Document:

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                                                                    EXHIBIT 4.16

                     PERPETUAL BANK, A FEDERAL SAVINGS BANK
                          EMPLOYEE STOCK OWNERSHIP PLAN

                  UNDER SECTIONS 401(a) AND 4975(e)(7) OF THE
                    INTERNAL REVENUE CODE OF 1986, AS AMENDED

                         EFFECTIVE DATE: JANUARY 1, 1993

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                                    ADOPTION

                                       OF

                     PERPETUAL BANK, A FEDERAL SAVINGS BANK
                         EMPLOYEE STOCK OWNERSHIP PLAN

         The Board of Directors of Perpetual Bank, a Federal Savings Bank (the
"Company"), has, on Oct 15, 1993, adopted this Employee Stock Ownership Plan
("Plan"), attached hereto and made a part hereof. The Company intends this Plan
and the Trust to be a qualified stock bonus plan under Section 401(a) of the
Code and an employee stock ownership plan within the meaning of Section 407 (d)
(6) of ERISA and Section 4975(e)(7) of the Code. The Plan is intended to have
its assets invested primarily in qualifying employer securities of one or more
employers within the meaning of Section 407(d)(3) of ERISA, and to satisfy any
requirement under ERISA or the Code applicable to such a plan. Accordingly, the
Plan and Trust Agreement shall be interpreted and applied in a manner consistent
with this intent and shall be administered at all times and in all respects in a
nondiscriminating manner.

         IN WITNESS WHEREOF, the Company has caused this Plan to be adopted and
has accepted the duties and responsibilities of Plan Administrator pursuant to
the Employee Retirement Income Security Act of 1974, as amended ("ERISA") this
15 th day of Oct , 1993

                                             PERPETUAL BANK, A FEDERAL
                                               SAVINGS BANK

                                             By: Robert W. Orr
                                                 ---------------------------
                                                 Robert W. Orr, President and
                                                  Managing Officer

                                             ATTEST:

                                             By: Sylvia B. Reed
                                                 ---------------------------
                                                 Sylvia B. Reed, Secretary

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                                     Part I

                               Table of Contents

<TABLE>
<CAPTION>
            Section Number                        Page
            --------------                        ----
<S>                                               <C>
1.  Definitions                                     1
2.  Eligibility                                    13
3.  Employer Contributions                         15
4.  Participants' Contributions                    17
5.  Allocation of Contributions                    17
6.  Allocation to Participants' Accounts           21
7.  Retirement                                     24
8.  In the Event of Disability                     29
9.  In the Event of Death                          30
10. In The Event of Termination of
    Employment or Change in Status                 31
11. Top Heavy Definitions and Rules                35
12. Administration of the Plan                     45
13. Management and Investment of Trust Assets      47
14. Obligations of the Employer                    50
15. Miscellaneous                                  50
16. Amendments                                     52
17. Suspension and Discontinuance                  53
18. Inclusion of Other Companies                   54
</TABLE>

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                                    SECTION 1

                                   Definitions

The following words and phrases used herein have the following meanings, unless
a different meaning is plainly required by the context:

1.1      "Account" means the record of the Participant's interest in the Trust
         Fund, maintained by the Committee pursuant to Section 5.

1.1.1    "Anniversary Date" shall mean the last date of the Plan Year.

1.1.2    "Beneficiary" means the person or persons who are designated by a
         Participant to receive benefits payable under the Plan on the
         Participant's death. In the absence of any designation or if all the
         designated Beneficiaries shall die before the Participant dies or shall
         die before all benefits have been paid, the Participant's Beneficiary
         shall be his surviving spouse, if any, or his estate if he is not
         survived by a spouse. The Committee may rely upon the advice of the
         Participant's executor or administrator as to the identify of the
         Participant's spouse.

1.2      "Board of Directors" means the Board of Directors of the Company.

1.2.1    "Code" shall mean the Internal Revenue Code of 1986, as amended,
         together with regulations promulgated pursuant thereto.

1.3      "Committee" or "Administrative Committee" means the board appointed to
         manage and administer the Plan as provided in Section 12.

1.4      "Company" means Perpetual Bank, a Federal Savings Bank or successor
         entity that adopts this Plan and the corresponding Trust Agreement.

1.5      "Compensation" means the amount of the regular wages or salary, paid to
         an Employee by the Employer within a Plan Year beginning from the
         Employee's effective date of participation. Employer contributions for
         pensions, profit sharing or insurance benefits are excluded from
         compensation. Compensation shall include all elective contributions
         made by the Employer on behalf of the Employee that are not currently
         includable in the gross income of the Employee by reason of Sections
         125,

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         402(a)(8) or 402(b)(1). Only the first $200,000 (or such larger amount
         as determined by regulations under 415(d) and 416 of the Code) of the
         Participant's annual compensation shall be treated as Compensation for
         purposes of the Plan.

1.6      "Determination Date" means:

         (a)      the last day of the preceding Plan Year, or

         (b)      in the case of the first Plan Year, the last day of such Plan
         Year.

1.6.1    "Disability" means only a disability which renders the Participant
         totally unable, as a result of bodily or mental disease or injury, to
         perform any duties for an Employer for which he is reasonably fitted,
         which disability is expected to be permanent or of long and indefinite
         duration. However, this term shall not include any disability directly
         or indirectly resulting from or related to habitual drunkenness or
         addiction to narcotics, a criminal act or attempt, service in the armed
         forces of any country, an act of war, declared or undeclared, any
         injury or disease occurring while compensation to the Participant is
         suspended, or any injury which is intentionally self-inflicted.
         Further, this term shall apply only if (i) the Participant is
         sufficiently disabled to qualify for the payment of disability benefits
         under the federal Social Security Act or Veterans Disability Act, or
         (ii) the Participant's disability is certified by a physician selected
         by the Committee. Unless the Participant is sufficiently disabled to
         qualify for disability benefits under the federal Social Security Act
         or Veterans Disability Act, the Committee may require the Participant
         to be appropriately examined from time to time by one or more
         physicians chosen by the Committee, and no Participant who refuses to
         be examined shall be treated as having a Disability. In any event, the
         Committee's good faith decision as to whether a Participant's Service
         has been terminated by Disability shall be final and conclusive.

1.6.2    "Early Retirement Date" means the date coinciding with or following the
         date on which a Participant or Former Participant attains the age of
         59 1/2 and has completed at least 10 Years of Service with the Employer
         (Early Retirement Age). A Participant shall become fully Vested upon
         satisfying the later of the above requirements if still employed at his
         Early Retirement Age.

         A Former Participant who terminates employment after satisfying the
         service requirement for Early Retirement

                                        2

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         and who thereafter reaches the age requirement contained herein shall
         be entitled to receive his benefits under this Plan.

1.7      "Effective Date" of the Plan means January 1, 1993.

1.7.1    "Eligible Employee" means any Employee who has satisfied the provisions
         of Section 2.1.

1.8      "Employee" shall mean any person who (a) is in the employment of the
         Employer, (b) whose wages from the Employer are subject to withholding
         for the purposes of Federal Income Taxes and the Federal Insurance
         Contribution Act. Employee shall mean any employee of the employer
         maintaining the plan or any other employer required to be aggregated
         under Section 414(b), (c), (m) or (o) of the Code.

         Employee also means an individual employed by a leasing organization
         who, pursuant to an agreement between an Employer and the leasing
         organization, has performed services for the Employer and any related
         persons (within the meaning of Section 414(n)(6) of the Code) on a
         substantially full-time basis for more than one year, if such services
         are of a type historically performed by employees in the Employer's
         business field. However, such a "leased employee" shall not be
         considered an Employee if (i) he participates in a money purchase
         pension plan sponsored by the leasing organization which provides for
         immediate participation, immediate full vesting, and an annual
         contribution of at least 10 percent of the Employee's Total
         Compensation, and (ii) leased employees do not constitute more than 20
         percent of the Employer's total work force (including leased employees,
         but excluding Highly Compensated Employees and any other employees who
         have not performed services for the Employer on a substantially
         full-time basis for at least one year).

         Employee shall not include (a) any person who is paid by the Employer
         as an independent contractor, (b) any person who is included in a unit
         of employees covered by an agreement which the Secretary of Labor finds
         to be a collective bargaining agreement between employee
         representatives and one or more companies, including the Employer, if
         there is evidence that retirement benefits were the subject of good
         faith bargaining between such employee representatives and the Employer
         or such companies. For this purpose, "Employee Representatives" will
         not include any organization more than half of whose members are
         Employees who are owners, officers, or executives of the Employer.

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1.8.1    "Employer" shall mean the Company and any company which is now, or
         shall in the future, be a subsidiary or affiliated company of the
         Company and which adopts this Plan.

1.9      "Entry date" means the first semi-annual date, January 1st or July 1st,
         after satisfying the eligibility requirement in Section 2.1.
         Additionally, the Committee may authorize a special entry date at any
         time for eligible participants, such as enrollment of all eligible
         participants following adoption of this Plan, but prior to the next
         regularly scheduled Entry Date.

1.9.1    "Exempt Loan" means a loan made to the Plan by a disqualified person or
         a loan to the Plan which is guaranteed by a disqualified person and
         which satisfies the requirements of Section 2550.408b-3 of the
         Department of Labor Regulations, Section 54.4975-7(b) of the Treasury
         Regulations and the Trust Agreement.

1.9.2    "Forfeiture" shall mean that portion of a Participant's Account that is
         not vested, and occurs on the earlier of (a) the distribution of the
         entire vested portion of a Participant's Account, or (b) the last day
         of the Plan Year in which the Participant incurs five (5) consecutive
         1-year Breaks in Service. The term "Forfeiture" shall also mean all
         amounts forfeited and/or reimbursed pursuant to section 15.8.

1.10     "Key Employee" shall mean any employee or former employee (and the
         beneficiaries of such employee) who at any time during the
         determination period was (a) an officer of the Employer if such
         individual's annual compensation exceeds 50 percent of the dollar
         limitation under Section 415(b)(1)(A) of the Code, (b) an owner (or
         considered an owner under Section 318 of the Code) of both more than a
         1/2 percent interest as well as one of the ten largest interests in the
         Employer if such individual's compensation exceeds 100 percent of such
         dollar limitation, (c) a five-percent owner of the Employer, or (d) a 1
         percent owner of the Employer who has an annual compensation of more
         than $150,000. The determination period is one Plan Year containing the
         determination date and the four preceding Plan Years.

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

1.11     "Limitation Year" means the Plan Year.

                                        4

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1.12     "Loan Suspense Account" shall mean an account in which Qualifying
         Employer Securities are held and which have not been allocated to
         Participants' Accounts because they were purchased with borrowed funds
         pursuant to the provisions of Section 13.4 hereof or transferred to
         such account pursuant to the terms hereof.

1.13     "Non-Key Employee" is an Employee who is not a Key Employee. Non-Key
         Employees shall include Employees who are former Key Employees.

1.13.1   "Late Retirement Date" means the Anniversary Date coinciding with or
         next following a Participant's actual Retirement Date after having
         reached his Normal Retirement Date.

1.14     "Normal Retirement Age" shall mean the date a Plan participant, if
         still an Employee, attains at least age 65.

1.15     "Normal Retirement Date" shall mean the first day of the month
         coincident with, or next following, the date upon which a Participant
         attains his Normal Retirement Age.

1.16     "Participant" means an Employee who is included in the Plan as provided
         in Section 2.1.

1.17     "Participant's Account" means a separate account, maintained in the
         aggregate by the Committee, for each Participant with respect to his
         total interest in the Plan and Trust.

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

1.19     "Plan" means the Employee Stock Ownership Plan ("ESOP") as set forth
         herein meeting the requirements of Code Section 4975(e)(7) and
         Regulation 54.4975-11, as they may hereafter be amended from time to
         time.

1.20     "Plan Year" means the 12 month period ending December 31 of each year.

1.21     "Pregnancy or Child Care Leave of Absence" shall mean, with respect to
         a Plan Year commencing on or after July 1, 1984, a compensated or
         uncompensated leave of absence of fixed or indefinite duration granted
         to an Employee by the Employer pursuant to a written request which is
         submitted to the Employer by the Employee no later than

                                        5

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         thirty (30) days prior to the first day of the proposed leave of
         absence that is sought because of the pregnancy of the Employee,
         because of the birth of a child of the Employee, because of the
         Placement of a child with the Employee in connection with the adoption
         of such child by such Employee or for the purpose of enabling the
         Employee to care for a child for a period beginning immediately after
         the birth of such child to the Employee or the placement of such child
         with the Employee, for an absence of not more than two (2) consecutive
         calendar years in duration which, upon his or her return to the employ
         of the Employer, the Employee demonstrates to the satisfaction of the
         Employer to have been for one of the four (4) aforementioned purposes.

1.22     "Qualified Domestic Relations Order" shall mean a judgment, decree or
         order (including an approval of a property settlement agreement) that
         relates to the provision of child support and/or alimony payments or
         marital property rights to a Spouse, former Spouse, child or other
         dependent of a Participant, that is made pursuant to a domestic
         relations law (including a community property law) of a state, that
         creates or recognizes the right of an alternative payee, or assigns to
         an alternative payee the right, to receive all or a portion of the
         Benefit payable to the Participant under the Plan, that sets forth the
         specific information required by Section 414(p)(2) of the Code to be
         included therein and that does not alter the amount or form of the
         Benefit otherwise payable to the Participant under the Plan.

1.23     "Required Aggregation Group" means all plans of the Employer in which a
         Key Employee is a participant (in the Plan Year containing the
         Determination Date or any of the four preceding Plan Years) and all
         plans that enable such plan to satisfy the coverage and
         anti-discrimination requirements of Section 401(a)(4) or 410(b) of the
         Code. All employers aggregated under Section 414(b), (c) or (m) are
         considered a single employer for the purposes of this plan. The
         Required Aggregation Group shall include any terminated plan of the
         Employer if it was maintained within the last five (5) years ending on
         the Determination Date.

