGE>

                           (1) the conveyance of instructions by the
                           Participants and their Beneficiaries to invest
                           Participant's Directed Accounts in Directed
                           Investment Options;

                           (2) the name, address and phone number of the
                           Fiduciary (and, if applicable, the person or persons
                           designated by the Fiduciary to act on its behalf)
                           responsible for providing information to the
                           Participant or a Beneficiary upon request relating to
                           the Directed Investment Options;

                           (3) applicable restrictions on transfers to and from
                           any Designated Investment Alternative;

                           (4) any restrictions on the exercise of voting,
                           tender and similar rights related to a Directed
                           Investment Option by the Participants or their
                           Beneficiaries;

                           (5) a description of any transaction fees and
                           expenses which affect the balances in Participant's
                           Directed Accounts in connection with the purchase or
                           sale of Directed Investment Options; and

                           (6) general procedures for the dissemination of
                           investment and other information relating to the
                           Designated Investment Alternatives as deemed
                           necessary or appropriate, including but not limited
                           to a description of the following:

                                    (i) the investment vehicles available under
                                    the Plan, including specific information
                                    regarding any Designated Investment
                                    Alternative;

                                    (ii) any designated Investment Managers; and

                                    (iii) a description of the additional
                                    information which may be obtained upon
                                    request from the Fiduciary designated to
                                    provide such information.

                           (d) With respect to assets in a Participant's
                  Directed Investment Account, (other than as described below
                  with respect to qualifying Employer securities in the Employer
                  Stock Fund) the Participant or Beneficiary shall direct the
                  Trustee with regard to any voting, tender and similar rights
                  associated with the ownership of such assets, (hereinafter
                  referred to as the "Stock Rights") as follows:

                           (1) each Participant or Beneficiary shall direct the
                           Trustee to vote or otherwise exercise such Stock
                           Rights in accordance with the provisions, conditions
                           and terms of any such Stock Rights;

                           (2) such directions shall be provided to the Trustee
                           by the Participant or Beneficiary in accordance with
                           the procedure as established by the Administrator and
                           the Trustee shall vote or otherwise exercise such
                           Stock

                                       33

<PAGE>

                           Rights with respect to which it has received
                           directions to do so under this Section; and

                           (3) to the extent to which a Participant or
                           Beneficiary does not instruct the Trustee to vote or
                           otherwise exercise such Stock Rights, such
                           Participants or Beneficiaries shall be deemed to have
                           directed the Trustee that such Stock Rights remain
                           nonvoted and unexercised.

                           (e) Any information regarding investments available
                  under the Plan, to the extent not required to be described in
                  the Participant Direction Procedures, may be provided to the
                  Participant in one or more written documents (or in any other
                  form including, but not limited to, electronic media) which
                  are separate from the Participant Direction Procedures and are
                  not thereby incorporated by reference into this Plan.

                           (f) The Administrator may, in its discretion, include
                  in or exclude by amendment or other action from the
                  Participant Direction Procedures such instructions, guidelines
                  or policies as it deems necessary or appropriate to ensure
                  proper administration of the Plan, and may interpret the same
                  accordingly.

4.8A     VOTING RIGHTS WITH RESPECT TO QUALIFYING EMPLOYER SECURITIES IN THE
         EMPLOYER STOCK FUND

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

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

                                       34

<PAGE>

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

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

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

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

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

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

4.8B     TENDER OFFERS AND OTHER OFFERS

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

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

                                       35

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

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

4.8C     RESTRICTIONS ON INVESTMENTS IN THE EMPLOYER STOCK FUND FOR CERTAIN
         PARTICIPANTS

         Notwithstanding anything in the Plan to the contrary, any person
subject to the provisions of Section 16(b) of the Securities Exchange Act of
1934, as amended: (a) may be subject to Section 16(b) liability if such person
has an intra-plan transfer, in accordance with the provisions of Section 4.8,
involving the Employer Stock Fund within six (6) months of the next preceding
transfer into or out of the Employer Stock Fund. In addition, any person subject
to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as
amended, who elects to receive a cash distribution from his Employer Stock Fund
account under the Plan, including redemption of such stock for purposes of cash
withdrawals under Section 6.10 and/or Section 6.11, may similarly be subject to
Section 16(b) liability for any short swing profits within six (6) months of the
next preceding transfer into or out of the Employer Stock Fund.

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

4.9      ACTUAL CONTRIBUTION PERCENTAGE TESTS

                           (a) The "Actual Contribution Percentage" for Plan
                  Years beginning after December 31, 1996 for the Highly
                  Compensated Participant group shall not exceed the greater of:

                           (1) 125 percent of such percentage for the Non-Highly
                           Compensated Participant group (for the preceding Plan
                           Year if the prior year testing method is used to
                           calculate the "Actual Contribution Percentage" for
                           the Non-Highly Compensated Participant group); or

                                       36

<PAGE>

                           (2) the lesser of 200 percent of such percentage for
                           the Non-Highly Compensated Participant group (for the
                           preceding Plan Year if the prior year testing method
                           is used to calculate the "Actual Contribution
                           Percentage" for the Non-Highly Compensated
                           Participant group), or such percentage for the
                           Non-Highly Compensated Participant group (for the
                           preceding Plan Year if the prior year testing method
                           is used to calculate the "Actual Contribution
                           Percentage" for the Non-Highly Compensated
                           Participant group) plus 2 percentage points. However,
                           to prevent the multiple use of the alternative method
                           described in this paragraph and Code Section
                           401(m)(9)(A), any Highly Compensated Participant
                           eligible to make elective deferrals pursuant to any
                           cash or deferred arrangement maintained by the
                           Employer or an Affiliated Employer and to make
                           Employee contributions or to receive matching
                           contributions under this Plan or under any other plan
                           maintained by the Employer or an Affiliated Employer
                           shall have a combination of elective deferrals and
                           Employee contributions and matching contributions
                           reduced pursuant to Regulation 1.401(m)-2 and Section
                           4.10(a). The provisions of Code Section 401(m) and
                           Regulations 1.401(m)-1(b) and 1.401(m)-2 are
                           incorporated herein by reference.

                           (b) For the purposes of this Section and Section
                  4.10, "Actual Contribution Percentage" for a Plan Year means,
                  with respect to the Highly Compensated Participant group and
                  Non-Highly Compensated Participant group (for the preceding
                  Plan Year if the prior year testing method is used to
                  calculate the "Actual Contribution Percentage" for the
                  Non-Highly Compensated Participant group), the average of the
                  ratios (calculated separately for each Participant in each
                  group and rounded to the nearest one-hundredth of one percent)
                  of:

                           (1) the sum of after-tax voluntary Employee
                           contributions and Matching Employer Contributions
                           made pursuant to Section 4.7 on behalf of each such
                           Participant for such Plan Year; to

                           (2) the Participant's "414(s) Compensation" for such
                           Plan Year.

                           Notwithstanding the above, if the prior year testing
                  method is used to calculate the "Actual Contribution
                  Percentage" for the Non-Highly Compensated Participant group
                  for the first Plan Year of this amendment and restatement, for
                  purposes of Section 4.9(a), the "Actual Contribution
                  Percentage" for the Non-Highly Compensated Participant group
                  for the preceding Plan Year shall be determined pursuant to
                  the provisions of the Plan then in effect.

                           (c) For purposes of determining the "Actual
                  Contribution Percentage," the Administrator may elect to take
                  into account, with respect to Employees eligible to have
                  after-tax voluntary Employee contributions made pursuant to
                  Section 4.7 allocated to their accounts, "elective deferrals"
                  and "qualified non-elective contributions" contributed to any
                  plan maintained by the Employer. However, the Plan Year must
                  be the same as the plan year of the plan to which the elective
                  deferrals and the qualified non-elective contributions are
                  made.

                                       37

<PAGE>

                           (d) For purposes of this Section and Code Sections
                  401(a)(4), 410(b) and 401(m), if two or more plans of the
                  Employer to which Matching Employer Contributions, Employee
                  contributions, or both, are made are treated as one plan for
                  purposes of Code Sections 401(a)(4) or 410(b) (other than the
                  average benefits test under Code Section 410(b)(2)(A)(ii)),
                  such plans shall be treated as one plan. In addition, two or
                  more plans of the Employer to which matching contributions,
                  Employee contributions, or both, are made may be considered as
                  a single plan for purposes of determining whether or not such
                  plans satisfy Code Sections 401(a)(4), 410(b) and 401(m). In
                  such a case, the aggregated plans must satisfy this Section
                  and Code Sections 401(a)(4), 410(b) and 401(m) as though such
                  aggregated plans were a single plan. Any adjustment to the
                  Non-Highly Compensated Participant actual contribution ratio
                  for the prior year shall be made in accordance with Internal
                  Revenue Service Notice 98-1 and any superseding guidance.
                  Plans may be aggregated under this paragraph (d) only if they
                  have the same plan year. Notwithstanding the above, for Plan
                  Years beginning after December 31, 1996, if two or more plans
                  which include cash or deferred arrangements are permissively
                  aggregated under Regulation 1.410(b)-7(d), all plans
                  permissively aggregated must use either the current year
                  testing method or the prior year testing method for the
                  testing year.

