Document:

Exhibit 10.1 Amended and Restated 401(k) Savings Plan of Frozen Food Express
      Indsutries, Inc.

    EXHIBIT 10.1

     

    

      

       

      

       

      

       

      FROZEN
        FOOD EXPRESS INDUSTRIES, INC.

       

      401(k)
        SAVINGS PLAN

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      
        
          
            

             

            

             

             

             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Article
        OnePURPOSE

       

      
        	 	
                Section
                  1.1

              	
                Introduction.

              	 

      

       

      
        	 	
                Section
                  1.2

              	
                Purpose.

              	 

      

       

      
        	 	
                Section
                  1.3

              	
                Limitation.

              	 

      

       

      Article
        TwoDEFINITIONS

       

      
        	 	
                Section
                  2.1

              	
                Accounting
                  Date.

              	 

      

       

      
        	 	
                Section
                  2.2

              	
                Accounts.

              	 

      

       

      
        	 	
                Section
                  2.3

              	
                Administrator.

              	 

      

       

      
        	 	
                Section
                  2.4

              	
                Affiliate.

              	 

      

       

      
        	 	
                Section
                  2.5

              	
                Alternate
                  Payee.

              	 

      

       

      
        	 	
                Section
                  2.6

              	
                Beneficiary.

              	 

      

       

      
        	 	
                Section
                  2.7

              	
                Break
                  in Service.

              	 

      

       

      
        	 	
                Section
                  2.8

              	
                Code.

              	 

      

       

      
        	 	
                Section
                  2.9

              	
                Committee.

              	 

      

       

      
        	 	
                Section
                  2.10

              	
                Company.

              	 

      

       

      
        	 	
                Section
                  2.11

              	
                Company
                  Stock.

              	 

      

       

      
        	 	
                Section
                  2.12

              	
                Compensation.

              	 

      

       

      
        	 	
                Section
                  2.13

              	
                Conwell
                  ESOP

              	 

      

       

      
        	 	
                Section
                  2.14

              	
                Current
                  Market Value.

              	 

      

       

      
        	 	
                Section
                  2.15

              	
                Disability.

              	 

      

       

      
        	 	
                Section
                  2.16

              	
                Discretionary
                  Employer Contribution.

              	 

      

       

      
        	 	
                Section
                  2.17

              	
                Discretionary
                  Employer Contribution Account.

              	 

      

       

      
        	 	
                Section
                  2.18

              	
                Early
                  Retirement.

              	 

      

       

      
        	 	
                Section
                  2.19

              	
                Early
                  Retirement Date.

              	 

      

       

      
        	 	
                Section
                  2.20

              	
                Effective
                  Date.

              	 

      

       

      
        	 	
                Section
                  2.21

              	
                Employee.

              	 

      

       

      
        	 	
                Section
                  2.22

              	
                Employer
                  Contributions.

              	 

      

       

      
        	 	
                Section
                  2.23

              	
                Employer.

              	 

      

       

      
        	 	
                Section
                  2.24

              	
                Employment
                  Commencement Date.

              	 

      

       

      
        	 	
                Section
                  2.25

              	
                Entrance
                  Date.

              	 

      

       

      
        	 	
                Section
                  2.26

              	
                ERISA.

              	 

      

       

      
        	 	
                Section
                  2.27

              	
                ESOP
                  Accounts.

              	 

      

       

      
        	 	
                Section
                  2.28

              	
                ESOP
                  Rollover Account.

              	 

      

       

      
        	 	
                Section
                  2.29

              	
                ESOP
                  Transfer Account.

              	 

      

       

      
        	 	
                Section
                  2.30

              	
                FFE
                  Transportation Services ESOP

              	 

      

       

      
        	 	
                Section
                  2.31

              	
                Former
                  Participant.

              	 

      

       

      
        	 	
                Section
                  2.32

              	
                Highly
                  Compensated Employee.

              	 

      

       

      
        	 	
                Section
                  2.33

              	
                Hours
                  of Service.

              	 

      

       

      
        	 	
                Section
                  2.34

              	
                Matching
                  Employer Contribution.

              	 

      

       

      
        	 	
                Section
                  2.35

              	
                Matching
                  Employer Contribution Account.

              	 

      

       

      
        	 	
                Section
                  2.36

              	
                Named
                  Fiduciary.

              	 

      

       

      
        	 	
                Section
                  2.37

              	
                Nonforfeitable.

              	 

      

       

      
        	 	
                Section
                  2.38

              	
                Non-Highly
                  Compensated Employee.

              	 

      

       

      
        	 	
                Section
                  2.39

              	
                Normal
                  Retirement Age.

              	 

      

       

      
        	 	
                Section
                  2.40

              	
                Normal
                  Retirement Date.

              	 

      

       

      
        	 	
                Section
                  2.41

              	
                Owner-Employee.

              	 

      

       

      
        	 	
                Section
                  2.42

              	
                Participant.

              	 

      

       

      
        	 	
                Section
                  2.43

              	
                Participating
                  Employer.

              	 

      

       

      
        	 	
                Section
                  2.44

              	
                Participation.

              	 

      

       

      
        	 	
                Section
                  2.45

              	
                Plan.

              	 

      

       

      
        	 	
                Section
                  2.46

              	
                Plan
                  Sponsor.

              	 

      

       

      
        	 	
                Section
                  2.47

              	
                Plan
                  Year.

              	 

      

       

      
        	 	
                Section
                  2.48

              	
                Prior
                  Plan.

              	 

      

       

      
        	 	
                Section
                  2.49

              	
                Re-Employment
                  Commencement Date.

              	 

      

       

      
        	 	
                Section
                  2.50

              	
                Related
                  Employer.

              	 

      

       

      
        	 	
                Section
                  2.51

              	
                Retirement.

              	 

      

       

      
        	 	
                Section
                  2.52

              	
                Rollover
                  Account.

              	 

      

       

      
        	 	
                Section
                  2.53

              	
                Roth
                  Savings Contributions.

              	 

      

       

      
        	 	
                Section
                  2.54

              	
                Savings
                  Account.

              	 

      

       

      
        	 	
                Section
                  2.55

              	
                Savings
                  Contributions.

              	 

      

       

      
        	 	
                Section
                  2.56

              	
                Self-Employed
                  Individual.

              	 

      

       

      
        	 	
                Section
                  2.57

              	
                Separation
                  from Service.

              	 

      

       

      
        	 	
                Section
                  2.58

              	
                Service.

              	 

      

       

      
        	 	
                Section
                  2.59

              	
                Shareholder-Employee.

              	 

      

       

      
        	 	
                Section
                  2.60

              	
                Separated
                  from Service.

              	 

      

       

      
        	 	
                Section
                  2.61

              	
                Special
                  Employer Contributions.

              	 

      

       

      
        	 	
                Section
                  2.62

              	
                Spouse.

              	 

      

       

      
        	 	
                Section
                  2.63

              	
                Trust.

              	 

      

       

      
        	 	
                Section
                  2.64

              	
                Trust
                  Agreement.

              	 

      

       

      
        	 	
                Section
                  2.65

              	
                Trust
                  Fund.

              	 

      

       

      
        	 	
                Section
                  2.66

              	
                Trustee.

              	 

      

       

      
        	 	
                Section
                  2.67

              	
                Valuation
                  Date.

              	 

      

       

      
        	 	
                Section
                  2.68

              	
                Vested
                  Percentage.

              	 

      

       

      
        	 	
                Section
                  2.69

              	
                W
                  & B Plan Rollover Account.

              	 

      

       

      
        	 	
                Section
                  2.70

              	
                Year
                  of Service.

              	 

      

       

      Article
        ThreeELIGIBILITY
        AND PARTICIPATION

       

      
        	 	
                Section
                  3.1

              	
                Eligibility.

              	 

      

       

      
        	 	
                Section
                  3.2

              	
                Eligibility
                  Following Separation From Service.

              	 

      

       

      
        	 	
                Section
                  3.3

              	
                Participation
                  During Leave of Absence.

              	 

      

       

      
        	 	
                Section
                  3.4

              	
                Notification
                  of Eligibility and Commencement of Participation.

              	 

      

       

      Article
        FourCONTRIBUTIONS

       

      
        	 	
                Section
                  4.1

              	
                Savings
                  Contributions.

              	 

      

       

      
        	 	
                Section
                  4.2

              	
                Roth
                  Contributions.

              	 

      

       

      
        	 	
                Section
                  4.3

              	
                Employer
                  Contributions.

              	 

      

       

      
        	 	
                Section
                  4.4

              	
                Discretionary
                  Employer Contributions.

              	 

      

       

      
        	 	
                Section
                  4.5

              	
                Payment
                  of Employer Contributions.

              	 

      

       

      
        	 	
                Section
                  4.6

              	
                Rollover
                  Contributions

              	 

      

       

      
        	 	
                Section
                  4.7

              	
                Special
                  Rules under USERRA.

              	 

      

       

      
        	 	
                Section
                  4.8

              	
                Special
                  Rules Regarding Qualified Hurricane
                  Distributions.

              	 

      

       

      Article
        FiveALLOCATIONS

       

      
        	 	
                Section
                  5.1

              	
                Accounts.

              	 

      

       

      
        	 	
                Section
                  5.2

              	
                Allocation
                  of Income and Expense.

              	 

      

       

      
        	 	
                Section
                  5.3

              	
                Allocation
                  of Savings Contributions.

              	 

      

       

      
        	 	
                Section
                  5.4

              	
                Allocation
                  of Employer Contributions.

              	 

      

       

      
        	 	
                Section
                  5.5

              	
                Forfeitures.

              	 

      

       

      
        	 	
                Section
                  5.6

              	
                Maximum
                  Additions.

              	 

      

       

      
        	 	
                Section
                  5.7

              	
                Notification
                  to Participants.

              	 

      

       

      Article
        SixVESTING

       

      
        	 	
                Section
                  6.1

              	
                Retirement,
                  Death, or Disability.

              	 

      

       

      
        	 	
                Section
                  6.2

              	
                Separated
                  From Service

              	 

      

       

      
        	 	
                Section
                  6.3

              	
                Computation
                  of Years of Service for Vesting.

              	 

      

       

      
        	 	
                Section
                  6.4

              	
                Determination
                  of Amount.

              	 

      

       

      Article
        SevenINVESTMENT
        OF TRUST ASSETS

       

      
        	 	
                Section
                  7.1

              	
                Appointment
                  of Trustee.

              	 

      

       

      
        	 	
                Section
                  7.2

              	
                Investment
                  of Accounts.

              	 

      

       

      
        	 	
                Section
                  7.3

              	
                Income
                  and Expenses.

              	 

      

       

      
        	 	
                Section
                  7.4

              	
                Company
                  Stock.

              	 

      

       

      
        	 	
                Section
                  7.5

              	
                Exclusive
                  Benefit.

              	 

      

       

      
        	 	
                Section
                  7.6

              	
                Valuation.

              	 

      

       

      Article
        EightBENEFICIARY

       

      
        	 	
                Section
                  8.1

              	
                Designation
                  of Beneficiary.

              	 

      

       

      
        	 	
                Section
                  8.2

              	
                No
                  Beneficiary.

              	 

      

       

      
        	 	
                Section
                  8.3

              	
                Mandatory
                  Distribution of Death Benefits.

              	 

      

       

      
        	 	
                Section
                  8.4

              	
                Definitions.

              	 

      

       

      Article
        NineNOTICES

       

      
        	 	
                Section
                  9.1

              	
                Notice
                  to Trustee.

              	 

      

       

      
        	 	
                Section
                  9.2

              	
                Subsequent
                  Notices.

              	 

      

       

      
        	 	
                Section
                  9.3

              	
                Copy
                  to Participant.

              	 

      

       

      
        	 	
                Section
                  9.4

              	
                Reliance
                  Upon Notice.

              	 

      

       

      Article
        TenIN-SERVICE
        WITHDRAWALS AND LOANS TO PARTICIPANTS

       

      
        	 	
                Section
                  10.1

              	
                Withdrawals
                  from Accounts.

              	 

      

       

      
        	 	
                Section
                  10.2

              	
                Loans
                  to Participants.

              	 

      

       

      Article
        ElevenMETHODS
        OF PAYMENT

       

      
        	 	
                Section
                  11.1

              	
                Participant
                  Election.

              	 

      

       

      
        	 	
                Section
                  11.2

              	
                Joint
                  and Survivor Annuity.

              	 

      

       

      
        	 	
                Section
                  11.3

              	
                Joint
                  and Survivor Annuity Requirements.

              	 

      

       

      
        	 	
                Section
                  11.4

              	
                Notice
                  and Explanation to Participants.

              	 

      

       

      
        	 	
                Section
                  11.5

              	
                Direct
                  Rollover Optional Form of Benefit.

              	 

      

       

      
        	 	
                Section
                  11.6

              	
                Election
                  to Defer Receipt of Benefits.

              	 

      

       

      
        	 	
                Section
                  11.7

              	
                Election
                  of Form of Payment of Benefits.

              	 

      

       

      
        	 	
                Section
                  11.8

              	
                Limit
                  on Commencement of Distribution.

              	 

      

       

      
        	 	
                Section
                  11.9

              	
                Minority
                  or Disability.

              	 

      

       

      
        	 	
                Section
                  11.10

              	
                Unclaimed
                  Benefit.

              	 

      

       

      Article
        TwelveTOP
        HEAVY PROVISIONS

       

      
        	 	
                Section
                  12.1

              	
                Application.

              	 

      

       

      
        	 	
                Section
                  12.2

              	
                Top-Heavy
                  Plan Status/Super Top-Heavy Plan Status.

              	 

      

       

      
        	 	
                Section
                  12.3

              	
                Top-Heavy
                  Minimum Allocation.

              	 

      

       

      
        	 	
                Section
                  12.4

              	
                Amendments.

              	 

      

       

      Article
        ThirteenREPURCHASE
        OF COMPANY STOCK; NON-TERMINABLE PROTECTIONS AND RIGHTS

       

      
        	 	
                Section
                  13.1

              	
                Employee
                  Stock Ownership Plan.

              	 

      

       

      
        	 	
                Section
                  13.2

              	
                Put
                  Option.

              	 

      

       

      
        	 	
                Section
                  13.3

              	
                Payment
                  of Purchase Price.

              	 

      

       

      
        	 	
                Section
                  13.4

              	
                Notice.

              	 

      

       

      
        	 	
                Section
                  13.5

              	
                Non-terminable
                  Protections and Rights.

              	 

      

       

      
        	 	
                Section
                  13.6

              	
                Investment
                  in Company Stock.

              	 

      

       

      
        	 	
                Section
                  13.7

              	
                Diversification
                  of Investment.

              	 

      

       

      Article
        FourteenADOPTION
        BY OTHER ORGANIZATIONS

       

      
        	 	
                Section
                  14.1

              	
                Procedure
                  for Adoption.

              	 

      

       

      Article
        FifteenAMENDMENT
        AND TERMINATION OF PLAN

       

      
        	 	
                Section
                  15.1

              	
                Amendment
                  of the Plan.

              	 

      

       

      
        	 	
                Section
                  15.2

              	
                Right
                  to Terminate.

              	 

      

       

      
        	 	
                Section
                  15.3

              	
                Consolidation
                  or Merger.

              	 

      

       

      
        	 	
                Section
                  15.4

              	
                Liquidation
                  of Trust Fund Upon Termination.

              	 

      

       

      
        	 	
                Section
                  15.5

              	
                Permanent
                  Discontinuance of Contributions.

              	 

      

       

      
        	 	
                Section
                  15.6

              	
                Consolidation
                  or Merger of Plan.

              	 

      

       

      Article
        SixteenGENERAL
        PROVISIONS

       

      
        	 	
                Section
                  16.1

              	
                Non-Guarantee
                  of Employment.

              	 

      

       

      
        	 	
                Section
                  16.2

              	
                Manner
                  of Payment.

              	 

      

       

      
        	 	
                Section
                  16.3

              	
                Nonalienation
                  of Benefits.

              	 

      

       

      
        	 	
                Section
                  16.4

              	
                Titles
                  for Convenience Only.

              	 

      

       

      
        	 	
                Section
                  16.5

              	
                Governing
                  Law.

              	 

      

       

      
        	 	
                Section
                  16.6

              	
                Contributions
                  Contingent Upon Approval.

              	 

      

       

      
        	 	
                Section
                  16.7

              	
                Payment
                  of Expenses.

              	 

      

       

      
        	 	
                Section
                  16.8

              	
                Rights
                  to Trust Assets.

              	 

      

       

      
        	 	
                Section
                  16.9

              	
                Disclaimer
                  of Liability.

              	 

      

       

      
        	 	
                Section
                  16.10

              	
                Persons
                  May Serve in More than One Capacity.

              	 

      

       

      
        	 	
                Section
                  16.11

              	
                Construction.

              	 

      

       

      
        	 	
                Section
                  16.12

              	
                Counterparts.

              	 

      

       

      
        	 	
                Section
                  16.13

              	
                No
                  Involuntary Retirement Because of Age.

              	 

      

       

      
        	 	
                Section
                  16.14

              	
                Mistake
                  of Fact.

              	 

      

       

      
        	 	
                Section
                  16.15

              	
                Disallowance
                  of Deduction.

              	 

      

       

      Article
        SeventeenPLAN
        ADMINISTRATION

       

      
        	 	
                Section
                  17.1

              	
                Committee.

              	 

      

       

      
        	 	
                Section
                  17.2

              	
                Claims
                  Procedure.

              	 

      

       

      
        	 	
                Section
                  17.3

              	
                Powers
                  and Duties of the Committee.

              	 

      

       

      
        	 	
                Section
                  17.4

              	
                Limitation
                  on Powers.

              	 

      

       

      
        	 	
                Section
                  17.5

              	
                Limitation
                  on Duties.

              	 

      

       

      
        	 	
                Section
                  17.6

              	
                Rules
                  and Decisions.

              	 

      

       

      
        	 	
                Section
                  17.7

              	
                Committee
                  Procedures.

              	 

      

       

      
        	 	
                Section
                  17.8

              	
                Liability
                  of Committee.

              	 

      

       

      
        	 	
                Section
                  17.9

              	
                Bonding.

              	 

      

       

      

       

      FROZEN
        FOOD EXPRESS INDUSTRIES, INC.

       

      401(k)
        SAVINGS PLAN

       

      ARTICLE
        ONE  

       

       

      PURPOSE

       

      Section
        1.1  Introduction. 

       

      Frozen
        Food Express Industries, Inc., a Texas corporation (hereinafter referred
        to as
        "Employer"), previously established the Frozen Food Express Industries, Inc.
        401(k) Savings Plan, most recently restated effective January 1, 2007 (the
        “Prior Plan”), as a 401(k) profit sharing plan and employee stock ownership plan
        for the exclusive benefit of its eligible Employees and their Beneficiaries.
        The
        Plan is hereby restated for the purpose of clarifying the Plan's provisions
        affecting diversification of ESOP Accounts in the Plan.

       

      As
        restated, the Plan is intended to be qualified under Sections 401(a), 401(k),
        and 4975(e)(7) of the Code and Section 407(d)(6) of the Employee Retirement
        Income Security Act ("ERISA") and applicable regulations thereunder. The
        restated Plan is generally effective January 1, 2007, except as otherwise
        provided herein. The Plan consists of the Plan document herein and the separate
        Trust Agreement.

       

      Section
        1.2  Purpose. 

       

      The
        purpose of the Plan is to reward eligible Employees for their loyal and faithful
        service, to share with such Employees a portion of the Employers' profits,
        to
        help such Employees accumulate funds for their retirement, and to provide
        funds
        for such Employees or their Beneficiaries in the event of death or disability.
        The benefits provided by the Plan will be paid from the Trust and will be
        in
        addition to the benefits eligible Employees are entitled to receive under
        any
        other programs of the Employer and/or from the federal Social Security Act.
        The
        Plan and the Trust are established and shall be maintained for the exclusive
        benefit of the eligible Employees and their Beneficiaries.

       

      Section
        1.3  Limitation. 

       

       

      The
        provisions of this Plan, as amended and restated, shall apply solely to an
        Employee who terminates employment with an Employer on or after the restated
        Effective Date of this Plan. If an Employee terminates employment with an
        Employer prior to the restated Effective Date, that Employee shall be entitled
        to benefits under the terms of the Prior Plan, the FFE Transportation Services
        ESOP, or the Conwell ESOP, as applicable.

       

       

      

       

       

      *
        * * * *
        * *

       

      ARTICLE
        TWO   

       

      

       

      DEFINITIONS

       

      When
        used
        herein, the following words and phrases shall have the respective meanings
        set
        forth below, unless the context clearly indicates otherwise:

       

      Section
        2.1  Accounting
        Date. 

       

      Accounting
        Date means the last business day of each calendar quarter of any Plan
        Year.

       

      Section
        2.2  Accounts. 

       

      Accounts
        means the value of all of the accounts maintained by the Committee for a
        particular Participant, including his Discretionary Employer Contribution
        Account, Matching Employer Contribution Account, Rollover Account, Savings
        Account, Roth Savings Account, W & B Plan Rollover Account, ESOP Transfer
        Account, and ESOP Rollover Account.

       

      Section
        2.3  Administrator. 

       

      Administrator
        means the Company, unless the Company designates another person to hold the
        position of Administrator by written action.

       

      Section
        2.4  Affiliate. 

       

      Affiliate
        means any company, other than an Employer, included within a "controlled
        group
        of corporations" defined by Code Section 1563(a) determined without regard
        to
        Code Sections 1563(a)(4) and (e)(3)(C) and Code Section 409(l)(4), which
        contains an Employer.

       

      Section
        2.5  Alternate
        Payee. 

       

      Alternate
        Payee means any spouse, former spouse, child, or other dependent of a
        Participant who is recognized by a domestic relations order as having a right
        to
        receive all, or a portion of, the benefits payable under the Plan with respect
        to such Participant.

       

      Section
        2.6  Beneficiary. 

       

      Beneficiary
        means a person or entity, either in an individual or fiduciary capacity,
        designated by a Participant or Former Participant pursuant to Article 8 to
        receive any benefit payable under this Plan upon the death of such Participant
        or Former Participant. 

       

      Section
        2.7  Break
        in Service. 

       

      	(a)  	
              A
                Break in Service, for purposes of eligibility, means a Period of
                Severance
                of at least twelve (12) consecutive months. A Period of Severance
                means a
                continuous period of time during which an Employee is not employed
                by the
                Employer. Such period shall begin on the date the Employee retires,
                quits,
                is discharged, or dies, or, if earlier, the twelve (12) month anniversary
                of the date on which the Employee was otherwise first absent from
                work.

            

       

      	(b)  	
              A
                Break in Service, for purposes of vesting, means a Period of Severance
                of
                at least twelve (12) consecutive months. A Period of Severance means
                a
                continuous period of time during which an Employee is not employed
                by the
                Employer. Such period shall begin on the date the Employee retires,
                quits,
                is discharged, or dies, or, if earlier, the twelve (12) month anniversary
                of the date on which the Employee was otherwise first absent from
                work.

            

       

      	(c)  	
              An
                Employee shall receive credit for purposes of determining whether
                he has
                incurred a Break in Service under subsection (a) or (b) above for
                the
                aggregate of all time period(s) commencing with the first day such
                Employee completes an Hour of Service, the Employment Commencement
                Date,
                (including such day following reemployment) and ending on the date
                a Break
                in Service begins. An Employee shall also receive credit for any
                Period of
                Severance of less than twelve (12) consecutive months. Fractional
                periods
                of a year shall be expressed in terms of
                days.

            

       

      	(d)  	
              Further,
                solely for the purpose of determining whether a Participant has incurred
                a
                Break in Service under (a) or (b) above, Hours of Service shall be
                recognized for "authorized leaves of absence" and "maternity and
                paternity
                leaves of absence."

            

       

      	(i)  	
              An
                "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 if:

            

       

      	(A)  	
              a
                person is absent on a leave of absence with the prior consent of
                his
                Employer, which consent shall be granted under uniform rules applied
                to
                all Employees on a nondiscriminatory basis, but only if such person
                is an
                Employee immediately prior to the commencement of such period of
                authorized absence and resumes employment with an Employer not later
                than
                the first working day following the expiration of such period of
                authorized absence;

            

       

      	(B)  	
              a
                person is a member of the Armed Forces of the United States and his
                reemployment rights are guaranteed by law, but only if such person
                is an
                Employee immediately prior to becoming a member of such Armed Forces
                and
                resumes employment with an Employer within the period during which
                his
                reemployment rights are guaranteed by law; or

            

       

      	(C)  	
              a
                person who is at any time an Employee who is employed by an entity
                which
                is not an Employer but whose employees are deemed, under Code Section
                414,
                to be employed, together with all Employees, by a common entity,
                including
                a period or periods of such employment prior to or after any particular
                time such person is an Employee.

            

       

      	(ii)  	
              A
                "maternity or paternity leave of absence" means an absence from work
                for
                any period because of the Employee's pregnancy, birth of the Employee's
                child, placement of a child with the Employee relating to the adoption
                of
                the child, or any absence for the purpose of caring for the child
                for a
                period immediately following the birth or placement. For purposes
                of a
                maternity and paternity leave of absence, Hours of Service shall
                be
                credited for the Computation Period in which the absence from work
                begins,
                only if the credit is necessary to prevent the Employee from incurring
                a
                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 the absence, or, in any case in which the Administrator
                is unable to determine the 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 five hundred
                one (501) hours.

            

       

      	(e)  	
              Notwithstanding
                the foregoing, no credit will be given for such absences from work
                unless
                the Employee furnishes to the Committee such timely information as
                it may
                reasonably require to establish that the absence from work is for
                the
                reason(s) referred to above and the number of days for which there
                was
                such an absence.

            

       

      Section
        2.8  Code. 

       

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

       

      Section
        2.9  Committee. 

       

      Committee
        means the Savings Plan Committee appointed pursuant to Article 17 to administer
        the Plan.

       

      Section
        2.10  Company. 

       

      Company
        means Frozen Food Express Industries, Inc., a corporation organized under
        the
        laws of the State of Texas.

       

      Section
        2.11  Company
        Stock. 

       

      	(a)  	
              Company
                Stock means those unrestricted shares of voting common stock issued
                by the
                Company and any common or preferred stock issued by the Employer
                or by an
                Affiliate which constitute Employer Securities under Code Sections
                409(l)
                and 4975(e)(8).

            

       

      	(b)  	
              Qualifying
                Company Stock means:

            

       

      	(i)  	
              Common
                stock issued by the Employer (or by a corporation which is a member
                of the
                same controlled group) which is readily tradable on an established
                securities market; or

            

       

      	(ii)  	
              If
                there is no common stock which meets the requirements of (i) above,
                then
                common stock issued by the Employer (or by a corporation which is
                a member
                of the same controlled group) having a combination of voting power
                and
                dividend rights equal to or in excess of:

            

       

      	(A)  	
              that
                class of common stock of the Employer (or any other such corporation)
                having the greatest voting power; and 

            

       

      	(B)  	
              that
                class of common stock of the Employer (or of any other such corporation)
                having the greatest dividend rights; or

            

       

      	(iii)  	
              Noncallable
                preferred stock, if such stock is convertible at any time into stock
                which
                meets the requirements of (i) or (ii) (whichever is applicable) and
                if
                such conversion is at a conversion price that is reasonable. A preferred
                stock will be considered noncallable if after the call there will
                be a
                reasonable opportunity for a conversion which meets the requirements
                of
                the preceding sentence in accordance with applicable Treasury
                regulations.

            

       

      Notwithstanding
        the foregoing, references in the Plan to Company Stock shall mean Qualifying
        Company Stock as defined in this subsection (b).

       

      Section
        2.12  Compensation.

       

      	(a)  	
              Compensation,
                pursuant to the safe harbor definition of Treasury Regulation Section
                1.415-2(d)(10), means wages, salaries, and fees for professional
                services
                and other amounts received (without regard to whether or not an amount
                is
                paid in cash) for personal services actually rendered in the course
                of
                employment with the Employer maintaining the Plan to the extent that
                the
                amounts are includable in gross income including, but not limited
                to,
                commissions paid salesmen, compensation for services on the basis
                of a
                percentage of profits, commissions on insurance premiums, tips, bonuses,
                fringe benefits, and reimbursements or other expense allowances under
                a
                nonaccountable plan described in Treasury Regulation Section 1.62-2(c),
                plus any amounts excluded from income pursuant to Code Sections 125,
                132(f) and 401(k), and excluding the
                following:

            

       

      	(i)  	
              contributions
                by the Employer to any qualified deferred compensation plan (to the
                extent
                not includable in the Participant's gross income) or simplified employee
                pension defined in Code Section 408(k) (to the extent not includable
                in
                the Participant's gross income) (other than amounts contributed pursuant
                to Code Sections 401(k), 125 and 132(f);

            

       

      	(ii)  	
              distributions
                from any plan of deferred compensation;

            

       

      	(iii)  	
              amounts
                realized from the exercise of any nonqualified stock option, or,
                in the
                case of restricted stock, when such stock becomes freely transferable
                or
                is no longer subject to a substantial risk of
                forfeiture;

            

       

      	(iv)  	
              amounts
                realized from the sale, exchange, or other disposition of stock acquired
                under a qualified stock option; and

            

       

      	(v)  	
              other
                amounts which receive special tax benefits such as premiums paid
                by the
                Employer (to the extent not includable in the Participant's gross
                income)
                under group term life insurance, contributions by the Employer to
                an
                annuity under Code Section 403(b) (to the extent not includable in
                the
                Participant's gross income), and any other amounts received under
                any
                Employer sponsored fringe benefit plan (to the extent not includable
                in
                the Participant's gross income).

            

       

      	(b)  	
              Compensation
                for any Limitation Year includes compensation received by an Employee
                in
                that Limitation Year from an Employer prior to the Employee becoming
                a
                Participant in the Plan.

            

       

      	(c)  	
              The
                annual compensation of each Participant taken into account in determining
                allocations for any taxable year shall not exceed $200,000, as adjusted
                for cost-of-living increases in accordance with Section 401(a)(17)(B)
                of
                the Code. Annual compensation means compensation during the Plan
                Year or
                such other consecutive 12-month period over which compensation is
                otherwise determined under the Plan (the determination period). The
                cost-of-living adjustment in effect for a calendar year applies to
                annual
                compensation for the determination period that begins with or within
                such
                calendar year.

            

       

      	(d)  	
              For
                purposes of determining whether the Plan discriminates in favor of
                Highly
                Compensated Employees, Compensation means Compensation defined in
                this
                Section 2.12, except any exclusions from Compensation other than
                the
                exclusions described in clauses (a)(i), (ii), (iii), (iv), and (v)
                do not
                apply. The Employer also may elect to use an alternate nondiscriminatory
                definition, under Code Section 414(s) and the applicable Treasury
                regulations. In determining Compensation under this paragraph, the
                Employer may elect to exclude all Savings Contributions made by the
                Employer on behalf of the Employees. The Employer's election to exclude
                Savings Contributions must be consistent and uniform for Employees
                and all
                plans of the Employer for any particular Plan Year. The Employer
                may make
                this election to exclude Savings Contributions for nondiscrimination
                testing purposes, whether or not this Section includes Savings
                Contributions in the general Compensation definition of the
                Plan.

            

       

      	(e)  	
              Notwithstanding
                the foregoing, Compensation for any Self-Employed Individual means
                earned
                income. 

            

       

      Section
        2.13  Conwell
        ESOP

       

      Conwell
        ESOP means the Conwell Corporation Employee Stock Ownership Plan, formerly
        maintained by Conwell Corporation, which has been merged into and consolidated
        with this Plan, pursuant to that certain Plan merger agreement effective
        December 31, 1999. 

       

      Section
        2.14  Current
        Market Value. 

       

      Current
        Market Value means the Current Market Value of each asset included in the
        Trust
        Assets on any particular date, which shall be that amount determined by the
        Trustee on a basis uniformly applied which, in the Trustee's opinion, fairly
        reflects the fair market value of such asset on such date. 

       

      Section
        2.15  Disability. 

       

      Disability
        means a physical or mental condition which, in the opinion of the Committee,
        totally and presumably permanently prevents a Participant or Former Participant
        from satisfactorily performing substantially the same duties assigned to
        him by
        his Employer (which includes for purposes of this Section 2.15 an employing
        entity described in Section 2.43 at the time such condition develops, or
        if such
        Participant or Former Participant is on an authorized leave of absence (other
        than an authorized leave of absence referred to in Section 2.7(d)(i)) or
        any
        other leave of absence approved by his Employer when such condition develops,
        substantially the same duties assigned to him by his Employer immediately
        prior
        to the commencement of such period of authorized or approved absence or such
        other duties which the Employer makes available to the Participant and for
        which
        the Participant is qualified by reason of his training, education, or
        experience. A determination that Disability exists shall be based upon competent
        medical evidence satisfactory to the Committee. The date any person's Disability
        occurs shall be deemed to be the date such condition is determined to exist
        by
        the Committee.

       

      Section
        2.16  Discretionary
        Employer Contribution. 

       

      Discretionary
        Employer Contribution means any contribution to the Plan made by an Employer
        for
        the Plan Year and allocated to a Participant's Discretionary Employer
        Contribution Account.

       

      Section
        2.17  Discretionary
        Employer Contribution Account. 

       

      Discretionary
        Employer Contribution Account means the account or record maintained or caused
        to be maintained by the Trustee showing the composition and value of the
        individual interest of a particular Participant, Former Participant or
        Beneficiary in the Trust Assets attributable to Discretionary Employer
        Contributions, if any.

       

      Section
        2.18  Early
        Retirement. 

       

      Early
        Retirement means the date the Participant attains age 55 and completes ten
        (10)
        Years of Service.

       

      Section
        2.19  Early
        Retirement Date. 

       

      Early
        Retirement Date means the first day next following the date the Participant
        attains Early Retirement Age and which immediately follows the last day on
        which
        the Participant is an Employee, or, if later, the last day of the Participant's
        authorized leave of absence, if any.

       

      Section
        2.20  Effective
        Date. 

       

      The
        original Effective Date of this Plan is October 1, 1987. The Effective Date
        of
        this Plan as restated is January 1, 2007, except as otherwise provided
        herein.

       

      Section
        2.21  Employee. 

       

      	(a)  	
              Employee
                means any individual currently employed by the Employer maintaining
                the
                Plan or of any other Employer required to be aggregated with the
                Employer
                under Code Sections 414(b), (c), (m) or
                (o).

            

       

      	(b)  	
              The
                Plan does not treat any Leased Employee as an Employee of the Employer.
                A
                Leased Employee is an individual, who otherwise is not an Employee
                of the
                Employer, who, pursuant to a leasing agreement between the Employer
                and
                any other person, has performed services for the Employer (or for
                the
                Employer and any persons related to the Employer within the meaning
                of
                Code Section 144(a)(3)) on a substantially full time basis for at
                least
                one (1) year and who performs services under the primary direction
                and
                control of the Employer.

            

       

      	(c)  	
              Notwithstanding
                the preceding, the term "Employee" shall not include any individual
                who is
                designated as an "Independent Contractor" by the Employer, even if
                the
                status of such individual subsequently is changed from that of an
                Independent Contractor to that of an employee as a result of
                administrative or legal proceedings.

            

       

      Section
        2.22  Employer
        Contributions. 

       

      Employer
        Contributions means the Matching Employer Contributions and Discretionary
        Employer Contributions made by the Employer pursuant to Sections 4.3 and
        4.4.

       

      Section
        2.23  Employer. 

       

      Employer
        means FROZEN FOOD EXPRESS INDUSTRIES, INC., FFE TRANSPORTATION SERVICES,
        INC.,
        CONWELL CORPORATION, W & B REFRIGERATION SERVICE COMPANY, INC., LISA MOTOR
        LINES, INC., GLOBAL REFRIGERANT MANAGEMENT, INC., or any other Affiliate
        who,
        with the written consent of the Plan Sponsor, adopts this Plan on the effective
        date of its election to participate.

       

      Section
        2.24  Employment
        Commencement Date. 

       

      Employment
        Commencement Date means the first day for which an Employee is to be credited
        with an Hour of Service.

       

      Section
        2.25  Entrance
        Date. 

       

      Entrance
        Date means the first business day of the month following an Employee's
        completion of ninety (90) days of employment.

       

      Section
        2.26  ERISA. 

       

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

       

      Section
        2.27  ESOP
        Accounts. 

       

      ESOP
        Accounts means the ESOP Transfer Accounts and ESOP Rollover Accounts maintained
        under this Plan.

       

      Section
        2.28  ESOP
        Rollover Account. 

       

      ESOP
        Rollover Account means the account(s) or record(s) maintained or caused to
        be
        maintained by the Plan Administrator showing the composition and value of
        the
        individual interest of a particular Participant, Former Participant, or
        Beneficiary in the Trust Assets attributable to rollover contributions to
        the
        FFE Transportation Services ESOP and/or the Conwell ESOP contributed to the
        Trust pursuant to that certain Plan Merger Agreement effective December 31,
        1999.

       

      Section
        2.29  ESOP
        Transfer Account. 

       

      ESOP
        Transfer Account means the account(s) or record(s) maintained or caused to
        be
        maintained by the Plan Administrator showing the composition and value of
        the
        individual interest of a particular Participant, Former Participant, or
        Beneficiary in the Trust Assets attributable to the Participant's or Former
        Participant's Employer Securities Account and Employer Investment Account
        under
        the FFE Transportation Services ESOP or Conwell ESOP, contributed to the
        Trust
        pursuant to that certain Plan Merger Agreement effective December 31,
        1999.

       

      Section
        2.30  FFE
        Transportation Services ESOP

       

      FFE
        Transportation Services ESOP means the FFE Transportation Services, Inc.
        Employee Stock Ownership Plan, formerly maintained by FFE Transportation
        Services, Inc., which has been merged into and consolidated with this Plan,
        pursuant to that certain Plan merger agreement effective December 31,
        1999.

       

      Section
        2.31  Former
        Participant. 

       

      Former
        Participant means a Participant who is no longer participating in the Plan
        but
        who has a vested account balance which has not been paid in full.

       

      Section
        2.32  Highly
        Compensated Employee. 

       

      Highly
        Compensated Employee means any Participant or Former Participant who is a
        Highly
        Compensated Employee, defined in Code Section 414(q). Generally, any Participant
        or Former Participant is considered a Highly Compensated Employee if the
        Participant or Former Participant:

       

      	(a)  	
              was
                at any time during the Plan Year or during the preceding Plan Year
                a Five
                Percent Owner as defined in Section 12.2(g);
                or

            

       

      	(b)  	
              for
                the preceding Plan Year (i) had Compensation from the Employer in
                excess
                of $80,000, as adjusted by the Secretary of the Treasury for the
                relevant
                year and (ii) was in the top-paid group during the preceding Plan
                Year.

            

       

      	(c)  	
              An
                Employee is in the top-paid group of Employees for any Plan Year
                if such
                Employee is in the group consisting of the top twenty percent (20%)
                of the
                Employees when ranked on the basis of Compensation paid during the
                Plan
                Year. However, solely for determining the total number of active
                Employees
                for a year, the following Employees are
                disregarded:

            

       

      	(i)  	
              The
                Employees described in this subsection (i) are excluded on the basis
                of
                age or Service:

            

       

      	(A)  	
              Employees
                who have not completed six (6) months of Service by the end of the
                year.
                (An Employee's Service in the immediately preceding year is added
                to the
                Employee's Service in the current year to determine whether the exclusion
                applies in the current year.);

            

       

      	(B)  	
              Employees
                who normally work less than 171⁄2 hours per week. (This determination is
                made independently for each year. Weeks during which the Employee
                did not
                work are not considered. An Employee who works less than 171⁄2 hours a week
                for fifty percent (50%) or more of the total weeks worked by the
                Employee
                during the year is deemed to normally work less than 171⁄2 hours per week
                under this rule.);

            

       

      	(ii)  	
              Employees
                who are included in a unit of employees covered by an agreement that
                the
                Secretary of Labor finds to be a collective bargaining agreement
                between
                Employee representatives and the Employer which satisfies Code Section
                7701(a)(46) and Temporary Treasury Regulation Section 301.7701-17T
                are
                included in determining the number of Employees in the top-paid group
                unless the following exception applies. If ninety percent (90%) or
                more of
                the Employees of the Employer are covered under collective bargaining
                agreements that the Secretary of Labor finds to be collective bargaining
                agreements between Employee representatives and the Employer, which
                agreements satisfy Code Section 7701(a)(46) and Temporary Treasury
                Regulation Section 301.7701-17T, and the Plan covers only Employees
                who
                are not covered under the agreements, then the Employees who are
                covered
                under the agreements are (A) not counted in determining the number
                of
                noncollective bargaining employees who will be included in the top-paid
                group in testing the Plan; and (B) not included in the top-paid group
                in
                testing the Plan.

            

       

      The
        Committee must make the determination of who is a Highly Compensated Employee
        consistent with Code Section 414(q) and regulations issued under that Code
        Section. The Employer may make a calendar year election to determine the
        Highly
        Compensated Employees for the preceding Plan Year, as prescribed by Treasury
        regulations. A calendar year election must apply to all plans and arrangements
        of the Employer.

       

      For
        purposes of this Section, Compensation means Compensation defined in Section
        2.12, and including deferrals under (a) Code Section 402(a)(8) relating to
        a
        Code Section 401(k) arrangement; (b) Code Section 125 relating to a cafeteria
        plan; (c) Code Section 403(b) relating to a tax sheltered annuity plan; (d)
        Code
        Section 408(h) relating to a simplified employee pension; (e) Code Section
        402(k) relating to a simple retirement account; and (f) Code Section 132(f)
        relating to transportation fringe benefits. Compensation from each Related
        Employer shall be taken into account.

       

      Section
        2.33  Hours
        of Service.

       

      	(a)  	
              Hours
                of Service shall be credited for periods during which an Employee
                is
                either:

            

       

      	(i)  	
              directly
                or indirectly paid, or entitled to payment, by an Employer or an
                entity
                described in Section 2.43 for the performance of duties in his capacity
                as
                an Employee of such Employer or entity;

            

       

      	(ii)  	
              directly
                or indirectly paid or entitled to payment, by an Employer or an entity
                described in Section 2.43 on account of a period of time during which
                no
                duties are performed (irrespective of whether the employment relationship
                has terminated) due to vacation, holiday, illness, incapacity (including
                disability), layoff, jury duty, military duty or any other leave
                of
                absence approved by such Employer or
                entity;

            

       

      	(iii)  	
              entitled
                to back pay, irrespective of mitigation of damages, which is either
                awarded or agreed to by an Employer or an entity described in Section
                2.43; or

            

       

      	(iv)  	
              on
                an authorized leave of absence.

            

       

      	(b)  	
              An
                Employee shall not receive credit for the same Hours of Service under
                more
                than one paragraph of this Section
                2.33(a);

            

       

      	(c)  	
              An
                Employee shall also receive credit for any additional Hours of Service
                required by applicable federal law (other than ERISA) to be credited
                to
                him, the nature and extent of such credit to be determined under
                such law.
                

            

       

      	(i)  	
              Except
                as provided in the following sentence, Hours of Service under Subsection
                2.33(a)(i) shall be computed by crediting an Employee with 190 Hours
                of
                Service for each month such Employee is entitled to be credited with
                one
                Hour of Service under Subsection 2.33(a)(i). If an Employee is a
                part-time
                Employee, such Employee shall receive credit for Hours of Service
                equal to
                the actual number of hours worked by such Employee, as determined
                from the
                appropriate payroll records. 

            

       

      	(ii)  	
              Hours
                of Service under Subsection 2.33(a)(ii) shall be determined pursuant
                to
                the rules set forth in paragraphs (b) and (c) of Section 2530.200b-2
                of
                the United States Department of Labor Regulations, which rules are
                hereby
                incorporated and made a part of this Plan by
                reference.

            

       

      	(iii)  	
              Except
                for part-time Employees, Hours of Service under Subsection 2.33(a)(iv)
                shall be credited on the basis of 190 hours for each complete calendar
                month of a person's authorized leave of absence, but no such Hours
                of
                Service shall be credited for any month for which an Employee receives
                credit for Hours of Service under Subsection 2.33(a)(i) or (ii).
                

            

       

      	(iv)  	
              For
                purposes of this Section an Employee works "part-time" if he normally
                is
                employed for less than twenty (20) hours per week or less than six
                (6)
                months per Plan Year.

            

       

      	(d)  	
              The
                terms defined in this Section 2.33 shall include Hours of Service
                rendered
                by an Employee prior to the Effective Date for an Employer or a member
                of
                a controlled group of corporations including an
                Employer.

            

       

      Section
        2.34   Matching
        Employer Contribution. 

       

      Matching
        Employer Contribution means any contribution to the Plan made by an Employer
        for
        the Plan Year and allocated to a Participant's Matching Employer Contribution
        Account by reason of the Participant's Savings Contributions and/or Roth
        Savings
        Contributions. All Employer Contributions under Section 4.3(a) are Matching
        Employer Contributions.

       

      Section
        2.35  Matching
        Employer Contribution Account. 

       

      Matching
        Employer Contribution Account means the account or record maintained or caused
        to be maintained by the Trustee showing the composition and value of the
        individual interest of a particular Participant, Former Participant or
        Beneficiary in the Trust Assets attributable to Matching Employer Contributions
        and Special Employer Contributions, if any.

       

      Section
        2.36  Named
        Fiduciary. 

       

      Named
        Fiduciary means one or more fiduciaries named in this Agreement who jointly
        and
        severally shall have authority to control or manage the operation and
        administration of the Plan. Frozen Food Express Industries, Inc. shall be
        the
        Named Fiduciary unless it designates another person by written Employer
        action.

       

      Section
        2.37  Nonforfeitable. 

       

      Nonforfeitable
        means a vested interest attained by a Participant or Beneficiary in that
        part of
        the Participant's benefit under the Plan arising from the Participant's Service,
        which claim is unconditional and legally enforceable against the
        Plan.

       

      Section
        2.38  Non-Highly
        Compensated Employee. 

       

      Non-Highly
        Compensated Employee means an Employee who is not a Highly Compensated
        Employee.

       

      Section
        2.39  Normal
        Retirement Age. 

       

      Normal
        Retirement Age means the 65th birthday of a Participant or Former
        Participant.

       

      Section
        2.40  Normal
        Retirement Date. 

       

      Normal
        Retirement Date means, for each Participant, the first day next following
        the
        date the Participant attains Normal Retirement Age and which immediately
        follows
        the last day on which the Participant is an Employee, or, if later, the last
        day
        of the Participant's authorized leave of absence, if any.

       

      Section
        2.41  Owner-Employee. 

       

      Owner
        Employee means a sole proprietor or a partner who owns more than ten percent
        (10%) of either the capital interest or profits interest in an unincorporated
        Employer and who receives income from such unincorporated Employer for personal
        services.

       

      Section
        2.42  Participant. 

       

      Participant
        means an Employee of the Employer who has met the eligibility requirements
        of
        this Plan and who has been enrolled as a Participant in this Plan pursuant
        to
        Article 3.

       

      Section
        2.43  Participating
        Employer. 

       

      Participating
        Employer means any Related Employer that may elect to adopt this Plan pursuant
        to Article 14.

       

      Section
        2.44  Participation. 

       

      Participation
        means any period commencing on the date the Employee becomes a Participant
        and
        ending on the date on which the Employee incurs a Severance from
        Service.

       

      Section
        2.45  Plan. 

       

      Plan
        means the Frozen Food Express Industries, Inc. 401(k) Savings Plan, as restated
        herein.

       

      Section
        2.46  Plan
        Sponsor. 

       

      Plan
        Sponsor means Frozen Food Express Industries, Inc.

       

      Section
        2.47  Plan
        Year. 

       

      The
        annual period beginning on January 1 and ending on December 31.

       

      Section
        2.48  Prior
        Plan. 

       

      Prior
        Plan means the Frozen Food Express Industries, Inc. 401(k) Savings Plan as
        in
        effect prior to the Effective Date.

       

      Section
        2.49  Re-Employment
        Commencement Date. 

       

      The
        first
        date on which an Employee is credited with an Hour of Service upon his return
        to
        employment with an Employer after he has Separated from Service.

       

      Section
        2.50  Related
        Employer. 

       

      A
        related
        group of employers is a controlled group of corporations (defined in Code
        Section 414(b)), trades or businesses (whether or not incorporated) which
        are
        under common control (defined in Code Section 414(c)) or an affiliated service
        group (defined in Code Section 414(m) or in Code Section 414(o)). If the
        Employer is a member of a related group, the term "Employer" includes the
        related group members for purposes of crediting Hours of Service, determining
        Years of Service and Breaks in Service under Articles 2 and 6, applying the
        participation test of Code Section 401(a)(26) and the coverage test of Code
        Section 410(b), applying the limitations on allocations in Article 5, applying
        the top-heavy rules and the minimum allocation requirements of Article 12,
        the
        definitions of Employee, Highly Compensated Employee, Compensation and Leased
        Employee, and for any other purpose required by the applicable Code Section
        or
        by a Plan provision. However, an Employer may contribute to the Plan only
        by
        being a signatory to a Participation Agreement to the Plan. If one or more
        of
        the Employer's related group members become Participating Employers by executing
        a Participation Agreement to the Plan, the term "Employer" includes the
        participating related group members for all purposes of the Plan, and
        Administrator means the Employer that is the signatory to the Plan. For Plan
        allocation purposes, Compensation does not include Compensation received
        from a
        Related Employer that is not participating in this Plan.

       

      Section
        2.51  Retirement. 

       

      A
        Participant's or Former Participant's being Separated from Service on or
        after
        his Normal Retirement Date. Retirement shall be considered as commencing
        on that
        day which occurs on or after a Participant or Former Participant had reached
        Normal Retirement Date and which immediately follows (i) the last day of
        which
        such Participant or Former Participant is an Employee or, if later, (ii)
        the
        last day of an authorized leave of absence or any other leave of absence
        approved by such Participant's or Former Participant's Employer.

       

      Section
        2.52  Rollover
        Account. 

       

      The
        account(s) or record(s) maintained or caused to be maintained by the Trustee
        showing the composition and value of the individual interest of a particular
        Participant, Former Participant or Beneficiary in the Trust Assets attributable
        to each contribution of a Rollover Amount (as defined in Section 4.6) or
        a
        direct trustee-to-trustee transfer of assets to the Trust from a qualified
        plan
        or Code Section 403(b) annuity on behalf of a Participant.

       

      Section
        2.53  Roth
        Savings Contributions.

       

      Roth
        Savings Contributions means Employee after-tax contributions to the Plan
        made
        pursuant to Participants’ elections under Section 4.2 of the Plan.

       

      Section
        2.54  Savings
        Account. 

       

      The
        account or record maintained or caused to be maintained by the Trustee showing
        the composition and value of the individual interest of a particular
        Participant, Former Participant or Beneficiary in the Trust Assets attributable
        to Savings Contributions elected by Participants, Qualified Non-Elective
        Contributions and Qualified Matching Contributions.

       

      Section
        2.55  Savings
        Contributions. 

       

      Savings
        Contributions means Employer contributions to the Plan made pursuant to
        Participants' elections under Section 4.1. In addition, references to Savings
        Contributions may also include Roth Savings Contributions in accordance with
        Section 4.2 of the Plan.

       

      Section
        2.56  Self-Employed
        Individual. 

       

      Self-Employed
        Individual means, regarding an unincorporated business, an individual described
        in Code Section 401(c)(1). A Self-Employed Individual shall be treated as
        an
        Employee if the individual has an ownership interest in either the capital
        or
        profits interest of an unincorporated Employer and receives income from the
        Employer for personal services.

       

      Section
        2.57  Separation
        from Service. 

       

      Separation
        from Service occurs whenever a person ceases to be an Employee of the Employer
        and is no longer being credited with Hours of Service.

       

      Section
        2.58  Service. 

       

      Service
        means any period of time the Employee is in the employ of the Employer. Service
        in all cases includes periods during which the Employee is on an "authorized
        leave of absence" or a "maternity or paternity leave of absence" defined
        in
        Section 2.7(d) relating to a Break in Service. Leaves of absence also shall
        include periods of absence in connection with military service during which
        the
        Employee's re-employment rights are legally protected. Except for absence
        by
        reason of military service, leaves of absence shall be for a maximum period
        of
        two (2) years. Leaves of absence shall be granted on a uniform and
        nondiscriminatory basis.

       

      If
        the
        Employer maintains the plan of a Predecessor Employer, Service shall include
        service for the Predecessor Employer. To the extent it may be required under
        applicable Treasury regulations under Code Section 414, Service shall include
        all service for any Predecessor Employer.

       

      For
        purposes of determining vesting of a Participant's ESOP Transfer Account,
        the
        Participant will be credited with the greater of (i) his Service as determined
        in accordance with the elapsed time method described in the Plan, or (ii)
        the
        Years of Service credited to such Participant as of December 31, 1999, under
        the
        FFE Transportation Services ESOP and/or the Conwell ESOP, plus the number
        of
        Years of Service credited under this Plan from and after January 1, 2000
        (using
        the elapsed time method from such date forward).

       

      Section
        2.59  Shareholder-Employee. 

       

      Shareholder-Employee
        means a Participant who owns more than five percent (5%) of the Employer's
        outstanding capital stock during any year in which the Employer elected to
        be
        taxed as a Small Business Corporation under Code Section 1362(a) and who
        receives income from the Employer for personal services.

       

      Section
        2.60  Separated
        from Service. 

       

      A
        person
        is Separated from Service when he is no longer an Employee.

       

      Section
        2.61  Special
        Employer Contributions. 

       

      Special
        Employer Contributions means the Special Employer Contributions made by the
        Employers pursuant to the terms of the Prior Plan.

       

      Section
        2.62  Spouse. 

       

      Spouse
        means the spouse to whom a Participant or Former Participant is married on
        the
        date the Participant or Former Participant becomes entitled to benefit payments
        under the Plan, or if such entitlement has not occurred, the spouse to whom
        the
        Participant or Former Participant was married on the date of his death;
        provided, however, that the Participant or Former Participant had been married
        to such spouse for at least one year ending on the date the Participant becomes
        entitled to benefit payments or the date of the Participant's or Former
        Participant's death.

       

      Section
        2.63  Trust. 

       

      Trust
        means the trust created by the Trust Agreement between Frozen Food Express
        Industries, Inc. and the Trustee.

       

      Section
        2.64  Trust
        Agreement. 

       

      Trust
        Agreement means the agreement, entered into by Frozen Food Express Industries,
        Inc. and the Trustee, or any successor Trustee, establishing the Trust and
        specifying the duties of the Trustee.

       

      Section
        2.65  Trust
        Fund. 

       

      Trust
        Fund means all assets of any kind and nature from time to time held by the
        Trustee or its agent under the Trust Agreement without distinction between
        income and principal. This Plan contemplates a single Trust for all Employers
        participating under the Frozen Food Express Industries, Inc. 401(k) Savings
        Plan. However, the Trustee will maintain separate records of account to reflect
        properly each Participant's Account Balance from each Participating
        Employer.

       

      Section
        2.66  Trustee. 