1.24     "Service" means any computation period during which an employee was in
         the employment of the Company or any period for which credit is
         required to be given pursuant to Section 414 of the Code with respect
         to one or more predecessor or affiliated entities of the Company. It
         shall include any period during which an Employee is on leave of
         absence authorized by his Employer in accordance

                                        6

<PAGE>

         with the provisions of this section. All leaves of absence shall be
         granted in a uniform and non-discriminatory manner to all Employees in
         similar circumstances.

         (a)      Any Participant who leaves the active Service of the Employer
                  to enter the Armed Forces of the United States of America
                  during a period of national emergency or compulsory military
                  service law of the United States of America shall be deemed to
                  be on leave of absence during the period of his service in
                  such Armed Forces and during any period after his discharge
                  from such Armed Forces in which his re-employment rights are
                  guaranteed by law.

         (b)      "Year of Service" shall mean any computation period during
                  which an Employee has one thousand (1,000) or more Hours of
                  Service as described in Paragraph 1.24(g).

         (c)      "Hour of Service" shall mean each hour for which an Employee
                  is directly or indirectly paid or entitled to payment by the
                  Employer for the performance of duties for the Employer. These
                  hours shall be credited to the Employee for the computation
                  period or periods in which the duties are performed.

                  Each hour for which an Employee is paid, or entitled to
                  payment, by the Employer 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 leave of absence. No more than
                  501 hours of Service shall be credited under this paragraph
                  for any single continuous period (whether or not such period
                  occurs in a single computation period). Hours under this
                  paragraph shall be calculated and credited pursuant to Section
                  2530.200b-2 of the Department of Labor Regulations which are
                  incorporated herein by this reference.

                  Each hour of service for which back pay, irrespective of
                  mitigation of damages, is either awarded or agreed to by the
                  Employer shall be credited to the Employee for the computation
                  period or periods to which the award or agreement pertains
                  rather than the computation period in which the award,
                  agreement, or payment is made.

                                        7

<PAGE>

                  For purposes of Hours of Service credited for periods during
                  which no duties were performed, the method of determining the
                  number of hours to be credited and the method of crediting
                  such hours to the Computation period shall conform to the
                  requirements set forth in Dept. of Labor Regs. Secs.
                  2530.200(b)-2(b) and (c).

                  Hours of Service will be credited for employment with other
                  members of an affiliated service group (under Section 414(m)),
                  a controlled group of corporations (under Section 414(b)), or
                  a group of trades or businesses under common control (under
                  Section 414(c)), of which the adopting Employer is a member.

                  Hours of Service will also be credited for any individual
                  considered an Employee under Section 414(n).

                  Solely for purposes of determining whether a Break in Service
                  for participation and vesting purposes has occurred in a
                  computation period, an individual who is absent from work for
                  maternity or paternity reasons shall receive credit for the
                  Hours of Service which would otherwise have been credited to
                  such individual, but for such absence, or in any case in
                  which such hours cannot be determined, eight (8) hours of
                  Service per day of such absence. For purposes of this
                  paragraph, an absence from work for maternity or paternity
                  reasons means an absence (a) by reason of the pregnancy of the
                  individual, (b) by reason of a birth of a child of the
                  individual, (c) by reason of the placement of a child with the
                  individual in connection with the adoption of such child by
                  such individual, or (d) for purposes of caring for such child
                  for a period beginning immediately following such birth or
                  placement. The Hours of Service credited under this paragraph
                  shall be credited (a) in the computation period in which the
                  absence begins if the crediting is necessary to prevent a
                  Break in Service in that period, or (b) in all other cases, in
                  the following computation period.

         (d)      "Benefit Accrual Computation Period" shall be defined as the
                  Plan Year.

         (e)      "Vesting Computation Period" shall be the Plan Year.

                                       8
<PAGE>

         (f)      Except as otherwise provided above, any year in which an
                  Employee works more than five hundred (500) Hours of Service,
                  but less than one thousand (1,000) Hours of Service shall not
                  be recognized as Service, but this shall not be a Break in
                  Service. Any computation period in which an Employee works
                  five hundred (500) Hours of Service or less, shall constitute
                  a Break in Service.

         (g)      Year of Service: A Year of Service for purposes of determining
                  an Employee's Eligibility to Participate in the Plan shall be
                  defined as a twelve consecutive month period during which the
                  Employee completes at least 1,000 Hours of Service. The
                  initial eligibility computation period is the twelve
                  consecutive month period beginning on the date the Employee
                  first performs an Hour of Service for the Employer. Succeeding
                  eligibility computation periods shall commence with the first
                  plan year which commences prior to the first anniversary of
                  the Employee's initial eligibility computation period
                  regardless of whether the Employee is entitled to be credited
                  with 1,000 hours of Service curing his initial eligibility
                  computation period. For vesting purposes, an Employee will be
                  credited with Years of Service from the date the Employee
                  first performs an Hour of Service for the Employer.

         (h)      In the event that an Employee who incurred a Break in Service
                  is subsequently re-employed, his Years of Service shall be
                  cumulative for vesting purposes, except that if the Employee,
                  at the time of his Break in Service, had no vested interest
                  and the number of consecutive One-Year Breaks in Service
                  equals or exceeds the greater of five or the number of
                  pre-break Years of Service, Years of Service prior to such
                  Breaks in Service shall be disregarded. The same provision
                  shall apply in the case of an Employee whose Service has been
                  broken because he worked less than five-hundred (500) hours in
                  a given year when he resumes working at least one thousand
                  (1,000) hours per year.

         (i)      All services with any employer aggregated under Section
                  414(b), (c), or (m) of the Code will be considered Service
                  with the Employer maintaining the Plan. In case of an
                  individual deemed under Section 414 (n) of the Code to be the
                  Employee of any Employer described in the previous sentence,
                  Service with such Employer must be credited to such
                  individual.

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<PAGE>

1.25     "Spouse" shall mean the lawful husband or wife of a Participant on the
         date specified.

1.26     "Super Top-Heavy" shall mean a Top-Heavy Plan under which the present
         value of accrued benefits and account balances for all Key Employees
         exceeds 90% of the present value of accrued benefits and account
         balances for all Employees.

1.27     "Taxable Year" means, with respect to each employing Employer
         participating in the Plan, the calendar or fiscal year as may be
         adopted by such Employer from time to time for Federal income tax
         purposes. The Taxable Year of the Plan and Trust shall be the Plan
         Year.

1.28     "Top-Heavy Plan" shall mean a plan (including plans of the Required
         Aggregation Group) in which the ratio of Account balances for Key
         Employees to the accounts for all Employees (including beneficiaries
         but excluding former key Employees) exceeds 60%. All distributions that
         were made during the five year period ending on the most recent
         Determination Date must be taken into account. Also Employee
         contributions, whether mandatory or voluntary, must be taken into
         account except for deductible Employee contributions. In the event
         there is more than one plan, the Top-Heavy ratios shall be consolidated
         by adding together the numerator and then adding together the
         denominator to form one ratio.

1.29     "Total Disability" means a physical or mental condition of a
         Participant resulting from bodily injury, disease, or mental disorder
         which renders him incapable of continuing any gainful occupation and
         which condition constitutes total disability under the Federal Social
         Security Acts.

1.30     "Trust Fund" means the fund or funds described in Section 13, and
         maintained in accordance with the terms of the Trust Agreement or
         Agreements set forth in Part II of this Plan or otherwise created by
         the Board.

1.30.1   "Trustee(s)" shall mean the person(s), or corporation(s), accepting
         the appointment of Trustee(s) and acting as such, including any
         successor Trustee(s), pursuant to the Trust Agreement or Agreements.

1.31     "Valuation Date" means the last day of the Taxable Year of the Trust
         Fund. The fair market value of the assets in the Trust Fund as of any
         valuation date shall be determined as of the close of business on such
         date, or, if such date is not a business day, as of the close of
         business on the next preceding business day. On the

                                       10
<PAGE>

         Valuation Date the Account balances are valued to determine if the Plan
         is Top-Heavy. The Valuation Date shall also be the Determination Date
         for Top-Heavy Plan calculations.

1.32     The masculine pronoun wherever used shall include the feminine pronoun
         and the singular shall include the plural.

1.33     "Qualifying Employer Securities" or "Company Stock" shall mean the
         shares of common stock of the Employer as described in Section
         4975(e)(8) of the Code (or of a corporation which is a member of a
         controlled group with the Employer) which is readily tradeable on an
         established securities market; or if not readily tradeable, meets the
         following criteria:

         (a)      is a 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 that class of common stock having the greatest
                  voting power, and

         (b)      that class of common stock having the greatest dividend
                  rights.

                  Noncallable preferred stock shall be deemed to be "Qualifying
                  Employer Securities" if such stock is convertible at any time
                  into stock which constitutes "Qualifying Employer Securities"
                  hereunder and if such conversion is at a conversion price
                  which (as of the date of the acquisition by the Trust) is
                  reasonable.

1.34     "Acquisition Loan" shall mean an Exempt Loan (or other extension of
         credit) used by the Trust to finance the acquisition of Qualifying
         Employer Securities which loan may constitute an extension of credit to
         the Trust from a party in interest.

1.35     "Financed Shares" shall mean shares of Qualifying Employer Securities
         acquired by the Trust with the proceeds of an Acquisition Loan,
         whether or not pledged as collateral to secure the repayment of such
         Acquisition Loan.

1.36     "Total Distribution" shall mean a distribution to a Participant or a
         Participant's beneficiary, within one taxable year of such recipient,
         of the entire balance to the credit of the Participant.

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<PAGE>

1.37     "Other Investments Account" shall mean the account of a Participant
         which reflects his interest in the Plan attributable to trust assets
         other than Qualifying Employer Securities.

1.38     "Participant's Company Stock account" shall mean the Participant's
         account credited with Qualifying Employer Securities.

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

1.40     "ESOP" shall mean an Employee Stock Ownership Plan as defined in
         Section 4975(e)(7) of the Code.

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

1.42     "Qualified Election Period" shall mean the six Plan Year period
         beginning with the Plan Year after the Plan Year in which the
         Participant first becomes a Qualified Participant.

1.43     "Highly compensated Employee" shall mean an Employee who during the
         Year or the preceding year was at any time a five percent owner of the
         Employer (as defined in Code Section 416(i)(1)(3)(i); received
         Compensation from the Employer in excess of $75,000; received
         Compensation from the Employer in excess of $50,000 and was a member of
         the group of the top twenty percent of the Employees when ranked on the
         basis of Compensation; or was at anytime an officer and received
         Compensation greater than fifty percent (50%) of the amount in effect
         under Code Section 415(b)(1)(A) for the year.

1.44     "Family Member" shall mean an Employee who is the Employee's spouse,
         lineal ascendant or descendant, or spouse of such lineal ascendant or
         descendant, of an Employee who is a five percent owner of the Employer,
         or if not a five percent owner is a Highly Compensated Employee as
         defined in 1.43 of the Plan and is also in the group consisting of the
         ten (10) Highly Compensated Employees paid the greatest Compensation
         during the Year.

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<PAGE>

1.45     "Unallocated Company Stock Suspense Account" means an account
         containing Qualifying Employer Securities acquired with the proceeds of
         an Exempt Loan and which has not been released from such account and
         allocated to the Participants' Accounts.

1.46     "Non-Highly Compensated Employee" shall mean an Employee who is neither
         a Highly Compensated Employee nor a Family Member of a Highly
         Compensated Employee.

1.47     "Suspense Account" means the total forfeitable portion of all Former
         Participants' Accounts which has not yet become a Forfeiture during any
         Plan Year.

                                    SECTION 2

                                   Eligibility

         Eligibility Rules

2.1      Every Employee of the Employer shall become a Participant, if still an
         Employee, on the earlier of the Plan Effective Date or on the Entry
         Date as defined in Section 1.9 following:

         (a)      His attainment of age 21, and

         (b)      His completion of one (1) Year of Service for eligibility
                  purposes.

         A rehired Employee who was a former Participant, shall become a
         Participant upon his date of rehire.

         Notwithstanding the foregoing, no Employee shall participate in the
         Plan while he is actually employed by a leasing organization rather
         than the Employer.

2.2      A Participant shall be entitled to participate in the allocation of the
         Employer Contribution for the plan year in which he becomes a
         Participant. A Participant shall not be entitled to any interest in the
         Employer's Contribution for any plan year in which his Service shall
         have terminated for any reason prior to the last day of the plan year,
         except in the case of retirement, death or total disability.

2.3      Within sixty (60) days after the last day of the Plan Year, the
         Employer shall certify to the Committee in) writing such information
         from its records with respect to

                                       13
<PAGE>

         Employees as the Committee may require in order to determine the
         identity and interests of the Participants and otherwise to perform its
         duties hereunder.

         Any certification by the Employer of information to the Committee
         pursuant to this Plan shall, for all purposes of this Plan, be binding
         on all parties in interest, provided that whenever any Employee proves
         to the satisfaction of the Employer that his period of Service or his
         Compensation as so certified is incorrect, the Employer shall correct
         such certification. The Service of any Employee shall be determined
         solely by reference to the data certified to the Committee by the
         Employer.

         The determination of the Committee as to the identity of the respective
         Participants and as to their respective interests shall be binding upon
         the Employer, the Trustees, the Employees, the Participants and all
         Beneficiaries.

2.4      Whenever any Participant is transferred from one Employer who is a
         party to the Plan to another Employer who is party to the Plan, the
         Participant may continue on as a Participant in the Plan without any
         interruption as if the Participant had at all times been an Employee of
         the new employer; and in the event an affiliated company ceases to be
         an affiliated company for any reason whatsoever, has event shall not
         affect the continued participation in this Plan of any Participant who
         becomes an Employee of the Employer or any other affiliated company
         under this Plan, and the Committee shall transfer the Participant's
         account from the account of the withdrawing affiliated company to the
         Employer or new affiliated company. Affiliated company for the purposes
         of this section and elsewhere herein is defined as a company within a
         "Controlled Group of Corporations" as defined in Section 1563(a) of the
         Code.