                           Notwithstanding the above, an employee stock
                  ownership plan described in Code Section 4975(e)(7) or 409 may
                  not be aggregated with this Plan for purposes of determining
                  whether the employee stock ownership plan or this Plan
                  satisfies this Section and Code Sections 401(a)(4), 410(b) and
                  401(m).

                           (e) If a Highly Compensated Participant is a
                  Participant under two or more plans (other than an employee
                  stock ownership plan as defined in Code Section 4975(e)(7) or
                  409) which are maintained by the Employer or an Affiliated
                  Employer to which matching contributions, Employee
                  contributions, or both, are made, all such contributions on
                  behalf of such Highly Compensated Participant shall be
                  aggregated for purposes of determining such Highly Compensated
                  Participant's actual contribution ratio. However, if the plans
                  have different plan years, this paragraph shall be applied by
                  treating all plans ending with or within the same calendar
                  year as a single plan.

                           (f) For purposes of Sections 4.9(a) and 4.10, a
                  Highly Compensated Participant and Non-Highly Compensated
                  Participant shall include any Employee eligible to have
                  after-tax voluntary Employee contributions (whether or not
                  after-tax voluntary Employee contributions are made) allocated
                  to the Participant's Aggregate Account for the Plan Year.

                           Notwithstanding the above, if the prior year testing
                  method is used to calculate the "Actual Contribution
                  Percentage" for the Non-Highly Compensated Participant group
                  for the first Plan Year of this amendment and restatement, for
                  the purposes of Section 4.9(a), a Non-Highly Compensated
                  Participant shall include any such Employee eligible to have
                  after-tax voluntary Employee contributions (whether or not
                  after-tax voluntary Employee

                                       38

<PAGE>

                  contributions are made) allocated to the Participant's
                  Aggregate Account for the preceding Plan Year pursuant to the
                  provisions of the Plan then in effect.

                           (g) For the purpose of this Section, for Plan Years
                  beginning after December 31, 1996, unless otherwise provided
                  below, when calculating the "Actual Contribution Percentage"
                  for the Non-Highly Compensated Participant group, the prior
                  year testing method shall be used. Any change from the current
                  year testing method to the prior year testing method shall be
                  made pursuant to Internal Revenue Service Notice 98-1, Section
                  VII (or superseding guidance), the provisions of which are
                  incorporated herein by reference.

                                    For the Plan Year beginning after December
                           31, 1996, the current year testing method shall be
                           used.

                                    For the Plan Year beginning after December
                           31, 1997, the current year testing method shall be
                           used.

                                    For the Plan Year beginning after December
                           31, 1998, the prior year testing method shall be
                           used.

                                    For the Plan Year beginning after December
                           31, 1999, the prior year testing method shall be
                           used.

                                    For the Plan Year beginning after December
                           30, 2000, the prior year testing method shall be
                           used.

                           (h) Notwithstanding anything in this Section to the
                  contrary, the provisions of this Section and Section 4.10 may
                  be applied separately (or will be applied separately to the
                  extent required by Regulations) to each plan within the
                  meaning of Regulation 1.401(k)-1(g)(11). Furthermore, for Plan
                  Years beginning after December 31, 1998, the provisions of
                  Code Section 401(k)(3)(F) may be used to exclude from
                  consideration all Non-Highly Compensated Employees who have
                  not satisfied the minimum age and service requirements of Code
                  Section 410(a)(1)(A).

4.10     ADJUSTMENT TO ACTUAL CONTRIBUTION PERCENTAGE TESTS

                           (a) In the event (or if it is anticipated) that, for
                  Plan Years beginning after December 31, 1996, the "Actual
                  Contribution Percentage" for the Highly Compensated
                  Participant group exceeds (or might exceed) the "Actual
                  Contribution Percentage" for the Non-Highly Compensated
                  Participant group pursuant to Section 4.9(a), the
                  Administrator (on or before the fifteenth day of the third
                  month following the end of the Plan Year, but in no event
                  later than the close of the following Plan Year) shall direct
                  the Trustee to distribute to the Highly Compensated
                  Participant having the largest dollar amount of after-tax
                  voluntary Employee contributions and Matching Employer
                  Contributions made pursuant to Section 4.7, the portion of
                  such contributions (and Income allocable to such
                  contributions) until the total amount of Excess Aggregate
                  Contributions has been distributed, or until the Participant's
                  remaining amount equals the amount of

                                       39

<PAGE>

                  after-tax voluntary Employee contributions and Matching
                  Employer Contributions made pursuant to Section 4.7 of the
                  Highly Compensated Participant having the second largest
                  dollar amount of such contributions. This process shall
                  continue until the total amount of Excess Aggregate
                  Contributions has been distributed.

                           (b) Any distribution of less than the entire amount
                  of Excess Aggregate Contributions (and Income) shall be
                  treated as a pro rata distribution of Excess Aggregate
                  Contributions and Income. Distribution of Excess Aggregate
                  Contributions shall be designated by the Employer as a
                  distribution of Excess Aggregate Contributions (and Income).

                           (c) The determination of the amount of Excess
                  Aggregate Contributions with respect to any Plan Year shall be
                  made after first determining the excess contributions as
                  defined in any qualified cash or deferred arrangement (as
                  defined in Code Section 401(k)) maintained by the Employer, if
                  any, to be treated as after-tax voluntary Employee
                  contributions due to recharacterization for the plan year of
                  any such qualified cash or deferred arrangement maintained by
                  the Employer that ends with or within the Plan Year.

                           (d) If during a Plan Year the projected aggregate
                  amount of after-tax voluntary Employee contributions to be
                  allocated to all Highly Compensated Participants under this
                  Plan would, by virtue of the tests set forth in Section
                  4.9(a), cause the Plan to fail such tests, then the
                  Administrator may automatically reduce proportionately or in
                  the order provided in Section 4.10(a) each affected Highly
                  Compensated Participant's projected share of such
                  contributions by an amount necessary to satisfy one of the
                  tests set forth in Section 4.9(a).

                           (e) Notwithstanding the above, within twelve (12)
                  months after the end of the Plan Year, the Employer may make a
                  "qualified non-elective contribution" on behalf of Non-Highly
                  Compensated Participants in an amount sufficient to satisfy
                  (or to prevent an anticipated failure of) one of the tests set
                  forth in Section 4.9(a). Such contribution shall be allocated
                  to the Participant's Account of each Non-Highly Compensated
                  Participant in the same proportion that each Non-Highly
                  Compensated Participant's 414(s) Compensation for the year
                  bears to the total 414(s) Compensation of all Non-Highly
                  Compensated Participants. A separate accounting shall be
                  maintained with respect to such contributions.

                           However, if the prior year testing method is used,
                  the "qualified non-elective contribution" shall be allocated
                  to the Participant's Account on behalf of each Non-Highly
                  Compensated Participant who was employed by the Employer on
                  the last day of the prior Plan Year in the same proportion
                  that each such Non-Highly Compensated Participant's 414(s)
                  Compensation for the prior year bears to the total 414(s)
                  Compensation of all such Non-Highly Compensated Participants
                  for the prior year. Such contribution shall be made by the
                  Employer prior to the end of the current Plan Year. A separate
                  accounting shall be maintained with respect to such
                  contributions.

                                       40

<PAGE>

                           Notwithstanding the above, for Plan Years beginning
                  after December 31, 1998, if the testing method changes from
                  the current year testing method to the prior year testing
                  method, then for purposes of preventing the double counting of
                  "qualified non-elective contributions" for the first testing
                  year for which the change is effective, any "qualified
                  non-elective contribution" on behalf of Non-Highly Compensated
                  Participants used to satisfy the "Actual Contribution
                  Percentage" test under the current year testing method for the
                  prior year testing year shall be disregarded.

                           (f) Any Excess Aggregate Contributions (and Income)
                  which are distributed on or after 2 1/2 months after the end
                  of the Plan Year shall be subject to the ten percent (10%)
                  Employer excise tax imposed by Code Section 4979.