       

      Trustee
        means at any particular time, the then acting Trustee or, collectively, if
        there
        is more than one, the then acting Trustees of the Trust.

       

      Section
        2.67  Valuation
        Date. 

       

      Valuation
        Date means any business day on which the Nasdaq National Market is
        open.

       

      Section
        2.68  Vested
        Percentage. 

       

      Vested
        Percentage means that percentage of a Participant's Discretionary Employer
        Contribution Account, Matching Employer Contribution Account, W & B Plan
        Rollover Account, and ESOP Transfer Account, if any, in which the Participant's
        rights are nonforfeitable and fully vested, which percentage is determined
        by
        reference to the vesting schedule set forth in Section 6.2.

       

      Section
        2.69  W
        & B Plan Rollover Account. 

       

      W
&
B
        Plan Rollover Account means the account(s) or record(s) maintained or caused
        to
        be maintained by the Plan Administrator showing the composition and value
        of the
        individual interest of a particular Participant, Former Participant, or
        Beneficiary in the Trust assets attributable to the direct trustee-to-trustee
        transfers of assets to the Trust from the W & B Refrigeration Service Co.,
        Inc. Employees' Profit Sharing Plan and Trust.

       

      Section
        2.70  Year
        of Service. 

       

      
        	 	
                (a)

              	
                For
                  purposes of eligibility, a Year of Service means the twelve (12)
                  consecutive month period commencing on an Employee's Employment
                  Commencement Date and ending on the anniversary of the Employee's
                  Employment Commencement Date. If an Employee fails to complete
                  a Year of
                  Service on the first anniversary of the Employment Commencement
                  Date, the
                  Employee shall be deemed to complete a Year of Service upon the
                  completion
                  of twelve (12) months of Service. An Employee shall receive credit
                  for the
                  aggregate of all time periods commencing with the first day the
                  Employee
                  is entitled to credit for an Hour of Service, including the Re-Employment
                  Commencement Date, and ending on the date a Break in Service begins.
                  An
                  Employee also shall receive credit for any Period of Severance
                  of less
                  than twelve (12) consecutive months. Fractional periods of a year
                  shall be
                  expressed in terms of months, with credit for a month of service
                  being
                  given for each thirty (30) days of
                  Service.

              

      

       

      
        	 	
                (b)

              	
                For
                  purposes of vesting, and subject to Section 6.3, a Year of Service
                  means
                  twelve (12) months of Service. For purposes of determining an Employee's
                  Years of Service for vesting purposes, an Employee shall receive
                  credit
                  for the aggregate of all time periods commencing on an Employee's
                  Employment Commencement Date, including the Re-Employment Commencement
                  Date, and ending on the date a Break in Service begins. An Employee
                  also
                  shall receive credit for any Period of Severance of less than twelve
                  (12)
                  consecutive months. Fractional periods of a year shall be expressed
                  in
                  terms of months, with credit for a month of service being given
                  for each
                  thirty (30) days of Service. In computing an Employee's Years of
                  Service,
                  the following rules shall apply:

              

      

       

      
        	 	
                (i)

              	
                For
                  an Employee who terminates employment and is subsequently re-employed
                  after incurring a Break in Service, Service prior to the Break
                  in Service
                  shall be taken into account immediately upon
                  re-employment.

              

      

       

      
        	 	
                (ii)

              	
                For
                  a Participant who terminates employment and who subsequently is
                  re-employed after incurring five (5) consecutive Breaks in Service,
                  Years
                  of Service after the Break in Service shall not be taken into account
                  for
                  purposes of determining the Nonforfeitable percentage of an Employee’s
                  Account Balance derived from Employer Contributions which accrued
                  before
                  the Break in Service. 

              

      

       

      
        	 	
                (iii)

              	
                For
                  a Participant who terminates employment without any vested right
                  to his
                  Discretionary Employer Contribution Account or Matching Employer
                  Contribution Account and who is re-employed after a Break in Service,
                  Service before the Break in Service shall be taken into account
                  for
                  purposes of determining the Nonforfeitable percentage of an Employee’s
                  Account Balance derived from Employer Contributions which accrue
                  after the
                  Break in Service. 

              

      

       

      
        	 	
                (iv)

              	
                Years
                  of Service, for purposes of vesting, shall include all Years of
                  Service of
                  the Employee with any Predecessor
                  Employer.

              

      

       

      
        	 	
                (v)

              	
                Years
                  of
                  Service with the Employer before a Participant enters the Plan
                  shall be
                  considered for purposes of vesting.

              

      

       

      
        	 	
                (vi)

              	
                If
                  the Employer is a member
                  of
                  a group of Related Employers, then Year of Service for purposes
                  of vesting
                  shall include Service with any Related
                  Employer.

              

      

       

      
        	 	
                (vii)

              	
                For
                  purposes of determining Years of Service for vesting, the following
                  definitions shall apply:

              

      

       

      
        	 	
                (A)

              	
                Employment
                  Commencement Date means the date on which an Employee is first
                  entitled to
                  credit for an Hour of Service.

              

      

       

      
        	 	
                (B)

              	
                Period
                  of Severance means the period of time commencing on the Severance
                  from
                  Service Date and ending on the date on which the Employee again
                  performs
                  an Hour of Service for the
                  Employer.

              

      

       

      
        	 	
                (C)

              	
                Re-Employment
                  Commencement Date means the first date, following a Period of Severance
                  which is not required to be considered under the Service rules,
                  on which
                  the Employee performs an Hour of Service for the
                  Employer.

              

      

       

      
        	 	
                (D)

              	
                Severance
                  from Service Date means the date on which occurs the earlier of:
                  (i) the
                  date on which an Employee quits, retires, is discharged or dies;
                  or (ii)
                  the first anniversary of the first date of a period in which an
                  Employee
                  remains absent from Service, with or without pay, with the Employer
                  for
                  any other reason, such as vacation, holiday, sickness, disability,
                  leave
                  of absence or layoff.

              

      

       

      
        	 	
                (c)

              	
                For
                  purposes of vesting, an Employee's years of service with W & B
                  Refrigeration Service Co., Inc. shall be counted as Years of Service
                  under
                  this Plan to the extent that such service was counted as years
                  of service
                  under the W & B Refrigeration Service Co., Inc. Employees' Profit
                  Sharing Plan and Trust.

              

      

       

      
        	 	
                (d)

              	
                For
                  purposes of determining vesting of a Participant’s ESOP Transfer Account,
                  the Service crediting provisions of Section 2.58 of the Plan shall
                  apply.

              

      

       

      
        	 	
                (e)

              	
                The
                  terms defined in this Section 2.70 shall include Years of Service
                  performed by an Employee prior to the Effective
                  Date.

              

      

       

      *
        * * * *
        *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        THREE  

       

       

      ELIGIBILITY
        AND PARTICIPATION

       

      Section
        3.1  Eligibility. 

       

      Any
        Employee shall become a Participant as of the Entrance Date following the
        date
        on which he completes ninety (90) days of employment.

       

      Section
        3.2  Eligibility
        Following Separation From Service. 

       

      If
        an
        Employee who has satisfied the eligibility requirements of Section 3.1 has
        Separated from Service and later returns to Service with an Employer, he
        shall
        become a Participant on his Re-Employment Commencement Date; provided, however,
        that any Employee who Separated from Service at a time when he had no Vested
        Percentage and who has incurred five consecutive Breaks-in-Service before
        his
        Re-Employment Commencement Date, must meet the eligibility requirements of
        Section 3.1 anew before he will become or again become a Participant.

       

      Section
        3.3  Participation
        During Leave of Absence. 

       

      During
        an
        authorized leave of absence or any other leave of absence approved by a
        Participant's or Former Participant's Employer:

       

      	(a)  	
              The
                Participant's Accounts shall share in the allocation of net earnings,
                net
                losses, taxes (if any) and expenses of the Trust during such period;
                and

            

       

      	(b)  	
              In
                the case of an authorized leave of absence under Section 2.7, the
                Participant's interest in his Discretionary Employer Contribution
                Account,
                Matching Employer Contribution Account, and ESOP Transfer Account
                shall
                continue to vest, as provided in Article 6, until he is Separated
                from
                Service. In the case of any other authorized leave of absence or
                any other
                leave of absence approved by his Employer, his interest in his
                Discretionary Employer Contribution Account, Matching Employer
                Contribution Account and ESOP Transfer Account shall continue to
                vest, as
                provided in Article 6, but only if he resumes employment with an
                Employer
                not later than the first working day following the expiration of
                the
                period of such leave. If such employment is not so resumed, the date
                he is
                Separated from Service for purposes of such vesting shall be deemed
                to be
                the last day of employment prior to the commencement of such authorized
                or
                approved absence and such Participant or Former Participant shall
                not
                receive credit for any Hours of Service under Section 2.33(a)(ii)
                after
                such last day.

            

       

      Section
        3.4  Notification
        of Eligibility and Commencement of Participation. 

       

      As
        soon
        as administratively feasible prior to each Entrance Date, the Employers shall
        furnish the Committee with a list of all Employees who become eligible or
        re-eligible to participate in the Plan as of that Entrance Date. The Committee
        shall promptly notify each such Employee of his prospective participation
        and
        provide each such Employee with such explanation of the Plan as the Committee
        may provide for that purpose, together with such forms as the Committee may
        prescribe for elections to participate in the Plan. Such forms shall include
        elections for (1) Savings Contributions and/or Roth Savings Contributions
        (via
        payroll deduction); (2) investment direction of a Participant's accounts
        and (3)
        Beneficiary designation. Each Employee shall be eligible to have Savings
        Contributions and/or Roth Savings Contributions made on his behalf as of
        the
        Entrance Date concurrent with or next following the date on which he (1)
        becomes
        a Participant in accordance with Plan Section 3.1, and (2) has signed and
        returned all election forms as required by the Employer. In accordance with
        Plan
        Section 4.1(b), if the Employee has not submitted all election forms as of
        the
        Entrance Date concurrent with or next following the date on which he becomes
        a
        Participant, the Employee shall be eligible to have Savings Contributions
        and/or
        Roth Savings Contributions made on his behalf as of the payroll period
        concurrent with or next following the date the Employee submits such election
        forms. 

       

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        FOUR  

       

       

      CONTRIBUTIONS

       

      Section
        4.1  Savings
        Contributions. 

       

      	(a)  	
              Subject
                to the provisions of Sections 4.1(e) and (g), each Participant may
                elect
                that an amount, in any whole percentage of his Compensation, not
                to exceed
                seventy-five percent (75%) of his Compensation, be withheld from
                his
                Compensation and contributed by his Employer to the Trust. The Plan
                Administrator may permit a Participant to make an election under
                this
                Section through any written, electronic or telephonic means authorized
                by
                the Committee. Such contributions shall be known as Savings
                Contributions.

            

       

      	(b)  	
              A
                Participant who does not have an election to have Savings Contributions
                made on his behalf in effect, or any Participant who would like to
                amend
                his election, may make such election or amend such election, effective
                as
                of the next following payroll period by filing an election with the
                Plan
                Administrator within a reasonable time prior to commencement of such
                payroll period. The Plan Administrator may permit a Participant to
                make an
                election under this
                Section through any written, electronic or telephonic means authorized
                by
                the Committee. Any such election or amendment of an election shall
                be
                effective only with respect to Compensation payable after the Plan
                Administrator receives such election. 

            

       

      	(c)  	
              All
                Participants who have attained age 50 before the close of the Plan
                Year
                shall be eligible to make catch-up contributions in accordance with,
                and
                subject to the limitations of, Section 414(v) of the Code. Such catch-up
                contributions shall not be taken into account for purposes of the
                provisions of the Plan implementing the required limitations of Sections
                402(g) and 415 of the Code. The Plan shall not be treated as failing
                to
                satisfy the provisions of the Plan implementing the requirements
                of
                section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of the
                Code, as
                applicable, by reason of the making of such catch-up contributions.
                Such
                catch-up contributions will not be matched by Matching Employer
                Contributions. 

            

       

      	(d)  	
              Savings
                Contributions shall be effected by payroll deductions for each pay
                period
                of the electing Participant commencing after the effective date of
                his
                election and shall be paid over to the Trustee no later than the
                fifteenth
                (15th)
                business day of the month following the month of such payroll
                deduction.

            

       

      	(e)  	
              No
                Employee shall be permitted to have Savings Contributions made under
                this
                Plan during any Plan Year which exceed the statutory dollar limitation
                under Code Section 402(g) for the taxable year of the Participant,
                as
                adjusted annually by the Secretary of the Treasury ($15,000 for 2006).
                In
                computing this limitation, a Participant shall include any Elective
                Deferrals under other retirement arrangements. For this purpose,
                "Elective
                Deferrals" means, for any taxable year, the sum
                of:

            

       

      	(i)  	
              any
                Employer contribution under a qualified cash or deferred arrangement
                defined in Code Section 401(k), to the extent not includable in gross
                income for the taxable year under Code Section 402(e)(3), determined
                without regard to the dollar limitation under Code Section
                402(g);

            

       

      	(ii)  	
              any
                Employer contribution under a simplified employee pension as defined
                in
                Code Section 408(k)(6), pursuant to a salary reduction
                agreement;

            

       

      	(iii)  	
              any
                Employer contribution toward the purchase of a tax sheltered annuity
                contract as defined in Code Section 403(b), pursuant to a salary
                reduction
                agreement; and

            

       

      	(iv)  	
              any
                Employer contribution under a SIMPLE Plan pursuant to Code Section
                408(p)(2)

            

       

      If
        the
        statutory dollar limitation under Code Section 402(g) is exceeded, the Committee
        shall direct the Trustee to distribute the Excess Elective Deferrals (defined
        below), and any income or loss allocable to such Excess Elective Deferrals,
        to
        the Participant not later than the first April 15 following the close of
        the
        Participant's taxable year. The amount of Excess Elective Deferrals to be
        distributed to an Employee for a taxable year will be reduced by Excess
        Contributions previously distributed or recharacterized for the Plan Year
        beginning in the taxable year of the Employee. The term "Excess Elective
        Deferrals" means those Elective Deferrals that are includable in a Participant's
        gross income under Code Section 402(g) to the extent the Participant's Elective
        Deferrals for a taxable year exceed the dollar limitation under Code Section
        402(g). Excess Elective Deferrals under this Plan shall be treated as Annual
        Additions under the Plan, unless such amounts are distributed no later than
        the
        first April 15 following the close of the Participant's taxable year. To
        determine the amount of the corrective distribution required under this Section,
        the Committee must calculate the allocable income up to the date of
        distribution. The income or loss allocable to Excess Elective Deferrals is
        the
        sum of (1) income or loss allocable to the Participant’s Elective Deferral
        account for the taxable year multiplied by a fraction, the numerator of which
        is
        such Participant’s Excess Elective Deferrals for the year and the denominator is
        the Participant’s account balance attributable to Elective Deferrals without
        regard to any income or loss occurring during such taxable year; and (2)
        ten
        (10) percent of the amount determined under (1) multiplied by the number
        of
        whole calendar months between the end of the Participant’s taxable year and the
        date of distribution, counting the month of distribution if distribution
        occurs
        after the 15th
        of the
        month.

       

      If
        a
        Participant is also a Participant in (i) another qualified cash or deferred
        arrangement defined in Code Section 401(k); (ii) a simplified employee pension
        defined in Code Section 408(k); (iii) a salary reduction arrangement pursuant
        to
        which an employer purchases a tax sheltered annuity contract defined in Code
        Section 403(b) or (iv) a SIMPLE Plan defined in Code Section 408(p), and
        the
        Elective Deferrals made under the other arrangement(s) and this Plan
        cumulatively exceed the amount of the dollar limitation under Code Section
        402(g) in effect on January 1 of each calendar year, as adjusted annually
        by the
        Secretary of the Treasury ($15,000 for 2006), then the Participant may, not
        later than March 1 following the close of the Participant's taxable year,
        notify
        the Administrator in writing of the excess and request that the Participant's
        Savings Contributions under this Plan be reduced by an amount specified by
        the
        Participant. The specified amount then shall be distributed in the same manner
        as provided in the preceding paragraph. A Participant is deemed to notify
        the
        Administrator of any Excess Elective Deferrals that arise by taking into
        account
        only those Elective Deferrals made to this Plan and any other plans of this
        Employer.

       

      	(f)  	
              Limitations
                on Savings Contributions.

            

       

      	(i)  	
              Actual
                Deferral Percentage Test.
                The annual allocation derived from Savings Contributions to a
                Participant's Savings Account shall satisfy one of the following
                tests:

            

       

      	(A)  	
              The
                Average Actual Deferral Percentage for Participants who are Eligible
                Highly Compensated Employees for the Plan Year shall not exceed the
                Average Actual Deferral Percentage for Participants who are Eligible
                Non-Highly Compensated Employees for the current Plan Year multiplied
                by
                1.25; or

            

       

      	(B)  	
              The
                Average Actual Deferral Percentage for Participants who are Eligible
                Highly Compensated Employees for the Plan Year shall not exceed the
                Average Actual Deferral Percentage for Participants who are Eligible
                Non-Highly Compensated Employees for the current Plan Year multiplied
                by
                two (2); provided that the Average Actual Deferral Percentage for
                Participants who are Eligible Highly Compensated Employees for the
                Plan
                Year does not exceed the Average Actual Deferral Percentage for
                Participants who are Eligible Non-Highly Compensated Employees for
                the
                current Plan Year by more than two (2) percentage
                points.

            

       

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

            

       

      	(A)  	
              Actual
                Deferral Percentage
                means the ratio, expressed as a percentage, of (i) the amount of
                Savings
                Contributions actually paid to the Trust Fund on behalf of the Eligible
                Participant for the Plan Year to (ii) the Eligible Participant's
                Compensation for the Plan Year, whether or not the Employee was a
                Participant for the entire Plan Year. Savings Contributions on behalf
                of
                any Participant shall include: (i) any Savings Contributions, (including
                Excess Elective Deferrals of Highly Compensated Employees), but excluding
                (1) Excess Elective Deferrals of Non-Highly Compensated Employees
                that
                arise solely from Savings Contributions made under this plan or plans
                of
                this Employer, and (2) Savings Contributions that are taken into
                account
                in the Contribution Percentage Test (provided the Actual Deferral
                Percentage Test is satisfied both with and without exclusion of these
                Savings Contributions); and (ii) at the election of the Employer,
                Qualified Non-Elective Contributions and Qualified Matching Contributions.
                A Savings Contribution will be taken into account under the Actual
                Deferral Percentage Test for a Plan Year only if it relates to
                compensation that either would have been received by the Employee
                in the
                Plan Year, but for the deferral election, or is attributable to services
                performed by the Employee in the Plan Year and would have been received
                by
                the Employee within two and one-half (21⁄2) months after the close of the
                Plan Year, but for the deferral election. To compute Actual Deferral
                Percentages, an Employee who would be a Participant but for the failure
                to
                     make Savings Contributions shall be treated as a Participant
                on whose
                behalf no Savings Contributions are made.

            

       

      	(B)  	
              Average
                Actual Deferral Percentage
                means the average, expressed as a percentage, of the Actual Deferral
                Percentages of the Eligible Participants in a
                group.

            

       

      	(C)  	
              Eligible
                Participant
                means any Employee of the Employer who is directly or indirectly
                eligible
                under the Plan to have Savings Contributions (or Qualified Non-Elective
                Contributions or Qualified Matching Contributions, or both, if treated
                as
                Savings Contributions for the Actual Deferral Percentage Test) allocated
                to his or her Savings Account for all or any portion of the Plan
                Year.
                Eligible Participant includes an Employee whose eligibility to make
                Savings Contributions has been suspended because of an election (other
                than certain one-time elections) not to participate, a distribution,
                or a
                loan; and an Employee who cannot defer because of Code Section 415
                limitations.

            

       

      	(D)  	
              Qualified
                Non-Elective Contributions
                means Employer Contributions, other than Savings Contributions and
                Matching Contributions, allocated to Participants' accounts which
                are 100%
                Nonforfeitable at all times and which are subject to the distribution
                restrictions described in Section 4.1(h). Employer Contributions
                are not
                100% Nonforfeitable at all times if the Employee has a 100% Nonforfeitable
                interest because of Years of Service taken into account under a vesting
                schedule. Any Employer Contributions allocated to a Participant's
                Savings
                Account under the Plan automatically satisfy the definition of Qualified
                Non-Elective Contributions.

            

       

      	(E)  	
              Qualified
                Matching Contributions
                means Matching Employer Contributions allocated to Participants'
                accounts
                which are 100% Nonforfeitable at all times and which are subject
                to the
                distribution restrictions described in Section 4.1(h). Matching
                Contributions are not 100% Nonforfeitable at all times if the Employee
                has
                a 100% Nonforfeitable interest because of Years of Service taken
                into
                account under a vesting schedule. Any Matching Contributions allocated
                to
                a Participant's Savings Account under the Plan automatically satisfy
                the
                definition of Qualified Matching
                Contributions.

            

       

      	(iii)  	
              Special
                Rules.

            

       

      	(A)  	
              For
                purposes of this Section, the Actual Deferral Percentage for any
                Participant who is a Highly Compensated Employee for the Plan Year
                who is
                eligible to have Savings Contributions (or Qualified Non-Elective
                Contributions or Qualified Matching Contributions, or both, if treated
                as
                Savings Contributions for the Actual Deferral Percentage Test) allocated
                to his or her account under two (2) or more plans or arrangements
                described in Code Section 401(k) that are maintained by the Employer
                or a
                Related Employer shall be determined as if all Savings Contributions
                (and,
                if applicable, Qualified Non-Elective Contributions or Qualified
                Matching
                Contribution, or both) were made under a single arrangement. If a
                Highly
                Compensated Employee participates in two (2) or more cash or deferred
                arrangements that have different plan years, all cash or deferred
                arrangements ending with or within the same calendar year shall be
                treated
                as a single arrangement. Notwithstanding the foregoing, certain plans
                shall be treated as separate if mandatorily disaggregated under applicable
                Treasury regulations pursuant to Code Section
                401(k).

            

       

      	(B)  	
              If
                this Plan satisfies the requirements of Code Sections 401(k), 401(a)(4)
                or
                410(b) only if aggregated with one or more other plans, or if one
                or more
                other plans satisfy the requirements of the Code Sections only if
                aggregated with this Plan, then this Section shall be applied by
                determining the Actual Deferral Percentage of Employees as if all
                such
                plans were a single plan. Plans may be aggregated to satisfy Code
                Section
                401(k) only if they have the same Plan
                Year.

            

       

      	(C)  	
              To
                determine the Actual Deferral Percentage Test, Savings Contributions,
                Qualified Non-Elective Contributions, and Qualified Matching Contributions
                must be made before the last day of the twelve (12) month period
                immediately following the Plan Year to which contributions
                relate.

            

       

      	(D)  	
              The
                Employer shall maintain records sufficient to demonstrate satisfaction
                of
                the Actual Deferral Percentage Test and the amount of Qualified
                Non-Elective Contributions or Qualified Matching Contributions, or
                both,
                used in the test.

            

       

      	(E)  	
              The
                determination and treatment of the Actual Deferral Percentage amounts
                of
                any Participant shall satisfy other requirements prescribed by applicable
                Treasury regulations.

            

       

      	(iv)  	
              Fail-Safe
                Provisions.
                If the initial allocations of the Savings Contributions do not satisfy
                one
                of the tests set forth in paragraph (i) of this Subsection, the
                Administrator shall adjust the accounts of the Participants pursuant
                to
                one (1) or more of the following options:

            

       

      	(A)  	
              Distribution
                of Excess Contributions.
                If the Committee determines that the initial allocations of the Savings
                Contributions do not satisfy one of the Actual Deferral Percentage
                Tests
                set forth in paragraph (i) of this Subsection, the Administrator
                must
                distribute the Excess Contributions, as adjusted for allocable income,
                during the next Plan Year. However, the Employer will incur an excise
                tax
                equal to 10% of the amount of Excess Contributions for a Plan Year
                not
                distributed to the appropriate Highly Compensated Employees during
                the
                first two and one-half (21⁄2) months of the next Plan Year. The Excess
                Contributions are the amount of Savings Contributions made at the
                election
                of the Highly Compensated Employees which causes the Plan to fail
                to
                satisfy the Actual Deferral Percentage Test. The Administrator shall
                make
                distributions to each Highly Compensated Employee of his or her respective
                share of the Excess Contributions pursuant to the following
                steps:

            

       

      	(1)  	
              The
                Administrator shall calculate total Excess Contributions for the
                Highly
                Compensated Employees.

            

       

      	(2)  	
              The
                Administrator shall calculate the total dollar amount by which the
                Excess
                Contributions for the Highly Compensated Employees must be reduced
                in
                order to satisfy the Average Deferral Percentage
                Test.

            

       

      	(3)  	
              The
                Administrator shall calculate the total dollar amount of the Excess
                Contributions for each Highly Compensated
                Employee.

            

       

      	(4)  	
              The
                Administrator shall reduce the Excess Contributions of the Highly
                Compensated Employee(s) with the highest dollar amount of Excess
                Contributions by refunding such contributions to such Highly Compensated
                Employee(s) in the amount required to cause the dollar amount of
                such
                Highly Compensated Employee(s)' Savings Contributions to equal the
                dollar
                amount of the Savings Contributions of the Highly Compensated Employee(s)
                with the next highest dollar amount of Savings Contributions. If
                an
                Employee’s Excess Contribution consists in part of Savings Contributions
                and in part of Roth Savings Contributions, the Savings Contributions
                shall
                be distributed first.

            

       

      	(5)  	
              If
                the total dollar amount distributed pursuant to Step (4) above is
                less
                than the total dollar amount of Excess Contributions, Step (4) shall
                be
                applied to the Highly Compensated Employee(s) with the next highest
                dollar
                amount of Excess Contributions until the total amount of distributed
                Excess Contributions equals the total dollar amount calculated in
                Step
                (2).

            

       

      	(6)  	
              When
                calculating the amount of a distribution under Step (4), if a lesser
                reduction, when added to any amounts already distributed under this
                Section, would equal the total amount of distributions necessary
                to permit
                the Plan to satisfy the requirements of paragraph (i) of this Subsection,
                the lesser amount shall be distributed from the
                Plan.

            

       

      	(B)  	
              Allocable
                Income.
                To determine the amount of the corrective distribution required under
                this
                Section, the Committee must calculate the allocable income up to
                the date
                of distribution. The income or loss allocable to Excess Elective
                Deferrals
                is the sum of (1) income or loss allocable to the Participant’s Elective
                Deferral account for the taxable year multiplied by a fraction, the
                numerator of which is such Participant’s Excess Elective Deferrals for the
                year and the denominator is the Participant’s account balance attributable
                to Elective Deferrals without regard to any income or loss occurring
                during such taxable year; and (2) ten (10) percent of the amount
                determined under (1) multiplied by the number of whole calendar months
                between the end of the Participant’s taxable year and the date of
                distribution, counting the month of distribution if distribution
                occurs
                after the 15th
                of
                the month. 

            

       

      	(C)  	
              Recharacterization
                of Matching Contributions.
                A
                portion of the Employer's Matching Contribution shall be deemed a
                Savings
                Contribution for purposes of paragraph (i) of this Subsection and
                for
                vesting and withdrawal purposes. The portion shall be equal to an
                amount
                necessary to satisfy one of the tests set forth in paragraph (i)
                of this
                Subsection, taking into account the Administrator's action under
                any
                option herein and shall be reallocated to the Savings Account.
                Reallocation of the Employer's Matching Contribution shall be made
                on
                behalf of Participants who are Non-Highly Compensated
                Employees.

            

       

      	(D)  	
              Qualified
                Non-Elective and Qualified Matching Contributions.
                The Employer shall make Qualified Non-Elective
                Contributions or Qualified Matching Contributions on behalf of
                Participants who are Non-Highly Compensated Employees in an amount
                sufficient to satisfy one of the tests set forth in paragraph (i)
                of this
                Subsection, taking into account the Committee’s action under any option
                herein. These contributions shall be made in the minimum amount of
                dollars
                required to satisfy the requirements of paragraph (i) of this Subsection
                and shall be allocated to all Non-Highly Compensated Participants
                electing
                salary reductions in the same proportion that each such Non-Highly
                Compensated Participant’s Compensation for the year bears to the total
                Compensation of all such Non-Highly Compensated Participants for
                such
                year. Such additional contributions shall be fully vested and subject
                to
                the distribution restrictions of Section 4.1(h) hereof, and must
                be made
                prior to the last day of the twelve month period immediately following
                the
                Year to which they relate.

            

       

      The
        Qualified Non-Elective and Qualified Matching Contributions may be treated
        as
        Savings Contributions provided that each of the following requirements, to
        the
        extent applicable, is satisfied:

       

      	(1)  	
              The
                amount of Employer Contributions, including those Qualified Non-Elective
                Contributions
                treated as Savings Contributions for purposes of the Actual Deferral
                Percentage Test, satisfies the requirements of Code Section
                401(a)(4).

            

       

      	(2)  	
              The
                amount of Employer Contributions, excluding those Qualified
                Non-Elective
                Contributions treated as Savings Contributions for purposes of the
                Actual
                Deferral Percentage Test and those Qualified Non-Elective Contributions
                treated as Matching Contributions under Treasury Regulations Section
                1.401(m)-1(b)(5) for purposes of the Average Contribution Percentage
                Test,
                satisfies the requirements of Code Section
                401(a)(4).

            

       

      	(3)  	
              The
                Matching Contributions, including those Qualified Matching Contributions
                treated as Savings Contributions for purposes of the Actual Deferral
                Percentage Test, satisfy the requirements of Code Section
                401(a)(4).

            

       

      	(4)  	
              The
                Matching Contributions, excluding those Qualified Matching Contributions
                treated as Savings Contributions for purposes of the Actual Deferral
                Percentage Test, satisfy the requirements of Code Section
                401(a)(4).

            

       

      	(5)  	
              The
                Qualified Non-Elective Contributions and Qualified Matching Contributions
                satisfy the requirements of Treasury Regulations Section
                1.401(k)-1(b)(4)(i) for the Plan Year as if the contributions were
                Savings
                Contributions.

            

       

      	(6)  	
              The
                plan that includes the cash or deferred arrangement and the plan
                or plans
                to which
                the Qualified Non-Elective Contributions and Qualified Matching
                Contributions are made could be aggregated for purposes of Code Section
                410(b). 

            

       

      	(g)  	
              Wrap-Plan
                Provisions.
                Savings Contributions (but not, for this purpose, Roth Savings
                Contributions) elected by Participants who are Highly Compensated
                Employees may be prospectively limited by the Committee without the
                Participant's consent if necessary to meet the limits of Section
                4.1(f).
                Any Participant in this Plan who is both a Highly Compensated Employee
                and
                a Participant for the Plan Year in the FFE Transportation Services,
                Inc.
                401(k) Wrap Plan ("Highly Compensated Wrap Plan Participant") may
                not
                elect to have Savings Contributions made on his behalf by payroll
                deductions under this Plan during such Plan Year. In lieu of Savings
                Contributions effected by payroll deductions on behalf of any Highly
                Compensated Wrap Plan Participant, as soon as administratively feasible
                after the end of a Plan Year, but in no event later than 21⁄2 months
                following the end of that Plan Year, the Committee shall permit the
                transfer to the Plan of all the Nonqualified Savings Contributions
                credited to the Nonqualified Savings Account of each Highly Compensated
                Wrap Plan Participant in the FFE Transportation Services, Inc. 401(k)
                Wrap
                Plan, but in no event shall an amount be transferred that would cause
                this
                Plan to exceed the limitations of Code Section 401(k)(3) set forth
                in Plan
                Section 4.1(f) for such Plan Year. In determining the permitted transfer
                amounts, the Employers may authorize a Qualified Non-Elective Contribution
                or Qualified Matching Contribution to be made for such year, and
                allocated
                as provided in Section 4.1(f)(iv)(D).

            

       

      	(h)  	
              Restrictions
                on Distributions.
                Subject to the following limitations, amounts held in the Participant's
                Savings Account may not be distributable prior to the earliest
                of:

            

       

      	(i)  	
              severance
                from employment, total and permanent disability or death. For purposes
                of
                these distribution restrictions, “severance from employment” means when an
                Employee ceases to be an Employee of the Employer maintaining the
                Plan. An
                Employee does not have a severance from employment if, in connection
                with
                a change of employment, the Employee’s new employer maintains the Plan
                with respect to the Employee, by assuming sponsorship of the Plan
                or by
                accepting a transfer of Plan assets and liabilities (within the meaning
                of
                Code Section 414(l)) with respect to the Employee;
                

            

       

      	(ii)  	
              attainment
                of age fifty-nine and one-half (591⁄2)
                years;

            

       

      	(iii)  	
              Plan
                termination without establishment of another defined contribution
                plan,
                other than an employee stock ownership plan (as defined in Code Sections
                4975(e) or 409), a simplified employee pension plan as defined in
                Code
                Section 408(k), a SIMPLE IRA plan as defined in Section 408(p), a
                plan or
                contract described in Section 403(b) or a plan described in Section
                457(b)
                or (f), at any time during the period beginning on the date of plan
                termination and ending 12 months after all assets have been distributed
                from the Plan in a lump sum; or

            

       

      	(iv)  	
              proven
                financial hardship, subject to the limitations set forth in Article
                10.

            

       

      All
        distributions that may be made pursuant to one or more of the foregoing
        distributable events are subject to the spousal and Participant consent
        requirements, if applicable, of Code Sections 401(a)(11) and 417. In addition,
        distributions that are by reason of Plan termination must be made in the
        form of
        a lump sum distribution.

       

      Section
        4.2  Roth
        Contributions.

       

      	(a)  	
              As
                of a date to be determined by the Committee and communicated in advance
                to
                Plan participants, the Plan will accept Roth Savings Contributions
                made on
                behalf of Participants. A Participant’s Roth Savings Contributions will be
                allocated to a separate account maintained for such deferrals as
                described
                in Section 5.1. Unless specifically stated otherwise, Roth Savings
                Contributions will be treated as Savings Contributions for all purposes
                under the Plan.

            

       

      Section
        4.3  Employer
        Contributions.

       

      	(a)  	
              Matching
                Employer Contributions.
                In addition to the total amount of Savings Contributions elected
                for each
                month pursuant to Section 4.1, but subject to the limits of Section
                4.3(c), each Employer shall, as a Matching Employer Contribution
                to the
                Plan, pay to the Trustee for each calendar quarter an amount equal
                to
                fifty percent (50%) of each Participant’s Savings Contributions and Roth
                Savings Contributions for each payroll period pursuant to Section
                4.1
                hereof which does not exceed four percent (4%) of his Compensation
                for
                such payroll period. Matching Employer Contributions may be made
                in either
                Company Stock in accordance with the closing market price on the
                business
                day immediately preceding the day such Contributions are made or
                in cash.
                In accordance with Section 7.2(a), such Contributions may be re-invested
                by the Trustee in accordance with Participant direction.
                

            

       

      	(b)  	
              Qualified
                Non-Elective Contributions and Qualified Matching
                Contributions.
                The Employer may, in its discretion, make Qualified Non-Elective
                Contributions and/or Qualified Matching Contributions to the Plan
                from
                time to time. Any Qualified Non-Elective Contributions made pursuant
                to
                this Section 4.3(b)(i) shall be treated as a Savings Contribution
                for
                purposes of Section 4.1(f)(i) and shall be allocated as provided
                in
                Section 4.1(f)(iv)(C). Any Qualified Matching Contributions made
                pursuant
                to this Section shall be treated as a Matching Employer Contribution
                for
                purposes of Section 4.3(c)(i) and shall be allocated as provided
                in
                Section 4.3(c)(iii)(D).

            

       

      	(c)  	
              Limitations
                on Matching Employer Contributions.
                

            

       

      	(i)  	
              Average
                Contribution Percentage Test.
                The annual allocation derived from Matching Contributions and Qualified
                Matching Contributions to a Participant's Individual Account shall
                satisfy
                one of the following tests:

            

       

      	(A)  	
              The
                Average Contribution Percentage for Participants who are Eligible
                Highly
                Compensated Employees for the Plan Year shall not exceed the Average
                Contribution Percentage for Participants who are Eligible Non-Highly
                Compensated Employees for the current Plan Year multiplied by 1.25;
                or

            

       

      	(B)  	
              The
                Average Contribution Percentage for Participants who are Eligible
                Highly
                Compensated Employees for the Plan Year shall not exceed the Average
                Contribution Percentage for Participants who are Eligible Non-Highly
                Compensated Employees for the current Plan Year multiplied by two
                (2);
                provided that the Average Contribution Percentage for Participants
                who are
                Eligible Highly Compensated Employees for the Plan Year does not
                exceed
                the Average Contribution Percentage for Participants who are Eligible
                Non-Highly Compensated Employees for the current Plan Year by more
                than
                two (2) percentage points.

            

       

      	(ii)  	
              Definitions.

            

       

      	(A)  	
              Aggregate
                Limit
                means the greater of (1) or (2), described as
                follows:

            

       

      	(1)  	
              The
                sum of:

            

       

      	(a)  	
              1.25
                multiplied by the greater of the Actual Deferral Percentage or the
                Average
                Contribution Percentage for Participants who are Eligible Non-Highly
                Compensated Employees, and

            

       

      	(b)  	
              Two
                (2) percentage points plus the lesser of Actual Deferral Percentage
                or the
                Average Contribution Percentage of Participants who are Eligible
                Non-Highly Compensated Employees. (In no event shall this amount
                exceed
                twice the lesser of the Actual Deferral Percentage or Average Contribution
                Percentage of Participants who are Eligible Non-Highly Compensated
                Employees).

            

       

      	(2)  	
              The
                sum of:

            

       

      	(a)  	
              1.25
                multiplied by the lesser of the Actual Deferral Percentage or the
                Average
                Contribution Percentage of Participants who are Eligible Non-Highly
                Compensated Employees, and

            

       

      	(b)  	
              Two
                (2) percentage points plus the greater of Actual Deferral Percentage
                or
                the Average Contribution Percentage of Participants who are Eligible
                Non-Highly Compensated Employees. (In no event shall this amount
                exceed
                twice the greater of the Actual Deferral Percentage or Average
                Contribution Percentage of Participants who are Eligible Non-Highly
                Compensated Employees).

            

       

      	(B)  	
              Average
                Contribution Percentage
                means the average, expressed as a percentage, of the Contribution
                Percentages of the Eligible Participants in a
                group.

            

       

      	(C)  	
              Contribution
                Percentage
                means the ratio, expressed as a percentage, of the sum of the Matching
                Contributions and Qualified Matching Contributions, if any, under
                the Plan
                on behalf of the Eligible Participant for the Plan Year to the Eligible
                Participant's Compensation for the Plan
                Year.

            

       

      	(D)  	
              Contribution
                Percentage Amounts
                means the sum of the Matching Contributions and Qualified Matching
                Contributions, to the extent not taken into account for purposes
                of the
                Actual Deferral Percentage Test, made under the Plan on behalf of
                the
                Participant for the Plan Year. Contribution Percentage Amounts shall
                include Forfeitures of Excess Aggregate Contributions or Matching
                Contributions allocated to the Participant's Account that shall be
                taken
                into account in the year in which the Forfeiture is allocated.
                Notwithstanding the foregoing, Contribution Percentage Amounts shall
                not
                include Matching Contributions that are forfeited either to correct
                Excess
                Aggregate Contributions or because the contributions to which they
                relate
                are Excess Deferrals, Excess Contributions, or Excess Aggregate
                Contributions. The Employer may include Qualified Non-Elective
                Contributions in the Contribution Percentage Amounts. The Employer
                also
                may elect to use Savings Contributions in the Contribution Percentage
                Amount if the Actual Deferral Percentage Test is met before the Savings
                Contributions are used in the Average Contribution Percentage Test
                and
                continues to be met following the exclusion of those Savings Contributions
                that are used to meet the Average Contribution Percentage Test. In
                the
                case of an Eligible Participant who makes no Savings Contributions
                and
                receives no Matching Contributions, the Contribution Percentage Amount
                shall be zero.

            

       

      	(E)  	
              Eligible
                Participant
                means any Employee who is eligible to make a Savings Contribution,
                if the
                Employer takes the contributions into account in calculating the
                Contribution Percentage, or to receive a Matching Contribution, including
                Forfeitures, or a Qualified Matching
                Contribution.

            

       

      	(F)  	
              Matching
                Contribution
                means an Employer Contribution made to this or any other defined
                contribution plan on behalf of a Participant on account of a Savings
                Contribution made by the Participant, or on account of a Participant's
                election to defer a portion of his or her Compensation under a plan
                maintained by the Employer.

            

       

      	(G)  	
              Qualified
                Non-Elective Contributions
                means Employer Contributions, other than Savings Contributions and
                Matching Contributions, allocated to Participants' accounts which
                are 100%
                Nonforfeitable at all times and which are subject to the distribution
                restrictions described in Section 4.1(h). Employer Contributions
                are not
                100% Nonforfeitable at all times if the Employee has a 100% Nonforfeitable
                interest because of Years of Service taken into account under a vesting
                schedule. Any Employer Contributions allocated to a Participant's
                Savings
                Account under the Plan automatically satisfy the definition of Qualified
                Non-Elective Contributions.

            

       

      	(H)  	
              Qualified
                Matching Contributions
                means Matching Employer Contributions allocated to Participants'
                accounts
                which are 100% Nonforfeitable at all times and which are subject
                to the
                distribution restrictions described in Section 4.1(h). Matching
                Contributions are not 100% Nonforfeitable at all times if the Employee
                has
                a 100% Nonforfeitable interest because of Years of Service taken
                into
                account under a vesting schedule. Any Matching Contributions allocated
                to
                a Participant's Savings Account under the Plan automatically satisfy
                the
                definition of Qualified Matching
                Contributions.

            

       

      	(iii)  	
              Fail
                Safe Provisions.
                If the initial allocations of the Matching Employer Contributions
                do not
                satisfy one of the tests set forth in paragraph (i) of this Section
                4.3(c), the Administrator shall adjust the accounts of the Participants
                pursuant to one (1) or more of the following
                options:

            

       

      	(A)  	
              Distribution
                of Excess Aggregate Contributions.
                The Administrator will determine Excess Aggregate Contributions after
                determining Excess Elective Deferrals under Section 4.1(e) and Excess
                Contributions under Section 4.1(f). If the Administrator determines
                that
                the Plan fails to satisfy the Average Contribution Percentage Test
                for a
                Plan Year, it must distribute the Excess Aggregate Contributions,
                as
                adjusted for allocable income, during the next Plan Year. However,
                the
                Employer will incur an excise tax equal to 10% of the amount of Excess
                Aggregate Contributions for a Plan Year not distributed to the appropriate
                Highly Compensated Employees during the first two and one-half (21⁄2) months
                of the next Plan Year. The Excess Aggregate Contributions are the
                amount
                of aggregate contributions allocated on behalf of the Highly Compensated
                Employees which causes the Plan to fail to satisfy the Average
                Contribution Percentage Test. The Administrator shall make distributions
                to each Highly Compensated Employee of his or her respective share
                of the
                Excess Aggregate Contributions in accordance with the following steps:
                

            

       

      	(1)  	
              The
                Administrator shall calculate total Excess Aggregate Contributions
                for the
                Highly Compensated Employees.

            

       

      	(2)  	
              The
                Administrator shall calculate the total dollar amount by which the
                Excess
                Aggregate Contributions for the Highly Compensated Employees must
                be
                reduced in order to satisfy the Average Contribution Percentage
                Test.

            

       

      	(3)  	
              The
                Administrator shall calculate the total dollar amount of the Excess
                Aggregate Contributions for each Highly Compensated Employee.
                

            

       

      	(4)  	
              The
                Administrator shall reduce the Excess Aggregate Contributions of
                the
                Highly Compensated Employee(s) with the highest dollar amount of
                Excess
                Aggregate Contributions by refunding such contributions to such Highly
                Compensated Employee(s) in the amount required to cause the dollar
                amount
                of such Highly Compensated Employee(s)' Matching Employer Contributions
                to
                equal the dollar amount of the Matching Employer Contributions of
                the
                Highly Compensated Employee(s) with the next highest dollar amount
                of such
                contributions.

            

       

      	(5)  	
              If
                the total dollar amount distributed pursuant to Step (4) above is
                less than the total dollar amount of Excess Aggregate Contributions,
                Step
                (4) shall be applied to the Highly Compensated Employee(s) with the
                next
                highest dollar amount of Excess Aggregate Contributions until the
                total
                amount of distributed Excess Aggregate Contributions equals the total
                dollar amount calculated in Step (2).

            

       

      	(6)  	
              When
                calculating the amount of a distribution under Step (4), if a lesser
                reduction, when added to any amounts already distributed under this
                Section, would equal the total amount of distributions necessary
                to permit
                the Plan to satisfy the requirements of Section 4.3(c)(i), the lesser
                amount shall be distributed from the
                Plan.

            

       

      	(B)  	
              Allocable
                Income.
                To determine the amount of the corrective distribution required under
                this
                Section, the Administrator must calculate the allocable income for
                the
                Plan Year in which the Excess Aggregate Contributions arose. The
                income
                allocable to Excess Aggregate Contributions is equal to the sum of
                the
                allocable gain or loss for the Plan Year.

            

       

      	(1)  	
              Method
                of Allocating Income.
                The Administrator may use any reasonable method for computing the
                income
                allocable to Excess Aggregate Contributions, provided that the method
                does
                not violate Code Section 401(a)(4), is used consistently for all
                Participants and for all corrective distributions under the Plan
                for the
                Plan Year, and is used by the Plan for allocating income to Participants'
                Accounts. 

            

       

      	(2)  	
              Alternative
                Method of Allocating Income.
                A
                Plan may allocate income to Excess Aggregate Contributions by multiplying
                the income for the Plan Year allocable to Matching Contributions
                and
                amounts treated as Matching Contributions by a fraction. The numerator
                of
                the fraction is the Excess Aggregate Contributions for the Employee
                for
                the Plan Year. The denominator of the fraction is equal to the sum
                of:

            

       

      	(a)  	
              The
                total account balance of the Employee attributable to Matching
                Contributions and amounts treated as Matching Contributions as of
                the
                beginning of the Plan Year; plus

            

       

      	(b)  	
              The
                Matching Contributions and amounts treated as Matching Contributions
                for
                the Plan Year.

            

       

      	(C)  	
              Characterization
                of Excess Aggregate Contributions.
                The Administrator will treat a Highly Compensated Employee's allocable
                share of Excess Aggregate Contributions in the following priority:
                (i)
                first as attributable to his or her Matching Contributions allocable
                with
                respect to Excess Contributions determined under the Actual Deferral
                Percentage Test described in Section 4.1(f); (ii) then on a pro rata
                basis
                to Matching Contributions and to the Savings Contributions relating
                to
                those Matching Contributions which the Administrator has included
                in the
                Average Contribution Percentage Test; (iii) then on a pro rata basis
                to
                Savings Contributions which are mandatory contributions, if any,
                and to
                the Matching Contributions allocated on the basis of those mandatory
                contributions; and (iv) last to Qualified Non-Elective Contributions
                used
                in the Average Contribution Percentage Test. To the extent the Highly
                Compensated Employee's Excess Aggregate Contributions are attributable
                to
                Matching Contributions, and he or she is not 100% vested in the Account
                Balance attributable to Matching Contributions, the Administrator
                will
                distribute only the vested portion and forfeit the nonvested portion.
                The
                vested portion of the Highly Compensated Employee's Excess Aggregate
                Contributions attributable to Matching Employer Contributions is
                the total
                amount of the Excess Aggregate Contributions (as adjusted for allocable
                income) multiplied by his or her vested percentage (determined as
                of the
                last day of the Plan Year for which the Employer made the Matching
                Contribution).

            

       

      	(D)  	
              Qualified
                Non-Elective and Qualified Matching Contributions.
                The Employer shall make Qualified Non-Elective Contributions or Qualified
                Matching Contributions that, in combination with Matching Contributions,
                satisfy one of the tests set forth in paragraph (i) of Section 4.3(c),
                taking into account the Administrator's action under any option herein.
                Any
                such contribution shall be treated as a Participant Savings Contribution
                and shall be allocated to the Account of each Participant. The total
                of
                these
                contributions shall be at least equal to the amount necessary to
                satisfy the requirements of Section 4.3(c)(i) and shall be allocated
                first
                to the lowest-paid such Participant, subject to Section 5.6, and
                then to
                the next lowest-paid Participant, subject to Section 5.6, and thereafter
                in like manner in ascending order until the limitations of Section
                4.3(c)(i) are met. Such additional contributions shall be fully vested
                and
                subject to the distribution restrictions of Section 4.1(h) hereof,
                and
                must be made prior to the last day of the twelve month period immediately
                following the Year to which they relate. The Qualified Non-Elective
                and
                Qualified Matching Contributions may be treated as Matching Contributions
                provided that each of the following requirements, to the extent
                applicable, is satisfied:

            

       

      	(1)  	
              The
                amount of Employer Contributions, including those Qualified Non-Elective
                and Qualified Matching Contributions treated as Matching Contributions
                for
                purposes of the Average Contribution Percentage Test, satisfies the
                requirements of Code Section 401(a)(4).

            

       

      	(2)  	
              The
                amount of Employer Contributions, excluding those Qualified Non-Elective
                Contributions and Qualified Matching treated as Matching Contributions
                for
                purposes of the Average Contribution Percentage Test and those Qualified
                Non-Elective Contributions treated as Elective and Qualified Matching
                Contributions under Treasury Regulations Section 1.401(k)-1(b)(5)
                for
                purposes of the Actual Deferral Percentage Test, satisfies the
                requirements of Code Section 401(a)(4).

            

       

      	(3)  	
              The
                Savings Contributions, including those treated as Qualified Matching
                Contributions for purposes of the Average Contribution Percentage
                Test,
                satisfy the requirements of Code Section 401(k)(3) for the Plan
                Year.

            

       

      	(4)  	
              The
                Qualified Non-Elective and Qualified Matching Contributions are allocated
                to the Employee under the Plan as of a date within the Plan Year,
                and the
                Savings Contributions satisfy the requirements of Treasury Regulations
                Section 1.401(k)-1(b)(4)(i) for the Plan
                Year.

            

       

      	(5)  	
              The
                plan that takes Qualified Non-Elective Contributions and Qualified
                Matching Contributions into account in determining whether Savings
                and
                Matching Contributions satisfy the requirements of Code Section
                401(m)(2)(A), and the plans to which the Qualified Non-Elective
                Contributions and Qualified Matching Contributions are made, are
                or could
                be aggregated for purposes of Code Section
                410(b).

            

       

      	(E)  	
              Forfeiture
                of Non-Vested Matching Employer Contributions.
                Matching Employer Contributions that are not vested may be forfeited
                to
                correct Excess Aggregate Contributions. Notwithstanding the foregoing
                sentence, Excess Aggregate Contributions for a Plan Year may not
                remain
                unallocated or be allocated to a suspense account for allocation
                to one or
                more Employees in any future year. Forfeitures of Matching Contributions
                to correct Excess Aggregate Contributions shall be applied to reduce
                the
                Employers' Matching Employer Contributions for the Plan Year in which
                the
                excess arose.

            

       

      	(d)  	
              Notwithstanding
                the foregoing provisions of this Section 4.3 the Employer Contribution
                specified therein shall be limited by and in no event shall exceed
                the
                following limits:

            

       

      	(i)  	
              The
                total amount deductible by such Employer under Code Section 404;
                or
                

            

       

      	(ii)  	
              The
                maximum amount that may be allocated to a particular Participant's
                Accounts under the annual additions limit of Section 5.6 (and, if
                applicable, Article 12).

            

       

      Section
        4.4  Discretionary
        Employer Contributions.

       

      For
        each
        Plan Year, the amount of the Discretionary Employer Contribution to the Trust
        Fund will equal the amount, if any, the Employer may from time to time determine
        and authorize. Although the Employer may contribute to this Plan whether
        or not
        it has net profits, the Employer intends the Plan to be a profit sharing
        plan,
        including a qualified cash or deferred arrangement, and an employee stock
        ownership plan, for all purposes of the Code. The Employer shall not authorize
        contributions at such times or in such amounts that the Plan in operation
        discriminates in favor of Highly Compensated Employees. Notwithstanding the
        foregoing, the Discretionary Employer Contribution for any Plan Year shall
        not
        exceed the maximum amount allowable as a deduction to the Employer under
        Code
        Section 404. The Discretionary Employer Contributions shall be allocated
        to the
        Participants' Discretionary Employer Contribution Accounts under the formula
        provided in Section 5.4.

       

      Section
        4.5  Payment
        of Employer Contributions.

       

      	(a)  	
              Matching
                Employer Contributions shall be paid to the Trustee as soon as
                administratively feasible following the payroll period to which they
                relate. Notwithstanding the preceding sentence, Employer Contributions
                shall be paid to the Trustee no later than the date prescribed by
                law for
                filing such Employer's federal income tax return for its taxable
                year
                ending with or within the Plan Year for which such contribution is
                made,
                including extensions which have been granted for the filing of such
                tax
                return. The Trustee shall hold all such Employer Contributions subject
                to
                the provisions of the Plan and Trust Agreement, and no part of such
                contributions shall be used for, or diverted to, any purpose other
                than
                those specified in the Plan and Trust
                Agreement.

            

       

      	(b)  	
              Notwithstanding
                anything to the contrary contained herein, an Employer Contribution
                for a
                Plan Year may be returned to the Employer to the extent that the
                amount of
                such contribution exceeds the amount that such Employer would have
                contributed for such Plan Year but for (i) a good faith mistake of
                fact
                made in determining the amount of such contribution or (ii) a good
                faith
                mistake in determining that the contribution made would be deductible
                under Code Section 404.

            

       

      The
        return of a portion of an Employer Contribution shall be subject to the
        following conditions: (i) earnings attributable to the amount to be returned
        may
        not be distributed to the Employer but losses attributable thereto must reduce
        the amount to be returned; (ii) the amount to be returned shall be limited
        so as
        to avoid reducing the balance in the Participant's Discretionary Employer
        Contribution Account and Matching Employer Contribution Account to less than
        the
        balance which would have been in such account if the amount attributable
        to such
        mistake had not been contributed; (iii) the return of an amount attributable
        to
        a mistake of fact may only be made within one year after such amount was
        paid to
        the Trustee; and (iv) the return of an amount attributable to a mistake in
        determining such deductibility may only be made within one year after the
        disallowance of such deduction. Except as provided in the preceding sentence,
        an
        appropriate adjustment shall be made in the Participant's Discretionary Employer
        Contribution Account and Matching Employer Contribution Account, if any,
        to
        reflect the return of a portion of an Employer Contribution.