         Cessation of Active Participation

2.5      A Participant who terminates employment with the Employer or suffers a
         Break-in-Service shall cease to be an active Participant in this Plan
         and his Employer contribution account shall be placed on inactive
         status. In such case, the inactive Participant shall not share in the
         Employer's contribution for that Plan year, but his accounts shall
         continue to receive income (loss) allocations. Thus, he shall remain a
         participant until his account balances have been distributed to him.
         Termination of employment may have resulted from voluntary or
         involuntary termination of employment, unauthorized absence, or by
         failure to return to active

                                       14
<PAGE>

         employment with the Employer by the date on which an Authorised Leave
         of Absence expired.

         Excluded Employees

2.6      An Employee shall not participate in the Plan if he is included in a
         unit of employees covered by an agreement which the Secretary of Labor
         finds to be a collective bargaining agreement between employee
         representatives and one or more companies, including the Employer, if
         there is evidence that retirement benefits were the subject of good
         faith bargaining between such employee representatives and the
         Employer. For this purpose, "Employee Representatives" will not include
         any organization more than half of whose members are Employees who are
         owners, officers, or executives of the Employer.

                                    SECTION 3

                             Employer Contributions

         Amount of Employer Contributions

3.1      (a)      The amount to be contributed by the Employer shall be
                  determined annually by resolution of the Board of Directors of
                  the Company, but not in excess of the maximum amount
                  deductible under the applicable provisions of Section 404 of
                  the Internal Revenue Code as in effect for such year.

         (b)      The Committee shall maintain a separate Account for each
                  Participant, to which it shall credit the Participant's share
                  of the Employer contributions in accordance with Section 5,
                  and which shall be revalued in accordance with Section 6.

         (c)      The fact that the Employer may make no contribution hereunder
                  for any Taxable Year shall not be deemed to terminate the Plan
                  or the Trust created hereunder.

         Payment of Employer Contributions

3.2      (a)      The Employer's contributions for each Taxable Year shall
                  be paid directly to the Trustees. At the time of each such
                  payment, the Employer shall notify the Committee of the amount
                  of such contribution.

                                       15
<PAGE>

                  The Employer's contribution for any taxable year shall be paid
                  in full as soon as practicable after the close of such year,
                  but not later than the time prescribed by law for filing the
                  Employer's Federal income tax return for such year (including
                  extensions thereof).

         (b)      Employer contributions will be paid in cash or Qualifying
                  Employer Securities as the Company's Board of Directors may
                  from time to time determine.

                  Shares of Qualifying Employer Securities will be valued at
                  their then fair market value. However, to the extent that the
                  Trust has current obligations, including amounts necessary to
                  provide sufficient cash to pay any currently maturing
                  obligations under an Acquisition Loan the Employer
                  contributions will be paid to the Trust in cash subject to the
                  discretion of the Company's Board of Directors. The Employer
                  contribution will be paid to the Trust on or before the date
                  required to make such contribution qualify as a deduction on
                  the Employer's Federal Income Tax Return for the year.

         (c)      The Employer may make contributions to the Plan in whole or in
                  part in the form of Qualifying Employer Securities, provided
                  the Employer uses the fair market value of the securities as
                  of the date such contribution is made, as determined by an
                  independent appraiser meeting requirements similar to the
                  requirements of the regulations prescribed under Sections
                  170(a)(l) and 401(a)(28)(C) of the Code engaged by the
                  Committee. Such stock may be obtained from its own reserve or
                  treasury stock, or it may be obtained from the open market.

         Payment of Administrative Expenses

3.3      The Employer also intends to provide all funds required for the
         administrative expenses of the Plan.

         Mistake in Fact

3.4      If, due to a mistake in fact, the Employer contributions to the trust
         funds made by the Employer for any Plan Year exceeds the amount to be
         contributed by it, notwithstanding any provision to the contrary, the
         Committee shall direct the Trustee, as soon as such a mistake in fact
         is discovered, to either segregate such amount and return such amount
         to the Employer within one year after the payment of the contribution
         or apply it towards the contribution of the Employer for the next Plan
         Year(s).

                                       16
<PAGE>

                                    SECTION 4

                           Participants' Contributions

4.1      No Employee Contributions shall be permitted under this Plan.

4.2      The Trustee shall not accept "Rollover Contributions" from any
         Participant.

4.3      The Trustee shall not make any loans to any participant from the Trust
         Fund.

                                    SECTION 5

                           Allocation of Contributions

         Allocation of Contributions

5.1      The Employer contribution for each Plan Year as determined under
         Section 3.1 shall be allocated by the Committee, as of the close of
         such Plan Year, to the Accounts of all Participants as defined in
         Section 2 as follows:

         The Employer contribution and forfeitures as provided in Sections 3.1
         and 10.3, shall be allocated to each such Participant's Account in
         proportion to the ratio which his Compensation, as defined in paragraph
         1.5, for the Plan Year bears to the total Compensation of all such
         Participants for the same period.

5.2      Limitations on Allocations of Contributions

         Compensation for purposes of this Section 5.2 and 5.3 shall mean the
         Participant's wages, salaries, fees for professional services and other
         amounts received for personal service actually rendered for the
         Employer maintaining the Plan, earned income in the case of an Employee
         described in Section 401(c)(1) of the Code, earned income from sources
         outside the United States (whether or not excludable or deductible),
         certain fringe benefits described in Sections 104(a)(3), 105(a) and
         105(h) of the Code to the extent includable in gross income, certain
         moving expense reimbursements to the extent not deductible by the
         Participant, and the value of a non-qualified stock option or the
         amount described in Section 83(b) of the Code to the extent includable
         in gross income.

                                       17
<PAGE>

         Compensation shall not include contributions to a qualified plan, or to
         a simplified employee pension plan to the extent excludable by the
         Employee, nor amounts distributed from a qualified plan of deferred
         compensation, nor amounts realized from the exercise of a non-qualified
         stock option. In addition, certain other amounts which receive
         special tax benefits (such as premiums for group term life insurance
         not includable in the gross income of the Employee) shall not be
         considered compensation.

         Compensation for the purposes of this Section 5.2 and 5.3 for any Plan
         Year which shall consist of less than 12 months shall be reduced
         proportionately by that percentage that the Plan Year is reduced.

         (a)      Contributions and other additions to a Participant's Account
                  cannot exceed the lesser of (1) $30,000, or, if greater, 1/4
                  of the dollar limitation then in effect under Section
                  415(b)(l)(A) of the Code; or (2) 25% of the Section 415
                  Compensation paid to the Participant in that Plan Year.
                  Notwithstanding the foregoing, the 25% of compensation
                  limitation described in the immediately preceding sentence
                  shall not apply to (1) any contribution for medical benefits
                  (within the meaning of Section 40 (h) or Section 419A(f)(2) of
                  the Code) after a participant's separation from service, which
                  contribution is otherwise treated as an annual addition, or
                  (2) any amount otherwise treated as an annual addition under
                  Section 415(1)(1) or Section 419A(d)(2) of the Code. Annual
                  additions to a Participant's Account for purposes of this
                  limitation include in addition to the Employer contribution,
                  any forfeitures allocated to Participant Accounts, and the
                  amount of a Participant's total voluntary elective
                  Contributions, plus any contributions to a similar Employer
                  defined contribution plan, or any amounts described in
                  Sections 415(1)(1) and 419(a) of the Code. The maximum amount
                  of $30,000 shall be increased where allowed under ERISA and
                  Internal Revenue Service regulations issued pursuant thereto,
                  to reflect 25% of the defined benefit dollar limitation set
                  forth in Section 415(b)(l) of the Code as in effect for the
                  limitation year. In determining the above limitations, all
                  defined contribution plans of the Employer shall be considered
                  as one plan. If a Short Limitation Year is created during the
                  first Plan Year or because of an amendment changing the
                  Limitation Year to a different 12 consecutive month period,
                  the maximum

                                       18
<PAGE>

                  permissible amount will not exceed $30,000 (as may be adjusted
                  as provided above) multiplied by the following fraction:
                  (Number of months in the Short Limitation Year) divided by 12.

         (b)      Should not more than one-third of the Employer Contributions
                  for a year which are deductible be allocated to Highly
                  Compensated Employees, the above annual addition limits shall
                  not include contributions which are applied by the Trustee to
                  pay interest on an Acquisition Loan as defined in 1.34 of the
                  Plan and charged to such Participant's account nor any
                  Financed Shares which are allocated as forfeitures.

                  If there should be an excessive annual addition for any
                  Participant's account, the excess shall be held in a suspense
                  account and allocated in the subsequent Plan Year pursuant to
                  Treasury Regulation Section 1.415-6(b)(6)(ii) .

5.3      Multiple Plan Reduction

         (a)      If an Employee is a Participant in one or more defined benefit
                  plans and one or more defined contribution plans maintained by
                  the Employer, the sum of the defined benefit plan fraction and
                  the defined contribution plan fraction for any year may not
                  exceed 1.0. The defined benefit plan fraction for any year is
                  a fraction (1) the numerator of which is the projected "annual
                  benefit" of the Participant under the Plan (determined as of
                  the close of the Plan Year), and (2) the denominator of which
                  is the lesser of: (A) the product of 1.25 multiplied by the
                  maximum dollar limitation in effect under Section 415(b)(l)(A)
                  of the Code for such year, or (B) the product of 1.4
                  multiplied by the amount which may be taken into account under
                  Section 415(b)(l)(B) of the Code for such year.

                  The defined contribution plan fraction for any year is a
                  fraction (1) the numerator of which is the sum of the "annual
                  additions" to the Participant's Account as of the close of the
                  Plan Year and (2) the denominator of which is the sum of the
                  lesser of the following amounts determined for such year and
                  each prior year of service with the Employer: (A) the product
                  of 1.25 multiplied by the dollar limitation in effect under
                  Section 415(c)(l)(A) of the Code for such year (determined
                  without regard to Section 415(c)(6) of the Code), or (B) the

                                       19
<PAGE>

                  product of 1.4 multiplied by the amount which may be taken
                  into account under Section 415(c)(l)(B) of the Code for such
                  year.

         Top-Heavy Plans

         (b)      Notwithstanding the foregoing, for any Top-Heavy Plan Year,
                  1.0 shall be substituted for 1.25 unless the extra minimum
                  allocation pursuant to Section 11.3 is being made. However,
                  for any Plan Year in which this Plan is a Super Top-Heavy
                  Plan, 1.0 shall be substituted for 1.25 in any event.

                  (i)      Special Rule for Defined Contribution Fraction: At
                           the election of the Administrator, in applying the
                           provisions of Section 5.3 with respect to the defined
                           contribution plan fraction for any Plan Year ending
                           after December 31, 1982, the amount taken into
                           account for the denominator for each Participant for
                           all Plan Years ending before January 1, 1983 shall be
                           an amount equal to the product of (a) the amount of
                           the denominator determined under Section 5.4 for Plan
                           Years ending before January 1, 1982, multiplied by
                           (b) the "transition fraction".

                           For purpose of the preceding paragraph, the term
                           "transition fraction" shall mean a fraction (a) the
                           numerator of which is the lesser of (1) $51,875 or
                           (2) 1.4 multiplied by twenty-five percent (25%) of
                           the Participant's compensation for the Plan Year
                           ending in 1981, and (b) the denominator of which is
                           the lesser of (1) $41,500 or (2) twenty-five percent
                           (25%) of the Participant's compensation for the Plan
                           Year ending in 1981.

                  (ii)     Excessive Benefit: If the sum of the defined benefit
                           plan fraction and the defined contribution plan
                           fraction shall exceed 1.0 in any year for any
                           Participant in this Plan, the Employer shall adjust
                           the numerator of the defined contribution plan
                           fraction so that the sum of both fractions shall not
                           exceed 1.0 in any year for such Participant.

                  (iii)    Limitation Year: For purposes of determining "annual
                           additions", the Limitation Year shall be the Plan
                           Year.

                                       20
<PAGE>

                  (iv)     In the case of a group of employers which constitutes
                           either a controlled group of corporations, trades or
                           businesses under a common control (as defined in
                           Section 1563(a) or Section 414(b) as modified by
                           Section 415(h) and Section 414(c) of the Code), or an
                           affiliated service group (as defined by-Section 414
                           (m) of the Code), all such employers shall be
                           considered as a single employer for purposes of
                           applying the limitation of Section 415 of the Code.

                  (v)      notwithstanding the foregoing or Section 5.3, the
                           annual addition for any Limitation Year beginning
                           before January 1, 1988 shall not be recomputed to
                           treat all Employee Contributions as an Annual
                           Addition.

                                    SECTION 6

6.1      Allocation To Participant's Accounts

         (a)      The Qualifying Employer Securities Account maintained for each
                  Participant will be credited annually with his allocable share
                  of Qualifying Employer Securities (including fractional
                  shares) purchased and paid for by the Trust or contributed in
                  kind to the Trust.

                  Financed Shares shall initially be credited to a "Loan
                  Suspense Account" and shall be allocated to the Company Stock
                  Accounts of Participants only as payments on the Acquisition
                  Loan are made by the Trustee. The number of Financed Shares to
                  be released from the Loan Suspense Account for allocation to
                  Participants' Company Stock Accounts for each Plan Year shall
                  be determined by the Plan Committee under either method (1) or
                  (2) below, as follows:

                  (1)      General Method - The number of financed shares held
                           in the loan suspense account immediately before the
                           release for the current Plan Year shall be multiplied
                           by a fraction. The numerator of the fraction shall be
                           the amount of principal and interest paid on the
                           acquisition loan for that Plan Year. The denominator
                           of the fraction shall be the sum of the numerator
                           plus the total payments of principal and interest on
                           that acquisition loan projected to be paid for all
                           future Plan

                                       21
<PAGE>

                           Years. For this purpose, the interest to be paid in
                           future years is to be computed by using the interest
                           rate in effect as of the current allocation date.