                           (g) For purposes of this Section and Section 4.9, the
                  following definitions shall apply:

                           (1) "Elective deferrals" are contributions made
                           pursuant to a salary reduction or other deferral
                           mechanism. "Elective deferrals" are the sum of all
                           Employer contributions made on behalf of a
                           Participant pursuant to an election to defer under a
                           qualified cash or deferred arrangement as described
                           in Code Section 401(k), any salary reduction
                           simplified employee pension described in Code Section
                           408(k)(6), any Simple IRA Plan described in Code
                           Section 408(p), any eligible deferred compensation
                           plan under Code Section 457, any plan described under
                           Code Section 501(c)(18), and any Employer
                           contributions made on behalf of a Participant for the
                           purchase of an annuity contract under Code Section
                           403(b) pursuant to a salary reduction agreement.
                           Elective deferrals shall not include any deferrals
                           properly distributed as excess "annual additions."

                           (2) "Qualified non-elective contributions" are
                           contributions (other than a Matching Employer
                           Contribution) made by the Employer that the
                           Participants may not elect to receive in cash until
                           distributed from the Plan and that are distributable
                           only in accordance with the distribution provisions
                           that are applicable to "elective deferrals."

                           Such "elective deferrals" and "qualified non-elective
                  contributions" shall be fully Vested at all times and, except
                  as otherwise provided herein, shall not be subject to
                  Forfeiture for any reason. Such deferrals and contributions
                  shall be treated as Employer matching contributions subject to
                  Regulation 1.401(m)-1(b)(5) which is incorporated herein by
                  reference.

4.11     QUALIFIED MILITARY SERVICE

         Notwithstanding any provision of this Plan to the contrary, effective
December 12, 1994, contributions, benefits and service will be provided in
accordance with Code Section 414(u).

                                       41

<PAGE>
                                    ARTICLE V
                                   VALUATIONS

5.1      VALUATION OF THE TRUST FUND

         The Administrator shall direct the Trustee, as of each Valuation Date,
to determine the net worth of the assets comprising the Trust Fund as it exists
on the Valuation Date. In determining such net worth, the Trustee shall value
the assets comprising the Trust Fund at their fair market value (or their
contractual value in the case of a Contract or Policy) 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. The Trustee may update the
value of any shares held in the Participant's Directed Account by reference to
the number of shares held by that Participant, priced at the market value as of
the Valuation Date.

5.2      METHOD OF VALUATION

         In determining the fair market value of securities held in the Trust
Fund which are listed on a registered stock exchange, the Administrator shall
direct the Trustee to value the same at the prices they were last traded on such
exchange preceding the close of business on the Valuation Date. If such
securities were not traded on the Valuation Date, or if the exchange on which
they are traded was not open for business on the Valuation Date, then the
securities shall be valued at the prices at which they were last traded prior to
the Valuation Date. Any unlisted security held in the Trust Fund shall be valued
at its bid price next preceding the close of business on the Valuation Date,
which bid price shall be obtained from a registered broker or an investment
banker. In determining the fair market value of assets other than securities for
which trading or bid prices can be obtained, the Trustee may appraise such
assets itself, or in its discretion, employ one or more appraisers for that
purpose and rely on the values established by such appraiser or appraisers.

                                   ARTICLE VI
                   DETERMINATION AND DISTRIBUTION OF BENEFITS

6.1      DETERMINATION OF BENEFITS UPON RETIREMENT

         Every Participant may terminate employment with the Employer and retire
for the purposes hereof on the Participant's Normal Retirement Date. However, a
Participant may postpone the termination of employment with the Employer to a
later date, in which event the participation of such Participant in the Plan,
including the right to receive allocations pursuant to Section 4.3 and 4.7,
shall continue until such Participant's Late Retirement Date. Upon a
Participant's Retirement Date, or as soon thereafter as is practicable, the
Trustee shall distribute, at the election of the Participant, all amounts
credited to such Participant's Account in accordance with Section 6.5.

6.2      DETERMINATION OF BENEFITS UPON DEATH

                           (a) Upon the death of a Participant before the
                  Participant's Retirement Date or other termination of
                  employment, all amounts credited to such Participant's Account
                  shall become fully Vested. The Administrator shall direct the
                  Trustee, in accordance with the provisions of Sections 6.6 and
                  6.7, to

                                       42

<PAGE>

                  distribute the value of the deceased Participant's Aggregate
                  Accounts to the Participant's Beneficiary.

                           (b) Upon the death of a Former Participant, the
                  Administrator shall direct the Trustee, in accordance with the
                  provisions of Sections 6.6 and 6.7, to distribute any
                  remaining Vested amounts credited to the accounts of a
                  deceased Former Participant to such Former Participant's
                  Beneficiary.

                           (c) The Administrator may require such proper proof
                  of death and such evidence of the right of any person to
                  receive payment of the value of the account of a deceased
                  Participant or Former Participant as the Administrator may
                  deem desirable. The Administrator's determination of death and
                  of the right of any person to receive payment shall be
                  conclusive.

                           (d) The Beneficiary of the death benefit payable
                  pursuant to this Section shall be the Participant's spouse.
                  Except, however, the Participant may designate a Beneficiary
                  other than the spouse if:

                           (1) the spouse has waived the right to be the
                           Participant's Beneficiary, or

                           (2) the Participant is legally separated or has been
                           abandoned (within the meaning of local law) and the
                           Participant has a court order to such effect (and
                           there is no "qualified domestic relations order" as
                           defined in Code Section 414(p) which provides
                           otherwise), or

                           (3) the Participant has no spouse, or

                           (4) the spouse cannot be located.

                           In such event, the designation of a Beneficiary shall
                  be made on a form satisfactory to the Administrator. A
                  Participant may at any time revoke a designation of a
                  Beneficiary or change a Beneficiary by filing written (or in
                  such other form as permitted by the Internal Revenue Service)
                  notice of such revocation or change with the Administrator.
                  However, the Participant's spouse must again consent in
                  writing (or in such other form as permitted by the Internal
                  Revenue Service) to any change in Beneficiary unless the
                  original consent acknowledged that the spouse had the right to
                  limit consent only to a specific Beneficiary and that the
                  spouse voluntarily elected to relinquish such right.

                           (e) In the event no valid designation of Beneficiary
                  exists, or if the Beneficiary is not alive at the time of the
                  Participant's death, the death benefit will be paid in the
                  following order of priority:

                           (1) the Participant's surviving spouse;

                           (2) the Participant's children, including adopted
                           children, per stirpes;

                           (3) the Participant's surviving parents, in equal
                           shares; or

                                       43

<PAGE>

                           (4) the Participant's estate.

                           If the Beneficiary does not predecease the
                  Participant, but dies prior to distribution of the death
                  benefit, the death benefit will be paid to the Beneficiary's
                  estate.

                           (f) Notwithstanding anything in this Section to the
                  contrary, if a Participant has designated the spouse as a
                  Beneficiary, then a divorce decree or a legal separation that
                  relates to such spouse shall revoke the Participant's
                  designation of the spouse as a Beneficiary unless the decree
                  or a qualified domestic relations order (within the meaning of
                  Code Section 414(p)) provides otherwise.

                           (g) Any consent by the Participant's spouse to waive
                  any rights to the death benefit must be in writing (or in such
                  other form as permitted by the Internal Revenue Service), must
                  acknowledge the effect of such waiver, and be witnessed by a
                  Plan representative or a notary public. Further, the spouse's
                  consent must be irrevocable and must acknowledge the specific
                  nonspouse Beneficiary.

6.3      DETERMINATION OF BENEFITS IN EVENT OF DISABILITY

         In the event of a Participant's Total and Permanent Disability prior to
the Participant's Retirement Date or other termination of employment, all
amounts credited to such Participant's Account shall become fully Vested. In the
event of a Participant's Total and Permanent Disability, the Administrator, in
accordance with the provisions of Sections 6.5 and 6.7, shall direct the
distribution to such Participant of all Vested amounts credited to such
Participant's Account.

6.4      DETERMINATION OF BENEFITS UPON TERMINATION

                           (a) If a Participant's employment with the Employer
                  is terminated for any reason other than death, Total and
                  Permanent Disability or retirement, then such Participant
                  shall be entitled to such benefits as are provided hereinafter
                  pursuant to this Section 6.4.

                           Distribution of the funds due to a Terminated
                  Participant shall be made on the occurrence of an event which
                  would result in the distribution had the Terminated
                  Participant remained in the employ of the Employer (upon the
                  Participant's death, Total and Permanent Disability or Normal
                  Retirement). However, at the election of the Participant, the
                  Administrator shall direct the Trustee that the entire Vested
                  portion of the Terminated Participant's Account to be payable
                  to such Terminated Participant. Any distribution under this
                  paragraph shall be made in a manner which is consistent with
                  and satisfies the provisions of Section 6.5, including, but
                  not limited to, all notice and consent requirements of Code
                  Section 411(a)(11) and the Regulations thereunder.