       

      Section
        4.6  Rollover
        Contributions 

       

      	(a)  	
              Upon
                approval by the Committee, an Employee who has received an eligible
                rollover distribution, as defined in Code Section 402(c)(4) may contribute
                such eligible rollover distribution to a Rollover Account under the
                Plan;
                provided, however, that any rollover contribution from a Roth Savings
                Contribution account in another qualified plan shall be segregated
                and
                held in a Roth Rollover Account in the Plan. An Employee may also
                transfer
                to a Rollover Account under the Plan (upon Committee approval) an
                eligible
                rollover distribution from an individual retirement account or from
                an
                individual retirement annuity, but only if such distribution or proceeds
                qualify for tax-free rollovers under Code Section 408(d)(3)(A)(ii).
                The
                Plan will accept a direct rollover of an eligible rollover distribution
                from (i) a qualified plan described in Section 401(a) or 403(a) of
                the
                Code; (ii) an annuity contract described in Section 403(b) of the
                Code,
                excluding after-tax employee contributions; and (iii) an eligible
                plan
                under Section 457(b) of the Code which is maintained by a state,
                political
                subdivision of a state, or any agency or instrumentality of a state
                or
                political subdivision of a state. Notwithstanding the foregoing,
                in no
                event shall an eligible rollover distribution be contributed to an
                ESOP
                Account under the Plan.

            

       

      	(b)  	
              Any
                contribution under this Section 4.6 shall be treated as the contribution
                of a "Rollover Amount" and, except in the case of trustee-to-trustee
                transfers, shall be subject to the following requirements and
                conditions:

            

       

      	(i)  	
              The
                Employee must transfer the Rollover Amount or cause to be transferred
                such
                amount to the Committee for delivery to the Trustee or, if the Committee
                directs, to the Trustee, in time for the Trustee to receive such
                amount on
                or before the 60th day after the day on which such amount was received
                by
                the Employee.

            

       

      	(ii)  	
              The
                Employee must furnish such evidence as the Committee may require
                that such
                Rollover Amount includes all of (and does not include anything other
                than)
                the amount required to be transferred by Code Section 402(c)(4) or
                408(d)(3)(A)(ii), as appropriate.

            

       

      	(c)  	
              The
                Committee shall not deliver or cause the delivery of any Rollover
                Amount
                to the Trustee prior to its receipt of such evidence as may be required
                by
                it pursuant to Section 4.6(b) and, except in the case of
                trustee-to-trustee transfers, shall not deliver or cause the delivery
                of
                any Rollover Amount to the Trustee if such Rollover Amount would
                not be
                received by the Trustee on or before the 60th day after the day on
                which
                such amount was received by the Employee who wishes to transfer such
                amount to the Plan.

            

       

      	(d)  	
              An
                Employee shall be eligible to transfer amounts to a Rollover Account
                pursuant to this Section 4.6 notwithstanding the provisions of Article
                3
                hereof.

            

       

      	(e)  	
              An
                Employee who establishes and maintains a Rollover Account or Accounts
                shall be deemed to be a Participant under the Plan notwithstanding
                the
                provisions of Article 3, but no such Employee shall be entitled to
                share
                in any Employer Contributions or elect Savings Contributions unless
                he is
                otherwise participating under Article 3.

            

       

      	(f)  	
              Fees
                and expenses of the Trustee attributable to the maintenance of Rollover
                Accounts shall be paid as provided in Section
                16.7.

            

       

      	(g)  	
              Articles
                6, 8, and 11 shall govern the time and method of payment from an
                Employee's Rollover Accounts.

            

       

      Section
        4.7  Special
        Rules under USERRA. 

       

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

       

      Section
        4.8  Special
        Rules Regarding Qualified Hurricane Distributions.

       

      Subject
        to and in accordance with the provisions of Section 4.6, as modified by EGTRRA,
        the Plan will accept recontribution of the following Qualified
        Distributions: 

       

      	(a)  	
              Qualified
                Hurricane Distribution.
                A
                Participant may repay to the Plan all or any portion of the amounts
                received under Section 10.1(a)(i)(A)(7) as a Qualified Hurricane
                Distribution, provided such amounts are repaid within the period
                commencing on the date immediately following the date the Participant
                received the Qualified Hurricane Distribution and ending on the third
                anniversary of such date. The Participant may contribute a single
                lump sum
                repayment or a series of partial repayments within the three (3)
                year
                period. However, the total of all such repayments shall not exceed
                the
                total amount distributed to the Participant under Section
                10.1(a)(i)(A)(7). The Committee shall adopt such procedures as are
                necessary to implement repayments under this
                section.

            

       

      A
        Qualified Hurricane Distribution is any distribution a Participant received
        from
        the Plan under Section 10.1(a)(i)(A)(7) on account of an economic loss if
        all of
        the following conditions apply:

       

      	(i)  	
              The
                distribution was made: 

            

       

      
        	 	
                (A)

              	
                after
                  August 24, 2005 and before January 1, 2007 for Hurricane Katrina;
                  

              

      

       

      
        	 	
                (B)

              	
                after
                  September 22, 2005 and before January 1, 2007 for Hurricane Rita;
                  and
                  

              

      

       

      
        	 	
                (C)

              	
                after
                  October 22, 2005 and before January 1, 2007 for Hurricane Wilma.
                  

              

      

       

      	(ii)  	
              The
                Participant’s main home was located in a qualified hurricane disaster area
                on the date listed below for that area:

            

       

      
        	 	
                (A)

              	
                August
                  28, 2005, for the Hurricane Katrina disaster area. For this purpose,
                  the
                  Hurricane Katrina disaster area includes the states of Alabama,
                  Florida,
                  Louisiana and Mississippi.

              

      

       

      
        	 	
                (B)

              	
                September
                  23, 2005, for the Hurricane Rita disaster area. For this purpose,
                  the
                  Hurricane Rita disaster area includes the states of Louisiana and
                  Texas.

              

      

       

      
        	 	
                (C)

              	
                October
                  23, 2005, for the Hurricane Wilma disaster area. For this purpose,
                  the
                  Hurricane Wilma disaster area includes the state of
                  Florida.

              

      

       

      	(iii)  	
              The
                Participant sustained an economic loss because of Hurricane Katrina,
                Rita,
                or Wilma and the Participant’s main home was in that hurricane disaster
                area on the date shown above for that hurricane.
                

            

       

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        FIVE  

       

       

      ALLOCATIONS

       

      Section
        5.1  Accounts. 

       

      The
        Committee shall maintain or cause to be maintained adequate records to disclose
        the interest in the Trust of each Participant, Former Participant, and
        Beneficiary. Such records shall be in the form of individual accounts, and
        credits and charges shall be made to such accounts in the manner herein
        described. When appropriate, a Participant shall have, as separate accounts,
        a
        Matching Employer Contribution Account, a Discretionary Employer Contribution
        Account, a Rollover Account, a Roth Rollover Account, a Savings Account,
        a Roth
        Savings Account, a W & B Plan Rollover Account, an ESOP Transfer Account,
        and an ESOP Rollover Account. The maintenance of separate accounts is only
        for
        accounting purposes, and a segregation of the Trust Assets to each account
        shall
        not be required. Each Account shall reflect its allocable share of income,
        loss,
        appreciation, and depreciation of the Trust Assets. Distributions made from
        an
        Account shall be charged to such Account as of the Valuation Date on which
        the
        distribution is made.

       

      Section
        5.2  Allocation
        of Income and Expense. 

       

      	(a)  	
              Except
                as otherwise provided in Section 7.3(a), income of the Trust Assets
                shall
                be allocated as of each Valuation Date to the Accounts that generated
                such
                income.

            

       

      	(b)  	
              Except
                as otherwise provided by Sections 7.3(b) and 16.7, expenses paid
                from the
                Trust Assets and not reimbursed by an Employer shall be allocated
                as of
                each Valuation Date to the Accounts of Participants, Former Participants
                and Beneficiaries who had undistributed balances in their Accounts
                on such
                last preceding Valuation Date in proportion to the balances in such
                Accounts on such date, but after first reducing each such account
                balance
                by any distributions from the account since such last preceding Valuation
                Date.

            

       

      	(c)  	
              Upon
                instruction from the Committee, the Trustee shall distribute to each
                Participant with an ESOP Account, in cash, all or a portion of the
                dividends paid to the Plan with respect to Company Stock held by
                the Plan
                and allocated to ESOP Accounts, within ninety (90) days after the
                close of
                the Plan Year in which such dividends are paid. The dividends, if
                distributed in accordance with this Section, shall be paid out as
                if each
                Participant directly owned the numbers of shares of Company Stock
                allocated to the Participant’s ESOP Accounts (including fractional shares
                so allocated), as of the Accounting Date corresponding with, or if
                none,
                next following the record date for such dividend declaration. Such
                dividend payments shall not be considered to be distributions under
                the
                Plan.

            

       

      Section
        5.3  Allocation
        of Savings Contributions. 

       

      Savings
        Contributions elected by a Participant during any calendar month shall be
        credited and allocated to his Savings Account no later than the fifteenth
        (15th)
        business day of the month following the month such Savings Contributions
        are
        effected by payroll deduction.

       

      Section
        5.4  Allocation
        of Employer Contributions. 

       

      	(a)  	
              Matching
                Employer Contributions.
                Each Participant who is a Participant during a payroll period is
                entitled
                to share in the Matching Employer Contribution for such payroll period.
                Subject to Section 5.6, the Committee shall instruct the Trustee
                to
                allocate the portion of the Matching Employer Contribution for each
                payroll period to the Matching Employer Contribution Account of each
                Participant or Former Participant for whom Savings Contributions
                were made
                during such payroll period pursuant to Section
                4.1(a).

            

       

      	(b)  	
              Discretionary
                Employer Contributions.
                Each Participant who is employed on the last business day of the
                Plan Year
                is entitled to share in the allocation of Discretionary Employer
                Contributions, if any, for such Plan Year. The Committee shall allocate
                the Discretionary Employer Contributions, if any, to each eligible
                Participant's Discretionary Employer Contribution Account in the
                same
                ratio that each Participant's Annual Compensation for the Plan Year
                bears
                to the total Annual Compensation of all Participants for such Plan
                Year.
                Notwithstanding the preceding, a Former Participant who would have
                been a
                Participant on the last business day of the Plan Year but for his
                death,
                Disability, Early Retirement, or Retirement during the Plan Year
                shall be
                entitled to share in the allocation of the Discretionary Contributions,
                if
                any, for such Plan Year. 

            

       

      	(c)  	
              Qualified
                Non-Elective Contributions and Qualified Matching
                Contributions.
                Each Participant who is a Non-Highly Compensated Employee and who
                is a
                Participant on the last business day of the Plan Year and each Former
                Participant who is a Non-Highly Compensated Employee and who would
                have
                been a Participant on the last business day of the Plan Year but
                for his
                death, Disability, Early Retirement, or Retirement during the Plan
                Year,
                is entitled to share in the allocation of Qualified Non-Elective
                Contributions and/or Qualified Matching Contributions, if any, for
                such
                Plan Year. Such contributions shall be allocated pursuant to the
                provisions of Section 4.3(b)(i).

            

       

      Section
        5.5  Forfeitures. 

       

      Amounts
        forfeited pursuant to Sections 5.6 or 6.3 shall be used to pay Plan expenses
        in
        the Plan Year in which they are forfeited. To the extent such Forfeitures
        exceed
        Plan expenses in such Plan Year, they shall be used to reduce the Matching
        Employer Contributions to the Plan under Section 4.2(a) during the subsequent
        Plan Year, unless the Employer directs that such Forfeitures are to be used
        to
        reduce the Matching Employer Contributions to the Plan under Section 4.3(a)
        during the Plan Year in which they are forfeited. 

       

      Section
        5.6  Maximum
        Additions. 

       

      	(a)  	
              Defined
                Contribution Plan Limits.
                Except to the extent permitted under Section 414(v) of the Code,
                the
                annual addition that may be contributed or allocated to a Participant’s
                account under the Plan for any taxable year shall not exceed the
                lesser
                of:

            

       

      	(i)  	
              $40,000,
                as adjusted for increases in the cost-of-living under Section 415(d)
                of
                the Code, or

            

       

      	(ii)  	
              100
                percent of the Participant’s compensation, within the meaning of Section
                415(c)(3) of the Code, for the taxable
                year.

            

       

      	(b)  	
              Estimation.
                Prior to the determination of the Participant's actual Compensation
                for a
                Limitation Year, the Committee may determine the Maximum Permissible
                Amount on the basis of the Participant's estimated Compensation defined
                in
                Section 5.6(e) for the Limitation Year. The Committee must make this
                determination on a reasonable and uniform basis for all Participants
                similarly situated. The Committee must reduce any Employer Contributions
                (including any allocation of Forfeitures) based on estimated Compensation
                by any Excess Amounts carried over from prior years. As soon as
                administratively feasible after the end of the Limitation Year, the
                Committee will determine the Maximum Permissible Amount for the Limitation
                Year based on the Participant's actual Compensation for the Limitation
                Year.

            

       

      	(c)  	
              Disposition
                of Excess Amount.
                If, pursuant to Section 5.6(b) or because of an allocation of Forfeitures,
                there is an Excess Amount attributable to a Participant for a Limitation
                Year, then the Committee will dispose of the Excess Amount as
                follows:

            

       

      	(i)  	
              The
                Committee shall return any nondeductible Participant voluntary after
                tax
                contributions to the Participant to the extent that the return would
                reduce the Excess Amount.

            

       

      	(ii)  	
              If,
                after the application of clause (i) an Excess Amount still exists,
                and the
                Plan covers the Participant at the end of the Limitation Year, then
                the
                Committee will use the Excess Amounts to reduce future Employer
                Contributions (including any allocation of Forfeitures) under the
                Plan for
                the next Limitation Year and for each succeeding Limitation Year,
                as is
                necessary, for the Participant. The Participant may elect to limit
                Compensation for allocation purposes to the extent necessary to reduce
                the
                allocation for the Limitation Year to the Maximum Permissible Amount
                and
                eliminate the Excess Amount.

            

       

      	(iii)  	
              If,
                after the application of clause (i) an Excess Amount still exists
                and the
                Plan does not cover the Participant at the end of the Limitation
                Year,
                then the Committee shall hold the Excess Amount in a suspense account
                and
                use the Excess Amount to reduce Employer Contributions on behalf
                of
                remaining Participants and shall allocate and reallocate to the Individual
                Accounts of remaining Participants in succeeding Limitation Years
                to the
                extent permissible under the foregoing limita-tions, prior to any
                further
                Annual Additions to the Plan. If the Plan should be ter-minated or
                contributions should be completely discon-tinued, the funds in the
                suspense account will be allocated to the extent not prohibited by
                Code
                Section 415. Any suspense account shall not be adjusted for investment
                gains or losses of the Trust Fund.

            

       

      	(iv)  	
              The
                Committee will not distribute any Excess Amount(s) to Participants
                or to
                Former Participants.

            

       

      	(v)  	
              Notwithstanding
                the first sentence and the foregoing paragraphs (i), (ii), (iii),
                and
                (iv), the Committee may distribute Elective Deferrals (within the
                meaning
                of Code Section 402(g)(3)) or return voluntary or mandatory Employee
                Contributions, to the extent the distribution or return would reduce
                the
                excess amounts in the Participant's
                account.

            

       

      	(d)  	
              Multiple
                Defined Contribution Plan Limits.
                If the Employer maintains any other qualified defined contri-bution
                plan,
                the amount of the Annual Addition which may be allocated to a
                Participant's Individual Account in this Plan shall not exceed the
                Maximum
                Permissible Amount, reduced by the amount of Annual Additions to
                such
                Participant's accounts for the same Limitation Year in the other
                plan(s).
                The Excess Amount attributed to this Plan equals the product
                of:

            

       

      	(i)  	
              the
                total Excess Amount allocated as of such date (including any amount
                the
                Committee would have allocated but for the limitations of Code Section
                415), multiplied by

            

       

      	(ii)  	
              the
                ratio of:

            

       

      	(A)  	
              the
                amount allocated to the Participant as of such date under this Plan,
                divided by

            

       

      	(B)  	
              the
                total amount allocated as of such date under all qualified defined
                contribution plans (determined without regard to the limitations
                of Code
                Section 415).

            

       

      	(e)  	
              Definitions.
                For purposes of the limitations of Code Section 415 set forth in
                this
                Section, the following definitions shall
                apply:

            

       

      	(i)  	
              Annual
                Additions
                means the sum of the following amounts allocated on behalf of a
                Participant for a Limitation Year:

            

       

      	(A)  	
              all
                Employer Contributions;

            

       

      	(B)  	
              all
                Forfeitures;

            

       

      	(C)  	
              all
                Employee Contributions;

            

       

      	(D)  	
              excess
                contributions described in Code Section 401(k) and excess aggregate
                contributions described in Code Section 401(m), irrespective of whether
                the Plan distributes or forfeits such Excess Amounts, and excess
                deferrals
                described in Code Section 402(g), unless the excess deferrals are
                distributed no later than the first April 15 following the close
                of the
                Participant's taxable year;

            

       

      	(E)  	
              excess
                Amounts reapplied to reduce Employer Contributions under this Section
                5.6;

            

       

      	(F)  	
              amounts
                allocated after March 31, 1984 to an individual medical account,
                as
                defined in Code Section 415(l)(2), included as part of a pension
                or
                annuity plan maintained by the Employer;

            

       

      	(G)  	
              contributions
                paid or accrued after December 31, 1985, in taxable years ending
                after
                that date, which are attributable to post-retirement medical benefits
                allocated to the separate account of a Key Employee as defined in
                Code
                Section 419A(d)(3), under a welfare benefit fund, as described in
                Code
                Section 419(e), maintained by the Employer;
                and

            

       

      	(H)  	
              allocations
                under a simplified employee pension plan.

            

       

      	(ii)  	
              Compensation
                means the total amount of salary, wages, commissions, bonuses and
                overtime, paid or otherwise includable in the gross income of a
                Participant during the Limitation Year plus any amounts excluded
                from
                income pursuant to Code Sections 125, 132(f) and 401(k), but
                excluding:

            

       

      	(A)  	
              Employer
                contributions to any deferred compensation plan (to the extent the
                contributions are not included in the Participant's gross income
                for the
                taxable year in which contributed) or simplified employee pension
                under
                Code Section 408(k) (to the extent the contributions are excludable
                from
                the Participant's gross income) (other than any amounts excluded
                from
                income pursuant to Code Sections 401(k), 125 and
                132(f);

            

       

      	(B)  	
              distributions
                from any plan of deferred compensation, whether or not such amounts
                are
                includable in the gross income of the Employees when
                distributed;

            

       

      	(C)  	
              amounts
                realized from the exercise of any nonqualified stock option, or when
                restricted stock becomes freely transferable or is no longer subject
                to a
                substantial risk of forfeiture;

            

       

      	(D)  	
              amounts
                realized from the sale, exchange, or other disposition of stock acquired
                under a qualified stock option described in Part II, Subchapter D,
                Chapter
                1 of the Code;

            

       

      	(E)  	
              premiums
                paid by the Employer for group term life insurance (to the extent
                the
                premiums are not includable in the Participant's gross income);
                contributions by the Employer to an annuity under Code Section 403(b)
                (to
                the extent not includable in the Participant's gross income); and
                any
                other amounts received under any Employer sponsored fringe benefit
                plan
                (to the extent not includable in the Participant's gross
                income);

            

       

      	(F)  	
              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; and 

            

       

      	(G)  	
              any
                amount otherwise treated as an Annual Addition under Code Section
                415(l)(1).

            

       

      	(iii)  	
              Average
                Compensation
                means the average compensation during a Participant's highest three
                (3)
                consecutive Years of Service, which period is the three (3) consecutive
                calendar years (or the actual number of consecutive years of employment
                for those Employees who are employed for less than three (3) consecutive
                years with the Employer) during which the Participant had the greatest
                aggregate compensation from the Employer

            

       

      	(iv)  	
              Notwithstanding
                the foregoing, in the case of a Participant (i) who is permanently
                and
                totally disabled (as provided in Code Section 415(c)(3)(C)), (ii)
                who is
                not a Highly Compensated Employee, and (iii) with respect to whom
                the
                Employer elects to have this subparagraph apply, the term Compensation
                shall mean the Compensation the Participant would have received for
                the
                Plan Year if the Participant had been paid at the rate of Compensation
                paid immediately before becoming permanently and totally disabled.
                This
                subparagraph (iv) shall apply only if contributions made with respect
                to
                amounts treated as Compensation under this subparagraph (iv) are
                nonforfeitable when made.

            

       

      	(v)  	
              Employer
                means the Employer that adopts this Plan. All Related Employers shall
                be
                considered a single Employer for purposes of applying the limitations
                of
                this Section.

            

       

      	(vi)  	
              Excess
                Amount
                means the excess of the Participant's Annual Additions for the Limitation
                Year over the Maximum Permissible Amount, less administrative charges
                allocable to such Excess Amount.

            

       

      	(vii)  	
              Limitation
                Year
                means the Limitation Year specified in the Plan or, if none is specified,
                the calendar year.

            

       

      	(viii)  	
              Maximum
                Permissible Amount
                means, with respect to any Participant for a Limitation Year, the
                lesser
                of:

            

       

      	(A)  	
              $30,000
                (with such amount to be adjusted automatically to reflect any
                cost-of-living adjustment authorized by section 415(d) of the Code);
                or

            

       

      	(B)  	
              one
                hundred percent (100%) of the Participant's Compensation, within
                the
                meaning of Code Section 415(c)(3).

            

       

      	(ix)  	
              Projected
                Annual Benefit
                means the benefit of the Participant payable annually in the form
                of a
                straight life annuity (with no ancillary benefits) under the terms
                of a
                defined benefit plan to which employees do not contribute and under
                which
                no rollover contributions are made, assuming that the Participant
                continues employment until Normal Retirement Age (or current age,
                if
                later), compensation continues at the same rate as in effect in the
                Limitation Year under consideration until the date of Normal Retirement
                Age, and all other relevant factors used to determine benefits under
                the
                defined benefit plan remain constant as of the current Limitation
                Year for
                all future Limitation Years.

            

       

      Section
        5.7  Notification
        to Participants. 

       

      At
        least
        once annually the Committee shall advise each Participant or Former Participant
        of the then-composition and value of his Accounts.

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        SIX  

       

       

      VESTING

       

      Section
        6.1  Retirement,
        Death, or Disability. 

       

      If
        a
        Participant ceases to be an Employee due to the Participant's Retirement,
        Early
        Retirement, death, or Disability, such Participant, Former Participant, or
        the
        Beneficiary, as the case may be, shall be fully vested in and entitled to
        the
        total amount credited to each of his Accounts.

       

      Section
        6.2  Separated
        From Service 

       

      If
        a
        Participant or Former Participant is Separated from Service for any reason
        other
        than Retirement, Early Retirement, death, or Disability, such Participant
        or
        Former Participant, or the Beneficiary, as the case may be, shall be entitled
        to
        the sum of the following:

       

      	(a)  	
              The
                total amount credited to the Participant's Savings Account, Roth
                Savings
                Contributions Account, Rollover Account, Roth Rollover Account, and
                ESOP
                Rollover Account , if any; and

            

       

      	(b)  	
              The
                Vested Percentage at the date he is Separated from Service, of the
                total
                amount credited to the Participant's Matching Employer Contribution
                Account, Discretionary Employer Contribution Account, W & B Plan
                Rollover Account, and ESOP Transfer Account, if any. The Vested Percentage
                shall be determined in accordance with the following
                schedule:

            

       

      
        	
                 

                 

                Years
                  of Service

                 

              	
                 

                 

                Nonforfeitable
                  Percentage

                 

              
	
                 

                 

                Less
                  than 2 years

                 

              	
                 

                 

                0%

                 

              
	
                 

                 

                At
                  least 2 but less than 3 years

                 

              	
                 

                 

                20%

                 

              
	
                 

                 

                At
                  least 3 but less than 4 years

                 

              	
                 

                 

                40%

                 

              
	
                 

                 

                At
                  least 4 but less than 5 years

                 

              	
                 

                 

                60%

                 

              
	
                 

                 

                At
                  least 5 but less than 6 years

                 

              	
                 

                 

                80%

                 

              
	
                 

                 

                At
                  least 6 or more years

                 

              	
                 

                 

                100%

                 

              

      

      	(c)  	
              If
                the Trustee pays any amount outstanding to the credit of a Participant
                in
                the Participant's Discretionary Employer Account, Matching Employer
                Account, or W & B Plan Rollover Account while the Participant is not
                fully vested in such account(s), other than a Cashout Distribution
                defined
                in Section 6.3(b), and prior to the date on which the Participant
                shall
                incur five (5) consecutive one year Breaks in Service, his or her
                vested
                and undistributed Discretionary Employer Account, Matching Employer
                Account, and W & B Plan Rollover Account shall be determined at any
                time prior to and including the date on which the Participant shall
                incur
                five (5) consecutive one year Breaks in Service under the following
                formula:

            

       

      X
        = P(AB
        + (RxD)) - (RxD).

      

      For
        this
        formula, the variables represent the following factors:

      

      X
        is the
        value of the vested portion of the Participant's account;

      

      P
        is the
        Participant's Nonforfeitable percentage at the relevant time;

      

      
        	 	 	
                AB
                  is the account balance of the Participant's account at the relevant
                  time;

              

      

      

      D
        is the
        amount of the distribution; and

      

      R
        is the
        ratio of the Participant's account balance at the relevant time to the
        Participant's account balance after the distribution.

      

      	(d)  	
              Notwithstanding
                the foregoing, a Participant's Vested Percentage in his W & B Plan
                Rollover Account and ESOP Accounts, if any, shall never be less than
                his
                vested percentage in the assets transferred to such Account at the
                time
                such assets were transferred to the Plan from the W & B Refrigeration
                Service Co., Inc. Employees' Profit-Sharing Plan and Trust, the FFE
                Transportation Services ESOP, or the Conwell ESOP,
                respectively.

            

       

      Section
        6.3  Computation
        of Years of Service for Vesting. 

       

      	(a)  	
              General.
                For purposes of computing a Participant's or Former Participant's
                Vested
                Percentage of his Discretionary Employer Contribution Account, Matching
                Employer Contribution Account, and ESOP Transfer Account, each Participant
                or Former Participant shall be credited with all Years of Service
                to which
                he is entitled pursuant to Section 2.70. 

            

       

      	(b)  	
              Forfeitures.
                When a Participant has Separated from Service, his Matching Employer
                Contribution, Discretionary Employer Contribution, and ESOP Transfer
                Accounts shall be divided into two portions, one representing the
                vested
                portion, and the other representing the forfeiture portion, of such
                Accounts. Such Accounts shall continue to receive income allocations
                pursuant to Section 5.2 until distributed in full. A Participant
                shall
                forfeit the forfeiture portion of his Matching Employer Contribution,
                Discretionary Employer Contribution, and ESOP Transfer Accounts on
                the
                earlier of the date on which the Participant incurs five (5) consecutive
                one year Breaks-in-Service or the date on which the Participant receives
                a
                Cashout Distribution. A “Cashout Distribution” means a lump sum
                distribution pursuant to Section 11.1 that occurs concurrently with
                or at
                any time subsequent to the date on which the Participant separates
                from
                Service. For purposes of this Section, a Participant who separates
                from
                Service (i) without having made any Savings Contributions to the
                Plan, and
                (ii) without any vested percentage in the Participant's Matching
                Employer
                Contribution, Discretionary Employer Contribution, and ESOP Transfer
                Accounts, shall be deemed to have received a distribution of such
                Accounts
                on the date of separation from Service, or if the Participant is
                entitled
                to an allocation of Matching Employer Contributions for the Plan
                Year in
                which he separates from Service, on the last day of that Plan Year.
                The
                amount forfeited under this Section shall remain in the Trust Fund
                and
                shall be allocated as provided in Section
                5.5.

            

       

      	(c)  	
              Benefit
                Accruals and Repayments.
                

            

       

      	(i)  	
              For
                purposes of determining a Participant's Vested Percentage under the
                Plan,
                the Plan will disregard service performed by the Participant with
                respect
                to which he has received a distribution if the present value of his
                entire
                Vested Percentage of such distribution was not more than $5,000.
                This
                paragraph (i) shall apply, however, only if such distribution was
                made on
                termination of the Participant's participation in the
                Plan.

            

       

      	(ii)  	
              For
                purposes of determining a Participant's Vested Percentage under the
                Plan,
                the Plan will not disregard service as provided in paragraph (c)(i)
                above
                if the Participant repays the full amount of the distribution described
                in
                such paragraph (c)(i). Upon such repayment, the Participant's account
                balance prior to the distribution will be restored (unadjusted by
                any
                gains or losses between the time of distribution and the time of
                repayment) and his Vested Percentage will be recomputed by taking
                into
                account service so disregarded. This paragraph (ii) shall apply,
                however,
                only in the case of a Participant who --

            

       

      	(A)  	
              resumes
                employment before the date on which he would have incurred five (5)
                consecutive Breaks-in-Service; and

            

       

      	(B)  	
              repays
                the full amount of such distribution before the date on which he
                would
                have incurred five (5) consecutive
                Breaks-in-Service.

            

       

      The
        Employer will make a special restoration contribution to the Plan in order
        to
        restore any account balances hereunder.

       

      For
        purposes of Plan Section 5.6 and Code Section 415(c), the repayment by the
        Participant and the restoration will not be treated as “annual
        additions.”

       

      Section
        6.4  Determination
        of Amount. 

       

      	(a)  	
              For
                purposes of Sections 6.1, 6.2 and 6.3, the amount credited to the
                Accounts
                of a Participant or Former Participant shall be determined as of
                the
                Valuation Date next preceding the date such Accounts are distributed,
                and
                the distribution from the Plan of such amount shall be made or shall
                commence as soon thereafter as practicable in the manner determined
                under
                Article 11.

            

       

      	(b)  	
              If,
                on the Valuation Date referred to in Section 6.4(a), the amount credited
                to the Account in question does not include the allocation, if any,
                to
                which such Account is entitled under Article 5 for the months which
                include and/or follow such Valuation Date, then the particular
                Participant's or Former Participant's vested portion, determined
                under
                Section 6.1, 6.2 and 6.3, as appropriate, of such allocation shall
                be
                distributed in the manner provided under Section 11.1(d) as soon
                as
                practicable after such allocation is made.

            

       

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        SEVEN  

       

       

      INVESTMENT
        OF TRUST ASSETS

       

      Section
        7.1  Appointment
        of Trustee. 

       

      The
        Board
        of Directors of the Company shall determine the number of Trustees, shall
        appoint such Trustees, and may at any time and from time to time increase
        or
        decrease the number of Trustees. The Board of Directors of the Company may
        remove any Trustee at any time and appoint a successor Trustee or Trustees
        or
        reduce the number of Trustees (but not to less than one). The Trustee or
        Trustees shall have such rights, powers and duties as shall from time to
        time be
        specified in or determined pursuant to the Trust Agreement. The Trust Agreement
        shall form a part of the Plan, and the Trust Assets shall be administered
        in
        accordance with the terms of the Plan and the Trust Agreement.

       

      Section
        7.2  Investment
        of Accounts. 

       

      	(a)  	
              Participant
                Direction of Investment.
                The following Accounts shall be known as Participant-Directed Accounts
                and
                shall be invested and reinvested by the Trustee in accordance with
                Participant direction, as provided herein: Discretionary Employer
                Contribution Accounts, Matching Employer Contribution Accounts, Savings
                Accounts, and W & B Plan Rollover
                Accounts.

            

       

      	(i)  	
              Each
                Participant, in his written application for participation or through
                such
                other means as may be authorized by the Plan Administrator, if any,
                shall
                direct the Committee and the Trustee as to which Investment
                Fund(s) (as defined in Section 7.2(b) below) he wishes to utilize
                and the
                percentage of his Participant-Directed Accounts he wishes to have
                invested
                in each fund. The Participant shall make a separate investment election
                for his Rollover Account, if any, and his W & B Plan Rollover Account,
                if any. The
                Participant's direction shall include the percentage of his Accounts
                to be
                invested in each such Investment Fund; provided, however, that all
                investments shall be made in whole percentages. Such election shall
                be
                expressed in terms of the percentage amount of the Accounts to be
                allocated to each Investment Fund.

            

       

      	(ii)  	
              A
                Participant may change his designation of the manner for investment
                of
                such Participant's Participant-Directed Accounts or current contributions
                made on behalf of or by the Participant, or both, to any other manner
                permitted hereunder. This change may be made in writing to the Committee
                or through such other means as may be authorized by the Plan
                Administrator, if any. A change shall be applicable as soon as
                administratively feasible following its delivery to the Committee.
                In
                order to comply with applicable federal or state securities laws,
                the
                Committee may establish such rules with respect to the change of
                investment designation by participants as it shall deem necessary
                or
                advisable to prevent possible violations of such
                laws.

            

       

      	(iii)  	
              To
                the extent a Participant fails to direct the investment of all or
                any
                portion of his Participant-Directed Accounts, the
                Committee shall direct
                the Trustee to invest
                such Participant-Directed Accounts in the Investment Fund(s) designated
                by
                the Committee from time to time in a uniform and nondiscriminatory
                manner.

            

       

      	(iv)  	
              The
                Plan Administrator may permit a Participant to make an election under
                this
                Section 7.2 through any electronic or telephonic means authorized
                by the
                Committee.

            

       

      	(b)  	
              Investment
                Funds.
                The Plan Committee will select the "Investment Funds" available under
                the
                Plan in accordance with a separate written Investment Policy. The
                Committee shall select and maintain such Investment Funds in accordance
                with the Committee's written Investment Policy. Such Investment Funds
                shall be communicated to Participants in writing. All Participant-Directed
                Accounts shall be allocated by the Committee to the Investment Funds
                specified in the separate written Investment Policy. Dividends, interest
                and other distributions shall be reinvested in the same Investment
                Fund
                from which they are received.

            

       

      Except
        as
        provided in paragraphs (c) and (d) below, the assets of each Investment Fund
        shall be invested exclusively in shares of the registered investment company
        designated by the Committee, provided that such shares constitute securities
        described in ERISA Section 401(b)(1). Amounts in any such Investment Fund
        in
        amounts estimated by the Trustee
        to be
        needed for cash withdrawals, or in amounts too small to be reasonably invested,
        or in amounts which the Trustee deems to be in the best interest of the
        Participants, may be retained by the Trustee in cash or invested temporarily.
        

       

      There
        shall be at least five Investment Funds for the Participants to choose between.
        The Committee may, from time to time and in its sole discretion, increase
        or
        decrease the number and type of the Investment Fund(s) available for the
        Participants to choose among; provided, however, that the Committee shall
        not
        decrease the number of Investment Funds to fewer than five.

       

      	(c)  	
              Company
                Stock Funds.
                The Company Stock Funds shall be invested solely in Company Stock.
                The
                Trustee is explicitly authorized to acquire and hold shares of Company
                Stock in the Company Stock Funds. Any and all investments, reinvestments,
                or purchases shall be made at prices not in excess of the fair market
                value of the Company Stock prevailing at the time of such purchase
                or
                investment.

            

       

      	(i)  	
              Participant
                Direction.
                Each Participant shall be permitted to direct the Trustee to cause
                his
                Participant-Directed Accounts to purchase or sell shares of Company
                Stock
                held in the Company Stock Fund at any
                time.

            

       

      Any
        transfer of funds within a Participant-Directed Account from the Company
        Stock
        Fund to any other Investment Fund, will require that the Company Stock allocated
        to such Account be sold for its then market value and the sales proceeds
        transferred to the other Investment Fund (which will remain allocated to
        that
        same Account). The Trustee may sell shares of Company Stock to private
        purchasers (including an Employer) or in the open market; provided, however,
        that a sale to a private purchaser shall be made for no less than the market
        price then prevailing. Any transfer of funds within a Participant-Directed
        Account from another Investment Fund to the Company Stock Fund will require
        that
        the transferred funds be used to purchase shares of Company Stock (such stock
        to
        be allocated to the same Account from which the fund transfer was made).
        

       

      	(d)  	
              ESOP
                Accounts.
                The ESOP Accounts shall be invested and reinvested by the Trustee
                in
                accordance with Article 13.

            

       

      Section
        7.3  Income
        and Expenses. 

       

      	(a)  	
              Except
                as provided in Section 5.2, the dividends, capital gains distributions,
                and other earnings received on any share of Company Stock or an Investment
                Fund that is specifically credited to a Participant's or Former
                Participant's separate Account under the Plan shall be allocated
                to such
                separate Account and immediately reinvested, to the extent practicable,
                in
                additional shares of Company Stock or shares of such Investment
                Fund.

            

       

      	(b)  	
              Except
                as otherwise provided in Sections 5.5 and 16.7, fees charged by the
                Trustee and other expenses of operating the Trust may be paid by
                the
                Employers or, in the absence of such payments (which are not obligatory),
                out of the general Trust assets and charged to the separate Accounts
                of
                all Participants and Former Participants under the Plan in the ratio
                that
                the fair market value of each such Account bears to the total fair
                market
                value of all separate Accounts; provided, however, that such amounts
                shall
                be adjusted to reflect any revenue sharing payments received from
                an
                Investment Fund. However, notwithstanding the above, any brokerage
                fees,
                commissions, taxes and other costs incurred by the Trust (and not
                reimbursed by the Employers) with respect to the purchase, sale,
                or
                distribution of Company Stock pursuant to an inter-fund transfer
                in
                connection with an in-service withdrawal or a distribution made at
                the
                direction of a Participant, Former Participant, or Beneficiary pursuant
                to
                Section 10.1 or 11.1(a) or (b), shall be charged to and paid by such
                Participant's, Former Participant's, or Beneficiary's separate
                Accounts.

            

       

      Section
        7.4  Company
        Stock. 

       

      	(a)  	
              Acquisition
                of Stock by Trustee.
                The Trustee shall acquire shares of Company Stock pursuant to
                Participants' elections under Section 7.2 from private sources (including
                an Employer) or the open market, at not more than the market price
                then
                prevailing. All shares of Company Stock shall be carried by the Trustee
                at
                the actual cost thereof, including taxes, brokerage fees and commissions,
                if any, incident to the purchase, if the shares of Company Stock
                were
                purchased, or shall be carried by the Trustee at their value at the
                time
                of contribution to the Plan, if contributed in kind to the Plan by
                the
                Employer, determined by the average of the closing prices of such
                stock
                for the twenty (20) consecutive trading days immediately preceding
                their
                contribution to the Plan.

            

       

      	(b)  	
              Stock
                Rights, Stock Splits, and Stock Dividends.
                No Participant, Former Participant or Beneficiary shall have any
                right of
                request, direction, or demand upon the Committee or the Trustee to
                exercise in his behalf rights or privileges to acquire, convert into,
                or
                exchange for Company Stock or other securities. The Trustee, in its
                sole
                discretion, may exercise or sell any such rights or privileges. The
                separate Accounts shall be appropriately credited if such rights
                are
                exercised or sold. Company Stock received by the Trustee by reason
                of a
                stock split, stock dividend or recapitalization shall be appropriately
                allocated to the separate Accounts of the affected Participant, Former
                Participant, or Beneficiary.

            

       

      	(c)  	
              Voting
                of Company Stock.
                At each annual meeting and special meeting of the stockholders of
                the
                Company, the Committee shall direct the Trustee how to vote the shares
                of
                Company Stock held in Participant-Directed Accounts. Notwithstanding
                the
                foregoing, Company Stock held in ESOP Accounts shall be voted in
                accordance with Section 13.6(c).

            

       

      Section
        7.5  Exclusive
        Benefit. 

       

      The
        Plan
        and the Trust are established and shall be maintained for the exclusive benefit
        of the Participants, Former Participants and their Beneficiaries. Subject
        to the
        exceptions expressly set forth in the Plan or the Trust Agreement, no part
        of
        the Trust Assets may ever revert to an Employer or be used for or diverted
        to
        purposes other than the exclusive benefit of the Participants, Former
        Participants and Beneficiaries. 

       

      Section
        7.6  Valuation. 

       

      The
        value
        of each Account shall be determined as of each Valuation Date, on the basis
        of
        the fair market value of the assets allocated to each such Account, as appraised
        by the Trustee.

       

      	(a)  	
              As
                of each Valuation Date, the Committee shall determine the fair market
                value of each Investment Fund being administered by the Trustee.
                With
                respect to each such Investment Fund, the Committee shall determine
                (a)
                the change in value between the current Valuation Date and the then
                last
                preceding Valuation Date, (b) the net gain or loss resulting from
                expenses
                paid (including fees and expenses, if any, which are to be charged
                to such
                Investment Fund) and (c) realized and unrealized gains and
                losses.
                Contributions and rollovers received by the Plan shall be credited
                to a
                Participant’s Accounts as of the Valuation Date that such amounts are
                invested in an Investment Fund and shall not be considered in allocating
                gains and losses to the Participant’s Accounts on such Valuation Date.
                

            

       

      The
        transfer of funds to or from an Investment Fund pursuant to Section 7.2 and
        7.3
        and payments, distributions and withdrawals from an Investment Fund to provide
        benefits under the Plan for Participants or Beneficiaries shall not be deemed
        to
        be gains, expenses or losses of an Investment Fund.

       

      As
        of
        each Valuation Date, the Committee shall allocate the net gain or loss of
        each
        Investment Fund on the Valuation Date to the Accounts of Participants
        participating in such Investment Fund on such Valuation Date. 

       

      	(b)  	
              The
                reasonable and equitable decision of the Committee as to the value
                of each
                Investment Fund, and of any Account as of each Valuation Date shall
                be
                conclusive and binding upon all persons having any interest, direct
                or
                indirect, in the Investment Funds or in any
                Account.

            

       

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        EIGHT  

       

       

      BENEFICIARY

       

      Section
        8.1  Designation
        of Beneficiary. 

       

      Each
        Participant or Former Participant may, from time to time, designate any person
        or persons (who may be designated contingently or successively and who may
        be an
        entity or a natural person), either individually or in a fiduciary capacity,
        the
        Beneficiary or Beneficiaries to whom his Plan benefits are to be paid if
        he dies
        before receipt of all such benefits. However, a married Participant or a
        married
        Former Participant may not select a Beneficiary other than his Spouse unless
        the
        Spouse consents to such selection in writing, and the Spouse's consent
        acknowledges the effect of such selection and is witnessed by a Plan
        representative or a notary public. Each Beneficiary designation shall be
        in the
        form prescribed by the Committee and will be effective only when filed with
        the
        Committee during the Participant's or Former Participant's lifetime. Each
        Beneficiary designation filed with the Committee will cancel all Beneficiary
        designations previously filed with the Committee.

       

      Section
        8.2  No
        Beneficiary. 

       

      If
        any
        Participant or Former Participant fails to designate a Beneficiary in the
        manner
        provided above, or if the Beneficiary designated by a Participant, or Former
        Participant dies before him and the Participant or Former Participant fails
        to
        designate a new Beneficiary, or if the Beneficiary designated by a deceased
        Participant or Former Participant dies before complete distribution of the
        deceased Participant's or Former Participant's benefit, the Committee shall
        direct the Trustee to distribute such Participant's or Former Participant's
        benefits (or the balance thereof) to one or more of the following, as determined
        by the Committee in its sole discretion:

       

      	(i)  	
              To
                the surviving spouse of such Participant or Former
                Participant;

            

       

      	(ii)  	
              To
                any one or more or all of the next of kin of such Participant or
                Former
                Participant, and in such proportions, as the Committee shall determine;
                or

            

       

      	(iii)  	
              To
                the estate of the last to die of such Participant or Former Participant
                and his Beneficiary or Beneficiaries; or

            

       

      	(iv)  	
              To
                such recipient as may be required by applicable
                law.

            

       

      Section
        8.3  Mandatory
        Distribution of Death Benefits. 

       

      	(a)  	
              Required
                Beginning Date.
                The participant's entire interest will be distributed, or begin to
                be
                distributed, to the participant no later than the participant's required
                beginning date. 

            

       

      	(b)  	
              Death
                of Participant Before Distributions Begin.
                If the participant dies before distributions begin, the Participant's
                entire interest will be distributed, and begin to be distributed,
                no later
                than as follows: 

            

       

      	(i)  	
              If
                the Participant's surviving spouse is the Participant's sole designated
                beneficiary, then distributions to the surviving spouse will begin
                by
                December 31 of the calendar year immediately following the calendar
                year
                in which the Participant died, or by December 31 of the calendar
                year in
                which the Participant would have attained age 701⁄2, if later.
                

            

       

      	(ii)  	
              If
                the Participant's surviving spouse is not the Participant's sole
                designated beneficiary, then distributions to the designated beneficiary
                will begin by December 31 of the calendar year immediately following
                the
                calendar year in which the Participant died.

            

       

      	(iii)  	
              If
                there is no designated beneficiary as of September 30 of the year
                following the year of the Participant's death, the Participant's
                entire
                interest will be distributed by December 31 of the calendar year
                containing the fifth anniversary of the Participant's death.
                

            

       

      	(iv)  	
              If
                the Participant's surviving spouse is the Participant's sole designated
                beneficiary and the surviving spouse dies after the Participant but
                before
                distributions to the surviving spouse begin, this Section 8.3 will
                apply
                as if the surviving spouse were the Participant.
                

            

       

       

      For
        purposes of this Section 8.3, unless Section 8.3(b)(iv) applies, distributions
        are considered to begin on the Participant's required beginning date. If
        Section
        8.3(b)(iv) applies, distributions are considered to begin on the date
        distributions are required to begin to the surviving spouse under Section
        8.3(b)(i).

       

      	(c)  	
              Limits
                on Distribution Periods.
                

            

       

      	(i)  	
              If
                the Participant or Former Participant dies after distribution has
                commenced, the Trustee shall continue to distribute the remaining
                portion
                of the Participant's or Former Participant's Nonforfeitable Account
                Balance at least as rapidly as under the method of distribution used
                prior
                to the Participant's death.

            

       

      	(ii)  	
              If
                the Participant or Former Participant dies before distribution commences,
                the Trustee shall complete distribution of the Participant's or Former
                Participant's Nonforfeitable Account Balance by December 31 of the
                calendar year containing the fifth (5th) anniversary of the Participant's
                or Former Participant's death, except to the extent that the Designated
                Beneficiary elects to receive distributions under paragraphs (A)
                or (B)
                below:

            

       

      	(A)  	
              If
                any portion of the Participant's or Former Participant's Nonforfeitable
                Account Balance is payable to a Designated Beneficiary, the Designated
                Beneficiary may elect distributions over the life or over a period
                certain
                not greater than the life expectancy of the Designated Beneficiary
                commencing on or before December 31 of the calendar year immediately
                following the calendar year in which the Participant or Former Participant
                died;

            

       

      	(B)  	
              If
                the Designated Beneficiary is the Participant's Surviving Spouse,
                the date
                distributions must begin under paragraph (A) above shall not be earlier
                than the later of: (1) December 31 of the calendar year immediately
                following the calendar year in which the Participant or Former Participant
                died; or (2) December 31 of the calendar year in which the Participant
                or
                Former Participant would have attained age seventy and one-half (701⁄2)
                years. If the Participant has not made an election pursuant to this
                Section by the time of death, the Designated Beneficiary must elect
                the
                method of distribution no later than the earlier of: (1) December
                31 of
                the calendar year in which distributions must begin under this Section;
                or
                (2) December 31 of the calendar year which contains the fifth (5th)
                anniversary of the date of death of the Participant or Former Participant.
                If the Participant has no Designated Beneficiary, or if the Designated
                Beneficiary does not elect a method of distribution, distribution
                of the
                Nonforfeitable Account Balance of the Participant or Former Participant
                must be completed by December 31 of the calendar year containing
                the fifth
                (5th) anniversary of death.

            

       

      	(C)  	
              If
                the Surviving Spouse is the Beneficiary of any portion of a deceased
                Participant's or Former Participant's benefits under the Plan, the
                Surviving Spouse shall be permitted to direct that this distribution
                of
                benefits commence at a reasonable time following the death of the
                Participant or Former Participant under applicable Treasury
                regulations.

            

       

      	(D)  	
              If
                the Surviving Spouse dies after the Participant or Former Participant,
                but
                before payments to the Spouse begin, the preceding provisions of
                this
                Section, with the exception of paragraph (B), shall be applied as
                if the
                Surviving Spouse had been the
                Participant.

            

       

      	(d)  	
              Minimum
                Distribution Amounts.
                If the Trustee will distribute a Participant's or Former Participant's
                Nonforfeitable Account Balance in accordance with the Designated
                Beneficiary's life expectancy, the minimum distribution for a calendar
                year equals the Participant's Nonforfeitable Account Balance as of
                the
                latest Valuation Date preceding the beginning of the calendar year
                divided
                by the Designated Beneficiary's life
                expectancy.

            

       

      For
        purposes of this Section 8.3(d), payments will be calculated by using the
        expected return multiples specified in Tables V and VI of Treasury Regulations
        Section 1.72-9. Except as the Surviving Spouse may otherwise elect in Section
        8.3(f)(i) below, the life expectancy of a Surviving Spouse shall be recalculated
        annually; however, in the case of any other Designated Beneficiary, life
        expectancy will be calculated when the first payment commences without further
        recalculation. For purposes of this Section, any amount paid to a child of
        the
        Participant or Former 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)  	
              Amount
                of Required Minimum Distribution For Each Distribution Calendar
                Year.
                During the Participant's lifetime, the minimum amount that will be
                distributed for each Distribution Calendar Year is the lesser of:
                

            

       

      	(i)  	
              the
                quotient obtained by dividing the Participant's account balance by
                the
                distribution period in the Uniform Lifetime Table set forth in
                Section
                1.401(a)(9)-9 of the Treasury regulations, using the Participant's
                age as
                of the Participant's birthday in the Distribution Calendar Year;
                or
                

            

       

      	(ii)  	
              if
                the Participant's sole designated beneficiary for the Distribution
                Calendar Year is the Participant's spouse, the quotient obtained
                by
                dividing the Participant's account balance by the number in the Joint
                and
                Last Survivor Table set forth in Section
                1.401(a)(9)-9 of the Treasury regulations, using the Participant's
                and
                spouse's attained ages as of the Participant's and spouse's birthdays
                in
                the Distribution Calendar Year. 

            

       

      	(f)  	
              Required
                Minimum Distributions If Participant Dies On or After Date Distributions
                Begin.
                

            

       

      	(i)  	
              Participant
                Survived by Designated Beneficiary.
                If the Participant dies on or after the date distributions begin
                and there
                is a designated beneficiary, the minimum amount that will be distributed
                for each Distribution Calendar Year after the year of the Participant's
                death is the quotient obtained by dividing the Participant's account
                balance by the longer of the remaining life expectancy of the Participant
                or the remaining life expectancy of the Participant's designated
                beneficiary, determined as follows: 

            

       

      	(A)  	
              The
                Participant's remaining life expectancy is calculated using the age
                of the
                Participant in the year of death, reduced by one for each subsequent
                year.
                

            

       

      	(B)  	
              If
                the Participant's surviving spouse is the Participant's sole designated
                beneficiary, the remaining life expectancy of the surviving spouse
                is
                calculated for each Distribution Calendar Year after the year of
                the
                Participant's death using the surviving spouse's age as of the spouse's
                birthday in that year. For Distribution Calendar Years after the
                year of
                the surviving spouse's death, the remaining life expectancy of the
                surviving spouse is calculated using the age of the surviving spouse
                as of
                the spouse's birthday in the calendar year of the spouse's death,
                reduced
                by one for each subsequent calendar year.

            

       

      	(C)  	
              If
                the Participant's surviving spouse is not the Participant's sole
                designated beneficiary, the designated beneficiary's remaining life
                expectancy is calculated using the age of the beneficiary in the
                year
                following the year of the Participant's death, reduced by one for
                each
                subsequent year. 

            

       

      	(ii)  	
              No
                Designated Beneficiary.
                If the Participant dies on or after the date distributions begin
                and there
                is no designated beneficiary as of September 30 of the year after
                the year
                of the Participant's death, the minimum amount that will be distributed
                for each Distribution Calendar Year after the year of the Participant's
                death is the quotient obtained by dividing the Participant's account
                balance by the Participant's remaining life expectancy calculated
                using
                the age of the Participant in the year of death, reduced by one for
                each
                subsequent year. 

            

       

      Section
        8.4  Definitions. 

       

      	(a)  	
              Designated
                beneficiary.
                The individual who is designated as the beneficiary under Section
                8.1 and
                is the designated beneficiary under Section
                401(a)(9) of the Internal Revenue Code and Section
                1.401(a)(9)-1, Q&A-4, of the Treasury regulations.
                

            

       

      	(b)  	
              Distribution
                Calendar Year.
                A
                calendar year for which a minimum distribution is required. For
                distributions beginning before the Participant's death, the first
                Distribution Calendar Year is the calendar year immediately preceding
                the
                calendar year which contains the Participant's Required Beginning
                Date.
                For distributions beginning after the Participant's death, the first
                Distribution Calendar Year is the calendar year in which distributions
                are
                required to begin under this Section. The required minimum distribution
                for the Participant's first Distribution Calendar Year will be made
                on or
                before the Participant's Required Beginning Date. The required minimum
                distribution for other Distribution Calendar Years, including the
                required
                minimum distribution for the Distribution Calendar Year in which
                the
                Participant's Required Beginning Date occurs, will be made on or
                before
                December 31 of that Distribution Calendar Year.

            

       

      	(c)  	
              Life
                expectancy.
                Life expectancy as computed by use of the Single Life Table in
                Section
                1.401(a)(9)-9 of the Treasury regulations.

            

       

      	(d)  	
              Participant's
                account balance.
                The account balance as of the last valuation date in the calendar
                year
                immediately preceding the Distribution Calendar Year (valuation calendar
                year) increased by the amount of any contributions made and allocated
                or
                forfeitures allocated to the account balance as of dates in the valuation
                calendar year after the valuation date and decreased by distributions
                made
                in the valuation calendar year after the valuation date. The account
                balance for the valuation calendar year includes any amounts rolled
                over
                or transferred to the Plan either in the valuation calendar year
                or in the
                Distribution Calendar Year if distributed or transferred in the valuation
                calendar year. 

            

       

      	(e)  	
              Required
                beginning date.
                A
                Participant's (or Former Participant's) "Required Beginning Date"
                shall be
                as follows:

            

       

      	(i)  	
              For
                a Participant who is a Five Percent Owner, the Required Beginning
                Date
                shall commence on the first day of April following the later
                of:

            

       

      	(A)  	
              the
                calendar year in which the Participant attains age seventy and one-half
                (701⁄2) years; or

            

       

      	(B)  	
              the
                earlier of the calendar year with or within which ends the Plan Year
                in
                which the Participant becomes a Five Percent Owner, or the calendar
                year
                in which the Participant retires.

            

       

      	(ii)  	
              For
                a Participant who is not a Five Percent Owner, the Required Beginning
                Date
                is the first day of April of the calendar year immediately following
                the
                later of: 

            

       

      	(A)  	
              the
                calendar year in which the Participant attains age seventy and one-half
                (701⁄2); or

            

       

      	(B)  	
              the
                calendar year in which the Participant terminates employment with
                the
                Employer.