                  (2)      Alternative Method - The Plan Committee may elect at
                           the time an acquisition loan is incurred (or the
                           provisions of the acquisition loan may provide) for
                           the release of financed shares from the loan suspense
                           account based solely on the ratio that the payments
                           of principal for each Plan Year bear to the total
                           principal amount of the acquisition loan. This method
                           may be used only to the extent that: (a) the
                           acquisition loan provides for annual payments of
                           principal and interest at a cumulative rate that is
                           not less rapid at any time than level annual payments
                           of such amounts for ten years; (b) interest included
                           in any payment on the acquisition loan is disregarded
                           only to the extent that it would be determined to be
                           interest under standard loan amortization tables; and
                           (c) the entire duration of the acquisition loan
                           repayment period does not exceed ten years, even in
                           the event of a renewal, extension or refinancing of
                           the acquisition loan.

                  The Other Investments Account maintained for each Participant
                  will be credited (or debited) annually with his share of any
                  net income (or loss) of the Trust, and with his share of
                  Employer Contributions in cash. It will be charged for its
                  proportionate share of any cash payments made by the Trust for
                  the purchase of Qualifying Employer Securities or the
                  repayment of principal and interest on any Acquisition Loan.

         (b)      The Trustee shall, as of each Valuation Date, adjust each
                  Participant's Company Stock Account and Other Investments
                  Account for transactions since the date of the preceding
                  adjustment. Separate adjustments shall be made for each
                  Participant's Account as follows:

                  (i)      The number of shares of Qualifying Employer
                           Securities in each Participant's Company Stock
                           Account shall be the number of shares as of the date
                           of the preceding adjustment, but increased by (A)
                           Qualifying Employer Securities allocated to it
                           pursuant to Section 5.1, (B) stock dividends on
                           Qualifying

                                       22
<PAGE>

                           Employer Securities previously allocated to said
                           Account, and (C) Qualifying Employer Securities
                           acquired with funds from the corresponding Other
                           Investments Account, and shall be decreased by
                           distributions from said Account.

                  (ii)     The fair market value of each Other Investments
                           Account shall be the fair market value of assets in
                           such Account as of the date of the preceding
                           adjustment, but increased by (A) money allocated to
                           it pursuant to Section 5.1, (B) dividends (other than
                           Qualifying Employer Securities' dividends)' on
                           Qualifying Employer Securities previously allocated
                           to the corresponding Participant's Company Stock
                           Account, and (C) investment gains; and shall be
                           decreased by (1) distributions from said Account, (2)
                           amounts used to acquire Qualifying Employer
                           Securities for the corresponding Participant's
                           Company Stock Account, and (2) investment losses.

                  For the purposes of the foregoing paragraph, the investment
                  gain or loss in each Other Investments Account since the last
                  adjustment shall be its pro rata share of the investment gain
                  or loss of all assets in the Other investments Account based
                  on the change in fair market value of assets therein since the
                  last adjustment and computed in accordance with uniform
                  valuation procedures established by the Trustee.

                  Shares of Qualifying Employer Securities held in the Loan
                  Suspense Account and dividends paid thereon, funds borrowed
                  for the purchase of Qualifying Employer Securities, and
                  interest and all other costs attributable to the Loan Suspense
                  Account shall be excluded for all purposes under this Section
                  6.1(b), except to the limited extent provided in Section 13.7,
                  subparagraph 2.

6.2      As soon as practicable after each annual Valuation Date, the Committee
         shall advise each Participant of the amount then credited to his
         Account.

         Diversification of Participant Accounts

6.3      Each Qualified Participant shall be permitted to direct the Plan as to
         the investment of twenty-five percent (25%) of the value of the
         Participant's Account Balance attributable to Employer Securities. Such
         direction shall

                                       23
<PAGE>

         be made within the Qualified Election Period and shall be made no later
         than 90 days after the close of each Plan Year which occurs within the
         Qualified Election Period. In the case of the last Plan Year in which
         such direction may be made, the amount of permitted investment shall be
         increased to fifty percent (50%) of the Participant's Account.

6.4      The Qualified Participant may elect from the following options with
         respect to directing the investment of a portion of the account:

         1.       The Plan shall distribute (without regard to the Distribution
                  Limitations of Section 409(d) of the Code) the portion of the
                  account that is covered by the election within 90 days after
                  the last day of the period during which the election may be
                  made; or

         2.       In lieu of a distribution of the portion of the account that
                  is covered by the election, the Qualified Participant may
                  direct the Plan to transfer the amount to another qualified
                  plan of the Employer which accepts such transfers, permits
                  employee-directed investments and does not invest in Employer
                  Securities to a substantial degree. Such transfer shall be
                  made no later than ninety days after the last day of, the
                  period ongoing which the election can be made; or

6.5      Notwithstanding the foregoing, any election under this Section 6 by a
         Qualified Participant which results in a distribution to such
         Participant shall be subject to the consent provisions of Section 9.4
         and 10.5 of the Plan. If the consent is not secured, then amounts
         otherwise distributable under this Section will remain in the Plan.

6.6      Notwithstanding any other provision of this Plan, any distribution to a
         participant or beneficiary pursuant to this section 6 shall be subject
         to the provisions of section 10.9, herein, as applicable.

                                    SECTION 7

                                   Retirement

         Early and Normal Retirement

7.1      At the Normal Retirement Date or the Early Retirement Date, the
         Participant shall have a 100% nonforfeitable interest in his account.
         If a Participant defers his retirement beyond his Normal Retirement
         Date, he shall

                                       24
<PAGE>

         continue as a Participant until his actual retirement, but no
         distributions shall be made from his accounts until his actual
         retirement unless the Participant elects to withdraw all or part of his
         Company Contribution Account pursuant to this Section.

7.2      A Participant may elect an early retirement providing his Account is
         fully vested at that time. If he is not fully vested at the time and
         elects an early retirement, his vested portion of the Employer
         Contributions Account shall be available pursuant to Section 10.2.

7.3      If a Participant's employment terminates by reason of his retirement at
         his Normal Retirement Date or the Early Retirement Date, the total
         balance of his Account and Participant Contribution Account, as of the
         Valuation Date which coincides with or next follows the date of his
         retirement, shall be distributed to him in whole shares of Qualifying
         Employer Securities and any cash credited to his accounts. Any
         fractional share value shall be distributed to him in cash. If
         Qualifying Employer Securities are not available for purchase by the
         Trustees, then the Trustees shall hold such balance until Qualifying
         Employer Securities are acquired and then make the distribution.

         Notwithstanding the foregoing unless elected otherwise under the Plan,
         the distribution of such Participant's Account Balance attributable to
         Qualifying Employer Securities shall begin not later than one year
         after the close of the Plan Year in which the Participant attains his
         Normal Retirement Date or Early Retirement Date.

         If the Company's charter or bylaws restrict ownership of substantially
         all shares of Company stock to Employees and the Trust the distribution
         of a Participant's Company Stock Account may be made pursuant to
         Section 7.4 without granting the Participant the right to demand
         distribution in shares of Qualifying Employer Securities. The Employer,
         in its sole discretion, may provide for the distribution of a
         Participant's Company Stock Account in the following manner:

         (a)      a lump sum distribution, or

         (b)      substantially equal, annual installments over a period not
                  exceeding ten (10) years, or

         (c)      any combination of the foregoing.

         Unless otherwise elected by a Participant, the distribution of his
         account attributable to Employer Securities

                                       25
<PAGE>

         as well as other (diversified) investments shall commence not later
         than sixty (60) days after the Anniversary Date coinciding with or next
         following his Normal Retirement Age (or his termination of Service, if
         later). However, if the amount of a Participant's account attributable
         to both Employer Securities as well as other (diversified) investments
         cannot be ascertained by the Committee by the date on which such
         distribution should commence, or if the Participant cannot be located,
         distribution of his account shall commence within sixty (60) days after
         the date on which his Company Stock Account Value can be determined or
         after the date on which the Committee locates the Participant.

         Distributions of the Employer Securities otherwise required under this
         Section shall not include any Employer Securities acquired with the
         proceeds of any Acquisition Loan until the close of the Plan Year in
         which such loan is repaid in full except where no other Securities are
         available for such distribution.

7.4      Distributions of Employer Securities required pursuant to Section 7.3
         shall be made in substantially equal annual payments over a period of
         five years unless the Participant otherwise elects under the provisions
         of Section 7.3. In no event will this Section be deemed to extend any
         otherwise required payment period as permitted under Section
         401(a)(degree) of the Code and Section 7.6 of the Plan.

         Notwithstanding the foregoing, in the case of a Plan established and
         maintained by a bank, which is prohibited by law from redeeming or
         purchasing its own securities, Employer Securities will not be required
         to be distributed if the Participant is permitted to receive a
         distribution in cash.

         Any Participant who elected to diversify a portion of his account under
         section 6.3, shall not have the right to demand that portion be
         distributed in the form of Employer Securities.

7.5      Rights, Restrictions and Option on Company Stock

         (a)      Right of First Refusal

                  Shares of the Qualifying Employer Securities distributed by
                  the Trustee shall be subject to a "right of first refusal."
                  The right of first refusal shall provide that, prior to any
                  subsequent transfer, such Qualifying Employer Securities must
                  first be offered in writing to the Company, and

                                       26
<PAGE>

                  then, if refused by the Company, to the Trust, at the then
                  fair market value. The Company and the Committee (on behalf of
                  the Trust) shall have a total of fourteen (14) days (from the
                  date the Company receives the offer) to exercise the right of
                  first refusal on the same terms offered by a prospective
                  buyer. A Participant (or beneficiary) entitled to a
                  distribution of Qualifying Employer Securities may be required
                  to execute an appropriate stock transfer agreement (evidencing
                  the right of first refusal) prior to receiving a certificate
                  for such Securities.

                  Notwithstanding the foregoing, a "right of first refusal"
                  shall not be permitted in the case of Qualifying Employer
                  Securities which are publicly traded on an established
                  securities market.

         (b)      Put Option

                  In the case of a distribution of Employer Securities which are
                  not readily tradeable on an established securities market, the
                  Plan shall provide the Participant with a put option that
                  complies with the requirements of Section 409(h) of the Code.

                  The Company shall issue such a put option to each Participant
                  receiving a distribution of Securities from the Trust subject
                  to the availability of the retained earnings in such amount
                  that complying with the put option shall not be ultravires.
                  The put option shall permit the Participant to sell such
                  Securities to the Company, at any time during two option
                  periods, at the then fair market value as determined as of the
                  most recent valuation date (prior to the exercise of such
                  right) by an independent appraiser meeting requirements
                  similar to the requirements of the regulations prescribed
                  under Sections 170(a)(l) and 401(a) (28)(C) of the Code
                  engaged by the Committee. The first put option shall be a
                  period of sixty (60) days beginning on the date of
                  distribution of Employer Securities to the Participant. The
                  second put option period shall be a period of sixty (60) days
                  beginning after the new determination of the fair market value
                  of such Securities by the Committee in the next following Plan
                  Year. The Committee may be permitted by the Company to direct
                  the Trustee to purchase Qualifying Employer Securities
                  tendered to the Company under a put option. The payment for
                  such Securities sold pursuant to a put option shall be

                                       27
<PAGE>

                  made in substantially equal, annual installments pursuant to
                  Section 7.3.

                  The Trust shall have the option to assume the rights and
                  obligations of the Company at the time the Participant
                  requires the purchase by the Company.

                  Such put option shall provide that if an Employee exercises
                  the put option, the Company (or the Plan if the Trustee so
                  elects), shall repurchase the Employer Securities as follows:

                  (1)      If the distribution constitutes a Total Distribution,
                           payment of the fair market value of a Participant's
                           account balance shall be made in not more than five
                           substantially equal annual payments. The first
                           installment shall be paid no later than 30 days after
                           the Participant exercises the put option. The Plan
                           will pay a reasonable rate of interest and provide
                           adequate security on amounts not paid after 30 days.

                  (2)      If the distribution does not constitute a Total
                           Distribution, the Plan shall pay the Participant an
                           amount equal to the fair market value of the Employer
                           Securities repurchased no later than 30 days after
                           the Participant exercises the put option.

         (c)      Placement of Restrictions on Stock Certificates

                  Shares of Qualified Employer Securities held or distributed by
                  the Trustee may include such legend restrictions on
                  transferability as a Company may reasonably require in order
                  to assure compliance with applicable Federal and State
                  securities law and with the provisions of this paragraph.
                  Except as otherwise provided in the Section, no shares of
                  Qualified Employer Securities held or distributed by the
                  Trustee may be subject to a put, call or other option or
                  buy-sell or similar arrangement. The provisions of this
                  Section shall continue to be applicable to shares of such
                  Securities, even if the Plan ceases to be an employee stock
                  ownership plan under Section 4975(e)(7) of the Code.

7.6      Late Retirement Payments

         Notwithstanding anything to the contrary, payment of a Participant's
         benefit will commence not later than April

                                       28
<PAGE>

         1 of the calendar year following the calendar year in which the
         Participant attains age 70-1/2. Each Participant may receive his or her
         benefits in a lump sum or installment payments, as stated in Section
         7.3.

7.7      Minimum Amounts to be Distributed

         The minimum amount to be distributed each year must be not less than
         the lesser of the balance of the Participant's entire interest or an
         amount equal to the quotient obtained by dividing the Participant's
         entire interest in the plan at the beginning of the year by the life
         expectancy of the Participant or, if applicable, the joint life and
         last survivor expectancy of the Participant and Spouse or
         beneficiaries. A determination of life expectancy will be made in
         either case not later than the date the Participant reaches age 70 by
         use of the expected return multiples in Section 1.72-9 of the Income
         Tax Regulations, and such multiple may be recomputed each succeeding
         year.