                                       44

<PAGE>

                           If, for Plan Years beginning after August 5, 1997,
                  the value of a Terminated Participant's Vested benefit derived
                  from Employer and Employee contributions does not exceed
                  $5,000 ($3,500 for Plan Years beginning prior to August 6,
                  1997) and, if the distribution is made prior to March 22,
                  1999, has never exceeded $5,000 ($3,500 for Plan Years
                  beginning prior to August 6, 1997) at the time of any prior
                  distribution, then the Administrator shall direct the Trustee
                  to cause the entire Vested benefit to be paid to such
                  Participant in a single lump sum.

                           (b) The Vested portion of any Participant's Account
                  shall be a percentage of the total amount credited to the
                  Participant's Account determined on the basis of the following
                  schedule effective with Plan Year on or after December 30,
                  2002:

                                       Vesting Schedule
                     Periods of Service                       Percentage

                       Less than 1                                  0 %
                            1                                      33 %
                            2                                      66 %
                            3                                     100 %

                           Notwithstanding the forgoing for Participants who
                  terminated employment prior to December 30, 2002 the following
                  vesting schedule shall apply:

                           1.       33% at the end of the first calendar year
                                    following the end of the first year of Plan
                                    participation

                           2.       66% at the end of the second calendar year
                                    following the end of the first year of Plan
                                    participation

                           3.       100% at the end of the third calendar year
                                    following the end of the first year of Plan
                                    participation

                           (c) Notwithstanding the vesting schedule above, the
                  Vested percentage of a Participant's Account shall not be less
                  than the Vested percentage attained as of the later of the
                  effective date or adoption date of this amendment and
                  restatement.

                           (d) Notwithstanding the vesting schedule above, upon
                  the complete discontinuance of the Employer contributions to
                  the Plan or upon any full or partial termination of the Plan,
                  all amounts then credited to the account of any affected
                  Participant shall become 100% Vested and shall not thereafter
                  be subject to Forfeiture.

                           (e) The computation of a Participant's nonforfeitable
                  percentage of such Participant's interest in the Plan shall
                  not be reduced as the result of any

                                       45

<PAGE>

                  direct or indirect amendment to this Plan. In the event that
                  the Plan is amended to change or modify any vesting schedule,
                  or if 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 a top heavy vesting schedule, then each
                  Participant with at least three (3) whole year Periods of
                  Service as of the expiration date of the election period may
                  elect to have such Participant's nonforfeitable percentage
                  computed under the Plan without regard to such amendment or
                  change. If a Participant fails to make such election, then
                  such Participant shall be subject to the new vesting schedule.
                  The Participant's election period shall commence on the
                  adoption date of the amendment and shall end sixty (60) days
                  after the latest of:

                           (1) the adoption date of the amendment,

                           (2) the effective date of the amendment, or

                           (3) the date the Participant receives written notice
                           of the amendment from the Employer or Administrator.

6.5      DISTRIBUTION OF BENEFITS

                           (a) The Administrator, pursuant to the election of
                  the Participant, shall direct the Trustee to distribute to a
                  Participant or such Participant's Beneficiary any amount to
                  which the Participant is entitled under the Plan in one or
                  more of the following methods: one lump-sum payment in cash
                  and/or in qualifying Employer securities.

                           (1) One lump-sum payment in cash and/or in qualifying
                           Employer securities allocated to the Participant's
                           Account.

                           (2) Payments over a period certain inapproximately
                           equal annual cash installments over a period not to
                           exceed ten years (or the estimated life expectancy of
                           the Participant at the date of his termination of
                           employment. In order to provide such installment
                           payments, the Administrator may (A) segregate the
                           aggregate amount thereof in a separate, federally
                           insured savings account, certificate of deposit in a
                           bank or savings and loan association, money market
                           certificate or other liquid short-term security or
                           (B) purchase a nontransferable annuity contract for a
                           term certain (with no life contingencies) providing
                           for such payment. The period over which such payment
                           is to be made shall not extend beyond the
                           Participant's life expectancy (or the life expectancy
                           of the Participant and the Participant's designated
                           Beneficiary).

                                       46

<PAGE>

                           Except as otherwise provided herein, qualifying
                  Employer securities 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 qualifying Employer securities of the same
                  class. If a Participant is required to offer the sale of
                  qualifying Employer securities to the Employer before offering
                  to sell qualifying Employer securities 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 qualifying Employer securities.

                           (b) Any distribution to a Participant, for Plan Years
                  beginning after August 5, 1997, who has a benefit which
                  exceeds $5,000 ($3,500 for Plan Years beginning prior to
                  August 6, 1997) or, if the distribution is made prior to March
                  22, 1999, has ever exceeded $5,000 ($3,500 for Plan Years
                  beginning prior to August 6, 1997) at the time of any prior
                  distribution, shall require such Participant's written (or in
                  such other form as permitted by the Internal Revenue Service)
                  consent if such distribution commences prior to the time the
                  benefit is "immediately distributable." A benefit is
                  "immediately distributable" if any part of the benefit could
                  be distributed to the Participant (or surviving spouse) before
                  the Participant attains (or would have attained if not
                  deceased) the later of the Participant's Normal Retirement Age
                  or age 62. However, for distributions prior to October 17,
                  2000, if a Participant has begun to receive distributions
                  pursuant to an optional form of benefit under which at least
                  one scheduled periodic distribution has not yet been made, and
                  if the value of the Participant's benefit, determined at the
                  time of the first distribution under that optional form of
                  benefit, exceeded $5,000 ($3,500 for Plan Years beginning
                  prior to August 6, 1997), then the value of the Participant's
                  benefit prior to October 17, 2000 is deemed to continue to
                  exceed such amount.

                           (c) The following rules will apply to the consent
                  requirements set forth in subsection (b):

                           (1) The Participant must be informed of the right to
                           defer receipt of the distribution. If a Participant
                           fails to consent, it shall be deemed an election to
                           defer the commencement of payment of any benefit.
                           However, any election to defer the receipt of
                           benefits shall not apply with respect to
                           distributions which are required under Section
                           6.5(d).

                           (2) Notice of the rights specified under this
                           paragraph shall be provided no less than thirty (30)
                           days and no more than ninety (90) days before the
                           date the distribution commences.

                           (3) Written (or such other form as permitted by the
                           Internal Revenue Service) consent of the Participant
                           to the distribution must not be made before the
                           Participant receives the notice and must not be made
                           more than ninety (90) days before the date the
                           distribution commences.

                           (4) No consent shall be valid if a significant
                           detriment is imposed under the Plan on any
                           Participant who does not consent to the distribution.

                                       47

<PAGE>

                           Any such distribution may commence less than thirty
                  (30) days after the notice required under Regulation
                  1.411(a)-11(c) is given, provided that: (1) the Administrator
                  clearly informs the Participant that the Participant has a
                  right to a period of at least thirty (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.

                           (d) Notwithstanding any provision in the Plan to the
                  contrary, the distribution of a Participant's benefits made on
                  or after January 1, 1997 shall be made in accordance with the
                  following requirements and shall otherwise comply with Code
                  Section 401(a)(9) and the Regulations thereunder (including
                  Regulation 1.401(a)(9)-2), the provisions of which are
                  incorporated herein by reference:

                           (1) A Participant's benefits shall be distributed or
                           must begin to be distributed not later than April 1st
                           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, provided, however, that this
                           clause (ii) shall not apply in the case of a
                           Participant who is a "five (5) percent owner" at any
                           time during the Plan Year ending with or within the
                           calendar year in which such owner attains age 70 1/2.
                           Such distributions shall be equal to or greater than
                           any required distribution.

                           Alternatively, distributions to a Participant must
                           begin no later than the applicable April 1st as
                           determined under the preceding paragraph and must be
                           made over a period certain measured by the life
                           expectancy of the Participant (or the life
                           expectancies of the Participant and the Participant's
                           designated Beneficiary) in accordance with
                           Regulations.

                           (2) Distributions to a Participant and the
                           Participant's Beneficiaries shall only be made in
                           accordance with the incidental death benefit
                           requirements of Code Section 401(a)(9)(G) and the
                           Regulations thereunder.

                           With respect to distributions under the Plan made for
                  calendar years beginning on or after January 1, 2001, the Plan
                  will apply the minimum distribution requirements of Code
                  Section 401(a)(9) in accordance with the Regulations under
                  Code Section 401(a)(9) that were proposed on January 17, 2001,
                  notwithstanding any provision of the Plan to the contrary.
                  This amendment shall continue in effect until the end of the
                  last calendar year beginning before the effective date of
                  final Regulations under Code Section 401(a)(9) or such other
                  date specified in guidance published by the Internal Revenue
                  Service.