            

       

      
        	 	 	
                A
                  Participant is treated as a "Five Percent Owner" for purposes of
                  this
                  Section if the Participant is a Five Percent Owner as defined in
                  Code
                  Section 416(i) (determined without regard to whether the Plan is
                  Top-Heavy) at any time during the Plan Year ending with or within
                  the
                  calendar year in which the owner attains age sixty-six and one-half
                  (661⁄2)
                  years or any subsequent Plan Year. Once distributions have begun
                  to a Five
                  Percent Owner under this Section, they must continue to be distributed,
                  even if the Participant ceases to be a Five Percent Owner in a
                  subsequent
                  year.

              

      

       

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        NINE  

       

       

      NOTICES

       

      Section
        9.1  Notice
        to Trustee. 

       

      As
        soon
        as practicable after a Participant, Former Participant or Beneficiary becomes
        entitled to benefits in accordance with Article 6, the Committee shall give
        written notice to the Trustee, which notice shall include the following
        information and directions:

       

      	(a)  	
              The
                name and address of the Participant, Former Participant, or
                Beneficiary.

            

       

      	(b)  	
              The
                percentage or amount to which the Participant, Former Participant,
                or
                Beneficiary is entitled under Article 6.

            

       

      	(c)  	
              The
                time, manner and amount of payments to be made pursuant to Article
                11.

            

       

      Section
        9.2  Subsequent
        Notices. 

       

      At
        any
        time and from time to time after giving the notice provided for in Section
        9.1,
        the Committee may modify such original notice or any subsequent notice by
        means
        of a further written notice or notices to the Trustee, but any action taken
        or
        payments made by the Trustee pursuant to the original notice and prior to
        the
        receipt of a subsequent notice shall not be affected by such subsequent
        notice.

       

      Section
        9.3  Copy
        to Participant. 

       

      A
        copy of
        each notice provided for in Sections 9.1 and 9.2 shall be mailed by the
        Committee to the Participant or Former Participant or to each Beneficiary
        involved, as the case may be, but if, for any reason, such copy is not sent
        or
        received, that fact shall not affect the validity of any notice to the Trustee
        nor the validity of any action taken or payment made pursuant
        thereto.

       

      Section
        9.4  Reliance
        Upon Notice. 

       

      Upon
        receipt of any notice as provided in this Article 9, the Trustee shall promptly
        take whatever action and make whatever payments are called for
        therein.

       

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        TEN  

       

       

      IN-SERVICE
        WITHDRAWALS AND LOANS TO PARTICIPANTS 

       

      Section
        10.1  Withdrawals
        from Accounts. 

       

      	(a)  	
              Savings
                Accounts.
                

            

       

      	(i)  	
              Hardship
                Distributions.
                Distribution of Savings Contributions, Roth and Savings Contributions
                may
                be made to a Participant in the event of hardship. For the purposes
                of
                this Section, a hardship distribution is defined pursuant to the
                safe
                harbor definition of Treasury Regulation Section 1.401(k)-1(d)(2)(iv)
                and
                means a distribution necessary to satisfy an immediate and heavy
                financial
                need of an Employee who lacks other available resources.
                

            

       

      	(A)  	
              A
                distribution will be considered to satisfy an immediate and heavy
                need of
                an Employee if the distribution is for:

            

       

      	(1)  	
              expenses
                incurred for or necessary to obtain medical care that would be deductible
                under Code Section 213(a)
                (determined without regard to whether the expenses exceed 7.5% of
                adjusted
                gross income), of the Employee, the Employee's spouse, children,
                or
                dependents;

            

       

      	(2)  	
              costs
                directly related to the purchase, excluding mortgage payments, of
                a
                principal residence for the Employee;

            

       

      	(3)  	
              payment
                of tuition, related educational
                fees, and room and board expenses for up to the next twelve (12)
                months of
                post-secondary education for the Employee, the Employee's Spouse,
                children
                or dependents (as defined in Code Section 152, without regard to
                Code
                Section 152(b)(1), (b)(2) and (d)(1)(B));

            

       

      	(4)  	
              payment
                necessary to prevent the eviction of the Employee from, or a foreclosure
                on the mortgage of, the Employee's principal
                residence;

            

       

      	(5)  	
              payments
                for funeral or burial expenses for the Employee’s deceased parent, spouse,
                child or dependent (as defined in Code Section 152, and determined
                without
                regard to Code Section 152(d)(1)(B)); 

            

       

      	(6)  	
              expenses
                to repair damage to the Employee’s principal residence that would qualify
                for a casualty loss deduction under Code Section 165 (determined
                without
                regard to whether the loss exceeds 10% of adjusted gross income);
                or

            

       

      	(7)  	
              effective
                August 25, 2005, up to $100,000 representing economic loss incurred
                by a
                Participant whose principal residence on August 29, 2005 was located
                in
                one of the counties or parishes in Louisiana, Texas, Mississippi
                or
                Alabama that have been or are later designated as disaster areas
                eligible
                for Individual Assistance by the Federal Emergency Management Agency
                because of the devastation caused by Hurricanes Katrina, Rita or
                Wilma, or
                whose place of employment was located in one of these counties or
                parishes
                on such date, or whose lineal ascendant or descendant, dependent
                or spouse
                had a principal residence or place of employment in one of these
                counties
                or parishes on such date, provided that hardship withdrawals under
                this
                Subsection (7) shall not begin prior to August 29, 2005 and shall
                end on
                March 31, 2006. For purposes of hardship withdrawals under this Subsection
                (7), economic loss includes but is not limited
                to:

            

       

      (I) loss,
        damage to or destruction of real or personal property from fire, flooding,
        looting, vandalism, theft, wind or other cause;

       

      
        	 	
                (II)

              	
                loss
                  related to displacement from the individual’s home;
                  or

              

      

       

      
        	 	
                (III)

              	
                loss
                  of livelihood due to temporary or permanent
                  layoffs.

              

      

       

      	(B)  	
              A
                distribution will be considered necessary to satisfy an immediate
                and
                heavy financial need of an Employee who lacks other available resources
                only if:

            

       

      	(1)  	
              the
                Employee has obtained all distributions, other than hardship
                distributions, and all nontaxable
                loans under all plans maintained by the Employer;
                

            

       

      	(2)  	
              the
                distribution is not in excess of the amount of an immediate and heavy
                financial need, including
                amounts necessary to pay any federal, state or local income taxes
                or
                penalties reasonably anticipated to result from the distribution;
                and

            

       

      
        	 	
                (4)

              	
                for
                  distributions under Section 10.1(a)(i)(A)(7), the Committee may
                  rely upon
                  the representations from the Employee as to the need for and the
                  amount of
                  the hardship distribution, unless the Committee has actual knowledge
                  to
                  the contrary.

              

      

       

      	(C)  	
              In
                addition to the conditions above, any hardship withdrawal to a Participant
                made pursuant to this Section shall be increased by an amount equal
                to the
                lesser of:

            

       

      	(1)  	
              all
                federal, state, and local income taxes and associated penalties
                (including, if applicable, the additional income tax described in
                Code
                Section 72(t) imposed with respect to such hardship withdrawal);
                or
                

            

       

      	(2)  	
              the
                amount, if any, in such Participant’s Savings Account in excess of such
                hardship withdrawal.

            

       

      	(ii)  	
              Upon
                Attainment of Age 591⁄2.
                A
                Participant may elect to receive a lump-sum distribution of the amount
                in
                his Savings Account or Roth Savings Contribution Account at any time
                after
                such Participant attains age fifty-nine and one-half
                (591⁄2).

            

       

      	(b)  	
              Matching
                Employer Contribution Accounts and Discretionary Employer Contribution
                Accounts.

            

       

      	(i)  	
              Prior
                to Attainment of Age 591⁄2.
                A
                Participant may not receive a distribution from his Matching Employer
                Contribution Account or his Discretionary Employer Contribution Account
                prior to his attainment of age fifty-nine and one-half
                (591⁄2).

            

       

      	(ii)  	
              After
                Attainment of Age 591⁄2.
                A
                Participant may elect to receive a lump-sum distribution of the vested
                amount in his Matching Employer Contribution Account and/or his
                Discretionary Employer Contribution Account at any time after such
                Participant attains age fifty-nine and one-half
                (591⁄2).

            

       

      	(c)  	
              Rollover
                Accounts.
                A
                Participant may receive an in-service distribution from his Rollover
                Account and his Roth Rollover Account at any time. A Participant
                may not
                receive an in-service distribution from his W & B Plan Rollover
                Account.

            

       

      	(d)  	
              ESOP
                Accounts.
                

            

       

      	(i)  	
              Hardship
                Distributions.
                A
                Participant may not receive a hardship distribution from his ESOP
                Accounts.

            

       

      	(ii)  	
              In-service
                Distributions.
                A
                Participant may may elect to receive a lump-sum distribution of the
                amount
                in his ESOP Accounts at any time after such Participant attains age
                fifty-nine and one-half (591⁄2).

            

       

      	(e)  	
              Section
                16 Insiders.
                Notwithstanding the preceding, if the Participant requesting a withdrawal
                from the Company Stock Funds is an executive officer, director or
                10%
                shareholder of the Company (a "Section 16 Insider"), then any such
                withdrawal from the Company Stock Funds shall be paid by a distribution
                in
                kind of Company Stock, and cash may be distributed only to the extent
                that
                the distribution is made pursuant to an election made at least six
                (6)
                months following the date of the most recent election, with respect
                to any
                employee benefit plan of the Company, that effected an opposite way
                "discretionary transaction," qualifying for exemption under the
                requirements for an exempt "discretionary transaction," as that term
                is
                defined in Rule 16b-3, issued by the Securities and Exchange Commission
                under Section 16 of the Securities Exchange Act of 1934. The Committee
                shall give such directions to the Trustee as shall be appropriate
                to
                effectuate the distribution in accordance with the terms hereof of
                the
                amount being withdrawn. Such withdrawals described in Section 10.2(b)
                below shall be debited to the Participant's Savings Account, and
                the
                Committee shall charge the sum of such debits to the Company Stock
                Funds
                and/or other Investment Fund(s) within such Savings Account in such
                manner
                as the Participant designates in writing; provided, however, if the
                Participant fails to make such a written designation, the Committee
                shall
                charge the sum of such debits to the investment fund to be determined
                by
                the Committee.

            

       

      Section
        10.2  Loans
        to Participants. 

       

      The
        Committee may authorize a loan to the Participants and to any Former Participant
        who is a "party-in-interest" (as defined in ERISA Section 3(14)) who makes
        application therefore, of amounts credited to the Participant's Accounts.
        Provided, however, that no portion of the Annuity-Restricted Account (as
        defined
        in Section 11.2) or the ESOP Accounts shall be available for a loan. Loans
        shall
        not be available to any person who is not a party-in-interest as defined
        in
        ERISA Section 3(14). 

       

      Each
        such
        loan shall be subject to the following provisions:

       

      	(a)  	
              A
                Participant must apply for each loan either in writing on an application
                form provided by the Committee or through such other means
                as may be authorized by the
                Committee.  As
                a condition to the making of the loan, the Participant shall agree
                to pay
                the loan set-up and annual loan administration fees associated with
                the
                extension of the loan from his Account (unless paid directly by the
                Participant).

            

       

      	(b)  	
              The
                amount of any loan, when added to the outstanding balance of all
                other
                loans to the Participant or Former Participant under this Plan shall
                not
                exceed the lesser of:

            

       

      	(i)  	
              $50,000,
                reduced by the excess (if any) of (i) the highest outstanding balance of
                loans to the Participant or Former Participant from the Plan and
                all
                related plans during the one year period ending on the day before
                the date
                the loan is made, over (ii) the outstanding balance of loans to the
                Participant or Former Participant from the Plan and all related plans
                on
                the date the loan is made; and 

            

       

      	(ii)  	
              50%
                of the amount in which the Participant would have a vested interest
                in the
                event his Separation from Service was to occur on the date the loan
                is
                made.

            

       

      For
        purposes of this Section, a related plan is any "qualified employer plan,"
        as
        defined in Code Section 72(p)(3), sponsored by the Employers or any related
        employer, determined according to Code Section 72(p)(2)(C).

       

      	(c)  	
              Each
                loan shall be evidenced by a promissory note payable to the order
                of the
                Plan. Each loan shall be adequately secured as determined by the
                Committee. A loan shall be considered adequately secured if the amount
                of
                the loan at the date the loan is granted does not exceed one-half
                of the
                amount in which the Participant would have a vested interest in the
                event
                of his Separation from Service.

            

       

      	(d)  	
              Each
                loan shall bear an interest rate equal to the "prime lending rate"
                published in the Wall Street Journal plus one percent (1%) at the
                time
                such loan is requested.

            

       

      	(e)  	
              Each
                such loan shall provide for the repayment of principal and accrued
                interest in substantially level amortized payments payable not less
                frequently than quarterly through payroll deduction
                payments.

            

       

      	(f)  	
              Each
                loan shall extend for a stated period determined by agreement of
                the
                Participant and the Committee, not exceeding five years. The limitation
                in
                the preceding sentence shall not apply to any loan designated by
                the
                Committee as a home loan. For purposes of this Section 10.2, a "home
                loan"
                is a loan used to acquire any dwelling unit that within a reasonable
                time
                is to be used as the principal residence of the Participant. A home
                loan
                shall not exceed ten (10) years.

            

       

      	(g)  	
              If
                a loan to a Participant is outstanding on the date a distribution
                is to be
                made from the Plan with respect to a portion of the Participant's
                Accounts
                represented by the loan, the balance of the loan, or a portion thereof
                equal to the amount to be distributed, if less, shall on such date
                become
                due and payable; provided that if the Participant is a party-in-interest
                (as defined in ERISA Section 3(14)), such loan shall not become due
                and
                payable if renegotiated on terms acceptable to the Committee. The
                portion
                of the loan due and payable shall be satisfied by offsetting such
                amount
                against the amount to be distributed to the Participant. Alternatively,
                the Committee may in its discretion direct that the portion of the
                Participant's Accounts equal to the outstanding loan balance be
                distributed in kind by distribution of the Participant's
                note.

            

       

      	(h)  	
              If
                a loan to a Participant is outstanding at the time of the Participant's
                death, and if the Participant's executor or administrator does not
                repay
                the loan, the note shall be distributed in kind to the Participant's
                Beneficiary. 

            

       

      	(i)  	
              A
                loan shall be accelerated and immediately due in full upon a Participant's
                termination of employment.

            

       

      	(j)  	
              If
                a Participant fails to pay interest or principal on an outstanding
                loan
                when due, his Account from which the loan was made shall, at the
                direction
                of the Committee, be reduced by the unpaid amount if a withdrawal
                would be
                permitted from said Account pursuant to Article 6. The Participant
                shall
                be treated as having received such a distribution and shall receive
                credit
                under the promissory note for the delinquent payment accordingly.
                If the
                Committee does not take such action, the Committee shall take whatever
                steps (including legal action) it deems necessary to collect the
                unpaid
                amount.

            

       

      	(k)  	
              In
                accordance with the foregoing standards and requirements, loans shall
                be
                available to all Participants on a reasonably equivalent basis. A
                Participant shall only be entitled to have two (2) loans in effect
                at the
                same time. Each loan must be in a minimum amount of
                $1,000.

            

       

      	(l)  	
              All
                loans shall be governed by such rules and regulations as the Committee
                may
                adopt which rules and regulations are hereby incorporated by reference.
                The Committee shall cause to be furnished to any Participant receiving
                a
                loan any information required to be furnished pursuant to the Federal
                Truth in Lending Act, if applicable, or pursuant to any other applicable
                law.

            

       

      	(m)  	
              The
                portion of a Participant's Accounts represented by the outstanding
                loan
                principal shall be segregated and shall not share in the income or
                losses
                of the Plan. In lieu of sharing in such income or losses, the
                Participant's Accounts shall be credited with all interest paid by
                the
                Participant on the loan. The Trustee may charge to the Participant's
                Accounts any expenses attributable to the
                loan.

            

       

      	(n)  	
              The
                investment funds held for a Participant's Accounts shall be liquidated
                to
                provide cash equal to the loan principal on a pro rata
                basis.

            

       

      	(o)  	
              Loan
                repayments will be suspended under this Plan, as permitted under
                Code
                Section 414(u)(4), on behalf of those Participants who are on an
                authorized leave of absence pursuant to qualified military
                service.

            

       

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        ELEVEN  

       

       

      METHODS
        OF PAYMENT

       

      Section
        11.1  Participant
        Election. 

       

      	(a)  	
              Timing
                of Distributions.

            

       

      	(i)  	
              Subject
                to the provisions of this Article 11, upon the Retirement or Disability
                of
                a Participant, or the death of a Participant or Former Participant,
                distribution of amounts to which a Participant, Former Participant
                or
                Beneficiary became entitled pursuant to Section 6.1 of the Plan shall
                commence as soon as administratively practicable following the event
                which
                caused entitlement to a distribution, and shall be completed as soon
                as
                administratively practicable following the end of the Plan Year in
                which
                the Participant or Former Participant Retired, became Disabled or
                died.

            

       

      	(ii)  	
              Subject
                to the provisions of this Article 11, upon the Separation from Service
                of
                a Participant, distribution of amounts to which a Participant becomes
                entitled pursuant to Sections 6.2 and 6.3(c) of the Plan shall be
                completed as soon as administratively practicable following the event
                which caused entitlement to a
                distribution.

            

       

      	(b)  	
              ESOP
                Account Distributions.

            

       

      	(i)  	
              Notwithstanding
                the provisions of Section 11.1(a)(ii), if the Participant Separates
                from
                Service for any reason other than Retirement, Death or Disability
                and is
                not reemployed by the Employer at the end of the first Plan Year
                following
                the Plan Year of the Separation from Service, the Participant may
                elect to
                have distribution of the vested percentage of his ESOP Accounts made
                on or
                after the date that is one year after the close of the first Plan
                Year
                following the Plan Year in which the Participant Separated from Service
                by
                completing a distribution request form and submitting it to the Committee;
                in the absence of such an election, distribution of the vested percentage
                of the Participant’s ESOP Accounts will begin during the sixty (60) day
                period following the end of the Plan Year in which the Participant
                reaches
                Normal Retirement Age. If the Participant is reemployed by the Employer
                by
                the end of the first Plan Year, distribution under the Plan will
                be
                governed by whichever part of this Article thereafter becomes applicable.
                The Committee shall combine the Nonforfeitable percentage of the
                ESOP
                Transfer Account of a Participant determined under Section 6.2 with
                the
                Participant's ESOP Rollover Account into one Account, and the Trustee
                shall make payments to the Participant pursuant to Article 11.
                

            

       

      	(ii)  	
              Notwithstanding
                any contrary provision, unless other Plan distribution provisions
                require
                earlier distribution of the Participant's ESOP Accounts, if the
                Participant and, if applicable pursuant to Code Sections 401(a)(11)
                and
                417, with the consent of the Participant's spouse, elects, the Committee
                shall direct the Trustee to commence distribution of the Participant's
                Account Balance attributable to Company Stock
                acquired
                after December 31, 1986 in the Participant's ESOP Accounts no later
                than
                one (1) year after the close of the Plan Year in which the Participant
                Separates from Service because of attainment of Normal Retirement
                Age,
                Disability, or death. This distribution requirement is subject to
                the form
                of distribu-tion requirements of this Article
                11.

            

       

      	(iii)  	
              Notwithstanding
                any contrary provision, unless other Plan distribution provisions
                require
                earlier distribution of the Participant's ESOP Accounts, if the
                Participant and, if applicable pursuant to Code Sections 401(a)(11)
                and
                417, with the consent of the Participant's spouse, elects, the Committee
                shall direct the Trustee to commence distribution of the Participant's
                Account Balance attributable to Company Stock acquired after December
                31,
                1986 in the Participant's ESOP Accounts no later than one (1) year
                after
                the close of the Plan Year which is the fifth (5th) Plan Year following
                the Plan Year in which the Participant Separates from Service for
                any
                reason other than attainment of Normal Retirement Age, death or
                disability. This distribution require-ment is subject to the form
                of
                distribution requirements of this Article. If the Participant resumes
                employment with the Employer on or before the last day of the fifth
                (5th)
                Plan Year following the Plan Year of the Participant's Separation
                from
                Service, the distribution provi-sions of this paragraph will not
                apply
                until the Participant again may separate from Service for any reason
                other
                than attainment of Normal Retirement Age, death or
                disability.

            

       

      	(c)  	
              Form
                of Distribution.
                

            

       

      	(i)  	
              Participant-Directed
                Accounts.
                Except as provided in Section 11.2, distributions under this Plan
                shall be
                made in a lump sum. A Participant shall elect whether his lump sum
                distribution shall be made in cash or as a combination of Company
                Stock
                (and cash in lieu of fractional shares) from any Account balances
                invested
                in the Company Stock Funds and cash from any Account balances invested
                in
                the other Investment Fund(s).

            

       

      	(ii)  	
              ESOP
                Accounts.
                Distributions from a Participant’s ESOP Accounts shall be made in a lump
                sum and shall be in the form of whole shares of Company Stock. The
                value
                of any fractional shares shall be distributed in cash. If Company
                Stock is
                not readily tradable on an established market, the recipient shall
                receive
                a put option as described in Section 13.2. A Participant entitled
                to a
                distribution from his ESOP Accounts shall have the right to demand
                that
                all such distributions be made in Qualifying Company Stock or in
                cash for
                fractional shares. 

            

       

      	(d)  	
              An
                amount to which a Participant, Former Participant or Beneficiary
                is
                entitled pursuant to Section 6.4(b) shall be paid in cash to such
                Participant, Former Participant or Beneficiary as soon as administratively
                practicable after the determination of such amount or, if later,
                the date
                a payment is made to such Participant, Former Participant or Beneficiary
                under Section 11.1(a) or (b); provided, however, that if the total
                value
                of his vested interest in his Accounts is less than or equals $5,000
                he
                shall be
                entitled to receive a distribution of the portion
                of such Accounts which was invested in Company Stock
                at
                the time the Participant became entitled thereto, in cash or shares
                of
                Company Stock, with the value of any fractional shares to be paid
                in
                cash.

            

       

      	(e)  	
              Notwithstanding
                anything to the contrary herein contained, unless a Participant or
                Former
                Participant has attained age sixty-five (65), if the value of the
                vested
                interest in his Accounts exceeds $5,000, no distribution may be made
                to
                such Participant or Former Participant without his express written
                consent. The value of a Participant’s vested account balance shall be
                determined without regard to that portion of the account balance
                that is
                attributable to rollover contributions (and earnings allocable thereto)
                within the meaning of Sections 402(c), 403(a)(4), 403(b)(8),
                408(d)(3)(A)(ii), and 457(e)(16) of the Code. If the value of the
                Participant’s vested account balance as so determined is $5,000 or less,
                the Plan shall immediately distribute the Participant’s entire vested
                account balance.

            

       

      	(f)  	
              Notwithstanding
                anything to the contrary herein contained, a Participant's benefits
                will
                in all events be paid in a lump sum as soon as practicable following
                the
                end of the Plan Year in which such Participant terminates employment
                if
                the total value of his vested interest in all Accounts is less than
                or
                equals $5,000. The value of a Participant’s vested account balance shall
                be determined without regard to that portion of the account balance
                that
                is attributable to rollover contributions (and earnings allocable
                thereto)
                within the meaning of Sections 402(c), 403(a)(4), 403(b)(8),
                408(d)(3)(A)(ii), and 457(e)(16) of the Code. Unless affirmatively
                elected
                otherwise, such distribution shall be made in cash and in whole shares
                of
                Company Stock for all ESOP Accounts and any other account balances
                invested in the Company Stock Funds. Effective for payments to terminated
                Participants occurring on or after March 28, 2005, in the event of
                an
                involuntary distribution greater than $1,000 in accordance with this
                Section 11.1(f), if the Participant does not elect to have such
                distribution paid directly to an eligible retirement plan specified
                by the
                Participant in a direct rollover or to receive the distribution directly
                in accordance with Section 11.1, then the Committee will pay the
                distribution in a direct rollover to an individual retirement plan
                designated by the Committee.

            

       

      Section
        11.2  Joint
        and Survivor Annuity. 

       

      	(a)  	
              Notwithstanding
                any provision of the Plan to the contrary, if any portion of a
                Participant's Rollover Account, W & B Plan Rollover Account, or ESOP
                Rollover Account represents a transfer of assets, directly or indirectly,
                from a defined benefit plan, or from a defined contribution plan
                that is
                either subject to the funding standards of Code Section 412 or otherwise
                subject to the requirements of Code Section 401(a)(11)(A), such portion
                (referred to in this Article 11 as the "Annuity-Restricted Account")
                shall, if the Participant does not die before the Annuity Starting
                Date,
                be distributed in the form of a qualified joint and survivor annuity
                in
                the absence of a qualified waiver under Section 11.3, or except as
                otherwise provided in Section 6.3(c). For purposes of this paragraph,
                Annuity Starting Date means the first day of the first period for
                which an
                amount is payable as an annuity, or, in the case of the benefit not
                payable in the form of an annuity, the first day on which all events
                have
                occurred which entitled the Participant to such benefit. The qualified
                joint and survivor annuity shall be purchased with the total amount
                (as
                determined under Article 11) credited to the Participant's
                Annuity-Restricted Account subject to this Section
                11.2.

            

       

      	(b)  	
              Notwithstanding
                any provision of the Plan to the contrary, in the case of any Participant
                who dies before distribution of his benefits under the Plan has commenced,
                a qualified preretirement survivor annuity shall be payable from
                the
                Annuity-Restricted Account (as determined under Article 11) to the
                Spouse
                of the Participant in the absence of a qualified waiver under Section
                11.3, or except as otherwise provided in Section
                6.3(c).

            

       

      Section
        11.3  Joint
        and Survivor Annuity Requirements. 

       

      	(a)  	
              This
                Plan is a profit sharing plan and the provisions of this Section
                11.3
                apply only to a Participant described in Section 11.2 and this Section.
                The provisions of this Section 11.3 do not apply to any Participant
                in the
                Plan except:

            

       

      	(i)  	
              a
                Participant described in Section 11.2;

            

       

      	(ii)  	
              a
                Participant for whom the Plan is a direct or indirect transferee
                from a
                plan subject to the survivor annuity requirements of Code Sections
                401(a)(11) and 417 and the Plan received the transfer after December
                31,
                1984, unless the transfer is an Elective
                Transfer;

            

       

      	(iii)  	
              a
                Participant who elects a life annuity distribution (if the Plan is
                required to provide a life annuity distribution option);
                or

            

       

      	(iv)  	
              a
                Participant whose benefits under a defined benefit plan maintained
                by the
                Employer are offset by benefits provided under this
                Plan.

            

       

      If
        the
        provisions of this Section apply to any Participant, the provisions of this
        Section shall apply to all vested benefits of the Participant, whether the
        Participant became vested in the benefit before or after death, which are
        payable under the Plan, including any proceeds from contracts, if any, on
        the
        Participant's life, owned by the Plan.

       

      	(b)  	
              Qualified
                Joint and Survivor Annuity.
                Unless an optional form of benefit is selected pursuant to a Qualified
                Election within the ninety (90) day period ending on the Annuity
                Starting
                Date, a married Participant's Nonforfeitable Account Balance will
                be paid
                in the normal form of a Qualified Joint and Survivor Annuity, defined
                in
                Section 11.3(d)(vi), and an unmarried Participant's Nonforfeitable
                Account
                Balance will be paid in the normal form of an immediate life annuity.
                The
                Participant may elect to have the annuity distributed upon attainment
                of
                the Earliest Retirement Age under the Plan. A Participant shall be
                considered vested even if the Participant is only vested in Employee
                Contributions. For purposes of satisfying the Qualified Joint and
                Survivor
                Annuity requirements, Account Balances shall mean benefits derived
                from
                both Employee and Employer Contributions.

            

       

      	(c)  	
              Qualified
                Preretirement Survivor Annuity.
                Unless an optional form of benefit has been selected within the Election
                Period pursuant to a Qualified Election, if a Participant dies before
                the
                Annuity Starting Date, then the Participant's Nonforfeitable Account
                Balance shall be applied toward the purchase of a Qualified Preretirement
                Survivor Annuity, defined in Section 11.3(d)(vii). The Surviving
                Spouse
                may elect to commence payment of the Qualified Preretirement Survivor
                Annuity within a reasonable period after the Participant's death.
                For
                purposes of this Section 11.3(c), the amount of the Qualified
                Preretirement Survivor Annuity attributable to Employee Contributions
                shall not be an amount in excess of the ratio of Employee and Employer
                Contributions. In determining the value of the Qualified Preretirement
                Survivor Annuity, any portion of a Participant's Individual Account
                which
                is pledged as collateral to secure payment of a Plan Participant
                loan
                shall be included in the Nonforfeitable Account
                Balance.

            

       

      	(d)  	
              Definitions.

            

       

      	(i)  	
              Annuity
                Starting Date
                means the first day of the first period for which an amount is paid
                as an
                annuity or any other form.

            

       

      	(ii)  	
              Election
                Period
                means the period that begins on the first day of the Plan Year in
                which
                the Participant attains age thirty-five (35) years and ends on the
                date of
                the Participant's death. If a Participant separates from Service
                prior to
                the first day of the Plan Year in which the Participant attains age
                thirty-five (35) years, for the Account Balance as of the date of
                separation, the Election Period shall begin on the date of separation.
                A
                Participant who will not yet attain age thirty-five (35) years as
                of the
                end of any current Plan Year may make a Special Qualified Election
                to
                waive the Qualified Preretirement Survivor Annuity for the period
                beginning on the date of the election and ending on the first day
                of the
                Plan Year in which the Participant will attain age thirty-five (35)
                years.
                The election shall not be valid unless the Participant receives a
                written
                explanation of the Qualified Preretirement Survivor Annuity in such
                terms
                as are comparable to the explanation required under Section 11.3(e)(i).
                Qualified Preretirement Survivor Annuity coverage will be automatically
                reinstated as of the first day of the Plan Year in which the Participant
                attains age thirty-five (35) years. Any new waiver on or after the
                date
                shall be subject to the full requirements of this
                Article.

            

       

      	(iii)  	
              Earliest
                Retirement Age
                means the earliest date on which, under the Plan, the Participant
                could
                elect to receive retirement benefits.

            

       

      	(iv)  	
              Nonforfeitable
                Account Balance
                means the aggregate value of the Participant's Nonforfeitable Account
                Balance derived from Employer and Employee Contributions, including
                rollovers, whether vested before or upon death, including the proceeds
                of
                contracts, if any, on the Participant's life. The provisions of this
                Article shall apply to a Participant who is vested in amounts attributable
                to Employer Contributions, Employee Contributions, or both, at the
                time of
                death or distribution.

            

       

      	(v)  	
              Qualified
                Election
                means a waiver of a Qualified Joint and Survivor Annuity or a Qualified
                Preretirement Survivor Annuity. Any waiver of a Qualified Joint and
                Survivor Annuity or a Qualified Preretirement Survivor Annuity shall
                not
                be effective unless:

            

       

      	(A)  	
              the
                Participant's Spouse to whom the Survivor Annuity or Preretirement
                Survivor Annuity is payable consents in writing to the waiver
                election;

            

       

      	(B)  	
              the
                election designates a specific Beneficiary, including any class of
                Beneficiaries or any contingent
                Beneficiaries;

            

       

      	(C)  	
              the
                Spouse is the Participant's sole primary Beneficiary, the Spouse
                consents
                to the Participant's Beneficiary designation or consents to any change
                in
                the Participant's Beneficiary designation without any further spousal
                consent;

            

       

      	(D)  	
              the
                Spouse's consent acknowledges the effect of the election;
                and

            

       

      	(E)  	
              the
                Spouse's consent is witnessed by a Plan representative or notary
                public.

            

       

      	(F)  	
              Additionally,
                a Participant's waiver of the Qualified Joint and Survivor Annuity
                shall
                not be effective unless the election designates a form of benefit
                payment
                and the Spouse consents to the form of payment designated by the
                Participant or consents to any change in that designated form of
                payment
                without any further spousal consent.

            

       

      Notwithstanding
        this consent requirement, if the Participant establishes to the satisfaction
        of
        a Plan representative that written consent may not be obtained because there
        is
        no Spouse, or the Spouse cannot be located, a waiver will be deemed a Qualified
        Election. If the Spouse is legally incompetent to give consent, the Spouse's
        legal guardian, even if the guardian is the Participant, may give consent.
        Also,
        if the Participant is legally separated or the Participant has been abandoned
        (within the meaning of local law) and the Participant has a court order to
        such
        effect, spousal consent is not required unless a Qualified Domestic Relations
        Order described in Code Section 414(p) provides otherwise. Any consent obtained
        under this provision, or establishment that the consent of a Spouse may not
        be
        obtained, shall be effective only with respect to the Spouse who signs the
        consent, or in the event of a deemed Qualified Election, the designated spouse.
        A consent that permits designa-tions by the Participant without any requirement
        of further consent by the Spouse must acknowledge that the Spouse has the
        right
        to limit consent to a specific Beneficiary, and a specific form of benefit
        where
        applicable, and that the Spouse voluntarily elects to relinquish either or
        both
        of the rights. A revocation of a prior waiver may be made by a Participant
        without the consent of the Spouse at any time before the commencement of
        benefits. The number of revocations shall not be limited. No consent obtained
        under this provision shall be valid unless the Participant has received notice
        as provided in Section 11.3(e). After the Participant's death, a Beneficiary
        may
        change the optional form of survivor benefit as permitted by the
        Plan.

       

      	(vi)  	
              Qualified
                Joint and Survivor Annuity
                means, in the case of a married Participant who does not die before
                the
                Annuity Starting Date, an immediate annuity for the life of the
                Participant with a Survivor Annuity for the life of the Spouse which
                is
                equal to fifty percent (50%) of the amount of the annuity which is
                payable
                during the joint lives of the Participant and the Spouse and which
                is the
                amount of benefit which can be purchased with the Participant's
                Nonforfeitable Account Balance. In the case of an unmarried Participant
                who does not die before the Annuity Starting Date, the Qualified
                Joint and
                Survivor Annuity requirement means an annuity for the life of the
                Participant which is the amount of benefit which can be purchased
                with the
                Participant's Nonforfeitable Account
                Balance.

            

       

      	(vii)  	
              Qualified
                Preretirement Survivor Annuity
                means an annuity for the life of the Participant's Spouse, the payments
                under which shall be equal to the amount of benefit which can be
                purchased
                with the Nonforfeitable Account Balance of the Participant. The
                Participant's Surviving Spouse will receive the same benefit that
                would be
                payable if the Participant had retired with an immediate Qualified
                Joint
                and Survivor Annuity on the day before the Participant's date of
                death.

            

       

      	(viii)  	
              Spouse,
                Surviving Spouse
                means the Spouse or Surviving Spouse of the Participant, provided
                that a
                former spouse will be treated as the Spouse or Surviving Spouse and
                a
                current spouse will not be treated as the Spouse or Surviving Spouse
                to
                the extent provided under a Qualified Domestic Relations Order described
                in Code Section 414(p).

            

       

      	(e)  	
              Notice
                Requirements.

            

       

      	(i)  	
              For
                a Qualified Joint and Survivor Annuity described in Section 11.3(d)(vi),
                the Administrator shall provide, no less than thirty (30) days and
                no more
                than ninety (90) days prior to the Annuity Starting Date, to each
                Participant a written explanation of:

            

       

      	(A)  	
              the
                terms and conditions of a Qualified Joint and Survivor
                Annuity;

            

       

      	(B)  	
              the
                Participant's right to make and the effect of an election to waive
                the
                Qualified Joint and Survivor Annuity form of
                benefit;

            

       

      	(C)  	
              the
                rights of a Participant's Spouse; and

            

       

      	(D)  	
              the
                right to make, and the effect of, a revocation of a previous election
                to
                waive the Qualified Joint and Survivor
                Annuity.

            

       

      	(ii)  	
              For
                a Qualified Preretirement Survivor Annuity described in Section
                11.3(d)(vii), the Administrator shall provide, within the applicable
                notice period for the Participant, to each Participant a written
                explanation of the Qualified Preretirement Survivor Annuity in such
                terms
                and in such manner comparable to the explanation provided for meeting
                the
                require-ments of Section 11.3(e)(i) applicable to a Qualified Joint
                and
                Survivor Annuity.

            

       

      The
        applicable notice period for the waiver of the Qualified Preretirement Survivor
        Annuity is whichever of the following periods ends last:

       

      	(A)  	
              the
                period beginning with the first day of the Plan Year in which the
                Participant attains age thirty-two (32) years and ending with the
                close of
                the Plan Year preceding the Plan Year in which the Participant attains
                age
                thirty-five (35) years;

            

       

      	(B)  	
              a
                reasonable period ending after the individual becomes a
                Participant;

            

       

      	(C)  	
              a
                reasonable period ending after Section 11.3(e)(iii) ceases to apply
                to the
                Participant; or

            

       

      	(D)  	
              a
                reasonable period ending after this Article first applies to the
                Participant.

            

       

      Notwithstanding
        the foregoing, notice must be provided within a reasonable period ending
        after
        separation from Service in the case of a Participant who separates from Service
        before attaining age thirty-five (35) years.

       

      For
        purposes of applying the preceding paragraph, a reasonable period ending
        after
        the events described in (B), (C) and (D) is the end of the two (2) year period
        beginning one (1) year prior to the date the applicable event occurs and
        ending
        one (1) year after that date. In the case of a Participant who separates
        from
        Service before the Plan Year in which the Participant attains age thirty-five
        (35) years, notice shall be provided within the two (2) year period beginning
        one (1) year prior to separation and ending one (1) year after separation.
        If
        the Participant thereafter returns to employment with the Employer, the
        applicable period for the Participant shall be redetermined.

       

      If
        a
        Participant enters the Plan after the first day of the Plan Year in which
        the
        Participant attained age thirty-two (32) years, the Administrator shall provide
        notice no later than the close of the second Plan Year succeeding the entry
        of
        the Participant in the Plan.

       

      	(iii)  	
              Notwithstanding
                the other requirements of this Section 11.3(e), the respective notices
                prescribed by this Section shall be given to a Participant even if
                the
                Plan fully subsidizes the costs of a Qualified Joint and Survivor
                Annuity
                or Qualified Preretirement Survivor Annuity. For purposes of this
                Section
                11.3(e), a plan fully subsidizes the costs of a benefit if under
                the plan
                the failure to waive the benefit by a Participant would not result
                in a
                decrease in any plan benefit with respect to the Participant and
                would not
                result in increased contributions from the Participant. Notwithstanding
                the foregoing, the Committee may provide the written explanation
                described
                above to the Participant after his benefit commencement date. The
                Participant (and his Spouse, if applicable) may waive the 30-day
                election
                period if the distribution of the elected form of benefit commences
                more
                than seven (7) days after the Committee provides the Participant
                (and his
                Spouse, if applicable) the written explanation.

            

       

      Section
        11.4  Notice
        and Explanation to Participants. 

       

      The
        Committee shall provide each Participant who has an Annuity-Restricted Account
        within a reasonable period of time prior to the commencement of benefits
        under
        the Plan a written explanation setting forth the provisions of Section
        11.3.

       

      Section
        11.5  Direct
        Rollover Optional Form of Benefit. 

       

      	(a)  	
              Direct
                Rollover.
                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 Plan
                Administrator, to have any portion of an eligible rollover distribution
                paid directly to an eligible retirement plan specified by the distributee
                in a direct rollover. Provided, however, that the Plan will not provide
                for a direct rollover (including an automatic rollover) for distributions
                from a Participant’s Roth Savings Contribution Account if the amount of
                the distributions that are eligible rollover distributions are reasonably
                expected to total less than $200 during a year. For this purpose,
                any
                distribution from a Roth Savings Contribution Account is not taken
                into
                account in determining whether distributions from a Participant’s other
                accounts are reasonably expected to total less than $200.
                

            

       

      	(b)  	
              Definitions.

            

       

      	(i)  	
              Eligible
                Rollover Distribution.
                An eligible rollover distribution is any distribution of all or any
                portion of the balance to the credit of the distributee, except that
                an
                eligible rollover distribution does not include: any distribution
                that is
                one of a series of substantially equal periodic payments (not less
                frequently than annually) made for the life (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
                distribution that is not includable in gross income (determined without
                regard to the exclusion for net unrealized appreciation with respect
                to
                Employer Securities). Notwithstanding the foregoing, a portion of
                a
                distribution shall not fail to be an eligible rollover distribution
                merely
                because the portion consists of after-tax employee contributions
                which are
                not includible in gross income. However, such portion may be transferred
                only to an individual retirement account or annuity described in
                Section
                408(a) or (b) of the Code, or to a qualified defined contribution
                plan
                described in Section 401(a) or 403(a) of the Code that agrees to
                separately account for amounts so transferred, including separately
                accounting for the portion of such distribution which is includible
                in
                gross income and the portion of such distribution which is not so
                includible. Any amount that is distributed on account of hardship
                shall
                not be an eligible rollover distribution and the distributee may
                not elect
                to have any portion of such a distribution paid directly to an eligible
                retirement plan. 

            

       

      	(ii)  	
              Eligible
                Retirement Plan.
                An eligible retirement plan is an individual retirement account described
                in Code Section 408(a), an individual retirement annuity described
                in Code
                Section 408(b), an annuity plan described in Code Section 403(a),
                or a
                qualified trust described in Code Section 501(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. An eligible retirement plan shall also mean an
                annuity
                contract described in Section 403(b) of the Code and an eligible
                plan
                under Section 457(b) of the Code which is maintained by a state,
                political
                subdivision of a state, or any agency or instrumentality of a state
                or
                political subdivision of a state and which agrees to separately account
                for amounts transferred into such plan from this Plan. The definition
                of
                eligible retirement plan shall also apply in the case of a distribution
                to
                a surviving spouse, or to a spouse or former spouse who is the alternate
                payee under a qualified domestic relation order, as defined in Section
                414(p) of the Code. Notwithstanding the foregoing, a direct rollover
                of a
                distribution from a Roth Savings Contribution Account or a Roth Rollover
                Account will only be made to another Roth elective deferral account
                under
                an applicable retirement plan described in Section 402A(e)(1) of
                the Code,
                or to a Roth IRA described in Section 408A of the Code, and only
                to the
                extent the rollover is permitted under the rules of section 402(c)
                of the
                Code.

            

       

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

            

       

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

            

       

      Section
        11.6  Election
        to Defer Receipt of Benefits. 

       

      Notwithstanding
        the foregoing, a Participant who leaves the employment of the Employer before
        his or her Normal Retirement Date or Early Retirement Date may elect to leave
        his or her Nonforfeitable Account Balance under the management of the Trustee
        until Normal Retirement Date or Early Retirement Date. The Trustee shall
        invest
        and reinvest and shall credit and charge the Individual Account with its
        proportionate share of gains and losses of the Trust Fund pursuant to Article
        5
        until the Nonforfeitable Account Balance is paid out to the Former Participant
        under this Article. Any election made under this Section shall be irrevocable
        and shall be made no later than fourteen (14) days before the electing
        Participant becomes entitled to receive his or her Nonforfeitable Account
        Balance in the Plan. Notwithstanding the foregoing, a Participant who has
        elected to leave his or her Nonforfeitable Account Balance under the management
        of the Trustee may later elect to have the Account Balance transferred to
        any
        pension or profit sharing plan maintained by another Employer in which the
        Participant has, at the time of the later election, become a Participant
        under
        the transferee plan.

       

      Section
        11.7  Election
        of Form of Payment of Benefits. 

       

      	(a)  	
              The
                Participant, Former Participant, or Beneficiary shall elect the form
                or
                forms of payment of benefits permitted in Sections 11.1 and 11.5
                which the
                Committee and Trustee shall implement. Not earlier than ninety (90)
                days,
                but not later than thirty (30) days, before the Participant's Annuity
                Starting Date, the Committee must provide a benefit notice to a
                Participant who is eligible to make an election under this Section.
                The
                Participant's Annuity Starting Date means the first day of the first
                period for which an amount is paid as an annuity or any other form.
                The
                benefit notice must explain the optional forms of benefit in the
                Plan,
                including the material features and relative values of those options,
                and
                the Participant's right to defer distribution until he or she attains
                the
                later of Normal Retirement Age or age 62.

            

       

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

            

       

      	(i)  	
              the
                Plan Administrator clearly informs the Participant that he or she
                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

            

       

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

            

       

      	(c)  	
              If
                a Participant, Former Participant, or Beneficiary makes an election
                prescribed by this Section, the Committee will direct the Trustee
                to
                distribute the Participant's Nonforfeitable Account Balance pursuant
                to
                that election. Any election under this Section is subject to the
                mandatory
                distribution requirements of Sections 11.8 and 8.3 and the survivor
                annuity requirements of Sections 11.2 and 11.3, if applicable. The
                Participant, Former Participant or Beneficiary must make an election
                under
                this Section by filing an election form with the Committee at any
                time
                before the Trustee otherwise would commence to pay a Participant's
                Account
                Balance under the applicable requirements of Articles 6, 8 and
                11.

            

       

      Section
        11.8  Limit
        on Commencement of Distribution. 

       

      	(a)  	
              Unless
                both the Employer and the Participant or Former Participant agree
                otherwise, the payment of benefits to which a Participant, Former
                Participant or Beneficiary is entitled shall in no event commence
                later
                than the latest of the following dates: 

            

       

      	(i)  	
              the
                60th day after the close of the Plan Year in which such Participant
                or
                Former Participant attains his Normal Retirement
                Date;

            

       

      	(ii)  	
              the
                60th day after the close of the Plan Year in which occurs the date
                10
                years after the date such Participant or Former Participant first
                commenced participation in the Plan; or

            

       

      	(iii)  	
              the
                60th day after the close of the Plan Year in which such Participant
                or
                Former Participant terminates his employment with all
                Employers.

            

       

      	(b)  	
              If
                payment does not commence earlier under Section 11.8(a), the payment
                of
                benefits to which a Participant, Former Participant or Beneficiary
                is
                entitled will be distributed or commence to be distributed to him
                not
                later than his Required Beginning Date.

            

       

      	(c)  	
              The
                Committee may not direct the Trustee to distribute the Participant’s
                Nonforfeitable Account Balance, nor may the Participant elect to
                make the
                Trustee distribute the Nonforfeitable Account Balance, under a method
                of
                payment which, as of the Required Beginning Date, does not satisfy
                the
                minimum distribution requirements under Code Section 401(a)(9) and
                the
                applicable Treasury Regulations. A mandatory distribution at the
                Participant’s Required Beginning Date will be in one lump sum unless the
                provisions of Section 11.2 or Section 8.3 apply. As of the first
                Distribution Calendar Year, distributions may only be made in one
                of the
                optional forms of benefit permitted by Sections 11.1, 11.2, and 11.5
                hereof.

            

       

      	(d)  	
              Defined
                terms used in this Section 11.8 and not defined in this Article or
                in
                Article 2 are defined in Section 8.3(c)(ii) and (d).
                

            

       

      Section
        11.9  Minority
        or Disability. 

       

      During
        the minority or disability of any person entitled to receive benefits hereunder,
        the Committee may direct the Trustee to make payments thereof to the guardian
        or
        other legal representative authorized under applicable law to receive property
        on behalf of such person. If permitted under applicable law, the Committee
        may
        direct such payments to be made directly to such person, to such person's
        Spouse, to a relative of such person or to any individual or institution
        having
        custody of such person. If such applicable law does not permit payment of
        benefits to be made as provided above in this Section 11.9, then such payments
        shall be made in such manner, at such time, and to such person or entity
        as may
        be required or permitted under such applicable law. Except as may otherwise
        be
        provided by applicable law: (i) neither the Committee nor the Trustee shall
        be
        required to see to the application of any payments made under this Section
        11.9;
        and (ii) the receipt of the payee shall be conclusive as to all interested
        parties.

       

      Section
        11.10   Unclaimed
        Benefit. 

       

      If
        at,
        after, or during the time when a benefit hereunder is payable to any
        Participant, Former Participant or Beneficiary, the Committee, upon request
        of
        the Trustee, or at its own instance, mails by registered or certified mail
        to
        such Participant, Former Participant or Beneficiary at his last known address,
        a
        written demand for his then address, or for satisfactory evidence of his
        continued life, or both, and if such Participant, Former Participant, or
        Beneficiary shall fail to furnish the same to the Committee within two years
        from the mailing of such demand, then, unless otherwise required by applicable
        law, the Committee may, in its sole discretion, determine that such Participant,
        Former Participant or Beneficiary has forfeited his right to such benefit
        and
        may declare such benefit, or any unpaid portion thereof, terminated as if
        the
        death of the Participant, Former Participant or Beneficiary (with no surviving
        Beneficiary) had occurred on the date of the last payment made thereon or
        on the
        date such Participant, Former Participant or Beneficiary first became entitled
        to receive benefit payments, whichever is later. All such forfeitures shall
        be
        used to reduce future Employer Contributions, shall at all times remain Trust
        Assets, and in no event shall they escheat to any governmental unit under
        any
        escheat law. If such applicable law does not permit this disposition of
        unclaimed benefits then such unclaimed benefits shall be administered in
        such
        manner as may be required or permitted under such applicable law.

       

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        TWELVE  

       

       

      TOP
        HEAVY PROVISIONS

       

      Section
        12.1  Application. 

       

      This
        Article shall apply for any Plan Year beginning with the first Plan Year
        in
        which the Plan is determined to be top-heavy.

       

      Section
        12.2  Top-Heavy
        Plan Status/Super Top-Heavy Plan Status. 

       

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

       

      If
        any
        Participant is a Non-Key Employee for any Plan Year, but the Participant
        was a
        Key Employee for any prior Plan Year, the Participant's Aggregate Account
        balance shall not be taken into account in determining whether this Plan
        is a
        Top-Heavy Plan (or whether any Aggregation Group which includes this Plan
        is a
        Top-Heavy Group) as further defined in Code Section 416(g) and the applicable
        Treasury regulations.

       

      This
        Plan
        shall be a Super Top-Heavy Plan for any Plan Year in which, as of the
        Determination Date, (a) the Present Value of Accrued Benefits of Key Employees,
        or (b) the sum of the Aggregate Accounts of Key Employees of any plan of
        an
        Aggregation Group, exceeds ninety percent (90%) of the Present Value of Accrued
        Benefits and the Aggregate Accounts of all Participants under this Plan and
        any
        plan of an Aggregation Group.

       

      If
        any
        Participant is a Non-Key Employee for any Plan Year, but the Participant
        was a
        Key Employee for any prior Plan Year, the Participant's Aggregate Account
        balance shall not be taken into account in determining whether this Plan
        is a
        Super Top-Heavy Plan (or whether any Aggregation Group which includes this
        Plan
        is a Top-Heavy Group) as further defined in Code Section 416(g) and the
        applicable Treasury regulations.

       

      For
        purposes of determining Top-Heavy and Super Top-Heavy status, the following
        definitions shall apply:

       

      	(a)  	
              Aggregate
                Account
                means, as of the Determination Date, the sum
                of:

            

       

      	(i)  	
              the
                account balances of the Savings Account, Discretionary Employer
                Contribution Account, Matching Employer Contribution Account and
                ESOP
                Transfer Account as of the most recent Valuation Date occurring within
                a
                twelve (12) month period ending on the Determination
                Date;

            

       

      	(ii)  	
              the
                contributions that would be allocated as of a date not later than
                the
                Determination Date, even though those amounts are not yet made or
                required
                to be made;

            

       

      	(iii)  	
              any
                plan distributions made during the Determination Period (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 the distributions are already
                included in the Participant's Aggregate Account balance as of the
                Valuation Date.); and

            

       

      	(iv)  	
              any
                Employee contributions, whether voluntary or mandatory (However,
                amounts
                attributable to Participant Deductible Voluntary Contributions shall
                not
                be considered to be a part of the Participant's Aggregate Account
                balance.).

            

       

      	(v)  	
              Regarding
                unrelated rollovers and plan-to-plan transfers (those which are (A)
                initiated by the Employee and (B) made from a plan maintained by
                one
                employer to a plan maintained by another employer), if this Plan
                provides
                for rollovers or plan-to-plan transfers, an unrelated rollover or
                plan-to-plan transfer shall be considered as a distribution for purposes
                of this Section. If this Plan is the plan accepting an unrelated
                rollover
                or plan-to-plan transfer, an unrelated rollover or plan-to-plan transfer
                shall not be considered as part of the Participant's Aggregate Account
                balance. 

            

       

      	(vi)  	
              Regarding
                related rollovers and plan-to-plan transfers (those either (A) not
                initiated by the Employee or (B) made to a plan maintained by the
                same
                Employer), if this Plan provides for rollovers or plan-to-plan transfers,
                a related rollover or plan-to-plan transfer shall be considered as
                a
                distribution for purposes of this Section. If this Plan is the plan
                accepting a related rollover or plan-to-plan transfer, a related
                rollover
                or plan-to-plan transfer shall be considered as part of the Participant's
                Aggregate Account balance, irrespective of the date on which the
                related
                rollover or plan-to-plan transfer is
                accepted.

            

       

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

            

       

      	(i)  	
              Required
                Aggregation Group means the group of plans composed of (A) each plan
                of
                the Employer in which a Key Employee is a Participant or participated
                at
                any time during the Determination Period, regardless of whether the
                plan
                has terminated; and (B) 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, which shall be
                aggregated.

            

       

      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.

       

      	(ii)  	
              Permissive
                Aggregation Group means the Required Aggregation Group plus 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
                Code
                Sections 401(a)(4) and 410.

            

       

      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.

       

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

            

       

      	(c)  	
              Determination
                Date
                means for any Plan Year (i) the last day of the preceding Plan Year,
                or
                (ii) in the case of the first Plan Year of the Plan, the last day
                of the
                first Plan Year.

            

       

      	(d)  	
              Determination
                Period
                means the five (5) year period ending on the Determination
                Date.

            

       

      	(e)  	
              Employer
                means the Employer that adopts this Plan. Related Employers shall
                be
                considered a single Employer for purposes of applying the limitations
                of
                these top-heavy rules.

            

       

      	(f)  	
              Excluded
                Employees
                means any Employee who has not performed any Service for the Employer
                during the five (5) year period ending on the Determination Date.
                Excluded
                Employees shall be excluded for purposes of a Top-Heavy
                determination.

            

       

      	(g)  	
              Key
                Employee
                Key employee means any employee or former employee (including any
                deceased
                employee) who at any time during the Plan Year that includes the
                determination date was an officer of the Employer having annual
                compensation greater than $130,000 (as adjusted under Section 416(i)(1)
                of
                the Code for Plan Years beginning after December 31, 2002), a 5-percent
                owner of the Employer, or a 1-percent owner of the Employer having
                annual
                compensation of more than $150,000. For this purpose, annual compensation
                means compensation within the meaning of Section 415(c)(3) of the
                Code.
                The determination of who is a key employee will be made in accordance
                with
                Section 416(i)(1) of the Code and the applicable regulations and
                other
                guidance of general applicability issued thereunder.
                

            

       

      	(h)  	
              Non-Key
                Employee
                means any Employee or Former Employee, or Beneficiary of the Employee,
                who
                is not a Key Employee.

            

       

      	(i)  	
              Determination
                of Present Values and Amounts.
                This Section 12.2 shall apply for purposes of determining the amounts
                of
                account balances of Employees as of the determination date.
                