                                    SECTION 8

                           In The Event Of Disability

8.1      In the event a Participant suffers a Total Disability, the total
         balance of his Participant Account, as of the Valuation Date which
         coincides with or next follows the determination of disability, shall
         become 100% vested and distributed to him in as nearly equal
         installments as possible over a period not to exceed the life
         expectancy of the Participant or the Participant and his Spouse
         commencing as of such Valuation Date. Such installments shall be paid
         as determined by the Committee, on a regular basis in accordance with
         Sections 7.3 and 7.4. In lieu thereof, the Committee may determine that
         such installments shall be paid over a shorter period, or that the
         total balance of the Participant's Account shall be distributed to him
         in one lump sum as of the Valuation Date which coincides with or next
         follows the determination of disability. As of any Valuation Date prior
         to the complete distribution of a Participant's Accounts in
         installments, the Committee may change from an installment basis of
         distribution to a lump sum distribution, in which event the remaining
         balance of a Participant's Accounts will be distributed to him as of
         such date in one lump sum.

8.2      Once each year the Committee may require any disabled Participant
         receiving a disability retirement benefit who

                                       29
<PAGE>

         has not reached his Normal Retirement date to submit evidence that he
         is still disabled.

                                   SECTION 9

                             In The Event Of Death

9.1      In the event of the death of a Participant prior to the distribution of
         the total balance of his Participant Account, the total balance of his
         Accounts, as of the Valuation Date which coincides with or next follows
         the date of his death, shall be immediately 100% vested and distributed
         in installments or in one lump sum to his primary beneficiary or, if
         the primary beneficiary does not survive the Participant, then to his
         secondary beneficiary, or if no beneficiary has been designated or
         survives, then to the Participant's estate as permitted under the
         provisions of Sections 7.3 and 7.4.

9.2      At any time during his life, a Participant shall be entitled to
         designate a beneficiary (including a secondary beneficiary, if the
         Participant so desires), to whom in the event of death the distribution
         provided herein shall be paid, by signing and filing with the Committee
         a written designation of beneficiary in such form as shall be required
         by the Committee. Any beneficiary so designated may be changed by the
         Participant at any time or from time to time during his life, by
         signing and filing with the Committee a written notification of change
         of beneficiary in such form as shall be required by the Committee. If
         the Participant is married, the designated beneficiary shall be the
         Participant's Spouse unless an election was made under Section 9.4.

9.3      In the event a married Participant dies while still employed by the
         Employer or before benefits commence to the Participant, the
         Participant's benefit must be paid to the Participant's surviving
         Spouse in a lump sum within five years or commence to be paid to the
         surviving Spouse in installments over a period not exceeding the
         Spouse's life expectancy. If a Participant dies and is not survived by
         a Spouse before distributions have commenced, the entire remaining
         interest must be distributed to the Participant's beneficiary or
         beneficiaries within five years.

         However, if distributions have commenced to the Participant before the
         Participant's death and such amounts are payable over a period not
         exceeding the joint life and last survivor expectancy of the
         Participant and the Participant's Spouse, distributions to the

                                       30
<PAGE>

         Participant's surviving Spouse, beneficiaries or estate may continue
         over the period selected by the Participant.

9.4      Qualified Election: A waiver of a qualified preretirement death benefit
         is provided for in Section 9. The waiver must be in writing and must be
         consented to by the Participant's Spouse with such waiver specifically
         acknowledging the non-spouse beneficiary or any subsequent change in a
         non-spouse beneficiary. The Spouse's consent to a waiver must be
         witnessed by a Plan representative or notary public. Notwithstanding
         this consent requirement, if the Participant establishes to the
         satisfaction of a Plan representative that such 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. Any consent
         necessary under this provision will be valid only with respect to the
         Spouse who signs the consent, or, in the event of a deemed qualified
         election, the designated Spouse. Additionally, 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.

9.5      If a Participant files no designation of beneficiary or revokes a
         designation previously filed without filing a new designation of
         beneficiary, or if all persons so designated as beneficiary shall
         predecease the Participant or die prior to complete distribution to
         them, the Trustee, pursuant to Employer instructions, shall distribute
         such death benefit or balance thereof to the following who shall be
         deemed beneficiaries: to such Participant's surviving Spouse, or if
         none, to such Participant's surviving issue per stirpes and not per
         capita, or if none, to the Participant's estate.

                                   SECTION 10

                    In The Event Of Termination Of Employment
                              Or Change In Status

10.0     Subject to the provisions of Section 7.6 "Late Retirement", there
         shall be no distributions made to a Participant except on account of
         termination of employment, death, disability as provided for in Section
         8, or termination of the Plan.

10.1     If a Participant's employment is terminated otherwise than by death,
         retirement or disability and the Participant is not re-employed by the
         Employer at the end of a period of five (5) consecutive One Year Breaks
         in Service, distribution of such portion of the

                                       31
<PAGE>

         Participant's vested Account Balance attributable to Qualifying
         Employer Securities will begin not later than one year after the close
         of a period of five (5) consecutive One Year Breaks in Service unless
         the Participant otherwise elects under the provisions of this Plan. If
         the fair market value of a Participant's Account attributable to
         Qualifying Employer Securities is in excess of $500,000 (multiplied by
         the Adjustment Factor as prescribed by the Secretary of the Treasury)
         as of the date distribution is required to begin under this Section,
         distributions shall be made in substantially equal annual payments over
         a period not longer than five years plus an additional one year (up to
         an additional five years) for each $100,000 increment, or fraction of
         such increment, by which the value of the Participant's Account exceeds
         $500,000, unless the Participant otherwise elects under the provisions
         of the Plan. In no event shall such distribution period exceed the
         period permitted under Section 401(a)(9) of the Code. If the fair
         market value of a Participant's Account attributable to Qualifying
         Employer Securities is not in excess of $500,000 (multiplied by the
         Adjustment Factor as prescribed by the Secretary of the Treasury) as of
         the date distribution is required to begin under this Section,
         distributions shall be made in substantially equal annual installments
         over a period not longer than five years, unless the Participant
         otherwise elects under the provisions of the Plan.

         If the Participant separates from service for a reason other than those
         described above and is re-employed by the Employer prior to the end of
         a period of five (5) consecutive One Year Breaks in Service,
         distribution to the Participant, prior to any subsequent termination of
         service, shall be in accordance with terms of the Plan other than this
         Section.

         For purposes of this Section, Employer Securities shall not include any
         Employer Securities acquired with the proceeds of an Acquisition Loan
         until the close of the Plan Year in which such loan is repaid in full.

10.2     The non-forfeitable portion of the account balance of a Participant's
         Account shall be a percentage of such Account based upon the number of
         Years of Service that such Participant has credited from his date of
         employment according to the following schedule:

                                       32
<PAGE>

<TABLE>
<CAPTION>
Years of Service         Percent Vested
----------------         --------------
<S>                      <C>
Less than 3 year                0%
3 years                        20%
4 years                        40%
5 years                        60%
6 years                        80%
7 or more years               100%
</TABLE>

10.3     Forfeitures. As of each Anniversary Date any amounts which became
         Forfeitures since the last Anniversary Date shall first be made
         available to reinstate previously forfeited account balances of Former
         Participants, if any, in accordance with Section 10.4. The remaining
         Forfeitures, if any, shall be added to the Employer's contribution
         made pursuant to Section 5.1 and allocated among the Participants'
         Accounts in the same manner as the Employer's contribution for the
         current year. In the event the allocation of Forfeitures provided
         herein shall cause the "annual addition" (as defined in Section 5.3) to
         any Participant's Account to exceed the amount allowable by the Code,
         the excess shall be reallocated in accordance with Section 5.3(b).
         However, a Participant who performs less than a Year of Service during
         any Plan Year shall not share in Forfeitures for that year, unless
         required pursuant to Section 11.3.

10.4     Restoration of a Participant's Account Upon Reemployment If a former
         Participant is reemployed by the Company before incurring five (5)
         consecutive 1-year Breaks in Service, and such Participant had received
         a distribution of his entire interest in his Accounts pursuant to
         Section 10.1 prior to being reemployed, the full amount in such
         Participant's Company Contribution Account on the date of the prior
         distribution (including vested and nonvested portions) will be restored
         if:

         (a)      The Participant repays to the Plan the full amount of the
                  prior distribution, other than his voluntary contribution,
                  before the Participant incurs five (5) consecutive 1-year
                  Breaks in Service commencing after such withdrawal; and

         (b)      The Participant was not fully vested in his Company
                  Contribution Account at the time of the distribution.

10.5     An Employee, upon termination of employment with the Employer, whose
         vested portion of the Participant's Account does not exceed $3,500 in
         value, shall be paid such vested portion without regard to the
         Participant's election related to the timing of such payments. If an
         Employee, upon termination for any reason other than

                                       33
<PAGE>

         retirement, death, or total and permanent disability, does not consent
         to the payment of his vested portion of the Participant's Account, and
         if the then value of such Account exceeds $3,500, the Committee shall
         direct the Trustee to place the then value of such non-company stock
         accounts in one (1) or more investment accounts permitted under the
         Plan in trust for the named Employee. The Account(s) and all
         accumulated interest shall be paid to the Employee at the time he
         attains his Normal Retirement Age. In the event the Employee dies
         before reaching retirement age, the account balance shall be paid to
         any beneficiary the Employee has named in a written designation filed
         with the Committee or, in the absence of such designation, to the
         Employee's estate subject to the terms of Section 9 of the Plan. The
         Trustee shall have no other responsibilities with respect to such
         accounts except that, if the balance of any such account shall approach
         the amount of federal insurance, the Trustee shall split the account
         into two (2) or more accounts.

10.6     It shall be the responsibility of the terminating Participant to keep
         the Committee informed as to his address, and the Trustee and the
         Committee shall not be required to do anything further than send all
         papers, notices, payments, or the like to the last address given them
         by such Participant unless they can be shown to have acted in bad
         faith, having had knowledge of the Participant's actual whereabouts.

10.7     Except as limited by Sections 7, 8, 9 and 10, whenever the Trustee is
         to make a distribution or to commence a series of payments on or
         before an Anniversary Date, the distribution or series of payments may
         be made or begun on such date or as soon thereafter as is practicable,
         but in no event later than 180 days after the Anniversary Date. Except,
         however, unless a Former Participant elects in writing to defer the
         receipt of benefits (such election may not result in a death benefit
         that is more than incidental), the payment of benefits shall begin not
         later than the 60th day after the close of the Plan Year in which the
         latest of the following events occurs:

         (1)      the date on which the Participant attains the earlier of age
                  65 or the Normal Retirement Date specified herein,

         (2)      the 10th anniversary of the year in which the Participant
                  commenced participation in the Plan, or

         (3)      the date the Participant terminates his service with the
                  Employer.

                                       34
<PAGE>

10.8     Notwithstanding any provisions of the Plan, in no event shall a
         distribution schedule or form of distribution exceed the period
         permitted under Section 401(a)(9) of the Code or Treasury Regulations
         Section 1.401(a)(9)-l or Section 1.401(a)(9)-2.

10.9     Distribution Rollovers to Other Qualified Plans. This Section applies
         to distributions made on or after January 1,1 993. 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.

     (a) Definitions

         (1) Eligible rollover distributions: 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
         section 401(a)(9) of the Code; and the protection 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).

         (2) Eligible retirement plan: An eligible retirement plan is an
         individual retirement account described in section 408(a) of the Code,
         an individual retirement annuity described in section 408(b) of the
         Code, an annuity plan described in section 403(a) of the Code, or a
         qualified trust described in section 401(a) of the Code, that accepts
         the distributee's eligible rollover distribution. However, in the case
         of an eligible rollover distribution to the surviving spouse, an
         eligible retirement plan is an individual retirement account or
         individual retirement annuity.

         (3) 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 forme

                                       35
<PAGE>

         employee's spouse or former spouse who is the alternate payee under a
         qualified domestic relations order, as defined in section 414(p) of the
         Code, are distributees with regard to the interest of the spouse or
         former spouse.

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

                                   SECTION 11

                         Top-Heavy Definitions and Rules

11.1     Effective Date of Top-Heavy Provisions. If the Plan is or becomes
         Top-Heavy beginning as of the last day of the first Plan Year or, of
         the day next preceding the beginning of any later Plan Year (the
         "determination date"), the provisions of Sections 11 will supersede any
         conflicting provision in the Plan.

11.2     Top-Heavy Vesting Schedule. If the Plan is determined to be Top-Heavy
         for any Plan Year, a Participant's vested percentage interest in his
         Company Contribution Account shall be determined in accordance with the
         Top-Heavy Vesting Schedule set forth in 11.2(d) of this Plan, subject
         to the following additional requirements:

         (a)      Years, of Service for purposes of vesting under a Top-Heavy
                  Vesting Schedule shall include Years of Service when the Plan
                  was not Top-Heavy;

         (b)      If any Participant in the Plan is not credited with an Hour of
                  Service after the Plan becomes Top-Heavy, that Participant
                  shall not be subject to the Top-Heavy Vesting Schedule, but
                  shall remain subject to the vesting schedule set forth in
                  Section 10.2 and the rules in effect prior to the date the
                  Plan becomes Top-Heavy; and

         (c)      If the Plan ceases to be Top-Heavy, an Employee's vested
                  percentage interest in the contributions allocated "to his
                  Company Contribution Account for Plan Years after the Plan
                  Year in which the Plan ceases to be Top-Heavy shall be
                  determined in accordance with the vesting schedule set forth
                  in Section 10.2 of the Plan, unless otherwise set forth in
                  11.2 of this Plan.

         (d)      If the Plan is a Top-Heavy Plan in a Plan Year, a Participant
                  who is credited with an Hour of Service in such Plan Year
                  shall have the non-forfeitable

                                       36
<PAGE>

                  interest in his Accrued Benefit for such Plan Year determined
                  in accordance with the following schedule:

<TABLE>
<CAPTION>
                            Non-forfeitable
                                (Vested)
Years of Service               Percentage
----------------            ---------------
<S>                         <C>
Less than 2 years                 0%
2 years                          20%
3 years                          40%
4 years                          60%
5 years                          80%
6 or more years                 100%
</TABLE>

         (e)      Notwithstanding any provision to the contrary, the vested
                  benefit derived from Employer contributions of a Participant
                  may not be reduced below what it was before the Plan ceased to
                  be Top-Heavy and the vesting schedule was changed. In
                  addition, each Participant with three (3) or more Years of
                  Service shall be given the option of remaining under the
                  Top-Heavy Vesting Schedule within the same period as set forth
                  in Section 16.3.