                           (e) For purposes of this Section, the life expectancy
                  of a Participant and a Participant's spouse shall not be
                  redetermined in accordance with Code Section 401(a)(9)(D).
                  Life expectancy and joint and last survivor expectancy shall
                  be computed using the return multiples in Tables V and VI of
                  Regulation 1.72-9.

                           (f) The restrictions imposed by this Section shall
                  not apply if a Participant has, prior to January 1, 1984, made
                  a written designation to have

                                       48

<PAGE>

                  retirement benefits paid in an alternative method acceptable
                  under Code Section 401(a)(9) as in effect prior to the
                  enactment of the Tax Equity and Fiscal Responsibility Act of
                  1982.

                           (g) All annuity Contracts under this Plan shall be
                  non-transferable when distributed. Furthermore, the terms of
                  any annuity Contract purchased and distributed to a
                  Participant or spouse shall comply with all of the
                  requirements of the Plan.

6.6      DISTRIBUTION OF BENEFITS UPON DEATH

                           (a)(1) The death benefit payable pursuant to
                  Section 6.2 shall be paid to the Participant's Beneficiary
                  within a reasonable time after the Participant's death in one
                  lump-sum payment in cash or in qualifying Employer securities
                  allocated to the Participant's Account as elected by the
                  Participant (or if no election has been made prior to the
                  Participant's death, by the Participant's Beneficiary)
                  subject, however, to the rules specified in Section 6.6(b):

                           (b) Notwithstanding any provision in the Plan to the
                  contrary, distributions upon the death of a Participant shall
                  be made in accordance with the following requirements and
                  shall otherwise comply with Code Section 401(a)(9) and the
                  Regulations thereunder. If it is determined, pursuant to
                  Regulations, that the distribution of a Participant's interest
                  has begun and the Participant dies before the entire interest
                  has been distributed, the remaining portion of such interest
                  shall be distributed at least as rapidly as under the method
                  of distribution selected pursuant to Section 6.5 as of the
                  date of death. If a Participant dies before receiving any
                  distributions of the interest in the Plan or before
                  distributions are deemed to have begun pursuant to
                  Regulations, then the death benefit shall be distributed to
                  the Participant's Beneficiaries by December 31st of the
                  calendar year in which the fifth anniversary of the
                  Participant's date of death occurs.

                           (c) For purposes of this Section, the life expectancy
                  of a Participant and a Participant's spouse shall not be
                  redetermined in accordance with Code Section 401(a)(9)(D).
                  Life expectancy and joint and last survivor expectancy shall
                  be computed using the return multiples in Tables V and VI of
                  Regulation 1.72-9.

                           (d) For purposes of this Section, 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.

                           (e) Subject to the spouse's right of consent afforded
                  under the Plan, the restrictions imposed by this Section shall
                  not apply if a Participant has, prior to January 1, 1984, made
                  a written designation to have death benefits paid in an
                  alternative method acceptable under Code Section 401(a)(9) as
                  in effect prior to the enactment of the Tax Equity and Fiscal
                  Responsibility Act of 1982.

                                       49

<PAGE>

6.7      TIME OF SEGREGATION OR DISTRIBUTION

         Except as limited by Sections 6.5 and 6.6, whenever the Trustee is to
make a distribution or to commence a series of payments the distribution or
series of payments may be made or begun on such date or as soon thereafter as is
practicable. However, unless a Former Participant elects in writing to defer the
receipt of benefits (such election may not result in a death benefit that is
more than incidental), the payment of benefits shall begin not later than the
sixtieth (60th) day after the close of the Plan Year in which the latest of the
following events occurs: (a) the date on which the Participant attains the
earlier of age 65 or the Normal Retirement Age specified herein; (b) the tenth
(10th) anniversary of the year in which the Participant commenced participation
in the Plan; or (c) the date the Participant terminates service with the
Employer.

         Notwithstanding the foregoing, the failure of a Participant to consent
to a distribution that is "immediately distributable" (within the meaning of
Section 6.5), shall be deemed to be an election to defer the commencement of
payment of any benefit sufficient to satisfy this Section.

6.8      DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY

         In the event a distribution is to be made to a minor or incompetent
Beneficiary, then the Administrator may direct that such distribution be paid to
the legal guardian, or if none in the case of a minor Beneficiary, to a parent
of such Beneficiary or a responsible adult with whom the Beneficiary maintains
residence, or to the custodian for such Beneficiary under the Uniform Gift to
Minors Act or 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.

6.9      LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN

         In the event that all, or any portion, of the distribution payable to a
Participant or Beneficiary hereunder shall, at the later of the Participant's
attainment of age 62 or Normal Retirement Age, remain unpaid solely by reason of
the inability of the Administrator, after sending a registered letter, return
receipt requested, to the last known address, and after further diligent effort,
to ascertain the whereabouts of such Participant or Beneficiary, the amount so
distributable shall be treated as a Forfeiture pursuant to the Plan.
Notwithstanding the foregoing, effective January 1, 1997, or if later, the
adoption date of this amendment and restatement, if the value of a Participant's
Vested benefit derived from Employer and Employee contributions does not exceed
$5,000 ($3,500 for Plan Years beginning prior to August 6, 1997), then the
amount distributable may, in the sole discretion of the Administrator, either be
treated as a Forfeiture, or be paid directly to an individual retirement account
described in Code Section 408(a) or an individual retirement annuity described
in Code Section 408(b) at the time it is determined that the whereabouts of the
Participant or the Participant's Beneficiary cannot be ascertained. In the event
a Participant or Beneficiary is located subsequent to the Forfeiture, such
benefit shall be restored, first from Forfeitures, if any, and then from an
additional Employer contribution if necessary. However, regardless of the
preceding, a benefit which is lost by reason of escheat under applicable state
law is not treated as a Forfeiture for purposes of this Section nor as an
impermissable forfeiture under the Code.

                                       50

<PAGE>

6.10     PRE-RETIREMENT DISTRIBUTION

                  (a) A Participant may elect to receive distribution
         attributable to his contributions credited to his Participant's Account
         for a Class as soon as practical after the Class matures. Any election
         for current distribution shall be made as prescribed by the
         Administrator not later than the November 30 preceding the date on
         which such Class matures. A Participant may elect to defer until
         termination of employment distribution of his account for a maturing
         Class which could otherwise be distributed under this Section. Any such
         election for deferred distribution shall be made as prescribed by the
         Administrator not later than the November 30 preceding the date on
         which such Class matures.

                  For purposes of this Section, "Class" shall mean the period
         beginning with the Effective Date of the Plan and ending on the
         following December 31 and each calendar year thereafter shall comprise
         a separate Class until it matures. Effective January 1, 2000, "Class"
         shall mean the period beginning January 1, 2000 and Ending December 30,
         2000. Effective December 31, 2000, "Class" shall mean a twelve month
         period beginning December 31, 2000 and ending on December 30, 2001 and
         each succeeding twelve month period thereafter shall comprise a
         separate Class until it matures. For purposes of identification, each
         non-matured Class shall be designated in terms of the year in which it
         begins. Each Class will mature at the end of the third year following
         the year in which it begins.

                  In-service withdrawals shall be allowed under subparagraphs
         (b) and (c) below once per twelve month period, upon 30 days written
         notice prior to any calendar quarter as follows:

                  (b) A Participant may withdraw all or any portion of his
         Voluntary Contribution Account. A Participant who makes such a
         withdrawal may make no further after-tax voluntary Employee
         contributions until an Entry Date which is at least six months after
         the effective date of the withdrawal.

                  (c) A Participant may withdraw his after-tax voluntary
         Employee contributions and Matching Employer Contributions made on his
         behalf with respect to all Classes for which he previously elected
         deferred distribution under this Section or which are 100% vested
         except that for a Participant who has less than five years of
         participation in the Plan, such withdrawal shall be limited to the
         excess of the sum of all units attributable to his after-tax voluntary
         Employee contributions and Employer contributions over the amount of
         the Employer contributions allocated to him during the two-year period
         immediately preceding the date of withdrawal. A Participant who makes
         such a withdrawal may make no further after-tax voluntary Employee
         contributions until an Entry Date which is at least 12 months after the
         effective date of the withdrawal.

                  (d) Any distribution made pursuant to this Section shall be
         made in a manner consistent with Section 6.5, including, but not
         limited to, all notice and consent requirements of Code Section
         411(a)(11) and the Regulations thereunder.