            

       

      	(i)  	
              Distributions
                During Year Ending on the Determination Date.
                The amounts of account balances of an Employee as of the determination
                date shall be increased by the distributions made with respect to
                the
                Employee under the Plan and any Plan aggregated with the Plan under
                Section 416(g)(2) of the Code during the 1-year period ending on
                the
                determination date. The preceding sentence shall also apply to
                distributions under a terminated plan which, had it not been terminated,
                would have been aggregated with the Plan under Section 416(g)(2)(A)(i)
                of
                the Code. In the case of a distribution made for a reason other than
                separation from service, death, or disability, this provision shall
                be
                applied by substituting “5-year period” for “1-year period.”
                

            

       

      	(ii)  	
              Employees
                Not Performing Services During Year Ending on the Determination
                Date.
                The accounts of any individual who has not performed services for
                the
                Employer during the 1-year period ending on the determination date
                shall
                not be taken into account. 

            

       

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

            

       

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

            

       

      	(ii)  	
              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.

       

      	(k)  	
              Valuation
                Date
                means the Determination Date defined
                above.

            

       

      Section
        12.3  Top-Heavy
        Minimum Allocation. 

       

      	(a)  	
              Minimum
                Allocation.
                Notwithstanding the foregoing, for any Plan Year in which the Plan
                is
                determined to be Top-Heavy, the amount of Employer Non-Elective
                Contributions and Forfeitures allocated to the Individual Account
                of each
                Non-Key Employee shall be equal to the lesser of three percent (3%)
                of
                each Non-Key Employee's Compensation or the highest contribution
                rate for
                the Plan Year made on behalf of any Key Employee. However, if a defined
                benefit plan maintained by the Employer which benefits a Key Employee
                depends on this Plan to satisfy the nondiscrimination rules of Code
                Section 401(a)(4) or the coverage rules of Code Section 410 (or another
                plan benefiting the Key Employee so depends on the defined benefit
                plan),
                the top heavy minimum allocation is three percent (3%) of the Non-Key
                Employee's Compensation regardless of the contribution rate for the
                Key
                Employee.

            

       

      	(b)  	
              Compensation.
                For purposes of this Section, Compensation means Compensation defined
                in
                Section 2.12 except (i) Compensation does not include Elective
                Contributions, and (ii) any exclusions from Compensation (other than
                the
                exclusion of Elective Contributions and the exclusions described
                in
                clauses (i) through (v) of Section 2.12(a)) do not apply. Notwithstanding
                the foregoing, Compensation, for purposes of this Section, shall
                include
                elective contributions (as defined in Code Section 402(g)(3)) and
                any
                amount which is contributed or deferred by the Employer at the election
                of
                the Employee and which is not includable in the gross income of the
                Employee by reason of Code Sections 125, 132(f)(4) or 457. Notwithstanding
                the definition of Compensation in Section 2.12, the period preceding
                a
                Participant's Entry Date shall be included in determining the minimum
                top-heavy allocation provided by this
                Section.

            

       

      	(c)  	
              Contribution
                Rate.
                For purposes of this Section, a Participant's contribution rate is
                the sum
                of Employer Contributions (not including Employer Contributions to
                Social
                Security) and Forfeitures allocated to the Participant's Account
                for the
                Plan Year divided by his or her Compensation for the entire Plan
                Year. To
                determine a Participant's contribution rate, the Committee must treat
                all
                qualified top-heavy defined contribution plans maintained by the
                Employer
                (or by any Related Employers described in Section 2.50) as a single
                plan.
                For purposes of this Section, the following rules
                apply:

            

       

      	(i)  	
              Savings
                Contributions on behalf of Key Employees are taken into account in
                determining the minimum required contribution under Code Section
                416(c)(2). However, Savings Contributions on behalf of Employees
                other
                than Key Employees may not be treated as Employer Contributions for
                the
                minimum contribution or benefit requirement of Code Section
                416.

            

       

      	(ii)  	
              Matching
                Employer Contributions allocated to Key Employees are treated as
                Employer
                Contributions for determining the minimum contribution or benefit
                under
                Code Section 416. However, if a plan utilizes Matching Contributions
                allocated to Employees other than Key Employees as Employee Contributions
                or Elective Contributions to satisfy the minimum contribution requirement,
                the Matching Contributions are not treated as Matching Contributions
                for
                applying the requirements of Code Section 401(k) and
                401(m).

            

       

      	(iii)  	
              Qualified
                Non-Elective Contributions described in Code Section 401(m)(4)(C)
                may be
                treated as Employer Contributions for the minimum contribution or
                benefit
                requirement of Code Section 416. Employer matching contributions
                shall be
                taken into account for purposes of satisfying the minimum contribution
                requirements. The preceding sentence shall apply with respect to
                matching
                contributions under the Plan or, if the Plan provides that the minimum
                contribution requirement shall be met in another plan, such other
                plan.
                Employer matching contributions that are used to satisfy the minimum
                contribution requirements shall be treated as matching contributions
                for
                purposes of the actual contribution percentage test and other requirements
                of Section 401(m) of the Code. 

            

       

      	(d)  	
              Participant
                Entitled to Top-Heavy Minimum Allocation.
                The minimum allocation under this Section shall be provided to each
                Non-Key Employee who is a Participant and is employed by the Employer
                on
                the last day of the Plan Year, whether or not the Participant has
                been
                credited with one thousand (1,000) Hours of Service for the Plan
                Year. The
                minimum allocation under this Section shall not be provided to any
                Participant who was not employed by the Employer on the last day
                of the
                Plan Year. The provisions of this Section shall not apply to any
                Participant to the extent the Participant is covered under any other
                plan
                or plans of the Employer under which the minimum allocation or benefit
                requirements under Code Section 416(c)(1) or (c)(2) are met for the
                Participant.

            

       

      	(e)  	
              Contributions
                Under Other Plans.
                The Employer may provide, in an addendum to the Plan, that the minimum
                benefit requirement shall be met in another plan (including another
                plan
                that consists solely of a cash or deferred arrangement which meets
                the
                requirements of Section 401(k)(12) of the Code and matching contributions
                with respect to which the requirements of Section 401(m)(11) of the
                Code
                are met). The addendum should include the name of the other plan,
                the
                minimum benefit that will be provided under such other plan, and
                the
                employees who will receive the minimum benefit under such other plan.
                

            

       

      	(f)  	
              Compliance.
                The Plan will satisfy the top-heavy minimum allocation under this
                Section.
                The Committee first will allocate the Employer Contributions (and
                Participant Forfeitures, if any) for the Plan Year pursuant to the
                allocation formula under Sections 5.4 and 5.5. The Employer then
                will
                contribute an additional amount for the Individual Account of any
                Participant entitled under this Section to a top-heavy minimum allocation
                and whose contribution rate for the Plan Year, under this Plan and
                any
                other plan aggregated under this Section, is less than the top-heavy
                minimum allocation. The additional amount is the amount necessary
                to
                increase the Participant's contribution rate to the top-heavy minimum
                allocation. The Committee will allocate the additional contribution
                to the
                Account of the Participant on whose behalf the Employer makes the
                contribution.

            

       

      Section
        12.4  Amendments. 

       

      If
        the
        Plan is determined to be top-heavy, the vesting schedule in Section 6.2(b)
        shall
        continue to apply notwithstanding a determination in a later Plan Year that
        the
        Plan is no longer top-heavy unless the Company shall amend the Plan to provide
        otherwise. No such amendment shall be effective unless, in the event it changes
        the Plan's applicable vesting schedule (determined in accordance with
        regulations under Code Section 411), each Participant's Nonforfeitable
        percentage of his Accounts (determined as of the later of the date such
        amendment is adopted or becomes effective) is not less than such percentage
        computed under Section 6.2(b) without regard to such amendment and unless,
        in
        such event, each Participant having not less than three (3) Years of Service
        is
        permitted to elect (pursuant to regulations under Code Section 411) to have
        his
        nonforfeitable percentage computed under the Plan without regard to such
        amendment

       

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        THIRTEEN  

       

       

      REPURCHASE
        OF COMPANY STOCK;

       

      NON-TERMINABLE
        PROTECTIONS AND RIGHTS

       

      Section
        13.1  Employee
        Stock Ownership Plan. 

       

      The
        ESOP
        Accounts in the Plan are specifically designated an "employee stock ownership
        plan" within the meaning of Code Section 4975(e)(7), ERISA Section 407(d)(6),
        and applicable regulations thereunder. This Article applies solely to the
        Company Stock held in ESOP Accounts.

       

      Section
        13.2  Put
        Option. 

       

      A
        share
        of Company Stock shall be subject to a put option if it is not publicly traded,
        or if it is subject to a trading limitation, when distributed. The Employer
        shall issue a put option to each Participant or Former Participant receiving
        a
        distribution of Company Stock from the Plan required under the conditions
        described in the foregoing sentence, in accordance with the terms set forth
        in
        this Section:

       

      	(a)  	
              Exercise
                of Option.
                The put option shall be exercisable only by a Participant or Beneficiary;
                by a donee of the Participant or Beneficiary; or by a person, including
                an
                estate or its distributees, to whom such Company Stock has passed
                because
                of the death of the Participant.

            

       

      	(b)  	
              Rights
                Under Put Option.
                The put option shall give to the eligible holder the right to put
                such
                shares to the Employer. Under no circumstances may it bind the Plan
                or
                Trust, but it may grant the Plan or Trust an option to assume the
                rights
                and obligations of the Employer at the time it is exercised; if it
                is
                known, at the time such stock is acquired, that Federal or state
                law will
                be violated if the Employer honors such put option, it must permit
                the
                stock subject thereto to be put, in a manner consistent with such
                law, to
                a third party (e.g., an affiliate or a shareholder of the Employer
                other
                than the Plan or the Trust) that has substantial net worth at the
                time
                such debt is incurred and whose net worth is reasonably expected
                to remain
                substantial.

            

       

      	(c)  	
              Period
                of Option.

            

       

      	(i)  	
              The
                put option must be exercisable at least during a sixty (60) day period
                following the date of distribution from the Trust to the Participant
                or
                Beneficiary and for an additional sixty (60) day period during the
                Plan
                Year immediately following the Plan Year in which the first option
                period
                ends;

            

       

      	(ii)  	
              In
                the case of Company Stock that is publicly traded without limitation
                when
                distributed by the Trust but ceases to be so traded within the same
                Plan
                Year as the distribution, the Employer shall notify each holder of
                such
                stock in writing on or before the tenth day after such stock ceased
                to be
                so traded that for at least a sixty (60) day period during such Plan
                Year,
                and for an additional sixty (60) day period during the following
                Plan
                Year, such stock is subject to a put option. Such notice must inform
                such
                holders of the terms of such put option, which shall satisfy the
                requirements of this Section;

            

       

      	(iii)  	
              The
                period during which it is exercisable shall not include any time
                when a
                distributee is unable to exercise it because the party bound by it
                is
                prohibited from honoring it by applicable Federal or state
                law;

            

       

      	(iv)  	
              The
                put option shall be exercisable by the holder notifying the Employer
                in
                writing that it is being exercised; and

            

       

      	(v)  	
              The
                price at which it is exercisable shall be the fair market value of
                the
                stock then prevailing, determined as of the most recent Accounting
                Date;
                provided, however, that such value shall be determined as of the
                date the
                put is honored if the holder of such put is a "disqualified person"
                (as
                defined under Section 4975 of the Code).

            

       

      	(d)  	
              Option
                Rights Not Affected by Amendment.
                The rights pro-vided to Participants under this Article shall be
                non-terminable and no amend-ment to this Plan shall affect these
                rights
                except such amendments to this Article as may be required to assure
                the
                continuing qualification of the Plan under the
                Code.

            

       

      Section
        13.3  Payment
        of Purchase Price. 

       

      If
        a
        Participant or Former Participant exercises a put option pursuant to Section
        13.2, the purchaser may make payment by delivery of a note with payments
        commencing not more than thirty (30) days after the exercise of the put option.
        The payment obligation will be satisfied by the delivery of said note, which
        must meet the following requirements:

       

      	(a)  	
              the
                note must bear a reasonable rate of interest determined at
                Closing;

            

       

      	(b)  	
              the
                purchaser must provide adequate security for the
                note;

            

       

      	(c)  	
              the
                note must provide for equal annual installments not to exceed five
                (5)
                years, with interest payable with each installment, the first installment
                due and payable thirty (30) days after the exercise of the Put
                Option;

            

       

      	(d)  	
              the
                note must provide for acceleration upon thirty (30) days' default
                of the
                payment on interest or principal; and

            

       

      	(e)  	
              the
                note must grant to the maker the right to prepay the note in whole
                or in
                part at any time or times without penalty; provided, however, the
                purchaser must not have the right to make any prepayment during the
                calendar year or fiscal year of the Participant (Beneficiary) in
                which
                Closing occurs.

            

       

      Payment
        under a put option may not be restricted by the provisions of a loan or any
        other arrangement, including the terms of the Company's articles of
        incorporation, unless so required by applicable state law.

       

      Section
        13.4  Notice. 

       

      A
        person
        has given notice under this Section when the person deposits the notice in
        the
        United States mail, first class, postage prepaid, addressed to the person
        entitled to the Notice at the address currently listed for the person in
        the
        Committee records. Any person affected by this Section has the obligation
        to
        inform the Committee of any change of address.

       

      Section
        13.5  Non-terminable
        Protections and Rights. 

       

      Except
        as
        provided in this Article, no Company Stock may be subject to a put, call,
        or
        other option, or buy-sell or similar arrangement when held by and when
        distributed from an ESOP Account, whether or not the Plan then qualifies
        as an
        employee stock ownership plan. The protections and rights granted in this
        Article and in Section 11.1 pursuant to Code Section 409(o) attributable
        to
        stock acquired after December 31, 1986, are non-terminable and shall continue
        to
        exist under the terms of this Plan with regard to Company Stock that is held
        in
        an ESOP Account or by any Participant or other person for whose benefit such
        protections and rights have been created. Neither the failure of the Plan
        to
        qualify as an employee stock ownership plan, nor an amendment of the Plan
        shall
        cause a termination of such protections and rights.

       

      Section
        13.6  Investment
        in Company Stock. 

       

      	(a)  	
              Type
                of Company Stock.
                The Trustee shall invest ESOP Accounts solely in Qualifying Company
                Stock
                and shall invest one hundred percent (100%) of the ESOP Accounts
                in
                Company Stock. The Company Stock may be Treasury Stock which has
                been
                purchased by the Employer; stock which has been authorized, but never
                issued by the Employer; Company Stock traded on a public market;
                or
                Company Stock owned by shareholders of the
                Employer.

            

       

      	(b)  	
              Purchase
                Price.
                For the purchase of Company Stock, from the Parent or any Employer
                or from
                a shareholder of the Parent or any Employer, the Trustee shall not
                pay
                more than fair market value as determined by the current market price
                of
                the Company Stock, if there is a market, and if there is not a market
                for
                the stock, then as determined by an independent appraisal. All valuations
                of Company Stock which is not readily tradable on an established
                securities market, with respect to activities carried on by the Plan,
                must
                be made by an independent appraiser meeting requirements similar
                to
                requirements of the Regulations prescribed under Code Section 170A-1.
                For
                the purchase of Company Stock from a Disqualified Person, the value
                of the
                Company Stock must be determined as of the date of the transaction.
                For
                any other purchase, the value shall be based on a current valuation.
                Notwithstanding the preceding provisions of this Section, the Trustee
                may
                purchase Company Stock at a price lower than that determined in accordance
                with the preceding provisions of this Section 13.6(b) from any source
                whatsoever. If a public market is made for the Company Stock, the
                purchase
                price shall be the average of the closing prices on the OTC for the
                last
                three days for which such prices are quoted in the Wall Street Journal
                preceding the purchase.

            

       

      	(c)  	
              Voting
                Rights.

            

       

      	(i)  	
              Each
                Participant shall be entitled to direct the Trustee as to the manner
                in
                which voting rights with respect to shares of Company Stock allocated
                to
                such Participant's ESOP Accounts shall be
                exercised.

            

       

      	(ii)  	
              In
                order to implement the voting rights granted in this Section, the
                Plan
                Administrator shall furnish the Trustee and Participants who have
                an ESOP
                Account with a notice or information statement which complies with
                both
                the law and the Plan Sponsor's charter and bylaws applicable to security
                holders in general. Allocated shares of Company Stock with respect
                to
                which timely voting instructions have not been received shall be
                voted by
                the Trustee on each matter in the same proportion as shares with
                respect
                to which such instructions have been received on such
                matter.

            

       

      	(d)  	
              Tender
                Offer

            

       

      	(i)  	
              Notwithstanding
                any other provisions of the Plan or Trust, the provisions of this
                Section
                shall govern the tendering of shares of Company Stock held in ESOP
                Accounts. Upon commencement of a tender offer for any securities
                held in
                ESOP Accounts that are Company Stock, the Plan Administrator shall
                notify
                each Participant of such tender offer, utilize its best efforts to
                timely
                distribute or cause to be distributed to the Participants such information
                as is distributed to shareholders of the Employer in connection with
                such
                tender offer, and shall provide a means by which the Participant
                can
                instruct the Trustee whether or not to tender the Company Stock allocated
                to such Participant's ESOP Accounts. The Plan Administrator shall
                provide
                the Trustee with a copy of any materials provided to Participants.
                Each
                Participant shall have the right to instruct the Trustee as to the
                manner
                in which the Trustee is to respond to the tender offer for any or
                all of
                the Company Stock allocated to such Participant's ESOP Accounts.
                The
                Trustee shall respond to the tender offer with respect to the Company
                Stock as instructed by the Participant. Allocated shares of Company
                Stock
                with respect to which timely tender instructions have not been received
                shall be tendered by the Trustee in the same proportion as shares
                with
                respect to which such instructions have been
                received.

            

       

      	(ii)  	
              A
                Participant who has directed the Trustee to tender shares of Company
                Stock
                allocated to such Participant's ESOP Accounts may, at any time, prior
                to
                the tender offer withdrawal date, instruct the Trustee to withdraw,
                and
                the Trustee shall withdraw such shares of Company Stock from the
                tender
                offer prior to the withdrawal deadline. A Participant shall not be
                limited
                as to the number of instructions to tender or withdraw which he may
                give
                to the Trustee.

            

       

      	(iii)  	
              The
                Trustee shall credit the proceeds received in exchange for the tendered
                Company Stock allocated to the ESOP Account of each Participant who
                instructed the Trustee to so tender, to that Participant's respective
                ESOP
                Account. The Trustee shall exercise its best efforts to invest the
                proceeds from such tender, whether cash or securities, in conformity
                with
                the requirements of Code Section 4975.

            

       

      	(e)  	
              Shareholder
                Agreements.
                The Trustee may enter into agreements with shareholders to purchase
                shares
                of Company Stock under which the Trustee is granted an option to
                purchase
                all or a portion of the shares of Company Stock owned by the shareholders
                on the death of the shareholder or shareholders. To provide for the
                funding of the purchase of shares of Company Stock, the Trustee may
                apply
                for and pay premiums on contracts of life insurance on the life of
                such
                shareholder for the benefit of the Trust Fund as a whole, provided,
                however, that the Trustee may not enter into any agreement which
                would
                obligate the Plan and Trust to purchase Company Stock from a particular
                shareholder at an indefinite time determined upon the happening of
                an
                event such as death of the shareholder.

            

       

      Section
        13.7  Diversification
        of Investment. 

       

      	(a)  	
              A
                Participant may, at any time, elect to direct the Trustee to diversify
                the
                investment of any portion or all of his or her ESOP Accounts then
                invested
                in Qualifying Employer Securities. The Trustee shall satisfy such
                election
                by substituting for the amount of Company Stock for which the Participant
                elected diversification an equivalent amount of participant-directed
                investments in other Investment Funds offered under the Plan pursuant
                to
                Article VII, with such substitution to be effected as soon as
                administratively feasible after the Participant's election but in
                all
                events no later than ninety (90) days following the date of the
                Participant's election.

            

       

      	(b)  	
              The
                Administrator shall notify each Participant regarding his or her
                right to
                diversify the shares of Company Stock in his or her ESOP Accounts
                at least
                thirty (30) days before the Participant is eligible to diversify
                such
                shares or at such later time as permitted under Internal Revenue
                Service
                Notice 2006-107 or Employee Benefit Security Administration Field
                Assistance Bulletin 2006-03. The notice must describe the importance
                of
                diversifying investments and be written in a manner calculated to
                be
                understood by the average Participant.

            

       

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        FOURTEEN  

       

       

      ADOPTION
        BY OTHER ORGANIZATIONS

       

      Section
        14.1  Procedure
        for Adoption. 

       

      Any
        corporation or other organization with employees, now in existence or hereafter
        formed or acquired, which is not already an Employer under the Plan and which
        is
        otherwise legally eligible, may, in the future, with the consent and approval
        of
        the Company, by resolution or decision of its own board or governing authority,
        adopt the Plan and the Trust, for all or any classification of persons in
        its
        employment, and thereby, from and after the effective date specified in such
        resolution or decision, become an Employer. The adoption resolution or decision
        may contain such specified changes and variations in the terms and provisions
        of
        the Plan or the Trust Agreement as may be acceptable to the Company and the
        Trustee. The adoption resolution or decision shall become, as to such adopting
        organization and its Employees, a part of the Plan and the Trust Agreement.
        It
        shall not be necessary for the adopting organization to sign or execute the
        Plan
        or the Trust Agreement. The effective date of the Plan for any such adopting
        organization shall be that stated in the resolution or decision of adoption,
        and
        from and after such effective date such adopting organization shall assume
        all
        the rights, obligations, and liabilities of an Employer under the Plan and
        the
        Trust Agreement, and shall be included within the meaning of the term Employer.
        The administrative powers and control of the Company, as provided in the
        Plan
        and the Trust Agreement, including the right of amendment and of appointment
        and
        removal of the Committee, the Trustee, and their successors, shall be the
        sole
        right of the Company and shall not be diminished by reason of the participation
        of any such adopting organization. Any participating Employer may withdraw
        from
        the Plan and the Trust at any time without affecting other Employers not
        withdrawing, by complying with the provisions of the Plan and the Trust
        Agreement. Separate records shall be kept as to each Employer and its
        Employees.

       

       

      *
        * * * *
        * *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        FIFTEEN  

       

       

      AMENDMENT
        AND TERMINATION OF PLAN

       

      Section
        15.1  Amendment
        of the Plan. 

       

      The
        Company may, without the consent of any other party, make from time to time
        any
        amendment or amendments to the Plan which do not operate retroactively to
        reduce
        or divest the then-vested interest in any Discretionary Employer Contribution
        Account, Matching Employer Contribution Account, W & B Plan Rollover
        Account, or ESOP Transfer Account or to reduce or divest any benefit then
        payable hereunder. Each such amendment shall be in writing, signed by a duly
        authorized officer of the Company and shall become effective as of the date
        specified therein. In addition, no such amendment shall (i) reduce the vested
        percentage of any Participant with respect to Employer contributions made
        either
        before or after the effective date of the amendment; (ii) eliminate or reduce
        an
        early retirement benefit or a retirement-type subsidy or eliminate an optional
        form of benefit with respect to benefits attributable to service before the
        amendment; or (iii) restrict the availability of an "alternative form of
        benefit" to a certain select group or classification of Participants or
        Beneficiaries which favor the "prohibited group," or restrict or deny a
        Participant through the withholding of consent or the exercise of discretion
        by
        some person or persons other than the Participant (and, where relevant, his
        Spouse) of an alternative form of benefit. For purposes of this Section 15.1,
        Plan provisions will be considered to favor the prohibited group if the group
        of
        Employees to whom the benefit is available does not satisfy either the 70%
        test
        of Code Section 410(b)(1)(A) or the nondiscriminatory classification test
        of
        Code Section 410(b)(1)(B). For purposes of this Section 15.1, an alternative
        form of benefit encompasses the different forms of benefit payment available
        under the Plan which provide that (a) a Participant's benefits under the
        Plan
        may be paid in more than one form, or (b) payment of a particular form of
        benefits may commence at some time earlier or later than the normal date
        for the
        commencement of such benefit.

       

      Whenever
        Participating Employers have elected to adopt this Plan, amendment of this
        Plan
        by the Plan Sponsor shall be effective upon the written action of the Plan
        Sponsor. Each Participating Employer shall be deemed to have authorized
        irrevocably the Plan Sponsor or any person(s) duly authorized by resolution
        of
        the Board of Directors of the Plan Sponsor, to amend and modify this Plan
        in any
        manner it deems necessary or desirable, retroactively or prospectively, subject
        to the provisions of this Article. 

       

      Section
        15.2  Right
        to Terminate. 

       

      An
        Employer may at any time terminate the Plan with respect to its Employees,
        pursuant to resolution or decision of the Board of Directors or other governing
        authority of such terminating Employer. Upon termination with respect to
        an
        Employer, the Committee shall direct the Trustee to distribute the share
        of the
        Trust Assets allocable to the Employees of such Employer, as provided in
        Section
        15.4. If the Plan is terminated with respect to fewer than all Employers,
        the
        Plan shall continue in effect for Employees of the remaining Employers.
        Notwithstanding the foregoing, distributions may not be made following
        termination of the Plan if the Employer establishes or maintains an alternative
        defined contribution plan, as more particularly described in Treasury Regulation
        Section 1.401(k)-1(d)(4)(i).

       

      Section
        15.3  Consolidation
        or Merger. 

       

      Upon
        an
        Employer's liquidation, dissolution, bankruptcy, or insolvency, or upon its
        sale, consolidation or merger to or with another organization that is not
        an
        employer hereunder, in which such Employer is not the surviving company,
        the
        Plan will terminate insofar as that Employer is concerned unless the successor
        to that Employer assumes the duties and responsibilities of such Employer
        by
        adopting the Plan and Trust, by combining the Plan and Trust with an existing
        plan and trust of such successor with the consent and agreement of that
        Employer, or by the establishment of a separate plan and trust to which the
        Trust Assets held on behalf of the Employees of such Employer shall be
        transferred with the consent and agreement of that Employer. If the successor
        to
        an Employer is itself an Employer, such successor shall succeed to all the
        rights and duties under the Plan and Trust of the Employers
        involved.

       

      Section
        15.4  Liquidation
        of Trust Fund Upon Termination. 

       

      Upon
        a
        complete or partial termination of the Plan with respect to any Employer,
        the
        Discretionary Employer Contribution Accounts, Matching Employer Contribution
        Accounts, W & B Plan Rollover Accounts, and ESOP Transfer Accounts, if any,
        of the Participants, Former Participants and Beneficiaries affected thereby
        shall become fully vested and Nonforfeitable, and the proportionate interests
        of
        such Participants, Former Participants and Beneficiaries in the Trust Assets,
        as
        determined by the Committee, shall be distributed as soon as practicable
        after
        provision is made for the expenses of administration, termination and
        liquidation. Distributions due to termination of the Plan will be made in
        accordance with the methods of distribution provided for in the
        Plan.

       

      Section
        15.5  Permanent
        Discontinuance of Contributions. 

       

      Upon
        a
        permanent discontinuance of contributions with respect to any Employer, the
        Discretionary Employer Contribution Accounts, Matching Employer Contribution
        Accounts, W & B Plan Rollover Accounts, and ESOP Transfer Accounts shall
        become fully vested and nonforfeitable and, unless such Employer provides
        by
        appropriate resolution that the Plan and Trust will continue for the purpose
        of
        holding, investing, and distributing Trust Assets pursuant to other provisions
        of the Plan and Trust Agreement, the proportionate interest of the Participants,
        Former Participants and Beneficiaries of such Employer in the Trust Assets,
        as
        determined by the Committee, shall be distributed (subject to the restrictions
        of Section 11.3) as soon as practicable after provision is made for the expenses
        of administration, termination and liquidation.

       

      Section
        15.6  Consolidation
        or Merger of Plan. 

       

      In
        the
        event that the Plan is merged or consolidated with any other plan, or in
        the
        event that any assets or liabilities of the Plan are transferred to any other
        plan, the benefit any Participant, Former Participant or Beneficiary under
        the
        Plan would be entitled to receive if such other plan were terminated immediately
        after such merger, consolidation, or transfer shall be equal to or greater
        than
        the benefit such Participant, Former Participant or Beneficiary would be
        entitled to receive if the Plan terminated immediately before such merger,
        consolidation, or transfer.

       

      *
        * * * *
        * *

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        SIXTEEN  

       

       

      GENERAL
        PROVISIONS

       

      Section
        16.1  Non-Guarantee
        of Employment. 

       

      Nothing
        contained in the Plan or Trust Agreement shall be construed as a contract
        of
        employment between any person and an Employer, as a right of any person to
        be
        continued in the employment of an Employer (or such entity), or as a limitation
        of the right of an Employer (or such entity) to discharge any person, with
        or
        without cause.

       

      Section
        16.2  Manner
        of Payment. 

       

      Subject
        to the provisions of Sections 11.7 and 11.8, wherever and whenever it is
        herein
        provided for payments or distributions to be made, said payments or
        distributions shall be made directly into the hands of the Participant, Former
        Participant, Beneficiary, or their respective administrators, executors,
        or
        guardians, as the case may be. Deposit to the credit of any such person in
        any
        bank or trust company selected by such person shall be deemed to be payment
        into
        his hands.

       

      Section
        16.3  Nonalienation
        of Benefits. 

       

      	(a)  	
              In
                General.
                Except as otherwise provided below in this Section 16.3, interests
                of
                Participants, Former Participants and Beneficiaries under the Plan
                and
                benefits payable under the Plan shall not be subject in any manner
                to
                anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
                charge, disposition, garnishment, execution, or levy of any kind,
                either
                voluntary or involuntary, including any liability for alimony or
                other
                payments for property settlement or support of a Spouse or former
                Spouse,
                or for any other relative of the Participant, Former Participant
                or
                Beneficiary, but excluding devolution by death or mental incompetency,
                prior to actually being received by the person entitled to the benefits
                under the terms of the Plan; any attempt to anticipate, alienate,
                sell,
                transfer, assign, pledge, encumber, charge or otherwise dispose of
                any
                right to benefits payable hereunder shall be void; the Trust Assets
                shall
                not in any manner be liable for, or subject to, the debts, contracts,
                liabilities, engagements or torts of any person entitled to benefits
                hereunder.

            

       

      	(b)  	
              Qualified
                Domestic Relations Order.
                Notwithstanding anything to the contrary above, however, if the Committee
                determines that a domestic relations order is a "qualified domestic
                relations order" as defined in Section 206(d)(3) of ERISA, benefits
                shall
                be payable in accordance with the applicable requirements of any
                such
                order and in accordance with the requirements of Section 206(d)(3)
                of
                ERISA. To the extent of any conflict between the terms of any such
                order
                and the terms of ERISA Section 206(d)(3), the latter shall control
                in all
                respects. To the extent provided in an order, an "alternate payee,"
                as
                described in Code Section 414(p), may elect to receive an immediate
                distribution of such payee's benefits from this Plan. Such a distribution
                may be received from any Account, as applicable.
                

            

       

      	(c)  	
              Certain
                Judgments and Settlements.
                Nothing contained in this Plan shall prevent the Trustee from complying
                with a judgment or settlement entered into on or after August 5,
                1997
                which requires the Trustee to reduce a Participant's benefits under
                the
                Plan by an amount that the Participant is ordered or required to
                pay to
                the Plan if each of the following criteria are
                satisfied:

            

       

      	(i)  	
              The
                order or requirement must arise:

            

       

      	(A)  	
              under
                a judgment or conviction for a crime involving the
                Plan;

            

       

      	(B)  	
              under
                a civil judgment (including a consent order or decree) entered by
                a court
                in an action brought in connection with an actual or alleged violation
                of
                Part 4 of Title I of ERISA; or

            

       

      	(C)  	
              under
                a settlement agreement with either the Secretary of Labor or the
                Pension
                Benefit Guaranty Corporation and the Participant in connection with
                an
                actual or alleged violation of Part 4 of title I of ERISA by a fiduciary
                or any other person.

            

       

      	(ii)  	
              The
                decree, judgment, order or settlement must expressly provide for
                the
                offset of all or part of the amount ordered or required to be paid
                to the
                Plan against the Participant's benefits under the
                Plan.

            

       

      	(iii)  	
              In
                addition, if the joint and survivor annuity requirements of Code
                Section
                401(a)(11) apply with respect to distributions from the Plan to the
                Participant and the Participant has a spouse at the time at which
                the
                offset is to be made, then one of the following three conditions
                must be
                satisfied:

            

       

      	(A)  	
              Such
                spouse has consented in writing to such offset and such consent is
                witnessed by a notary public or representative of the Plan (or it
                is
                established to the satisfaction of a Plan representative that such
                consent
                may not be obtained by reason of circumstances described in Code
                Section
                417(a)(2)(B)), or an election to waive the right of the spouse to
                either a
                qualified joint and survivor annuity or a qualified preretirement
                survivor
                annuity is in effect in accordance with the requirements of Code
                Section
                417(a); 

            

       

      	(B)  	
              Such
                spouse is ordered or required in such judgment, order, decree, or
                settlement to pay an amount to the Plan in connection with a violation
                of
                part 4 of subtitle B of title I of ERISA; or

            

       

      	(C)  	
              In
                such judgment, order, decree, or settlement, such spouse retains
                the right
                to receive the survivor annuity under a qualified joint and survivor
                annuity provided pursuant to section 401(a)(11)(A)(i) and under a
                qualified preretirement survivor annuity provided pursuant to Code
                Section
                401(a)(11)(A)(ii), determined in accordance with Code Section
                401(a)(13)(D). 

            

       

      Section
        16.4  Titles
        for Convenience Only. 

       

      Titles
        of
        the Articles, Sections and Subsections hereof are for convenience only and
        shall
        not be considered in construing the Plan.

       

      Section
        16.5  Governing
        Law. 

       

      Except
        as
        may otherwise be required by applicable federal law, the Plan and each of
        its
        provisions shall be construed and their validity determined by the laws of
        the
        State of Texas.

       

      Section
        16.6  Contributions
        Contingent Upon Approval. 

       

      Any
        contribution to the Trust Fund associated with this Plan is con-ditioned
        on
        initial qualification of the Plan under Code Section 401(a) and of the exemption
        of the Trust created under the Plan under Code Section 501(a). If the
        Commissioner of the Internal Revenue Service, upon the Employer's request
        for
        initial approval of this Plan and Trust, determines that the Plan is not
        qualified or the Trust is not exempt, then the Trustee may return to each
        Employer, within one (1) year after the date of final disposition of the
        request
        for initial ap-proval, any contribu-tion made by the Employers, and any
        increment attributable to the contribution. The Plan and Trust shall then
        terminate and all rights of Participants, Former Participants and Beneficiaries
        with respect to such Employers' contributions shall cease. 

       

      Section
        16.7  Payment
        of Expenses. 

       

      Except
        as
        otherwise specifically provided herein, all expenses incident to the
        administration, termination, or protection of the Plan and Trust, including
        but
        not limited to, actuarial, legal, accounting, and Trustee fees, may be paid
        by
        the Company, which may require reimbursement from the other Employers for
        their
        pro rata shares, or if not paid by the Company (which payment is not
        obligatory), shall be paid by the Trustee from the Trust Assets, but no amount
        paid pursuant to Section 17.9 or Subsection 16.9(d) shall be paid, directly
        or
        indirectly, from the Trust Assets. Notwithstanding the preceding, the expenses
        incident to maintaining an Account for a Former Participant shall be charged
        to
        such Former Participant's Account.

       

      Section
        16.8  Rights
        to Trust Assets. 

       

      No
        Participant, Former Participant or Beneficiary shall have any right to, or
        interest in, any Trust Assets upon termination of his employment or otherwise,
        except as provided from time to time under the Plan, and then only to the
        extent
        of the benefits payable to such Participant, Former Participant or Beneficiary
        out of the Trust Assets. All payments of benefits as provided for in the
        Plan
        shall be made solely out of the Trust Assets and, except as may otherwise
        be
        provided by applicable law, neither the boards of Directors of the Employers,
        the Employers, the Trustee, nor the Committee shall be liable therefore in
        any
        manner.

       

      Section
        16.9  Disclaimer
        of Liability. 

       

      Except
        as
        otherwise provided herein or under Sections 404 through 409 of ERISA (to
        the
        extent applicable):

       

      	(a)  	
              Neither
                the Board of Directors of the Employers, the Employers, the Trustee,
                nor
                the Committee guarantees the Trust Assets or other Assets of the
                Plan in
                any manner against loss or depreciation, and they shall not be liable
                for
                any act or failure to act which is made in good faith pursuant to
                the
                provisions of the Plan and Trust
                Agreement.

            

       

      	(b)  	
              The
                Board of Directors of the Employers and the Employers shall not be
                responsible for any act or failure to act of the Committee orr the
                Trustee.

            

       

      	(c)  	
              The
                Committee shall not be responsible for any act or failure to act
                of the
                Board of Directors of the Employers, the Employers, or the
                Trustee.

            

       

      	(d)  	
              Each
                Employer shall indemnify each member of its Board of Directors against
                any
                liability or losses sustained by such member by reason of any act
                or
                failure to act relating to the Plan or Trust in his capacity as such
                member if such act or failure to act is in good faith and does not
                constitute willful misconduct. Such indemnification shall include
                attorney's fees and other costs and expenses reasonably incurred
                by such
                member in defense of any action brought against him by reason of
                any such
                act or failure to act.

            

       

      Section
        16.10  Persons
        May Serve in More than One Capacity. 

       

      A
        person
        may serve both as a member or secretary of the Committee and as a Trustee
        hereunder. A person serving as a member of the Board of Directors or as an
        officer of an Employer may serve as a member or secretary of the Committee
        or as
        a Trustee, or both, hereunder.

       

      Section
        16.11  Construction. 

       

      The
        masculine gender, where appearing in the Plan, shall be deemed to include
        the
        feminine gender, unless the context clearly indicates to the contrary. The
        words
        "herein," "hereof," "hereunder" and other similar compounds of the word "here"
        shall mean and refer to the entire Plan, not to any particular provision,
        section, or subsection, and words used in the singular or the plural may
        be
        construed as though in the plural or singular where they would so
        apply.

       

      Section
        16.12  Counterparts. 

       

      The
        Plan
        may be executed in any number of counterparts, each of which shall be considered
        an original, and only one such counterpart need be produced.

       

      Section
        16.13  No
        Involuntary Retirement Because of Age. 

       

      Notwithstanding
        the provisions hereof defining Normal Retirement Date and Retirement, nor
        any
        other provision hereof, nothing contained in the Plan or Trust Agreement
        shall
        be construed to require or permit the involuntary retirement of any Employee
        solely because of age.

       

      Section
        16.14  Mistake
        of Fact. 

       

      Notwithstanding
        any contrary provision in this Agreement, if a contribution is made by an
        Employer by a mistake of fact, the contribution may be returned to the Employer
        within one (1) year after the payment of the contribution. The amount of
        the
        mistaken contribution is equal to the excess of (a) the amount contributed
        over
        (b) the amount that would have been contributed had there not occurred a
        mistake
        of fact. Earnings attributable to mistaken contributions may not be returned
        to
        the Employer, but losses attributable thereto shall reduce the amount to
        be
        returned.

       

      Section
        16.15  Disallowance
        of Deduction. 

       

      Notwithstanding
        any contrary provision in this Agreement, any contributions by an Employer
        to
        the Plan and Trust are conditioned on the deductibility of the contribution
        by
        the Employer under the Code. To the extent any deduction is disallowed, the
        Employer, within one (1) year following a final determination of the
        disallowance, whether by agreement with the Internal Revenue Service or by
        final
        decision in a court of competent jurisdiction, may demand repayment of the
        disallowed contribution, and the Trustee shall return the contribution within
        one (1) year following the disallowance. Earnings attributable to excess
        contributions may not be returned to the Employer, but losses attributable
        thereto shall reduce the amount to be returned.

       

      *
        * * * *
        *

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        SEVENTEEN  

       

       

      PLAN
        ADMINISTRATION

       

      Section
        17.1  Committee. 

       

      The
        Plan
        shall be administered by the Savings Plan Committee. The Committee shall
        consist
        of not less than three nor more then seven members. Each member shall be
        appointed, and may at any time be removed, by the Board of Directors of the
        Company, and the Board of Directors of the Company shall designate the chairman
        of the Committee. Any vacancy on the Committee resulting from resignation,
        death, removal by the Board of Directors of the Company, or otherwise, shall
        be
        filled by the Board of Directors of the Company. The chief executive officer
        of
        the Company may appoint a person to fill any vacancy during the period prior
        to
        action by the Board of Directors filling such vacancy. All usual and reasonable
        expenses of the Committee shall be paid as provided in Section 16.7. The
        members
        of the Committee shall not receive compensation from the Plan or the Trust
        with
        respect to their services in administering the Plan.

       

      Section
        17.2  Claims
        Procedure. 

       

      	(a)  	
              The
                Committee shall make all determinations as to the right of any person
                to a
                benefit. Any denial by the Committee of a claim for benefits under
                the
                Plan by a Participant, Former Participant or Beneficiary shall be
                stated
                in writing and delivered or mailed to the Participant, Former Participant
                or Beneficiary. Such notice of denial shall to the best of the Committee's
                ability, be written to be understood without legal or actuarial counsel
                or
                other specialized knowledge or advice, and
                shall:

            

       

      	(i)  	
              set
                forth the reasons for such denial;

            

       

      	(ii)  	
              specify
                the pertinent provisions of the Plan on which such denial is
                based;

            

       

      	(iii)  	
              describe
                any additional material or information necessary for perfection of
                such
                claim and explain why such material or information is necessary;
                and

            

       

      	(iv)  	
              explain
                the claims review procedure established by the Committee under the
                Plan.

            

       

      	(b)  	
              In
                the case of any Participant, Former Participant or Beneficiary whose
                claim
                for benefits under the Plan has been denied, such Participant, Former
                Participant or Beneficiary, or his duly authorized representative,
                may:

            

       

      	(i)  	
              request
                a review of such denial by written application mailed or delivered
                to the
                Committee by the 60th day after receipt of such denial;
                and

            

       

      	(ii)  	
              within
                such reasonable times as may be prescribed in the claims review procedure
                established by the Committee,

            

       

      	(A)  	
              review
                pertinent documents; and

            

       

      	(B)  	
              submit
                issues and comments in writing.

            

       

      	(c)  	
              The
                Committee shall provide a full and fair review of any request submitted
                under Section 17.2(b). In connection with such review, the Committee
                may
                request an opinion from an Employer's counsel and shall be fully
                protected
                by the Company and such Employer from any liability resulting from
                good
                faith reliance on such opinion.

            

       

      Section
        17.3  Powers
        and Duties of the Committee. 

       

      The
        Committee shall have such powers and duties as may be necessary to discharge
        its
        duties hereunder, including, but not by way of limitation, the following
        powers
        and duties:

       

      	(a)  	
              To
                administer the Plan;

            

       

      	(b)  	
              To
                construe and interpret the Plan, decide all questions of eligibility
                and
                determine the amount, manner and time of payment of any benefits
                hereunder;

            

       

      	(c)  	
              To
                review the performance of the Trustee and to report thereon to the
                Board
                of Directors of the Company;

            

       

      	(d)  	
              To
                prescribe and establish (i) procedures to be followed and forms to
                be used
                by Employees, Participants, Former Participants or Beneficiaries
                for
                commencing or resuming participation in the Plan and for applying
                for
                benefits from the Plan and (ii) such additional procedures and forms
                for
                reviewing denials of claims for benefits as the Committee deems advisable
                which are not inconsistent with the provisions of the Plan or applicable
                law, but if any procedure or form is prescribed by the Plan or by
                applicable law, such procedure or form shall be used for the purpose
                prescribed;

            

       

      	(e)  	
              To
                receive from the Employers and from Employees, Participants, Former
                Participants and Beneficiaries such information as shall be necessary
                for
                the proper administration of the Plan;

            

       

      	(f)  	
              To
                prepare and distribute, in such manner as required by applicable
                law,
                information explaining the Plan;

            

       

      	(g)  	
              To
                prepare such reports with respect to the Plan as are required by
                applicable law and such other reports as are reasonable and appropriate
                and requested by the Employers;

            

       

      	(h)  	
              To
                appoint or employ such agents or employees as it deems advisable,
                including legal counsel, accountants, and actuaries, as needed for
                the
                discharge of its duties;

            

       

      	(i)  	
              To
                allocate in writing any of its rights, powers, or duties hereunder
                to a
                particular member or members of the Committee; in the event of any
                such
                allocation, the exercise of right or power, or the discharge of a
                duty has
                been allocated shall be deemed to be an act of the Committee;
                and

            

       

      	(j)  	
              To
                designate persons who are not members of the Committee to exercise
                any of
                the foregoing powers, to carry out any of the foregoing duties, or
                to
                authorize benefit payments.

            

       

      Section
        17.4  Limitation
        on Powers. 

       

      The
        Committee shall have no power to add to, subtract from, or modify any of
        the
        terms of the Plan, or to waive or fail to apply any requirements of eligibility
        for benefits under the Plan.

       

      Section
        17.5  Limitation
        on Duties. 

       

      Except
        as
        elsewhere provided herein, the Committee shall have no power to manage or
        responsibility for managing the investing (including selection, acquiring,
        retaining, or disposing) of the Trust Assets.

       

      Section
        17.6  Rules
        and Decisions. 

       

      The
        Committee may adopt such rules as it deems necessary, desirable, or appropriate.
        All rules and decisions of the Committee shall be uniformly and consistently
        applied to all Employees, Participants, Former Participants, and Beneficiaries
        in similar circumstances. Any rule or decision which is not inconsistent
        with
        the provisions of the Plan shall be conclusive and binding upon all persons
        affected by it, and, except as otherwise provided by applicable law or herein,
        there shall be no appeal from any decision by the Committee which is within
        its
        authority. When making a determination or calculation, the Committee shall
        be
        entitled to rely upon information furnished by an Employer, the legal counsel
        of
        an Employer, or an accountant or actuary of the Plan. When making any decision
        hereunder, the Committee may consult with any Participant, Former Participant,
        or Beneficiary affected thereby and may, if appropriate, take such
        Participant's, Former Participant's, or Beneficiary's preference into account,
        but the Committee shall not be required to consult with or follow the preference
        of any Participant, Former Participant, or Beneficiary in the making of any
        decision hereunder unless it is expressly required to do so by other provisions
        hereof or by applicable law.

       

      Section
        17.7  Committee
        Procedures. 

       

      The
        Committee may act at a meeting or in writing without a meeting. The Committee
        shall appoint a secretary, who may or may not be a Committee member, and
        advise
        the Trustee of such action in writing. The secretary shall keep a record
        of all
        meetings and forward all necessary communications to the Employers or the
        Trustee. The Committee may adopt such bylaws and regulations as it deems
        desirable for the conduct of its affairs. All decisions of the Committee
        shall
        be made by the vote of a majority of the total number of members at the time
        serving on the Committee including actions in writing taken without a
        meeting.

       

      Section
        17.8  Liability
        of Committee. 

       

      Except
        as
        may otherwise be required by applicable law, no member of the Committee shall
        be
        liable for any act or omission of his own or of any agent or employee appointed
        or employed by the Committee, unless such act or omission is the result of
        his
        own willful misconduct or bad faith. The Company shall indemnify each such
        member against any liability or loss sustained by him by reason of any act
        or
        failure to act in his capacity as such member if such act or failure to act
        is
        in good faith and does not constitute willful misconduct. Such indemnification
        shall include attorney's fees and other costs and expenses reasonably incurred
        by such member in defense of any action brought against him by reason of
        any
        such act or failure to act.

       

      Section
        17.9  Bonding. 

       

      The
        secretary and members of the Committee and any persons designated under
        Subsection 17.3(j) shall serve without bond except as otherwise required
        by
        applicable law or by the Company. The premium on any bond required of the
        secretary or members of the Committee shall be paid as provided in Section
        16.7.

       

      IN
        WITNESS WHEREOF, FROZEN
        FOOD EXPRESS INDUSTRIES, INC.
        has
        caused this Plan to be executed by its duly appointed officers on this 16TH
        day
        of May, 2007, to be effective January 1, 2007, unless otherwise specified
        herein.

       

      FROZEN
        FOOD EXPRESS INDUSTRIES, INC.

       

      

       

      By:    
         /s/ Stoney M. Stubbs,
        Jr.                              
          

                          President

       

       

      ATTEST:

       

      

       

      By: 
        /s/ Leonard W. Bartholomew        

             
        SecretaryKobex Agreement

    
      

    

     

     

    

     

    EXPLORATION,
      DEVELOPMENT AND

    MINE
      OPERATING AGREEMENT

     

    

    Between

    

    U.S.
      MOLY CORP., 

    U.S.
      ENERGY CORP.,

    CRESTED
      CORP.

    

    And

    

    KOBEX
      RESOURCES LTD.

     

    

     

    Lucky
      Jack Project, Colorado USA

     

    (Previously
      known as the Mt. Emmons Project)

     

    

     

    April
      3,
      2007

     

    

    

    

    
      
        
          
          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

     

     

    

      
        	 	
                TABLE
                  OF CONTENT

              	 
	 	 	
                Page

              
	
                PART
                  I

              	
                THE
                  TRANSACTION

              	
                1

              
	
                ARTICLE
                  I

              	
                DEFINITIONS
                  AND CROSS-REFERENCES

              	
                1

              
	
                1.1

              	
                Definitions

              	
                1

              
	
                1.2

              	
                Cross
                  References

              	
                2

              
	
                ARTICLE
                  II

              	
                NAME,
                  PURPOSES AND TERM

              	
                2

              
	
                2.1

              	
                General

              	
                2

              
	
                2.2

              	
                Option
                  Period and Joint Venture Period

              	
                2

              
	
                2.3

              	
                Purposes

              	
                2

              
	
                2.4

              	
                Limitation

              	
                2

              
	
                ARTICLE
                  III

              	
                REPRESENTATIONS
                  AND WARRANTIES; TITLE TO ASSETS

              	
                2

              
	
                3.1

              	
                Representations
                  and Warranties of all Parties

              	
                2

              
	
                3.2

              	
                Representations
                  and Warranties of the U.S. Energy Group

              	
                3

              
	
                3.3

              	
                Certificates
                  of U.S. Energy and Crested

              	
                5

              
	
                3.4

              	
                Knowledge
                  of Parties

              	
                5

              
	
                3.5

              	
                Disclosures

              	
                6

              
	
                3.6

              	
                Loss
                  of Title

              	
                6

              
	
                3.7

              	
                Royalties,
                  Production Taxes and Other Payments Based on Production

              	
                6

              
	
                3.8

              	
                Agreement
                  Subject to TSX Venture Exchange Approval

              	
                6

              
	
                ARTICLE
                  IV

              	
                RELATIONSHIP
                  OF THE PARTICIPANTS

              	
                6

              
	
                4.1

              	
                No
                  Partnership or Fiduciary Relationship

              	
                6

              
	
                4.2

              	
                Tax
                  Matters

              	
                7

              
	
                4.3

              	
                Other
                  Business Opportunities

              	
                7

              
	
                4.4

              	
                Waiver
                  of Rights to Partition or Other Division of Assets

              	
                7

              
	
                4.5

              	
                Implied
                  Covenants

              	
                7

              
	
                4.6

              	
                No
                  Third Party Beneficiary Rights

              	
                7

              
	
                4.7

              	
                Relationship
                  of U.S. Energy and Crested

              	
                7

              
	
                PART
                  II

              	
                THE
                  OPTION PERIOD

              	
                7

              
	
                ARTICLE
                  V

              	
                INITIAL
                  EXPENDITURE

              	
                7

              
	
                5.1

              	
                Initial
                  Expenditure

              	
                7

              
	
                ARTICLE
                  VI

              	
                THE
                  OPTION

              	
                8

              
	
                6.1

              	
                Option

              	
                8

              
	
                6.2

              	
                Option
                  Stages

              	
                9

              
	
                6.3

              	
                Cash
                  in Lieu and Accelerated Payments

              	
                10

              
	
                6.4

              	
                Failure
                  to Make Option Payments and Termination

              	
                10

              
	
                6.5

              	
                Wind-Up
                  upon Termination During the Option Period

              	
                10

              
	
                6.6

              	
                Discretion
                  of Kobex for Manner of Payment

              	
                11

              
	
                6.7

              	
                Bankable
                  Feasibility Study Payment

              	
                11

              

      

    

     

                                                                            
      

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

     

    

      
        	 	
                TABLE
                  OF CONTENT

              	
                 

              
	
                 

              	
                (continued)

              	
                Page

              
	
                6.8

              	
                Exercise
                  of Option

              	
                11

              
	
                6.9

              	
                The
                  USE/CC Election

              	
                12

              
	
                6.10

              	
                Termination
                  on Acquisition Election

              	
                14

              
	
                6.11

              	
                Covenants
                  of USE/CC

              	
                14

              
	
                6.12

              	
                Title
                  to Property on Acquisition Election

              	
                14

              
	
                6.13

              	
                Royalty

              	
                14

              
	
                ARTICLE
                  VII

              	
                RIGHTS
                  AND OBLIGATIONS DURING THE OPTION PERIOD

              	
                14

              
	
                7.1

              	
                Manager
                  During Option Period

              	
                14

              
	
                7.2

              	
                Technical
                  Committee

              	
                15

              
	
                7.3

              	
                Management
                  Committee

              	
                15

              
	
                7.4

              	
                Water
                  Treatment Facility

              	
                15

              
	
                7.5

              	
                Reports
                  During Option Period

              	
                16

              
	
                7.6

              	
                Title
                  to Property

              	
                16

              
	
                7.7

              	
                Permit
                  Obligations of Kobex During Option Period

              	
                16

              
	
                7.8

              	
                Access
                  to Property During Option Period

              	
                16

              
	
                7.9

              	
                Maintenance
                  of Property During Option Period

              	
                16

              
	
                7.10

              	
                Management
                  of Existing Underground Mine Conditions During Exploration

              	
                16

              
	
                7.11

              	
                Indemnification
                  of Manager During Option Period

              	
                17

              
	
                7.12

              	
                Programs
                  and Budgets

              	
                17

              
	
                7.13

              	
                Presentation
                  of Programs and Budgets

              	
                17

              
	
                7.14

              	
                Review
                  and Adoption of Proposed Programs and Budgets

              	
                17

              
	
                7.15

              	
                Budget
                  Overruns; Program Changes

              	
                18

              
	
                7.16

              	
                Assignment
                  During Option Period

              	
                18

              
	
                7.17

              	
                Other
                  Provisions

              	
                18

              
	
                PART
                  III

              	
                THE
                  JOINT VENTURE PERIOD

              	
                18

              
	
                ARTICLE
                  VIII

              	
                JOINT
                  VENTURE

              	
                18

              
	
                8.1

              	
                Purpose

              	
                18

              
	
                8.2

              	
                Manager

              	
                18

              
	
                8.3

              	
                Initial
                  Participating Interests and Contributions

              	
                19

              
	
                8.4

              	
                Changes
                  in Participating Interests

              	
                19

              
	
                8.5

              	
                Deemed
                  Expenditures

              	
                19

              
	
                8.6

              	
                Conversion
                  of Minority Interest.