11.3     Minimum Contributions. If this Plan is Top-Heavy during any Plan Year,
         the Employer must make a minimum Contribution consisting of Employer
         contributions and forfeitures on behalf of each Plan Participant who is
         a Non-Key Employee equal to an amount which is not less than three (3%)
         percent of such Participant's Compensation. A Minimum Contribution
         shall be made on behalf of such Participant even though, under other
         Plan provisions, the Participant would not otherwise be entitled to
         receive an allocation, or would have received a lesser allocation for
         the Plan Year due to (i) the Participant's failure to complete 1000
         Hours of Service, or (ii) the Participant's failure to make mandatory
         contributions to the Plan, if required; or (iii) the Participant's
         Compensation is less than a stated amount.

         Notwithstanding the preceding paragraph, if the Employer's Minimum
         Contribution on behalf of each Plan Participant who is a Key Employee
         equals an amount which is less than three percent (3%) of such
         Participant's Compensation, then the Minimum Contribution required to
         be made for each Non-Key Employee is limited to not more than the
         highest contribution rate under the Plan for each Key Employee.
         Therefore, if no Employer Contribution is made on behalf of a Key
         Employee, then no Minimum Contribution is required to be made on behalf
         of each

                                       37
<PAGE>

         Non-Key Employee. However, if the Plan is included in a Required
         Aggregation Group and it enables a defined benefit plan of the Employer
         to meet the requirements of Sections 401(a)(4) (Non-discrimination
         requirement) or 410 (Minimum Participation Standards) of the Code, then
         the Minimum Contribution for Non-Key Employees cannot be less than
         three percent (3%), regardless of the contribution rate for Key
         Employees. For purposes of this subparagraph, all defined contribution
         plans included in a Required Aggregation Group shall be treated as one
         Plan.

         A Minimum Contribution shall not be made on behalf of any Participant
         who is not employed by the Employer on the last day of the Plan Year.
         For purposes of computing the Minimum Contribution for any Plan
         Participant, amounts paid by the Employer to Social Security shall be
         disregarded. Also, for all Plan years, except those beginning before
         January 1, 1985, any Employer contribution attributable to a salary
         reduction or similar plan shall not be taken into account.

11.4     Minimum Contributions or Minimum Benefits in Two or More Plans. If the
         Employer maintains more than one qualified plan and more than one such
         plan is determined to be Top-Heavy, a Minimum Contribution or a Minimum
         Benefit, as described in the following paragraph, shall be provided in
         one of such Plans. If the Employer has both a Top-Heavy defined benefit
         pension plan and a Top-Heavy defined contribution plan and a Minimum
         Contribution is to be provided only in the defined contribution plan,
         then this Minimum Contribution shall not be less than five percent (5%)
         of a Participant's Compensation. Notwithstanding that set forth in
         Section 3.1, if the Minimum Contribution is to be provided in this
         Plan, then the Employer must provide such Minimum Contribution even if
         the Employer has no current or accumulated profits for the Plan Year.

         If a defined benefit plan of the Employer is Top-Heavy during any Plan
         Year, each Plan Participant who is a Non-Key Employee and who has
         completed 1000 Hours of Service in the Plan Year must accrue a Minimum
         Benefit derived from Employer contributions which, at any time, when
         expressed as an Annual Retirement Benefit equals or exceeds the product
         of such Non-Key Employee's average annual Compensation for his Testing
         Period under such defined benefit plan and the applicable percentage,
         which is the lesser of two percent (2%) multiplied by the number of
         Years of Service with the Employer or twenty percent (20%). In
         addition, the following rules shall also apply:

                                       38
<PAGE>

         (a)      Such Non-Key Employee must accrue a Minimum Benefit even if
                  such Employee is not employed by the Employer on the last day
                  of the Plan Year, or if, under other Plan provisions, the
                  Participant would not otherwise be entitled to receive an
                  accrual or would have received a lesser accrual for the Plan
                  Year due to (i) the Participant's failure to make mandatory
                  contributions to the Plan, if required, or (ii) the
                  Participant's Compensation is less than a stated amount; or
                  (iii) the Plan is integrated with Social Security.

         (b)      A Year of Service shall not be taken into account in
                  determining the Minimum Benefit if such Year of Service either
                  ends in a Plan Year beginning before January 1, 1984 or if
                  the Plan was not Top-Heavy for any Plan Year ending during
                  such Year of Service.

         (c)      Compensation of the Employee in years ending in a Plan Year
                  beginning before January 1, 1984 or beginning after the close
                  of the last Plan Year in which the Plan is Top-Heavy shall be
                  disregarded.

         (d)      For purposes of computing the Minimum Benefit for any Non-Key
                  Employee, Employer contributions to Social Security or
                  attributable to a salary reduction or similar plan shall not
                  be taken into account. Notwithstanding the preceding sentence,
                  any Employer contribution attributable to a salary reduction
                  or similar plan shall be taken into account for computing the
                  Minimum Benefit for any Non-Key Employee for Plan Years
                  beginning before January 1, 1985.

         (e)      If the Non-Key Employee receives a benefit in a form other
                  than a single life annuity or a benefit other than at Normal
                  Retirement Age, the Minimum Benefit must be an amount that is
                  the actuarial equivalent of the minimum single life annuity
                  benefit commencing at Normal Retirement Age under such defined
                  benefit plan.

         (f)      All accruals derived from Employer contributions, whether or
                  not attributable to years during which the Plan was Top-Heavy,
                  may be used in determining whether the Minimum Benefit accrual
                  requirements described in this paragraph are satisfied.

11.5     Aggregate Limit on Contributions and Benefits for Key Employees. If any
         Participant is a Key Employee and is, or was, covered under both a
         defined benefit plan and a

                                       39
<PAGE>

         defined contribution plan which are both included in a Top-Heavy Group
         of the Employer, then for any Plan Year in which the Plans are
         Top-Heavy, the number "1.0" shall be substituted for "1.25" in each
         place where it appears in Section 5.3(b), unless the Additional Minimum
         Contribution is being made pursuant to Section 11.3.

         Notwithstanding the above paragraph, if the Plan is Top-Heavy, but is
         not Super Top-Heavy, Section 5.3(b) without modification, shall
         continue to govern the overall limitations on contributions and
         benefits for Key Employees if an Additional Minimum Benefit or a
         Minimum Contribution equal to seven and one-half percent (7-1/2%) shall
         be received by each Participant who is a Non-Key Employee in any one
         qualified plan maintained by the Employer. However, for any Plan Year
         in which this Plan is a Super Top-Heavy Plan, 1.0 shall be substituted
         for 1.25 in any event, where it appears in Section 5.3(b)

11.6     Miscellaneous Compensation Provisions. For any Plan Year in which a
         Plan is Top-Heavy, the annual Compensation of each Participant which
         may be taken into account for the purpose of determining Employer
         contributions or benefits under the Plan, including the computation of
         the contribution rate for Key Employees in Section 11.3, shall not
         exceed $200,000 for Plan Years ending on or after January 1, 1988.
         Notwithstanding this limitation, benefits attributable to annual
         Compensation while the Plan was not Top-Heavy shall not be reduced.

11.6.1   Accrued benefits of former Employees with no service for five years are
         excluded for top-heavy testing.

11.7     Top-Heavy Definitions

11.7.1   "Additional Minimum Benefit" means the Minimum Benefit described in
         Section 11.4; however, in determining the applicable percentage in
         Section 11.4, "three percent (3%)" shall be substituted for "two
         percent (2%)" and "twenty percent (20%)" shall be increased by 1
         percentage point for each year for which the Plan is Top-Heavy, up to a
         maximum of thirty (30%) percent.

11.7.2   "Additional Minimum Contribution" means the Minimum Contribution
         described in Section 11.3; however, in determining the Minimum
         Contribution "four percent (4%)" shall be substituted for "three
         percent (3%)" wherever it appears throughout Section 11.3.

                                       40
<PAGE>

11.7.3   "Aggregation Group" shall mean one of the following:

         (a)      Required Aggregation Group:

                  "Required Aggregation Group" means each Plan of the Employer,
                  including terminated plans, in which a Key Employee is a
                  Participant and each other Plan of the Employer which enables
                  any Plan in which a Key Employee is a Participant to meet the
                  requirements of Sections 410 (Minimum Participation Standards)
                  or 401(a)(4) (Non-discrimination requirement) of the Code.
                  Collectively - bargained plans that include a Key Employee of
                  an Employer shall be included in the Required Aggregation
                  Group of the Employer; or

         (b)      Permissive Aggregation Group:

                  "Permissive Aggregation Group" means each Plan in the Required
                  Aggregation Group and any Plan the Employer elects to place
                  into the Aggregation Group, if this expanded group continues
                  to satisfy the requirements of Sections 401(a)(4) and 410 of
                  the Internal Revenue Code.

11.7.4   "Annual Retirement Benefit" means a benefit payable annually in the
         form of a single, life annuity with no ancillary benefits and beginning
         at the Normal Retirement Age under the Plan.

11.7.5   "Compensation" under Section 11 shall mean all W-2 earnings of the
         Employee from the Employer for the calendar year that ends with or
         within the Plan Year.

11.7.6   "Determination Date" for any Plan Year shall mean either (i) the last
         day of the preceding Plan Year, or (ii) in the case of the first Plan
         Year of any Plan, the last day of such Plan Year.

11.7.7   "Key Employee" shall mean any Employee, former Employee, or the
         Beneficiary of such Employee, who at any time during the current Plan
         Year or during any of the four preceding Plan Years, is described in
         one or more of the following three categories:

         (a)      An Officer of the Employer who receives from such Employer an
                  annual Compensation which exceeds one hundred and fifty
                  percent (50%) of Ninety Thousand Dollars ($90,000.00), or the
                  maximum dollar limitation under Section 415(b)(1)(A) of the
                  Code, as in effect for the calendar year in which the
                  Determination Date falls. The maximum number of

                                       41
<PAGE>

                  Employees required to be treated as Key Employees for the Plan
                  Year by reason of being officers is the greater of three
                  Employees or ten percent (10%) of the number of Employees of
                  the Employer, but such number shall not exceed 50 Employees.
                  If the number of Employees who are Officers of the Employer
                  exceed the maximum number required to be counted as Key
                  Employees, the Officers to be considered as Key Employees are
                  those with the highest annual Compensation from the Employer.

         (b)      One of the Employees owning or considered as owning within the
                  meaning of Section 318 of the Internal Revenue Code, as
                  modified by Section 416(i)(1)(B)(iii) of the Code, the largest
                  interests in the Employer, unless such Employee receives
                  Compensation from the Employer which is less than $30,000 per
                  year, or the maximum dollar limitation under Section
                  415(c)(1)(A) of the Code, as in effect for the calendar year
                  in which the Determination Date falls. An Employee who has
                  some ownership interest in the Employer is considered to be
                  one of the top ten owners unless at least ten (10) other
                  Employees own a greater interest than such Employee. If more
                  than one Employee has the same interest in the Employer, the
                  Employee having the greater annual Compensation from the
                  Employer shall be treated as having a larger interest in the
                  Employer.

         (c)      A Percentage Owner of the Employer. A "percentage owner" means
                  any person who owns, or is considered as owning within the
                  meaning of Section 318, as modified by Section
                  416(i)(1)(B)(iii) of the Internal Revenue Code, either

                  (1)      more than five percent (5%) of the outstanding stock
                           of the Employer or stock possessing more than five
                           percent (5%) of the total combined voting power of
                           all stock of the Employer; or

                  (2)      more than one percent (1%) of the outstanding stock
                           of the Employer or stock possessing more than one
                           percent (1%) of the total combined voting power of
                           all stock of the Employer, if such person has an
                           annual compensation from the Employer of more than
                           $150,000.

         If a person is considered during a Plan Year to be a Key Employee under
         two or more categories, due to his status other than as a Beneficiary,
         the present value of his accrued benefit or the sum of his account
         balance is

                                       42
<PAGE>

         counted only once during the Plan Year in testing whether the Plan is
         Top-Heavy. If a person is considered during the Plan Year to be a Key
         Employee because the person is both a Beneficiary and owner of
         Employer, then the present value of the person's inherited account
         balance and the present value of the person's accrued benefit or the
         sum of his account balance as an Employee or owner will be counted as
         the total accrued benefit or account balance of the individual as a Key
         Employee in determining whether the Plan is Top-Heavy. The
         determination of an individual's status as a Key Employee is based on
         the Plan Year containing the Determination Date.

11.7.8   "Minimum Benefit" means the benefit described in Section 11.4.

11.7.9   "Minimum Contribution" means the contribution described in Section
         11.3.

11.7.10  "Non-Key Employee" shall mean an Employee who is not a Key Employee or
         is the Beneficiary of such Employee.

11.7.11  "Rollover Contributions and Similar Transfers" shall mean the
         following:

         (a)      Related rollover contributions or similar transfers are those

                  (i)      not initiated by the Employee;

                  (ii)     made on or before
                           December 31, 1983; or

                  (iii)    made to a plan maintained by the same Employer, such
                           as in a merger or consolidation of two or more plans
                           or the division of a single plan into two or more
                           plans.

         (b)      Unrelated rollover contributions or similar transfers are
                  those which are both

                  (i)      initiated by the Employee; and

                  (ii)     made after December 31, 1983; and

                  (iii)    made from a plan maintained by one employer to a plan
                           maintained by another employer.

11.7.12  "Super Top-Heavy" shall mean a Plan which would be Top-Heavy if
         "ninety percent (90%)" were substituted for "sixty percent (60%)" in
         each place it appears in Section 11.7.16.

                                       43
<PAGE>

11.7.13  "Top-Heavy" means a qualified Plan which is a Top-Heavy Plan pursuant
         to the provisions of Section 11.7.16.