6.11     ADVANCE DISTRIBUTION FOR HARDSHIP

                  (a) A Participant may withdraw his 100% vested Aggregate
         Account at any time in the event of a financial hardship, and solely to
         the extent required to satisfy the hardship. The amount that may be
         distributed due to a hardship may include the amount necessary to pay

                                       51

<PAGE>

         income taxes or penalties resulting from the distribution. Such
         hardship must be an immediate and heavy financial need of the
         Participant where such Participant lacks other available resources.
         Withdrawal under this Section is deemed to be on account of an
         immediate and heavy financial need of the Participant if the withdrawal
         is for:

                  (i)      medical or medical related expenses;

                  (ii)     substantial cost related to the residential
                           requirements of the Participant and his family;

                  (iii)    family educational expenses in an amount considered
                           by the Administrator to be burdensome in relation to
                           the Participant's other available financial resources
                           for meeting such expenses;

                  (iv)     Expenses in connection with a death in a
                           Participant's immediate family;

                  (v)      extraordinary expenses related to an unanticipated
                           casualty, accident, or other misfortune, or any other
                           similar need approved by the Administrator in it's
                           sole discretion.

                  Any such distribution approved by the Administrator shall be
         made proportionately from the Participant's Voluntary Contribution
         Account and investment earnings thereon to the extent available, and if
         insufficient therefore, out of the Matching Account and investment
         earnings thereon.

                  (b) No such distribution shall be made from the Participant's
         Account until such account has become fully Vested.

                  (c) Any distribution made pursuant to this Section shall be
         made in a manner which is consistent with and satisfies the provisions
         of Section 6.5, including, but not limited to, all notice and consent
         requirements of Code Section 411(a)(11) and the Regulations thereunder.

6.12     QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION

         All rights and benefits, including elections, provided to a Participant
in this Plan shall be subject to the rights afforded to any "alternate payee"
under a "qualified domestic relations order." Furthermore, a distribution to an
"alternate payee" shall be permitted if such distribution is authorized by a
"qualified domestic relations order," even if the affected Participant has not
separated from service and has not reached the "earliest retirement age" under
the Plan. For the purposes of this Section, "alternate payee," "qualified
domestic relations order" and "earliest retirement age" shall have the meaning
set forth under Code Section 414(p).

6.13     DIRECT ROLLOVER

                  (a) Notwithstanding any provision of the Plan to the contrary
         that would otherwise limit a "distributee's" election under this
         Section, a "distributee" may elect, at the time and in the manner
         prescribed by the Administrator, to have any portion of an "eligible
         rollover distribution" that is equal to at least $500 paid directly to
         an "eligible retirement plan" specified by the "distributee" in a
         "direct rollover."

                                       52

<PAGE>

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

                  (1) 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 (or life expectancy) of the
                  "distributee" or the joint lives (or joint life expectancies)
                  of the "distributee" and the "distributee's" designated
                  beneficiary, or for a specified period of ten years or more;
                  any distribution to the extent such distribution is required
                  under Code Section 401(a)(9); the portion of any other
                  distribution that is not includible in gross income
                  (determined without regard to the exclusion for net unrealized
                  appreciation with respect to employer securities); any
                  hardship distribution described in Code Section
                  401(k)(2)(B)(i)(IV) made after December 31, 1999; and any
                  other distribution that is reasonably expected to total less
                  than $200 during a year.

                  (2) 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.

                  (3) 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.

                  (4) A "direct rollover" is a payment by the Plan to the
                  "eligible retirement plan" specified by the "distributee."

                                   ARTICLE VII
                       AMENDMENT, TERMINATION AND MERGERS

7.1      AMENDMENT

                  (a) The Employer shall have the right at any time to amend
         this Plan, subject to the limitations of this Section. However, any
         amendment which affects the rights, duties or responsibilities of the
         Trustee or Administrator may only be made with the Trustee's or
         Administrator's written consent. Any such amendment shall become
         effective as provided therein upon its execution. The Trustee shall not
         be required to execute any such amendment unless the amendment affects
         the duties of the Trustee hereunder.

                  (b) No amendment to the Plan shall be effective if it
         authorizes or permits any part of the Trust Fund (other than such part
         as is required to pay taxes and administration expenses) to be used for
         or diverted to any purpose other than for the exclusive benefit of the

                                       53

<PAGE>

         Participants or their Beneficiaries or estates; or causes any reduction
         in the amount credited to the account of any Participant; or causes or
         permits any portion of the Trust Fund to revert to or become property
         of the Employer.

                  (c) Except as permitted by Regulations (including Regulation
         1.411(d)-4) or other IRS guidance, no Plan amendment or transaction
         having the effect of a Plan amendment (such as a merger, plan transfer
         or similar transaction) shall be effective if it eliminates or reduces
         any "Section 411(d)(6) protected benefit" or adds or modifies
         conditions relating to "Section 411(d)(6) protected benefits" which
         results in a further restriction on such benefits unless such "Section
         411(d)(6) protected benefits" are preserved with respect to benefits
         accrued as of the later of the adoption date or effective date of the
         amendment. "Section 411(d)(6) protected benefits" are benefits
         described in Code Section 411(d)(6)(A), early retirement benefits and
         retirement-type subsidies, and optional forms of benefit. A Plan
         amendment that eliminates or restricts the ability of a Participant to
         receive payment of the Participant's interest in the Plan under a
         particular optional form of benefit will be permissible if the
         amendment satisfies the conditions in (1) and (2) below:

                  (1) The amendment provides a single-sum distribution form that
                  is otherwise identical to the optional form of benefit
                  eliminated or restricted. For purposes of this condition (1),
                  a single-sum distribution form is otherwise identical only if
                  it is identical in all respects to the eliminated or
                  restricted optional form of benefit (or would be identical
                  except that it provides greater rights to the Participant)
                  except with respect to the timing of payments after
                  commencement.

                  (2) The amendment is not effective unless the amendment
                  provides that the amendment shall not apply to any
                  distribution with an annuity starting date earlier than the
                  earlier of: (i) the ninetieth (90th) day after the date the
                  Participant receiving the distribution has been furnished a
                  summary that reflects the amendment and that satisfies the Act
                  requirements at 29 CFR 2520.104b-3 (relating to a summary of
                  material modifications) or (ii) the first day of the second
                  Plan Year following the Plan Year in which the amendment is
                  adopted.

7.2      TERMINATION

                           (a) The Employer shall have the right at any time to
                  terminate the Plan by delivering to the Trustee and
                  Administrator written notice of such termination. Upon any
                  full or partial termination, all amounts credited to the
                  affected Participants' accounts shall become 100% Vested as
                  provided in Section 6.4 and shall not thereafter be subject to
                  forfeiture, and all unallocated amounts, including
                  Forfeitures, shall be allocated to the accounts of all
                  Participants in accordance with the provisions hereof.

                           (b) Upon the full termination of the Plan, the
                  Employer shall direct the distribution of the assets of the
                  Trust Fund to Participants in a manner which is consistent
                  with and satisfies the provisions of Section 6.5.
                  Distributions to a Participant shall be made in cash or in
                  property allocated to the Participant's Aggregate Account or
                  through the purchase of irrevocable nontransferable deferred
                  commitments from an insurer.Except as permitted by
                  Regulations, the

                                       54

<PAGE>

                  termination of the Plan shall not result in the reduction of
                  "Section 411(d)(6) protected benefits" in accordance with
                  Section 7.1(c).

7.3      MERGER, CONSOLIDATION OR TRANSFER OF ASSETS

         This Plan may be merged or consolidated with, or its assets and/or
liabilities may be transferred to any other plan and trust only if the benefits
which would be received by a Participant of this Plan, in the event of a
termination of the Plan immediately after such transfer, merger or
consolidation, are at least equal to the benefits the Participant would have
received if the Plan had terminated immediately before the transfer, merger or
consolidation, and such transfer, merger or consolidation does not otherwise
result in the elimination or reduction of any "Section 411(d)(6) protected
benefits" in accordance with Section 7.1(c).

                                  ARTICLE VIII
                                    TOP HEAVY

8.1      TOP HEAVY PLAN REQUIREMENTS

         For any Top Heavy Plan Year, the Plan shall provide the special vesting
requirements of Code Section 416(b) pursuant to Section 6.4 of the Plan and the
special minimum allocation requirements of Code Section 416(c) pursuant to
Section 4.3 of the Plan.