              	
                20

              
	
                8.7

              	
                Continuing
                  Liabilities Upon Adjustments of Participating Interests

              	
                20

              
	
                8.8

              	
                Documentation
                  of Adjustments to Participating Interests

              	
                21

              
	
                8.9

              	
                Grant
                  of Lien and Security Interest

              	
                21

              
	
                8.10

              	
                Subordination
                  of Interests

              	
                22

              
	
                8.11

              	
                Indemnity

              	
                22

              
	
                8.12

              	
                Holding
                  of Property

              	
                22

              
	
                8.13

              	
                Holding
                  of Joint Venture Property

              	
                22

              
	
                8.14

              	
                Management
                  Committee

              	
                22

              

      

    

     

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

    
       

      
        

          
            	 	
                    TABLE
                      OF CONTENTS

                  	
                     

                  
	
                     

                  	
                    (continued)

                  	
                    Page

                  
	
                    8.15

                  	
                    Facility

                  	
                    23

                  
	
                    ARTICLE
                      IX

                  	
                    PROGRAMS
                      AND BUDGETS

                  	
                    23

                  
	
                    9.1

                  	
                    Operations
                      Pursuant to Programs and Budgets

                  	
                    23

                  
	
                    9.2

                  	
                    Presentation
                      of Programs and Budgets

                  	
                    23

                  
	
                    9.3

                  	
                    Review
                      and Adoption of Proposed Programs and Budgets

                  	
                    23

                  
	
                    9.4

                  	
                    Election
                      to Participate

                  	
                    24

                  
	
                    9.5

                  	
                    Recalculation
                      or Restoration of Reduced Interest Based on Actual
                      Expenditures

                  	
                    25

                  
	
                    9.6

                  	
                    Budget
                      Overruns; Program Changes

                  	
                    26

                  
	
                    9.7

                  	
                    Emergency
                      or Unexpected Expenditures

                  	
                    26

                  
	
                    9.8

                  	
                    Development
                      Programs and Budgets; Project Financing

                  	
                    26

                  
	
                    9.9

                  	
                    Expansion
                      or Modification Programs and Budgets

                  	
                    27

                  
	
                    ARTICLE
                      X

                  	
                    ACCOUNTS
                      AND SETTLEMENTS

                  	
                    27

                  
	
                    10.1

                  	
                    Monthly
                      Statements and Applications of this ARTICLE

                  	
                    27

                  
	
                    10.2

                  	
                    Cash
                      Calls

                  	
                    27

                  
	
                    10.3

                  	
                    Failure
                      to Meet Cash Calls

                  	
                    28

                  
	
                    10.4

                  	
                    Cover
                      Payment

                  	
                    28

                  
	
                    10.5

                  	
                    Remedies

                  	
                    28

                  
	
                    10.6

                  	
                    Audits

                  	
                    31

                  
	
                    ARTICLE
                      XI

                  	
                    DISPOSITION
                      OF PRODUCTION

                  	
                    31

                  
	
                    11.1

                  	
                    Taking
                      In Kind

                  	
                    31

                  
	
                    11.2

                  	
                    Failure
                      of Participant to Take In Kind

                  	
                    32

                  
	
                    11.3

                  	
                    Hedging

                  	
                    32

                  
	
                    ARTICLE
                      XII

                  	
                    SUPPLEMENTAL
                      BUSINESS AGREEMENT

                  	
                    32

                  
	
                    12.1

                  	
                    Supplemental
                      Business Agreement

                  	
                    32

                  
	
                    ARTICLE
                      XIII

                  	
                    TRANSFER
                      OF INTEREST; PREEMPTIVE RIGHT

                  	
                    33

                  
	
                    13.1

                  	
                    General

                  	
                    33

                  
	
                    13.2

                  	
                    Limitations
                      on Free Transferability

                  	
                    33

                  
	
                    PART
                      IV

                  	
                    PROVISIONS
                      APPLICABLE TO BOTH OPTION PERIOD AND JOINT VENTURE
                      PERIOD

                  	
                    35

                  
	
                    ARTICLE
                      XIV

                  	
                    MANAGEMENT
                      COMMITTEE

                  	
                    35

                  
	
                    14.1

                  	
                    Meetings
                      of Management Committee

                  	
                    35

                  
	
                    14.2

                  	
                    Action
                      Without Meeting in Person

                  	
                    36

                  
	
                    14.3

                  	
                    Matters
                      Requiring Approval

                  	
                    36

                  
	
                    ARTICLE
                      XV

                  	
                    MANAGER

                  	
                    36

                  
	
                    15.1

                  	
                    Powers
                      and Duties of Manager

                  	
                    36

                  
	
                    15.2

                  	
                    Standard
                      of Care

                  	
                    40

                  

          

        

         

      

       

       

      
        
          
          

        

        
          -iii-

          
            

          

        

        
          
          

        

      

       

      

        
          	 	
                  TABLE
                    OF CONTENTS

                	
                   

                
	
                   

                	
                  (continued)

                	
                  Page

                
	
                  15.3

                	
                  Resignation;
                    Deemed Offer to Resign

                	
                  40

                
	
                  15.4

                	
                  Administrative
                    Charges and Services Agreement

                	
                  42

                
	
                  15.5

                	
                  Transactions
                    With Affiliates

                	
                  42

                
	
                  15.6

                	
                  Activities
                    During Deadlock

                	
                  42

                
	
                  ARTICLE
                    XVI

                	
                  WITHDRAWAL
                    AND TERMINATION

                	
                  42

                
	
                  16.1

                	
                  Termination

                	
                  42

                
	
                  16.2

                	
                  Termination
                    by Deadlock

                	
                  42

                
	
                  16.3

                	
                  Withdrawal

                	
                  43

                
	
                  16.4

                	
                  Continuing
                    Obligations and Environmental Liabilities

                	
                  43

                
	
                  16.5

                	
                  Disposition
                    of Assets on Termination

                	
                  43

                
	
                  16.6

                	
                  Non-Compete
                    Covenants

                	
                  43

                
	
                  16.7

                	
                  Right
                    to Data After Termination

                	
                  44

                
	
                  16.8

                	
                  Continuing
                    Authority

                	
                  44

                
	
                  ARTICLE
                    XVII

                	
                  ACQUISITIONS
                    WITHIN AREA OF INTEREST

                	
                  44

                
	
                  17.1

                	
                  General

                	
                  44

                
	
                  17.2

                	
                  Notice
                    to Non-Acquiring Party

                	
                  44

                
	
                  17.3

                	
                  Election
                    to Acquire

                	
                  45

                
	
                  17.4

                	
                  Election
                    to Acquire Not Exercised

                	
                  45

                
	
                  ARTICLE
                    XVIII

                	
                  ABANDONMENT
                    AND SURRENDER OF PROPERTIES

                	
                  45

                
	
                  18.1

                	
                  Abandonment
                    and Surrender of Property - Option Period

                	
                  45

                
	
                  18.2

                	
                  Abandonment
                    and Surrender of Property - Joint Venture Period

                	
                  45

                
	
                  ARTICLE
                    XIX

                	
                  DISPUTES

                	
                  46

                
	
                  19.1

                	
                  Governing
                    Law

                	
                  46

                
	
                  19.2

                	
                  Dispute
                    Resolution

                	
                  46

                
	
                  19.3

                	
                  Mediation

                	
                  46

                
	
                  19.4

                	
                  Arbitration

                	
                  46

                
	
                  ARTICLE
                    XX

                	
                  CONFIDENTIALITY,
                    OWNERSHIP, USE AND DISCLOSURE OF INFORMATION

                	
                  49

                
	
                  20.1

                	
                  Business
                    Information

                	
                  49

                
	
                  20.2

                	
                  Party
                    Information

                	
                  49

                
	
                  20.3

                	
                  Permitted
                    Disclosure of Confidential Business Information

                	
                  49

                
	
                  20.4

                	
                  Disclosure
                    Required By Law

                	
                  50

                
	
                  20.5

                	
                  Permitted
                    Disclosure

                	
                  50

                
	
                  20.6

                	
                  Public
                    Announcements

                	
                  51

                
	
                  ARTICLE
                    XXI

                	
                  GENERAL
                    PROVISIONS

                	
                  51

                
	
                  21.1

                	
                  Notices

                	
                  51

                
	
                  21.2

                	
                  Currency

                	
                  52

                
	
                  21.3

                	
                  Headings

                	
                  52

                

        

      

       

       

      
        
          
          

        

        
          -iv-

          
            

          

        

        
          
          

        

      

       

      

        
          	 	
                  TABLE
                    OF CONTENTS

                	
                   

                
	
                   

                	
                  (continued)

                	
                  Page

                
	
                  21.4

                	
                  Waiver

                	
                  52

                
	
                  21.5

                	
                  Modification

                	
                  53

                
	
                  21.6

                	
                  Force
                    Majeure

                	
                  53

                
	
                  21.7

                	
                  Rule
                    Against Perpetuities

                	
                  54

                
	
                  21.8

                	
                  Further
                    Assurances

                	
                  54

                
	
                  21.9

                	
                  Entire
                    Agreement; Successors and Assigns

                	
                  54

                
	
                  21.10

                	
                  Memorandum

                	
                  54

                
	
                  21.11

                	
                  Counterparts

                	
                  55

                

        

      

       

       

      

        
          	
                  EXHIBIT
                    A

                	
                  Property
                    Description

                
	
                  EXHIBIT
                    B

                	
                  Accounting
                    Procedures

                
	
                  EXHIBIT
                    C

                	
                  Tax
                    Matters

                
	
                  EXHIBIT
                    D

                	
                  Definitions
                    and Interpretation

                
	
                  EXHIBIT
                    E

                	
                  Section
                    3.2(g) Disclosure

                
	
                  EXHIBIT
                    F

                	
                  Certificate
                    of Non - B.C. Resident

                
	
                  EXHIBIT
                    G

                	
                  Certificate
                    of Accredited Investor

                
	
                  EXHIBIT
                    H

                	
                  Support
                    Agreement

                
	
                  EXHIBIT
                    I

                	
                  Voting
                    Trust Agreement

                
	
                  EXHIBIT
                    J

                	
                  Marketing
                    Agreement

                
	
                  EXHIBIT
                    K

                	
                  Insurance
                    Requirements

                
	
                  EXHIBIT
                    L

                	
                  Services
                    Agreement

                
	
                  EXHIBIT
                    M

                	
                  Area
                    of Interest

                
	
                  EXHIBIT
                    N

                	
                  Escrow
                    Agreement

                
	
                  EXHIBIT
                    O

                	
                  Net
                    Profits Interest

                

        

      

       

       

       

       

      
        
        

      

      
        -v-

        
          

        

      

      
        
        

      

    

    
       

       

    

    

    EXPLORATION,
      DEVELOPMENT AND MINE OPERATING AGREEMENT

     

    This
      Exploration, Development and Mine Operating Agreement is made as of April 3,
      2007 (“Agreement
      Date”)
      by and
      between KOBEX RESOURCES LTD., a Canadian corporation (“Kobex”),
      the
      address of which is 1700 - 700 West Pender Street, Vancouver, BC V6C 1G8,
      Canada, U.S. MOLY CORP., a Wyoming corporation (the “Company”),
      the
      address of which is 877 North 8th
      West,
      Riverton, WY 82501, U.S. ENERGY CORP., a Wyoming corporation, the address of
      which is 877 North 8th
      West,
      Riverton, WY 82501, (“U.S.
      Energy”)
      and
      CRESTED CORP. a Colorado corporation, the address of which is 877 North
      8th
      West,
      Riverton, WY 82501 (“Crested”)
      (collectively the Company, U.S. Energy, and Crested are “U.S.
      Energy Group”).
      

     

    RECITALS

     

    
      	A.  	
              U.S.
                Energy and Crested (collectively “USE/CC”)
                own the Company as to 50% each.

            

    

     

    
      	B.  	
              USE/CC
                collectively own 100% of certain property in Gunnison County, Colorado,
                named the “Lucky Jack Project” (the “Property”),
                previously known as the Mt. Emmons Project, and which Property is
                described in Exhibit A.
                

            

    

     

    
      	C.  	
              The
                Parties previously entered into the Letter Agreement whereby the
                U.S.
                Energy Group granted Kobex an option to earn certain interests in
                the
                Property and provided Kobex with the right to explore and, if justified,
                develop the Property.

            

    

     

    
      	D.  	
              The
                Parties wish to formalize the terms of the Letter Agreement by entering
                into this Agreement which defines the relationship of the Parties
                for two
                distinct periods: (1) the Option Period, during which Kobex can
                choose to make certain expenditures and option payments which shall
                entitle Kobex to earn an initial 15% equity interest in the Property
                and
                subsequently during which Kobex may choose to continue with making
                certain
                expenditures and option payments in order to earn an additional 35%
                equity
                interest in the Property (for an aggregate 50%); and (2) the Joint
                Venture Period during which Kobex may enter into a joint venture
                with
                USE/CC and USE/CC may later elect to have Kobex acquire an additional
                15%
                interest in the Joint Venture or elect to have Kobex acquire all
                of
                USE/CC’s interest in the Property. 

            

    

     

    NOW
      THEREFORE, in consideration of the covenants and conditions contained herein,
      Kobex and the U.S. Energy Group agree as follows:

     

    PART
      I  

     

    THE
      TRANSACTION

     

    ARTICLE
      I  

     

    DEFINITIONS
      AND CROSS-REFERENCES

     

    1.1  Definitions.
      The
      terms defined in Exhibit D
      and
      elsewhere shall have the defined meaning wherever used in this Agreement,
      including in Exhibits.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -2-

      

    

     

    1.2  Cross
      References.
      References to “Exhibits”,
      “Parts”,
      “Articles”
and
      “Sections”
refer
      to Exhibits,
      Parts,
      Articles and Sections of this Agreement. References to “Paragraphs”
and
      “Subparagraphs”
refer
      to paragraphs and subparagraphs of the referenced Exhibits.

     

    ARTICLE
      II  

     

    NAME,
      PURPOSES AND TERM

     

    2.1  General.
      The
      Parties hereby enter into this Agreement for the purposes hereinafter stated.
      All of the rights and obligations of the Parties in connection with the Assets
      or the Property and all Operations shall be subject to and governed by this
      Agreement.

     

    2.2  Option
      Period and Joint Venture Period.
      During
      the Option Period, the Property and Assets shall be managed and operated by
      the
      Parties pursuant to the terms of Part II of this Agreement, unless otherwise
      indicated therein. During the Joint Venture Period, the Property and Assets
      shall be managed and operated by the JV Participants pursuant to the terms
      of
      Part III of this Agreement, unless otherwise indicated therein. Part I and
      IV of
      this Agreement shall apply to both the Option Period and Joint Venture
      Period.

     

    2.3  Purposes.
      This
      Agreement is entered into for the following purposes and for no others, and
      shall serve as the exclusive means by which each of the Parties accomplishes
      such purposes:

     

    
      	(a)  	
              to
                conduct all permitting studies, work, and governmental submissions
                to
                allow the Property to be explored, developed and if appropriate
                produced;

            

    

     

    
      	(b)  	
              to
                conduct Exploration within the Property and Area of
                Interest;

            

    

     

    
      	(c)  	
              to
                evaluate the possible Development and Mining of the Property, and,
                if
                justified, to engage in Development and
                Mining;

            

    

     

    
      	(d)  	
              to
                engage in Operations on the
                Property;

            

    

     

    
      	(e)  	
              to
                engage in marketing Products, to the extent provided by this
                Agreement;

            

    

     

    
      	(f)  	
              to
                complete and satisfy all Environmental Compliance obligations affecting
                the Property; and

            

    

     

    
      	(g)  	
              to
                perform any other activity necessary, appropriate, or incidental
                to any of
                the foregoing.

            

    

     

    2.4  Limitation.
      Unless
      the Parties otherwise agree in writing, the Operations shall be limited to
      the
      purposes described in Section 2.3,
      and
      nothing in this Agreement shall be construed to enlarge such purposes or to
      change the relationships of the Parties as set forth in
      Section 4.1.

     

    ARTICLE
      III  

     

    REPRESENTATIONS
      AND WARRANTIES; TITLE TO ASSETS

     

    3.1  Representations
      and Warranties of all Parties.
      As of
      the Effective Date, each Party warrants and represents to the other
      that:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -3-

      

    

     

    
      	(a)  	
              it
                is a body corporate duly incorporated and validly subsisting under
                the
                laws of its incorporating
                jurisdiction;

            

    

     

    
      	(b)  	
              it
                has full power and authority to own its property and assets and to
                carry
                on its business and to enter into this
                Agreement;

            

    

     

    
      	(c)  	
              neither
                the execution and delivery of this Agreement nor any of the agreements
                referred to herein or contemplated hereby shall result in the breach
                or
                accelerate the performance required by any other agreement or arrangement
                to which it is a party; 

            

    

     

    
      	(d)  	
              it
                is not subject to any governmental order, judgment, decree, debarment,
                sanction or Laws that would preclude the permitting or implementation
                of
                Operations under this Agreement; and

            

    

     

    
      	(e)  	
              this
                Agreement has been duly executed and delivered by it and is valid
                and
                binding upon it in accordance with its
                terms.

            

    

     

    3.2  Representations
      and Warranties of the U.S. Energy Group.
      As of
      the Effective Date, the U.S. Energy Group makes the following representations
      and warranties to Kobex:

     

    
      	(a)  	
              USE/CC
                collectively own a 100% interest in the Property and the Property
                is
                properly described in Exhibit
                A;

            

    

     

    
      	(b)  	
              USE/CC
                is in exclusive possession of the Property, has good marketable title
                to
                the patented mining claims which are part of the Property, subject
                only to
                the Patented Claim Litigation, and has Good Mining Title to the unpatented
                lode and millsite claims which are part of the Property, and has
                the right
                to dispose of the Property, or an interest therein, as contemplated
                in
                this Agreement;

            

    

     

    
      	(c)  	
              the
                U.S. Energy Group has delivered to or made available for inspection
                by
                Kobex all Existing Data in its possession or control, and true and
                correct
                copies, as requested by Kobex, of all permits, licenses, leases or
                other
                contracts relating to the Property;

            

    

     

    
      	(d)  	
              with
                respect to unpatented lode claims and millsite claims located by
                the U.S.
                Energy Group that are included within the Property, except as set
                forth in
                the Title Opinion and subject
                to the paramount title of the United States: (i) the unpatented
                mining claims were properly laid out and monumented; (ii) all
                required location and validation work was properly performed;
                (iii) location notices and certificates were properly recorded and
                filed with appropriate governmental agencies; (iv) all assessment
                work required to hold the unpatented mining claims has been performed
                and
                all Governmental Fees have been paid in a manner consistent with
                that
                required of the Manager pursuant to Section 15.1(j)
                through the assessment year ending September 1, 2007; (v) all
                affidavits of assessment work, evidence of payment of Governmental
                Fees,
                and other filings required to maintain the claims in good standing
                have
                been properly and timely recorded or filed with appropriate governmental
                agencies; and (vi) the U.S. Energy Group has no knowledge of
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -4-

      

    

     

                    conflicting
      mining claims from any third parties. Nothing in this Section, however, shall
      be
      deemed to be a representation or a warranty that any of the unpatented mining
      claims contains a valuable mineral deposit;

     

    
      	(e)  	
              with
                respect to unpatented lode claims and millsite claims not located
                by the
                U.S. Energy Group but which are included within the Property, except
                as
                set forth in the Title Opinion and subject to the paramount title
                of the
                United States: to the knowledge of the U.S. Energy Group (i) all
                assessment work required to hold the unpatented mining claims has
                been
                performed and all Governmental Fees have been paid in a manner consistent
                with that required of the Manager pursuant to Section 15.1(j)
                through the assessment year ending September 1, 2007; (ii) all
                affidavits of assessment work, evidence of payment of Governmental
                Fees,
                and other filings required to maintain the claims in good standing
                have
                been properly and timely recorded or filed with appropriate governmental
                agencies; (iii) the claims are free and clear of Encumbrances or
                defects in title; and (iv) the U.S. Energy Group has no knowledge of
                conflicting mining claims. Nothing in this Section, however, shall
                be
                deemed to be a representation or a warranty that any of the unpatented
                mining claims contains a valuable discovery of
                minerals;

            

    

     

    
      	(f)  	
              with
                respect to the Property, except for the Patented Claim Litigation
                as
                previously disclosed to Kobex, since the acquisition of the Property
                from
                Phelps Dodge Corporation and Mt. Emmons Mining Company (collectively
                “PD/MEMCO”),
                there are no pending or threatened actions, suits, claims or proceedings,
                and there have been no previous transactions affecting its interests
                in
                the Property which have not been for fair consideration;

            

    

     

    
      	(g)  	
              except
                as to matters otherwise disclosed in writing to Kobex prior to the
                Effective Date as set out in Exhibit
                E:

            

    

     

    
      	(i)  	
              since
                the acquisition of the Property from PD/MEMCO activities on the Property
                with respect to the Property and its ownership and operation have
                not been
                in violation of any Laws (including without limitation any Environmental
                Laws), nor caused or permitted any damage (including Environmental
                Damage,
                as defined below) or impairment to the health, safety, or enjoyment
                of any
                person at or on the Property or in the general vicinity of the Property;
                

            

    

     

    
      	(ii)  	
              since
                the acquisition of the Property from PD/MEMCO there has been no material
                spill, discharge, leak emission, ejection, escape, dumping, or any
                release
                or threatened release of any kind, of any toxic or hazardous substance
                or
                waste (as defined by any applicable Laws) from, on, in, or under
                the
                Property or into the environment, except releases permitted or otherwise
                authorized by such law; 

            

    

     

    
      	(iii)  	
              the
                U.S. Energy Group has not received inquiry from or notice of a pending
                investigation from any governmental agency or of any
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -5-

      

    

     

                           
      administrative or judicial proceeding concerning the violation of any
      Laws;

     

    
      	(iv)  	
              the
                U.S. Energy Group has no interest in any mineral interest located
                within
                two miles of the outermost boundary of the Property, with the exception
                of
                the Property itself; and

            

    

     

    
      	(v)  	
              since
                the acquisition of the Property from PD/MEMCO by the Company, the
                water
                treatment facility (the “Facility”)
                located on the Property has at all times been operated within the
                terms of
                any permits and licenses that it is operating under, and has been
                operated
                in accordance with all applicable Laws;

            

    

     

    
      	(h)  	
              except
                for patented land within the exterior boundaries of the Property,
                except
                as set forth in the Title Opinion all
                of the land within the Property is covered by at least one mining
                or
                millsite claim of the correct nature for the deposit being located
                or the
                use being contemplated (e.g.,
                a
                lode claim was used to locate a lode deposit, a placer claim was
                used to
                locate a placer deposit, and a millsite claim was used to locate
                the
                ground for mine facilities) which the mining claim records of the
                United
                States Department of Interior, Bureau of Land Management (LR-2000
                system)
                show as being an “active” claim as of December 1,
                2006;

            

    

     

    
      	(i)  	
              except
                for the Permitted Encumbrances or the Royalty, the Property is clear
                of
                all Encumbrances;

            

    

     

    
      	(j)  	
              no
                consent or approval of any third party or governmental agency is
                required
                for the execution, delivery or performance of the Agreement by the
                U.S.
                Energy Group or the transfer or acquisition of any interest in the
                Property; and

            

    

     

    
      	(k)  	
              no
                proceedings are pending for and the U.S. Energy Group is not aware
                of any
                basis for the institution of any proceedings leading to the dissolution
                or
                winding-up of the U.S. Energy Group or the placing of any company
                in the
                U.S. Energy Group into bankruptcy or subject to any other laws governing
                the affairs of insolvent persons.

            

    

     

    The
      representations and warranties set forth above shall survive the execution
      and
      delivery of any documents of Transfer provided under this Agreement.

     

    3.3  Certificates
      of U.S. Energy and Crested.
      U.S.
      Energy and Crested have each completed and executed and is delivering
      concurrently with this Agreement:

     

    
      	(a)  	
              a
                Certificate of Non-B.C. Resident in the form attached at Exhibit
                F;
                and

            

    

     

    
      	(b)  	
              a
                Certificate of Accredited Investor attached at Exhibit G.

            

    

     

    3.4  Knowledge
      of Parties. For
      a
      representation or warranty made to a Party’s “knowledge,”
the
      term “knowledge” shall mean the actual knowledge on the part of the officers and
      directors of the applicable Party, or of facts that would reasonably lead to
      the
      indicated conclusions, and it 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -6-

      

    

     

    is
      a
      requirement that such persons must have made the enquiries that are reasonably
      necessary to enable that person to make the representation, statement or
      disclosure.

     

    3.5  Disclosures.
      Each of
      the Parties represents and warrants that it is unaware of any material facts
      or
      circumstances that have not been disclosed in this Agreement, which should
      be
      disclosed to the other Parties in order to prevent the representations and
      warranties in this Article III from being materially misleading. U.S. Energy
      Group has disclosed to Kobex all information it believes to be relevant
      concerning the Assets and Property,
      and
      has
      provided to or made available for inspection by Kobex all such information,
      but
      does not make any representation or warranty, express or implied, as to the
      value of the Assets or Property. Each Party represents to the other that in
      negotiating and entering into this Agreement it has relied solely on its own
      appraisals and estimates as to the value of the Assets and Property and upon
      its
      own geologic and engineering interpretations related thereto. 

     

    3.6  Loss
      of Title.
      Any
      failure or loss of title to any of the Assets, and all costs of defending,
      curing and clarifying title, shall be charged as follows:

     

    
      	(a)  	
              all
                such costs up to the amount of $75,000 will be borne solely by the
                U.S.
                Energy Group; and

            

    

     

    
      	(b)  	
              all
                such costs greater than the initial $75,000 referred to in Section
                3.6(a)
                shall be charged to the Business Account, and Kobex shall be entitled
                to
                include such costs as Expenditures.

            

    

     

    3.7  Royalties,
      Production Taxes and Other Payments Based on Production.
      All
      required payments of production royalties, taxes and other payments to private
      parties and governmental entities, shall be determined and made by Kobex. In
      the
      event that Kobex fails to make any such required payment, the other Party shall
      have the right to make such payment and shall thereby become subrogated to
      the
      rights of such third party; provided, however, that the making of any such
      payment on behalf of Kobex shall not constitute acceptance by the paying Party
      of any liability to such third party for the underlying obligation.

     

    3.8  Agreement
      Subject to TSX Venture Exchange Approval.
      This
      Agreement shall be subject to the approval of the TSX Venture Exchange, which
      such approval Kobex shall obtain within 90 days after the execution and delivery
      of this Agreement by the Parties hereto. In the event that approval is not
      received within 90 days, this Agreement will immediately terminate, unless
      the
      Parties agree otherwise. 

     

    ARTICLE
      IV  

     

    RELATIONSHIP
      OF THE PARTICIPANTS

     

    4.1  No
      Partnership or Fiduciary Relationship.
      The
      Parties agree and declare that the Agreement must not be construed as
      constituting an association, corporation, mining partnership or any other kind
      of partnership, except for the tax partnership describe in Exhibit
      C
      and,
      except for the agency of the Manager specifically provided for in the Agreement,
      and subject to Sections 3.2(c)
      and
8.1,
      nothing
      in the Agreement shall be deemed to constitute any Party a partner, agent or
      legal representative of any other Party for any purpose whatsoever and nothing
      in the Agreement shall create or be deemed to create a fiduciary relationship
      between the Parties, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -7-

      

    

     

     

    nor
      between the Manager and the other Parties or any of them. The rights, duties,
      obligations and liabilities of the Parties shall be several and not joint or
      collective. Each Party shall be responsible only for its obligations as herein
      set out and shall be liable only for its share of the costs and expenses as
      provided herein, and it is the express purpose and intention of the Parties
      that
      their ownership of Assets and the rights acquired hereunder shall be as tenants
      in common.

     

    4.2  Tax
      Matters.
      All tax
      matters affecting the Parties under this Agreement shall be governed by the
      principals set out in Exhibit
      C.

     

    4.3  Other
      Business Opportunities.
      Except
      as expressly provided in this Agreement, each Party shall have the right to
      engage in and receive full benefits from any independent business activities
      or
      operations, whether or not competitive with this Business, without consulting
      with, or obligation to, the other Parties. The doctrines of corporate
      opportunity or business opportunity shall not be applied to this Business nor
      to
      any other activity or operation of any of the Parties. None of the Parties
      shall
      have any obligation to the other with respect to any opportunity to acquire
      any
      property outside the Property at any time, or, except as otherwise provided
      in
      Section 16.6,
      within
      the Property after the termination of the Business. Unless otherwise agreed
      in
      writing and subject to ARTICLE
      XI,
      none of
      the Parties shall have any obligation to mill, beneficiate or otherwise treat
      any Products in any facility owned or controlled by the applicable
      Party.

     

    4.4  Waiver
      of Rights to Partition or Other Division of Assets.
      The
      Parties hereby waive and release all rights of partition, or of sale in lieu
      thereof, or other division of Assets, including any such rights provided by
      Law.

     

    4.5  Implied
      Covenants.
      There
      are no implied covenants contained in this Agreement other than those of good
      faith and fair dealing. 

     

    4.6  No
      Third Party Beneficiary Rights.
      This
      Agreement shall be construed to benefit the Parties and their respective
      successors and assigns only, and shall not be construed to create third party
      beneficiary rights in any other party or in any governmental organization or
      agency, except to the extent required by Project Financing and as provided
      in
      this Agreement. 

     

    4.7  Relationship
      of U.S. Energy and Crested.
      U.S.
      Energy and Crested intend to complete a merger. For any actions occurring prior
      to the merger, or in the event that merger does not take place, U.S. Energy
      is
      authorized by Crested to act on its behalf with respect to this Agreement.
      

     

    PART
      II  

     

    THE
      OPTION PERIOD

     

    ARTICLE
      V  

     

    INITIAL
      EXPENDITURE

     

    5.1  Initial
      Expenditure. 
      Kobex
      agrees that on or before March 31, 2008, Kobex shall complete Expenditures
      not
      less than $3,500,000 (the “Initial
      Expenditure”)
      The
      cost of the Title Opinion concerning the Property provided to Kobex by the
      U.S.
      Energy Group shall be paid by Kobex and credited to this Initial Expenditure.
      In
      addition, Kobex has provided a schedule of costs attributable to due diligence
      procedures incurred by Kobex from July 10, 2006 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -8-

      

    

     

     

    until
      the
      Agreement Date which will have future utility directly related to the purposes
      of this Agreement and $100,000 of such costs shall be included as part of the
      Initial Expenditures. If Kobex determines that it does not wish to proceed
      with
      the Option prior to completing the payment of the Initial Expenditure, it may
      terminate the Agreement immediately pursuant to Section 6.4
      by
      delivering notice to the U.S. Energy Group, and the remaining balance of the
      Initial Expenditure shall be immediately due and payable to USE/CC.

     

         
      ARTICLE VI  

    THE
      OPTION

     

    6.1  Option. USE/CC
      grants to Kobex the exclusive option (the “Option”)
      to
      acquire up to an undivided 50% interest in the Property (in two stages as
      detailed in Section 6.2)
      by
      making cash payments or share issuances (of cash equivalent value) to USE/CC
      (collectively the “Option
      Payments”)
      and
      incurring Expenditures in the following manner:

     

    
      	(a)  	
              on
                or before 10 Business Days of the later of the Agreement Date or
                Canadian
                regulatory and stock exchange approval applicable to Kobex, may make
                an
                Option Payment by either:
                

            

    

     

    
      	(i)  	
              issuing
                to USE/CC common shares in the capital of Kobex having an aggregate
                value
                of $750,000, at the Market Price and using the Exchange Rate on the
                date
                the Market Price is set; or 

            

    

     

    
      	(ii)  	
              making
                a cash payment to USE/CC of
                $750,000;

            

    

     

    
      	(b)  	
              in
                addition to the Initial Expenditure (which is a firm commitment of
                Kobex),
                on or before March 31, 2008, make an Option Payment to USE/CC of
                $500,000 or issue to USE/CC common shares in the capital of Kobex
                having
                an aggregate value of $500,000 of the Market Price and using the
                Exchange
                Rate on the date the Market Price is set; and make a payment of $700,000
                in one of the following manners, to be decided by
                Kobex:

            

    

     

    
      	(i)  	
              increasing
                the Option Payment by $700,000 (or issuing to USE/CC additional common
                shares in the capital of Kobex having a value of $700,000) for an
                aggregate $1,200,000; 

            

    

     

    
      	(ii)  	
              incurring
                an additional $700,000 in Expenditures;
                or

            

    

     

    
      	(iii)  	
              apportioning
                the additional $700,000 between increased Expenditures and an increased
                Option Payment (payable in cash or shares of Kobex);
                

            

    

     

    
      	(c)  	
              on
                or before December 31, 2008:

            

    

     

    
      	(i)  	
              completing
                not less than an additional $5,000,000 (for a minimum aggregate of
                $8,500,000 and maximum of $9,200,000) in Expenditures;
                and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -9-

      

    

     

     

    
      	(ii)  	
              making
                an Option Payment to USE/CC of $500,000 or issuing to USE/CC common
                shares
                in the capital of Kobex having an aggregate value of $500,000 of
                the
                Market Price and using the Exchange Rate on the date the Market Price
                is
                set;

            

    

     

    
      	(d)  	
              on
                or before December 31, 2009:

            

    

     

    
      	(i)  	
              completing
                not less than an additional $5,000,000 (for a minimum aggregate of
                $13,500,000 and a maximum of $14,200,000) in Expenditures;
                and

            

    

     

    
      	(ii)  	
              making
                an Option Payment to USE/CC of $500,000 or issuing to USE/CC common
                shares
                in the capital of Kobex having an aggregate value of $500,000 of
                the
                Market Price and using the Exchange Rate on the date the Market Price
                is
                set;

            

    

     

    
      	(e)  	
              on
                or before December 31, 2010:

            

    

     

    
      	(i)  	
              completing
                not less than an additional $2,500,000 (for a minimum aggregate of
                $16,000,000 and a maximum aggregate of $16,700,000) in Expenditures;
                and

            

    

     

    
      	(ii)  	
              making
                an Option Payment to USE/CC of $500,000 or issuing to USE/CC common
                shares
                in the capital of Kobex having an aggregate value of $500,000 of
                the
                Market Price and using the Exchange Rate on the date the Market Price
                is
                set;

            

    

     

    
      	(f)  	
              on
                or before December 31, 2011 making an Option Payment to USE/CC of
                $500,000
                or issuing to USE/CC common shares in the capital of Kobex having
                an
                aggregate value of $500,000 of the Market Price and using the Exchange
                Rate on the date the Market Price is set;
                and

            

    

     

    
      	(g)  	
              delivering
                to USE/CC a bankable feasibility study on the Property, including
                confirmation of advance permitting or mining permit issuance thereon
                (collectively the “Study”),
                subject to Section 6.7.

            

    

     

    Any
      excess Expenditures completed in advance of an anniversary date specified in
      this Section 6.1
      shall be
      carried over and shall qualify, and be accounted for, as Expenditures completed
      by the subsequent anniversary date. 

     

    6.2  Option
      Stages.
      The
      Option shall be exercised in two stages as follows (as further described in
      Section 6.8):

     

    
      	(a)  	
              Upon
                Kobex incurring $15,000,000 in Expenditures on the Property, Kobex
                can
                elect if it desires to earn a 15% interest in the Property, with
                such
                election being made to USE/CC within 30 days of incurring such
                Expenditures, and a failure to make such election shall be deemed
                to be an
                election by Kobex to earn the 15% interest in the Property. The documents
                reflecting this 15% interest shall be

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -10-

      

    

     

            
transferred
      through
      the procedure set forth in Section 3.2 of the Escrow Agreement;
      and

     

    
      	(b)  	
              If
                Kobex completes the remaining Option Payments and Expenditures and
                delivers the Study (subject to Section 6.7),
                it shall earn an additional 35% interest in the Property (for an
                aggregate
                50% interest). The documents reflecting this 35% interest shall be
                transferred through the procedure set forth in Section 3.3 of the
                Escrow Agreement. 

            

    

     

    6.3  Cash
      in Lieu and Accelerated Payments.
      Kobex
      may elect to pay to USE/CC (as to 50% each), on or before a date specified
      in
      Section 6.1
      the
      dollar amount equal to any shortfall in Expenditures required to be completed
      by
      Kobex by such anniversary date in lieu of completing such Expenditures, and
      such
      amounts shall thereupon be deemed to have satisfied such requirement for the
      completion of Expenditures, as applicable. Such payments shall be referred
      to as
“Shortfall
      Payments.”
In
      addition, Kobex may elect, at its discretion, to accelerate the cash payments
      and share issuances (or cash payment equivalent) in advance of the anniversary
      dates set out in Section 6.1,
      and
      such accelerated payments shall thereupon be deemed to have satisfied the
      requirements for Option Payments set out in Section 6.1,
      as
      applicable. 

     

    6.4  Failure
      to Make Option Payments and Termination. Failure
      by Kobex to make all required Option Payments and Expenditures (or Shortfall
      Payments as described in Section 6.3)
      pursuant to the schedule set forth in Section 6.1
      (subject
      to Sections 6.3
      and
21.6)
      within
      90 days of the anniversary date specified in that Section 6.1
      shall be
      deemed to be a termination of this Agreement by Kobex. If, however, Kobex fails
      to complete an Option Payment or Expenditure required by section 6.1
      (subject
      to Sections 6.3
      and
21.6)
      after
      having earned a 15% interest (by making $15,000,000 in compliance with the
      schedule set forth in Section 6.1),
      the
      Business shall continue but with the Company as Manager. Kobex may also
      terminate this Agreement by delivering written notice at any time to the U.S.
      Energy Group (including during an event of force majeure as set out in Section
      21.6)
      subject
      to paying the Initial Expenditure if not incurred yet, and upon such termination
      of this Agreement during the Option Period, the provisions of Section
6.5
      shall
      apply and Kobex must file all work and/or pay all such fees to maintain the
      Property in good standing for a period of three months after such notice, and
      deliver to the U.S. Energy Group all records, reports, studies, data, computer
      programs and other information necessary and appropriate to carrying out
      permitting and other operations on the property in a manner consistent with
      industry standards in good workmanlike practices. In addition, upon termination,
      as set forth in the Escrow Agreement, the Company (or a designated Affiliate
      of
      U.S. Energy) shall receive a blanket assignment of any permits issued in Kobex’s
      name. In addition, Kobex shall use its best efforts to take any further steps
      necessary or advisable to assign or transfer to the Company all permits related
      to the Property and operatorship of all activities on or related to the
      Property. 

     

    6.5  Wind-Up
      upon Termination During the Option Period.
      During
      the Option Period, upon termination of the Business, the Manager shall have
      the
      power and authority to do all things which are reasonably necessary or
      convenient to: (a) wind up Operations and (b) complete any transaction
      and satisfy any obligation, unfinished or unsatisfied, at the time of such
      termination or withdrawal, if the transaction or obligation arises out of
      Operations prior to such termination or withdrawal. The Manager shall have
      the
      power and authority to grant or 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -11-

      

    

     

    receive
      extensions of time or change the method of payment of an already existing
      liability or obligation, prosecute and defend actions, and take any other
      reasonable action in any matter with respect to which Kobex and the U.S. Energy
      Group continue to have, or appear or are alleged to have, a common interest
      or a
      common liability. 

     

    6.6  Discretion
      of Kobex for Manner of Payment.
      The
      determination as to the manner of payment, that is whether by cash or issuing
      shares to USE/CC, shall be at Kobex’s sole discretion. In order for Kobex to
      earn an ownership interest in the Property, the amount of payment, the schedule
      for payment, and delivery of the Study, must be performed in conformity with
      the
      requirements of Sections 6.1,
      6.2
      and
6.7.
      

     

    6.7  Bankable
      Feasibility Study Payment. 

     

    
      	(a)  	
              If
                the Option Payments and Expenditures plus the costs to prepare the
                Study
                aggregate $50,000,000 before the Study is completed and delivered,
                USE/CC
                and Kobex shall jointly fund the completion of the Study as to 50%
                USE/CC
                and 50% Kobex.

            

    

     

    
      	(b)  	
              Upon
                the completion of the Study, if the Option Payments and Expenditures
                and
                costs to prepare and complete the Study are less than $50,000,000,
                then in
                order to fully exercise the Option to obtain an aggregate 50% interest
                in
                the Property, Kobex shall pay to USE/CC concurrent with the delivery
                of
                the Study, the cash difference between $50,000,000 and the Option
                Payments
                and Expenditures plus the costs to prepare and complete the Study
                (the
                “Study
                Cash Difference”).
                If the Study is not completed on or before December 5, 2016, then
                Kobex’s
                interest in the Property shall revert to a 15% interest, and the
                Company
                shall assume operatorship of the Property, subject to force majeure
                as set
                out in Section 21.6.

            

    

     

    6.8  Exercise
      of Option. 

     

    
      	(a)  	
              Upon
                Kobex incurring an initial $15,000,000 in Expenditures, Kobex shall
                have
                earned a 15% interest in the Property.

            

    

     

    
      	(b)  	
              Upon
                Kobex incurring and paying all of the Option Payments and funding
                all of
                the Expenditures over and above the initial $15,000,000, and by completing
                and delivering the Study and the payment of any Study Cash Difference
                (if
                applicable) Kobex shall have earned an additional 35% interest in
                the
                Property (for an aggregate interest of 50%). The “50%
                Option Exercise Date”
                shall therefore be the later of the date when BOTH the Option Payments
                and
                Expenditures have been incurred and paid, and the Study has been
                delivered
                to USE/CC along with the payment to USE/CC of the Study Cash Difference
                (if any). 

            

    

     

    
      	(c)  	
              On
                the 50% Option Exercise Date, Kobex shall, by written notice to USE/CC,
                be
                entitled to either:

            

    

     

    
      	(i)  	
              form
                a Joint Venture on the terms set out in PART
                III;
                or

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -12-

      

    

     

     

    
      	(ii)  	
              within
                four months of the 50% Option Exercise Date, offer in writing to
                USE/CC a
                one time election (the “USE/CC
                Election”)
                as described in Section 6.9.
                The USE/CC Election is to be made in writing by notice to Kobex by
                USE/CC
                within 30 Business Days of such offer, and where USE/CC fails to
                make the
                USE/CC Election within such time period, USE/CC shall be deemed to
                have
                made the election set out in Section 6.9(a). 

            

    

     

    6.9  The
      USE/CC Election.
      USE/CC
      may exercise the USE/CC Election to:

     

    
      	(a)  	
              form
                a Joint Venture on the terms set out in PART
                III;
                

            

    

     

    
      	(b)  	
              form
                a Joint Venture on the terms set out in PART
                III,
                but have Kobex arrange all future financing on optimal terms available
                for
                all Operations on the Property, seeking the most appropriate blend
                of debt
                and equity in the context of the Study, and for further clarification
                Kobex shall bear all operating costs related to the Property, and
                the debt
                and equity costs related to such financing, and in return for bearing
                such
                costs, then Kobex shall earn an additional 15% Participating Interest
                in
                the Joint Venture (for an aggregate 65% Participating Interest, with
                USE/CC correspondingly reducing to a collective 35% Participating
                Interest) (the “65%
                Election”),
                with Kobex earning such additional 15% Participating Interest upon
                Kobex
                committing to arrange such financing; or 

            

    

     

    
      	(c)  	
              to
                have
                Kobex acquire, directly or indirectly, subject to Section 6.12,
                all of the then outstanding securities of Newco (the “Acquisition
                Election”)
                in consideration for the issuance of common shares of Kobex (subject
                to
                any resale restrictions, hold periods or escrow provisions that may
                be
                required or imposed by an applicable stock exchange or securities
                commission, provided, however, that Kobex shall use its best efforts
                to
                avoid or minimize such restrictions) or any successor company under
                the
                following terms:

            

    

     

    
      	(i)  	
              the
                number of shares of Kobex to be issued to the shareholders of Newco
                shall
                be based on the agreed relative values of the enterprises (after
                the
                Property, the Facility and all related permits and licenses are
                transferred to Newco), where in any event the total number of shares
                of
                Kobex issued to the shareholders of Newco shall not be greater than
                50% of
                the issued and outstanding shares of Kobex at the time the Acquisition
                Election is completed. The shares of Kobex shall be issued at the
                Market
                Price and the transaction shall be subject to stock exchange approval
                and
                structured in a manner that, to the extent possible, is tax neutral
                to the
                shareholders of Newco and Kobex.

            

    

     

    
      	(A)  	
              either
                of Kobex or USE/CC has the right to appoint an independent valuator
                to
                value Newco, with the cost of such valuator being borne equally by
                USE/CC
                collectively and Kobex. Such valuator shall be mutually acceptable
                to such
                Parties, and if such Parties cannot agree, such Parties shall utilize
                following the procedure: 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -13-

      

    

     

     

    
      	(1)  	
              when
                either Kobex or USE/CC believes that they cannot agree to a valuator,
                either such Party shall deliver written notice to the other such
                Party;

            

    

     

    
      	(2)  	
              the
                Senior Executives of Kobex or USE/CC shall meet at a mutually acceptable
                time and place within 15 days after the date of the notice required
                by
                Section 6.9(c)(i)(A)(1)
                to
                attempt to reach agreement as to a valuator. If a senior executive
                intends
                to be accompanied at the meeting by an attorney, the other Party’s’ senior
                executive shall be given at least 3 Business Days’ notice of such
                intention and may also be accompanied by an attorney;
                and

            

    

     

    
      	(3)  	
              if
                Kobex and USE/CC are unable to reach agreement on a valuator within
                30
                days of the date of the notice required by 6.9(c)(i)(A)(1),
                such Parties shall request that the Dean of the Colorado School of
                Mines
                select a valuator within 45 days from the date of the notice required
                by
                6.9(c)(i)(A)(1).
                The valuator shall determine value of Newco within 70 days of the
                notice
                required by 6.9(c)(i)(A)(1);

            

    

     

    
      	(B)  	
              if
                Newco is formed pursuant to Section 6.11(a),
                U.S. Energy and Crested shall each execute support agreements,
                substantially in the form attached as Exhibit
                H
                (each a “Support
                Agreement”),
                under which they shall agree to tender 100% of their shares of Newco
                and
                vote not less than 50% of the outstanding shares of the Newco in
                support
                of the transaction, and covenant to enter into the Voting Trust
                Agreement;

            

    

     

    
      	(C)  	
              upon
                the execution of this Agreement, in furtherance of the Acquisition
                Election, U.S. Energy and Crested Corp shall each execute and deliver
                a
                Certificate of Non-B.C. Resident in the form attached as Exhibit F
                and a Certificate of Accredited Investor attached as Exhibit G,
                and upon the issuance of shares of Kobex to the shareholders of Newco
                under this Section 6.9(c),
                U.S. Energy and Crested Corp. shall each deliver updates of the foregoing
                certificates to Kobex and USE/CC shall procure any other shareholders
                of
                Newco at such time to deliver the foregoing certificates to Kobex;
                and

            

    

     

    
      	(D)  	
              U.S.
                Energy and Crested each agree to enter into a voting trust agreement,
                substantially in the form attached as Exhibit
                I
                (the “Voting
                Trust Agreement”),
                whereby shareholders receiving shares of Kobex in the acquisition
                shall
                agree to vote not less than 50% of the shares held in Kobex in favor
                of
                the directors nominated by Kobex management to the board of directors
                of
                Kobex, or shall abstain from voting their shares held in Kobex in
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -14-

      

    

     

                           
      any voting conducted for election to the board of directors of Kobex, for the
      next five subsequent financial years after the acquisition of Newco. 

     

    6.10  Termination
      on Acquisition Election.
      If
      USE/CC selects the Acquisition Election, and upon the completion of the
      acquisition of the shares of Newco by Kobex, this Agreement will terminate,
      except for ARTICLE
      XIX,
      ARTICLE
      XX,
      Section
21.1
      and
      Section 21.8.

     

    6.11  Covenants
      of USE/CC.
      USE/CC
      covenants:

     

    
      	(a)  	
              that
                in the event the Acquisition Election is made, to form a new special
                purpose subsidiary, wholly-owned by USE/CC (“Newco”),
                to hold the Property and all permits and licenses required in connection
                with the Property;

            

    

     

    
      	(b)  	
              upon
                the formation of Newco, not to transfer or issue shares of Newco
                to any
                person other than USE/CC; and

            

    

     

    
      	(c)  	
              to
                enter into the Voting Trust Agreement upon the Acquisition Election
                being
                made and completed.

            

    

     

    6.12  Title
      to Property on Acquisition Election.
      In the
      event that USE/CC makes the Acquisition Election described in Section
6.9,
      before
      the date Newco is acquired by Kobex:

     

    
      	(a)  	
              U.S.
                Energy and Crested shall each transfer to Newco their respective
                interests
                in the Property, which shall comprise in aggregate 100% of the title
                to
                the Property, and
                all permits and licenses held in their names required in connection
                with
                the Property and the Facility; and

            

    

     

    
      	(b)  	
              the
                Company shall transfer to Newco the Facility, and all permits and
                licences
                held in its name required in connection with the Property and the
                Facility.

            

    

     

    6.13  Royalty.
      For
      further clarification, USE/CC shall retain a 6% gross overriding Royalty (the
      “Royalty”)
      pursuant
      to the Amended and Restated Royalty Deeds and Agreement dated May 29, 1987
      between U.S. Energy and Crested, respectively, and Mt. Emmons Mining Company,
      subject to adjustment pursuant to the Royalty Adjustment Agreements among the
      Parties executed contemporaneously with this Agreement. 

     

    

     

    ARTICLE
      VII  

     

    RIGHTS
      AND OBLIGATIONS DURING THE OPTION PERIOD

     

    7.1  Manager
      During Option Period.
      During
      the Option Period, Kobex shall be the Manager of all Programs on the Property,
      subject to the direction and control of the Management Committee. The provisions
      of ARTICLE
      XV
      shall
      apply to the Manager during the Option Period, including the exercise of all
      powers, the completion of all duties and the standard of care detailed in
ARTICLE
      XV,
      with
      the exception of Section 15.1(m).
      To the
      extent that any 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -15-

      

    

     

    provision
      of ARTICLE
      XV
      conflicts with the powers, duties, and standards detailed in this ARTICLE
      VII,
      this
      Article shall prevail. 

     

    7.2  Technical
      Committee.
      During
      the Option Period, a technical committee (the “Technical
      Committee”)
      shall
      be formed comprised of four members, two representatives from each of Kobex
      and
      the U.S. Energy Group. The Technical Committee shall provide technical
      assistance to the Management Committee in its review of Programs and Budgets
      and
      such other matters as the Management Committee deems appropriate. The Kobex
      appointed members, and the U.S. Energy Group appointed members, shall get an
      aggregate of one vote each, and the event of a tie, the Kobex members shall
      have
      the casting vote.

     

    7.3  Management
      Committee.
      During
      the Option Period, the Parties shall establish a “Management
      Committee”
      consisting of four members to direct and control operations and the activities
      of the Manager during the Option Period. Each of Kobex and the U.S. Energy
      Group
      shall be entitled to appoint two members, with one alternate for each, of the
      Management Committee. The Kobex appointed members, and the U.S. Energy Group
      appointed members, shall have an aggregate of one vote each, and in the event
      of
      a tie, the Kobex members shall have the casting vote. Each of Kobex and the
      U.S.
      Energy Group may appoint one or more alternates to act in the absence of a
      regular member. Any alternate so acting shall be deemed a member. The alternate
      may attend meetings of the Management Committee even if the members attend,
      provided however, they shall not have the right to vote unless the member is
      absent. Appointments by each of Kobex and the U.S. Energy Group shall be made
      or
      changed by notice to the other members. Decision making of the Management
      Committee shall be by majority vote. The Management Committee shall have the
      power and authority to approve all Programs and Budgets for the Exploration
      of
      the Property. The provisions concerning the Management Committee detailed in
      ARTICLE
      XIV
      shall
      apply during the Option Period. 

     

    7.4  Water
      Treatment Facility. 

     

    
      	(a)  	
              During
                the Option Period an independent contractor engaged by the U.S. Energy
                Group, or any subsequent independent contractor as appointed by the
                Management Committee, shall operate the Facility, and such contractor
                shall carry adequate insurance for operations and for any liabilities
                related to operations of the Facility. Kobex shall pay all operating
                costs
                for the Facility during the Option Period but shall have no decision
                making authority with respect to Facility operations and Kobex shall
                bear
                responsibility only for losses or damage caused by Kobex. Kobex,
                however,
                shall have no liability for any losses incurred or damage caused
                by the
                contractor or the Company in connection with the operation of the
                Facility. 

            

    

     

    
      	(b)  	
              After
                the Option Period, an independent contractor engaged by the Management
                Committee shall operate the Facility, and such independent contractor
                shall carry adequate insurance for operations and for any liabilities
                related to such operations. Kobex and the U.S. Energy Group (as Joint
                Venture partners) shall each be liable for the operating costs of
                the
                Facility in accordance with their Participating Interests. 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -16-

      

    

     

    7.5  Reports
      During Option Period.
      No
      later than 15 days after the last day of each calendar month, Kobex shall
      provide to U.S. Energy monthly summary reports of its activities on the
      Property. No later than 45 days after the end of each calendar year ending
      December 31 Kobex shall provide to U.S. Energy an annual detailed progress
      report of all Programs and activities on the Property. These reports shall
      include monthly statements of account reflecting in reasonable detail the
      Expenditures during the previous month as well as the matters required by
      Section 15.1(n),
      as
      applicable. An itemized statement of Expenditures completed in any period during
      the Option Period certified to be correct by an officer of Kobex shall be
      conclusive evidence of making such Expenditures.

     

    7.6  Title
      to Property.

     

    
      	(a)  	
              Upon
                the execution of this Agreement, U.S. Energy and Crested shall each
                prepare executed transfer forms in registerable/recordable form for
                the
                transfer of an aggregate 15% and an additional aggregate 35% interest
                in
                the Property to Kobex, as required by the Escrow
                Agreement.

            

    

     

    7.7  Permit
      Obligations of Kobex During Option Period.
      Kobex
      shall, with the cooperation of the U.S. Energy Group as required, use its best
      efforts to obtain all appropriate permits prior to the commencement of work
      as
      well as any required reclamation resulting from Kobex’s work on the Property.
      The permits shall be in the name of the Company. During the Option Period,
      decisions and actions related to permit compliance shall be the obligation
      of
      the Management Committee, which shall direct the actions of the Manager with
      respect to permit compliance.

     

    7.8  Access
      to Property During Option Period.
      Kobex
      shall at all times during the term of the Agreement (as applicable) have the
      exclusive right to enter and explore the Property and to prospect for ores
      and
      minerals on the Property. The U.S. Energy Group shall take all steps necessary
      to permit Kobex to exercise such rights and to permit Kobex to have exclusive
      possession of all exploration and development activities, in accord with the
      provisions of the Agreement. 