11.7.14  "Top-Heavy Group" means an Aggregation Group in which, as of the
         Determination Date, the sum of the present value of the accumulated
         accrued benefits for Participants who are Key Employees under all
         defined benefit plans included in such Aggregation Group and the sum of
         the account balances for Participants who are Key Employees under all
         defined contribution plans included in such Aggregation Group exceeds
         sixty percent (60%) of a similar sum determined for all Employees,
         including their Beneficiaries, who are participating under all Plans
         included in the Aggregation Group.

11.7.15  "Top-Heavy Vesting Schedule" shall mean the vesting schedule set forth
         in Section 11.2(d).

11.7.16  "Top-Heavy Plan" means a Plan for a Plan Year in which, as of the
         Determination Date:

         (a)      The sum of the account balances of Participants in the Plan
                  who are Key Employees for the Plan Year exceeds sixty percent
                  (60%) of the sum of the account balances under the Plan for
                  all Employees, including their Beneficiaries participating
                  under the Plan, and this Plan is not part of any Aggregation
                  Group; or

         (b)      The Plan is part of a Top-Heavy Group and is included in the
                  Required Aggregation Group. Notwithstanding the preceding
                  sentence, collectively-bargained plans are not subject to the
                  rules of Section 11. Years ending on or before December 31,
                  1983 shall not be taken into account under the Plan for
                  purposes of computing the Top-Heavy status of the Plan or
                  group of Plans, except to the extent provided in regulations.

         Determination of Top-Heavy Status

11.7.17  In making the determination of the Top-Heavy status of a Plan or group
         of Plans, the accrued benefits or account balances derived from
         Employer and Employee contributions are taken into account, but
         accumulated deductible Employee contributions are disregarded. Also,
         the determination of the present value of the accumulated accrued
         benefits and the account balances of a Key Employee or Non-Key Employee
         participating in the plans includes such amounts distributed to the
         Employee or to the Beneficiary of such Employee during the Plan Year
         that includes the Determination Date and the preceding

                                       44
<PAGE>

         four Plan Years, even if such distribution occurred before the
         effective date of Section 416 of the Code. The preceding amount also
         includes distributions under a plan which has been terminated which, if
         it had not been terminated, would have been included in a Required
         Aggregation Group. An unrelated rollover contribution or similar
         transfer accepted by the Plan after December 31, 1983 shall not be
         taken into account under the Plan for purposes of computing the
         Top-Heavy status of the Plan or group of Plans, except to the extent
         provided in regulations.

         If any individual ceases to be a Key Employee with respect to any Plan
         for any Plan Year, but such individual was a Key Employee with respect
         to such Plan for any prior Plan Year, any accrued benefit or account
         balance of such Employee shall not be taken into account in determining
         whether the Plan or group of Plans is Top-Heavy for any Plan Year
         following the last Plan Year in which such Employee was treated as a
         Key Employee. For Plan Years beginning after December 31, 1984, if any
         individual has not performed any service during the Plan Year that
         includes the Determination Date and the preceding four Plan Years for
         the Employer, other than benefits received under this Plan, then any
         accrued benefit or account balance of such individual shall not be
         taken into account in determining whether the Plan or group of Plans is
         Top-Heavy for the Plan Year.

         When aggregating two or more Plans in accordance with Section 416(g)(2)
         of the Code, or as it may be amended, the present value of the accrued
         benefits or account balances will be determined separately for each
         plan as of such Plan's Determination Date. These Plans will then be
         aggregated by adding together the results for each Plan as of the
         Determination Dates that fall within the same calendar year.

         The present value of the account balance of any Plan Participant as of
         the Determination Date is the sum of (a) the Participant's account
         balance as of the most recent valuation date occurring within a
         12-month period ending on the Determination Date, and (b) an adjustment
         for the amount of any Employer contribution actually made on behalf of
         the Participant after the valuation date, but on or before the
         Determination Date. Notwithstanding the above, in the first Plan Year,
         the adjustment set forth in paragraph (b) shall include the amount of
         any Employer contribution made after the Determination Date if such
         contributions are allocated to a Participant's Employer contribution
         account during the first Plan Year.

                                       45
<PAGE>

         Accrued benefits for top-heavy testing for Non-Key Employees are
         treated as accruing at the slowest rate applicable to any plan
         maintained by the Company.

                                   SECTION 12

                           Administration Of The Plan

         Administrative Committee

12.1     The Plan shall be administered by the Committee which shall be
         responsible for carrying out the provisions of the Plan. The Committee
         shall consist of at least two (2) members who shall be appointed from
         time to time by the Board of Directors. Vacancies therein shall be
         filled in the same manner as appointment.

         Each person appointed a member of the Committee shall signify his
         acceptance by filing a written acceptance with the Board of Directors.
         Any member of the Committee may be removed by his own accord by
         delivering his written resignation to the Board of Directors and to the
         Secretary of the Committee.

12.2     The members of the Committee shall elect from their number a Chairman
         and shall appoint a Secretary, who need not be a member of the
         Committee. They may appoint from the number such subcommittees with
         such power as they shall determine, may authorize one or more of their
         number or any agent to execute or deliver any instrument or make any
         payment in their behalf, and may employ such clerks, counsel, accounts
         and actuaries as may be required in carrying out the provisions of the
         Plan.

12.3     The Committee shall hold meetings upon such notice, at such time, and
         at such place as it may determine.

12.4     A majority of the members of the Committee at the time in office shall
         constitute a quorum for the transaction of business. All resolutions or
         other actions taken by the Committee shall be by vote of a majority of
         those present at a meeting, but not less than two, or in writing by all
         the members at the time in office, if they act without a meeting.

12.5     No member of the Committee, who is also an Employee, shall receive any
         compensation for his service as such, but the Employer may reimburse
         any member for reasonable and necessary expenses incurred.

12.6     The Committee shall from time to time establish rules for the
         administration of the Plan and the transaction of its

                                       46
<PAGE>

         business. Except as herein otherwise expressly provided, the Committee
         shall have the exclusive right to interpret the Plan and to decide any
         matters arising thereunder in connection with the administration of the
         Plan. It shall endeavor to act by general rules so as not to
         discriminate in favor of any person. Its decision and the records of
         the Committee shall be conclusive and binding upon the Employer,
         Participants, and all other persons having any interest under the Plan.

12.7     The Committee shall maintain accounts showing the fiscal transactions
         of the Plan, and in connection therewith shall require the Trustees to
         submit any necessary reports, and shall keep in convenient form such
         data as may be necessary for the determination of the assets and
         liabilities of the Plan. The Committee shall prepare, annually, a
         report showing in reasonable detail the assets and liabilities of the
         Plan and giving a brief account of the operation of the Plan for the
         past year. Such report shall be submitted to the Board of Directors and
         shall be filed in the Office of the Secretary of the Committee where it
         shall be open to inspection by any Participant of the Plan.

12.8     The members of the Committee and the officers and directors of the
         Employer shall be entitled to rely upon all certificates and reports
         made by any duly appointed legal counsel. The members of the Committee
         and the officers and directors of the Employer shall be fully protected
         against any action taken in good faith in reliance upon any such
         certificates, reports or opinions. All actions so taken shall be
         conclusive upon each of them and upon all persons having any interest
         under the Plan. Each member of the Committee shall be indemnified by
         the Company against any and all claims, loss, damages, expense and
         liability to which he may be a party by reason of his membership in the
         Committee, except in relation to matters as to which he shall be
         adjudged in such action to be liable for negligence or misconduct in
         the performance of his duty as such member. The foregoing right of
         indemnification shall be in addition to any other rights to which any
         such member may be entitled as a matter of law.

12.9     Claims for benefits under the Plan shall be filed, on the forms
         supplied by the Committee. Written notice of the disposition of a claim
         shall be furnished the claimant within thirty (30) days after the
         application therefor is filed. In the event the claim is denied, the
         reasons for the denial shall be cited and, where appropriate, an
         explanation as to how the claimant can perfect the claim will be
         provided.

                                       47
<PAGE>

12.10    Any Employee, former Employee, or beneficiary of either, who has been
         denied a benefit, or feels aggrieved by any other action of the
         Employer, Committee or the Trustee, shall be entitled, upon request to
         the Committee and if he has not already done so, to receive a written
         notice of such action, together with a full and clear statement of the
         reasons for the action. If the claimant wishes further consideration of
         his position, he may obtain a form from the Committee on which to
         request a hearing. Such form, together with a written statement of the
         claimant's position, shall be filed with the Committee no later than
         ninety (90) days after receipt of the written notification provided for
         in Section 12.9 above or in Section 12.10. The Committee shall schedule
         an opportunity for a full and fair hearing of the issue within the next
         thirty (30) days. The decision following such hearing shall be made
         within thirty (30) days and shall be communicated in writing to the
         claimant.

                                   SECTION 13

                    Management and Investment Of Trust Assets

13.1     All assets for providing the benefits of the Plan shall be held as a
         trust for the exclusive benefit of Participants and beneficiaries under
         the Plan, and no part of the corpus or income shall be used for, or
         diverted to, purposes other than for the exclusive benefit of
         Participants and beneficiaries under the Plan. No Participant or
         beneficiary under the Plan, nor any other person, shall have any
         interest in or right to any part of the earnings of the Trust, or any
         rights in, to or under the Trust or any part of its assets, except to
         the extent expressly provided in the Plan. Notwithstanding anything to
         the contrary in the Plan, the Board of Directors may establish more
         than one trust to hold Plan assets.

13.2     All contributions to the Plan by either the Participants or the
         Employer shall be committed in trust to the Trustees. The Trustees
         shall be appointed from time to time by the Board of Directors by
         appropriate instrument, with such powers in the Trustees as to
         investment, reinvestment, control and disbursement of the funds as the
         Board of Directors shall approve and as shall be in accordance with the
         Plan. The Board of Directors may remove any Trustee at any time, upon
         reasonable notice, and upon such removal or upon the resignation of any
         Trustee, the Board of Directors shall designate a successor Trustee.

                                       48
<PAGE>

13.3     Trust Assets under the Plan will be invested primarily in Qualifying
         Employer Securities, as provided in the Trust Agreement. Trust Assets
         may be used to purchase shares of Qualified Employer Securities from
         Company shareholders or from the Company. The Trustee may also invest
         Trust Assets in savings accounts, certificates of deposit, high-grade
         short-term securities, equity stocks, bonds, or other investments, or
         Trust Assets may be held in cash. All investments of Trust Assets shall
         be made by the Trustee only upon the direction of the Committee, and
         all purchases of Qualified Employer Securities by the Trustee shall be
         made at prices which do not exceed the fair market value of such
         shares, as determined in good faith by the Committee. The Committee may
         direct the Trustee to invest and hold up to 100% of the Trust Assets in
         Qualified Employer Securities.

13.4     The Committee may direct the Trustee to incur Acquisition Loans from
         time to time to finance the acquisition of Qualified Employer
         Securities (Financed Shares) for the Trust or to repay a prior
         Acquisition Loan. An installment obligation incurred in connection with
         the purchase of Qualified Employer Securities shall constitute an
         Acquisition Loan. An Acquisition Loan shall be for a specific term,
         shall bear a reasonable rate of interest and shall not be payable on
         demand except in the event of default. An Acquisition Loan may be
         secured by a collateral pledge of the Financed Shares so acquired and
         any other collateral permitted under the Treasury Regulations
         promulgated under Section 4975 of the Internal Revenue Code of 1986, as
         amended, including contributions that are made under the ESOP to meet
         its obligations under the Acquisition Loan. No other Trust Asset may be
         pledged as collateral for an Acquisition Loan, and no lender shall have
         recourse against any other such Trust Assets. Any pledge of Financed
         Shares must provide for the release of shares so pledged on a pro-rata
         basis as principal and interest on the Acquisition Loan are repaid by
         the Trustee and such Financed Shares are allocated to Participants'
         Company Stock Accounts (as provided in Section 6). Repayments of
         principal and interest on any Acquisition Loan shall be made by the
         Trustee (as directed by the Committee) only from Employer contributions
         paid in cash to enable the Trustee to repay such Loan, forfeitures from
         Participant accounts, from earnings attributable to such Employer
         Contributions and from cash dividends received by the Trust.

         Should the Employer Contributions, earnings attributable to such
         Employer Contributions and cash dividends received by the Trust on
         Financed Shares be insufficient

                                       49
<PAGE>

         to meet the obligations created by the Acquisition Loan, then the
         Trustee shall so advise the Committee. The Committee may recommend
         certain actions including but not limited to, refinancing the original
         loan, amendment of the original loan agreement, or the entering into of
         an additional Acquisition Loan to repay a prior Acquisition Loan.

13.5     The Committee shall determine the manner in which the funds of the Plan
         shall be disbursed in accordance with the Plan and provisions of the
         trust instrument, including the form of voucher or warrant to be used
         in making disbursements and the qualifications of persons authorized to
         approve and sign the same and any other matters incident to the
         disbursements of such funds.

         Voting of Company Stock

13.6     Pursuant to Section 409(e) of the Code, all "Registration-Type"
         Company Stock allocated to a Participant Account shall be voted by the
         Trustee in accordance with the instructions of the Participant.

         If the Company Stock is not a registration-type class of securities
         pursuant to Section 409(e) of the Code, then Participants are entitled
         to direct the Trustee concerning voting allocated stock with respect to
         any corporate matter which involves the approval or disapproval of any
         corporate merger, consolidation, recapitalization, reclassification,
         liquidation, dissolution, sale of substantially all assets or similar
         transaction. The Committee shall direct the voting of such stock in all
         other matters.

         Company Stock which has not yet been allocated shall be voted by the
         Trustee as directed by the Committee.

13.7     Dividends

         Dividends paid with respect to Qualifying Employer Securities held by
         the Trust shall be applied as follows:

         1.       The dividends paid with respect to shares allocated to the
                  accounts of Participants at the direction of the Plan
                  Committee shall be either (a) paid in cash directly to such
                  Participants or their Beneficiaries, or (b) if paid into the
                  Plan, distributed in cash to Participants or their
                  Beneficiaries not later than 90 days after the close of the
                  Plan Year in which paid, or (c) if permitted by Section
                  404(k), paid into the Plan and used to repay the Acquisition
                  Loan, with shares

                                       50
<PAGE>

                  released thereby allocated to such Participants in an amount
                  proportional to such dividends for the year for which such
                  dividends would have been allocated to such Participants.