8.2      DETERMINATION OF TOP HEAVY STATUS

                           (a) This Plan shall be a Top Heavy Plan for any Plan
                  Year in which, as of the Determination Date, (1) the Present
                  Value of Accrued Benefits of Key Employees and (2) the sum of
                  the Aggregate Accounts of Key Employees under this Plan and
                  all plans of an Aggregation Group, exceeds sixty percent (60%)
                  of the Present Value of Accrued Benefits and the Aggregate
                  Accounts of all Key and Non-Key Employees under this Plan and
                  all plans of an Aggregation Group.

                           If any Participant is a Non-Key Employee for any Plan
                  Year, but such Participant was a Key Employee for any prior
                  Plan Year, such Participant's Present Value of Accrued Benefit
                  and/or Aggregate Account balance shall not be taken into
                  account for purposes of determining whether this Plan is a Top
                  Heavy Plan (or whether any Aggregation Group which includes
                  this Plan is a Top Heavy Group). In addition, if a Participant
                  or Former Participant has not performed any services for any
                  Employer maintaining the Plan at any time during the five year
                  period ending on the Determination Date, any accrued benefit
                  for such Participant or Former Participant shall not be taken
                  into account for the purposes of determining whether this Plan
                  is a Top Heavy Plan.

                           (b) Aggregate Account: A Participant's Aggregate
                  Account as of the Determination Date is the sum of:

                           (1) the Participant's Account balance as of the most
                           recent valuation occurring within a twelve (12) month
                           period ending on the Determination Date.

                                       55

<PAGE>

                           (2) an adjustment for any contributions due as of the
                           Determination Date. Such adjustment shall be the
                           amount of any contributions actually made after the
                           Valuation Date but due on or before the Determination
                           Date, except for the first Plan Year when such
                           adjustment shall also reflect the amount of any
                           contributions made after the Determination Date that
                           are allocated as of a date in that first Plan Year.

                           (3) any Plan distributions made within the Plan Year
                           that includes the Determination Date or within the
                           four (4) preceding Plan Years. However, in the case
                           of distributions made after the Valuation Date and
                           prior to the Determination Date, such distributions
                           are not included as distributions for top heavy
                           purposes to the extent that such distributions are
                           already included in the Participant's Aggregate
                           Account balance as of the Valuation Date.
                           Notwithstanding anything herein to the contrary, all
                           distributions, including distributions made prior to
                           January 1, 1984, and distributions under a terminated
                           plan which if it had not been terminated would have
                           been required to be included in an Aggregation Group,
                           will be counted. Further, distributions from the Plan
                           (including the cash value of life insurance policies)
                           of a Participant's account balance because of death
                           shall be treated as a distribution for the purposes
                           of this paragraph.

                           (4) any Employee contributions, whether voluntary or
                           mandatory. However, amounts attributable to tax
                           deductible qualified voluntary employee contributions
                           shall not be considered to be a part of the
                           Participant's Aggregate Account balance.

                           (5) with respect to unrelated rollovers and
                           plan-to-plan transfers (ones which are both initiated
                           by the Employee and made from a plan maintained by
                           one employer to a plan maintained by another
                           employer), if this Plan provides the rollovers or
                           plan-to-plan transfers, it shall always consider such
                           rollovers or plan-to-plan transfers as a distribution
                           for the purposes of this Section. If this Plan is the
                           plan accepting such rollovers or plan-to-plan
                           transfers, it shall not consider such rollovers or
                           plan-to-plan transfers as part of the Participant's
                           Aggregate Account balance. However, rollovers or
                           plan-to-plan transfers accepted prior to January 1,
                           1984 shall be considered as part of the Participant's
                           Aggregate Account balance.

                           (6) with respect to related rollovers and
                           plan-to-plan transfers (ones either not initiated by
                           the Employee or made to a plan maintained by the same
                           employer), if this Plan provides the rollover or
                           plan-to-plan transfer, it shall not be counted as a
                           distribution for purposes of this Section. If this
                           Plan is the plan accepting such rollover or
                           plan-to-plan transfer, it shall consider such
                           rollover or plan-to-plan transfer as part of the
                           Participant's Aggregate Account balance, irrespective
                           of the date on which such rollover or plan-to-plan
                           transfer is accepted.

                           (7) For the purposes of determining whether two
                           employers are to be treated as the same employer in
                           (5) and (6) above, all employers

                                       56

<PAGE>

                           aggregated under Code Section 414(b), (c), (m) and
                           (o) are treated as the same employer.

                           (c) "Aggregation Group" means either a Required
                  Aggregation Group or a Permissive Aggregation Group as
                  hereinafter determined.

                           (1) Required Aggregation Group: In determining a
                           Required Aggregation Group hereunder, each plan of
                           the Employer in which a Key Employee is a participant
                           in the Plan Year containing the Determination Date or
                           any of the four preceding Plan Years, and each other
                           plan of the Employer which enables any plan in which
                           a Key Employee participates to meet the requirements
                           of Code Sections 401(a)(4) or 410, will be required
                           to be aggregated. Such group shall be known as a
                           Required Aggregation Group.

                           In the case of a Required Aggregation Group, each
                           plan in the group will be considered a Top Heavy Plan
                           if the Required Aggregation Group is a Top Heavy
                           Group. No plan in the Required Aggregation Group will
                           be considered a Top Heavy Plan if the Required
                           Aggregation Group is not a Top Heavy Group.

                           (2) Permissive Aggregation Group: The Employer may
                           also include any other plan not required to be
                           included in the Required Aggregation Group, provided
                           the resulting group, taken as a whole, would continue
                           to satisfy the provisions of Code Sections 401(a)(4)
                           and 410. Such group shall be known as a Permissive
                           Aggregation Group.

                           In the case of a Permissive Aggregation Group, only a
                           plan that is part of the Required Aggregation Group
                           will be considered a Top Heavy Plan if the Permissive
                           Aggregation Group is a Top Heavy Group. No plan in
                           the Permissive Aggregation Group will be considered a
                           Top Heavy Plan if the Permissive Aggregation Group is
                           not a Top Heavy Group.

                           (3) Only those plans of the Employer in which the
                           Determination Dates fall within the same calendar
                           year shall be aggregated in order to determine
                           whether such plans are Top Heavy Plans.

                           (4) An Aggregation Group shall include any terminated
                           plan of the Employer if it was maintained within the
                           last five (5) years ending on the Determination Date.

                           (d) "Determination Date" means (a) the last day of
                  the preceding Plan Year, or (b) in the case of the first Plan
                  Year, the last day of such Plan Year.

                           (e) Present Value of Accrued Benefit: In the case of
                  a defined benefit plan, the Present Value of Accrued Benefit
                  for a Participant other than a Key Employee, shall be as
                  determined using the single accrual method used for all plans
                  of the Employer and Affiliated Employers, or if no such single
                  method exists, using a method which results in benefits
                  accruing not more rapidly than the

                                       57

<PAGE>

                  slowest accrual rate permitted under Code Section
                  411(b)(1)(C). The determination of the Present Value of
                  Accrued Benefit shall 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.

                           (f) "Top Heavy Group" means an Aggregation Group in
                  which, as of the Determination Date, the sum of:

                           (1) the Present Value of Accrued Benefits of Key
                           Employees under all defined benefit plans included in
                           the group, and

                           (2) the Aggregate Accounts of Key Employees under all
                           defined contribution plans included in the group,
                           exceeds sixty percent (60%) of a similar sum
                           determined for all Participants.

                                   ARTICLE IX
                                  MISCELLANEOUS

9.1      PARTICIPANT'S RIGHTS

         This Plan shall not be deemed to constitute a contract between the
Employer and any Participant or to be a consideration or an inducement for the
employment of any Participant or Employee. Nothing contained in this Plan shall
be deemed to give any Participant or Employee the right to be retained in the
service of the Employer or to interfere with the right of the Employer to
discharge any Participant or Employee at any time regardless of the effect which
such discharge shall have upon the Employee as a Participant of this Plan.

9.2      ALIENATION

                           (a) Subject to the exceptions provided below, and as
                  otherwise permitted by the Code and the Act, no benefit which
                  shall be payable out of the Trust Fund to any person
                  (including a Participant or the Participant's Beneficiary)
                  shall be subject in any manner to anticipation, alienation,
                  sale, transfer, assignment, pledge, encumbrance, or charge,
                  and any attempt to anticipate, alienate, sell, transfer,
                  assign, pledge, encumber, or charge the same shall be void;
                  and no such benefit shall in any manner be liable for, or
                  subject to, the debts, contracts, liabilities, engagements, or
                  torts of any such person, nor shall it be subject to
                  attachment or legal process for or against such person, and
                  the same shall not be recognized by the Trustee, except to
                  such extent as may be required by law.