     

    7.9  Maintenance
      of Property During Option Period.
      Kobex
      shall maintain the Property in good standing and free of all liens, other than
      Permitted Encumbrances, and such costs shall be included in the Expenditures
      until Kobex has fully exercised the Option, subject to Section 18.1.

     

    7.10  Management
      of Existing Underground Mine Conditions During Exploration.
The
      U.S.
      Energy Group has informed Kobex that the underground mine workings located
      on or
      beneath the Property contain liquid, semi-solid and/or
      solid material or waste associated with previous mining activities, including,
      but not limited to, metal bearing sludges and mine water present behind
      bulkheads and other underground mine containment structures (“underground mine
      materials.”) The Parties agree that the management of underground mine materials
      and waste to prevent the uncontrolled release of such waste and materials into
      the environment may be required prior to commencement of Exploration activities
      by Kobex during the Option Period. Such management may include, but not be
      limited to, removal of metal-bearing sludges or other waste materials identified
      by Kobex, and the breaching of underground bulkheads or other containment
      structures and the collection, management and treatment of waste or mine water
      

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -17-

      

    

     

     

    present
      in the underground workings in accordance with applicable Environmental Laws.
      To
      facilitate the proper management of these materials, the Company agrees to
      manage the underground mine materials existing in the underground workings
      prior
      to or in coordination with Kobex’s Exploration activities. The Parties agree
      that Kobex shall have no liability for any losses or damage, including
      Environmental Damage, related to the management of the underground mine
      materials or for any prior activities conducted at any time by prior owners
      or
      operators. As Kobex determines necessary, management of the underground waste
      and mine material shall be specified in a Program and Budget.

     

    7.11  Indemnification
      of Manager During Option Period.
      During
      the Option Period,
      the U.S. Energy Group on the one hand, and Kobex on the other hand, shall
      mutually indemnify, defend, save and hold harmless Kobex and its
      Affiliates, and their respective directors, officers, employees, agents and
      consultants for
      acts undertaken as Manager of the Property, or the Facility, from and against
      any claim, (including
      legal fees incurred in defending any claim on a full indemnity
      basis),
      in equal proportion the U.S. Energy Group on the one hand and Kobex on the
      other
      hand provided, however, that Kobex as Manager shall not be indemnified for
      acts,
      claims or losses arising from its gross negligence or wilful
      misconduct.
      During
      the Option Period, the U.S. Energy Group shall be solely responsible for and
      shall indemnify, defend and hold harmless Kobex as Manager from any claim or
      liability related to existing conditions of the Property, including
      environmental conditions, and from any claim or liability related to the
      Facility.

     

    7.12  Programs
      and Budgets.
      During
      the Option Period, except for emergency operations, all Operations shall be
      conducted, expenses shall be incurred, and Assets shall be acquired only
      pursuant to Management Committee adopted Programs and Budgets. Every Program
      and
      Budget adopted pursuant to this Agreement shall provide for accrual of
      reasonably anticipated Environmental Compliance expenses for all Operations
      contemplated under the Program and Budget. Any emergency shall be addressed
      in
      accord with Section 9.7.

     

    7.13  Presentation
      of Programs and Budgets.
      Proposed Programs and Budgets shall be prepared by the Manager for a period
      of 1
      year or any other period as approved by the Management Committee, and shall
      be
      submitted to the Management Committee for review and consideration. All proposed
      Programs and Budgets may include Exploration, securing any and all necessary
      and
      appropriate permits, a Feasibility Study, Development, Mining and Expansion
      or
      Modification Operations components, or any combination thereof, and shall be
      reviewed and adopted upon a vote of the Management Committee in accordance
      with
      Section 7.14.
      Each
      Program and Budget adopted by the Management Committee, regardless of length,
      shall be reviewed at least once a year at a meeting of the Management Committee.
      During the period encompassed by any Program and Budget, and at least 3 months
      prior to its expiration, a proposed Program and Budget for the succeeding period
      shall be prepared by the Manager and submitted to the Management Committee
      for
      review, consideration and adoption.

     

    7.14  Review
      and Adoption of Proposed Programs and Budgets. 

     

    
      	(a)  	
              Within
                20 days after submission of a proposed Program and Budget, the Management
                Committee must approve, reject or modify the proposed Program and
                Budget. 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -18-

      

    

     

     

    
      	(b)  	
              Until
                a new Program and Budget is adopted, the Program and Budget from
                the prior
                year shall govern Operations on the
                Property.

            

    

     

    
      	(c)  	
              If
                no Budget has been adopted within 6 months after the expiration of
                the
                latest adopted Program and Budget, either the U.S. Energy Group or
                Kobex
                may elect to terminate the Business by giving 30 days notice of
                termination to the other Parties and complying with the termination
                procedures specified in Sections 6.4
                and 6.5.

            

    

     

    7.15  Budget
      Overruns; Program Changes.
      The
      Manager shall immediately notify the Management Committee of any material
      departure from an adopted Program and Budget. If the Manager exceeds an adopted
      Budget by more than 20% in the aggregate, then the excess over 20%, unless
      directly caused by an emergency or unexpected expenditure made pursuant to
      Section 9.7,
      unless
      related to the adopted Program and Budget, or unless directly attributable
      to
      Exploration or Development activities, must be ratified and approved by the
      Management Committee at its next scheduled meeting, and once approved shall
      be
      borne by the Business Account.

     

    7.16  Assignment
      During Option Period.
      During
      the Option Period, no Party shall assign it rights under this Agreement, and
      the
      US Energy Group shall not assign or transfer any of its rights to the Assets,
      without the approval of the non-transferring Party (not to be unreasonably
      withheld) except to an Affiliate or except as provided in Section 6.12. In
      the
      event of such transfer, the transferee shall assume all obligations and
      liabilities of the transferring Party under this Agreement. In addition, the
      US
      Energy Group covenants that if the Property is assigned to Newco pursuant to
      Section 6.12, it shall ensure that Newco does not assign the Property, the
      Facility or any related permits and licences to any party except with the
      express written consent of Kobex.

     

    7.17  Other
      Provisions.
      The
      Provision of PART
      IV
      shall
      apply during the Option Period. 

     

    PART
      III  

     

    THE
      JOINT VENTURE PERIOD

     

    ARTICLE
      VIII  

     

    JOINT
      VENTURE

     

    8.1  Purpose.
      The
      Joint Venture deemed to be formed between USE/CC and Kobex under Sections
6.8(c)(i),
      6.9(a)
      or
6.9(b)
      shall be
      for the purpose of carrying out all such acts which are necessary or
      appropriate, directly or indirectly, to hold the Property, explore the Property
      for minerals, and if feasible develop a mine thereon, and so long as it is
      feasible, operate such mine and exploit the mineral extracted from the Property,
      and for those purposes set out in Section 2.3.
      With
      respect to USE/CC, U.S. Energy is authorized to act on behalf of both parties
      and Kobex shall be entitled to deal exclusively with U.S. Energy in all matters
      related to this Agreement. Furthermore, USE/CC shall be treated as a single
      JV
      Participant for all purposes under this Agreement. The name of the Joint Venture
      shall be the “Lucky
      Jack Joint Venture.”

     

    8.2  Manager. 
      Kobex
      shall be the Manager of all Programs on the Property during the Joint Venture.
      The Provisions of ARTICLE
      XV
      shall
      apply to the Manager during the Joint Venture.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    8.3  Initial
      Participating Interests and Contributions. 

     

    
      	(a)  	
              After
                the 50% Option Exercise Date, the JV Participants shall have the
                following
                initial Participating Interests:

            

    

     

    USE/CC
      collectively  -
      50%

     

    Kobex                                      
      -
      50%

     

    
      	(b)  	
              After
                the 50% Option Exercise Date, the JV Participants, subject to the
                65%
                Election and subject to any election permitted by
                Section 9.4,
                shall be obligated to contribute funds to adopted Programs and Budgets
                in
                proportion to their respective Participating
                Interests.

            

    

     

    8.4  Changes
      in Participating Interests.
      The
      Participating Interests shall be eliminated or changed as follows:

     

    
      	(a)  	
              upon
                withdrawal or deemed withdrawal as provided in Section 8.6,
                and ARTICLE
                XIV;
                

            

    

     

    
      	(b)  	
              upon
                an election by either JV Participant pursuant to Section 9.4
                to
                contribute less to an adopted Program and Budget than the percentage
                equal
                to its Participating Interest, or to contribute nothing to an adopted
                Program and Budget; 

            

    

     

    
      	(c)  	
              in
                the event of default by either JV Participant in making its agreed-upon
                contribution to an adopted Program and Budget, followed by an election
                by
                the other JV Participant to invoke any of the remedies in
                Section 9.4;
                

            

    

     

    
      	(d)  	
              upon
                Transfer by either JV Participant of part or all of its Participating
                Interest in accordance with ARTICLE
                XIII;
                

            

    

     

    
      	(e)  	
              upon
                acquisition by either JV Participant of part or all of the Participating
                Interest of the other JV Participant, however arising;
                or

            

    

     

    
      	(f)  	
              in
                accord with the 65% Election set out in Section 6.9(b).

            

    

     

    8.5  Deemed
      Expenditures.
      Upon
      the formation of a Joint Venture hereunder for the purposes of calculating
      dilution before the presentation of the first Budget and Program after the
      formation of the Joint Venture:

     

    
      	(a)  	
              Kobex’s
                deemed expenditures to the Joint Venture shall be its percentage
                interest
                in the Joint Venture multiplied by its aggregate actual Expenditures
                incurred until the formation of the Joint Venture;
                and

            

    

     

    
      	(b)  	
              USE/CC’s
                deemed expenditures to the Joint Venture shall be its percentage
                interest
                in the Joint Venture multiplied by Kobex’s aggregate actual Expenditures
                incurred until the formation of the Joint
                Venture.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    After
      the
      presentation of the first Budget and Program after the formation of the Joint
      Venture, the provisions of Section 8.6,
      9.4,
      9.5
      and
10.5
      shall
      control the calculation of interests for dilution. 

     

    8.6  Conversion
      of Minority Interest. 

     

    
      	(a)  	
              If
                a JV Participant’s (the “Reduced
                Participant”)
                Participating Interest becomes less than 5%, that JV Participant’s
                Participating Interest shall convert to a 5% Net Profits Interest
                and
                shall be deemed to have withdrawn from the Business. Such relinquished
                Participating Interest shall be deemed to have accrued automatically
                to
                the other JV Participant. The Capital Account of the Reduced Participant
                shall be transferred to the remaining JV Participant. Subject to
                Section 15.3,
                the Reduced Participant shall thereafter have no further right, title,
                or
                interest in the Assets or under this Agreement, with the exception
                of the
                5% Net Profits Interest detailed above, and any tax partnership that
                may
                have been created shall dissolve. In such event, the Reduced Participant
                shall execute and deliver an appropriate conveyance of all of its
                right,
                title and interest in the Assets to the remaining JV
                Participant. 

            

    

     

    
      	(b)  	
              The
                relinquishment, withdrawal and entitlements for which this section
                provides shall be effective as of the effective date of the recalculation
                under Sections 9.4
                or
                10.5.
                However, if the final adjustment provided under Section 9.5
                for any recalculation under Section 9.4
                results in a Participating Interest of 5% or more: (i) the
                Participating Interest shall be deemed, effective retroactively as
                of the
                first day of the Program Period, to have automatically revested;
                (ii) the Reduced Participant shall be reinstated as a JV Participant,
                with all of the rights and obligations pertaining thereto; (iii) the
                right to a Net Profits Interest under Section 8.6(a)
                shall terminate; and (iv) the Manager, on behalf of the JV
                Participants, shall make any necessary reimbursements, reallocations
                of
                Products, contributions and other adjustments as provided in
                Section 9.5(d).
                Similarly, if such final adjustment under Section 9.5
                results in a Participating Interest for either JV Participant of
                less than
                5% for a Program Period as to which the provisional calculation under
                Section 9.4
                had not resulted in a Participating Interest of less than 5%, then
                such
                Participant, at its election within 30 days after notice of the final
                adjustment, may contribute an amount resulting in a revised final
                adjustment and resultant Participating Interest of 5%. If no such
                election
                is made, such JV Participant shall be deemed to have withdrawn under
                the
                terms of Section 8.6(a)
                as
                of the beginning of such Program Period, and the Manager, on behalf
                of the
                JV Participants, shall make any necessary reimbursements, reallocations
                of
                Products, contributions and other adjustments as provided in
                Section 9.5(d),
                including of any Net Profits Interest to which such JV Participant
                may be
                entitled for such Program Period. 

            

    

     

    8.7  Continuing
      Liabilities Upon Adjustments of Participating Interests.
      Any
      reduction or elimination of either JV Participant’s Participating Interest under
      Section 8.4
      shall
      not relieve such JV Participant of its share of any liability, including,
      without limitation, Continuing Obligations, Environmental Liabilities and
      Environmental Compliance, whether arising out of 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    acts
      or
      omissions occurring or conditions existing prior to the Effective Date or out
      of
      Operations conducted during the term of this Agreement but prior to such
      reduction or elimination, regardless of when any funds may be expended to
      satisfy such liability. For purposes of this Section 8.7,
      such JV
      Participant’s share of such liability shall be equal to its Participating
      Interest at the time the act or omission giving rise to the liability occurred,
      after first taking into account any reduction, readjustment and restoration
      of
      Participating Interests under Sections 8.6,
      9.4,
      9.5
      and
10.5
      (or, as
      to such liability arising out of acts or omissions occurring or conditions
      existing prior to the Effective Date, equal to such JV Participant’s initial
      Participating Interest). Should the cumulative cost of satisfying Continuing
      Obligations be in excess of cumulative amounts accrued or otherwise charged
      to
      the Environmental Compliance Account, each of the JV Participant’s shall be
      liable for its proportionate share (i.e.,
      Participating Interest at the time of the act or omission giving rise to such
      liability occurred), after first taking into account any reduction, readjustment
      and restoration of Participating Interests under Sections 8.6,
      9.4,
      9.5
      and
10.5,
      of the
      cost of satisfying such Continuing Obligations, notwithstanding that either
      JV
      Participant has previously withdrawn from the Business or that its Participating
      Interest has been reduced or converted to an interest in Net Profits Interest
      pursuant to Section 8.6(a). 

     

    8.8  Documentation
      of Adjustments to Participating Interests.
      Adjustments to the Participating Interests need not be evidenced during the
      term
      of this Agreement by the execution and recording of appropriate instruments,
      but
      each JV Participant’s Participating Interest and related Equity Account balance
      shall be shown in the accounting records of the Manager, and any adjustments
      thereto, including any reduction, readjustment, and restoration of Participating
      Interests under Sections 8.6,
      9.4,
      9.5
      and
10.5,
      shall
      be made monthly. However, either JV Participant, at any time upon the request
      of
      the other JV Participant, shall execute and acknowledge instruments necessary
      to
      evidence such adjustments in form sufficient for filing and recording in the
      jurisdiction where the Property is located.

     

    8.9  Grant
      of Lien and Security Interest. 

     

    
      	(a)  	
              Subject
                to Section 8.10,
                each JV Participant may grant to the other JV Participant a lien
                upon and
                a security interest in its Participating Interest, including all of
                its right, title and interest in the Assets, whenever acquired or
                arising,
                and the proceeds from and accessions to the foregoing. 

            

    

     

    
      	(b)  	
              The
                liens and security interests granted by Section 8.9(a)
                shall secure every obligation or liability of the JV Participant
                granting
                such lien or security interest created under this Agreement, including
                the
                obligation to repay a Cover Payment in accordance with
                Section 10.4.
                Each JV Participant hereby agrees to take all action necessary to
                perfect
                such lien and security interest and hereby appoints the other JV
                Participant its attorney-in-fact to execute, file and record all
                financing
                statements and other documents necessary to perfect or maintain such
                lien
                and security interest.

            

    

     

    
      	(c)  	
              Where
                Kobex commits to arrange all future financing for Operations on the
                Property pursuant to Section 6.9(b),
                to the extent that the Management Committee has approved any financing
                of
                the Operations, including Project Financing, each of the JV Participants
                shall pledge, charge, mortgage, grant a lien, grant a security
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -22-

      

    

     

    interest
      or otherwise encumber, as security for any
      such financing their respective Participating Interests and their respective
      interests in the Assets and Property, and as required by the terms of such
      financing.
      Security
      for any such financing will have priority over any other security granted by
      a
      JV Participant under Sections 8.9(a)
      and
8.9(b).

     

    8.10  Subordination
      of Interests.
      Each JV
      Participant may, from time to time, take all necessary actions, including
      execution of appropriate agreements, to pledge and subordinate its Participating
      Interest, any liens it may hold which are created under this Agreement other
      than those created pursuant to Sections 8.9(a)
      and
8.9(b),
      and any
      other right or interest it holds with respect to the Assets (other than any
      statutory lien of the Manager) to any secured borrowings for Operations approved
      by the Management Committee, including any secured borrowings relating to and
      financing referred to in Section 8.9(c),
      and any
      modifications or renewals thereof.

     

    8.11  Indemnity.
      Following the formation of the Joint Venture, USE/CC on the one hand, and Kobex
      on the other hand, shall mutually indemnify, defend, save and hold harmless
      the
      Manager and its Affiliates, and their respective directors, officers, employees,
      agents and consultants in proportion to their Participating Interests, for
      acts
      undertaken as Manager of the Property, the Assets, the Facility or the Joint
      Venture, from and against any claim, (including legal fees incurred in defending
      any claim on a full indemnity basis), provided, however, that Kobex as Manager
      shall not be indemnified for acts, claims or losses arising from its gross
      negligence or wilful misconduct.

     

    8.12  Holding
      of Property. 

     

    
      	(a)  	
              From
                the date of the formation of the Joint Venture, during the term of
                the
                Joint Venture, the Property must be transferred to and held in the
                names
                of the JV Participants in proportion to their respective Participating
                Interests from time to time.

            

    

     

    
      	(b)  	
              Each
                JV Participant must promptly at its own cost do all things (including
                executing and if necessary delivering all documents) necessary or
                desirable to give full effect to Section 8.12(a)
                or
                the formation of the Joint Venture.

            

    

     

    8.13  Holding
      of Joint Venture Property. Subject
      to Section 8.12,
      all
      Assets, whether acquired before or after the Effective Date, must wherever
      practicable be held by the Manager or a JV Participant who must hold it upon
      trust for the JV Participants as tenants in common in proportion to their
      respective Participating Interests for the time being and from time to time.
      All
      Assets held by the Manager or a JV Participant must be held, used, dealt with
      or
      applied solely for the purposes of the Joint Venture or as otherwise permitted
      under the Agreement.

     

    8.14  Management
      Committee.
      Upon
      the formation of the Joint Venture, the JV Participants shall establish a
      Management Committee consisting of four members to direct and control the
      operations of the Joint Venture, which may be the same Management Committee
      provided for by Section 7.3.
      Each JV
      Participant shall be entitled to appoint two members, with one alternate for
      each participant, of the Management Committee. Voting by each JV Participant’s
      representative shall be in accordance with the interest of each JV Participant
      in the Joint Venture. Each JV 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -23-

      

    

     

     

    Participant
      may appoint one or more alternates to act in the absence of a regular member.
      Any alternate so acting shall be deemed a member. The alternate may attend
      meetings of the Management Committee even if the members attend, provided
      however, they shall not have the right to vote unless the member is absent.
      Appointments by a JV Participant shall be made or changed by notice to the
      other
      members. Decision making of the Management Committee shall be by majority vote,
      and in the event of a tie, the Management Committee members representing Kobex
      shall have the deciding vote.

     

    8.15  Facility.
      During
      the Joint Venture Period, the Facility shall be operated as set out in Section
      7.4(b).

     

    ARTICLE
      IX  

     

    PROGRAMS
      AND BUDGETS

     

    9.1  Operations
      Pursuant to Programs and Budgets.
      Except
      as otherwise provided in Section 9.7,
      and
ARTICLE
      XVII,
      Operations shall be conducted, expenses shall be incurred, and Assets shall
      be
      acquired only pursuant to Management Committee adopted Programs and Budgets.
      Every Program and Budget adopted pursuant to this Agreement shall provide for
      accrual of reasonably anticipated Environmental Compliance expenses for all
      Operations contemplated under the Program and Budget.

     

    9.2  Presentation
      of Programs and Budgets.
      Proposed Programs and Budgets shall be prepared by the Manager for a period
      of 1
      year or any other period as approved by the Management Committee, and shall
      be
      submitted to the Management Committee for review and consideration. All proposed
      Programs and Budgets may include Permitting, Exploration, Feasibility Study,
      Development, Mining and Expansion or Modification Operations components, or
      any
      combination thereof, and shall be reviewed and adopted upon a vote of the
      Management Committee in accordance with Section 9.3.
      Each
      Program and Budget adopted by the Management Committee, regardless of length,
      shall be reviewed at least once a year at a meeting of the Management Committee.
      During the period encompassed by any Program and Budget, and at least 3 months
      prior to its expiration, a proposed Program and Budget for the succeeding period
      shall be prepared by the Manager and submitted to the Management Committee
      for
      review and consideration.

     

    9.3  Review
      and Adoption of Proposed Programs and Budgets.
      Except
      where Kobex bears all operating and financing costs of the Joint Venture
      pursuant to Section 6.9(b),
      then
      within 30 days after submission of a proposed Program and Budget, each JV
      Participant shall submit in writing to the Management Committee:

     

    
      	(a)  	
              notice
                that the JV Participant approves any or all of the components of
                the
                proposed Program and Budget; 

            

    

     

    
      	(b)  	
              modifications
                proposed by the JV Participant to the components of the proposed
                Program
                and Budget; or

            

    

     

    
      	(c)  	
              notice
                that the JV Participant rejects any or all of the components of the
                proposed Program and Budget.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
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    If
      a
      Participant fails to give any of the foregoing responses within the allotted
      time, the failure shall be deemed to be a vote by the JV Participant for
      adoption of the Manager’s proposed Program and Budget. If a JV Participant makes
      a timely submission to the Management Committee pursuant to
      Sections 9.3(a),
      (b)
      or
(c),
      then
      the Manager working with the other JV Participant shall seek for a period of
      time not to exceed 20 days to develop a complete Program and Budget acceptable
      to both JV Participants. The Manager shall then call a Management Committee
      meeting for purposes of reviewing and voting upon the proposed Program and
      Budget.

     

    9.4  Election
      to Participate. This
      Section 9.4
      only
      applies where Kobex does not bear all operating and financing costs of the
      Joint
      Venture. 

     

    
      	(a)  	
              By
                notice to the Management Committee within 20 days after the final
                vote
                adopting a Program and Budget, and notwithstanding its vote concerning
                adoption of a Program and Budget, a JV Participant may elect to
                participate in the approved Program and
                Budget:

            

    

     

    
      	(i)  	
              in
                proportion to its respective Participating
                Interest;

            

    

     

    
      	(ii)  	
              in
                some lesser amount than its respective Participating Interest,
                or

            

    

     

    
      	(iii)  	
              not
                at all.

            

    

     

    In
      case
      of an election under Sections 9.4(a)(ii)
      or
9.4(a)(iii),
      its
      Participating Interest shall be recalculated as provided in Section 9.4(b)
      below,
      with dilution effective as of the first day of the Program Period for the
      adopted Program and Budget. If a JV Participant fails to so notify the
      Management Committee of the extent to which it elects to participate, the JV
      Participant shall be deemed to have elected to contribute to such Program and
      Budget in proportion to its respective Participating Interest as of the
      beginning of the Program Period.

     

    
      	(b)  	
              If
                a JV Participant elects to contribute to an adopted Program and Budget
                some lesser amount than in proportion to its respective Participating
                Interest, or not at all, and the other JV Participant elects to fund
                all
                or any portion of the deficiency, the Participating Interest of the
                Reduced Participant shall be provisionally recalculated as
                follows:

            

    

     

    
      	(i)  	
              for
                an election made before Payout, by dividing: (A) the sum of
                (1) the total of all of the Reduced Participant’s contributions under
                Section 8.3(b),
                and (2) the amount, if any, the Reduced Participant elects to
                contribute to the adopted Program and Budget; by (B) the sum of (1)
                and (2) above for both Participants; and then multiplying the result
                by
                one hundred; or

            

    

     

    
      	(ii)  	
              for
                an election made after Payout, by reducing its Participating Interest
                in
                an amount equal to two times the amount by which it would have been
                reduced under Section 9.4(a)(i)
                if
                such election were made before
                Payout.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -25-

      

    

     

     

    The
      Participating Interest of the other JV Participant shall be increased by the
      amount of the reduction in the Participating Interest of the Reduced
      Participant, and if the other JV Participant elects not to fund the entire
      deficiency, the Manager shall adjust the Program and Budget to reflect the
      funds
      available.

     

    
      	(c)  	
              Whenever
                the Participating Interests are recalculated pursuant to this Section
                9.4,
                (i) the Equity Accounts of both JV Participants shall be revised to
                bear the same ratio to each other as their recalculated Participating
                Interests; and (ii) the portion of Capital Account attributable to
                the reduced Participating Interest of the Reduced Participant shall
                be
                transferred to the other JV Participant.

            

    

     

    9.5  Recalculation
      or Restoration of Reduced Interest Based on Actual
      Expenditures. This
      Section 9.5
      only
      applies where Kobex does not bear all operating and financing costs of the
      Joint
      Venture.

     

    
      	(a)  	
              If
                a Participant makes an election under Sections 9.4(a)(ii)
                or
                9.4(a)(iii),
                then within 30 days after the conclusion of such Program and Budget,
                the
                Manager shall report the total amount of money expended plus the
                total
                obligations incurred by the Manager for such
                Budget.

            

    

     

    
      	(b)  	
              If
                the Manager expended or incurred obligations that were more or less
                than
                the adopted Budget, the Participating Interests shall be recalculated
                pursuant to Section 9.4(a)(i)
                by
                substituting each JV Participant’s actual contribution to the adopted
                Budget for that JV Participant’s estimated contribution at the time of the
                Reduced Participant’s election under Section 9.4(a).

            

    

     

    
      	(c)  	
              If
                the Manager expended or incurred obligations of less than 80% of
                the
                adopted Budget, within 30 days of receiving the Manager’s report on
                Expenditures, the Reduced Participant may notify the other JV Participant
                of its election to reimburse the other JV Participant for the difference
                between any amount contributed by the Reduced Participant to such
                adopted
                Program and Budget and the Reduced Participant’s proportionate share (at
                the Reduced Participant’s former Participating Interest) of the actual
                amount expended or incurred for the Program, plus interest at two
                percentage points above the Prime Rate. The Reduced Participant shall
                deliver the appropriate amount (including interest) to the other
                JV
                Participant with such notice. Failure of the Reduced Participant
                to so
                notify and tender such amount shall result in dilution occurring
                in
                accordance with this ARTICLE
                XI
                and shall bar the Reduced Participant from its rights under this
                Section 9.5(c)
                concerning the relevant adopted Program and
                Budget.

            

    

     

    
      	(d)  	
              All
                recalculations under this Section 9.5
                shall be effective as of the first day of the Program Period for
                the
                Program and Budget. The Manager, on behalf of both JV Participants,
                shall
                make such reimbursements, reallocations of Products, contributions
                and
                other adjustments as are necessary so that, to the extent possible,
                each
                JV Participant shall be placed in the position it would have been
                in had
                their Participating Interests as recalculated under this section
                been in
                effect throughout the Program Period for such Program and Budget.
                If the
                JV 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -26-

      

    

     

     

    Participants
      are required to make contributions,
      reimbursements or other adjustments pursuant to this Section, the Manager shall
      have the right to purchase or sell a JV Participant’s share of Products in the
      same manner as under Section 11.2
      and to
      apply the proceeds of such sale to satisfy that JV Participant’s obligation to
      make such contributions, reimbursements or adjustments.

     

    
      	(e)  	
              Whenever
                the Participating Interests are recalculated pursuant to this Section
                9.5,
                (i) the JV Participants’ Equity Accounts shall be revised to bear the
                same ratio to each other as their recalculated Participating Interests;
                and (ii) the portion of Capital Account attributable to the reduced
                Participating Interest of the Reduced Participant shall be transferred
                to
                the other JV Participant. 

            

    

     

    9.6  Budget
      Overruns; Program Changes.
      For
      Programs and Budgets adopted by the Management Committee other than those in
      Section 9.8,
      the
      Manager shall immediately notify the Management Committee of any material
      departure from an adopted Program and Budget. If the Manager exceeds an adopted
      Budget by more than 20% in the aggregate, then the excess over 20%, unless
      directly caused by an emergency or unexpected expenditure made pursuant to
      Section 9.7,
      unless
      related to the adopted Program and Budget, or unless directly attributable
      to
      Exploration or Development activities, must be ratified and approved by the
      Management Committee at its next scheduled meeting, and once approved shall
      be
      borne by the JV Participants in proportion to their respective Participating
      Interests. 

     

    The
      Manager may amend or alter the approved Program and Budget by presenting a
      special item budget for review by the Management Committee. The Committee shall
      accept or reject the amendment within 10 Business Days of its presentation.
      If
      the Committee fails to approve or reject the proposal within 10 Business Days
      of
      the presentation, the special item budget shall be deemed approved. The JV
      Participants may approve, reject, or propose modifications for the proposed
      amendment in accordance with Section 9.3.

     

    9.7  Emergency
      or Unexpected Expenditures.
      In case
      of emergency, the Manager may take any reasonable action it deems necessary
      to
      protect life or property, to protect the Assets or to comply with Laws. The
      Manager may make reasonable expenditures on behalf of the JV Participants for
      unexpected events that are beyond its reasonable control and that do not result
      from a breach by it of its standard of care. The Manager shall promptly notify
      the JV Participants of the emergency or unexpected expenditure, and the Manager
      shall be reimbursed for all resulting costs by the JV Participants in proportion
      to their respective Participating Interests, except when USE/CC makes the 65%
      Election. 

     

    9.8  Development
      Programs and Budgets; Project Financing.

     

    
      	(a)  	
              Unless
                otherwise determined by the Management Committee, the Manager shall
                not
                submit to the Management Committee a Program and Budget including
                Development of the mine described in a completed Feasibility Study
                until
                30 days following the receipt by the Manager of the Feasibility Study.
                The
                Program and Budget, which includes Development of the mine described
                in
                the completed Feasibility Study, shall be based on the estimated
                cost of
                Development described 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -27-

      

    

     

     

    in
      the Feasibility Study for the Approved
      Alternative, unless otherwise directed by the Management Committee.

     

    
      	(b)  	
              Promptly
                following adoption of the Program and Budget, which includes Development
                as described in a completed Feasibility Study, but in no event more
                than
                30 days thereafter, the Manager shall submit to the Management Committee
                a
                report on material bids received for Development work (“Bid
                Report”).
                If bids described in the Bid Report result in the aggregate cost
                of
                Development work exceeding 10% of the Development cost estimates
                that
                formed the basis of the Development component of the adopted Program
                and
                Budget, the Program and Budget, which includes relevant Development,
                shall
                be deemed to have been re-submitted to the Management Committee based
                on
                the aggregate costs as described in the Bid Report on the date of
                receipt
                of the Bid Report and shall be reviewed and adopted in accordance
                with
                Sections 9.3
                and 14.1. 

            

    

     

    
      	(c)  	
              This
                Section 9.8(c)
                only applies where Kobex does not bear all operating and financing
                costs
                of the Joint Venture. If the Management Committee approves the Development
                of the mine described in a Feasibility Study and also decides to
                seek
                Project Financing for such mine, each Participant shall, at its own
                cost,
                cooperate in seeking to obtain Project Financing for such mine;
                provided,
                however,
                that all fees, charges and costs (including attorneys and technical
                consultants fees) paid to the Project Financing lenders shall be
                borne by
                the Participants in proportion to their Participating Interests,
                unless
                such fees are capitalized as a part of the Project
                Financing.

            

    

     

    9.9  Expansion
      or Modification Programs and Budgets.
      Any
      Program and Budget proposed by the Manager involving Expansion or Modification
      shall be based on a Feasibility Study prepared by the Manager, Feasibility
      Contractors, or both, or prepared by the Manager and audited by Feasibility
      Contractors, as the Management Committee determines. The Program and Budget,
      which include Expansion or Modification, shall be submitted for review and
      approval by the Management Committee within 30 days following receipt by the
      Manager of such Feasibility Study.

     

    ARTICLE
      X  

     

    ACCOUNTS
      AND SETTLEMENTS

     

    10.1  Monthly
      Statements and Applications of this ARTICLE.
      During
      the Joint Venture Period, the Manager shall promptly submit to the Management
      Committee monthly statements of account reflecting in reasonable detail the
      charges and credits to the Business Account during the preceding month. The
      provisions of this ARTICLE
      X
      shall
      only apply to the Joint Venture if USE/CC does not make the 65% Election, other
      than Sections 10.1
      and
10.6
      which
      shall apply in all cases.

     

    10.2  Cash
      Calls.
      On the
      basis of each adopted Program and Budget, the Manager shall submit prior to
      the
      last day of each month a billing for estimated cash requirements for the next
      month. Within 10 days after receipt of each billing, or a billing made pursuant
      to Section 9.7
      or
16.4,
      each JV
      Participant shall advance its proportionate share of such cash requirements.
      The

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -28-

      

    

     

     

    Manager
      shall record all funds received in the Business Account. The Manager shall
      at
      all times maintain a cash balance approximately equal to the rate of
      disbursement for up to 60 days. All funds in excess of immediate cash
      requirements shall be invested by the Manager for the benefit of the Business
      in
      cash management accounts and investments selected at the discretion of the
      Manager, which accounts may include, but are not limited to, money market
      investments and money market funds.

     

    10.3  Failure
      to Meet Cash Calls.
      A JV
      Participant that fails to meet cash calls in the amount and at the times
      specified in Section 10.2
      shall be
      in default, and the amounts of the defaulted cash call shall bear interest
      from
      the date due at an annual rate equal to five percentage points over the Prime
      Rate, but in no event shall the rate of interest exceed the maximum permitted
      by
      Law. Such interest shall accrue to the benefit of and be payable to the
      non-defaulting JV Participant, but shall not be deemed as amounts contributed
      by
      the non-defaulting JV Participant in the event dilution occurs in accordance
      with ARTICLE
      IX.
      In
      addition to any other rights and remedies available to it by Law, the
      non-defaulting Participant shall have those other rights, remedies, and
      elections specified in Sections 10.4
      and
10.5.

     

    10.4  Cover
      Payment.
      If a JV
      Participant defaults in making a contribution or cash call required by an
      adopted Program and Budget, the non-defaulting JV Participant may, but shall
      not
      be obligated to, advance some portion or all of the amount in default on behalf
      of the defaulting JV Participant (a “Cover
      Payment”).
      Each
      and every Cover Payment shall constitute a demand loan bearing interest from
      the
      date of the advance at the rate provided in Section 10.3.
      If more
      than one Cover Payment is made, the Cover Payments shall be aggregated and
      the
      rights and remedies described herein pertaining to an individual Cover Payment
      shall apply to the aggregated Cover Payments. The failure to repay such loan
      upon demand shall be a default.

     

    10.5  Remedies.
      The JV
      Participants acknowledge that if either JV Participant defaults in making a
      contribution required by ARTICLE
      IX
      or a
      cash call, or in repaying a loan, as required under Sections 10.2,
      10.3
      or
10.4,
      whether
      or not a Cover Payment is made, it shall be difficult to measure the damages
      resulting from such default (it being hereby understood and agreed that the
      Participants have attempted to determine such damages in advance and determined
      that the calculation of such damages cannot be ascertained with reasonable
      certainty). Both JV Participants acknowledge and recognize that the damage
      to
      the non-defaulting JV Participant could be significant. In the event of such
      default, as reasonable liquidated damages, the non-defaulting JV Participant
      may, with respect to any such default not cured within 30 days after notice
      to
      the defaulting JV Participant of such default, elect any of the following
      remedies by giving notice to the defaulting JV Participant. Such election may
      be
      made with respect to each failure to meet a cash call relating to a Program
      and
      Budget, regardless of the frequency of such cash calls, provided such cash
      calls
      are made in accordance with Section 10.2.

     

    
      	(a)  	
              The
                defaulting JV Participant grants to the non-defaulting JV Participant
                a
                power of sale as to all or any portion of its interest in any Assets
                or in
                its Participating Interest that is subject to the lien and security
                interest granted in Section 8.9
                (whether or not such lien and security interest has been perfected),
                upon
                a default under Sections 10.3
                or
                10.4.
                Such power shall be exercised in the manner provided by applicable
                Law or
                otherwise in a commercially reasonable manner and upon reasonable
                notice.
                If the non-defaulting JV Participant elects to enforce
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -29-

      

    

     

    the
      lien or security interest pursuant to the terms
      of this Section, the defaulting JV Participant shall be deemed to have waived
      any available right of redemption, any required valuation or appraisal of the
      secured property prior to sale, any available right to stay execution or to
      require a marshalling of assets, and any required bond in the event a receiver
      is appointed, and the defaulting JV Participant shall be liable for any
      deficiency. 

     

    
      	(b)  	
              The
                non-defaulting JV Participant may elect to have the defaulting JV
                Participant’s Participating Interest diluted or eliminated as
                follows:

            

    

     

    
      	(i)  	
              For
                a default occurring before Payout relating to a Program and Budget
                covering in whole or in part Permitting, Exploration, Feasibility
                Study
                Operations, the reduced JV Participant’s Participating Interest shall be
                recalculated by dividing: (X), (1) the total of all of the reduced JV
                Participant’s contributions under Section 8.3(b),
                and (2) the amount, if any, the reduced JV Participant contributed to
                the adopted Program and Budget with respect to which the default
                occurred;
                by (Y) the sum of (1) and (2) above for both JV Participants; and
                then multiplying the result by one hundred. For such a default occurring
                after Payout, the reduced JV Participant’s Participating Interest shall be
                reduced in an amount equal to two times the amount by which it would
                have
                been reduced if such default had occurred before Payout. For such
                a
                default, whether occurring before or after Payout, the Participating
                Interest
                shall then be further reduced for a default relating exclusively
                to an
                Exploration Program and Budget, by multiplying the recalculated
                Participating Interest by the following percentage: 150%.

            

    

     

    The
      Participating Interest of the other JV Participant shall be increased by the
      amount of the reduction in the Participating Interest of the reduced JV
      Participant, including the further reduction under Section 10.5(b)(i).

     

    
      	(ii)  	
              For
                a default relating to a Program and Budget covering in whole or in
                part
                Development or Mining, at the non-defaulting JV Participant’s election,
                the defaulting JV Participant shall be deemed to have withdrawn and
                to
                have automatically relinquished its interest in the Assets to the
                non-defaulting JV Participant; provided,
                however,
                the defaulting Participant shall have the right to receive only a
                10% Net
                Profits Interest, if any, and not from any other source, an amount
                equal
                to 20% of the defaulting JV Participant’s Equity Account balance at the
                time of such default. Upon receipt of such amount the defaulting
                JV
                Participant shall thereafter have no further right, title or interest
                in
                the Assets, but shall remain liable to the extent provided in
                Section 8.7.
                

            

    

     

    
      	(iii)  	
              Dilution
                under this Section 10.5(b)
                shall be effective as of the date of the original default, and
                Section 9.5
                shall not apply. The amount of any Cover Payment under
                Section 10.4
                and interest thereon, or any interest accrued in accordance with
                Section 10.3,
                shall be deemed to be amounts 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -30-

      

    

     

     

    contributed
      by the non-defaulting JV Participant, and
      not as amounts contributed by the defaulting JV Participant.

     

    
      	(iv)  	
              Whenever
                the Participating Interests are recalculated pursuant to this
                Section 10.5(b),
                (A) the Equity Accounts of both JV Participants shall be adjusted to
                bear the same ratio to each other as their recalculated Participating
                Interests; and (B) the portion of Capital Account attributable to the
                reduced Participating Interest of the reduced JV Participant shall
                be
                transferred to the other JV
                Participant.

            

    

     

    
      	(c)  	
              If
                a JV Participant has defaulted in meeting a cash call or repaying
                a loan,
                and if the non-defaulting JV Participant has made a Cover Payment,
                then,
                in addition to a reduction in the defaulting JV Participant’s
                Participating Interest effected pursuant to Section 10.5(b),
                the non-defaulting JV Participant shall have the right, if the
                indebtedness arising from a default or Cover Payment is not discharged
                within 10 days of the default and upon not less than 30 days advance
                notice to the defaulting JV Participant, to elect to purchase all
                the
                right, title, and interest, whenever acquired or arising, of the
                defaulting JV Participant in the Assets, including but not limited
                to its
                Participating Interest or a Net Profits Interest, together with all
                proceeds from and accessions of the foregoing (collectively the
                “Defaulting
                JV Participant’s Entire Interest”)
                at a purchase price equal to 75% of the fair market value thereof
                as
                determined by a qualified independent appraiser appointed by the
                non-defaulting JV Participant. If the defaulting JV Participant conveys
                notice of objection to the person so appointed within 10 days after
                receiving notice thereof, then an independent and qualified appraiser
                shall be appointed by the joint action of the appraiser appointed
                by the
                non-defaulting JV Participant and a qualified independent appraiser
                appointed by the defaulting JV Participant; provided,
                however,
                that if the defaulting JV Participant fails to designate a qualified
                independent appraiser for such purpose within 10 days after giving
                notice
                of such objection, then the person originally designated by the
                non-defaulting JV Participant shall serve as the appraiser; provided
                further,
                that if the appraisers appointed by each of the JV Participants fail
                to
                appoint a third qualified independent appraiser within 5 days after
                the
                appointment of the last of them, then an appraiser shall be appointed
                by a
                judge of a court of competent jurisdiction in the state in which
                the
                Assets are situated upon the application of either JV Participant.
                There
                shall be withheld from the purchase price payable, upon transfer
                of the
                Defaulting Participant’s Entire Interest, the amount of any Cover Payment
                under Section 10.4
                and unpaid interest thereon to the date of such transfer, or any
                unpaid
                interest accrued in accordance with Section 14.3
                to
                the date of such transfer. Upon payment of such purchase price, the
                defaulting JV Participant shall be deemed to have relinquished all
                of the
                Defaulting JV Participant’s Entire Interest to the non-defaulting
                Participant, but shall remain liable to the extent provided in
                Section 8.7. 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -31-

      

    

     

     

    10.6  Audits. 

     

    
      	(a)  	
              During
                the Joint Venture Period, within 60 days after the end of each calendar
                year an audit shall be completed by certified public accountants
                selected
                by, and independent of, the Manager. The audit shall be conducted
                in
                accordance with GAAP and shall cover all books and records maintained
                by
                the Manager pursuant to this Agreement, all Assets and Encumbrances,
                and
                all transactions and Operations conducted during such calendar year,
                including production and inventory records and all costs for which
                the
                Manager sought reimbursement under this Agreement, together with
                all other
                matters customarily included in such audits. All written exceptions
                to and
                claims upon the Manager for discrepancies disclosed by such audit
                shall be
                made not more than 3 months after receipt of the audit report, unless
                either JV Participant elects to conduct an independent audit pursuant
                to
                Section 10.6(b)which
                is ongoing at the end of such 3 month period, in which case such
                exceptions and claims may be made within the period provided in Section
                10.6(b).
                Failure to make any such exception or claim within such period shall
                mean
                the audit is deemed to be correct and binding upon the Participants.
                The
                cost of all audits under this subsection shall be charged to the
                Business
                Account. 

            

    

     

    In
      conjunction with the audit, the JV Participants shall procure a review of
      internal controls in compliance with Sarbanes-Oxley
      Act
      of 2002
      and the standards and rules of the Public Company Accounting Oversight Board.
      The contractor conducting this review shall not be an employee, officer, or
      director of the JV Participants and shall be chosen by mutual agreement.

     

    
      	(b)  	
              Notwithstanding
                the annual audit conducted by certified public accountants selected
                by the
                Manager, each JV Participant shall have the right to have an independent
                audit of all Business books, records and accounts, including all
                charges
                to the Business Account. This audit shall review all issues raised
                by the
                requesting JV Participant, with all costs borne by the requesting
                JV
                Participant. The requesting JV Participant shall give the other JV
                Participant 30 days prior notice of such audit. Any audit conducted
                on
                behalf of either JV Participant shall be made during the Manager’s normal
                business hours and shall not interfere with Operations. Neither JV
                Participant shall have the right to audit records and accounts of
                the
                Business relating to transactions or Operations more than 24 months
                after
                the calendar year during which such transactions, or transactions
                related
                to such Operations, were charged to the Business Account. All written
                exceptions to and claims upon the Manager for discrepancies disclosed
                by
                such audit shall be made not more than 3 months after completion
                and
                delivery of such audit, or they shall be deemed waived. 

            

    

     

    ARTICLE
      XI  

     

    DISPOSITION
      OF PRODUCTION

     

    11.1  Taking
      In Kind.
      Each JV
      Participant shall have the right to take in kind or separately dispose of its
      share of all Products in proportion to its Participating Interest until any
      processing 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -32-

      

    

     

     

    facility
      is built by any JV Participant to this Joint Venture. Provided however, that
      USE/CC shall have the right to require the Manager to market USE/CC’s share of
      all Products pursuant to a marketing agreement substantially in the form
      attached at Exhibit
      J
      upon
      1 year written notice to the Manager. Any extra expenditure incurred in the
      taking in kind or separate disposition by either JV Participant of its
      proportionate share of Products shall be borne by such JV Participant. Nothing
      in this Agreement shall be construed as providing, directly or indirectly,
      for
      any joint or cooperative marketing or selling of Products or permitting the
      processing of Products owned by any third party at any processing facilities
      constructed by the Participants pursuant to this Agreement. The Manager shall
      give notice in advance of the anticipated delivery date upon which Products
      shall be available.

     

    11.2  Failure
      of Participant to Take In Kind.
      If a JV
      Participant fails to take its proportionate share of Products in kind and fails
      to provide 1 year’s written notice to the Manager to market the JV Participant’s
      share of all Products, then the Manager shall have the right, but not the
      obligation, for a period of time consistent with the minimum needs of the
      industry, but not to exceed 1 year from the notice date described in
      Section 11.1,
      to
      purchase the JV Participant’s share for its own account or to sell such share as
      agent for the Participant at not less than the prevailing market price in the
      area. Subject to the terms of any such contracts of sale then outstanding,
      during any period that the Manager is purchasing or selling a JV Participant’s
      share of production, the JV Participant may elect by notice to the Manager
      to
      take in kind. The Manager shall be entitled to deduct from proceeds of any
      sale
      by it for the account of a JV Participant reasonable expenses incurred in such
      a
      sale. 

     

    11.3  Hedging.
      There
      shall be no hedging by the Joint Venture. Neither JV Participant shall have
      any
      obligation to account to the other JV Participant for, nor have any interest
      or
      right of participation in any profits or proceeds nor have any obligation to
      share in any losses from, futures contracts, forward sales, trading in puts,
      calls, options or any similar hedging, price protection or marketing mechanism
      employed by a JV Participant with respect to its proportionate share of any
      Products produced or to be produced from the Property.

     

    ARTICLE
      XII  

     

    SUPPLEMENTAL
      BUSINESS AGREEMENT

     

    12.1  Supplemental
      Business Agreement. At
      any
      time during the Joint Venture Period, the Management Committee may determine
      by
      unanimous vote of both JV Participants that it is appropriate to segregate
      the
      Area of Interest into areas subject to separate Programs and Budgets for
      purposes of conducting further Permitting, Exploration, or Feasibility Studies,
      Development, or Mining. At such time, the Management Committee shall designate
      which portion of the Property shall comprise an area of interest under a
      separate business arrangement (“Supplemental
      Business”),
      and
      the JV Participants shall enter into a new agreement (“Supplemental
      Business Agreement”)
      for
      the purpose of further exploring, analyzing, developing, and mining such portion
      of the Property. The Supplemental Business Agreement shall be in substantially
      the same form as this Agreement, with rights and interests of the JV
      Participants in the Supplemental Business identical to the rights and interests
      of the JV Participants in this Business at the time of the designation, unless
      otherwise agreed by the JV Participants, and with the JV Participants agreeing
      to new Capital and Equity Accounts and other terms necessary for the
      Supplemental Business Agreement to comply with the nature and 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -33-

      

    

     

     

    purpose
      of the designation. Following execution of the Supplemental Business Agreement,
      this Agreement shall terminate insofar as it affects the Property covered by
      the
      Supplemental Business Agreement.

     

    ARTICLE
      XIII  

     

    TRANSFER
      OF INTEREST; PREEMPTIVE RIGHT

     

    13.1  General.
      During
      the Joint Venture Period a JV Participant shall have the right to Transfer
      to a
      third party an interest in its Participating Interest, including an interest
      in
      this Agreement or the Assets, solely as provided in this Article.

     

    13.2  Limitations
      on Free Transferability.
      During
      the Joint Venture Period, any Transfer by either JV Participant under
      Section 13.1
      shall be
      subject to the following limitations:

     

    
      	(a)  	
              neither
                JV Participant shall Transfer any interest in this Agreement or the
                Assets
                (including, but not limited to, any royalty, profits, or other interest
                in
                the Products) except in conjunction with the Transfer of part or
                all of
                its Participating Interest; 

            

    

     

    
      	(b)  	
              no
                JV Participant shall Transfer any interest in this Agreement or the
                Property until the selling JV Participant offers to the other JV
                Participant the opportunity to purchase the portion of the selling
                JV
                Participant’s interest it intends to sell (“Right
                of First Refusal”)
                at a price chosen by the selling JV Participant. If the other JV
                Participant fails to purchase the interest within 20 days, the selling
                JV
                Participant may proceed with the sale of the interest pursuant to
                this
                section. The sale may not be for a price less than that offered to
                the
                non-selling JV Participant. No transferee of all or any part of a
                JV
                Participant’s Participating Interest shall have the rights of a JV
                Participant unless and until the transferring JV Participant has
                provided
                to the other JV Participant notice of the Transfer, except as provided
                in
                Section 13.2(f),
                the transferee, as of the effective date of the Transfer, has committed
                in
                writing to assume and be bound by this Agreement to the same extent
                as the
                transferring JV Participant;

            

    

     

    
      	(c)  	
              neither
                JV Participant shall make a Transfer that shall violate any Law,
                or
                without the consent of the other JV Participant, or result in the
                cancellation of any permits, licenses, or other similar
                authorization;

            

    

     

    
      	(d)  	
              no
                Transfer permitted by this Article XIII shall relieve the transferring
                JV
                Participant of its share of any liability, whether accruing before
                or
                after such Transfer, which arises out of Operations conducted prior
                to
                such Transfer or exists on the Effective
                Date;

            

    

     

    
      	(e)  	
              neither
                JV Participant, without the consent of the other JV Participant,
                shall
                make a Transfer that shall cause termination of the tax partnership
                established in Exhibit
                C.
                If such termination is caused, the transferring JV Participant shall
                indemnify the other JV Participant for, from and against any and
                all loss,
                cost, expense, damage, liability or claim therefore arising from
                the
                Transfer, including without limitation any increase in taxes, interest
                and
                penalties or decrease in 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -34-

      

    

     

    credits
      caused by such termination and any tax on
      indemnification proceeds received by the Indemnified JV
      Participant;

     

    
      	(f)  	
              if
                the Transfer is the grant of an Encumbrance in a Participating Interest
                to
                secure a loan or other indebtedness of either JV Participant in a
                bona
                fide transaction, other than a transaction approved unanimously by
                the
                Management Committee or Project Financing approved by the Management
                Committee, such Encumbrance shall be granted only in connection with
                such
                JV Participant’s financing payment or performance of that JV Participant’s
                obligations under this Agreement and shall be subject to the terms
                of this
                Agreement and the rights and interests of the other JV Participant
                hereunder (including without limitation under Section 8.10).
                Any such Encumbrance shall be further subject to the condition that
                the
                Chargee of such Encumbrance first enters into a written agreement
                with the
                other JV Participant in form satisfactory to the other JV Participant,
                acting reasonably, binding upon the Chargee, to the effect
                that:

            

    

     

    
      	(i)  	
              the
                Chargee shall not enter into possession or institute any proceedings
                for
                foreclosure or partition of the encumbering JV Participant’s Participating
                Interest and that such Encumbrance shall be subject to the provisions
                of
                this Agreement;

            

    

     

    
      	(ii)  	
              the
                Chargee’s remedies under the Encumbrance shall be limited to the sale of
                the whole (but only of the whole) of the encumbering JV Participant’s
                Participating Interest to the other JV Participant, or, failing such
                a
                sale, at a public auction to be held at least 30 days after prior
                notice
                to the other JV Participant, such sale to be subject to the purchaser
                entering into a written agreement with the other JV Participant whereby
                such purchaser assumes all obligations of the encumbering JV Participant
                under the terms of this Agreement. The price of any pre-emptive sale
                to
                the other JV Participant shall be the remaining principal amount
                of the
                loan plus accrued interest and related expenses, and such pre-emptive
                sale
                shall occur within 60 days of the Chargee’s notice to the other JV
                Participant of its intent to sell the encumbering JV Participant’s
                Participating Interest. Failure of a sale to the other JV Participant
                to
                close by the end of such period, unless failure is caused by the
                encumbering JV Participant or by the Chargee, shall permit the Chargee
                to
                sell the encumbering JV Participant’s Participating Interest at a public
                sale; and

            

    

     

    
      	(iii)  	
              the
                charge shall be subordinate to any then-existing debt, including
                Project
                Financing previously approved by the Management Committee, encumbering
                the
                transferring JV Participant’s Participating Interest;
                

            

    

     

    If
      a sale
      or other commitment or disposition of Products or proceeds from the sale of
      Products by either JV Participant upon distribution to it pursuant to
ARTICLE
      XV
      creates
      in a third party a security interest by Encumbrance in Products or proceeds
      therefrom prior to such distribution, such sales, commitment or disposition
      shall be subject to the terms and conditions of this Agreement, including
      without limitation, Section 8.10.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -35-

      

    

     

    PART
      IV  

     

    PROVISIONS
      APPLICABLE TO BOTH 

     

    OPTION
      PERIOD AND JOINT VENTURE PERIOD

     

    ARTICLE
      XIV  

     

    MANAGEMENT
      COMMITTEE

     

    14.1  Meetings of
      Management Committee. 

     

    
      	(a)  	
              The
                Management Committee shall hold regular meetings at least quarterly
                at a
                location to be mutually agreed upon. The Manager shall give 20 days
                notice
                to Kobex and USE/CC (either referred to in this ARTICLE
                XIV
                as
                an “MC
                Participant”)
                of such meetings. Additionally, either MC Participant may call a
                special
                meeting upon 7 days notice to the other MC Participant. In case of
                an
                emergency, reasonable notice of a special meeting shall suffice.
                There
                shall be a quorum if at least one member or alternate representing
                each MC
                Participant is present; provided,
                however,
                that if a MC Participant fails to attend two consecutive properly
                called
                meetings, then a quorum shall exist at the second meeting if the
                other MC
                Participant is represented by at least one appointed member, and
                a vote of
                such MC Participant shall be considered the vote required for the
                purposes
                of the conduct of all business properly noticed even if such vote
                would
                otherwise require unanimity.