         2.       The dividends paid with respect to unallocated shares will be
                  used to repay the Acquisition Loan.

                  To the extent so applied in either (1) or (2) above, the
                  dividends so paid shall be deductible to the Employer (as
                  permitted under Section 404(k) of the Code) in the taxable
                  year of the Employer in which the dividend is paid or
                  distributed to Participants, or applied to repay the
                  Acquisition Loan.

                                   SECTION 14

                           Obligations Of The Employer

14.1     The Employer shall have no liability in respect to payments of benefits
         or otherwise under the Plan, and the Employer shall have no liability
         in respect to the administration of the Trust or of the funds,
         securities or other assets paid over to the Trustees, and each
         Participant, each contingent Participant, and each beneficiary shall
         look solely to such Trust Fund for any payments or benefits under the
         Plan.

                                   SECTION 15

                                 Miscellaneous

15.1     No benefit payable under the Plan shall be subject in any manner to
         anticipation, alienation, sale, transfer, assignment, pledge,
         encumbrance, or charge and any action by way of anticipating,
         alienating, selling, transferring, assigning, pledging, encumbering, or
         charging the same shall be void and of no effect; nor shall any benefit
         be in any manner liable for or subject to the debts, contracts,
         liabilities, engagements, or torts of the person entitled to such
         benefit, except as specifically provided in the Plan.

15.2     Non-alienation: No benefits under this Plan shall be in any manner
         anticipated, alienated, sold, transferred, assigned, pledged,
         encumbered or charged, and any attempt to so anticipate, alienate,
         sell, transfer, assign, pledge, encumber or charge the same shall be
         void; nor shall any such benefits in any manner be liable for or
         subject to the debts, contracts, liabilities or engagements of the
         person entitled to such benefits as

                                       51
<PAGE>

         herein provided for him. The preceding sentence shall also apply to the
         creation, assignment or recognition of right to any benefit payable
         with respect to a Participant pursuant to a Domestic Relations Order,
         unless such order is determined to be a Qualified Domestic Relations
         Order, as defined in Section 414(p) of the Code, or any Domestic
         Relations Order entered before January 1, 1985.

15.3     The establishment of the Plan shall not be construed as conferring any
         rights upon any Employee or any person for a continuation of
         employment, and shall not be construed as limiting in any way the right
         of the Employer to discharge any Employee or to treat him without
         regard to the effect which such treatment might have upon him as a
         Participant in the Plan.

15.4     If any person entitled to receive any benefits from the Trust Fund is,
         in the judgment of the Committee, legally, physically, or mentally
         incapable of personally receiving and receipting for any distribution,
         the Committee may instruct the Trustees to make distribution to such
         other person, persons or institutions as, in the judgment of the
         Committee are then maintaining or have custody of such distributee.

15.5     The determination of the Committee as to the identity of the proper
         payee of any benefit under the Plan and the amount of such benefit
         properly payable shall be conclusive, and payment in accordance with
         such determination shall constitute a complete discharge of all
         obligations on account of such benefit.

15.6     In the event an amount is payable from the Trust Fund to a beneficiary
         or the executor or administrator of any deceased Participant and if,
         after written notice from the Trustees mailed to such person's last
         known address as certified to the Trustees by the Committee, such
         person or such executor or administrator shall not have presented
         himself to the Trustees within six (6) years after the mailing of such
         notice, the Trustees shall notify the Committee and the Committee shall
         instruct the Trustees to distribute such amount due to such beneficiary
         or such executor or administrator among one or more of the Spouse and
         blood relatives of such deceased person, designated by the Committee.

15.7     In the case of any merger, consolidation with or transfer of assets or
         liabilities to any other Plan, each Participant in the Plan shall, (if
         the Plan is terminated) receive a benefit under this Plan immediately
         after the merger, consolidation or transfer, which is

                                       52
<PAGE>

         equal to or greater than the benefit under this Plan he would have been
         entitled to receive immediately before the merger, consolidation or
         transfer if the Plan had been terminated.

                                   SECTION 16

                                   Amendments

16.1     The Company reserves the right at any time, and from time to time, by
         action of the Board of Directors, to modify or amend in whole or in
         part any or all of the provisions of the Plan. This right of the
         Company is subject to the conditions:

         (a)      that no modification or amendment may be made which will
                  adversely affect the existing account balances of any
                  Participant or beneficiary; and

         (b)      that no part of the assets of the Plan shall, by reason of any
                  modification or amendment, be used for or diverted to,
                  purposes other than for the exclusive benefit of Participants
                  and beneficiaries under the Plan.

16.2     If the Company amends this Plan to no longer primarily invest in
         Employer Securities, thus ceasing to be an ESOP, Section 17.2 will
         apply.

16.3     In the event that the vesting schedule of this Plan is amended, any
         Participant who has completed at least three (3) Years of Service may
         elect to have his vested interest determined without regard to such
         amendment by notifying the Plan Administrator in writing during the
         election period as hereinafter defined. The election period shall begin
         on the date such amendment is adopted and shall end no earlier than the
         latest of the following dates:

         (a)      The date which is sixty (60) days after the day the amendment
                  is adopted;

         (b)      The date which is sixty (60) days after the day the amendment
                  becomes effective; or

         (c)      The date which is sixty (60) days after the day the
                  Participant is issued written notice of the amendment by the
                  Employer or Plan Administrator.

                                       53
<PAGE>

         Such election shall be available only to an individual who is a
         Participant at the time such election is made and such election shall
         be irrevocable.

                                   SECTION 17

                          Suspension And Discontinuance

17.1     The Company intends this Plan to be permanent and to qualify under
         Section 401 of the Code, as that Statute may from time to time be
         amended or supplemented. However, the Plan may be discontinued by the
         Board of Directors, but only upon condition that such action is taken
         under the Trust Agreement established under the Plan and as such shall
         render it impossible for any part of the corpus of the Trust or income
         thereon to be at any time used for, or diverted to, purposes other than
         for the exclusive benefit of Participants and Beneficiaries. Upon
         termination, partial termination, or upon complete discontinuance of
         contributions all affected Participants' Accounts shall be considered
         as fully vested and non-forfeitable and all unallocated assets of the
         Trust, including but not limited to Employer contributions and
         unallocated Trust assets and earnings thereon, shall be allocated to
         the accounts of all Participants as of the next Valuation Date (or if
         the Plan is being terminated immediately, then on the date of such Plan
         termination as if it were the next Valuation Date) in accordance with
         the provisions of the Plan hereof; and shall be applied for the benefit
         of each such Participant either by a lump-sum distribution, or by the
         continuance of the Trust and the payments of benefits thereunder in the
         manner provided in the Plan. In the event of distribution, said
         distribution shall be subject to the provisions of section 10.9 of this
         plan, as applicable. After initial qualification by the Internal
         Revenue Service, there will be no reversion of assets to the Employer
         under any circumstances. All Participants shall be treated in a manner
         consistent with the terms of this Plan and provisions of the Code and
         applicable regulations, all as may be amended from time to time.

17.2     If this Plan ceases to be an ESOP, the proceeds of an Acquisition Loan
         will be used within a reasonable time after receipt by the Plan either
         to acquire Qualifying Employer Securities or to repay the loan or a
         prior Acquisition Loan. Even if it ceases as an ESOP, any Qualifying
         Employer Security acquired with the proceeds of an Acquisition Loan
         will be subject to a put option if it is not publicly traded when
         distributed, or if subject to a trading limitation when distributed.
         The put option

                                       54
<PAGE>

         must be exercisable at least during a 15-month period which begins on
         the date the security subject to the put option is distributed by the
         Plan. The price at which the put option will be exercisable will be the
         value of the security as of the date of exercise or as of the most
         recent Valuation Date. If the transaction takes place between the Plan
         and a disqualified person, value will be determined as of the date of
         the transaction.

                                   SECTION 18

                          Inclusion Of Other Companies

18.1     Any company which is or becomes a subsidiary, affiliated or associated
         company of the Company, may, with the approval of the Board of
         Directors of the Company, adopt this Plan with respect to its
         Employees.

18.2     With respect to the Employees of any such subsidiary, affiliated or
         associated companies which may become included in the Plan, the Board
         of Directors shall determine the extent, if any, to which the period of
         prior employment therewith or with any predecessors thereof shall be
         recognized as service for the purposes of this Plan.

                  The foregoing executed as of the 15th day of October, 1993
                  constitutes the Perpetual Bank, a Federal Savings Bank
                  Employee Stock Ownership Plan.

                                         By: /s/ Robert W. Orr
                                             ----------------------------------
                                             Robert W. Orr, President and
                                               Managing Officer
                                             Perpetual Bank, a Federal
                                               Savings Bank

ATTEST:

/s/ Sylvia B. Reed
-------------------------
Sylvia B. Reed, Secretary

[SEAL]

                                       55
<PAGE>

                    EXCERPTS FROM BOARD OF DIRECTORS MEETING

                                October 15, 1993

         "Motion was made, seconded, and unanimously passed that the following
resolution be adopted:

         The Board of Directors of Perpetual Bank, A Federal Savings Bank (the
         "Company"), on October 15, 1993, adopted the Employee Stock Ownership
         Plan ("Plan"), copy of which is available upon request. The Company
         intends this Plan and the Trust to be a qualified stock bonus plan
         under Section 401(a) of the Code and an employee stock ownership plan
         within the meaning of Section 407(d)(6) of ERISA and Section 4975(e)(7)
         of the Code. The Plan is intended to have its assets invested primarily
         in qualifying employer securities of one or more employers within the
         meaning of Section 407(d)(3) of ERISA, and to satisfy any requirement
         under ERISA or the Code applicable to such a plan. Accordingly, the
         Plan and Trust Agreement shall be interpreted and applied in a manner
         consistent with this intent and shall be administered at all times and
         in all respects in a nondiscriminating manner.

         IN WITNESS WHEREOF, the Company has caused this Plan to be adopted and
         has accepted the duties and responsibilities of Plan Administrator
         pursuant to the Employee Retirement of Income Security Act of 1974, as
         amended ("ERISA") this 15th. day of October, 1993.

                                         PERPETUAL BANK, A FEDERAL SAVINGS BANK

                                         BY: /s/Robert W. Orr
                                             ----------------------------------
                                             Robert W. Orr, President and
                                             Managing Officer

                                         ATTEST:

                                         BY: /s/ Sylvia B. Reed
                                             ----------------------------------
                                             Sylvia B. Reed, Secretary

                     *************************************

         I, Sylvia B. Reed, Secretary of Perpetual Bank, A Federal Savings Bank,
do hereby certify the above to be a true and correct copy of excerpts taken from
the minutes of the Board of Directors Meeting held on Friday, October 15, 1993.

March 22, 1994                           /s/Sylvia B. Reed
                                         ----------------------------------
                                         Sylvia B. Reed, Secretary<PAGE>
                                                                    EXHIBIT 10.1

                        [RUSSELL CORPORATION LETTERHEAD]
                                 August 25, 2004

Mr. Robert D. Koney, Jr.
2500 Sheffield Crescent Court
Charlotte, NC  28226
                                                         Personal & Confidential
Dear Bob:

         I am pleased to confirm our offer for you to join Russell Corporation
as Senior Vice President and Chief Financial Officer based in Atlanta, Georgia.
Upon your acceptance, you will be recommended to the Board of Directors for
election as a corporate officer as soon as possible, but not later than our next
board meeting on October 27, 2004. A recommendation of a Change of Control
Employment Agreement will be made subject to formal compensation committee
approval as well. The compensation committee chair was already been informed of
this recommendation and is supportive. You will report to Jack Ward, Chairman &
Chief Executive Officer. As Russell's top financial officer, you will be a key
strategic business partner to me, Jon Letzler and the other top executives of
the Company.

COMPENSATION: Your annual salary will be $325,000, subject to annual merit
increases in conjunction with our performance review process each March. In
addition, you will be eligible for an annual cash bonus of 50% of base salary at
target, with a maximum of 100%. The bonus is based on the achievement of
specified annual Company financial objectives. For the remainder of 2004, we
will guarantee your bonus at $112,500.00 for 2004 paid in 2005.

LONG TERM INCENTIVE GRANT: You will be eligible to participate in Russell's long
term incentive programs in accordance with the terms of such programs, which
include the fiscal 2004-2005 Performance Share Award Program. For the 2004-2005
performance period, you will receive 25,000 restricted shares of which 10,000
are performance-based shares at the target level and 15,000 are time lapse
restricted shares. The time lapse restricted stock will be awarded as follows:
5,000 shares in January 2005, 5000 shares in April 2005 and 5000 shares in early
2006.

BENEFITS: Our benefit package offers you many individual options to meet your
financial and welfare needs, including Russell's SERP, Executive Physical
Program, financial planning assistance (up to 3% of base salary annually) and
membership at a luncheon club. In addition, you will be eligible for four (4)
weeks vacation annually. Ed Flowers, our SVP, Human Resources, is available to
provide you with specific benefit information. Please don't hesitate to call Ed
at 678/742-8102.

<PAGE>

Mr. Robert D. Koney, Jr.
August 25, 2004
Page 2

RELOCATION TO ATLANTA: We will pay moving expenses, including the purchase of
your home in the Charlotte, NC area in accordance with our relocation policy.

         This offer is contingent upon your passing a pre-employment background
check, drug exam, your execution of a confidentiality agreement in accordance
with our Confidentiality Policy and non-compete and non-solicitation of
employees agreements.

         If you have any questions or wish to clarify any elements of this
offer, please call either Ed Flowers at 678/742-8102 or me at 678/742-8900. We
believe Russell provides an excellent opportunity for you and look forward to
hearing from you as soon as possible.

                                          Sincerely,

                                          /s/ Jack Ward
                                          Jack Ward

AGREED:

/s/ Robert D. Koney, Jr.            25 Aug 04
-----------------------------       ---------
Robert D. Koney, Jr.                  Date

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