                           (b) Subsection (a) shall not apply to a "qualified
                  domestic relations order" defined in Code Section 414(p), and
                  those other domestic relations orders permitted to be so
                  treated by the Administrator under the provisions of the
                  Retirement Equity Act of 1984. The Administrator shall
                  establish a written procedure to determine the qualified
                  status of domestic relations orders and to administer
                  distributions under such qualified orders. Further, to the
                  extent

                                       58

<PAGE>

                  provided under a "qualified domestic relations order," a
                  former spouse of a Participant shall be treated as the spouse
                  or surviving spouse for all purposes under the Plan.

                           (c) Subsection (a) shall not apply to an offset to a
                  Participant's accrued benefit against an amount that the
                  Participant is ordered or required to pay the Plan with
                  respect to a judgment, order, or decree issued, or a
                  settlement entered into, on or after August 5, 1997, in
                  accordance with Code Sections 401(a)(13)(C) and (D).

9.3      CONSTRUCTION OF PLAN

         This Plan shall be construed and enforced according to the Code, the
Act and the laws of the State of New Jersey, other than its laws respecting
choice of law, to the extent not pre-empted by the Act.

9.4      GENDER AND NUMBER

         Wherever any words are used herein in the masculine, feminine or neuter
gender, they shall be construed as though they were also used in another gender
in all cases where they would so apply, and whenever any words are used herein
in the singular or plural form, they shall be construed as though they were also
used in the other form in all cases where they would so apply.

9.5      LEGAL ACTION

         In the event any claim, suit, or proceeding is brought regarding the
Trust and/or Plan established hereunder to which the Trustee, the Employer or
the Administrator may be a party, and such claim, suit, or proceeding is
resolved in favor of the Trustee, the Employer or the Administrator, they shall
be entitled to be reimbursed from the Trust Fund for any and all costs,
attorney's fees, and other expenses pertaining thereto incurred by them for
which they shall have become liable.

9.6      PROHIBITION AGAINST DIVERSION OF FUNDS

                           (a) Except as provided below and otherwise
                  specifically permitted by law, it shall be impossible by
                  operation of the Plan or of the Trust, by termination of
                  either, by power of revocation or amendment, by the happening
                  of any contingency, by collateral arrangement or by any other
                  means, for any part of the corpus or income of any Trust Fund
                  maintained pursuant to the Plan or any funds contributed
                  thereto to be used for, or diverted to, purposes other than
                  the exclusive benefit of Participants, Former Participants, or
                  their Beneficiaries.

                           (b) In the event the Employer shall make an excessive
                  contribution under a mistake of fact pursuant to Act Section
                  403(c)(2)(A), the Employer may demand repayment of such
                  excessive contribution at any time within one (1) year
                  following the time of payment and the Trustees shall return
                  such amount to the Employer within the one (1) year period.
                  Earnings of the Plan attributable to the

                                       59

<PAGE>

                  contributions may not be returned to the Employer but any
                  losses attributable thereto must reduce the amount so
                  returned.

                           (c) Except for Sections 3.5, 3.6, and 4.1(b), any
                  contribution by the Employer to the Trust Fund is conditioned
                  upon the deductibility of the contribution by the Employer
                  under the Code and, to the extent any such deduction is
                  disallowed, the Employer may, within one (1) year following
                  the final determination of the disallowance, whether by
                  agreement with the Internal Revenue Service or by final
                  decision of a competent jurisdiction, demand repayment of such
                  disallowed contribution and the Trustee shall return such
                  contribution within one (1) year following the disallowance.
                  Earnings of the Plan attributable to the contribution may not
                  be returned to the Employer, but any losses attributable
                  thereto must reduce the amount so returned.

9.7      EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE

         The Employer, Administrator and Trustee, and their successors, shall
not be responsible for the validity of any Contract issued hereunder or for the
failure on the part of the insurer to make payments provided by any such
Contract, or for the action of any person which may delay payment or render a
Contract null and void or unenforceable in whole or in part.

9.8      INSURER'S PROTECTIVE CLAUSE

         Except as otherwise agreed upon in writing between the Employer and the
insurer, an insurer which issues any Contracts hereunder shall not have any
responsibility for the validity of this Plan or for the tax or legal aspects of
this Plan. The insurer shall be protected and held harmless in acting in
accordance with any written direction of the Trustee, and shall have no duty to
see to the application of any funds paid to the Trustee, nor be required to
question any actions directed by the Trustee. Regardless of any provision of
this Plan, the insurer shall not be required to take or permit any action or
allow any benefit or privilege contrary to the terms of any Contract which it
issues hereunder, or the rules of the insurer.

9.9      RECEIPT AND RELEASE FOR PAYMENTS

         Any payment to any Participant, the Participant's legal representative,
Beneficiary, or to any guardian or committee appointed for such Participant or
Beneficiary in accordance with the provisions of the Plan, shall, to the extent
thereof, be in full satisfaction of all claims hereunder against the Trustee and
the Employer, either of whom may require such Participant, legal representative,
Beneficiary, guardian or committee, as a condition precedent to such payment, to
execute a receipt and release thereof in such form as shall be determined by the
Trustee or Employer.

9.10     ACTION BY THE EMPLOYER

         Whenever the Employer under the terms of the Plan is permitted or
required to do or perform any act or matter or thing, it shall be done and
performed by a person duly authorized by its legally constituted authority.

                                       60

<PAGE>

9.11     NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY

         The "named Fiduciaries" of this Plan are (1) the Employer, (2) the
Administrator, (3) the Trustee and (4) any Investment Manager appointed
hereunder. The named Fiduciaries shall have only those specific powers, duties,
responsibilities, and obligations as are specifically given them under the Plan
including, but not limited to, any agreement allocating or delegating their
responsibilities, the terms of which are incorporated herein by reference. In
general, the Employer shall have the sole responsibility for making the
contributions provided for under Section 4.1; and shall have the authority to
appoint and remove the Trustee and the Administrator; to formulate the Plan's
"funding policy and method"; and to amend or terminate, in whole or in part, the
Plan. The Administrator shall have the sole responsibility for the
administration of the Plan, including, but not limited to, the items specified
in Article II of the Plan, as the same may be allocated or delegated thereunder.
The Administrator shall act as the named Fiduciary responsible for communicating
with the Participant according to the Participant Direction Procedures. The
Trustee shall have the sole responsibility of management of the assets held
under the Trust, except to the extent directed pursuant to Article II or with
respect to those assets, the management of which has been assigned to an
Investment Manager, who shall be solely responsible for the management of the
assets assigned to it, all as specifically provided in the Plan. Each named
Fiduciary warrants that any directions given, information furnished, or action
taken by it shall be in accordance with the provisions of the Plan, authorizing
or providing for such direction, information or action. Furthermore, each named
Fiduciary may rely upon any such direction, information or action of another
named Fiduciary as being proper under the Plan, and is not required under the
Plan to inquire into the propriety of any such direction, information or action.
It is intended under the Plan that each named Fiduciary shall be responsible for
the proper exercise of its own powers, duties, responsibilities and obligations
under the Plan as specified or allocated herein. No named Fiduciary shall
guarantee the Trust Fund in any manner against investment loss or depreciation
in asset value. Any person or group may serve in more than one Fiduciary
capacity.

9.12     HEADINGS

         The headings and subheadings of this Plan have been inserted for
convenience of reference and are to be ignored in any construction of the
provisions hereof.

9.13     APPROVAL BY INTERNAL REVENUE SERVICE

         Notwithstanding anything herein to the contrary, if, pursuant to an
application for qualification filed by or on behalf of the Plan 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 that the Secretary of the Treasury may
prescribe, the Commissioner of Internal Revenue Service or the Commissioner's
delegate should determine that the Plan does not initially qualify as a
tax-exempt plan under Code Sections 401 and 501, and such determination is not
contested, or if contested, is finally upheld, then if the Plan is a new plan,
it shall be void ab initio and all amounts contributed to the Plan by the
Employer, less expenses paid, shall be returned within one (1) year and the Plan
shall terminate, and the Trustee shall be discharged from all further
obligations. If the disqualification relates to an amended plan, then the Plan
shall operate as if it had not been amended.

                                       61

<PAGE>

9.14     UNIFORMITY

         All provisions of this Plan shall be interpreted and applied in a
uniform, nondiscriminatory manner. In the event of any conflict between the
terms of this Plan and any Contract purchased hereunder, the Plan provisions
shall control.

                                       62

<PAGE>

         IN WITNESS WHEREOF, and as evidence of the adoption of the foregoing,
the Employer has caused this instrument to be executed by a duly authorized
officer as of this day of            , 200 .

                                        THE PROVIDENT BANK

                                        By:
                                            ----------------------------------

                                            ----------------------------------
                                            Title

                                       63

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]