            

    

     

    
      	(b)  	
              If
                business cannot be conducted at a regular or special meeting due
                to the
                lack of a quorum, either MC Participant may call the next meeting
                upon 10
                days notice to the other MC Participant.

            

    

     

    
      	(c)  	
              Each
                notice of a meeting shall include an itemized agenda prepared by
                the
                Manager in the case of a regular meeting or by the MC Participant
                calling
                the meeting in the case of a special meeting, but any matters may
                be
                considered if either MC Participant adds the matter to the agenda
                at least
                5 days before the meeting or with the consent of the other MC Participant.
                The Manager shall prepare minutes of all meetings and shall distribute
                copies of such minutes to the other MC Participant within 10 days
                after
                the meeting. Either MC Participant may electronically record the
                proceedings of a meeting with the consent of the other MC Participant.
                The
                other MC Participant shall sign and return or object to the minutes
                prepared by the Manager within 30 days after receipt, and failure
                to do
                either shall be deemed acceptance of the minutes as prepared by the
                Manager. The minutes, when signed or deemed accepted by both MC
                Participants, shall be the official record of the decisions made
                by the
                Management Committee. Decisions made at a Management Committee meeting
                shall be implemented in accordance with adopted Programs and Budgets.
                If a
                MC Participant timely objects to minutes proposed by the Manager,
                the
                members of the Management Committee shall seek, for a period not
                to exceed
                30 days from receipt by the Manager of notice of the objections,
                to agree
                upon minutes acceptable to both MC Participants. If the Management
                Committee does not reach agreement on the minutes of the meeting
                within
                such 30 day period, the minutes of the meeting as
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -36-

      

    

     

    prepared
      by the Manager together with the other
      Participant’s proposed changes shall collectively constitute the record of the
      meeting. If personnel employed in Operations are required to attend a Management
      Committee meeting, reasonable costs incurred in connection with such attendance
      shall be charged to the Business Account. All other costs shall be paid by
      the
      Participants individually.

     

    14.2  Action
      Without Meeting in Person.
      In lieu
      of meetings in person, the Management Committee may conduct meetings by
      telephone or video conference, so long as minutes of such meetings are prepared
      in accordance with Section 14.1.
      The
      Management Committee may also take actions in writing signed by all
      members.

     

    14.3  Matters
      Requiring Approval.
      Except
      as otherwise delegated to the Manager in Section 15.1,
      the
      Management Committee shall have exclusive authority to determine all matters
      related to overall policies, objectives, procedures, methods and actions under
      this Agreement.

     

    ARTICLE
      XV  

     

    MANAGER

     

    15.1  Powers
      and Duties of Manager.
      The
      Manager shall have the following powers and duties, which shall be discharged
      in
      accordance with adopted Programs and Budgets during the Option Period and Joint
      Venture Period, as applicable.

     

    
      	(a)  	
              The
                Manager shall manage, direct and control Operations, and shall prepare
                and
                present to the Management Committee proposed Programs and Budgets
                as
                provided in ARTICLE
                VII
                during the Option Period and ARTICLE
                IX
                during the Joint Venture Period.

            

    

     

    
      	(b)  	
              The
                Manager shall implement the decisions of the Management Committee,
                shall
                make all Expenditures necessary to carry out adopted Programs, and
                shall
                promptly advise the Management Committee if it lacks sufficient funds
                to
                carry out its responsibilities under this
                Agreement.

            

    

     

    
      	(c)  	
              The
                Manager shall use reasonable efforts to: (i) purchase or otherwise
                acquire all material, supplies, equipment, water, utility and
                transportation services required for Operations, such purchases and
                acquisitions to be made to the extent reasonably possible on the
                best
                terms available, taking into account all of the circumstances;
                (ii) obtain such customary warranties and guarantees as are available
                in connection with such purchases and acquisitions; and (iii) keep
                the Assets free and clear of all Encumbrances, except any Permitted
                Encumbrances and those Encumbrances specifically approved by the
                Management Committee.

            

    

     

    
      	(d)  	
              The
                Manager shall: (i) make or arrange for all payments required by
                leases, licenses, permits, contracts and other agreements related
                to the
                Assets; (ii) pay all taxes, assessments and like charges on
                Operations and Assets except taxes determined or measured by a JV
                Participant’s sales revenue or net income and taxes, including production
                taxes, attributable to a JV Participant’s share of Products, and shall
                otherwise promptly pay and discharge expenses incurred in Operations;
                provided,
                however,
                that if authorized by the Management Committee,

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -37-

      

    

     

    the
      Manager shall have the right to contest (in the
      courts or otherwise) the validity or amount of any taxes, assessments or charges
      if the Manager deems them to be unlawful, unjust, unequal or excessive, or
      to
      undertake such other steps or proceedings as the Manager may deem reasonably
      necessary to secure a cancellation, reduction, readjustment or equalization
      thereof before the Manager shall be required to pay them, but in no event shall
      the Manager permit or allow title to the Assets to be lost as the result of
      the
      nonpayment of any taxes, assessments or like charges; and (iii) do all
      other acts reasonably necessary to maintain the Assets.

     

    
      	(e)  	
              The
                Manager shall: (i) apply for all necessary permits, licenses and
                approvals; (ii) comply with all Laws; (iii) notify promptly the
                Management Committee of any allegations of substantial violation
                thereof;
                and (iv) prepare and file all reports or notices required for or as a
                result of Operations. The Manager shall not be in breach of this
                provision
                if a violation has occurred in spite of the Manager’s good faith efforts
                to comply consistent with its standard of care under
                Section 15.2.
                In the event of any such violation, the Manager shall timely cure
                or
                dispose of such violation on behalf of both JV Participants through
                performance, payment of fines and penalties, or both, and the cost
                thereof
                shall be charged to the Business
                Account.

            

    

     

    
      	(f)  	
              The
                Manager shall prosecute and defend on behalf of the Joint Venture,
                but
                shall not initiate without consent of the Management Committee, any
                litigation or administrative proceedings arising out of Operations.
                The
                non-managing JV Participant shall have the right to participate if
                it
                chooses to participate individually, at its own expense, in such
                litigation or administrative proceedings. The non-managing JV Participant
                shall approve in advance any settlement involving payments, commitments
                or
                obligations in excess of one hundred thousand Dollars ($100,000)
                in cash
                or value.

            

    

     

    
      	(g)  	
              The
                Manager shall provide insurance for the benefit of the JV Participants
                as
                provided in Exhibit K
                or
                as may otherwise be determined from time to time by the Management
                Committee.

            

    

     

    
      	(h)  	
              The
                Manager may dispose of Assets, whether by abandonment, surrender,
                or
                Transfer in the ordinary course of business, except that Property
                may be
                abandoned or surrendered only as provided in ARTICLE
                XVIII.
                Without prior authorization from the Management Committee, however,
                the
                Manager shall not: (i) dispose of Assets in any one transaction (or
                in any series of related transactions) having a value in excess of
                seventy
                five thousand Dollars ($75,000); (ii) enter into any sales contracts
                or commitments for Product, except as permitted in
                Section 11.2;
                (iii) begin a liquidation of the Business; or (iv) dispose of
                all or a substantial part of the Assets necessary to achieve the
                purposes
                of the Business.

            

    

     

    
      	(i)  	
              The
                Manager shall have the right to carry out its responsibilities hereunder
                through agents, Affiliates or independent
                contractors.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -38-

      

    

     

     

    
      	(j)  	
              The
                Manager shall perform or cause to be performed all assessment and
                other
                work, and shall pay all Governmental Fees, required by Law in order
                to
                maintain the unpatented mining claims, mill sites and tunnel sites
                included within the Property. The Manager shall have the right to
                perform
                the assessment work required hereunder pursuant to a common plan
                of
                exploration and continued actual occupancy of such claims and sites
                shall
                not be required. The Manager shall not be liable on account of any
                determination by any court or governmental agency that the work performed
                by the Manager does not constitute the required annual assessment
                work or
                occupancy for the purposes of preserving or maintaining ownership
                of the
                claims, provided that the work done is pursuant to an adopted Program
                and
                Budget and is performed in accordance with the Manager’s standard of care
                under Section 15.2.
                The Manager shall timely record with the appropriate county and file
                with
                the appropriate United States agency any required affidavits, notices
                of
                intent to hold and other documents in proper form attesting to the
                payment
                of Governmental Fees, the performance of assessment work or intent
                to hold
                the claims and sites, in each case in sufficient detail to reflect
                compliance with the requirements applicable to each claim and site.
                The
                Manager shall not be liable on account of any determination by any
                court
                or governmental agency that any such document submitted by the Manager
                does not comply with applicable requirements, provided that such
                document
                is prepared and recorded or filed in accordance with the Manager’s
                standard of care under Section 15.2.

            

    

     

    
      	(k)  	
              If
                authorized by the Management Committee, the Manager may: (i) locate,
                amend or relocate any unpatented mining claim or mill site or tunnel
                site,
                (ii) locate any fractions resulting from such amendment or
                relocation, (iii) apply for patents or mining leases or other forms
                of mineral tenure for any such unpatented claims or sites,
                (iv) abandon any unpatented mining claims for the purpose of locating
                mill sites or otherwise acquiring from the United States rights to
                the
                ground covered thereby, (v) abandon any unpatented mill sites for the
                purpose of locating mining claims or otherwise acquiring from the
                United
                States rights to the ground covered thereby, (vi) exchange with or
                convey to the United States any of the Property for the purpose of
                acquiring rights to the ground covered thereby or other adjacent
                ground,
                and (vii) convert any unpatented claims or mill sites into one or
                more leases or other forms of mineral tenure pursuant to any Law
                hereafter
                enacted.

            

    

     

    
      	(l)  	
              The
                Manager shall keep and maintain all required accounting and financial
                records pursuant to the procedures described in Exhibit B
                and in accordance with customary cost accounting practices in the
                mining
                industry, and shall ensure appropriate separation of accounts unless
                otherwise agreed by the JV Participants. All accounting practices
                and
                audits shall comply with the GAAP and all reports, reviews of internal
                controls, and related activities shall be conducted in compliance
                with the
                requirements of the Sarbanes
                Oxley Act of 2002.

            

    

     

    
      	(m)  	
              After
                the formation of the Joint Venture, the Manager shall maintain Equity
                Accounts for each JV Participant. Each JV Participant’s Equity Account
                shall be 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -39-

      

    

     

    credited
      with the value of such JV Participant’s
      contributions under Section 8.3(b).
      Each JV
      Participant’s Equity Account shall be charged with the cash and the fair market
      value of property distributed to such JV Participant (net of liabilities assumed
      by such JV Participant and liabilities to which such distributed property is
      subject). Contributions and distributions shall include all cash contributions
      or distributions plus the agreed value (expressed in dollars) of all in-kind
      contributions or distributions. Solely for purposes of determining the Equity
      Account balances of the JV Participants, the Manager shall reasonably estimate
      the fair market value of all Products distributed to the JV Participants, and
      such estimated value shall be used regardless of the actual amount received
      by
      each JV Participant upon disposition of such Products.

     

    
      	(n)  	
              The
                Manager shall keep the Management Committee advised of all Operations
                by
                submitting in writing to the members of the Management Committee:
                (i) monthly progress reports that include statements of expenditures
                and comparisons of such expenditures to the adopted Budget;
                (ii) periodic summaries of data acquired; (iii) copies of
                reports concerning Operations; (iv) a detailed final report within
                sixty (60) days after completion of each Program and Budget, which
                shall
                include comparisons between actual and budgeted expenditures and
                comparisons between the objectives and results of Programs; and
                (v) such other reports as any member of the Management Committee may
                reasonably request. Subject to ARTICLE
                XX,
                at all reasonable times the Manager shall provide the Management
                Committee, or other representative of a JV Participant upon the request
                of
                such JV Participant’s member of the Management Committee, access to, and
                the right to inspect and, at such Participant’s cost and expense, copy the
                Existing Data and all maps, drill logs and other drilling data, core,
                pulps, reports, surveys, assays, analyses, production reports, operations,
                technical, accounting and financial records, and other Business
                Information, to the extent preserved or kept by the Manager, subject
                to
                ARTICLE
                XX.
                In addition, the Manager shall allow the non-managing JV Participant,
                at
                the latter’s sole risk, cost and expense, and subject to reasonable safety
                regulations, to inspect the Assets and Operations at all reasonable
                times,
                so long as the non-managing JV Participant does not unreasonably
                interfere
                with Operations.

            

    

     

    
      	(o)  	
              The
                Manager shall prepare, for Management Committee approval, an Environmental
                Compliance plan for all Operations consistent with the requirements
                of any
                applicable Laws or contractual obligations and shall include in each
                Program and Budget sufficient funding to implement the Environmental
                Compliance plan and to satisfy the financial assurance requirements
                of any
                applicable Law or contractual obligation pertaining to Environmental
                Compliance. To the extent practical, the Environmental Compliance
                plan
                shall incorporate concurrent reclamation of Property disturbed by
                Operations. The Environmental Compliance plan shall not be implemented
                until approved by the Management
                Committee.

            

    

     

    
      	(p)  	
              The
                Manager shall undertake to perform Continuing Obligations when and
                as
                economic and appropriate, whether before or after termination of
                the
                Business. 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -40-

      

    

     

    The
      Manager shall have the right to delegate
      performance of Continuing Obligations to persons having demonstrated skill
      and
      experience in relevant disciplines. As part of each Program and Budget
      submittal, the Manager shall specify in such Program and Budget the measures
      to
      be taken for performance of Continuing Obligations and the cost of such
      measures. The Manager shall keep the other Participant reasonably informed
      about
      the Manager’s efforts to discharge Continuing Obligations. Authorized
      representatives of each Participant shall have the right from time to time
      to
      enter the Property to inspect work directed toward satisfaction of Continuing
      Obligations and audit books, records, and accounts related thereto.

     

    
      	(q)  	
              The
                funds that are to be deposited into the Environmental Compliance
                Fund
                shall be maintained by the Manager in a separate, interest bearing
                cash
                management account, which may include, but is not limited to, money
                market
                investments and money market funds, and/or in longer term investments
                if
                approved by the Management Committee. Such funds shall be used solely
                for
                Environmental Compliance and Continuing Obligations, including the
                committing of such funds, interests in property, insurance or bond
                policies, or other security to satisfy Laws regarding financial assurance
                for the reclamation or restoration of the Property, and for other
                Environmental Compliance
                requirements.

            

    

     

    
      	(r)  	
              If
                Participating Interests are adjusted in accordance with this Agreement
                the
                Manager shall propose from time to time one or more methods for fairly
                allocating costs for Continuing
                Obligations.

            

    

     

    
      	(s)  	
              The
                Manager shall undertake all other activities reasonably necessary
                to
                fulfill the foregoing, and to implement the policies, objectives,
                procedures, methods and actions determined by the Management
                Committee.

            

    

     

    
      	(t)  	
              For
                further clarification, as set out in Section 7.4,
                during the Option Period the Manager shall not be responsible to
                operate
                the Facility and during the Joint Venture Period, the Manager shall
                be
                required to operate the Facility as directed by the Management
                Committee.

            

    

     

    15.2  Standard
      of Care.
      The
      Manager shall discharge its duties under Section 15.1
      and
      conduct all Operations in a good, workmanlike and efficient manner, in
      accordance with sound mining and other applicable industry standards and
      practices, and in accordance with Laws and with the terms and provisions of
      leases, licenses, permits, contracts and other agreements pertaining to the
      Assets. The Manager shall not be liable to the other JV Participant for any
      act
      or omission resulting in damage or loss except to the extent caused by or
      attributable to the Manager’s wilful misconduct or gross negligence. The Manager
      shall not be in default of any of its duties under Section 15.1
      if its
      inability or failure to perform results from the failure of the other
      Participant to perform acts or to contribute amounts required of it by this
      Agreement.

     

    15.3  Resignation;
      Deemed Offer to Resign.
      The
      Manager may resign upon not less than 6 months’ prior notice to the other JV
      Participant, in which case the other JV Participant may elect to become the
      new
      Manager by notice to the resigning JV Participant within 10 days after the
      

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -41-

      

    

     

     

    notice
      of
      resignation. If any of the following shall occur, the Manager shall be deemed
      to
      have resigned upon the occurrence of the event described in each of the
      following subsections, with the successor Manager to be appointed by the other
      JV Participant at a subsequently called meeting of the Management Committee,
      at
      which the Manager shall not be entitled to vote, and the other JV Participant
      may appoint itself or a third party as the Manager:

     

    
      	(a)  	
              the
                aggregate Participating Interest of the Manager and its Affiliates
                becomes
                less than 25%; 

            

    

     

    
      	(b)  	
              the
                Manager is in Material Breach of an obligation imposed upon it under
                this
                Agreement and such failure continues for a period of 60 days after
                notice
                from the other JV Participant demanding
                performance;

            

    

     

    
      	(c)  	
              the
                Manager fails to pay or contest in good faith its bills and Business
                debts
                as such obligations become due; 

            

    

     

    
      	(d)  	
              a
                receiver, liquidator, assignee, custodian, trustee, sequestrator
                or
                similar official for a substantial part of its assets is appointed
                and
                such appointment is neither made ineffective nor discharged within
                60 days
                after the making thereof, or such appointment is consented to, requested
                by, or acquiesced in by the Manager; 

            

    

     

    
      	(e)  	
              the
                Manager commences a voluntary case under any applicable bankruptcy,
                insolvency or similar law now or hereafter in effect; or consents
                to the
                entry of an order for relief in an involuntary case under any such
                law or
                to the appointment of or taking possession by a receiver, liquidator,
                assignee, custodian, trustee, sequestrator or other similar official
                of
                any substantial part of its assets; or makes a general assignment
                for the
                benefit of creditors; or takes corporate or other action in furtherance
                of
                any of the foregoing; or

            

    

     

    
      	(f)  	
              entry
                is made against the Manager of a judgment, decree or order for relief
                affecting its ability to serve as Manager or a substantial part of
                its
                Participating Interest or its other assets by a court of competent
                jurisdiction in an involuntary case commenced under any applicable
                bankruptcy, insolvency or other similar law of any jurisdiction now
                or
                hereafter in effect.

            

    

     

    Under
      Sections 15.3(d),
      15.3(e)
      or
15.3(f)
      above,
      the appointment of a successor Manager shall be deemed to pre-date the event
      causing a deemed resignation.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -42-

      

    

     

    15.4  Administrative
      Charges and Services Agreement. 

     

    
      	(a)  	
              The
                administration charges of Kobex as Manager shall be a deemed an
                Expenditure charge which is no greater than 5% of all the actual
                Expenditures incurred during both the Option Period and Joint Venture
                Period, and administrative charges on capital expenditures shall
                be no
                greater than 1% (collectively the “Administrative
                Charges”).

            

    

     

    
      	(b)  	
              Kobex
                and USE/CC shall enter into a Services Agreement to provide for
                compensation to U.S. Energy for the use of its employees to perform
                administrative and operating functions, as further provided in
                Exhibit L.

            

    

     

    15.5  Transactions
      With Affiliates.
      If the
      Manager engages Affiliates to provide services hereunder, it shall do so on
      terms no less favorable than would be the case in arm’s-length transactions with
      unrelated persons.

     

    15.6  Activities
      During Deadlock.
      If the
      Management Committee for any reason fails to adopt an Exploration, Feasibility
      Study or Development Program and Budget, the Manager shall continue Operations
      at levels sufficient to maintain the Property. If the Management Committee
      for
      any reason fails to adopt an initial Mining Program and Budget or any Expansion
      or Modification Programs and Budgets, the Manager shall continue Operations
      at
      levels sufficient to maintain the then current Operations and Property. If
      the
      Management Committee for any reason fails to adopt Mining Programs and Budgets
      subsequent to the initial Mining Program and Budget, subject to the contrary
      direction of the Management Committee and receipt of necessary funds, the
      Manager shall continue Operations at levels comparable with the last adopted
      Mining Program and Budget. All of the foregoing shall be subject to the contrary
      direction of the Management Committee and the receipt of necessary funds.

     

    ARTICLE
      XVI  

     

    WITHDRAWAL
      AND TERMINATION

     

    16.1  Termination. 

     

    
      	(a)  	
              Termination
                on Terms or by Agreement.
                This Agreement shall terminate as expressly provided herein under
                Sections
                6.4,
                6.10,
                7.14(c)
                and this ARTICLE
                XVI,
                unless earlier terminated by written agreement by the
                Parties.

            

    

     

    
      	(b)  	
              Termination
                by Notice.
                Kobex may terminate this Agreement at any time by written notice
                to USE/CC
                (including during an event of force majeure as set out in Section
                21.6),
                subject to paying the Initial Expenditure if not incurred yet. Upon
                any
                termination of this Agreement, Kobex must file all work and/or pay
                all
                such fees to maintain the Property in good standing for a period
                of three
                months after such notice, and other than filing such work or paying
                such
                fees shall have no further obligations to
                USE/CC.

            

    

     

    16.2  Termination
      by Deadlock.
      During
      the Joint Venture Period, if the Management Committee fails to adopt a Program
      and Budget six months after the expiration of the latest adopted Program and
      Budget (subject to force majeure as set out in Section 21.6),
      either
      JV 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -43-

      

    

     

     

    Participant
      may elect to terminate the Business by giving 30 days notice of termination
      to
      the other JV Participant.

     

    16.3  Withdrawal.
      During
      the Joint Venture Period, a JV Participant may elect to withdraw from the
      Business by (i) giving notice to the other JV Participant of the effective
      date of withdrawal, which shall be the later of the end of the then current
      Program Period or 30 days after the date of the notice. Upon such withdrawal,
      the Business shall terminate, and the withdrawing JV Participant shall be deemed
      to have transferred to the remaining JV Participant, all of its Participating
      Interest, including all of its interest in the Assets, without cost and free
      and
      clear of all Encumbrances arising by, through or under such withdrawing JV
      Participant, except Permitted Encumbrances and those to which both JV
      Participants have agreed. The withdrawing JV Participant shall execute and
      deliver all instruments as may be necessary in the reasonable judgment of the
      other JV Participant to effect the transfer of its interests in the Assets
      to
      the other JV Participant. If within a 60 day period both JV Participants elect
      to withdraw, then the Business shall instead be deemed to have been terminated
      by the consent of the JV Participants pursuant to Section 15.1.

     

    16.4  Continuing
      Obligations and Environmental Liabilities.
      On
      termination of the Business under Sections 16.1,
      16.2
      or
16.3,
      each
      Party shall remain liable for its respective share of liabilities to third
      persons (whether such arises before or after such withdrawal), including
      Environmental Liabilities and Continuing Obligations. During the Option Period,
      Kobex shall only be liable for the liabilities that it causes or incurs. During
      the Joint Venture Period, the withdrawing JV Participant’s share of such
      liabilities shall be equal to its Participating Interest at the time such
      liability was incurred, after first taking into account any reduction,
      readjustment, and restoration of Participating Interests under
      Sections 8.6,
      9.4,
      9.5
      and
10.5
      (or, as
      to liabilities arising prior to the Effective Date, its initial Participating
      Interest). 

     

    16.5  Disposition
      of Assets on Termination.
      Promptly after termination of this under Sections 16.1
      or
16.2,
      the
      Manager shall take all action necessary to wind up the activities of the
      Business. All costs and expenses incurred in connection with the termination
      of
      the Business shall be expenses chargeable to the Business Account. 

     

    16.6  Non-Compete
      Covenants.
      Neither
      JV Participant that withdraws pursuant to Section 16.3,
      or is
      deemed to have withdrawn pursuant to Sections 6.4,
      8.6
      or
10.5,
      nor any
      Affiliate of such a JV Participant, shall directly or indirectly acquire any
      interest or right to explore or mine, or both, on any property any part of
      which
      is within the Property for 24 months after the effective date of withdrawal.
      If
      a withdrawing JV Participant, or the Affiliate of a withdrawing JV Participant,
      breaches this Section, such JV Participant shall be obligated to offer to convey
      to the non-withdrawing JV Participant, without cost, any such property or
      interest so acquired (or ensure its Affiliate offers to convey the property
      or
      interest to the non-withdrawing JV Participant, if the acquiring party is the
      withdrawing JV Participant’s Affiliate). Such offer shall be made in writing and
      can be accepted by the non-withdrawing JV Participant at any time within 10
      days
      after the offer is received by such non-withdrawing JV Participant. Failure
      of a
      JV Participant’s Affiliate to comply with this section shall be a breach by such
      JV Participant of this Agreement.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -44-

      

    

     

     

    16.7  Right
      to Data After Termination.
      After
      termination of the Business pursuant to Sections 16.1
      or
16.2,
      each
      Party shall be entitled to make copies of all applicable information acquired
      hereunder before the effective date of termination not previously furnished
      to
      it, but a terminating or withdrawing Party shall not be entitled to any such
      copies after any other termination or withdrawal.

     

    16.8  Continuing
      Authority.
      On
      termination of the Business under Sections 16.1,
      16.2
      or
16.3
      or the
      deemed withdrawal of any Party pursuant to Sections 8.6 or
      10.5,
      the
      Party which was the Manager prior to such termination or withdrawal (or the
      other Party in the event of a withdrawal by the Manager) shall have the power
      and authority to do all things on behalf of the Parties which are reasonably
      necessary or convenient to: (a) wind up Operations and (b) complete
      any transaction and satisfy any obligation, unfinished or unsatisfied, at the
      time of such termination or withdrawal, if the transaction or obligation arises
      out of Operations prior to such termination or withdrawal. The Manager shall
      have the power and authority to grant or receive extensions of time or change
      the method of payment of an already existing liability or obligation, prosecute
      and defend actions on behalf of the Parties and the Business, and take any
      other
      reasonable action in any matter with respect to which the former Parties
      continue to have, or appear or are alleged to have, a common interest or a
      common liability. 

     

    ARTICLE
      XVII  

     

    ACQUISITIONS
      WITHIN AREA OF INTEREST

     

    17.1  General.
      Any
      interest or right to acquire any interest in real property, Mineral rights
      or
      water rights (in this Section collectively referred to as “Rights”)
      related
      thereto within the Area of Interest either acquired or proposed to be acquired
      during the term of this Agreement by or on behalf of any Party (“Acquiring
      Party”)
      or any
      Affiliate of such Party shall be subject to the terms and provisions of this
      Agreement. For further clarification a reference to “Parties”
      in this
      Article shall mean USE/CC and Kobex, and a reference to “Party”
      shall
      mean one of them. The Parties and their respective Affiliates for their separate
      account shall be free to acquire lands and interests in lands outside the Area
      of Interest and to locate mining claims outside the Area of Interest. Failure
      of
      any Affiliate of any Party to comply with this Article shall be a breach by
      such
      Party of this Agreement. 

     

    17.2  Notice
      to Non-Acquiring Party.
      Within
      15 days after the acquisition or proposed acquisition, as the case may be,
      of
      any interest or the right to acquire any interest in Rights wholly or partially
      within the Area of Interest (except Rights acquired by the Manager pursuant
      to a
      Program), the Acquiring Party shall notify the non-acquiring Party of such
      acquisition by it or its Affiliate; provided further that if the acquisition
      of
      any interest or right to acquire any interest pertains to Rights partially
      within the Area of Interest, then all such Rights (i.e.,
      the
      part within the Area of Interest and the part outside the Area of Interest)
      shall be subject to this Article. The Acquiring Party’s notice shall describe in
      detail the acquisition, the acquiring party if that party is an Affiliate,
      the
      lands and minerals covered thereby, any water rights related thereto, the cost
      thereof, and the reasons why the Acquiring Party believes that the acquisition
      (or proposed acquisition) of the interest is in the best interests of the
      Parties under this Agreement. In addition to such notice, the Acquiring Party
      shall make any and all information concerning the relevant interest available
      for inspection by the non-acquiring Party.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -45-

      

    

     

     

    17.3  Election
      to Acquire. 

     

    
      	(a)  	
              During
                the Option Period, within 30 days after receiving the Acquiring Party’s
                notice, the non-acquiring Party may notify the Acquiring Party of
                its
                election to include such acquired interest in the Property and make
                it
                subject to the terms of this Agreement. Upon such election such acquired
                interest shall be included in the Property thereafter for all purposes
                of
                this Agreement. If the Acquiring Party is USE/CC, then Kobex shall
                reimburse it for the acquisition costs that it or its Affiliate has
                incurred. When paid by Kobex in the first instance on acquisition,
                or
                reimbursed by Kobex when acquired by USE/CC, the acquisition costs
                for any
                acquired interests will be deemed to constitute Expenditures to the
                credit
                of Kobex pursuant to Section 6.1
                hereunder.

            

    

     

    
      	(b)  	
              During
                the Joint Venture Period, within 30 days after receiving the Acquiring
                Party’s notice, the non-acquiring Party may notify the Acquiring Party
                of
                its election to accept a proportionate interest in the acquired interest
                equal to its Participating Interest. Promptly upon such notice, the
                Acquiring Party shall convey or cause its Affiliate to convey to
                the
                non-acquiring Party, in proportion to their respective Participating
                Interests, by special warranty deed with title held as described
                in
                Section 8.12,
                all of the Acquiring Party’s (or its Affiliate’s) interest in such
                acquired interest, free and clear of all Encumbrances arising by,
                through
                or under the Acquiring Party (or its Affiliate) other than those
                to which
                both Parties have agreed. The acquired interests shall become a part
                of
                the Property for all purposes of this Agreement immediately upon
                such
                notice. The non-acquiring Party shall promptly pay to the Acquiring
                Party
                its proportionate share of the latter’s actual out-of-pocket acquisition
                costs.

            

    

     

    17.4  Election
      to Acquire Not Exercised.
      If the
      other Party does not give such notice within the 30 day period set forth in
      Section 17.3,
      it
      shall have no interest in the acquired interests, and the acquired interests
      shall not be a part of the Property, Assets nor continue to be subject to this
      Agreement, and the Acquiring Party shall be free to hold or deal with the
      acquired interest free of the terms of this Agreement, and such acquired
      interest shall be excluded from the Area of Interest.

     

    ARTICLE
      XVIII  

     

    ABANDONMENT
      AND SURRENDER OF PROPERTIES

     

    18.1  Abandonment
      and Surrender of Property - Option Period.
      During
      the Option Period, other than as provided in Section Error!
      Reference source not found.,
      the
      Manager may surrender or abandon any Rights comprising the Property only with
      the consent of USE/CC. If USE/CC agrees with such abandonment or surrender,
      then
      the Manager may proceed with such abandonment or surrender. If USE/CC does
      not
      agree with such abandonment or surrender, then such Rights shall not be
      abandoned.

     

    18.2  Abandonment
      and Surrender of Property - Joint Venture Period. During
      the Joint Venture Period, either JV Participant may request the Management
      Committee to authorize the Manager to surrender or abandon part or all of the
      Property. If the Management Committee does 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -46-

      

    

     

     

    not
      authorize such surrender or abandonment, or authorizes any such surrender or
      abandonment over the objection of either JV Participant, the JV Participant
      that
      desires to surrender or abandon shall assign to the objecting JV Participant,
      by
      special warranty deed and without cost to the objecting JV Participant, all
      of
      the abandoning JV Participant’s interest in the Property sought to be abandoned
      or surrendered, free and clear of all Encumbrances created by, through or under
      the abandoning JV Participant other than those to which both JV Participants
      have agreed. Upon the assignment, such properties shall cease to be part of
      the
      Property. The JV Participant that desires to abandon or surrender shall remain
      liable for its share (determined by its Participating Interest as of the date
      of
      such abandonment, after first taking into account any reduction, readjustment,
      and restoration of Participating Interests under Sections 8.6,
      9.4,
      9.5,
      and
10.5)
      of any
      liability with respect to such Property, including, without limitation,
      Continuing Obligations, Environmental Liabilities and Environmental Compliance,
      whether accruing before or after such abandonment, arising out of activities
      prior to the Effective Date and out of Operations conducted prior to the date
      of
      such abandonment, regardless of when any funds may be expended to satisfy such
      liability.

     

    ARTICLE
      XIX  

     

    DISPUTES

     

    19.1  Governing
      Law.
      Except
      for matters of title to the Property or their Transfer, which shall be governed
      by the law of their situs,
      this
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of Colorado, without regard for any conflict of laws or choice of
      laws
      principles that would permit or require the application of the laws of any
      other
      jurisdiction.

     

    19.2  Dispute
      Resolution.
      All
      disputes arising under or in connection with this Agreement which cannot be
      resolved by agreement between the Parties shall be resolved in accordance with
      Sections 19.3
      and 19.4.
      The
      dispute resolution mechanisms applicable to Section 6.9
      shall be
      pursued prior to any arbitration or legal action. If any legal action or other
      proceeding is brought for the enforcement of this Agreement, or because of
      an
      alleged dispute, breach, default, or misrepresentation in connection with any
      of
      the provisions of this Agreement, the successful or substantially prevailing
      Party shall be entitled to recover reasonable attorneys’ fees and other costs
      incurred in that action or proceeding, in addition to any other relief to which
      it or they may be entitled.

     

    19.3  Mediation.
      With
      the exception of disputes arising under Section 6.9,
      if any
      dispute has not been resolved within 30 days after the date of the Notice of
      a
      dispute, or if the Party receiving such Notice fails or refuses to meet within
      such time period, either Party may initiate mediation of the dispute by sending
      the other Party a written request that the dispute be mediated. The Party
      receiving such a written request shall promptly respond to the requesting Party
      so that all Parties can jointly select a neutral and impartial mediator and
      schedule the mediation session. The Parties shall mediate the dispute before
      a
      neutral, third party mediator within 30 days after the date of the written
      request for mediation.

     

    19.4  Arbitration.
      If
      a
      dispute has not been resolved within 60 days after the original Notice of a
      dispute or within 30 days after the date of a request for mediation, whichever
      is later, then any Party may initiate arbitration proceedings. Any dispute,
      controversy or claim, of any and 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -47-

      

    

     

     

    every
      kind or type, whether based on contract, tort, statute, regulations, or
      otherwise, arising out of, connected with, or relating in any way to this
      Agreement, the relationship of the Parties, the obligations of the Parties
      or
      the Operations carried out under this Agreement, including without limitation,
      any dispute as to the existence, validity, construction, interpretation,
      negotiation, performance, non-performance, breach, termination, or
      enforceability of this Agreement and establishment of fair market value, shall
      be settled through final and binding arbitration, it being the intention of
      the
      Parties that this is a broad form arbitration agreement designed to encompass
      all possible disputes among the Parties relating to the project that is the
      subject of the JV Participants’ agreement.

     

    The
      arbitration shall be conducted in accordance with the Arbitration Rules of
      the
      American Arbitration Association (“AAA”)
      as in
      effect on the date of commencement of the arbitration proceeding (the
“AAA
      Rules”).
      The
      arbitration panel shall apply the Federal Rules of Evidence to all evidentiary
      questions arising in the course of the arbitration, and shall apply the Federal
      Rules of Civil Procedure to the conduct of discovery in the course of the
      arbitration. 

     

    
      	(a)  	
              Number
                of Arbitrators.
                The Parties shall appoint a sole arbitrator agreeable to them to
                resolve
                any dispute; provided,
                however,
                that should the Parties fail to agree upon a sole arbitrator within
                30
                days after the initiation of the arbitration, then there shall be
                3
                arbitrators. The claimant shall name the first arbitrator within
                thirty
                days after the expiration of the above-described deadline to appoint
                a
                single arbitrator. The respondent shall appoint the second arbitrator
                within 30 days after the appointment of the first arbitrator. The
                two
                Party-appointed arbitrators shall appoint the third arbitrator within
                thirty days after the appointment of the second arbitrator. If
                (i) the respondent fails to appoint an arbitrator or (ii) the
                two Party-appointed arbitrators fail to appoint a third arbitrator
                within
                the above-described time limitations, then the AAA shall appoint
                the
                second and/or third arbitrator, as applicable.

            

    

     

    
      	(b)  	
              Place
                of Arbitration.
                Unless otherwise agreed in writing by all Parties to the arbitration,
                the
                situs of the arbitration under this Agreement shall be Denver, Colorado,
                U.S.A.

            

    

     

    
      	(c)  	
              Language.
                The arbitration proceedings shall be conducted in the English
                language.

            

    

     

    
      	(d)  	
              Entry
                of Judgment.
                Judgment on the award of the arbitral tribunal may be entered by
                any court
                of competent jurisdiction.

            

    

     

    
      	(e)  	
              Qualifications
                and Conduct of the Arbitrators.
                All arbitrators shall be and remain at all times wholly impartial
                and
                shall provide the Parties with a statement that they can and shall
                decide
                the case impartially. No arbitrator shall have any financial interest
                (directly or indirectly) in the dispute or any financial dependence
                (directly or indirectly) upon any of the Parties. All arbitrators
                shall be
                knowledgeable of the mining industry or the law applicable to such
                business. The AAA’s Rules of Ethics shall be applicable to all
                arbitrators. 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -48-

      

    

     

     

    
      	(f)  	
              Interim
                Measures.
                The arbitrators, or in an emergency the presiding arbitrator acting
                alone
                in the event one or more of the other arbitrators are unable to be
                involved in a timely fashion, may grant interim measures including
                injunctions, attachments and conservation orders in appropriate
                circumstances, which measures the Parties agree may be immediately
                enforced by the arbitrators or by court order. Hearings on requests
                for
                interim measures may be held in person, by telephone or by video
                conference, and requests for relief, responses, briefs or memorials
                may be
                sent to, and orders or awards received from, the arbitrators by facsimile
                or other similar means which include a confirmation of delivery.
                Notwithstanding the requirements for alternative dispute resolution
                procedures (such as negotiation and mediation), prior to the constitution
                of the arbitration tribunal and thereafter as necessary to enforce
                the
                arbitrators’ rulings or in the absence of the jurisdiction of the
                arbitrators to rule on interim measures in a given jurisdiction,
                any Party
                may apply to a court for interim measures, and the JV Parties agree
                that
                seeking and obtaining such measures shall not waive the right to
                arbitration.

            

    

     

    
      	(g)  	
              Costs
                and Attorney’s Fees.
                The arbitral tribunal is authorized to award attorney’s fees or allocate
                them between the Parties. The costs of the arbitration proceedings
                shall
                be borne in the manner determined by the arbitral tribunal, with
                the
                exception of the arbitrators’ fees. The Parties shall divide the cost of a
                single arbiter, with Kobex paying 50% of the fee and the U.S. Energy
                Group
                paying the remaining 50%. In the event that three arbitrators are
                appointed, each of Kobex and the U.S. Energy Group shall pay the
                fee of
                the arbitrator it appoints and 50% of the fee of the third
                arbitrator.

            

    

     

    
      	(h)  	
              Currency
                of Award.
                The arbitral award shall be made and payable in Dollars free of any
                tax or
                other deduction.

            

    

     

    
      	(i)  	
              Punitive
                Damages.
                Penal, punitive, treble, multiple, consequential, incidental or similar
                damages may not be recovered or
                awarded.

            

    

     

    
      	(j)  	
              Confidentiality.
                Except to the extent necessary to enforce the arbitration, agreement
                or
                award, to enforce other rights of the Parties, or as required by
                law, the
                Parties, their employees, officers, directors, counsel, consultants,
                and
                expert witnesses, shall maintain as confidential the fact of the
                arbitration proceeding, the arbitral award, contemporaneous or historical
                documents exchanged or produced during the arbitration proceeding,
                and
                memorials, briefs or other documents prepared for the
                arbitration.

            

    

     

    
      	(k)  	
              Waiver
                of Appeals.
                To the extent permitted by law, right to appeal from or to cause
                a review
                of any arbitral award by any court is hereby waived by the JV
                Participants.

            

    

     

    
      	(l)  	
              Summary
                Disposition.
                The arbitrators are hereby authorized, if they consider it appropriate,
                to
                decide any disputes by summary disposition on the documents and written
                testimony without hearing oral
                testimony.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -49-

      

    

     

     

    
      	(m)  	
              Draft
                of the Proposed Award.
                Prior to rendering the final award, the arbitral tribunal shall submit
                to
                the Parties an unsigned draft of the proposed award and each Party,
                within
                10 Business Days after receipt of such draft award, may serve on
                every
                other Party and file with the tribunal a written statement commenting
                upon
                any alleged errors of fact, law, computation, or otherwise. The tribunal
                shall endeavour to render its final award within 10 Business Days
                after
                the receipt of the letter of the written statements of the
                Parties.

            

    

     

    ARTICLE
      XX  

     

    CONFIDENTIALITY,
      OWNERSHIP, 

     

    USE
      AND DISCLOSURE OF INFORMATION

     

    20.1  Business
      Information.
      Except
      as provided in Sections 20.3
      and
20.4,
      or with
      the prior written consent of the other Parties, each Party shall keep
      confidential and not disclose to any third party or the public any portion
      of
      the Business Information that constitutes Confidential Information. During
      the
      Joint Venture Period, all Business Information shall be owned jointly by the
      JV
      Participants as their Participating Interests are determined pursuant to this
      Agreement. Both before and after the termination of the Business, all Business
      Information may be used by either any Party for any purpose, whether or not
      competitive with the Business, without consulting with, or obligation to, the
      other Parties. 

     

    20.2  Party
      Information.
      In
      performing its obligations under this Agreement, no Party shall be obligated
      to
      disclose any Party Information. If a Party elects to disclose Party Information
      in performing its obligations under this Agreement, such Party Information,
      together with all improvements, enhancements, refinements and incremental
      additions to such Party Information that are developed, conceived, originated
      or
      obtained by either any Party in performing its obligations under this Agreement
      (“Enhancements”),
      shall
      be owned exclusively by the Party that originally developed, conceived,
      originated or obtained such Party Information. Each Party may use and enjoy
      the
      benefits of such Participant Information and Enhancements in the conduct of
      the
      Business hereunder, but the Parties that did not originally develop, conceive,
      originate or obtain such Party Information may not use such Party Information
      and Enhancements for any other purpose. Except a provided in Section 20.4,
      or with
      the prior written consent of the other Party, which consent may be withheld
      in
      such Party’s sole discretion, each Party shall keep confidential and not
      disclose to any third party or the public any portion of Party Information
      and
      Enhancements owned by the other Parties that constitutes Confidential
      Information.

     

    20.3  Permitted
      Disclosure of Confidential Business Information.
      Any
      Party may disclose Business Information that is Confidential
      Information:

     

    
      	(a)  	
              to
                a Party’s officers, directors, partners, members, employees, Affiliates,
                shareholders, agents, attorneys, accountants, consultants, contractors,
                subcontractors or advisors, for the sole purpose of such Party’s
                performance of its obligations under this
                Agreement;

            

    

     

    
      	(b)  	
              to
                any party to whom the disclosing Party contemplates a Transfer of
                all or
                any part of its Participating Interest, for the sole purpose of evaluating
                the proposed Transfer; 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -50-

      

    

     

     

    
      	(c)  	
              to
                any actual or potential lender, underwriter or investor for the sole
                purpose of evaluating whether to make a loan to or investment in
                the
                disclosing Party; or 

            

    

     

    
      	(d)  	
              to
                a third party with whom the disclosing Party contemplates any independent
                business activity or operation.

            

    

     

    The
      Party
      disclosing Confidential Information pursuant to this Section 20.3,
      shall
      disclose such Confidential Information to only those parties who have a
bona
      fide
      need to
      have access to such Confidential Information for the purpose for which
      disclosure to such parties is permitted under this Section 20.3
      and who
      have agreed in writing supplied to, and enforceable by, the other Parties to
      protect the Confidential Information from further disclosure, to use such
      Confidential Information solely for such purpose and to otherwise be bound
      by
      the provisions of this ARTICLE
      XX.
      Such
      writing shall not preclude parties described in Section 20.3(b)
      from
      discussing and completing a Transfer with the other Parties. The Party
      disclosing Confidential Information shall be responsible and liable for any
      use
      or disclosure of the Confidential Information by such parties in violation
      of
      this Agreement and such other writing. 

     

    20.4  Disclosure
      Required By Law.
      Notwithstanding anything contained in this Article, a Party may disclose any
      Confidential Information if, in the opinion of the disclosing Party’s legal
      counsel:

     

    
      	(a)  	
              such
                disclosure is legally required to be made in a judicial, administrative
                or
                governmental proceeding pursuant to a valid subpoena or other applicable
                order;

            

    

     

    
      	(b)  	
              such
                disclosure is legally required to be made pursuant to the rules or
                regulations of a stock exchange or similar trading market applicable
                to
                the disclosing JV Participant;
                or

            

    

     

    
      	(c)  	
              such
                disclosure is legally required to be made by the rules and regulations
                of
                any regulatory authority.

            

    

     

    Prior
      to
      any disclosure of Confidential Information under this Section 20.4,
      the
      disclosing Party shall give the other Party at least two Business Days prior
      written notice (unless less time is permitted by such rules, regulations or
      proceeding) and, in making such disclosure, the disclosing Party shall disclose
      only that portion of Confidential Information required to be disclosed and
      shall
      take all reasonable efforts to preserve the confidentiality thereof, including,
      without limitation, obtaining protective orders and supporting the other Parties
      in intervention in any such proceeding.

     

    20.5  Permitted
      Disclosure.
      In
      addition, notwithstanding anything contained in this Article, a Party may
      disclose any Confidential Information in the following disclosure
      scenarios:

     

    
      	(a)  	
              to
                another Party or the Manager; 

            

    

     

    
      	(b)  	
              with
                the prior written consent of all the other
                Parties;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -51-

      

    

     

     

    
      	(c)  	
              to
                a bank or other financial institution considering the provision of
                or,
                which has provided financial accommodation to, a Party or an Affiliate
                of
                a Party or to a trustee, representative or agent or such a bank or
                financial institution;

            

    

     

    
      	(d)  	
              to
                a third party, provided that such third party has first agreed in
                writing
                to maintain the confidentiality of the Confidential
                Information;

            

    

     

    
      	(e)  	
              by
                a Party to legal, financial and other professional advisers, auditors
                and
                other consultants, officers and employees of a Party or a Party’s
                Affiliate, provided that such Party or Party’s Affiliate has first agreed
                in writing to maintain the confidentiality of the Confidential
                Information; and

            

    

     

    
      	(f)  	
              to
                the extent that the Confidential Information was publicly available
                at the
                Effective Date or becomes publicly available subsequent to the Effective
                Date without breach of this
                Agreement.

            

    

     

    20.6  Public
      Announcements.
      Prior
      to making or issuing any press release or other public announcement or
      disclosure of Business Information that is not Confidential Information, a
      JV
      Participant shall first consult with the other JV Participant as to the content
      and timing of such announcement or disclosure. If the other Party from whom
      such
      approval is requested has not approved or has not reasonably refused such
      request within 3 days of receiving such request, such other Party shall be
      deemed to have approved the press release or public statement forming the
      subject matter of such request.

     

    ARTICLE
      XXI  

     

    GENERAL
      PROVISIONS

     

    21.1  Notices.
      All
      notices, payments and other required or permitted communications (“Notices”)
      to the
      Parties shall be in writing, and shall be addressed respectively as
      follows:

     

    If
      to the
      U.S. Energy Group: 

     

                877
      North
      8th
      West

                Riverton,
      WY
      82501

                Attention: Mark
      Larsen, President

                Telephone: (307)
      856-9721

                Facsimile: (307)
      856-3050

     

    With
      a
      Copy to: 

     

                U.S.
      Energy Corp.

                877
      North
      8th
      West,

                Riverton,
      WY
      82501

                Attention: Steve
      Youngbauer, General Counsel

                Telephone: (307)
      856-9721

                Facsimile: (307)
      856-3050

     

                -and-

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -52-

      

    

     

     

                Davis,
      Graham &
Stubbs LLP

                1550
      Seventeenth
      St.

                Suite
      500

                Denver,
      CO
      80206

                Attention: Scot
      Anderson, Esq.

                Telephone: (303)
      892-7383

                Facsimile: (303)
      893-1379

     

    

     

    If
      to
      Kobex Resources Ltd.:

     

                Kobex
      Resources

                1700
      - 700 West
      Pender Street

                Vancouver,
      BC V6C
      1G8

                Attention: H.
      Leo
      King, President 

                Telephone: (604)
      484-6228

                Facsimile: (604)
      688-9336

     

    With
      a
      Copy to:

     

                Aydin
      Bird Business
      Lawyers

                530
      North Office
      Tower

                650
      West
      41st
      Avenue

                Vancouver,
      BC V5Z
      2M9

                Attention: Geoff
      Bird

                Telephone: (604)
      267-2826

                Facsimile: (604)
      266-3929

     

    All
      Notices shall be given (a) by personal delivery to the Party, or
      (b) by electronic communication, capable of producing a printed
      transmission, (c) by registered or certified mail return receipt requested;
      or (d) by overnight or other express courier service. All Notices shall be
      effective and shall be deemed given on the date of receipt at the principal
      address if received during normal business hours, and, if not received during
      normal business hours, on the next business day following receipt, or if by
      electronic communication, on the date of such communication. Any Party may
      change its address by Notice to the other Parties.

     

    21.2  Currency.
      All
      references to “dollars”
or
      “$”
herein
      shall mean lawful currency of the United States of America. 

     

    21.3  Headings.
      The
      subject headings of the Parts, Articles and Sections of this Agreement and
      the
      Paragraphs and Subparagraphs of the Exhibits
      to this
      Agreement are included for purposes of convenience only, and shall not affect
      the construction or interpretation of any of its provisions. 

     

    21.4  Waiver.
      The
      failure of any Party to insist on the strict performance of any provision of
      this Agreement or to exercise any right, power or remedy upon a breach hereof
      shall not 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -53-

      

    

     

     

    constitute
      a waiver of any provision of this Agreement or limit such Parties’ right
      thereafter to enforce any provision or exercise any right.

     

    21.5  Modification.
      No
      modification of this Agreement shall be valid unless made in writing and duly
      executed by all Parties.

     

    21.6  Force
      Majeure.
      Except
      for the obligations to make payments when due hereunder, the obligations of
      a
      Party shall be suspended to the extent and for the period that performance
      is
      prevented by any cause, whether foreseeable or unforeseeable, beyond its
      reasonable control, including, without limitation, labor disputes (however
      arising and whether or not employee demands are reasonable or within the power
      of the Party to grant); acts of God; Laws, instructions or requests of any
      government or governmental entity; judgments or orders of any court; inability
      to obtain on reasonably acceptable terms any public or private license, permit
      or other authorization; curtailment or suspension of activities to remedy or
      avoid an actual or alleged, present or prospective violation of Environmental
      Laws; action or inaction by any federal state or local agency that delays or
      prevents the issuance or granting of any approval or authorization required
      to
      conduct Operations beyond the reasonable expectations of the Party seeking
      the
      approval or authorization (including, without limitation, a failure to complete
      any review and analysis required by the National Environmental Policy Act or
      any
      similar state law within thirty-six (36) months of initiation of that process);
      acts of war or conditions arising out of or attributable to war, whether
      declared or undeclared; riot, civil strife, insurrection or rebellion; fire,
      explosion, earthquake, storm, flood, sink holes, drought or other adverse
      weather condition; delay or failure by suppliers or transporters of materials,
      parts, supplies, services or equipment or by contractors’ or subcontractors’
shortage of, or inability to obtain, labor, transportation, materials,
      machinery, equipment, supplies, utilities or services; accidents; breakdown
      of
      equipment, machinery or facilities; actions by native rights groups,
      environmental groups, or other similar special interest groups; or any other
      cause whether similar or dissimilar to the foregoing. The affected Party shall
      promptly give notice to the other Party of the suspension of performance,
      stating therein the nature of the suspension, the reasons therefore, and the
      expected duration thereof. The affected Party shall resume performance as soon
      as reasonably possible. During the period of suspension the obligations of
      both
      JV Participants to advance funds pursuant to Section 10.2
      shall be
      reduced to levels consistent with then current Operations.
      For the
      avoidance of doubt, this Section 21.7 does not relieve Kobex of its obligation
      to make Option Payments pursuant to the schedule described in Section 6.1 in
      order to retain the Option to earn an interest in the Property, does not relieve
      Kobex to keep the Property in good standing, and does not relieve Kobex from
      continuing to fund the operation and maintenance of the Facility. 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -54-

      

    

     

     

    21.7  Rule
      Against Perpetuities.
      The
      Parties do not intend that there shall be any violation of the rule against
      perpetuities, the rule Against unreasonable restraints on the alienation of
      property, or any similar rule. Accordingly, if any right or option to acquire
      any interest in the Property, in a Participating Interest, in the Assets, or
      in
      any real property exists under this Agreement, such right or option must be
      exercised, if at all, so as to vest such interest within time periods permitted
      by applicable rules and law. If, however, any such violation should
      inadvertently occur, the Parties hereby agree that a court shall reform that
      provision in such a way as to approximate most closely the intent of the Parties
      within the limits permissible under such rules. 

     

    21.8  Further
      Assurances.
      Each of
      the Parties shall take, from time to time and without additional consideration,
      such further actions and execute such additional instruments as may be
      reasonably necessary or convenient to implement and carry out the intent and
      purpose of this Agreement or as may be reasonably required by lenders in
      connection with Project Financing.

     

    21.9  Entire
      Agreement; Successors and Assigns.
      This
      Agreement contains the entire understanding of the Parties and supersedes all
      prior agreements and understandings between the Parties relating to the subject
      matter hereof. This Agreement shall be binding upon and inure to the benefit
      of
      the respective successors and permitted assigns of the Parties. 

     

    21.10  Memorandum.
      At the
      request of any Party, a Memorandum or short form of this Agreement, or a
      Financing Statement(s) (to which copies of the Memorandum or short form of
      this
      Agreement shall be attached) shall be prepared by the Manager, executed and
      acknowledged by the Parties, and delivered to the Manager for recording and
      filing in those appropriate recording districts and Uniform Commercial Code
      filing offices as may be necessary to provide constructive notice of this
      Agreement and the rights and obligations of the Parties hereunder. The Manager
      shall record and file in the proper recording districts, county recording
      offices and Uniform Commercial Code filing offices, all such documents delivered
      to it by the Parties. Unless the Parties agree, this Agreement shall not be
      recorded.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -55-

      

    

     

     

    21.11  Counterparts.
      This
      Agreement may be executed in any number of counterparts, and it shall not be
      necessary that the signatures of all the Parties be contained on any
      counterpart. Each counterpart shall be deemed an original, but all counterparts
      together shall constitute one and the same instrument. 

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      Effective Date.

    

    
      	
              U.S.
                MOLY CORP.

            
	 	 
	
              Per:

            	   
/s/
              Mark J. Larsen
	 	
              President

            

    

    

    
      	
              U.S.
                ENERGY CORP.

            
	 	 
	
              Per:

            	   
/s/
              Mark J. Larsen
	 	
              President

            

    

    

    
      	
              CRESTED
                CORP.

            
	 	 
	
              Per:

            	   
/s/
              Keith G. Larsen
	 	
              Co-Chair

            

    

    

    
      	
              KOBEX
                RESOURCES LTD.

            
	 	 
	
              Per:

            	   
/s/
              Roman Shklanka
	 	
              Chairman

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